NASDAQ$ZEUS

Olympic Steel Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported record results driven by strong market demand and strategic diversification.

Olympic Steel reported record sales and net income for the fourth quarter of 2021, marking the most profitable year in the company's history. The company's diversification and acquisition strategy, combined with operational efficiencies, drove the strong performance. Increased quarterly dividend from $0.02 to $0.09 per share.

  • Achieved record sales and net income for the fourth quarter.
  • All three operating segments earned record EBITDA in 2021.
  • Strategic actions in 2021 strengthened the company for the longer term.
  • Board of Directors approved a regular quarterly cash dividend increase to $0.09 per share.

Headline financials

Total Revenue

$625M

Previous: $332M+88.4%
EPS (adj)

$2.79

Previous: $0.14+1892.9%
Adjusted EBITDA

$51.1M

No prior period
Capital Expenditures

$3.27M

Previous: $1.84M+78.4%
Free Cash Flow

-$22.7M

Previous: $31.2M-172.9%
Net Income

$24.9M

Previous: $1.79M+1292.0%
Operating Income

$36.3M

Previous: $5.37M+575.6%
Gross Profit

$127M

Previous: $71.2M+78.1%
Cash & Equivalents

$9.81M

Previous: $5.53M+77.3%
Total Assets

$1.02B

Previous: $641M+59.8%
Stock-Based Comp

$253K

Previous: $293K-13.7%

Revenue & EPS history

Olympic Steel · Revenue · Quarterly

$625M

Q4 2021+88.4%vs Q4 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Olympic Steel · $625M total across 3 segments · Q4 2021

  • Carbon Flat Products
    $368M+105.9%
  • Specialty Metals Flat Products
    $157M+76.1%
  • Tubular and Pipe Products
    $99.7M+56.5%

Forward guidance

Olympic Steel is well-positioned for a strong first quarter of 2022, with robust stainless steel, aluminum, and pipe and tube markets. Despite anticipated price decreases in the carbon segment, the company remains optimistic about business conditions and expects diversification efforts to drive consistent profitability.

Tailwinds

  • Well-positioned for a strong first quarter of 2022.
  • Stainless steel, aluminum, and pipe and tube markets remain robust.
  • Optimistic about business conditions in the first quarter of 2022.
  • Confident that diversification and expansion in higher-margin products will help provide more consistent profitability.
  • Efforts will reduce the impact of market cyclicality on financial performance.

Headwinds

  • Prices in the carbon segment began to transition down in the fourth quarter.
  • Risks of falling metals prices and inventory devaluation.
  • Risks associated with supply chain disruption.
  • Supply disruptions and inflationary pressures.
  • Increased customer demand without corresponding increase in metal supply could lead to lower sales and profits.

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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