Olympic Steel Reports Third-Quarter 2024 Results
Olympic Steel (ZEUS) reported third-quarter 2024 financial results with net income of $2.7 million, or $0.23 per diluted share, down from $12.2 million, or $1.06 per diluted share, in Q3 2023. Sales decreased to $470 million from $526 million year-over-year, primarily due to declining metal pricing. EBITDA was $15.0 million compared to $27.1 million in Q3 2023. The company reduced debt by $12 million to $197 million and maintained $304 million in credit availability. Despite industry-wide pricing pressure and lower OEM demand, all three business segments remained EBITDA-positive. The Board approved a regular quarterly dividend of $0.15 per share.
Olympic Steel (ZEUS) ha riportato i risultati finanziari del terzo trimestre del 2024 con un utile netto di 2,7 milioni di dollari, pari a 0,23 dollari per azione diluita, in calo rispetto ai 12,2 milioni di dollari, o 1,06 dollari per azione diluita, nel terzo trimestre del 2023. Le vendite sono diminuite a 470 milioni di dollari rispetto ai 526 milioni dell'anno precedente, principalmente a causa del calo dei prezzi dei metalli. L'EBITDA è stato di 15,0 milioni di dollari rispetto ai 27,1 milioni nel terzo trimestre del 2023. L'azienda ha ridotto il debito di 12 milioni di dollari, portandolo a 197 milioni, e ha mantenuto una disponibilità di credito di 304 milioni di dollari. Nonostante la pressione sui prezzi a livello di settore e una domanda OEM inferiore, tutti e tre i segmenti aziendali sono rimasti positivi in termini di EBITDA. Il Consiglio ha approvato un dividendo trimestrale regolare di 0,15 dollari per azione.
Olympic Steel (ZEUS) reportó los resultados financieros del tercer trimestre de 2024, con un ingreso neto de 2,7 millones de dólares, o 0,23 dólares por acción diluida, una disminución de los 12,2 millones de dólares, o 1,06 dólares por acción diluida, en el tercer trimestre de 2023. Las ventas cayeron a 470 millones de dólares desde 526 millones en comparación con el año anterior, principalmente debido a la disminución de los precios de los metales. El EBITDA fue de 15,0 millones de dólares en comparación con los 27,1 millones del tercer trimestre de 2023. La compañía redujo su deuda en 12 millones de dólares a 197 millones y mantuvo una disponibilidad de crédito de 304 millones. A pesar de la presión sobre los precios en toda la industria y la menor demanda de OEM, los tres segmentos de negocio siguieron siendo positivos en términos de EBITDA. La Junta aprobó un dividendo trimestral regular de 0,15 dólares por acción.
올림픽 스틸 (ZEUS)는 2024년 3분기 재무 결과를 발표했으며, 순이익은 270만 달러, 즉 희석주당 0.23달러로, 2023년 3분기의 1,220만 달러, 즉 희석주당 1.06달러에서 감소했습니다. 매출은 4억 7천만 달러로 감소했으며, 이는 지난해 5억 2천6백만 달러에 비해 줄어든 수치로, 주로 금속 가격 하락에 기인합니다. EBITDA는 1,500만 달러로, 2023년 3분기의 2,710만 달러와 비교됩니다. 회사는 1,200만 달러의 부채를 줄여 1억 9,700만 달러로 만들었고, 3억 4백만 달러의 신용 가능성을 유지했습니다. 산업 전반의 가격 압박과 감소된 OEM 수요에도 불구하고, 세 개의 비즈니스 세그먼트 모두 EBITDA가 긍정적이었습니다. 이사회는 주당 0.15달러의 정기 분기 배당금을 승인했습니다.
Olympic Steel (ZEUS) a annoncé ses résultats financiers pour le troisième trimestre 2024, avec un revenu net de 2,7 millions de dollars, soit 0,23 dollar par action diluée, en baisse par rapport à 12,2 millions de dollars, soit 1,06 dollar par action diluée, au troisième trimestre 2023. Les ventes ont diminué à 470 millions de dollars contre 526 millions l'année précédente, principalement en raison de la baisse des prix des métaux. L'EBITDA s'élevait à 15,0 millions de dollars contre 27,1 millions de dollars au troisième trimestre 2023. La société a réduit sa dette de 12 millions de dollars pour atteindre 197 millions de dollars et a maintenu une disponibilité de crédit de 304 millions de dollars. Malgré la pression sur les prix dans l'industrie et une demande d'OEM plus faible, les trois segments d'activité sont restés positifs en EBITDA. Le Conseil a approuvé un dividende trimestriel régulier de 0,15 dollar par action.
Olympic Steel (ZEUS) berichtete über die Finanzergebnisse des dritten Quartals 2024 mit einem Nettoeinkommen von 2,7 Millionen Dollar, oder 0,23 Dollar pro verwässerter Aktie, ein Rückgang von 12,2 Millionen Dollar, oder 1,06 Dollar pro verwässerter Aktie, im dritten Quartal 2023. Der Umsatz fiel auf 470 Millionen Dollar von 526 Millionen im Jahr zuvor, hauptsächlich aufgrund fallender Metallpreise. Das EBITDA betrug 15,0 Millionen Dollar im Vergleich zu 27,1 Millionen Dollar im dritten Quartal 2023. Das Unternehmen reduzierte die Schulden um 12 Millionen Dollar auf 197 Millionen Dollar und hielt 304 Millionen Dollar an verfügbarem Kredit. Trotz des Preisdrucks in der Branche und geringerer OEM-Nachfrage blieben alle drei Geschäftssegmente EBITDA-positiv. Der Vorstand genehmigte eine reguläre vierteljährliche Dividende von 0,15 Dollar pro Aktie.
- All three business segments maintained EBITDA-positive results
- Debt reduction of $12 million to $197 million
- Strong credit availability of $304 million
- Maintained quarterly dividend of $0.15 per share
- Net income declined 77.8% YoY to $2.7 million
- Sales decreased 10.6% YoY to $470 million
- EBITDA dropped 44.6% YoY to $15.0 million
- Lower OEM contractual demand affecting margins
Insights
Company’s diversification strategy continues to drive results in difficult market conditions
Company has the strategic focus and financial flexibility to further invest in organic and acquisitive growth opportunities
Net income for the third quarter totaled
The Company reported sales totaling
“Olympic Steel’s strategies for diversification enabled all three business segments to deliver EBITDA-positive results despite industry-wide pricing pressure,” said Richard T. Marabito, Chief Executive Officer. “Macroeconomic trends during the third quarter resulted in lower overall OEM contractual demand, pressuring margins across all segments. Despite these headwinds, we have remained profitable through our diversification into counter-cyclical steel-intensive end products, focusing on higher-margin opportunities such as flat-rolled coated products, and expansion of our fabrication capabilities.”
Marabito continued, “During the third quarter, we reduced our debt by approximately
Marabito concluded, “Overall, we believe the success of our acquisitions and our capital investments in key organic growth areas, has created a stronger and more resilient Olympic Steel. As we showed in the third quarter, we can deliver profitable results even in challenging times. We also have the strategic focus and financial flexibility to further invest in organic and acquisitive growth opportunities in steel-intensive end products, fabricating and automation to enhance our throughput, quality, safety and profitability. Despite near-term market challenges, we remain optimistic for the long-term outlook for Olympic Steel and our industry.”
The Board of Directors approved a regular quarterly cash dividend of
The table that follows provides a reconciliation of non-GAAP measures to the most directly comparable measures prepared in accordance with GAAP.
Olympic Steel, Inc. Reconciliation of Net Income Per Diluted Share to Adjusted Net Income Per Diluted Share (Figures may not foot due to rounding.) The following table reconciles adjusted net income per diluted share to the most directly comparable GAAP financial measure: |
||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
||
Net income per diluted share (GAAP) | $ |
0.23 |
|
$ |
1.06 |
|
$ |
1.64 |
|
$ |
3.21 |
|
||||
Excluding the following items | ||||||||||||||||
LIFO income |
|
(0.12 |
) |
|
(0.13 |
) |
|
(0.16 |
) |
|
(0.19 |
) |
||||
Acquisition Inventory fair market value adjustment |
|
- |
|
|
- |
|
|
- |
|
|
0.13 |
|
||||
Acquisition related expenses |
|
- |
|
|
- |
|
|
- |
|
|
0.16 |
|
||||
Employee retention credit |
|
- |
|
|
(0.25 |
) |
|
- |
|
|
(0.25 |
) |
||||
Adjusted net income per diluted share (non-GAAP) | $ |
0.11 |
|
$ |
0.68 |
|
$ |
1.48 |
|
$ |
3.06 |
|
||||
Reconciliation of Net Income to Adjusted EBITDA (in thousands) The following table reconciles Adjusted EBITDA to the most directly comparable GAAP financial measure:
|
||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
||
Net income (GAAP): | $ |
2,734 |
|
$ |
12,230 |
|
$ |
19,091 |
|
$ |
37,121 |
|
||||
Excluding the following items | ||||||||||||||||
Other loss, net |
|
26 |
|
|
28 |
|
|
66 |
|
|
67 |
|
||||
Interest and other expense on debt |
|
3,880 |
|
|
3,953 |
|
|
12,283 |
|
|
12,379 |
|
||||
Income tax provision |
|
1,169 |
|
|
4,674 |
|
|
7,417 |
|
|
14,813 |
|
||||
Depreciation and amortization |
|
7,234 |
|
|
6,185 |
|
|
21,795 |
|
|
18,859 |
|
||||
Earnings before interest, taxes, depreciation and | ||||||||||||||||
amortization (EBITDA) |
|
15,043 |
|
|
27,070 |
|
|
60,652 |
|
|
83,239 |
|
||||
LIFO income |
|
(2,000 |
) |
|
(2,000 |
) |
|
(2,600 |
) |
|
(3,000 |
) |
||||
Acquisition Inventory fair market value adjustment |
|
- |
|
|
- |
|
|
- |
|
|
2,079 |
|
||||
Acquisition related expenses |
|
- |
|
|
- |
|
|
- |
|
|
2,556 |
|
||||
Employee retention credit |
|
- |
|
|
(4,000 |
) |
|
- |
|
|
(4,000 |
) |
||||
Adjusted EBITDA (non-GAAP) | $ |
13,043 |
|
$ |
21,070 |
|
$ |
58,052 |
|
$ |
80,874 |
|
Conference Call and Webcast
A simulcast of Olympic Steel’s 2024 third-quarter earnings conference call can be accessed via the Investor Relations section of the Company’s website at www.olysteel.com. The live simulcast will begin at 10 a.m. ET on November 1, 2024, and a replay will be available for approximately 14 days thereafter.
Forward-Looking Statements
It is the Company's policy not to endorse any analyst's sales or earnings estimates. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "may," "will," "anticipate," "should," "intend," "expect," "believe," "estimate," "project," "plan," "potential," and "continue," as well as the negative of these terms or similar expressions. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by such statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Such risks and uncertainties include, but are not limited to: risks of falling metals prices and inventory devaluation; general and global business, economic, financial and political conditions, including, but not limited to, recessionary conditions, legislation passed under the current administration and the 2024 U.S. presidential election; reduced production schedules, layoffs or work stoppages by our own, our suppliers’ or customers’ personnel; supply disruptions and inflationary pressures, including the availability and rising costs of transportation, energy, logistical services and labor; reduced availability and productivity of our employees, increased operational risks as a result of remote work arrangements, including the potential effects on internal controls, as well as cybersecurity risks and increased vulnerability to security breaches, information technology disruptions and other similar events; supplier consolidation or addition of new capacity; risks associated with the war in
In addition to financial information prepared in accordance with GAAP, this document also contains adjusted earnings per diluted share and adjusted EBITDA, which are non-GAAP financial measures. Management's view of the Company's performance includes adjusted earnings per share and adjusted EBITDA, and management uses these non-GAAP financial measures internally for planning and forecasting purposes and to measure the performance of the Company. We believe these non-GAAP financial measures provide useful and meaningful information to us and investors because they enhance investors' understanding of the continuing operating performance of our business and facilitate the comparison of performance between past and future periods. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Additionally, the presentation of these measures may be different from non-GAAP financial measures used by other companies. A reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures is provided above.
About Olympic Steel
Founded in 1954, Olympic Steel is a leading
For additional information, please visit the Company’s website at www.olysteel.com.
Olympic Steel, Inc. Consolidated Statements of Net Income (in thousands, except per-share data) |
||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
Net sales | $ |
469,996 |
$ |
526,411 |
$ |
1,522,888 |
$ |
1,668,755 |
||||
Costs and expenses | ||||||||||||
Cost of materials sold (excludes items shown separately below) |
|
363,144 |
|
414,480 |
|
1,177,229 |
|
1,308,988 |
||||
Warehouse and processing |
|
31,719 |
|
28,954 |
|
97,855 |
|
91,125 |
||||
Administrative and general |
|
28,226 |
|
26,181 |
|
87,545 |
|
91,047 |
||||
Distribution |
|
16,881 |
|
16,342 |
|
51,101 |
|
51,531 |
||||
Selling |
|
10,721 |
|
9,587 |
|
35,458 |
|
30,373 |
||||
Occupancy |
|
4,262 |
|
3,797 |
|
13,048 |
|
12,452 |
||||
Depreciation |
|
5,740 |
|
5,008 |
|
17,585 |
|
15,330 |
||||
Amortization |
|
1,494 |
|
1,177 |
|
4,210 |
|
3,529 |
||||
Total costs and expenses |
|
462,187 |
|
505,526 |
|
1,484,031 |
|
1,604,375 |
||||
Operating income |
|
7,809 |
|
20,885 |
|
38,857 |
|
64,380 |
||||
Other loss, net |
|
26 |
|
28 |
|
66 |
|
67 |
||||
Income before interest and income taxes |
|
7,783 |
|
20,857 |
|
38,791 |
|
64,313 |
||||
Interest and other expense on debt |
|
3,880 |
|
3,953 |
|
12,283 |
|
12,379 |
||||
Income before income taxes |
|
3,903 |
|
16,904 |
|
26,508 |
|
51,934 |
||||
Income tax provision |
|
1,169 |
|
4,674 |
|
7,417 |
|
14,813 |
||||
Net income | $ |
2,734 |
$ |
12,230 |
$ |
19,091 |
$ |
37,121 |
||||
Earnings per share: | ||||||||||||
Net income per share - basic | $ |
0.23 |
$ |
1.06 |
$ |
1.64 |
$ |
3.21 |
||||
Weighted average shares outstanding - basic |
|
11,695 |
|
11,586 |
|
11,673 |
|
11,568 |
||||
Net income per share - diluted | $ |
0.23 |
$ |
1.06 |
$ |
1.64 |
$ |
3.21 |
||||
Weighted average shares outstanding - diluted |
|
11,695 |
|
11,592 |
|
11,673 |
|
11,571 |
Olympic Steel, Inc. Balance Sheets (in thousands) |
||||||||
As of September 30, 2024 |
As of December 31, 2023 |
|||||||
Assets | ||||||||
Cash and cash equivalents | $ |
11,116 |
|
$ |
13,224 |
|
||
Accounts receivable, net |
|
197,592 |
|
|
191,149 |
|
||
Inventories, net (includes LIFO reserves of |
|
399,394 |
|
|
386,535 |
|
||
Prepaid expenses and other |
|
14,306 |
|
|
12,261 |
|
||
Total current assets |
|
622,408 |
|
|
603,169 |
|
||
Property and equipment, at cost |
|
506,631 |
|
|
483,448 |
|
||
Accumulated depreciation |
|
(313,775 |
) |
|
(297,340 |
) |
||
Net property and equipment |
|
192,856 |
|
|
186,108 |
|
||
Goodwill |
|
52,091 |
|
|
52,091 |
|
||
Intangible assets, net |
|
89,342 |
|
|
92,621 |
|
||
Other long-term assets |
|
19,642 |
|
|
16,466 |
|
||
Right of use asset, net |
|
35,672 |
|
|
34,380 |
|
||
Total assets | $ |
1,012,011 |
|
$ |
984,835 |
|
||
Liabilities | ||||||||
Accounts payable | $ |
125,342 |
|
$ |
119,718 |
|
||
Accrued payroll |
|
23,366 |
|
|
30,113 |
|
||
Other accrued liabilities |
|
22,569 |
|
|
22,593 |
|
||
Current portion of lease liabilities |
|
5,671 |
|
|
7,813 |
|
||
Total current liabilities |
|
176,948 |
|
|
180,237 |
|
||
Credit facility revolver |
|
197,276 |
|
|
190,198 |
|
||
Other long-term liabilities |
|
24,810 |
|
|
20,151 |
|
||
Deferred income taxes |
|
11,571 |
|
|
11,510 |
|
||
Lease liabilities |
|
30,796 |
|
|
27,261 |
|
||
Total liabilities |
|
441,401 |
|
|
429,357 |
|
||
Shareholders' Equity | ||||||||
Preferred stock |
|
- |
|
|
- |
|
||
Common stock |
|
138,040 |
|
|
136,541 |
|
||
Accumulated other comprehensive income (loss) |
|
(408 |
) |
|
41 |
|
||
Retained earnings |
|
432,978 |
|
|
418,896 |
|
||
Total shareholders' equity |
|
570,610 |
|
|
555,478 |
|
||
Total liabilities and shareholders' equity | $ |
1,012,011 |
|
$ |
984,835 |
|
Olympic Steel, Inc. Segment Financial Information (In thousands, except tonnage and per-ton data. Figures may not foot to consolidated totals due to Corporate expenses.) |
||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||
Carbon Flat Products | Specialty Metals Flat Products | Tubular and Pipe Products | ||||||||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
||||||
Tons sold 1 |
|
204,211 |
|
207,145 |
|
29,738 |
|
27,936 |
|
N/A |
|
|
N/A |
|
||||||
Net sales | $ |
264,849 |
$ |
304,478 |
$ |
125,693 |
$ |
132,763 |
$ |
79,454 |
|
$ |
89,170 |
|
||||||
Average selling price per ton |
|
1,297 |
|
1,470 |
|
4,227 |
|
4,752 |
|
N/A |
|
|
N/A |
|
||||||
Cost of materials sold |
|
208,093 |
|
242,532 |
|
103,450 |
|
111,622 |
|
51,601 |
|
|
60,326 |
|
||||||
Gross profit |
|
56,756 |
|
61,946 |
|
22,243 |
|
21,141 |
|
27,853 |
|
|
28,844 |
|
||||||
Operating expenses |
|
56,322 |
|
51,997 |
|
17,307 |
|
16,473 |
|
21,377 |
|
|
18,811 |
|
||||||
Operating income |
|
434 |
|
9,949 |
|
4,936 |
|
4,668 |
|
6,476 |
|
|
10,033 |
|
||||||
Depreciation and amortization |
|
4,028 |
|
3,568 |
|
1,005 |
|
871 |
|
2,184 |
|
|
1,729 |
|
||||||
LIFO income |
|
- |
|
- |
|
- |
|
- |
|
(2,000 |
) |
|
(2,000 |
) |
||||||
Nine Months Ended September 30, | ||||||||||||||||||||
Carbon Flat Products | Specialty Metals Flat Products | Tubular and Pipe Products | ||||||||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
||||||
Tons sold 1 |
|
652,976 |
|
651,758 |
|
91,336 |
|
89,163 |
|
N/A |
|
|
N/A |
|
||||||
Net sales | $ |
873,579 |
$ |
940,925 |
$ |
386,100 |
$ |
446,327 |
$ |
263,209 |
|
$ |
281,503 |
|
||||||
Average selling price per ton |
|
1,338 |
|
1,444 |
|
4,227 |
|
5,006 |
|
N/A |
|
|
N/A |
|
||||||
Cost of materials sold |
|
687,704 |
|
744,040 |
|
315,984 |
|
371,935 |
|
173,541 |
|
|
193,013 |
|
||||||
Gross profit |
|
185,875 |
|
196,885 |
|
70,116 |
|
74,392 |
|
89,668 |
|
|
88,490 |
|
||||||
Operating expenses |
|
171,423 |
|
166,295 |
|
53,400 |
|
53,786 |
|
69,068 |
|
|
59,345 |
|
||||||
Operating income |
|
14,452 |
|
30,590 |
|
16,716 |
|
20,606 |
|
20,600 |
|
|
29,145 |
|
||||||
Depreciation and amortization |
|
12,221 |
|
10,891 |
|
2,922 |
|
2,878 |
|
6,600 |
|
|
5,038 |
|
||||||
LIFO income |
|
- |
|
- |
|
- |
|
- |
|
(2,600 |
) |
|
(3,000 |
) |
||||||
1 The Company does not report tons sold for McCullough Industries, EZ Dumper, or Metal-Fab in the Carbon Flat Products Segment, Shaw Stainless in the Specialty Metals Flat Products Segment or for the entire Tubular and Pipe Products Segment. | ||||||||||||||||||||
As of September 30, 2024 |
As of December 31, 2023 |
|||||||||||||||||||
Assets | ||||||||||||||||||||
Flat-products | $ |
666,508 |
$ |
649,744 |
||||||||||||||||
Tubular and pipe products |
|
344,289 |
|
333,677 |
||||||||||||||||
Corporate |
|
1,214 |
|
1,414 |
||||||||||||||||
Total assets | $ |
1,012,011 |
$ |
984,835 |
Other Information (in thousands, except per-share and ratio data) |
||||||
|
As of
|
As of
|
||||
Shareholders' equity per share | $ |
51.26 |
$ |
49.90 |
||
Debt to equity ratio | 0.35 to 1 | 0.34 to 1 | ||||
Nine Months Ended September 30, | ||||||
2024 |
2023 |
|||||
Net cash from operating activities | $ |
19,114 |
$ |
120,999 |
||
Cash dividends per share | $ |
0.45 |
$ |
0.38 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030257177/en/
Richard A. Manson
Chief Financial Officer
(216) 672-0522
ir@olysteel.com
Source: Olympic Steel, Inc.
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