Q2 2024 Olympic Steel Inc Earnings Call Transcript
Key Points
- Olympic Steel Inc (ZEUS) delivered profitable results across all three segments despite a challenging pricing environment.
- The company reported increased shipping volume and sales of $526 million with a net income of $15 million and $22 million of EBITDA.
- Efforts to grow in higher-margin flat-rolled products and additional fabrication capabilities have strengthened the business.
- Olympic Steel Inc (ZEUS) has more than $340 million in borrowing availability under its existing credit facility, positioning it well for future investments.
- The specialty metals segment experienced its best quarter for both volume and profitability since Q1 2023, with shipping volumes increasing 10.4% year-over-year.
- The hot-rolled index pricing fell 22% during the second quarter and 39% since the beginning of the year, impacting overall profitability.
- Net income for the second quarter was $7.7 million, down from $15 million in the same period last year.
- EBITDA in the quarter was $22.3 million, a decrease from $32.2 million in the prior year period.
- Consolidated operating expenses increased to $104.6 million from $101.6 million in the second quarter of 2023.
- The effective borrowing rate in the second quarter of 2024 was higher due to the expiration of the interest rate hedge, increasing financial costs.
Good morning, and welcome to the Olympic Steel 2024 second-quarter financial results conference call. (Operator Instructions) Please note, this conference is being recorded. At this time, I would like to hand the conference call over to Rich Manson, Chief Financial Officer at Olympic Steel. Please go ahead, sir.
Thank you, operator. Welcome to Olympic Steel's earnings call for the second quarter of 2024. Our call this morning will be hosted by our Chief Executive Officer, Rick Marabito; and we will also be joined by our President and Chief Operating Officer, Andrew Greiff.
Before we begin, I have a few reminders. Some statements made on today's call will be predictive and are intended to be made as forward-looking within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and may not reflect actual results.
The company does not undertake to update such statements, changes in assumptions or changes in other factors affecting such forward-looking
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