Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Olympic Steel Reports Third-Quarter 2023 Results By: Olympic Steel, Inc. via Business Wire November 02, 2023 at 16:30 PM EDT Diversification and operating disciplines drive performance despite challenging market conditions Central Tube & Bar acquisition in October continues diversification strategy to invest in consistently high-performing businesses Company remains well-positioned to execute on strategy to deliver more consistent results in all environments and drive profitable growth Olympic Steel, Inc. (Nasdaq: ZEUS), a leading national metals service center, today announced financial results for the three months ended September 30, 2023. Net income for the third quarter totaled $12.2 million, or $1.06 per diluted share, compared with net income of $12.0 million, or $1.04 per diluted share, in the third quarter of 2022. EBITDA for the third quarter of 2023 was $27.1 million, compared with $23.8 million in the third quarter of 2022. Third-quarter 2023 results include $2.0 million of LIFO pretax income and $4.0 million of pretax income from the Employee Retention Credit (under the CARES Act), compared with $1.5 million of LIFO pretax expense in the same period a year ago. The Company 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. “Olympic Steel’s performance in a challenging third-quarter market demonstrates the benefits of our actions to deliver more consistent results in all environments,” said Richard T. Marabito, Chief Executive Officer. “Metal pricing declines accelerated in the back half of the quarter due to added macroeconomic uncertainty, leading to softer-than-anticipated volumes across the industry. Despite these headwinds, all Olympic segments were profitable, led by our Pipe and Tube business, which recorded one of its most profitable quarters ever, and strong results from our Carbon segment.” Marabito continued, “On October 2, 2023, as previously announced, we completed the all-cash acquisition of Central Tube & Bar. The transaction, which marks the Company’s seventh acquisition in the past six years, is our latest strategic investment focused on growing our portfolio of products and services with higher-margin returns. Central Tube & Bar’s historical financial performance has been consistently strong, and we believe its value-added contract manufacturing capabilities, geographic reach in the South-Central United States and complementary culture make the company an excellent fit for our Pipe and Tube business.” Olympic Steel remains well-positioned to continue executing on its growth strategy. Following the Central Tube acquisition, 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. Marabito concluded, “We remain optimistic about the long-term outlook for the U.S. steel market and our business. As we finish another solid year, we are seeing a rebound in pricing. We believe improved market pricing dynamics, continued industrial backlogs and anticipated infrastructure spending, along with our ongoing efforts to invest in higher-return opportunities, will result in profitable growth in 2024.” The Board of Directors approved a regular quarterly cash dividend of $0.125 per share, which is 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. 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 Nine months ended September 30, September 30, 2023 2022 2023 2022 Net income per diluted share (GAAP) $ 1.06 $ 1.04 $ 3.21 $ 7.53 Excluding the following items LIFO (income) / expense (0.13 ) 0.10 (0.19 ) 0.10 Acquisition inventory fair market value adjustment - - 0.13 - Acquisition related expenses - - 0.16 - Gain on sale of warehouse - - - (0.13 ) Employee retention credit (0.25 ) - (0.25 ) - Adjusted net income per diluted share (non-GAAP) $ 0.68 $ 1.14 $ 3.06 $ 7.50 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 Nine Months Ended 9/30/2023 9/30/2022 9/30/2023 9/30/2022 Net income (GAAP): $ 12,230 $ 12,046 $ 37,121 $ 86,972 Excluding the following items Foreign exchange loss included in net income 28 17 67 38 Interest and other expense on debt 3,953 3,007 12,379 7,276 Income tax provision 4,674 4,016 14,813 31,787 Depreciation and amortization 6,185 4,666 18,859 14,594 Earnings before interest, taxes, depreciation and amortization (EBITDA) 27,070 23,752 83,239 140,667 LIFO (income) / expense (2,000 ) 1,500 (3,000 ) 1,500 Acquisition inventory fair market value adjustment - - 2,079 - Acquisition related expenses - - 2,556 - Gain on sale of warehouse - - - (2,083 ) Employee retention credit (4,000 ) - (4,000 ) - Adjusted EBITDA (non-GAAP) $ 21,070 $ 25,252 $ 80,874 $ 140,084 Conference Call and Webcast A simulcast of Olympic Steel’s 2023 third-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 November 3, 2023, 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: risks of falling metals prices and inventory devaluation; supply disruptions and inflationary pressures, including the availability and rising costs of transportation, energy, logistical services and labor; risks associated with shortages of skilled labor, increased labor costs and our ability to attract and retain qualified personnel; rising interest rates and their impacts on our variable interest rate debt; risks associated with the invasion of Ukraine, including economic sanctions, and the conflicts in the Middle East, or additional war, military conflict, or hostilities could adversely affect global metals supply and pricing; risks associated with supply chain disruption resulting from the imbalance of metal supply and end-user demands, including additional shutdowns as a result of infectious disease outbreaks in large markets, such as China, and other factors; 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: supplier consolidation or addition of new capacity; risks associated with 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; our ability to successfully integrate recent acquisitions, including Central Tube and Bar, Inc., or CTB, 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 levels of imported steel in the United States and the tariffs initiated by the U.S. government in 2018 under Section 232 of the Trade Expansion Act of 1962 and imposed tariffs and duties on exported steel or other products, U.S. trade policy and its impact on the U.S. manufacturing industry; 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; 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; 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; 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; cyclicality and volatility within the metals industry; 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; 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; the successes of our efforts and initiatives to improve working capital turnover and cash flows, and achieve cost savings; our ability to generate free cash flow through operations and repay debt; 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; the impacts of union organizing activities and the success of union contract renewals; 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; risks and uncertainties associated with intangible assets, including impairment charges related to indefinite lived intangible 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 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 was founded in 1954 and operates from 47 locations across North America. 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 Nine months ended September 30 September 30 2023 2022 2023 2022 Net sales $ 526,411 $ 634,437 $ 1,668,755 $ 2,039,946 Costs and expenses Cost of materials sold (excludes items shown separately below) 414,480 527,466 1,308,988 1,643,119 Warehouse and processing 28,954 27,397 91,125 79,069 Administrative and general 26,181 26,929 91,047 88,520 Distribution 16,342 15,131 51,531 46,613 Selling 9,587 10,589 30,373 31,905 Occupancy 3,797 3,173 12,452 10,053 Depreciation 5,008 4,062 15,330 12,766 Amortization 1,177 604 3,529 1,828 Total costs and expenses 505,526 615,351 1,604,375 1,913,873 Operating income 20,885 19,086 64,380 126,073 Other loss, net 28 17 67 38 Income before interest and income taxes 20,857 19,069 64,313 126,035 Interest and other expense on debt 3,953 3,007 12,379 7,276 Income before income taxes 16,904 16,062 51,934 118,759 Income tax provision 4,674 4,016 14,813 31,787 Net income $ 12,230 $ 12,046 $ 37,121 $ 86,972 Earnings per share: Net income per share - basic $ 1.06 $ 1.04 $ 3.21 $ 7.53 Weighted average shares outstanding - basic 11,586 11,548 11,568 11,543 Net income per share - diluted $ 1.06 $ 1.04 $ 3.21 $ 7.53 Weighted average shares outstanding - diluted 11,592 11,557 11,571 11,548 Olympic Steel, Inc. Balance Sheets (in thousands) As of September 30, 2023 As ofDecember 31, 2022 Assets Cash and cash equivalents $ 9,091 $ 12,189 Accounts receivable, net 227,847 219,789 Inventories, net (includes LIFO reserves of $17,301 and $20,301 as of September 30, 2023 and December 31, 2022, respectively) 392,354 416,931 Prepaid expenses and other 12,608 9,197 Total current assets 641,900 658,106 Property and equipment, at cost 466,499 429,810 Accumulated depreciation (292,280 ) (281,478 ) Net property and equipment 174,219 148,332 Goodwill 43,690 10,496 Intangible assets, net 84,028 32,035 Other long-term assets 15,425 14,434 Right of use asset, net 33,544 28,224 Total assets $ 992,806 $ 891,627 Liabilities Accounts payable $ 127,671 $ 101,446 Accrued payroll 29,617 40,334 Other accrued liabilities 22,069 16,824 Current portion of lease liabilities 7,015 6,098 Total current liabilities 186,372 164,702 Credit facility revolver 196,527 165,658 Other long-term liabilities 17,531 12,619 Deferred income taxes 15,869 10,025 Lease liabilities 27,186 22,655 Total liabilities 443,485 375,659 Shareholders' Equity Preferred stock - - Common stock 135,981 134,724 Accumulated other comprehensive loss 461 1,311 Retained earnings 412,879 379,933 Total shareholders' equity 549,321 515,968 Total liabilities and shareholders' equity $ 992,806 $ 891,627 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 September 30, Carbon Flat Products Specialty Metals Flat Products Tubular and Pipe Products 2023 2022 2023 2022 2023 2022 Tons sold 1 207,145 203,122 27,936 34,189 N/A N/A Net sales $ 304,478 $ 336,259 $ 132,763 $ 188,301 $ 89,170 $ 109,877 Average selling price per ton 1,470 1,655 4,752 5,508 N/A N/A Cost of materials sold 242,532 293,498 111,622 150,546 60,326 83,422 Gross profit 61,946 42,761 21,141 37,755 28,844 26,455 Operating expenses 51,997 41,029 16,473 22,683 18,811 19,360 Operating income 9,949 1,732 4,668 15,072 10,033 7,095 Depreciation and amortization 3,568 2,513 871 1,024 1,729 1,112 LIFO income / (expense) - - - - 2,000 (1,500 ) Nine months ended September 30, Carbon Flat Products Specialty Metals Flat Products Tubular and Pipe Products 2023 2022 2023 2022 2023 2022 Tons sold 1 651,758 619,809 89,163 111,019 N/A N/A Net sales $ 940,925 $ 1,086,473 $ 446,327 $ 614,744 $ 281,503 $ 338,729 Average selling price per ton 1,444 1,753 5,006 5,537 N/A N/A Cost of materials sold 744,040 931,844 371,935 455,977 193,013 255,298 Gross profit 196,885 154,629 74,392 158,767 88,490 83,431 Operating expenses 166,295 127,404 53,786 73,138 59,345 54,454 Operating income 30,590 27,225 20,606 85,629 29,145 28,977 Depreciation and amortization 10,891 7,885 2,878 3,037 5,038 3,620 LIFO income / (expense) - - - - 3,000 (1,500 ) 1 The Company does not report tons sold for McCullough Industries, EZ Dumper, or Metal-Fab in the Carbon Flat Products Segment, Shaw Stainless in the Specialty Metals Flat Products Segment or the Tubular and Pipe Products Segment. As of September 30, 2023 As of December 31, 2022 Assets Flat-products $ 708,766 $ 631,607 Tubular and pipe products 282,300 258,412 Corporate 1,740 1,608 Total assets $ 992,806 $ 891,627 Other Information (in thousands, except per-share and ratio data) As of September 30, 2023 As of December 31, 2022 Shareholders' equity per share $ 49.34 $ 46.36 Debt to equity ratio 0.36 to 1 0.32 to 1 Nine Months Ended September 30, 2023 2022 Net cash from operating activities $ 120,999 $ 98,300 Cash dividends per share $ 0.38 $ 0.27 View source version on businesswire.com: https://www.businesswire.com/news/home/20231102779305/en/Contacts Richard A. Manson Chief Financial Officer (216) 672-0522 ir@olysteel.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Olympic Steel Reports Third-Quarter 2023 Results By: Olympic Steel, Inc. via Business Wire November 02, 2023 at 16:30 PM EDT Diversification and operating disciplines drive performance despite challenging market conditions Central Tube & Bar acquisition in October continues diversification strategy to invest in consistently high-performing businesses Company remains well-positioned to execute on strategy to deliver more consistent results in all environments and drive profitable growth Olympic Steel, Inc. (Nasdaq: ZEUS), a leading national metals service center, today announced financial results for the three months ended September 30, 2023. Net income for the third quarter totaled $12.2 million, or $1.06 per diluted share, compared with net income of $12.0 million, or $1.04 per diluted share, in the third quarter of 2022. EBITDA for the third quarter of 2023 was $27.1 million, compared with $23.8 million in the third quarter of 2022. Third-quarter 2023 results include $2.0 million of LIFO pretax income and $4.0 million of pretax income from the Employee Retention Credit (under the CARES Act), compared with $1.5 million of LIFO pretax expense in the same period a year ago. The Company 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. “Olympic Steel’s performance in a challenging third-quarter market demonstrates the benefits of our actions to deliver more consistent results in all environments,” said Richard T. Marabito, Chief Executive Officer. “Metal pricing declines accelerated in the back half of the quarter due to added macroeconomic uncertainty, leading to softer-than-anticipated volumes across the industry. Despite these headwinds, all Olympic segments were profitable, led by our Pipe and Tube business, which recorded one of its most profitable quarters ever, and strong results from our Carbon segment.” Marabito continued, “On October 2, 2023, as previously announced, we completed the all-cash acquisition of Central Tube & Bar. The transaction, which marks the Company’s seventh acquisition in the past six years, is our latest strategic investment focused on growing our portfolio of products and services with higher-margin returns. Central Tube & Bar’s historical financial performance has been consistently strong, and we believe its value-added contract manufacturing capabilities, geographic reach in the South-Central United States and complementary culture make the company an excellent fit for our Pipe and Tube business.” Olympic Steel remains well-positioned to continue executing on its growth strategy. Following the Central Tube acquisition, 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. Marabito concluded, “We remain optimistic about the long-term outlook for the U.S. steel market and our business. As we finish another solid year, we are seeing a rebound in pricing. We believe improved market pricing dynamics, continued industrial backlogs and anticipated infrastructure spending, along with our ongoing efforts to invest in higher-return opportunities, will result in profitable growth in 2024.” The Board of Directors approved a regular quarterly cash dividend of $0.125 per share, which is 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. 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 Nine months ended September 30, September 30, 2023 2022 2023 2022 Net income per diluted share (GAAP) $ 1.06 $ 1.04 $ 3.21 $ 7.53 Excluding the following items LIFO (income) / expense (0.13 ) 0.10 (0.19 ) 0.10 Acquisition inventory fair market value adjustment - - 0.13 - Acquisition related expenses - - 0.16 - Gain on sale of warehouse - - - (0.13 ) Employee retention credit (0.25 ) - (0.25 ) - Adjusted net income per diluted share (non-GAAP) $ 0.68 $ 1.14 $ 3.06 $ 7.50 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 Nine Months Ended 9/30/2023 9/30/2022 9/30/2023 9/30/2022 Net income (GAAP): $ 12,230 $ 12,046 $ 37,121 $ 86,972 Excluding the following items Foreign exchange loss included in net income 28 17 67 38 Interest and other expense on debt 3,953 3,007 12,379 7,276 Income tax provision 4,674 4,016 14,813 31,787 Depreciation and amortization 6,185 4,666 18,859 14,594 Earnings before interest, taxes, depreciation and amortization (EBITDA) 27,070 23,752 83,239 140,667 LIFO (income) / expense (2,000 ) 1,500 (3,000 ) 1,500 Acquisition inventory fair market value adjustment - - 2,079 - Acquisition related expenses - - 2,556 - Gain on sale of warehouse - - - (2,083 ) Employee retention credit (4,000 ) - (4,000 ) - Adjusted EBITDA (non-GAAP) $ 21,070 $ 25,252 $ 80,874 $ 140,084 Conference Call and Webcast A simulcast of Olympic Steel’s 2023 third-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 November 3, 2023, 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: risks of falling metals prices and inventory devaluation; supply disruptions and inflationary pressures, including the availability and rising costs of transportation, energy, logistical services and labor; risks associated with shortages of skilled labor, increased labor costs and our ability to attract and retain qualified personnel; rising interest rates and their impacts on our variable interest rate debt; risks associated with the invasion of Ukraine, including economic sanctions, and the conflicts in the Middle East, or additional war, military conflict, or hostilities could adversely affect global metals supply and pricing; risks associated with supply chain disruption resulting from the imbalance of metal supply and end-user demands, including additional shutdowns as a result of infectious disease outbreaks in large markets, such as China, and other factors; 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: supplier consolidation or addition of new capacity; risks associated with 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; our ability to successfully integrate recent acquisitions, including Central Tube and Bar, Inc., or CTB, 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 levels of imported steel in the United States and the tariffs initiated by the U.S. government in 2018 under Section 232 of the Trade Expansion Act of 1962 and imposed tariffs and duties on exported steel or other products, U.S. trade policy and its impact on the U.S. manufacturing industry; 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; 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; 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; 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; cyclicality and volatility within the metals industry; 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; 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; the successes of our efforts and initiatives to improve working capital turnover and cash flows, and achieve cost savings; our ability to generate free cash flow through operations and repay debt; 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; the impacts of union organizing activities and the success of union contract renewals; 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; risks and uncertainties associated with intangible assets, including impairment charges related to indefinite lived intangible 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 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 was founded in 1954 and operates from 47 locations across North America. 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 Nine months ended September 30 September 30 2023 2022 2023 2022 Net sales $ 526,411 $ 634,437 $ 1,668,755 $ 2,039,946 Costs and expenses Cost of materials sold (excludes items shown separately below) 414,480 527,466 1,308,988 1,643,119 Warehouse and processing 28,954 27,397 91,125 79,069 Administrative and general 26,181 26,929 91,047 88,520 Distribution 16,342 15,131 51,531 46,613 Selling 9,587 10,589 30,373 31,905 Occupancy 3,797 3,173 12,452 10,053 Depreciation 5,008 4,062 15,330 12,766 Amortization 1,177 604 3,529 1,828 Total costs and expenses 505,526 615,351 1,604,375 1,913,873 Operating income 20,885 19,086 64,380 126,073 Other loss, net 28 17 67 38 Income before interest and income taxes 20,857 19,069 64,313 126,035 Interest and other expense on debt 3,953 3,007 12,379 7,276 Income before income taxes 16,904 16,062 51,934 118,759 Income tax provision 4,674 4,016 14,813 31,787 Net income $ 12,230 $ 12,046 $ 37,121 $ 86,972 Earnings per share: Net income per share - basic $ 1.06 $ 1.04 $ 3.21 $ 7.53 Weighted average shares outstanding - basic 11,586 11,548 11,568 11,543 Net income per share - diluted $ 1.06 $ 1.04 $ 3.21 $ 7.53 Weighted average shares outstanding - diluted 11,592 11,557 11,571 11,548 Olympic Steel, Inc. Balance Sheets (in thousands) As of September 30, 2023 As ofDecember 31, 2022 Assets Cash and cash equivalents $ 9,091 $ 12,189 Accounts receivable, net 227,847 219,789 Inventories, net (includes LIFO reserves of $17,301 and $20,301 as of September 30, 2023 and December 31, 2022, respectively) 392,354 416,931 Prepaid expenses and other 12,608 9,197 Total current assets 641,900 658,106 Property and equipment, at cost 466,499 429,810 Accumulated depreciation (292,280 ) (281,478 ) Net property and equipment 174,219 148,332 Goodwill 43,690 10,496 Intangible assets, net 84,028 32,035 Other long-term assets 15,425 14,434 Right of use asset, net 33,544 28,224 Total assets $ 992,806 $ 891,627 Liabilities Accounts payable $ 127,671 $ 101,446 Accrued payroll 29,617 40,334 Other accrued liabilities 22,069 16,824 Current portion of lease liabilities 7,015 6,098 Total current liabilities 186,372 164,702 Credit facility revolver 196,527 165,658 Other long-term liabilities 17,531 12,619 Deferred income taxes 15,869 10,025 Lease liabilities 27,186 22,655 Total liabilities 443,485 375,659 Shareholders' Equity Preferred stock - - Common stock 135,981 134,724 Accumulated other comprehensive loss 461 1,311 Retained earnings 412,879 379,933 Total shareholders' equity 549,321 515,968 Total liabilities and shareholders' equity $ 992,806 $ 891,627 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 September 30, Carbon Flat Products Specialty Metals Flat Products Tubular and Pipe Products 2023 2022 2023 2022 2023 2022 Tons sold 1 207,145 203,122 27,936 34,189 N/A N/A Net sales $ 304,478 $ 336,259 $ 132,763 $ 188,301 $ 89,170 $ 109,877 Average selling price per ton 1,470 1,655 4,752 5,508 N/A N/A Cost of materials sold 242,532 293,498 111,622 150,546 60,326 83,422 Gross profit 61,946 42,761 21,141 37,755 28,844 26,455 Operating expenses 51,997 41,029 16,473 22,683 18,811 19,360 Operating income 9,949 1,732 4,668 15,072 10,033 7,095 Depreciation and amortization 3,568 2,513 871 1,024 1,729 1,112 LIFO income / (expense) - - - - 2,000 (1,500 ) Nine months ended September 30, Carbon Flat Products Specialty Metals Flat Products Tubular and Pipe Products 2023 2022 2023 2022 2023 2022 Tons sold 1 651,758 619,809 89,163 111,019 N/A N/A Net sales $ 940,925 $ 1,086,473 $ 446,327 $ 614,744 $ 281,503 $ 338,729 Average selling price per ton 1,444 1,753 5,006 5,537 N/A N/A Cost of materials sold 744,040 931,844 371,935 455,977 193,013 255,298 Gross profit 196,885 154,629 74,392 158,767 88,490 83,431 Operating expenses 166,295 127,404 53,786 73,138 59,345 54,454 Operating income 30,590 27,225 20,606 85,629 29,145 28,977 Depreciation and amortization 10,891 7,885 2,878 3,037 5,038 3,620 LIFO income / (expense) - - - - 3,000 (1,500 ) 1 The Company does not report tons sold for McCullough Industries, EZ Dumper, or Metal-Fab in the Carbon Flat Products Segment, Shaw Stainless in the Specialty Metals Flat Products Segment or the Tubular and Pipe Products Segment. As of September 30, 2023 As of December 31, 2022 Assets Flat-products $ 708,766 $ 631,607 Tubular and pipe products 282,300 258,412 Corporate 1,740 1,608 Total assets $ 992,806 $ 891,627 Other Information (in thousands, except per-share and ratio data) As of September 30, 2023 As of December 31, 2022 Shareholders' equity per share $ 49.34 $ 46.36 Debt to equity ratio 0.36 to 1 0.32 to 1 Nine Months Ended September 30, 2023 2022 Net cash from operating activities $ 120,999 $ 98,300 Cash dividends per share $ 0.38 $ 0.27 View source version on businesswire.com: https://www.businesswire.com/news/home/20231102779305/en/Contacts Richard A. Manson Chief Financial Officer (216) 672-0522 ir@olysteel.com
Diversification and operating disciplines drive performance despite challenging market conditions Central Tube & Bar acquisition in October continues diversification strategy to invest in consistently high-performing businesses Company remains well-positioned to execute on strategy to deliver more consistent results in all environments and drive profitable growth
Olympic Steel, Inc. (Nasdaq: ZEUS), a leading national metals service center, today announced financial results for the three months ended September 30, 2023. Net income for the third quarter totaled $12.2 million, or $1.06 per diluted share, compared with net income of $12.0 million, or $1.04 per diluted share, in the third quarter of 2022. EBITDA for the third quarter of 2023 was $27.1 million, compared with $23.8 million in the third quarter of 2022. Third-quarter 2023 results include $2.0 million of LIFO pretax income and $4.0 million of pretax income from the Employee Retention Credit (under the CARES Act), compared with $1.5 million of LIFO pretax expense in the same period a year ago. The Company 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. “Olympic Steel’s performance in a challenging third-quarter market demonstrates the benefits of our actions to deliver more consistent results in all environments,” said Richard T. Marabito, Chief Executive Officer. “Metal pricing declines accelerated in the back half of the quarter due to added macroeconomic uncertainty, leading to softer-than-anticipated volumes across the industry. Despite these headwinds, all Olympic segments were profitable, led by our Pipe and Tube business, which recorded one of its most profitable quarters ever, and strong results from our Carbon segment.” Marabito continued, “On October 2, 2023, as previously announced, we completed the all-cash acquisition of Central Tube & Bar. The transaction, which marks the Company’s seventh acquisition in the past six years, is our latest strategic investment focused on growing our portfolio of products and services with higher-margin returns. Central Tube & Bar’s historical financial performance has been consistently strong, and we believe its value-added contract manufacturing capabilities, geographic reach in the South-Central United States and complementary culture make the company an excellent fit for our Pipe and Tube business.” Olympic Steel remains well-positioned to continue executing on its growth strategy. Following the Central Tube acquisition, 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. Marabito concluded, “We remain optimistic about the long-term outlook for the U.S. steel market and our business. As we finish another solid year, we are seeing a rebound in pricing. We believe improved market pricing dynamics, continued industrial backlogs and anticipated infrastructure spending, along with our ongoing efforts to invest in higher-return opportunities, will result in profitable growth in 2024.” The Board of Directors approved a regular quarterly cash dividend of $0.125 per share, which is 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. 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 Nine months ended September 30, September 30, 2023 2022 2023 2022 Net income per diluted share (GAAP) $ 1.06 $ 1.04 $ 3.21 $ 7.53 Excluding the following items LIFO (income) / expense (0.13 ) 0.10 (0.19 ) 0.10 Acquisition inventory fair market value adjustment - - 0.13 - Acquisition related expenses - - 0.16 - Gain on sale of warehouse - - - (0.13 ) Employee retention credit (0.25 ) - (0.25 ) - Adjusted net income per diluted share (non-GAAP) $ 0.68 $ 1.14 $ 3.06 $ 7.50 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 Nine Months Ended 9/30/2023 9/30/2022 9/30/2023 9/30/2022 Net income (GAAP): $ 12,230 $ 12,046 $ 37,121 $ 86,972 Excluding the following items Foreign exchange loss included in net income 28 17 67 38 Interest and other expense on debt 3,953 3,007 12,379 7,276 Income tax provision 4,674 4,016 14,813 31,787 Depreciation and amortization 6,185 4,666 18,859 14,594 Earnings before interest, taxes, depreciation and amortization (EBITDA) 27,070 23,752 83,239 140,667 LIFO (income) / expense (2,000 ) 1,500 (3,000 ) 1,500 Acquisition inventory fair market value adjustment - - 2,079 - Acquisition related expenses - - 2,556 - Gain on sale of warehouse - - - (2,083 ) Employee retention credit (4,000 ) - (4,000 ) - Adjusted EBITDA (non-GAAP) $ 21,070 $ 25,252 $ 80,874 $ 140,084 Conference Call and Webcast A simulcast of Olympic Steel’s 2023 third-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 November 3, 2023, 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: risks of falling metals prices and inventory devaluation; supply disruptions and inflationary pressures, including the availability and rising costs of transportation, energy, logistical services and labor; risks associated with shortages of skilled labor, increased labor costs and our ability to attract and retain qualified personnel; rising interest rates and their impacts on our variable interest rate debt; risks associated with the invasion of Ukraine, including economic sanctions, and the conflicts in the Middle East, or additional war, military conflict, or hostilities could adversely affect global metals supply and pricing; risks associated with supply chain disruption resulting from the imbalance of metal supply and end-user demands, including additional shutdowns as a result of infectious disease outbreaks in large markets, such as China, and other factors; 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: supplier consolidation or addition of new capacity; risks associated with 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; our ability to successfully integrate recent acquisitions, including Central Tube and Bar, Inc., or CTB, 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 levels of imported steel in the United States and the tariffs initiated by the U.S. government in 2018 under Section 232 of the Trade Expansion Act of 1962 and imposed tariffs and duties on exported steel or other products, U.S. trade policy and its impact on the U.S. manufacturing industry; 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; 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; 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; 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; cyclicality and volatility within the metals industry; 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; 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; the successes of our efforts and initiatives to improve working capital turnover and cash flows, and achieve cost savings; our ability to generate free cash flow through operations and repay debt; 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; the impacts of union organizing activities and the success of union contract renewals; 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; risks and uncertainties associated with intangible assets, including impairment charges related to indefinite lived intangible 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 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 was founded in 1954 and operates from 47 locations across North America. 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 Nine months ended September 30 September 30 2023 2022 2023 2022 Net sales $ 526,411 $ 634,437 $ 1,668,755 $ 2,039,946 Costs and expenses Cost of materials sold (excludes items shown separately below) 414,480 527,466 1,308,988 1,643,119 Warehouse and processing 28,954 27,397 91,125 79,069 Administrative and general 26,181 26,929 91,047 88,520 Distribution 16,342 15,131 51,531 46,613 Selling 9,587 10,589 30,373 31,905 Occupancy 3,797 3,173 12,452 10,053 Depreciation 5,008 4,062 15,330 12,766 Amortization 1,177 604 3,529 1,828 Total costs and expenses 505,526 615,351 1,604,375 1,913,873 Operating income 20,885 19,086 64,380 126,073 Other loss, net 28 17 67 38 Income before interest and income taxes 20,857 19,069 64,313 126,035 Interest and other expense on debt 3,953 3,007 12,379 7,276 Income before income taxes 16,904 16,062 51,934 118,759 Income tax provision 4,674 4,016 14,813 31,787 Net income $ 12,230 $ 12,046 $ 37,121 $ 86,972 Earnings per share: Net income per share - basic $ 1.06 $ 1.04 $ 3.21 $ 7.53 Weighted average shares outstanding - basic 11,586 11,548 11,568 11,543 Net income per share - diluted $ 1.06 $ 1.04 $ 3.21 $ 7.53 Weighted average shares outstanding - diluted 11,592 11,557 11,571 11,548 Olympic Steel, Inc. Balance Sheets (in thousands) As of September 30, 2023 As ofDecember 31, 2022 Assets Cash and cash equivalents $ 9,091 $ 12,189 Accounts receivable, net 227,847 219,789 Inventories, net (includes LIFO reserves of $17,301 and $20,301 as of September 30, 2023 and December 31, 2022, respectively) 392,354 416,931 Prepaid expenses and other 12,608 9,197 Total current assets 641,900 658,106 Property and equipment, at cost 466,499 429,810 Accumulated depreciation (292,280 ) (281,478 ) Net property and equipment 174,219 148,332 Goodwill 43,690 10,496 Intangible assets, net 84,028 32,035 Other long-term assets 15,425 14,434 Right of use asset, net 33,544 28,224 Total assets $ 992,806 $ 891,627 Liabilities Accounts payable $ 127,671 $ 101,446 Accrued payroll 29,617 40,334 Other accrued liabilities 22,069 16,824 Current portion of lease liabilities 7,015 6,098 Total current liabilities 186,372 164,702 Credit facility revolver 196,527 165,658 Other long-term liabilities 17,531 12,619 Deferred income taxes 15,869 10,025 Lease liabilities 27,186 22,655 Total liabilities 443,485 375,659 Shareholders' Equity Preferred stock - - Common stock 135,981 134,724 Accumulated other comprehensive loss 461 1,311 Retained earnings 412,879 379,933 Total shareholders' equity 549,321 515,968 Total liabilities and shareholders' equity $ 992,806 $ 891,627 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 September 30, Carbon Flat Products Specialty Metals Flat Products Tubular and Pipe Products 2023 2022 2023 2022 2023 2022 Tons sold 1 207,145 203,122 27,936 34,189 N/A N/A Net sales $ 304,478 $ 336,259 $ 132,763 $ 188,301 $ 89,170 $ 109,877 Average selling price per ton 1,470 1,655 4,752 5,508 N/A N/A Cost of materials sold 242,532 293,498 111,622 150,546 60,326 83,422 Gross profit 61,946 42,761 21,141 37,755 28,844 26,455 Operating expenses 51,997 41,029 16,473 22,683 18,811 19,360 Operating income 9,949 1,732 4,668 15,072 10,033 7,095 Depreciation and amortization 3,568 2,513 871 1,024 1,729 1,112 LIFO income / (expense) - - - - 2,000 (1,500 ) Nine months ended September 30, Carbon Flat Products Specialty Metals Flat Products Tubular and Pipe Products 2023 2022 2023 2022 2023 2022 Tons sold 1 651,758 619,809 89,163 111,019 N/A N/A Net sales $ 940,925 $ 1,086,473 $ 446,327 $ 614,744 $ 281,503 $ 338,729 Average selling price per ton 1,444 1,753 5,006 5,537 N/A N/A Cost of materials sold 744,040 931,844 371,935 455,977 193,013 255,298 Gross profit 196,885 154,629 74,392 158,767 88,490 83,431 Operating expenses 166,295 127,404 53,786 73,138 59,345 54,454 Operating income 30,590 27,225 20,606 85,629 29,145 28,977 Depreciation and amortization 10,891 7,885 2,878 3,037 5,038 3,620 LIFO income / (expense) - - - - 3,000 (1,500 ) 1 The Company does not report tons sold for McCullough Industries, EZ Dumper, or Metal-Fab in the Carbon Flat Products Segment, Shaw Stainless in the Specialty Metals Flat Products Segment or the Tubular and Pipe Products Segment. As of September 30, 2023 As of December 31, 2022 Assets Flat-products $ 708,766 $ 631,607 Tubular and pipe products 282,300 258,412 Corporate 1,740 1,608 Total assets $ 992,806 $ 891,627 Other Information (in thousands, except per-share and ratio data) As of September 30, 2023 As of December 31, 2022 Shareholders' equity per share $ 49.34 $ 46.36 Debt to equity ratio 0.36 to 1 0.32 to 1 Nine Months Ended September 30, 2023 2022 Net cash from operating activities $ 120,999 $ 98,300 Cash dividends per share $ 0.38 $ 0.27 View source version on businesswire.com: https://www.businesswire.com/news/home/20231102779305/en/