Financial Data and Key Metrics Changes - The company reported first quarter sales of $493 million with a net income of $2.5 million, a decrease from $8.7 million in the same period last year [7][17] - EBITDA for the first quarter was $16.1 million compared to $23.3 million in the prior year [17] - Operating expenses increased to $110.6 million from $103.2 million year-over-year, influenced by the acquisition of Metalworks [18][19] - The effective tax rate for the first quarter was 30.1%, up from 27% in the same period last year [20] 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, experiencing slower OEM orders but maintaining positive results [14] - The Specialty Metals segment reported EBITDA of $3.6 million, with ongoing investments in growth and expansion [15] Market Data and Key Metrics Changes - Flat roll shipping volumes increased by 24% sequentially and 6% year-over-year, reaching the highest levels since Q3 2021 [7][12] - Hot roll pricing escalated by more than 30% during the quarter due to the announced tariffs [12] Company Strategy and Development Direction - The company is focused on building a stronger, more resilient Olympic Steel, diversifying into metal-intensive end markets, and expanding fabrication capabilities [7][8] - The recent acquisition of Metalworks is expected to bolster growth and has already proven accretive to results [8] - The company remains committed to M&A as a source of growth, having completed eight acquisitions over the past seven years [9] 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 [11] - The company is well-positioned to support increased manufacturing in the U.S., with over 90% of metal supply and nearly all sales domestically based [10] - Management noted that tariffs have dominated the macroeconomic conversation but believe they can navigate these challenges effectively [10] Other Important Information - The company announced a five-year extension of its $625 million asset-based revolving credit facility, providing flexible capital for growth [10][19] - Capital expenditures for the first quarter totaled $8.8 million, with an estimated $35 million for the full year [19] 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 increase was due to stronger spot sales, with traditional sales being 65% contract and 35% spot [26][27] Question: What is the outlook for the Pipe and Tube segment? - Management expects a more traditional year for Pipe and Tube, with opportunities in onshoring and data centers driving growth [40] Question: What is the current appetite for M&A? - Management confirmed that M&A remains a key part of the growth strategy, with a return of potential sellers noted in April [30][31] Question: How are operating expenses being managed? - The increase in operating expenses was attributed to the acquisition of Metalworks and higher shipping volumes, but inflation-adjusted expenses are being managed well [52][53] Question: Will tariffs increase competition for acquisitions? - Management believes that tariffs may lead to increased competition for acquisitions as companies look to grow through M&A rather than capital expenditures [57]

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][16] - EBITDA for the first quarter was $16.1 million compared to $23.3 million in the prior year [16] - Consolidated operating expenses totaled $110.6 million, up from $103.2 million year-over-year [17] - The effective tax rate for the first quarter was 30.1%, compared to 27% in the same period last year [19] Business Segment Data and Key Metrics Changes - Flat roll shipping volumes increased by 24% sequentially and 6% year-over-year, reaching the highest levels since Q3 2021 [6][11] - The Carbon segment reported EBITDA of $10.9 million, driven by increased shipping levels and growth in coated carbon steel products [12] - The Pipe and Tube segment delivered EBITDA of $6.4 million, although it experienced slower OEM orders [13] - The Specialty Metals segment reported EBITDA of $3.6 million, with continued investments in growth and expansion [14] Market Data and Key Metrics Changes - Hot roll pricing increased by more than 30% during the quarter following the announcement of 25% tariffs on steel and aluminum imports [11] - Over 90% of the company's metal supply and nearly all sales are domestically based, positioning the company well in the current tariff environment [9] Company Strategy and Development Direction - The company is focused on building a stronger, more resilient Olympic Steel, diversifying into metal-intensive end markets, and expanding fabrication capabilities [6][7] - The recent acquisition of Metalworks is expected to bolster growth and has already proven accretive to results [7] - The company remains committed to M&A as a source of growth, having completed eight acquisitions over the past seven years [8] 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 [10] - The company is well-positioned to support increased manufacturing in the U.S. and is prepared for potential onshoring opportunities [9][40] - Management noted that while tariffs have impacted the macroeconomic environment, they do not foresee a direct impact on their M&A strategy [53] Other Important Information - The company announced a five-year extension of its $625 million asset-based revolving credit facility, providing flexible, low-cost capital for growth [9][18] - Capital expenditures for the first quarter totaled $8.8 million, with an estimated $35 million for the full year [18] 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 increase was due to stronger spot sales, with traditional sales being 65% contract and 35% spot [25][26] Question: What is the outlook for the Pipe and Tube segment? - Management noted that the Pipe and Tube segment did not see the same sales increase as the Carbon segment and is expected to follow a more traditional year [27][40] Question: What is the current appetite for M&A? - Management confirmed that M&A remains a key part of their growth strategy, with a return of potential sellers observed in April [29][30] Question: How are operating expenses being managed? - Management attributed the increase in operating expenses to the acquisition of Metalworks and higher shipping volumes, while maintaining that inflation-adjusted expenses are being managed well [51][52] Question: How are tariffs affecting the M&A strategy? - Management stated that tariffs have a greater impact on the core business rather than directly affecting M&A, and they continue to seek domestic acquisition opportunities [53][54]