ZEUS Olympic Steel Inc

All three segments deliver EBITDA-positive results every quarter of 2024 despite challenging market conditions

Fourth quarter 2024 Adjusted EBITDA was sequentially higher than third quarter 2024

Company continues to execute on diversification strategy, completing eighth acquisition in the past seven years

Shareholders rewarded with a quarterly dividend increase of 7% from $0.15 to $0.16 per share

Olympic Steel, Inc. (Nasdaq: ZEUS), a leading national metals service center, today announced results for the three and 12 months ended December 31, 2024.

Fourth-Quarter Results

Net income for the fourth quarter totaled $3.9 million, or $0.33 per diluted share, compared with net income of $7.4 million, or $0.64 per diluted share, in the fourth quarter of 2023. The results include $3.1 million of LIFO pre-tax income in the fourth quarter of 2024, compared with $5.3 million of LIFO pre-tax income in the fourth quarter of 2023. Adjusted EBITDA for the fourth quarter of 2024 was $14.5 million, sequentially higher from the third quarter of 2024, compared with $16.7 million in the fourth quarter of 2023. Sales for the fourth quarter of 2024 totaled $419 million, compared with $489 million in the fourth quarter of 2023.

Full-Year Results

Net income for 2024 totaled $23.0 million, or $1.97 per diluted share, compared with net income of $44.5 million, or $3.85 per diluted share, in 2023. The results included $5.7 million of LIFO pre-tax income in 2024, compared with $8.3 million of LIFO pre-tax income in 2023. Adjusted EBITDA for 2024 was $72.5 million, compared with $97.6 million in 2023. Sales for 2024 totaled $1.9 billion compared with $2.2 billion in 2023.

“Olympic Steel delivered a solid finish to the year with a sequential improvement in profitability in the fourth quarter,” said Richard T. Marabito, Chief Executive Officer. “In a year that was challenging for the metals industry, with demand and pricing both decreasing, we delivered on our strategy to be profitable in all market conditions. We successfully grew market share across our portfolio and outperformed industry shipments, with total annual shipping volumes within 1% of our 2023 levels. Importantly, each of our segments achieved positive EBITDA in every quarter of 2024 – a testament to the success of our diversification strategy, our commitment to operational discipline and the resilience of our team.”

Marabito added, “We continue to make the right investments in our business while closely managing our operating expenses. We made strategic capital investments during 2024, particularly in automation projects, which enable us to enhance throughput, safety and productivity. In addition, during the fourth quarter, we completed the acquisition of Metal Works, a leading metal canopy manufacturer. Metal Works is off to a strong start under Olympic Steel ownership, which further validates our strategy for growth in manufactured metal products.”

Marabito concluded, “As we continue to monitor the macro factors impacting our industry, we are confident in our business, our people and our strategy for sustaining profitability and driving growth. We remain well-positioned to continue investing in organic growth opportunities as well as additional acquisitions that enhance our higher-value product offerings and further support our diversification strategy.”

The Company’s Board of Directors approved a regular quarterly cash dividend of $0.16 per share, which is an increase from the Company’s last quarterly dividend of $0.15 per share. This marks the fourth increase since 2022, cumulatively raising the quarterly dividend from $0.02 per share to $0.16 per share. The dividend is payable on March 17, 2025, to shareholders of record as of March 3, 2025. The Company has paid a regular quarterly dividend since March 2006.

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

 

Twelve Months Ended

December 31

 

December 31

2024

 

2023

 

2024

 

2023

  Net income per diluted share (GAAP)

$

0.33

 

$

0.64

 

$

1.97

 

$

3.85

 

  Excluding the following items LIFO income

 

(0.22

)

 

(0.35

)

 

(0.36

)

 

(0.52

)

Acquisition Inventory fair market value adjustment

 

-

 

 

0.01

 

 

-

 

 

0.14

 

Acquisition related expenses

 

0.02

 

 

0.06

 

 

0.01

 

 

0.22

 

Employee retention credit

 

-

 

 

-

 

 

-

 

 

(0.25

)

  Adjusted net income per diluted share (non-GAAP)

$

0.13

 

$

0.36

 

$

1.62

 

$

3.44

 

   

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

 

Twelve Months Ended

December 31

 

December 31

2024

 

2023

 

2024

 

2023

  Net income (GAAP):

$

3,889

 

$

7,408

 

$

22,980

 

$

44,529

 

Excluding the following items Other loss, net

 

27

 

 

11

 

 

93

 

 

78

 

Interest and other expense on debt

 

4,178

 

 

3,627

 

 

16,461

 

 

16,006

 

Income tax provision

 

908

 

 

2,245

 

 

8,325

 

 

17,058

 

Depreciation and amortization

 

8,335

 

 

7,584

 

 

30,130

 

 

26,443

 

  Earnings before interest, taxes, depreciation and amortization (EBITDA)

 

17,337

 

 

20,875

 

 

77,989

 

 

104,114

 

  LIFO income

 

(3,102

)

 

(5,258

)

 

(5,702

)

 

(8,258

)

Acquisition Inventory fair market value adjustment

 

-

 

 

134

 

 

-

 

 

2,212

 

Acquisition related expenses

 

218

 

 

947

 

 

218

 

 

3,503

 

Employee retention credit

 

-

 

 

-

 

 

-

 

 

(4,000

)

Adjusted EBITDA (non-GAAP)

$

14,453

 

$

16,698

 

$

72,505

 

$

97,571

 

 

Conference Call and Webcast

A simulcast of Olympic Steel’s 2024 fourth-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 February 21, 2025, 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: supply disruptions and inflationary pressures, including the availability and rising costs of labor and energy; risks associated with shortages of skilled labor, increased labor costs and our ability to attract and retain qualified personnel; risks of volatile metals prices and inventory devaluation; rising interest rates and their impacts on our variable interest rate debt; supplier consolidation or addition of new capacity; the levels of imported steel in the United States, imposed tariffs and duties on imported or exported steel or other products, U.S. trade policy and its impact on the U.S. manufacturing industry; risks associated with economic sanctions, and current global conflicts, or additional war, military conflict, or hostilities could adversely affect global metals supply and pricing; general and global business, economic, financial and political conditions, including, but not limited to, recessionary conditions and legislation passed under the current administration; reduced production schedules, layoffs or work stoppages by our own, our suppliers’ or customers’ personnel; our ability to successfully integrate recent acquisitions, including CTB, Metal-Fab and Metal Works, into our business and risks inherent with the acquisitions in the achievement of expected results, including whether the acquisition will be accretive and within the expected timeframe; the adequacy of our existing information technology and business system software, including duplication and security processes; the inflation or deflation existing within the metals industry, as well as product mix and inventory levels on hand, which can impact our cost of materials sold as a result of the fluctuations in the last-in, first-out, or LIFO, inventory valuation; competitive factors such as the availability, and global pricing of metals and production levels, industry shipping and inventory levels and rapid fluctuations in customer demand and metals pricing; risks associated with the infectious disease outbreaks, including, but not limited to customer closures, reduced sales and profit levels, slower payment of accounts receivable and potential increases in uncollectible accounts receivable, falling metals prices that could lead to lower of cost or net realizable value inventory adjustments and the impairment of intangible and long-lived assets, negative impacts on our liquidity position, inability to access our traditional financing sources and increased costs associated with and less ability to access funds under our asset-based credit facility, or ABL Credit Facility, and the capital markets; increased customer demand without corresponding increase in metal supply could lead to an inability to meet customer demand and result in lower sales and profits; cyclicality and volatility within the metals industry; customer, supplier and competitor consolidation, bankruptcy or insolvency; the timing and outcomes of inventory lower of cost or net realizable value adjustments and LIFO income or expense; fluctuations in the value of the U.S. dollar and the related impact on foreign steel pricing, U.S. exports, and foreign imports to the United States; 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; the successes of our efforts and initiatives to improve working capital turnover and cash flows, and achieve cost savings; risks and uncertainties associated with intangible assets, including impairment charges related to indefinite lived intangible assets; our ability to generate free cash flow through operations and repay debt; the impacts of union organizing activities and the success of union contract renewals; the amounts, successes and our ability to continue our capital investments and strategic growth initiatives, including acquisitions and our business information system implementations; events or circumstances that could adversely impact the successful operation of our processing equipment and operations; changes in laws or regulations or the manner of their interpretation or enforcement could impact our financial performance and restrict our ability to operate our business or execute our strategies; events or circumstances that could impair or adversely impact the carrying value of any of our assets; our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends; our ability to repurchase shares of our common stock and the amounts and timing of repurchases, if any; our ability to sell shares of our common stock under the at-the-market equity program; and unanticipated developments that could occur with respect to contingencies such as litigation, arbitration and environmental matters, including any developments that would require any increase in our costs for such contingencies.

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 (NASDAQ: ZEUS) is a leading U.S. metals service center focused on the direct sale and value-added processing of carbon and coated sheet, plate, and coil steel products; stainless steel sheet, plate, bar and coil; aluminum sheet, plate and coil; pipe, tube, bar, valves and fittings; tin plate and metal-intensive end-use products, including water treatment systems; commercial, residential and industrial venting and air filtration systems; Wright® brand self-dumping hoppers; metal canopy components; and EZ-Dumper® dump inserts. Headquartered in Cleveland, Ohio, Olympic Steel operates from 48 facilities.

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

 

Twelve Months Ended

December 31,

 

December 31,

2024

 

2023

 

2024

 

2023

  Net sales

$

418,784

$

489,408

$

1,941,672

$

2,158,163

  Costs and expenses Cost of materials sold (excludes items shown separately below)

 

313,262

 

375,675

 

1,490,491

 

1,684,663

Warehouse and processing

 

30,915

 

31,087

 

128,770

 

122,212

Administrative and general

 

25,499

 

31,192

 

113,044

 

122,239

Distribution

 

16,366

 

15,448

 

67,467

 

66,979

Selling

 

11,185

 

11,063

 

46,643

 

41,436

Occupancy

 

4,220

 

4,068

 

17,268

 

16,520

Depreciation

 

6,963

 

6,215

 

24,548

 

21,545

Amortization

 

1,372

 

1,369

 

5,582

 

4,898

  Total costs and expenses

 

409,782

 

476,117

 

1,893,813

 

2,080,492

  Operating income

 

9,002

 

13,291

 

47,859

 

77,671

  Other loss, net

 

27

 

11

 

93

 

78

  Income before interest and income taxes

 

8,975

 

13,280

 

47,766

 

77,593

  Interest and other expense on debt

 

4,178

 

3,627

 

16,461

 

16,006

  Income before income taxes

 

4,797

 

9,653

 

31,305

 

61,587

  Income tax provision

 

908

 

2,245

 

8,325

 

17,058

  Net income

$

3,889

$

7,408

$

22,980

$

44,529

    Earnings per share:   Net income per share - basic

$

0.33

$

0.64

$

1.97

$

3.85

  Weighted average shares outstanding - basic

 

11,694

 

11,578

 

11,677

 

11,573

  Net income per share - diluted

$

0.33

$

0.64

$

1.97

$

3.85

  Weighted average shares outstanding - diluted

 

11,694

 

11,587

 

11,677

 

11,578

   

Olympic Steel, Inc.

Balance Sheets

(in thousands)

  As ofDecember 31,2024 As ofDecember 31,2023 Assets   Cash and cash equivalents

$

11,912

 

$

13,224

 

Accounts receivable, net

 

166,149

 

 

191,149

 

Inventories, net (includes LIFO reserves of $6,341 and $12,043 as of December 31, 2024 and December 31, 2023, respectively)

 

390,626

 

 

386,535

 

Prepaid expenses and other

 

11,904

 

 

12,261

 

  Total current assets

 

580,591

 

 

603,169

 

  Property and equipment, at cost

 

519,702

 

 

483,448

 

Accumulated depreciation

 

(315,866

)

 

(297,340

)

  Net property and equipment

 

203,836

 

 

186,108

 

  Goodwill

 

83,818

 

 

52,091

 

Intangible assets, net

 

118,111

 

 

92,621

 

Other long-term assets

 

21,204

 

 

16,466

 

Right of use asset, net

 

36,936

 

 

34,380

 

  Total assets

$

1,044,496

 

$

984,835

 

  Liabilities   Accounts payable

$

80,743

 

$

119,718

 

Accrued payroll

 

24,184

 

 

30,113

 

Other accrued liabilities

 

21,846

 

 

22,593

 

Current portion of lease liabilities

 

5,865

 

 

7,813

 

  Total current liabilities

 

132,638

 

 

180,237

 

  Credit facility revolver

 

272,456

 

 

190,198

 

Other long-term liabilities

 

22,484

 

 

20,151

 

Deferred income taxes

 

11,049

 

 

11,510

 

Lease liabilities

 

31,945

 

 

27,261

 

  Total liabilities

 

470,572

 

 

429,357

 

    Shareholders' Equity   Preferred stock

 

-

 

 

-

 

Common stock

 

138,538

 

 

136,541

 

Accumulated other comprehensive loss

 

190

 

 

41

 

Retained earnings

 

435,196

 

 

418,896

 

  Total shareholders' equity

 

573,924

 

 

555,478

 

  Total liabilities and shareholders' equity

$

1,044,496

 

$

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 December 31,

Carbon Flat Products

 

Specialty Metals Flat Products

 

Tubular and Pipe Products

2024

 

2023

 

2024

 

2023

 

2024

 

2023

  Tons sold 1

 

186,723

 

202,434

 

26,172

 

26,424

 

N/A

 

 

N/A

 

  Net sales

$

235,521

$

280,169

$

110,754

$

121,400

$

72,509

 

$

87,839

 

Average selling price per ton

 

1,261

 

1,384

 

4,232

 

4,594

 

N/A

 

 

N/A

 

Cost of materials sold

 

176,886

 

219,627

 

90,245

 

101,849

 

46,131

 

 

54,199

 

Gross profit

 

58,635

 

60,542

 

20,509

 

19,551

 

26,378

 

 

33,640

 

Operating expenses

 

56,672

 

56,549

 

17,497

 

17,274

 

18,169

 

 

22,093

 

Operating income

 

1,963

 

3,993

 

3,012

 

2,277

 

8,209

 

 

11,547

 

  Depreciation and amortization

 

5,208

 

3,871

 

997

 

1,051

 

2,112

 

 

2,644

 

LIFO (income) / expense

 

-

 

-

 

-

 

-

 

(3,102

)

 

(5,258

)

 

Twelve Months Ended December 31,

Carbon Flat Products

 

Specialty Metals Flat Products

 

Tubular and Pipe Products

2024

 

2023

 

2024

 

2023

 

2024

 

2023

  Tons sold 1

 

839,699

 

854,192

 

117,508

 

115,587

 

N/A

 

 

N/A

 

  Net sales

$

1,109,100

$

1,221,093

$

496,854

$

567,728

$

335,718

 

$

369,342

 

Average selling price per ton

 

1,321

 

1,430

 

4,228

 

4,912

 

N/A

 

 

N/A

 

Cost of materials sold

 

864,590

 

963,667

 

406,229

 

473,784

 

219,672

 

 

247,212

 

Gross profit

 

244,510

 

257,426

 

90,625

 

93,944

 

116,046

 

 

122,130

 

Operating expenses

 

228,095

 

222,844

 

70,897

 

71,060

 

87,237

 

 

81,438

 

Operating income

 

16,415

 

34,582

 

19,728

 

22,884

 

28,809

 

 

40,692

 

  Depreciation and amortization

 

17,429

 

14,762

 

3,919

 

3,929

 

8,712

 

 

7,682

 

LIFO (income) / expense

 

-

 

-

 

-

 

-

 

(5,702

)

 

(8,258

)

  1 The Company does not report tons sold for McCullough Industries, EZ-Dumper, Metal-Fab, or Metal Works 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 ofDecember 31,2024 As ofDecember 31,2023 Assets Flat-products

$

695,881

$

649,744

Tubular and pipe products

 

347,468

 

333,677

Corporate

 

1,147

 

1,414

Total assets

$

1,044,496

$

984,835

   

Other Information

(in thousands, except per-share and ratio data)

As ofDecember 31,2024 As ofDecember 31,2023 Shareholders' equity per share

$

51.54

$

49.90

  Debt to equity ratio

0.47 to 1

0.34 to 1

   

Twelve Months Ended December 31,

2024

 

2023

  Net cash from (used for) operating activities

$

33,679

$

175,159

  Cash dividends per share

$

0.60

$

0.50

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250219468665/en/

Richard A. Manson Chief Financial Officer (216) 672-0522 ir@olysteel.com