NASDAQ$ZEUS

Olympic Steel Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Olympic Steel reported a net loss for Q2 2020, but benefited from actions to manage expenses and retain flexibility.

Olympic Steel reported a net loss of $6.5 million for the second quarter of 2020, or $0.56 per diluted share, compared to a net income of $2.1 million, or $0.18 per diluted share, in the second quarter of 2019. Sales totaled $248 million, down from $429 million in the same quarter last year. The company benefited from decisive actions to reduce operating expenses, limit capital expenditures, and tighten inventory management, resulting in positive adjusted EBITDA for the quarter.

  • Net loss for the second quarter totaled $6.5 million, or $0.56 per diluted share.
  • Sales for the second quarter of 2020 totaled $248 million, compared with $429 million in the second quarter of 2019.
  • Adjusted EBITDA for the second quarter was $0.5 million, compared with $10.5 million in the same period a year ago.
  • The Board of Directors also approved a regular quarterly cash dividend of $0.02 per share, which is payable on September 15, 2020.

Headline financials

Total Revenue

$248M

Previous: $429M-42.1%
EPS (adj)

-$0.38

Previous: $0.16-337.5%
Adjusted EBITDA

$528K

Previous: $10.5M-95.0%
Capital Expenditures

-$6.18M

Previous: -$4.42M-39.9%
Free Cash Flow

-$2.67M

Previous: $47.8M-105.6%
Net Income

-$6.45M

Previous: $2.08M-410.1%
Operating Income

-$7.49M

Previous: $5.94M-226.0%
Gross Profit

-$196M

Previous: -$351M+44.2%
Cash & Equivalents

$7.11M

Previous: $6.37M+11.5%
Total Assets

$643M

Previous: $724M-11.2%
Stock-Based Comp

$277K

Previous: $144K+92.4%

Revenue & EPS history

Olympic Steel · Revenue · Quarterly

$248M

Q2 2020-42.1%vs Q2 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Olympic Steel · $248M total across 3 segments · Q2 2020

  • Carbon Flat Products
    $141M-45.0%
  • Specialty Metals Flat Products
    $54.5M-43.3%
  • Tubular and Pipe Products
    $53M-31.4%

Forward guidance

The company believes that market conditions will continue to improve and expects the third quarter to be sequentially better than the second quarter.

Tailwinds

  • Market conditions will continue to improve
  • Third quarter is expected to be sequentially better than the second quarter
  • Operational flexibility
  • Strong liquidity position
  • Diversification built into the business

Headwinds

  • Risks associated with the novel coronavirus, or COVID-19, pandemic, including, but not limited to supply chain disruptions and customer closures
  • Reduced sales and profit levels
  • Slower payment of accounts receivable and potential increases in uncollectible accounts receivable
  • Falling metals prices that could lead to lower of cost or market inventory adjustments and the impairment of intangible and long-lived assets
  • Reduced availability and productivity of our employees

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 8 quarterly earnings reports

Historical avg

+0.2%

Avg return

Earnings day

-4.2%

Avg return

5 days after

-3.4%

Avg return

30 days after

50%

32 / 64 earnings

Positive

+45.6%

Q1 2015

Best reaction

-15.4%

Q2 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+0.0%-1.4%+8.5%
Q2 2025+1.3%-1.9%+8.4%
Q1 2025+9.2%+0.4%-7.3%
Q4 2024+3.3%-1.8%-13.2%
Q3 2024-5.0%+2.9%+15.9%
Q2 2024-11.5%-14.1%-20.5%
Q1 2024-9.2%-16.2%-17.8%
Q4 2023+0.3%-1.8%-1.5%
Q3 2023-5.2%
Q2 2023+5.1%
Q1 2023-1.3%
Q4 2022+0.9%
Q3 2022+7.8%
Q2 2022+2.5%
Q1 2022-7.1%
Q4 2021+14.4%
Q3 2021-2.8%
Q2 2021+10.0%
Q1 2021+7.7%
Q4 2020-6.9%
Q3 2020+6.5%
Q2 2020+0.5%
Q1 2020-0.2%
Q4 2019+3.7%
Q3 2019-5.9%
Q2 2019-4.2%
Q1 2019+10.0%
Q4 2018-5.4%
Q3 2018-0.2%
Q2 2018+2.5%
Q1 2018-4.7%
Q4 2017-7.3%
Q3 2017+5.1%
Q2 2017+2.1%
Q1 2017+19.6%
Q4 2016-9.6%
Q3 2016-12.2%
Q2 2016-15.4%
Q1 2016+11.4%
Q4 2015+1.2%
Q3 2015+0.3%
Q2 2015+5.1%
Q1 2015+45.6%
Q4 2014+8.2%
Q3 2014-8.4%
Q2 2014-5.3%
Q1 2014-3.2%
Q4 2013+0.7%
Q3 2013-14.3%
Q2 2013+10.2%
Q1 2013+13.6%
Q4 2012-1.1%
Q3 2012-2.7%
Q2 2012+0.7%
Q1 2011-5.9%
Q1 2012+3.7%
Q4 2009-3.9%
Q4 2011-3.9%
Q3 2011+1.0%
Q3 2010+1.0%
Q2 2011-13.2%
Q4 2010-13.2%
Q2 2010-13.2%
Q1 2010-2.4%

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