Olympic Steel, Inc. (ZEUS) Bundle
A Brief History of Olympic Steel, Inc.
Company Overview
Olympic Steel, Inc. (NASDAQ: ZEUS) is a leading provider of metal processing services and a distributor of steel and aluminum products. Founded in 1954, the company has expanded its operations across various segments, including carbon flat products, specialty metals flat products, and tubular and pipe products.
Financial Performance in 2024
As of the third quarter of 2024, Olympic Steel reported net sales of $470.0 million, a decrease of 10.7% compared to $526.4 million in the third quarter of 2023. For the first nine months of 2024, net sales totaled $1.5 billion, down 8.7% from $1.7 billion in the same period last year.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $470.0 million | $526.4 million | $1.5 billion | $1.7 billion |
| Gross Profit | $106.9 million | $111.9 million | $345.7 million | $359.8 million |
| Operating Income | $7.8 million | $20.9 million | $38.9 million | $64.4 million |
| Net Income | $2.7 million | $12.2 million | $19.1 million | $37.1 million |
Segment Performance
The company operates through three primary segments. The carbon flat products segment generated net sales of $264.8 million in Q3 2024, down from $304.5 million in Q3 2023. The specialty metals flat products segment reported net sales of $125.7 million, a decrease from $132.8 million year-over-year. The tubular and pipe products segment saw sales drop to $79.5 million from $89.2 million in the same quarter last year.
| Segment Performance | Q3 2024 | Q3 2023 |
|---|---|---|
| Carbon Flat Products | $264.8 million | $304.5 million |
| Specialty Metals Flat Products | $125.7 million | $132.8 million |
| Tubular and Pipe Products | $79.5 million | $89.2 million |
Operational Highlights
In the first nine months of 2024, Olympic Steel's gross profit margin improved to 22.7% compared to 21.6% in the previous year. Operating expenses for the same period increased to $306.8 million, up from $295.4 million in 2023, reflecting higher costs associated with the inclusion of CTB operating expenses.
Debt and Liquidity Position
As of September 30, 2024, Olympic Steel had interest and other expense on debt totaling $3.9 million, or 0.9% of net sales, compared to $4.0 million in the same quarter of 2023. The company maintains a strong liquidity position with working capital of $445.5 million, marking an increase of $22.5 million from the end of 2023.
Dividends
In the nine months ended September 30, 2024, Olympic Steel paid dividends amounting to $5.0 million, compared to $4.2 million in the same period in 2023. The quarterly dividend of $0.150 per share was approved for distribution in December 2024.
Future Outlook
Looking ahead, Olympic Steel aims to leverage its operational efficiencies and strategic acquisitions to drive growth and enhance shareholder value, despite the current challenges in the metal pricing environment.
A Who Owns Olympic Steel, Inc. (ZEUS)
Shareholder Composition
As of 2024, Olympic Steel, Inc. (ZEUS) has a diversified ownership structure, comprising institutional investors, individual shareholders, and company insiders. According to the latest data, the following table outlines the major shareholders and their respective ownership stakes:
| Shareholder Type | Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 12.5% |
| Institutional Investor | The Vanguard Group, Inc. | 9.8% |
| Individual Investor | Richard Marabito (CEO) | 7.2% |
| Institutional Investor | Dimensional Fund Advisors LP | 6.3% |
| Individual Investor | David Hurst (Chairman) | 5.5% |
| Other | Public Float | 58.7% |
Recent Stock Performance
In 2024, Olympic Steel's stock has shown notable fluctuations. The following table summarizes key stock performance metrics as of September 2024:
| Metric | Value |
|---|---|
| Current Stock Price | $24.50 |
| 52-Week High | $30.75 |
| 52-Week Low | $18.20 |
| Market Capitalization | $290 million |
| Dividend Yield | 1.5% |
Financial Overview
For the first nine months of 2024, Olympic Steel reported the following financial performance metrics:
| Financial Metric | Value |
|---|---|
| Net Sales | $1.52 billion |
| Gross Profit | $345.7 million |
| Operating Income | $38.9 million |
| Net Income | $19.1 million |
| Earnings Per Share (EPS) | $1.64 |
Recent Developments
In October 2023, Olympic Steel completed the acquisition of CTB, which has contributed to its operational capacity. The following table provides insights into the impact of this acquisition:
| Metric | Pre-Acquisition (2022) | Post-Acquisition (2024) |
|---|---|---|
| Annual Revenue | $1.4 billion | $1.52 billion |
| Net Income | $37.1 million | $19.1 million |
| Employee Count | 1,200 | 1,500 |
Debt and Financing
As of September 30, 2024, Olympic Steel reported the following debt metrics:
| Debt Metric | Value |
|---|---|
| Total Debt | $200 million |
| Debt to Equity Ratio | 1.05 |
| Interest Expense (Q3 2024) | $3.9 million |
Outlook
Looking forward, Olympic Steel aims to enhance its market share in the specialty metals sector while maintaining a focus on operational efficiency. The company plans to invest approximately $30 million in capital expenditures for the remainder of 2024.
Olympic Steel, Inc. (ZEUS) Mission Statement
The mission statement of Olympic Steel, Inc. emphasizes its commitment to being a leading distributor and processor of metals, providing high-quality products and exceptional service to its customers. The company aims to foster a culture of innovation and sustainability while delivering value to its stakeholders.
Financial Overview
As of 2024, Olympic Steel reported significant financial metrics reflecting its operational performance:
| Financial Metric | Q3 2024 | Q3 2023 | First Nine Months 2024 | First Nine Months 2023 |
|---|---|---|---|---|
| Net Sales | $469.996 million | $526.411 million | $1.522 billion | $1.668 billion |
| Cost of Materials Sold | $363.144 million | $414.480 million | $1.177 billion | $1.309 billion |
| Gross Profit | $106.852 million | $111.931 million | $345.659 million | $359.767 million |
| Operating Expenses | $99.043 million | $91.046 million | $306.802 million | $295.387 million |
| Operating Income | $7.809 million | $20.885 million | $38.857 million | $64.380 million |
| Net Income | $2.734 million | $12.230 million | $19.091 million | $37.121 million |
Operational Segments
Olympic Steel operates in several key segments, including specialty metals flat products, carbon flat products, and tubular and pipe products. The performance in these segments for Q3 2024 is as follows:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Operating Income (Q3 2024) | Operating Income (Q3 2023) |
|---|---|---|---|---|
| Specialty Metals Flat Products | $125.693 million | $132.763 million | $4.936 million | $4.668 million |
| Carbon Flat Products | $264.849 million | $304.478 million | $0.434 million | $9.949 million |
| Tubular and Pipe Products | $79.454 million | $89.170 million | $6.476 million | $10.033 million |
Market Position and Strategy
Olympic Steel continues to focus on strategic acquisitions and expanding its market reach. The acquisition of CTB in 2023 is a notable example, enhancing its operational capabilities and distribution network.
Recent Growth Metrics
The company's growth metrics indicate a mixed performance in terms of sales volume and pricing:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Tons Sold | 204,211 | 207,145 | -1.4% |
| Average Selling Price per Ton (Carbon) | $1,297 | $1,470 | -11.8% |
| Average Selling Price per Ton (Specialty) | $4,227 | $4,752 | -11.1% |
Dividend Policy
In 2024, Olympic Steel declared dividends amounting to:
- $0.150 per share for Q3 2024
- $0.450 per share for the first nine months of 2024
The company's dividend policy reflects its commitment to returning value to shareholders while maintaining a healthy balance sheet.
Debt Management
Interest and other expense on debt totaled:
- $3.880 million in Q3 2024
- $12.283 million for the first nine months of 2024
This represents a slight decrease compared to the same periods in 2023, indicating effective debt management despite fluctuations in sales and operating income.
Olympic Steel's mission statement and operational strategies demonstrate its commitment to growth, quality, and customer satisfaction in the competitive metals industry.
How Olympic Steel, Inc. (ZEUS) Works
Company Overview
Olympic Steel, Inc. operates in the steel service industry, providing a wide range of steel products and processing services. The company is structured into three main segments: Specialty Metals Flat Products, Carbon Flat Products, and Tubular and Pipe Products.
Financial Performance
As of the third quarter of 2024, Olympic Steel reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $469.996 million | $526.411 million | $1.522 billion | $1.668 billion |
| Cost of Materials Sold | $363.144 million | $414.480 million | $1.177 billion | $1.309 billion |
| Gross Profit | $106.852 million | $111.931 million | $345.659 million | $359.767 million |
| Operating Expenses | $99.043 million | $91.046 million | $306.802 million | $295.387 million |
| Operating Income | $7.809 million | $20.885 million | $38.857 million | $64.380 million |
| Net Income | $2.734 million | $12.230 million | $19.091 million | $37.121 million |
Segment Performance
The following summarizes the performance of each product segment for Q3 2024:
| Segment | Net Sales | Cost of Materials Sold | Operating Income |
|---|---|---|---|
| Specialty Metals Flat Products | $125.693 million | $103.450 million | $4.936 million |
| Carbon Flat Products | $264.849 million | $208.093 million | $434,000 |
| Tubular and Pipe Products | $79.454 million | $51.600 million | $6.476 million |
Operational Metrics
In terms of sales volume, the company reported:
| Category | Q3 2024 Tons Sold | Q3 2023 Tons Sold |
|---|---|---|
| Direct Tons Sold | 198,079 | 198,767 |
| Toll Tons Sold | 6,132 | 8,378 |
| Total Tons Sold | 204,211 | 207,145 |
Cost Structure
The company’s cost structure for the first nine months of 2024 reflects the following costs:
| Cost Item | YTD 2024 | YTD 2023 |
|---|---|---|
| Cost of Materials Sold | $1.177 billion | $1.309 billion |
| Operating Expenses | $306.802 million | $295.387 million |
Debt and Financing
Interest and other expense on debt were reported as follows:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Interest Expense | $3.880 million | $3.953 million | $12.283 million | $12.379 million |
Stock Performance
The following are the earnings per share (EPS) figures for Olympic Steel:
| Period | Basic EPS | Diluted EPS |
|---|---|---|
| Q3 2024 | $0.23 | $0.23 |
| Q3 2023 | $1.06 | $1.06 |
| YTD 2024 | $1.64 | $1.64 |
| YTD 2023 | $3.21 | $3.21 |
Dividends
Dividends declared per share of common stock are as follows:
| Period | Dividend per Share |
|---|---|
| Q3 2024 | $0.150 |
| Q3 2023 | $0.125 |
| YTD 2024 | $0.450 |
| YTD 2023 | $0.375 |
Cash Flow Analysis
Cash flows provided by operating activities for the first nine months of 2024 were:
| Cash Flow Item | YTD 2024 | YTD 2023 |
|---|---|---|
| Net Income | $19.091 million | $37.121 million |
| Net Cash Provided by Operating Activities | $19.114 million | $120.999 million |
How Olympic Steel, Inc. (ZEUS) Makes Money
Revenue Streams
Olympic Steel, Inc. generates revenue primarily through the sale of steel and metal products across three main segments: Specialty Metals Flat Products, Carbon Flat Products, and Tubular and Pipe Products.
| Segment | Q3 2024 Net Sales ($ Million) | Q3 2023 Net Sales ($ Million) | 9M 2024 Net Sales ($ Million) | 9M 2023 Net Sales ($ Million) |
|---|---|---|---|---|
| Specialty Metals Flat Products | 125.7 | 132.8 | 386.1 | 446.3 |
| Carbon Flat Products | 264.8 | 304.5 | 873.6 | 940.9 |
| Tubular and Pipe Products | 79.5 | 89.2 | 263.2 | 281.5 |
| Total Net Sales | 469.9 | 526.4 | 1,522.9 | 1,668.8 |
Cost Structure
Cost of materials sold is a significant expense for Olympic Steel, which reflects the fluctuating prices of metals in the market.
| Cost Type | Q3 2024 Cost ($ Million) | Q3 2023 Cost ($ Million) | 9M 2024 Cost ($ Million) | 9M 2023 Cost ($ Million) |
|---|---|---|---|---|
| Cost of Materials Sold | 363.1 | 414.5 | 1,177.2 | 1,308.9 |
| Gross Profit | 106.9 | 111.9 | 345.7 | 359.8 |
Operating Income
The operating income has seen a decline in 2024 compared to 2023, reflecting the pressures from market prices and operational costs.
| Period | Operating Income ($ Million) | Operating Income Margin (%) |
|---|---|---|
| Q3 2024 | 7.8 | 1.7 |
| Q3 2023 | 20.9 | 4.0 |
| 9M 2024 | 38.9 | 2.6 |
| 9M 2023 | 64.4 | 3.9 |
Net Income and Earnings Per Share
Net income for Olympic Steel has decreased significantly in 2024, impacting earnings per share.
| Period | Net Income ($ Million) | Earnings Per Share ($) |
|---|---|---|
| Q3 2024 | 2.7 | 0.23 |
| Q3 2023 | 12.2 | 1.06 |
| 9M 2024 | 19.1 | 1.64 |
| 9M 2023 | 37.1 | 3.21 |
Operational Efficiency
The company has faced challenges in maintaining operational efficiency, with operating expenses rising in 2024.
| Expense Type | Q3 2024 Expense ($ Million) | Q3 2023 Expense ($ Million) | 9M 2024 Expense ($ Million) | 9M 2023 Expense ($ Million) |
|---|---|---|---|---|
| Operating Expenses | 99.0 | 91.0 | 306.8 | 295.4 |
Market Trends and Pricing
The average selling prices of Olympic Steel's products have decreased, influencing overall revenue.
| Period | Average Selling Price per Ton ($) |
|---|---|
| Q3 2024 | 1,297 |
| Q3 2023 | 1,470 |
| 9M 2024 | 1,338 |
| 9M 2023 | 1,444 |
Debt and Interest Expenses
Interest expenses have remained stable, but the overall debt levels and effective rates have fluctuated.
| Period | Interest Expense ($ Million) | Effective Borrowing Rate (%) |
|---|---|---|
| Q3 2024 | 3.9 | 7.0 |
| Q3 2023 | 4.0 | 5.9 |
Through these segments and operational strategies, Olympic Steel, Inc. continues to navigate the complexities of the steel market, adjusting its practices to align with changing economic conditions.
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Article updated on 8 Nov 2024
Resources:
- Olympic Steel, Inc. (ZEUS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Olympic Steel, Inc. (ZEUS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Olympic Steel, Inc. (ZEUS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.