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Jun 30, 2020
Olympic Steel Q2 2020 Earnings Report
Olympic Steel reported a net loss for Q2 2020, but benefited from actions to manage expenses and retain flexibility.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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
Challenges Ahead
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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