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Dec 31, 2022
Olympic Steel Q4 2022 Earnings Report
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.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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