|
Press Release
Olympic Steel Reports First Quarter Results for 2001
Cleveland, Ohio -- (April 26, 2001) Olympic Steel, Inc., (Nasdaq: ZEUS), a leading national steel service center, today announced financial results for the first quarter ended March 31, 2001. Tons sold for the first quarter of 2001 decreased 15.1% to 289 thousand from 340 thousand and net sales decreased 19.1% to $117.1 million from $144.7 million in the first quarter of 2000. Pretax loss totaled $1.6 million and the net loss was $1.0 million, or $0.11 per share. These results compare to net income of $1.5 million, or $.15 per share for last year's first quarter. Operating income totaled $473 thousand, compared to operating income of $5.0 million for the prior period.
"Although we were operationally profitable in this difficult economic climate that has prevailed since April of last year, our sales continue to be negatively impacted particularly in the automotive sector," stated Michael D. Siegal, Chairman and Chief Executive Officer. "We will continue to diligently manage the controllable sectors of the company through these difficult external challenges."
Industry market conditions continue to be highly competitive. Stabilization of market pricing and steel consumption is not anticipated in the near future. The Company believes that its early response to the market downturn in 2000, its strong balance sheet, and its commitment to debt reduction, inventory management, expense control and performing flawlessly for its customers will have a positive impact on its performance going forward.
Founded in 1954, Olympic Steel is a leading North American steel service center that is experienced in the specialized processing and distribution of flat-rolled carbon and stainless steel products, as well as tubular steel products. Headquartered in Cleveland, Ohio, the company has approximately 1,000 employees in 14 locations serving nine geographic markets. For further information about Olympic Steel, Inc., visit the Company’s web site at http://www.olysteel.com.
It is the Company's policy not to make quarterly or annual sales or earnings projections for external use and not to endorse any analyst's sales or earnings estimates. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Such risks and uncertainties include, but are not limited to, general business and economic conditions; competitive factors such as the availability and pricing of steel and fluctuations in demand; work stoppages by automotive or steel manufacturers; and equipment installation delays or malfunctions. Please refer to the Company's Securities and Exchange Commission filings for further information.
Contact: Cathy S. Kish
Director - Investor Relations
Telephone: (216) 292-3800
Fax: (216) 682-4065
|
Earnings
|
|
SUMMARY FINANCIAL INFORMATION |
|
|
|
|
| (in thousands, except per share and tonnage data) |
| |
| |
|
Three Months Ended March 31, |
|
|
| |
|
2001 |
|
|
|
2000 |
|
|
|
| SUMMARY |
|
(unaudited) |
|
|
|
| Net sales |
|
$117,120 |
|
|
|
$144,687 |
|
|
|
| Operating income |
|
473 |
|
0.4% |
|
4,987 |
|
3.4% |
|
| Net income (loss) |
|
$(1,011) |
|
|
|
$1,477 |
|
|
|
| Basic and diluted net income (loss) per share |
|
$(0.11) |
|
|
|
$0.15 |
|
|
|
| |
| DETAILS |
| Tons sold: |
| Direct |
|
254,796 |
|
|
|
289,323 |
|
|
|
| Toll |
|
33,715 |
|
|
|
50,675 |
|
|
|
| |
|
288,511 |
|
|
|
339,998 |
|
|
|
| % change |
|
(15.1%) |
|
|
|
11.9% |
|
|
|
| Net sales |
|
$117,120 |
|
|
|
$144,687 |
|
|
|
| % change |
|
(19.1%) |
|
|
|
11.8% |
|
|
|
| Cost of sales |
|
90,676 |
|
|
|
111,078 |
|
|
|
| Gross margin |
|
26,444 |
|
22.6% |
|
33,609 |
|
23.2% |
|
| Operating expenses: |
| Warehouse and processing |
|
8,128 |
|
6.9% |
|
8,469 |
|
5.9% |
|
| Administrative and general |
|
6,742 |
|
5.8% |
|
7,757 |
|
5.4% |
|
| Distribution |
|
4,000 |
|
3.4% |
|
5,485 |
|
3.8% |
|
| Selling |
|
3,286 |
|
2.8% |
|
3,357 |
|
2.3% |
|
| Occupancy |
|
1,500 |
|
1.3% |
|
1,286 |
|
0.9% |
|
| Depreciation and amortization |
|
2,315 |
|
2.0% |
|
2,268 |
|
1.6% |
|
| Total operating expenses |
|
25,971 |
|
22.2% |
|
28,622 |
|
19.8% |
|
| Operating income |
|
473 |
|
0.4% |
|
4,987 |
|
3.4% |
|
| Loss from OLP joint venture |
|
(220) |
|
|
|
(207) |
|
|
|
| Income (loss) from TSP joint venture |
|
(3) |
|
|
|
35 |
|
|
|
| Income before financing costs and taxes |
|
250 |
|
|
|
4,815 |
|
|
|
| Interest expense |
|
1,200 |
|
|
|
1,586 |
|
|
|
| Receivable securitization expense |
|
694 |
|
|
|
847 |
|
|
|
| Financing costs |
|
1,894 |
|
1.6% |
|
2,433 |
|
1.7% |
|
| Income (loss) before taxes |
|
(1,644) |
|
(1.4%) |
|
2,382 |
|
1.6% |
|
| Income taxes |
|
(633) |
|
38.5% |
|
905 |
|
38.0% |
|
| Net income (loss) |
|
$(1,011) |
|
|
|
$1,477 |
|
|
|
| Basic and diluted net income (loss) per share |
|
$(0.11) |
|
|
|
$0.15 |
|
|
|
| Weighted average shares outstanding |
|
9,460 |
|
|
|
10,034 |
|
|
|
| |
| |
| It is the Company's policy not to make quarterly or annual sales or earnings projections |
| for external use and not to endorse any analyst's sales or earnings estimates. |
| SUMMARY OTHER FINANCIAL INFORMATION
|
|
|
| (in thousands, except ratios) |
| |
| |
March 31,
|
December 31, |
| | 2001 | 2000
| 2000 |
| | (unaudited)
| (audited) |
| Accounts receivable |
$11,865 | |
$17,861 | |
$5,260 | |
| Inventories |
84,419 | |
123,370 | |
89,404 | |
| Net property and equipment |
116,191 | |
123,063 | |
117,573 | |
| Total assets |
224,988 | |
276,235 | |
224,929 | |
| Current liabilities |
35,873 | |
42,370 | |
32,672 | |
| Total debt (current & long-term) |
65,674 | |
94,981 | |
68,009 | |
| Shareholders' equity |
123,909 | |
137,697 | |
124,920 | |
| Shareholders' equity per share |
12.87 | |
13.83 | |
13.39 | |
| Debt-to-equity ratio |
.53 to 1 | |
.69 to 1 | |
.54 to 1 | |
| |
| | Three Months Ended
|
| | March 31, |
| | 2001 | 2000 |
| | (unaudited) |
| Change in working capital |
$(1,734) | |
$4,383 | |
| Capital expenditures, net |
908 | |
1,084 | |
| EBITDA |
2,788 | |
7,255 | |
| |
| Note: Certain 2000 amounts have been reclassified to conform to the 2001 presentation. |
| It is the Company's policy not to make quarterly or annual sales or earnings projections |
| for external use and not to endorse any analyst's sales or earnings estimates. |
| |
|
|
|
|
|
olysteel.com