On August 1, 2024, Olympic Steel Inc (ZEUS, Financial) released its 8-K filing for the second quarter of 2024. Olympic Steel Inc provides metals processing and distribution services in the United States, operating in three segments: specialty metals flat products, carbon flat products, and tubular and pipe products. The company specializes in processing and distributing large volumes of carbon, aluminum, and stainless steel flat-rolled sheet, coils, plates, bars, and fabricated parts, serving industries such as industrial machinery, automobile manufacturing, and transportation equipment manufacturing.
Performance Overview
Olympic Steel Inc (ZEUS, Financial) reported a net income of $7.7 million, or $0.66 per diluted share, for Q2 2024, compared to $15.0 million, or $1.30 per diluted share, in Q2 2023. The company’s adjusted EBITDA for Q2 2024 was $21.3 million, down from $31.2 million in the same period last year. Despite the challenging pricing environment, the company managed to achieve profitability across all three business segments.
“Olympic Steel’s ability to capitalize on our diversification strategy was critical to delivering profitability across all three business segments in the second quarter,” said Richard T. Marabito, Chief Executive Officer.
Financial Achievements
Olympic Steel Inc (ZEUS, Financial) reported Q2 2024 sales of $526 million, a decrease from $569 million in Q2 2023. The company’s ability to maintain profitability despite a 22% drop in hot-rolled index pricing highlights its strategic focus on higher-margin products and additional fabrication capabilities.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $526 million | $569 million |
| Net Income | $7.7 million | $15.0 million |
| EPS (Diluted) | $0.66 | $1.30 |
| Adjusted EBITDA | $21.3 million | $31.2 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Olympic Steel Inc (ZEUS, Financial) reported total assets of $1.006 billion, up from $984.8 million as of December 31, 2023. The company’s cash and cash equivalents stood at $9.4 million, with accounts receivable at $216.7 million. The company’s total liabilities were $436.8 million, with shareholders' equity at $569.5 million.
Segment Performance
| Segment | Net Sales (Q2 2024) | Net Sales (Q2 2023) |
|---|---|---|
| Carbon Flat Products | $307.8 million | $326.6 million |
| Specialty Metals Flat Products | $130.9 million | $147.0 million |
| Tubular and Pipe Products | $87.6 million | $95.6 million |
Analysis
Olympic Steel Inc (ZEUS, Financial) demonstrated resilience in a challenging pricing environment by leveraging its diversified product offerings and higher-margin mix. The company’s strategic focus on expanding its fabrication capabilities and end products has positioned it well to navigate market pressures. Despite a decline in net income and sales compared to the previous year, the company’s strong balance sheet and access to capital provide flexibility for future growth.
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Explore the complete 8-K earnings release (here) from Olympic Steel Inc for further details.
