within the total range of products , our steel pipe tends to fit larger-diameter , higher-pressure pipeline applications , while our precast concrete products mainly serve stormwater and sanitary sewer systems . our current economic environment we operate our business with a long-term time horizon . projects are often planned for many years in advance , and are sometimes part of 50-year build-out plans . long-term demand for water infrastructure projects in the united states appears strong . however , in the near term , we expect that strained governmental and water agency budgets and financing along with increased manufacturing capacity from competition could impact the business . fluctuating steel costs will also be a factor , as the ability to adjust our selling prices as steel costs fluctuate depends on market conditions . purchased steel represents a substantial portion of our cost of sales , and changes in our selling prices often correlate directly to changes in steel costs . impact of the covid-19 p andemic on o ur business while the covid-19 pandemic has not had a material adverse effect on our reported results for the year ended december 31 , 2020 , we are unable to predict the ultimate impact that the covid-19 pandemic may have on our business , future results of operations , financial position , or cash flows . for additional details , refer to the information set forth under the caption “ impact of the covid‑19 pandemic on our business ” in part i — item 1 . “ business ” and discussions in part i — item 1a . “ risk factors ” of this 2020 form 10-k. results of operations the following table sets forth , for the periods indicated , certain financial information regarding costs and expenses expressed in dollars ( in thousands ) and as a percentage of total net sales . replace_table_token_3_th 21 we have one operating segment , water infrastructure , which produces high-quality engineered steel water pipe , precast and reinforced concrete products , permalok® steel casing pipe , bar-wrapped concrete cylinder pipe , as well as linings , coatings , joints , fittings , and specialized components . these products are primarily used in water infrastructure including water transmission , water and wastewater plant piping , structural stormwater and sewer systems , trenchless technology , and pipeline rehabilitation . see note 3 of the notes to consolidated financial statements in part ii — item 8 . “ financial statements and supplementary data ” of this 2020 form 10-k for information on our acquisition of geneva in january 2020. year ended december 31 , 20 20 compared to year ended december 31 , 201 9 net sales . net sales increased 2.4 % to $ 285.9 million in 2020 compared to $ 279.3 million in 2019 as the $ 44.2 million contribution from our acquired geneva operations was nearly entirely offset by the decrease in net sales at our legacy steel pipe facilities . the decrease at our legacy steel pipe facilities was due to a 28 % decrease in tons produced resulting from changes in project timing , partially offset by a 20 % increase in selling price per ton due to a change in product mix . additionally , the pandemic-related shut-down of our slrc facility negatively impacted our sales in the second quarter of 2020. bidding activity , backlog , and production levels may vary significantly from period to period affecting sales volumes . gross profit . gross profit increased 7.1 % to $ 50.5 million ( 17.7 % of net sales ) in 2020 compared to $ 47.2 million ( 16.9 % of net sales ) in 2019. the increase in gross profit was due to the addition of the acquired geneva operations and improved product pricing at our legacy steel pipe facilities , partially offset by lower production volume at our legacy steel pipe facilities and amortization and other acquisition-related accounting adjustments resulting from the purchase accounting of geneva . additionally , as a result of the fire at our saginaw facility in april 2019 , $ 1.4 million of business interruption insurance recovery ( net of incremental production costs ) was recorded in 2020 , compared to $ 1.6 million of incremental production costs ( net of business interruption insurance recovery ) in 2019. selling , general , and administrative expense . selling , general , and administrative expense increased 34.9 % to $ 25.0 million ( 8.8 % of net sales ) in 2020 compared to $ 18.5 million ( 6.6 % of net sales ) in 2019. the increase in selling , general , and administrative expense was primarily due to the addition of geneva , including $ 2.7 million in higher compensation-related expense , $ 2.0 million in higher acquisition-related transaction costs , and $ 0.9 million in higher intangible amortization expense . in addition , we incurred $ 0.8 million in higher administrative expense . other income . in 2020 and 2019 , we recognized gains on insurance proceeds of $ 1.0 million and $ 1.6 million , respectively , for property damage resulting from the fire at our saginaw facility . in august 2019 , we received $ 2.3 million of proceeds related to a favorable legal settlement involving certain pipe produced at our former houston , texas and bossier city , louisiana facilities . income taxes . income tax expense was $ 6.6 million in 2020 ( an effective income tax rate of 25.7 % ) compared to $ 4.7 million in 2019 ( an effective income tax rate of 14.5 % ) . the effective income tax rate for 2020 was primarily impacted by costs associated with the acquisition of geneva that are expected to be non-deductible for tax purposes . the effective income tax rate for 2019 was primarily impacted by the estimated changes in our valuation allowance . story_separator_special_tag in testing goodwill for impairment , we have the option to perform a qualitative assessment to determine whether the existence of events or circumstances indicate that it is more-likely-than-not ( more than 50 % ) that the fair value of a reporting unit is less than its carrying amount . when performing a qualitative assessment , we evaluate factors such as industry and market conditions , cost factors , overall financial performance , and other relevant entity specific events and changes . in the evaluation , we look at the long-term prospects for the reporting unit and recognize that current performance may not be the best indicator of future prospects or value , which requires management judgment . if the qualitative assessment indicates that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount , or if we choose not to perform the qualitative assessment , then a quantitative assessment is performed to determine the reporting unit 's fair value . the fair value calculation uses a combination of income and market approaches . the income approach is based upon projected future after-tax cash flows discounted to present value using factors that consider the timing and risk associated with the future after-tax cash flows . the market approach is based upon historical and or forward-looking measures using multiples of revenue or earnings before interest , tax , depreciation , and amortization . we utilize a weighted average of the income and market approaches . if the reporting unit 's carrying value exceeds its fair value , then an impairment loss is recognized for the amount of the excess of the carrying amount over the reporting unit 's fair value , not to exceed the total amount of goodwill allocated to the reporting unit . inventories inventories are stated at the lower of cost and net realizable value . determining net realizable value of inventories involves judgments and assumptions , including projecting selling prices and cost of sales . to estimate net realizable value , we review recent sales and gross profit history , existing customer orders , current contract prices , industry supply and demand , forecasted steel prices , replacement costs , seasonal factors , general economic trends , and other information , as applicable . if future market conditions are less favorable than those projected by us , inventory write-downs may be required . the cost of raw material inventories of steel is either on a specific identification basis or on an average cost basis . the cost of all other raw material inventories , as well as work-in-process and supplies , is on an average cost basis . the cost of finished goods uses the first-in , first-out method of accounting . property and equipment property and equipment are recorded at cost , and are depreciated using either the units of production method or the straight-line method depending on the classification of the asset . depreciation expense calculated under the units of production method may be less than , equal to , or greater than depreciation expense calculated under the straight-line method . we evaluate historical and projected units of production at each plant to reassess the units of production expected on an annual basis . we assess impairment of property and equipment whenever changes in circumstances indicate that the carrying values of the asset or asset group ( s ) may not be recoverable . the recoverable value of a long-lived asset group is determined by estimating future undiscounted cash flows using assumptions about our expected future operating performance . estimates of future cash flows used in the recoverability test incorporate our own assumptions about the use of the asset group and shall consider all available evidence . our estimates of undiscounted cash flows may differ from actual cash flow due to , among other things , technological changes , economic conditions , or changes to our business operations . if we determine the carrying value of the property and equipment will not be recoverable , we calculate and record an impairment loss . 26 share-based compensation we recognize the compensation cost of employee and director services received in exchange for awards of equity instruments based on the grant date estimated fair value of the awards . we estimate the fair value of restricted stock units and performance share awards using the value of our stock on the date of grant . share-based compensation cost is recognized over the period during which the employee or director is required to provide service in exchange for the award and , as forfeitures occur , the associated compensation cost recognized to date is reversed . for awards with performance-based payout conditions , we recognize compensation cost based on the probability of achieving the performance conditions , with changes in expectations recognized as an adjustment to earnings in the period of change . any recognized compensation cost is reversed if the conditions are ultimately not met . income taxes income taxes are recorded using an asset and liability approach that requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements or income tax returns . valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized . the determination of our provision for income taxes requires significant judgment , the use of estimates , and the interpretation and application of complex tax laws . our provision for income taxes primarily reflects a combination of income earned and taxed in the various united states federal , state , local , and to a lesser extent , foreign jurisdictions . jurisdictional tax law changes , increases or decreases in permanent differences between book and tax items , accruals or adjustments of accruals for unrecognized income tax benefits or valuation allowances , and our change in the mix of earnings from

net cash provided by operating activities net cash provided by operating activities was $ 56.1 million in 2020 compared to $ 42.9 million in 2019. net income , adjusted for non-cash items , generated $ 40.3 million of operating cash flow in 2020 compared to $ 45.7 million in 2019. the net change in working capital resulted in an increase to net cash provided by operations of $ 15.7 million in 2020 compared to a decrease of $ 2.8 million in 2019. net cash used in investing activities net cash used in investing activities was $ 61.4 million in 2020 compared to $ 6.4 million in 2019. net cash used in investing activities in 2020 includes the acquisition of geneva of $ 48.7 million , net of cash acquired . capital expenditures were $ 14.0 million in 2020 compared to $ 8.6 million in 2019. the 2019 capital expenditures associated with the rebuilding of assets lost in the april 2019 fire at our saginaw , texas facility were recovered through insurance proceeds of $ 1.4 million in 2020 and $ 2.1 million in 2019. we currently expect capital expenditures in 2021 to be approximately $ 12 million to $ 15 million primarily for standard capital replacement . net cash provided by ( used in ) financing activities net cash provided by ( used in ) financing activities was $ 12.3 million in 2020 compared to $ ( 12.1 ) million in 2019. net borrowings on long-term debt were $ 13.8 million in 2020. there were no net borrowings ( repayments ) on the line of credit in 2020 compared to $ ( 11.5 ) million in 2019. we anticipate that our existing cash and cash equivalents , cash flows expected to be generated by operations , and amounts available under the amended credit agreement will be adequate to fund our working capital , debt service , and capital expenditure requirements for at least the next twelve months . to the extent necessary , we may also satisfy capital requirements through additional bank borrowings , senior notes , term notes , subordinated debt , and finance and operating leases , if such resources are available on satisfactory terms .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```net cash provided by operating activities net cash provided by operating activities was $ 56.1 million in 2020 compared to $ 42.9 million in 2019. net income , adjusted for non-cash items , generated $ 40.3 million of operating cash flow in 2020 compared to $ 45.7 million in 2019. the net change in working capital resulted in an increase to net cash provided by operations of $ 15.7 million in 2020 compared to a decrease of $ 2.8 million in 2019. net cash used in investing activities net cash used in investing activities was $ 61.4 million in 2020 compared to $ 6.4 million in 2019. net cash used in investing activities in 2020 includes the acquisition of geneva of $ 48.7 million , net of cash acquired . capital expenditures were $ 14.0 million in 2020 compared to $ 8.6 million in 2019. the 2019 capital expenditures associated with the rebuilding of assets lost in the april 2019 fire at our saginaw , texas facility were recovered through insurance proceeds of $ 1.4 million in 2020 and $ 2.1 million in 2019. we currently expect capital expenditures in 2021 to be approximately $ 12 million to $ 15 million primarily for standard capital replacement . net cash provided by ( used in ) financing activities net cash provided by ( used in ) financing activities was $ 12.3 million in 2020 compared to $ ( 12.1 ) million in 2019. net borrowings on long-term debt were $ 13.8 million in 2020. there were no net borrowings ( repayments ) on the line of credit in 2020 compared to $ ( 11.5 ) million in 2019. we anticipate that our existing cash and cash equivalents , cash flows expected to be generated by operations , and amounts available under the amended credit agreement will be adequate to fund our working capital , debt service , and capital expenditure requirements for at least the next twelve months . to the extent necessary , we may also satisfy capital requirements through additional bank borrowings , senior notes , term notes , subordinated debt , and finance and operating leases , if such resources are available on satisfactory terms .
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 Suspicious Activity Report : within the total range of products , our steel pipe tends to fit larger-diameter , higher-pressure pipeline applications , while our precast concrete products mainly serve stormwater and sanitary sewer systems . our current economic environment we operate our business with a long-term time horizon . projects are often planned for many years in advance , and are sometimes part of 50-year build-out plans . long-term demand for water infrastructure projects in the united states appears strong . however , in the near term , we expect that strained governmental and water agency budgets and financing along with increased manufacturing capacity from competition could impact the business . fluctuating steel costs will also be a factor , as the ability to adjust our selling prices as steel costs fluctuate depends on market conditions . purchased steel represents a substantial portion of our cost of sales , and changes in our selling prices often correlate directly to changes in steel costs . impact of the covid-19 p andemic on o ur business while the covid-19 pandemic has not had a material adverse effect on our reported results for the year ended december 31 , 2020 , we are unable to predict the ultimate impact that the covid-19 pandemic may have on our business , future results of operations , financial position , or cash flows . for additional details , refer to the information set forth under the caption “ impact of the covid‑19 pandemic on our business ” in part i — item 1 . “ business ” and discussions in part i — item 1a . “ risk factors ” of this 2020 form 10-k. results of operations the following table sets forth , for the periods indicated , certain financial information regarding costs and expenses expressed in dollars ( in thousands ) and as a percentage of total net sales . replace_table_token_3_th 21 we have one operating segment , water infrastructure , which produces high-quality engineered steel water pipe , precast and reinforced concrete products , permalok® steel casing pipe , bar-wrapped concrete cylinder pipe , as well as linings , coatings , joints , fittings , and specialized components . these products are primarily used in water infrastructure including water transmission , water and wastewater plant piping , structural stormwater and sewer systems , trenchless technology , and pipeline rehabilitation . see note 3 of the notes to consolidated financial statements in part ii — item 8 . “ financial statements and supplementary data ” of this 2020 form 10-k for information on our acquisition of geneva in january 2020. year ended december 31 , 20 20 compared to year ended december 31 , 201 9 net sales . net sales increased 2.4 % to $ 285.9 million in 2020 compared to $ 279.3 million in 2019 as the $ 44.2 million contribution from our acquired geneva operations was nearly entirely offset by the decrease in net sales at our legacy steel pipe facilities . the decrease at our legacy steel pipe facilities was due to a 28 % decrease in tons produced resulting from changes in project timing , partially offset by a 20 % increase in selling price per ton due to a change in product mix . additionally , the pandemic-related shut-down of our slrc facility negatively impacted our sales in the second quarter of 2020. bidding activity , backlog , and production levels may vary significantly from period to period affecting sales volumes . gross profit . gross profit increased 7.1 % to $ 50.5 million ( 17.7 % of net sales ) in 2020 compared to $ 47.2 million ( 16.9 % of net sales ) in 2019. the increase in gross profit was due to the addition of the acquired geneva operations and improved product pricing at our legacy steel pipe facilities , partially offset by lower production volume at our legacy steel pipe facilities and amortization and other acquisition-related accounting adjustments resulting from the purchase accounting of geneva . additionally , as a result of the fire at our saginaw facility in april 2019 , $ 1.4 million of business interruption insurance recovery ( net of incremental production costs ) was recorded in 2020 , compared to $ 1.6 million of incremental production costs ( net of business interruption insurance recovery ) in 2019. selling , general , and administrative expense . selling , general , and administrative expense increased 34.9 % to $ 25.0 million ( 8.8 % of net sales ) in 2020 compared to $ 18.5 million ( 6.6 % of net sales ) in 2019. the increase in selling , general , and administrative expense was primarily due to the addition of geneva , including $ 2.7 million in higher compensation-related expense , $ 2.0 million in higher acquisition-related transaction costs , and $ 0.9 million in higher intangible amortization expense . in addition , we incurred $ 0.8 million in higher administrative expense . other income . in 2020 and 2019 , we recognized gains on insurance proceeds of $ 1.0 million and $ 1.6 million , respectively , for property damage resulting from the fire at our saginaw facility . in august 2019 , we received $ 2.3 million of proceeds related to a favorable legal settlement involving certain pipe produced at our former houston , texas and bossier city , louisiana facilities . income taxes . income tax expense was $ 6.6 million in 2020 ( an effective income tax rate of 25.7 % ) compared to $ 4.7 million in 2019 ( an effective income tax rate of 14.5 % ) . the effective income tax rate for 2020 was primarily impacted by costs associated with the acquisition of geneva that are expected to be non-deductible for tax purposes . the effective income tax rate for 2019 was primarily impacted by the estimated changes in our valuation allowance . story_separator_special_tag in testing goodwill for impairment , we have the option to perform a qualitative assessment to determine whether the existence of events or circumstances indicate that it is more-likely-than-not ( more than 50 % ) that the fair value of a reporting unit is less than its carrying amount . when performing a qualitative assessment , we evaluate factors such as industry and market conditions , cost factors , overall financial performance , and other relevant entity specific events and changes . in the evaluation , we look at the long-term prospects for the reporting unit and recognize that current performance may not be the best indicator of future prospects or value , which requires management judgment . if the qualitative assessment indicates that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount , or if we choose not to perform the qualitative assessment , then a quantitative assessment is performed to determine the reporting unit 's fair value . the fair value calculation uses a combination of income and market approaches . the income approach is based upon projected future after-tax cash flows discounted to present value using factors that consider the timing and risk associated with the future after-tax cash flows . the market approach is based upon historical and or forward-looking measures using multiples of revenue or earnings before interest , tax , depreciation , and amortization . we utilize a weighted average of the income and market approaches . if the reporting unit 's carrying value exceeds its fair value , then an impairment loss is recognized for the amount of the excess of the carrying amount over the reporting unit 's fair value , not to exceed the total amount of goodwill allocated to the reporting unit . inventories inventories are stated at the lower of cost and net realizable value . determining net realizable value of inventories involves judgments and assumptions , including projecting selling prices and cost of sales . to estimate net realizable value , we review recent sales and gross profit history , existing customer orders , current contract prices , industry supply and demand , forecasted steel prices , replacement costs , seasonal factors , general economic trends , and other information , as applicable . if future market conditions are less favorable than those projected by us , inventory write-downs may be required . the cost of raw material inventories of steel is either on a specific identification basis or on an average cost basis . the cost of all other raw material inventories , as well as work-in-process and supplies , is on an average cost basis . the cost of finished goods uses the first-in , first-out method of accounting . property and equipment property and equipment are recorded at cost , and are depreciated using either the units of production method or the straight-line method depending on the classification of the asset . depreciation expense calculated under the units of production method may be less than , equal to , or greater than depreciation expense calculated under the straight-line method . we evaluate historical and projected units of production at each plant to reassess the units of production expected on an annual basis . we assess impairment of property and equipment whenever changes in circumstances indicate that the carrying values of the asset or asset group ( s ) may not be recoverable . the recoverable value of a long-lived asset group is determined by estimating future undiscounted cash flows using assumptions about our expected future operating performance . estimates of future cash flows used in the recoverability test incorporate our own assumptions about the use of the asset group and shall consider all available evidence . our estimates of undiscounted cash flows may differ from actual cash flow due to , among other things , technological changes , economic conditions , or changes to our business operations . if we determine the carrying value of the property and equipment will not be recoverable , we calculate and record an impairment loss . 26 share-based compensation we recognize the compensation cost of employee and director services received in exchange for awards of equity instruments based on the grant date estimated fair value of the awards . we estimate the fair value of restricted stock units and performance share awards using the value of our stock on the date of grant . share-based compensation cost is recognized over the period during which the employee or director is required to provide service in exchange for the award and , as forfeitures occur , the associated compensation cost recognized to date is reversed . for awards with performance-based payout conditions , we recognize compensation cost based on the probability of achieving the performance conditions , with changes in expectations recognized as an adjustment to earnings in the period of change . any recognized compensation cost is reversed if the conditions are ultimately not met . income taxes income taxes are recorded using an asset and liability approach that requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements or income tax returns . valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized . the determination of our provision for income taxes requires significant judgment , the use of estimates , and the interpretation and application of complex tax laws . our provision for income taxes primarily reflects a combination of income earned and taxed in the various united states federal , state , local , and to a lesser extent , foreign jurisdictions . jurisdictional tax law changes , increases or decreases in permanent differences between book and tax items , accruals or adjustments of accruals for unrecognized income tax benefits or valuation allowances , and our change in the mix of earnings from

