NANO continues work to expand its intellectual property portfolio New York, N.Y., May 30, 2025 (GLOBE NEWSWIRE) -- NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear” or “the Company”), a leading advanced nuclear energy and technology company, today announced that it has filed six new utility patent applications with the United States Patent and Trademark Office (USPTO) related to its ZEUS™ microreactor. ZEUS™ is being designed as a solid‑core battery reactor with a fully sealed core that uses a highly c ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ____________ Commission File Number 0-23320 OLYMPIC STEEL, INC. (Exact name of registrant as specified in its charter) Ohio 34-1245650 (I.R. ...

Olympic Steel (ZEUS) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Company Participants Richard Manson - CFORichard Marabito - CEOAndrew Greiff - President & COOSamuel McKinney - AVP - Equity ResearchDave Storms - Director of Equity Research Conference Call Participants Christopher Sakai - Analyst Operator Greetings, and welcome to the Olympic Steel twenty twenty five First Quarter Financial Results Conference Call. At this time, all participants are in a listen only mode. A question and answer session wil ...

Olympic Steel (ZEUS) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Company Participants Richard Manson - CFORichard Marabito - CEOAndrew Greiff - President & COOSamuel McKinney - AVP - Equity ResearchDave Storms - Director of Equity Research Conference Call Participants Christopher Sakai - Analyst Operator Greetings, and welcome to the Olympic Steel twenty twenty five First Quarter Financial Results Conference Call. At this time, all participants are in a listen only mode. A question and answer session wil ...

Financial Data and Key Metrics Changes - The company reported first quarter sales of $493 million with net income of $2.5 million, a decrease from $8.7 million in the same period last year [6][18] - EBITDA for the first quarter was $16.1 million compared to $23.3 million in the prior year [18] - Consolidated operating expenses increased to $110.6 million from $103.2 million year-over-year, influenced by the acquisition of Metalworks [19][21] - The effective tax rate for the first quarter was 30.1%, up from 27% in the same period last year [21] Business Segment Data and Key Metrics Changes - The Carbon segment reported EBITDA of $10.9 million, driven by increased shipping volumes and growth in coated carbon steel products [13] - The Pipe and Tube segment delivered EBITDA of $6.4 million, although it experienced slower OEM orders [14] - The Specialty Metals segment reported EBITDA of $3.6 million, with ongoing investments in growth and expansion [14] Market Data and Key Metrics Changes - Hot roll pricing increased by more than 30% during the quarter due to the announced 25% tariffs on steel and aluminum [12] - The company noted that over 90% of its metal supply and nearly all sales are domestically based, positioning it well in the current tariff environment [10] Company Strategy and Development Direction - The company is focused on building a stronger, more resilient Olympic Steel, emphasizing profitable growth through diversification into metal-intensive end markets and expanding fabrication capabilities [6][7] - The commitment to mergers and acquisitions (M&A) remains a key growth strategy, with the recent acquisition of Metalworks proving immediately accretive [7][8] - Ongoing capital investments are planned to enhance throughput and safety, with several new facilities and equipment upgrades expected to come online in the near future [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive profitable growth regardless of market conditions, citing strong operational discipline and effective working capital management [10][11] - The management team highlighted the importance of onshoring opportunities and the potential for growth in the pipe and tube market, particularly in data centers [40] Other Important Information - The company announced a five-year extension of its $625 million asset-based revolving credit facility, providing flexible capital for growth initiatives [10][20] - A quarterly dividend of $0.16 per share was declared, continuing a history of regular dividends since February 2006 [21] Q&A Session Summary Question: How much of the first quarter volume boost is due to pull forward demand? - Management indicated that a significant portion of the volume increase was due to stronger spot sales, with traditional sales being 65% contract and 35% spot [26][28] Question: Expectations for the Pipe and Tube segment's performance? - The Pipe and Tube segment did not see the same sales increase as the Carbon segment, primarily due to its more contractual nature [29][30] Question: Current appetite for M&A and marketplace conditions? - Management confirmed that M&A remains a key growth strategy, with a return of potential sellers observed in April [31][32] Question: Outlook for the Pipe and Tube segment beyond Q2? - Management expects a more traditional year for the Pipe and Tube segment, with growth opportunities in onshoring [40] Question: Thoughts on working capital and inventory management? - The company successfully reduced debt by $37 million in Q1 and expects modest decreases in the following quarters [43][45] Question: Impact of tariffs on M&A strategy? - Management stated that tariffs have not directly impacted M&A strategy, as all acquisitions have been domestic [53][56]

Financial Performance - Net income for Q1 2025 was $2.5 million, or $0.21 per diluted share, down from $8.7 million, or $0.75 per diluted share in Q1 2024[3] - Sales for Q1 2025 totaled $493 million, compared to $527 million in Q1 2024, representing a decrease of approximately 6.4%[4] - EBITDA for Q1 2025 was $16.1 million, down from $23.3 million in Q1 2024[3] - Adjusted net income per diluted share for Q1 2025 was $0.21, unchanged from the GAAP measure, while adjusted EBITDA was $16.1 million compared to $23.7 million in Q1 2024[8][10] Operational Highlights - Flat-rolled shipping levels increased by 24% sequentially from Q4 2024 and 6% year-over-year from Q1 2024, marking the highest levels since Q3 2021[5] - Olympic Steel's latest acquisition, MetalWorks, is performing well and has been immediately accretive to earnings[5] - Capital investments remain on track to enhance throughput, safety, and productivity in upcoming quarters[5] Balance Sheet and Cash Flow - The company reduced its debt by $37 million from year-end levels, supported by strong operating cash flow[5] - Net cash from operating activities was $49,418 thousand in Q1 2025, a significant recovery from a cash used of $(2,608) thousand in Q1 2024[26] - Total assets increased to $1,064,722 thousand as of March 31, 2025, from $1,044,496 thousand as of December 31, 2024, representing a growth of 1.9%[21] - Cash and cash equivalents rose to $13,262 thousand as of March 31, 2025, up from $11,912 thousand as of December 31, 2024, an increase of 11.3%[21] Segment Performance - Net sales for the Specialty Metals Flat Products segment rose to $300,975 thousand in Q1 2025, up from $286,240 thousand in Q1 2024, an increase of 5.9%[23] - Average selling price per ton for Carbon Flat Products increased to $1,370 in Q1 2025, compared to $1,229 in Q1 2024, reflecting a rise of 11.5%[23] - Operating income for the Tubular and Pipe Products segment improved to $7,627 thousand in Q1 2025, up from $4,145 thousand in Q1 2024, marking an increase of 83.5%[23] - Gross profit for the Carbon Flat Products segment was $21,944 thousand in Q1 2025, compared to $20,738 thousand in Q1 2024, reflecting a growth of 5.8%[23] Shareholder Information - A regular quarterly cash dividend of $0.16 per share was approved, payable on June 16, 2025[7] - Shareholders' equity per share decreased slightly to $51.44 as of March 31, 2025, from $51.54 as of December 31, 2024[26] - The debt to equity ratio improved to 0.41 to 1 as of March 31, 2025, down from 0.47 to 1 as of December 31, 2024, indicating a stronger equity position[26] Current Liabilities - Total current liabilities increased to $188,485 thousand as of March 31, 2025, from $132,638 thousand as of December 31, 2024, an increase of 42.1%[21]

Financial Data and Key Metrics Changes - Total sales for 2024 were $1.9 billion, with net income at $23 million and adjusted EBITDA of $72.5 million, reflecting the company's ability to deliver profitable results despite market challenges [11][12][13] - For Q4 2024, net income was $3.9 million compared to $7.4 million in Q4 2023, with adjusted EBITDA at $14.5 million, down from $16.7 million year-over-year but up from $13 million in Q3 2024 [32][33] Business Segment Data and Key Metrics Changes - The carbon segment maintained shipping volumes despite lower OEM demand, achieving $7.2 million in EBITDA for Q4 2024, supported by growth in galvanized products [25] - The pipe and tube segment delivered adjusted EBITDA of $7.2 million, focusing on fabricated product growth [26] - The Specialty Metals segment contributed $4 million of EBITDA, with strong performance in both stainless and aluminum markets [27] Market Data and Key Metrics Changes - The company successfully navigated a challenging metals environment, maintaining shipping volumes within 1% of 2023 levels, outperforming industry shipment levels [10] - The acquisition of Metalworks positively impacted results, enhancing the company's position in manufactured metal products [15][18] Company Strategy and Development Direction - The company is focused on diversification and growth through strategic investments in automation and capacity expansion, with significant projects expected to operationalize in 2025 or early 2026 [14][29] - The board approved a 7% increase in the quarterly dividend, reflecting a commitment to returning capital to shareholders [20][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for the metals industry, emphasizing the importance of remaining nimble and adaptive to market dynamics [21][22] - The company is closely monitoring macroeconomic factors, including tariffs on steel and aluminum, which could impact profitability [21][82] Other Important Information - The company ended Q4 2024 with total debt of approximately $272 million, an increase due to the Metalworks acquisition [35] - Capital expenditures for 2024 totaled $29.5 million, with an expected increase to $35 million in 2025 [36] Q&A Session Summary Question: What drove the impressive gross profit per ton in the carbon flat segment? - Management attributed the increase in gross profit to the expansion of end-use metal products and growth in the fabrication business, which contributed positively to margins [44][47][48] Question: What are the expectations for the pipe and tube segment moving into Q1? - Management indicated that the first quarter is expected to follow traditional patterns, with opportunities for recovery due to new customer acquisitions [49][50] Question: How will the increase in Midwest transaction prices impact the specialty metals segment? - Management noted that most business remains contractual, but the overall growth in the aluminum business is expected to continue [52][54] Question: What synergies are anticipated from the Metalworks acquisition? - Management highlighted integration into the Olympic Steel supply chain and first-stage processing capabilities as key synergies [62][64] Question: How are tariffs expected to affect profitability and M&A valuations? - Management is monitoring the impact of tariffs closely, with expectations for increased transactional pricing and potential M&A activity in the latter half of 2025 [80][84] Question: Will there be an improvement in margins due to increased CapEx? - Management expects that the cumulative spend on new projects will positively impact margins, particularly in 2026 [90]

Financial Performance - Net sales decreased by $216.5 million, or 10.0%, to $1.9 billion in 2024 from $2.2 billion in 2023[203] - Net income decreased to $23.0 million, or $1.97 per share, in 2024 from $44.5 million, or $3.85 per share, in 2023[209] - Operating income fell to $47,859 in 2024, down 38.3% from $77,671 in 2023[303] - Net income decreased to $22,980 in 2024, representing a decline of 48.7% compared to $44,529 in 2023[303] - Cash generated from operations in 2024 was $33.7 million, down from $175.2 million in 2023[237] Sales and Revenue Breakdown - Specialty metals flat products net sales decreased by $70.9 million, or 12.5%, to $496.9 million in 2024, accounting for 25.6% of total net sales[203] - Carbon flat products net sales decreased by $112.0 million, or 9.2%, to $1.1 billion in 2024, representing 57.1% of total net sales[203] - Tubular and pipe products net sales decreased by $33.6 million, or 9.1%, to $335.7 million in 2024, making up 17.3% of total net sales[203] - Net sales in the specialty metals flat products segment decreased by $70.9 million, or 12.5%, to $496.9 million in 2024 from $567.7 million in 2023[213] - Net sales for 2024 were $1,941,672, a decrease of 10.0% from $2,158,163 in 2023[303] Cost and Profitability - Average selling prices decreased by 9.2% in 2024, with an average of $1,837 per ton compared to $2,023 per ton in 2023[203] - Cost of materials sold decreased by $194.2 million, or 11.5%, to $1.5 billion in 2024 from $1.7 billion in 2023[204] - Gross profit as a percentage of net sales increased to 23.2% in 2024 from 21.9% in 2023[205] - Operating income for the carbon flat products segment decreased to $16.4 million, or 1.5% of net sales, in 2024 from $34.6 million, or 2.8% of net sales, in 2023[225] Expenses and Liabilities - Operating expenses increased by $7.5 million, or 1.9%, to $403.3 million in 2024 from $395.8 million in 2023, representing 20.7% of net sales compared to 18.3% in 2023[206] - Total liabilities rose to $470,572 in 2024, an increase of 9.6% from $429,357 in 2023[305] - Interest paid increased to $15,273 in 2024, compared to $14,965 in 2023[311] Acquisitions and Investments - The acquisition of Central Tube and Bar, Inc. on October 2, 2023, expanded the tubular and pipe products segment's geographic footprint and manufacturing capabilities[194] - The company acquired Metal Works for a cash purchase price of $80.0 million on November 11, 2024, incurring $0.2 million in direct acquisition-related costs[351] - The acquisition of CTB on October 2, 2023, involved a total cash consideration of $40.3 million, with a base purchase price of $37.8 million and a working capital adjustment of $2.5 million, alongside $0.9 million in acquisition-related costs[352] - The Company acquired Metal-Fab for $131.2 million on January 3, 2023, which included a base purchase price of $131.0 million and $2.6 million in acquisition-related costs[353] Cash Flow and Liquidity - Total average borrowings decreased by $21.0 million, or 8.8%, to $218.4 million in 2024 from $239.4 million in 2023[207] - Cash generated from financing activities in 2024 was $74.4 million, compared to $16.7 million in 2023, primarily due to $82.3 million of net borrowings under the ABL Credit Facility[240] - The company anticipates sufficient liquidity from its ABL Credit Facility and operations to meet capital requirements over the next 12 months[236] - As of December 31, 2024, the company had $192.8 million of availability under the ABL Credit Facility, with compliance to all covenants[246] Inventory and Assets - As of December 31, 2024, total inventories amounted to $390.6 million, a slight increase from $386.5 million in 2023, with unprocessed inventories at $273.7 million and processed and finished inventories at $117.0 million[371] - The company recorded LIFO income of $5.7 million in 2024 due to decreased metals pricing, compared to $8.3 million in 2023, which positively impacted inventory balance and reduced cost of materials sold[372] - Net property and equipment increased to $203.8 million in 2024 from $186.1 million in 2023, with significant investments in machinery and equipment totaling $275.0 million[376] - Goodwill increased to $83.8 million as of December 31, 2024, from $52.1 million in 2023, primarily due to acquisitions including Metal Works[380] Regulatory and Accounting Changes - The FASB issued ASU No. 2023-09 to improve income tax disclosures, effective for annual periods beginning after December 15, 2024[265] - The FASB issued ASU No. 2023-07 to enhance segment reporting disclosures, effective for annual periods beginning after December 15, 2023[266] Market Conditions and Risks - Inflation has not materially affected financial results in the past three years, but may have a significant impact in future years[254] - The company is exposed to fluctuating metals prices and interest rate changes, impacting net sales and profitability[274] - Rising metals prices result in higher working capital requirements, and some customers may lack sufficient credit lines to absorb significant price increases[271]

Financial Data and Key Metrics Changes - Total sales for 2024 were $1.9 billion, with net income at $23 million and adjusted EBITDA of $72.5 million, reflecting the company's ability to deliver profitable results despite a challenging environment [11][12][13] - For Q4 2024, net income totaled $3.9 million compared to $7.4 million in Q4 2023, with adjusted EBITDA at $14.5 million, down from $16.7 million year-over-year but up from $13 million in Q3 2024 [32][33] Business Segment Data and Key Metrics Changes - The carbon segment maintained shipping volumes despite lower OEM demand, achieving $7.2 million in EBITDA for Q4 2024, supported by a 17% growth in galvanized participation [25] - The pipe and tube segment delivered adjusted EBITDA of $7.2 million, focusing on fabricated product growth [26] - The Specialty Metals segment contributed $4 million of EBITDA, with strong market share gains in stainless and aluminum [27] Market Data and Key Metrics Changes - The company successfully navigated a difficult year for the metals industry, maintaining shipping volumes within 1% of 2023 levels, outperforming industry shipment levels [10] - The Purchasing Managers' Index for manufacturing was below 50 for eleven of the twelve months in 2024, indicating a challenging demand environment [10] Company Strategy and Development Direction - The company is focused on diversification and growth through strategic investments in automation and capacity expansion, with significant projects expected to become operational in 2025 or early 2026 [14][29] - The acquisition of Metalworks is part of the company's strategy to enhance its position in manufactured metal products and is expected to be accretive [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for the metals industry, emphasizing the importance of remaining nimble and adaptive to market dynamics [21][22] - The company plans to continue investing in automation, product diversity, and quality solutions for customers [22] Other Important Information - The board approved a 7% increase in the quarterly dividend, raising it from $0.15 to $0.16 per share, marking the fourth dividend increase since 2022 [20][37] - The company ended Q4 2024 with total debt of approximately $272 million, an increase due to the Metalworks acquisition [35] Q&A Session Summary Question: What drove the increase in gross profit per ton in the carbon flat segment? - Management attributed the increase to the expansion of end-use metal products and a concerted effort in growing the fabrication business, which contributed positively to margins [44][47][48] Question: What are the expectations for the pipe and tube segment moving into Q1? - Management indicated that the first quarter is expected to be traditional, with opportunities for recovery due to new customers acquired at the end of 2024 [50] Question: How will the tariffs affect profitability and M&A valuations? - Management noted that the tariffs could impact profitability in Q1 and that they anticipate more activity in the M&A market as conditions improve in the back half of 2025 [84][86] Question: What is the outlook for capital expenditures and margins? - Management expects capital expenditures to increase in 2025, with a positive impact on margins anticipated in 2026 as new projects come online [90] Question: What contributed to the decrease in selling and general expenses? - The decrease was primarily due to $1.8 million less in variable incentive expenses tied to profitability, reflecting the lower performance in Q4 2024 compared to the previous year [92]

Financial Performance - Fourth quarter 2024 net income was $3.9 million, or $0.33 per diluted share, down from $7.4 million, or $0.64 per diluted share in Q4 2023[2] - Adjusted EBITDA for Q4 2024 was $14.5 million, sequentially higher than Q3 2024, compared to $16.7 million in Q4 2023[2] - Total sales for Q4 2024 were $419 million, a decrease from $489 million in Q4 2023[2] - Full-year 2024 net income totaled $23.0 million, or $1.97 per diluted share, compared to $44.5 million, or $3.85 per diluted share in 2023[3] - Full-year 2024 adjusted EBITDA was $72.5 million, down from $97.6 million in 2023[3] - Total sales for 2024 were $1.9 billion, compared to $2.2 billion in 2023[3] - Net income for the twelve months ended December 31, 2024, was $22.980 million, down 48.7% from $44.529 million in 2023[16] - The company reported a decrease in operating income for the three months ended December 31, 2024, to $9.002 million, a decline of 32.4% from $13.291 million in 2023[16] Acquisitions and Growth Strategy - The company completed its eighth acquisition in seven years, acquiring Metal Works, a leading metal canopy manufacturer[4] - The company plans to continue investing in organic growth opportunities and additional acquisitions to enhance higher-value product offerings[5] - Each segment achieved positive EBITDA in every quarter of 2024, demonstrating the success of the company's diversification strategy[4] Dividends and Shareholder Returns - The Board of Directors approved a quarterly dividend increase of 7% from $0.15 to $0.16 per share, marking the fourth increase since 2022[5] - Cash dividends per share increased to $0.60 for the twelve months ended December 31, 2024, up from $0.50 in 2023[23] Asset and Liability Management - Total assets increased to $1,044.496 million as of December 31, 2024, compared to $984.835 million as of December 31, 2023[18] - The debt to equity ratio rose to 0.47 to 1 as of December 31, 2024, compared to 0.34 to 1 in 2023[23] - The company’s total current liabilities decreased to $132.638 million as of December 31, 2024, from $180.237 million in 2023[18] - Goodwill increased to $83.818 million as of December 31, 2024, compared to $52.091 million in 2023, indicating potential acquisitions or investments[18] Product Performance - The average selling price per ton for Carbon Flat Products decreased to $1,261 in Q4 2024 from $1,384 in Q4 2023, a decline of 8.9%[20] - Gross profit for Carbon Flat Products in Q4 2024 was $58.635 million, down 3.2% from $60.542 million in Q4 2023[20]