NASDAQ$ZEUS

Olympic Steel Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Olympic Steel experienced a net loss amidst improving demand and strategic initiatives.

Olympic Steel reported a net loss of $1.5 million for Q3 2020, compared to a net income of $0.6 million in Q3 2019. Sales decreased to $300 million from $384 million year-over-year, due to lower average selling prices and volumes. However, volumes steadily increased throughout the quarter, with September volumes approaching pre-COVID levels. The company's performance improved sequentially, driven by increased demand and successful execution of initiatives to improve inventory turns, lower expense run rates, and reduce debt.

  • Net loss totaled $1.5 million, or $0.13 per diluted share, compared to net income of $0.6 million, or $0.05 per diluted share, in Q3 2019.
  • Sales decreased to $300 million from $384 million in the same quarter last year, impacted by lower average selling prices and volumes.
  • Adjusted EBITDA was $4.3 million, versus $7.2 million in Q3 2019.
  • Flat-rolled volumes were up 23% sequentially, and consolidated operating income improved by over $7 million compared to Q2 2020.

Headline financials

Total Revenue

$300M

Previous: $384M-21.9%
EPS (adj)

-$0.14

Previous: $0.05-380.0%
Debt to equity ratio

0.57

No prior period
Capital Expenditures

-$7.97M

Previous: -$7.48M-6.5%
Free Cash Flow

$20.7M

Previous: $91.9M-77.5%
Net Income

-$1.52M

Previous: $591K-357.2%
Operating Income

-$363K

Previous: $3.58M-110.1%
Gross Profit

-$240M

Previous: -$311M+22.9%
Cash & Equivalents

$5.14M

Previous: $8.49M-39.4%
Total Assets

$619M

Previous: $699M-11.4%
Stock-Based Comp

$286K

Previous: $256K+11.7%

Revenue & EPS history

Olympic Steel · Revenue · Quarterly

$300M

Q3 2020-21.9%vs Q3 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Olympic Steel · $300M total across 3 segments · Q3 2020

  • Carbon Flat Products
    $168M-22.1%
  • Specialty Metals Flat Products
    $80.9M-17.1%
  • Tubular and Pipe Products
    $51.1M-28.2%

Forward guidance

The company anticipates strengthening demand and tightening supply across the industry, which should support a positive pricing environment and result in a strong finish to 2020.

Tailwinds

  • Strengthening demand
  • Tightening supply across the industry
  • Positive pricing environment
  • Strong finish to 2020
  • Positioned to deliver consistent profitability

Headwinds

  • Risks associated with the novel coronavirus, or COVID-19, pandemic
  • Risks of falling metals prices and inventory devaluation
  • General and global business, economic, financial and political conditions
  • Cyclicality and volatility within the metals industry
  • Fluctuations in the value of the U.S. dollar

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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