zeus20250331

zeus20250331_10q.htm

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
	(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

	22901 Millcreek Boulevard, Suite 650, Highland Hills, OH		44122
	(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code (216) 292-3800

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, without par value	ZEUS	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

	Large accelerated filer ☐	Accelerated filer ☒
	Non-accelerated filer ☐	Smaller reporting company ☐
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares of each of the issuer's classes of common stock, as of the latest practicable date:

	Class		Outstanding as of May 2, 2025
	Common stock, without par value		11,162,704

Table of Contents

Olympic Steel, Inc.

Index to Form 10-Q

			Page No.

Part I. FINANCIAL INFORMATION			3

	Item 1. *Financial Statements*		3

		Consolidated Balance Sheets – March 31, 2025 and December 31, 2024 (unaudited)	3

		Consolidated Statements of Comprehensive Income – for the three months ended March 31, 2025 and 2024 (unaudited)	4

		Consolidated Statements of Cash Flows – for the three months ended March 31, 2025 and 2024 (unaudited)	5

		Supplemental Disclosures of Cash Flow Information – for the three months ended March 31, 2025 and 2024 (unaudited)	6

		Consolidated Statements of Shareholders’ Equity – for the three months ended March 31, 2025 and 2024 (unaudited)	7

		Notes to Unaudited Consolidated Financial Statements	8

	Item 2. *Management’s Discussion and Analysis of Financial Condition and Results of Operations*		19

	Item 3. *Quantitative and Qualitative Disclosures About Market Risk*		30

	Item 4. *Controls and Procedures.*		31

Part II. OTHER INFORMATION			32

	Item 5. *Other Information*		32

	Item 6. *Exhibits*		33

SIGNATURES			34

Table of Contents

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

Olympic Steel, Inc.

Consolidated Balance Sheets

(in thousands)

	*As of*
	*March 31, 2025*			*December 31, 2024*
	(unaudited)
Assets
Cash and cash equivalents	$	13,262		$	11,912
Accounts receivable, net		212,543			166,149
Inventories, net (includes LIFO reserves of $6,341 as of March 31, 2025 and December 31, 2024)		360,148			390,626
Prepaid expenses and other		9,633			11,904
Total current assets		595,586			580,591
Property and equipment, at cost		527,925			519,702
Accumulated depreciation		(321,967	)		(315,866	)
Net property and equipment		205,958			203,836
Goodwill		83,818			83,818
Intangible assets, net		116,523			118,111
Other long-term assets		20,752			21,204
Right of use assets, net		42,085			36,936
Total assets	$	1,064,722		$	1,044,496

Liabilities
Accounts payable	$	140,140		$	80,743
Accrued payroll		15,614			24,184
Other accrued liabilities		26,273			21,846
Current portion of lease liabilities		6,458			5,865
Total current liabilities		188,485			132,638
Credit facility revolver		235,360			272,456
Other long-term liabilities		20,601			22,484
Deferred income taxes		9,481			11,049
Lease liabilities		36,610			31,945
Total liabilities		490,537			470,572
Shareholders' Equity
Preferred stock		-			-
Common stock		138,286			138,538
Accumulated other comprehensive income (loss)		(20	)		190
Retained earnings		435,919			435,196
Total shareholders' equity		574,185			573,924
Total liabilities and shareholders' equity	$	1,064,722		$	1,044,496

The accompanying notes are an integral part of these consolidated statements.

Table of Contents

Olympic Steel, Inc.

Consolidated Statements of Comprehensive Income

For the Three Months Ended March 31,

(in thousands, except per share data)

	*Three months ended*
	*March 31,*
	*2025*			*2024*
	(unaudited)

Net sales	$	492,941		$	526,642
Costs and expenses
Cost of materials sold (excludes items shown separately below)		374,500			407,538
Warehouse and processing		34,619			32,893
Administrative and general		31,374			30,152
Distribution		18,932			16,758
Selling		12,477			11,536
Occupancy		4,949			4,493
Depreciation		6,482			6,006
Amortization		1,815			1,328
Total costs and expenses		485,148			510,704
Operating income		7,793			15,938
Other loss, net		21			19
Income before interest and income taxes		7,772			15,919
Interest and other expense on debt		4,182			4,010
Income before income taxes		3,590			11,909
Income tax provision		1,081			3,212
Net income	$	2,509		$	8,697
Loss on cash flow hedge		(281	)		(41	)
Tax effect on cash flow hedge		70			-
Total comprehensive income	$	2,298		$	8,656

Earnings per share:
Net income per share - basic	$	0.21		$	0.75
Weighted average shares outstanding - basic		11,730			11,663
Net income per share - diluted	$	0.21		$	0.75
Weighted average shares outstanding - diluted		11,755			11,663

Dividends declared per share of common stock	$	0.16		$	0.15

The accompanying notes are an integral part of these consolidated statements.

Table of Contents

Olympic Steel, Inc.

Consolidated Statements of Cash Flows

For the Three Months Ended March 31,

(in thousands)

	*2025*			*2024*
	(unaudited)

Cash flows provided by (used for) operating activities:
Net income	$	2,509		$	8,697
Adjustments to reconcile net income to net cash provided by (used in) operating activities -
Depreciation and amortization		8,322			7,334
Amortization of deferred financing fees		176			194
Loss on disposition of property and equipment		-			197
Stock-based compensation		(252	)		522
Other long-term assets		(4,843	)		(982	)
Other long-term liabilities		1,822			330
		7,734			16,292
Changes in working capital:
Accounts receivable		(46,394	)		(23,604	)
Inventories		30,478			(11,032	)
Prepaid expenses and other		2,346			3,032
Accounts payable		58,738			28,779
Change in outstanding checks		659			932
Accrued payroll and other accrued liabilities		(4,143	)		(17,007	)
		41,684			(18,900	)
Net cash provided by (used for) operating activities		49,418			(2,608	)

Cash flows used for investing activities:
Capital expenditures		(8,831	)		(4,818	)
Net cash used for investing activities		(8,831	)		(4,818	)

Cash flows provided by (used for) financing activities:
Credit facility revolver borrowings		110,362			166,595
Credit facility revolver repayments		(147,458	)		(159,993	)
Principal payment under finance lease obligation		(225	)		(289	)
Credit facility fees and expenses		(130	)		(100	)
Dividends paid on common stock		(1,786	)		(1,671	)
Net cash provided by (used for) financing activities		(39,237	)		4,542

Cash and cash equivalents:
Net change		1,350			(2,884	)
Beginning balance		11,912			13,224
Ending balance	$	13,262		$	10,340

The accompanying notes are an integral part of these consolidated statements.

Table of Contents

Olympic Steel, Inc.

Supplemental Disclosures of Cash Flow Information

For the Three Months Ended March 31,

(in thousands)

2025

SEC Form 10-Q filed by Olympic Steel Inc.