• Revenue: $470 million in sales for the third quarter of 2024.

• EBITDA: $15 million for the third quarter of 2024.

• Net Income: $2.7 million for the third quarter of 2024.

• Debt Reduction: Reduced debt by $12 million to $197 million.

• Credit Availability: Approximately $304 million available for funding growth initiatives.

• Operating Expenses: $99 million for the third quarter of 2024.

• Capital Expenditures: $22.3 million for the first three quarters of 2024; estimated $30 million for the full year.

• Effective Tax Rate: 30% for the third quarter of 2024.

• Dividend: $0.15 per share paid in the third quarter; next dividend of $0.15 per share payable on December 16, 2024.

• Carbon Segment EBITDA: $4.5 million for the third quarter of 2024.

• Pipe and Tube Segment EBITDA: $6.7 million for the third quarter of 2024.

• Specialty Metals Segment EBITDA: $5.9 million for the third quarter of 2024.

• Warning! GuruFocus has detected 3 Warning Sign with ARCB.

Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Olympic Steel Inc (NASDAQ:ZEUS) achieved EBITDA positive results across all three segments despite challenging market conditions.

• The company reduced its debt by approximately $12 million, bringing it down to $197 million.

• Olympic Steel Inc (NASDAQ:ZEUS) has $304 million of credit availability to support growth initiatives.

• The company is actively investing in new equipment and automation to enhance safety, efficiency, and productivity.

• Olympic Steel Inc (NASDAQ:ZEUS) continues to pursue acquisitions, with a focus on countercyclical and higher-margin opportunities.

Negative Points

• The company faced reduced demand from OEM customers, particularly in the heavy equipment sector, leading to lower volumes in the Carbon segment.

• Stainless steel surcharges fell to a 3.5-year low, creating pricing pressure in the Specialty Metals segment.

• Net income for the third quarter was $2.7 million, a significant decrease from $12.2 million in the same period last year.

• Operating expenses increased to $99 million from $91 million in the third quarter of 2023, partly due to the acquisition of Central Tube & Bar.

• Macroeconomic headwinds are expected to continue, with uncertainty surrounding the presidential election and future interest rate cuts.

Q & A Highlights

Q: Can you explain the process and timeline for implementing new machinery and training employees? A: Andrew Greiff, President and COO, explained that training will occur both before and immediately after the equipment arrives. The company expects the new machinery to be operational shortly after installation, assuming it performs as expected.