Company Overview - The company operates in three reportable segments: specialty metals flat products, carbon flat products, and tubular and pipe products[95]. - At June 30, 2023, the company employed approximately 2,038 people, with 203 hourly plant personnel represented by collective bargaining units[98]. - The company has 36 strategically-located processing and distribution facilities in the U.S. and one in Monterrey, Mexico, allowing for regional and national customer focus[106]. Product Offerings - The carbon flat products segment expanded its offerings with the acquisition of Metal-Fab on January 3, 2023, adding venting, micro air, and clean air products[104]. - The specialty metals flat products segment has enhanced its product offerings through recent acquisitions, including stainless steel and aluminum products[95]. - Approximately 51% of consolidated net sales during the first six months of 2023 were directly related to industrial machinery and equipment manufacturers[174]. Financial Performance - Net sales decreased by $140 million, or 19.7%, to $569.3 million in Q2 2023 from $709.2 million in Q2 2022, with a consolidated 21.0% decrease in average selling prices[113]. - Net sales for the first six months of 2023 decreased by $263 million, or 18.7%, to $1.1 billion from $1.4 billion in the first six months of 2022[114]. - Specialty metals flat products segment net sales decreased by $80 million, or 35.2%, to $147 million in Q2 2023, driven by a 25.2% decrease in sales volume[127]. - Net income for Q2 2023 totaled $15.0 million, or $1.30 per share, compared to $37.6 million, or $3.26 per share, in Q2 2022[122]. Cost and Profitability - The gross profit as a percentage of net sales is generally higher in the carbon flat products and tubular and pipe products segments compared to the specialty metals flat products segment[102]. - Gross profit as a percentage of net sales increased to 22.4% in Q2 2023 from 21.0% in Q2 2022, attributed to a decrease in average cost of inventory[116]. - Operating income for Q2 2023 was $25.8 million, down from $53.9 million in Q2 2022, reflecting the impact of lower sales and increased operating expenses[111]. - Gross profit as a percentage of net sales decreased to 16.6% in Q2 2023 from 27.5% in Q2 2022, and to 17.0% in the first six months of 2023 from 28.4% in the same period of 2022[130]. Expenses and Costs - Operating expenses increased by $6.9 million, or 7.2%, to $101.6 million in Q2 2023, with operating expenses as a percentage of net sales rising to 17.9% from 13.4% in Q2 2022[117]. - Cost of materials sold decreased by $119 million, or 21.2%, to $441.9 million in Q2 2023, reflecting lower metals pricing[115]. - Cost of materials sold in the specialty metals flat products segment decreased by $41.8 million, or 25.4%, to $122.6 million in Q2 2023 from $164.4 million in Q2 2022[129]. Liquidity and Capital Resources - Liquidity and capital resources are primarily funded through cash generated from operations and borrowings under the ABL Credit Facility[149]. - For the six months ended June 30, 2023, the company generated $79.2 million of net cash from operations, an increase of 66.2% compared to $47.7 million for the same period in 2022[151]. - Net cash from operating activities for the first six months of 2023 was $45.8 million, primarily driven by net income of $24.9 million and non-cash depreciation and amortization of $13.0 million[152]. - Working capital as of June 30, 2023, totaled $481.8 million, reflecting a decrease of $11.6 million from December 31, 2022, primarily due to a $28.2 million decrease in inventories[153]. Investment and Financing Activities - Net cash used for investing activities was $144.5 million for the six months ended June 30, 2023, significantly higher than $6.7 million for the same period in 2022, mainly due to the $129.5 million acquisition of Metal-Fab[154]. - The company generated $68.3 million from financing activities in the first six months of 2023, primarily from $72.6 million of net borrowings under the ABL Credit Facility[157]. - Dividends paid increased to $2.8 million for the six months ended June 30, 2023, compared to $2.0 million for the same period in 2022[158]. - As of June 30, 2023, the company had approximately $343 million of availability under the ABL Credit Facility, which was increased to $625 million following an amendment[166][162]. Risk Factors - The company faces risks from supply chain disruptions, rising interest rates, and inflationary pressures that could impact financial performance[93]. - The company does not have long-term, fixed-price metals purchase contracts, which exposes it to market price fluctuations[97]. - The company entered into a five-year fixed rate interest rate hedge to manage interest rate risk, with the fixed rate updated to 2.42% as of January 3, 2023[177].

Financial Data and Key Metrics Changes - Olympic Steel reported second quarter sales of $569 million, net income of $15 million, and adjusted EBITDA of $31.2 million, indicating a decline from $37.6 million in net income and $58.8 million in adjusted EBITDA in the same quarter of 2022 [6][22]. - Consolidated operating expenses totaled $101.6 million, up from $94.8 million year-over-year, with operating expenses as a percentage of sales increasing to 17.9% from 13.4% [23][24]. - The company reduced debt by $21 million during the quarter, bringing total debt to $238 million, with cumulative debt reduction of $59 million since the Metal-Fab acquisition [25][11]. Business Line Data and Key Metrics Changes - The Carbon segment generated $18.4 million of adjusted EBITDA, benefiting from the integration of the Metal-Fab acquisition [15]. - The Pipe and Tube segment achieved adjusted EBITDA of $10.1 million, marking its fourth strongest quarter of profitability, driven by margin improvement and demand for value-added processing [16]. - Specialty Metals earned $7.7 million of adjusted EBITDA despite facing soft market conditions [17]. Market Data and Key Metrics Changes - The company faced a 24% decline in hot-rolled index pricing and a 10% reduction in Grade 304 surcharges, impacting the carbon steel market [7][12]. - Demand from OEMs is expected to remain steady in the third quarter, with a solid outlook for the domestic steel market supported by government spending and tariffs [12][13]. Company Strategy and Development Direction - Olympic Steel continues to focus on diversification and investments in enhanced processing capabilities, with plans to expand into higher-return value-added products [10][28]. - The company is optimistic about the future of the domestic metals industry and aims to reduce the impact of market cyclicality on its business [13][29]. - Capital expenditures for 2023 are estimated to be in the $30 million range, with ongoing investments in automation and safety [26][20]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent results despite market challenges, highlighting the successful integration of Metal-Fab and ongoing capital projects [8][21]. - The effective tax rate increased to 30.3% due to higher Mexican transactional sales, with expectations for the rate to approximate 28% to 29% for the remainder of 2023 [27]. Other Important Information - The company continues to pay a quarterly dividend of $0.125 per share, maintaining a record of 73 consecutive quarters of dividend payments [11][28]. - The new fabrication facility in Bartlett, Illinois is expected to be fully operational by the end of the third quarter, enhancing capacity for carbon and white metals fabrication [9][18]. Q&A Session Summary Question: Regarding the strong margins in the pipe and tube segment - Management indicated that margins are expected to continue improving, with value-added processing representing 34% to 35% of sales, aiming for closer to 40% by year-end [30]. Question: On carbon flat segment pricing outlook - Management noted that while lead times remain steady, pricing may face challenges due to increased capacity, but overall consistency is expected [31]. Question: Impact of falling inventory levels in specialty metals - Management acknowledged that inventory levels are higher than desired, with import pressures affecting the market, but demand remains relatively flat [32]. Question: Changes in revenue composition due to diversification efforts - Management confirmed that the increase in carbon flat products' revenue share is partly due to the Metal-Fab acquisition and slower stainless sales industry-wide [35]. Question: Seasonal factors expected in the second half of 2023 - Management anticipates typical seasonal declines of 3% to 5% in Q3 due to fewer effective shipping days [37]. Question: Labor market conditions and hiring challenges - Management reported some relief in hiring conditions compared to previous years, but low unemployment remains a challenge [38]. Question: Demand and material costs in specialty metals flat - Management indicated that nickel prices are stable, with expectations for steady pricing in the specialty metals segment for the remainder of the year [40][41]. Question: Opportunities in fabrication - Management highlighted the growing demand for value-added and fabricated parts, emphasizing ongoing investments in downstream equipment and the creation of new leadership roles to drive growth [42][43].

Investor Presentation May 2023 Forward-Looking Statements 2 | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------------------------------|-------| | | | | Statements contained in this presentation that are not historical facts are forward-looking statements, which involve risks and uncertainties that | | | could cause actual results to differ materially from those expressed in the | | | forward-looking statements. Such fo ...

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, 2023 ☐ 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 | | --- | --- | | ( ...

Financial Data and Key Metrics Changes - Olympic Steel reported sales of $573 million for Q1 2023, with adjusted EBITDA of $28.6 million, reflecting a steady customer demand and a 3% increase in metal distribution shipments year-over-year, and a significant 15% increase from the previous quarter [7] - Net income for the quarter totaled $9.8 million, a decrease from $37.3 million in Q1 2022, with no LIFO adjustment recorded for either quarter [22] - Total debt at the end of Q1 was $258 million, an increase of $93 million since year-end 2022, primarily due to the $131 million acquisition of Metal Fab [23] Business Segment Performance - The Carbon segment contributed adjusted EBITDA of $11.6 million, with shipments rising 6% year-over-year, excluding Metal Fab [15] - The Pipe and Tube segment had its second most profitable quarter ever, contributing EBITDA of $11.3 million, driven by margin improvement and fabricated product growth [16] - Specialty Metals earned EBITDA of $10.2 million despite facing industry-wide stainless steel headwinds, with a focus on organic growth in aluminum [18] Market Data and Key Metrics Changes - Hot rolled index pricing increased by 74% from the beginning of 2023, following six months of declining steel prices [8] - Demand from industrial OEMs remained steady, with expectations for Q2 to mirror Q1 performance, particularly in the Food Equipment and Appliance segments [13][19] Company Strategy and Industry Competition - The acquisition of Metal Fab in January 2023 was highlighted as a significant step in diversifying and strengthening the company, broadening product offerings and geographic reach [9][10] - The company is well-positioned to pursue additional acquisition opportunities, supported by a strong balance sheet and increased credit availability [12][20] - The company continues to focus on strategic acquisitions as a growth driver, alongside organic growth initiatives [45][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged an unsettled near-term macroeconomic picture but expressed confidence in the company's resilience and ability to navigate market cyclicality [13] - The second quarter is expected to reflect the full strength of Metal Fab's earnings, with synergies anticipated in the second half of 2023 [22][28] Other Important Information - Capital expenditures for Q1 2023 totaled $7.4 million, with expectations for total capital expenditures in 2023 to reach $30 million [26] - The company increased its quarterly dividend by 39% to $0.125 per share, maintaining a consistent dividend payment record for 72 consecutive quarters [27] Q&A Session Summary Question: Expectations for pricing for carbon in Q2 - Management anticipates some softness in pricing but expects margins to hold through Q2 due to a lag in contract pricing [30] Question: Specialty metals dynamics in Q1 and expectations for Q2 - Management noted high inventory levels at service centers but expects volume to improve in Q2 due to customer demand from food equipment and truck trailer sectors [32] Question: Impact of Metal Fab earnings and synergies - Management indicated that the second quarter will not include onetime charges from the acquisition, leading to improved financial results [34][35] Question: Expansion in Iowa and associated downtime - Management confirmed that the expansion will not cause any downtime and is expected to be operational by year-end [37] Question: Industry-wide capacity outlook - Management expects more product availability in the second half of the year, with domestic mills performing well [41] Question: Margin expansion in pipe and tube - Management attributed margin expansion to investments in fabrication capabilities and growth in the stainless portion of the business [44] Question: Appetite for more acquisitions - Management confirmed ongoing interest in strategic acquisitions, supported by a strong balance sheet and record availability [46]

[Part I](index=5&type=section&id=Part%20I) [Business Overview](index=5&type=section&id=Item%201.%20Business) **Olympic Steel** is a leading U.S. **metals service center** operating in **three segments**, focusing on **value-added processing** and **distribution**, with growth driven by **strategic acquisitions** - The company operates through **three reportable segments**: **specialty metals flat products**, **carbon flat products**, and **tubular and pipe products**[15](index=15&type=chunk) - **Strategic growth** is a key focus, achieved through **acquisitions** (e.g., **Shaw Stainless**, **Action Stainless**, **Metal-Fab**), investments in higher **value-added processing equipment**, and expansion of product offerings[21](index=21&type=chunk)[24](index=24&type=chunk)[28](index=28&type=chunk) - The company serves a diverse customer base, with the **industrial machinery and equipment sector** being the largest, accounting for **52%** of **net sales** in 2022[49](index=49&type=chunk)[51](index=51&type=chunk) - **Olympic Steel** relies on a **concentrated supplier base**, with its **top three suppliers** accounting for approximately **39%** of total metal purchases in 2022[58](index=58&type=chunk) Net Sales by Industry (2020-2022) | Industry | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Industrial machinery and equipment manufacturers and their fabricators | 52% | 47% | 47% | | Metals service centers | 9% | 11% | 11% | | Residential and commercial construction | 7% | 8% | 8% | | Automobile manufacturers and their suppliers | 2% | 7% | 7% | | Transportation equipment manufacturers | 8% | 6% | 6% | | All others <5% | 22% | 21% | 21% | [Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) The company faces key risks from **volatile metals prices**, **supply chain disruptions**, **transportation** and **labor dependency**, **cyclical customer industries**, **variable rate debt**, and **regulatory changes** - **Volatile metals prices** are a **primary risk**, affecting sales, gross profit, and **inventory valuation**; declining prices can lead to lower sale prices and inventory write-downs[87](index=87&type=chunk)[88](index=88&type=chunk) - The business is dependent on **transportation and skilled labor**; increased costs or decreased availability in these areas could adversely affect operations and profitability[89](index=89&type=chunk)[91](index=91&type=chunk) - **Supply chain disruptions**, **inflationary pressures**, and reliance on a **concentrated number of suppliers** (**top three** provided **39%** of metals in 2022) pose significant operational risks[96](index=96&type=chunk)[100](index=100&type=chunk) - The company is exposed to risks from its **variable rate debt**, with a **100 basis point** increase in interest rates projected to increase annual **interest expense** by approximately **$0.9 million**[124](index=124&type=chunk) - **Government actions**, such as the imposition or removal of **tariffs and quotas** on steel and aluminum, can cause significant fluctuations in operating results[127](index=127&type=chunk) [Properties](index=27&type=section&id=Item%202.%20Properties) The company operates numerous **strategically located processing**, **distribution**, and **manufacturing facilities** across the U.S. and Mexico, with most key facilities owned - The company's facilities are **strategically situated** in major metals consumption markets, with most customers located within a **250-mile radius** of a processing facility[145](index=145&type=chunk) - The company **owns and leases** a wide range of properties for **corporate offices**, **coil and plate processing**, **fabrication**, and **distribution**, servicing its **three business segments**[146](index=146&type=chunk)[148](index=148&type=chunk) - A warehouse in Cleveland, Ohio is leased from an entity in which the **Executive Chairman of the Board** owns a **50%** interest; the lease expires on December 31, 2023, with renewal options[149](index=149&type=chunk)[351](index=351&type=chunk) [Executive Officers](index=31&type=section&id=Information%20About%20Our%20Executive%20Officers) An experienced executive team, including **Michael D. Siegal** as **Executive Chairman** and **Richard T. Marabito** as **CEO**, leads the company with extensive industry tenure - **Michael D. Siegal** serves as **Executive Chairman of the Board**, having previously been **CEO** from 1984 to 2018[153](index=153&type=chunk) - **Richard T. Marabito** has been the **Chief Executive Officer** since January 2019, previously serving as **CFO** since 2000[154](index=154&type=chunk) - **Richard A. Manson** has served as **Chief Financial Officer** since January 2019, having been with the company since 1996 in various roles[155](index=155&type=chunk) - **Andrew S. Greiff** has served as **President and Chief Operating Officer** since January 2020, having joined the company in 2009[156](index=156&type=chunk) [Part II](index=32&type=section&id=Part%20II) [Common Stock and Shareholder Matters](index=32&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) **Olympic Steel's** common stock trades on **Nasdaq** under **ZEUS**, with regular **quarterly dividends** and an active **stock repurchase program** - The company's **common stock** trades on the **Nasdaq Global Select Market** under the symbol "**ZEUS**"[159](index=159&type=chunk) - **Regular quarterly dividends** are expected to continue; dividends declared were **$0.36 per share** in 2022, a significant increase from **$0.08 per share** in 2021[160](index=160&type=chunk)[284](index=284&type=chunk) - A **stock repurchase program** is authorized for up to **550,000 shares**; as of December 31, 2022, **360,212 shares** remain authorized for repurchase, with no shares purchased in Q4 2022[161](index=161&type=chunk)[162](index=162&type=chunk) [Management's Discussion and Analysis (MD&A)](index=34&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The **MD&A** reviews **2022 financial performance**, highlighting **sales growth**, **net income decline**, **margin compression**, strong **cash flow**, and **debt reduction** [Consolidated Results of Operations](index=37&type=section&id=Consolidated%20Operations) **Consolidated net sales** increased **10.7%** to **$2.6 billion** in 2022 due to higher prices, but **gross profit margin** declined to **19.0%**, leading to a **24.9%** decrease in **net income** Consolidated Financial Highlights (2022 vs. 2021) | Metric (in thousands) | 2022 | 2021 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $2,559,990 | $2,312,253 | $247,737 | 10.7% | | Gross Profit | $486,060 | $510,201 | ($24,141) | -4.7% | | Gross Margin | 19.0% | 22.1% | -3.1 p.p. | - | | Operating Income | $133,747 | $172,466 | ($38,719) | -22.4% | | Net Income | $90,931 | $121,051 | ($30,120) | -24.9% | - The increase in **net sales** was driven by a **26.0%** increase in consolidated **average selling prices**, which rose to **$2,448 per ton** in 2022 from **$1,942 per ton** in 2021[185](index=185&type=chunk) - **Gross profit margin** decreased from **22.1%** to **19.0%** due to the **average cost of inventory** increasing more rapidly than **average selling prices**[187](index=187&type=chunk) - **Net income** for 2022 was **$90.9 million**, or **$7.87 per diluted share**, compared to **$121.1 million**, or **$10.52 per diluted share**, in 2021[191](index=191&type=chunk) [Segment Results of Operations](index=38&type=section&id=Segment%20Results%20of%20Operations) **Specialty Metals** saw **operating income** rise, while **Carbon Flat Products** experienced a sharp decline, and **Tubular and Pipe Products** significantly increased **operating income** Specialty Metals Flat Products Performance (2022 vs. 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Sales | $776.0M | $585.8M | | Tons Sold | 142,092 | 157,807 | | Avg. Selling Price/ton | $5,461 | $3,712 | | Operating Income | $93.7M | $70.5M | Carbon Flat Products Performance (2022 vs. 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Sales | $1,356.6M | $1,344.2M | | Tons Sold | 806,919 | 921,295 | | Gross Profit % | 14.2% | 21.2% | | Operating Income | $25.0M | $110.1M | Tubular and Pipe Products Performance (2022 vs. 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Sales | $427.4M | $382.4M | | LIFO Expense | $0.6M | $21.9M | | Gross Profit % | 25.1% | 21.4% | | Operating Income | $34.9M | $7.4M | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity,%20Capital%20Resources%20and%20Cash%20Flows) Strong **cash from operations** of **$185.9 million** in 2022 significantly improved **liquidity** and enabled **debt reduction**, with the **Metal-Fab** acquisition in 2023 funded by an expanded **credit facility** - Generated **$185.9 million** of **cash from operations** in 2022, compared to using **$146.4 million** in 2021; the improvement was largely due to a **$71.7 million** decrease in **working capital**[218](index=218&type=chunk)[219](index=219&type=chunk) - Used **cash from operations** for **net repayments** of **$162.1 million** under the **ABL Credit Facility** during 2022[221](index=221&type=chunk) - As of December 31, 2022, the company had **$165.7 million** in **borrowings outstanding** and approximately **$305.6 million** of availability under its **ABL Credit Facility**[229](index=229&type=chunk)[356](index=356&type=chunk) - In January 2023, the company acquired **Metal-Fab** for **$131.0 million**, funded by borrowings under its **ABL Credit Facility**, which was increased from **$475 million** to **$625 million** to support the transaction[223](index=223&type=chunk)[405](index=405&type=chunk) [Market Risk Disclosures](index=46&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include **volatile metals prices** impacting **profitability** and **inventory valuation**, and **fluctuating interest rates** on **variable-rate debt**, partially mitigated by an **interest rate swap** - The company is exposed to **market risk** from **volatile metals prices**, which can significantly affect **net sales**, **gross profits**, and **inventory valuation**[249](index=249&type=chunk)[250](index=250&type=chunk) - The primary **interest rate risk exposure** is from **variable rate debt**; a **100 basis point** (**1.0%**) increase in rates from December 31, 2022 levels would increase annual **interest expense** by approximately **$0.9 million**[255](index=255&type=chunk) - The company utilizes a **five-year interest rate swap** to fix the interest rate at **2.567%** on **$75 million** of its **revolving debt**, mitigating some of its exposure to rising rates[256](index=256&type=chunk) [Financial Statements and Supplementary Data](index=47&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The **consolidated financial statements** for 2022 received an **unqualified opinion** from **Grant Thornton LLP**, with **Inventory Valuation** noted as a **critical audit matter**, and key financial results detailed - The independent registered public accounting firm, **Grant Thornton LLP**, issued an **unqualified opinion** on the **consolidated financial statements** and the effectiveness of **internal control over financial reporting**[261](index=261&type=chunk)[271](index=271&type=chunk) - The **critical audit matter** identified by the auditor was **Inventory Valuation**, due to the subjective judgment required in estimating **net realizable value**, which is affected by future economic and market conditions[266](index=266&type=chunk)[267](index=267&type=chunk) Key Financial Statement Data (in thousands) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Income Statement** | | | | | Net Sales | $2,559,990 | $2,312,253 | $1,234,144 | | Net Income (Loss) | $90,931 | $121,051 | $(5,595) | | **Balance Sheet (Year-End)** | | | | | Total Assets | $891,627 | $1,023,572 | N/A | | Total Liabilities | $375,659 | $599,133 | N/A | | Total Shareholders' Equity | $515,968 | $424,439 | N/A | | **Cash Flow Statement** | | | | | Net Cash from Operating Activities | $185,853 | $(146,374) | $61,652 | [Controls and Procedures](index=80&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that **disclosure controls** and **internal control over financial reporting** were **effective** as of December 31, 2022, with **no material changes** during Q4 - The **CEO** and **CFO** concluded that the company's **disclosure controls and procedures** were **effective** as of December 31, 2022[411](index=411&type=chunk) - Management's assessment concluded that **internal control over financial reporting** was **effective** as of December 31, 2022, based on the **COSO framework**; this assessment was audited by **Grant Thornton LLP**[280](index=280&type=chunk)[412](index=412&type=chunk) - **No changes** in **internal control over financial reporting** occurred during the fourth quarter of 2022 that materially affected, or are reasonably likely to materially affect, these controls[413](index=413&type=chunk) [Part III](index=81&type=section&id=Part%20III) [Directors, Executive Compensation, and Corporate Governance](index=81&type=section&id=Items%2010-14) Information for these items is **incorporated by reference** from the **2023 Annual Meeting of Shareholders** **definitive proxy statement**, with executive officer details in Part I - Information regarding **Directors**, **Executive Compensation**, **Security Ownership**, **Certain Relationships and Related Transactions**, and **Principal Accountant Fees and Services** is **incorporated by reference** from the **definitive proxy statement** for the **2023 Annual Meeting of Shareholders**[418](index=418&type=chunk)[419](index=419&type=chunk)[420](index=420&type=chunk) [Part IV](index=82&type=section&id=Part%20IV) [Exhibits and Financial Statement Schedules](index=82&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all filed **financial statements**, **schedules**, and **exhibits**, including agreements for the **Metal-Fab acquisition** and **loan facility amendments** - The filing includes the **Consolidated Financial Statements** and **Schedule II – Valuation and Qualifying Accounts**[425](index=425&type=chunk)[426](index=426&type=chunk) - Key exhibits filed include the **Stock Purchase Agreement** for the **Metal-Fab acquisition** (Exhibit 2.2) and the **Joinder and Sixth Amendment** to the **Loan and Security Agreement** (Exhibit 4.32), which increased the **credit facility** and updated the reference rate to **SOFR**[428](index=428&type=chunk)[429](index=429&type=chunk)

Financial Data and Key Metrics Changes - For Q4 2022, net income totaled $4 million, a decrease from $24.9 million in Q4 2021. Adjusted EBITDA was $11.9 million for the quarter and $152 million for the full year, marking 2022 as the second most profitable year in the company's history [32][41] - Total debt decreased by $162 million, or almost 50%, to $166 million at year-end 2022, including a $78 million reduction during Q4 [33][36] - Consolidated operating expenses for Q4 totaled $81.6 million, a decrease of $8.9 million or 9.9% from the prior year quarter [36] Business Segment Performance - The Specialty Metals segment contributed EBITDA of $9.1 million in Q4 2022, achieving record earnings despite a decline in nickel surcharge and increased stainless steel coil imports [26] - The Pipe and Tube segment contributed adjusted EBITDA of $6.3 million in Q4 2022, also achieving record earnings [28] - The Carbon segment contributed $600,000 of EBITDA for the quarter, achieving positive EBITDA despite significant price declines [29] Market Data and Key Metrics Changes - The hot-rolled index pricing fell 59% from May 2022 to December 2022, marking the steepest drop ever in carbon pricing [20] - The stainless steel surcharge for grade 304 dropped 42% from April to November 2022 [21] Company Strategy and Industry Competition - The company has focused on diversifying into higher return products and services through acquisitions and organic investments, while divesting assets that do not align with its vision [10] - The acquisition of Metal-Fab in January 2023 is expected to accelerate growth in target market segments and provide operational synergies [22][39] - The company aims to remain acquisitive and is actively looking for opportunities to grow in high return products, particularly in the Southwest and aluminum sectors [60][62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding steady demand from industrial OEMs, with expectations for continued stability throughout 2023 [46] - The company anticipates being an indirect beneficiary of increased infrastructure spending, which is expected to positively impact the steel industry [30] - Management noted that inflationary pressures remain, but the rate of inflation appears to be decreasing [52] Other Important Information - The company published its first Corporate Responsibility Report and advanced its diversity, equity, and inclusion plan [15] - A 39% increase in the regular quarterly cash dividend to $0.15 was approved by the Board of Directors [41] Q&A Session Summary Question: Demand from major industrial OEMs - Management noted steady demand from industrial OEMs, with good backlogs despite supply chain challenges [46] Question: Pricing outlook in the first quarter - Management indicated that there will be a lag in contractual pricing adjustments, but spot prices have started to rise recently [47] Question: Strategy for managing debt levels in 2023 - Management stated that debt reduction is expected in the second half of 2023, depending on metal pricing trends [50] Question: Transportation costs and inflation - Management confirmed that transportation costs remain a pressure point, but there is optimism for a decrease in diesel prices [56] Question: Gross margin improvement in Tubular and Pipe Products - Management explained that the improvement was influenced by a significant LIFO expense in Q4 2021 compared to a LIFO income in Q4 2022 [58] Question: Future acquisitions and valuations - Management confirmed that they are actively looking for acquisitions, with typical valuations in the 7 to 8 times EBITDA range [64]

Olympic Steel, Inc. (NASDAQ:ZEUS) Q3 2022 Earnings Conference Call November 4, 2022 11:00 AM ET Company Participants Rich Manson - Chief Financial Officer Rick Marabito - Chief Executive Officer Andrew Greiff - President & Chief Operating Officer Conference Call Participants Dave Storms - Stonegate Alan Weber - Robotti Advisors Chris Sakai - Singular Research Operator Good morning, and welcome to the Olympic Steel 2022 Third Quarter Financial Results. Conference Call. At this time, all participants are in ...

Olympic Steel, Inc. (NASDAQ:ZEUS) Q2 2022 Results Conference Call August 5, 2022 10:00 AM ET Company Participants Rich Manson - CFO Rick Marabito - CEO Andrew Greiff - President and COO Conference Call Participants Marco Rodriguez - Stonegate Capital Markets Chris Sakai - Singular Research Operator Greetings, and welcome to the Olympic Steel 2022 Second Quarter Financial Results. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your ho ...

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 June 30, 2022 ☐ 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 (State or other jurisdicti ...