NASDAQ$ZEUS

Olympic Steel Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Olympic Steel's Q4 2022 results reflected a decrease in net income and sales compared to Q4 2021, but the company still achieved the second most profitable year in its history.

Olympic Steel reported a net income of $4.0 million, or $0.34 per diluted share, for the fourth quarter of 2022, compared to $24.9 million, or $2.16 per diluted share, in the fourth quarter of 2021. Sales for the fourth quarter of 2022 totaled $520 million, compared with $625 million in the fourth quarter of 2021. Despite the decline in Q4 results, the company achieved its second most profitable year in history.

  • Net income for the fourth quarter totaled $4.0 million, or $0.34 per diluted share.
  • Sales for the fourth quarter totaled $520 million.
  • Adjusted EBITDA for the fourth quarter of 2022 was $11.9 million.
  • The company's Specialty Metals and Pipe and Tube segments hit all-time profitability highs for the year.

Headline financials

Total Revenue

$520M

Previous: $625M-16.7%
EPS (adj)

$0.28

Previous: $2.79-90.0%
Debt to equity ratio

0.32

No prior period
Shareholders' equity per share

$46.36

No prior period
Adjusted EBITDA

$11.9M

Previous: $51.1M-76.8%
Capital Expenditures

$5.89M

Previous: $3.27M+80.0%
Free Cash Flow

$81.7M

Previous: -$22.7M+459.6%
Net Income

$3.96M

Previous: $24.9M-84.1%
Operating Income

$7.67M

Previous: $36.3M-78.8%
Gross Profit

$89.2M

Previous: $127M-29.6%
Cash & Equivalents

$12.2M

Previous: $9.81M+24.2%
Total Assets

$892M

Previous: $1.02B-12.9%
Stock-Based Comp

$300K

Previous: $253K+18.6%

Revenue & EPS history

Olympic Steel · Revenue · Quarterly

$520M

Q4 2022-16.7%vs Q4 2021
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Olympic Steel · $520M total across 3 segments · Q4 2022

  • Carbon Flat Products
    $270M-26.5%
  • Specialty Metals Flat Products
    $161M+2.6%
  • Tubular and Pipe Products
    $88.6M-11.1%

Forward guidance

Olympic Steel is off to a fast start in 2023, having increased their asset-based revolver and made an acquisition that broadens product offerings.

Tailwinds

  • Olympic Steel is off to a fast start in 2023.
  • Increased asset-based revolver from $475 million to $625 million, providing additional capital to further execute growth and diversification strategy.
  • Metal-Fab acquisition adds a consistent, recession-resistant track record of double-digit EBITDA margins.
  • Metal-Fab acquisition broadens product offerings.
  • Increased quarterly dividend.

Headwinds

  • Risks of falling metals prices and inventory devaluation.
  • Supply disruptions and inflationary pressures.
  • Risks associated with shortages of skilled labor, increased labor costs and our ability to attract and retain qualified personnel.
  • Rising interest rates and their impacts on our variable interest rate debt.
  • General and global business, economic, financial and political conditions, including, but not limited to, recessionary conditions and legislation passed under the current administration.

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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