On November 2, 2023, Olympic Steel Inc (ZEUS, Financial), a leading national metals service center, announced its financial results for the third quarter ended September 30, 2023. The company reported a net income of $12.2 million, or $1.06 per diluted share, compared to a net income of $12.0 million, or $1.04 per diluted share, in the third quarter of 2022. The company's EBITDA for the third quarter of 2023 was $27.1 million, compared to $23.8 million in the third quarter of 2022.
Financial Performance
Olympic Steel Inc (ZEUS, Financial) reported sales totaling $526 million in the third quarter of 2023, compared with $634 million in the third quarter of 2022, due primarily to lower metal pricing year-over-year. Despite challenging market conditions, all Olympic segments were profitable, led by the Pipe and Tube business, which recorded one of its most profitable quarters ever, and strong results from the Carbon segment.
Strategic Acquisitions
On October 2, 2023, the company completed the all-cash acquisition of Central Tube & Bar. This acquisition marks the company's seventh in the past six years and is part of its strategic investment focused on growing its portfolio of products and services with higher-margin returns.
Future Outlook
Olympic Steel Inc (ZEUS, Financial) remains well-positioned to continue executing on its growth strategy. The company's total debt under its revolving credit facility was approximately $234 million, with availability of approximately $359 million, leaving significant capital to invest in additional acquisitions, new capacity, and increased automation. The company remains optimistic about the long-term outlook for the U.S. steel market and anticipates profitable growth in 2024.
Dividend Announcement
The Board of Directors approved a regular quarterly cash dividend of $0.125 per share, payable on December 15, 2023, to shareholders of record as of December 1, 2023. The company has paid a regular quarterly dividend since March 2006.
Financial Tables
The company provided detailed financial tables, including a reconciliation of non-GAAP measures to the most directly comparable measures prepared in accordance with GAAP. The tables provide a comprehensive view of the company's performance, including net income per diluted share, adjusted net income per diluted share, and adjusted EBITDA.
About Olympic Steel Inc (ZEUS, Financial)
Founded in 1954, Olympic Steel 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 products; stainless steel sheet, plate, bar and coil; aluminum sheet, plate and coil; pipe, tube, valves and fittings; tin plate and manufactured products. The Company operates from 47 locations across North America.
Explore the complete 8-K earnings release (here) from Olympic Steel Inc for further details.
