Olympic Steel(ZEUS) - 2025 Q1 - Quarterly Results

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]