Olympic Steel Reports First Quarter Results For 2001

Apr 26, 2001, 01:00 ET from Olympic Steel

    CLEVELAND, April 26 /PRNewswire/ -- Olympic Steel, Inc., (Nasdaq:   ZEUS), a
 leading national steel service center, today announced financial results for
 the first quarter ended March 31, 2001.  Tons sold for the first quarter of
 2001 decreased 15.1% to 289 thousand from 340 thousand and net sales decreased
 19.1% to $117.1 million from $144.7 million in the first quarter of 2000.
 Pretax loss totaled $1.6 million and the net loss was $1.0 million, or $0.11
 per share.  These results compare to net income of $1.5 million, or $.15 per
 share for last year's first quarter.  Operating income totaled $473 thousand,
 compared to operating income of $5.0 million for the prior period.
     "Although we were operationally profitable in this difficult economic
 climate that has prevailed since April of last year, our sales continue to be
 negatively impacted particularly in the automotive sector," stated Michael D.
 Siegal, Chairman and Chief Executive Officer.  "We will continue to diligently
 manage the controllable sectors of the company through these difficult
 external challenges."
     Industry market conditions continue to be highly competitive.
 Stabilization of market pricing and steel consumption is not anticipated in
 the near future.  The Company believes that its early response to the market
 downturn in 2000, its strong balance sheet, and its commitment to debt
 reduction, inventory management, expense control and performing flawlessly for
 its customers will have a positive impact on its performance going forward.
     Founded in 1954, Olympic Steel is a leading North American steel service
 center that is experienced in the specialized processing and distribution of
 flat-rolled carbon and stainless steel products, as well as tubular steel
 products.  Headquartered in Cleveland, Ohio, the company has approximately
 1,000 employees in 14 locations serving nine geographic markets.  For further
 information about Olympic Steel, Inc., visit the Company's web site at
 http://www.olysteel.com .
     It is the Company's policy not to make quarterly or annual sales or
 earnings projections for external use and not to endorse any analyst's sales
 or earnings estimates. Forward-looking statements in this release are made
 pursuant to the safe harbor provisions of the Private Securities Litigation
 Reform Act of 1995.  Such forward-looking statements are subject to certain
 risks and uncertainties that could cause actual results to differ materially
 from those projected.  Readers are cautioned not to place undue reliance on
 these forward-looking statements that speak only as of the date hereof.  Such
 risks and uncertainties include, but are not limited to, general business and
 economic conditions; competitive factors such as the availability and pricing
 of steel and fluctuations in demand; work stoppages by automotive or steel
 manufacturers; and equipment installation delays or malfunctions.  Please
 refer to the Company's Securities and Exchange Commission filings for further
 information.
 
                                  OLYMPIC STEEL
                         SUMMARY FINANCIAL INFORMATION
                (in thousands, except per share and tonnage data)
 
                                         Three Months Ended March 31,
                                             2001             2000
     SUMMARY                                      (unaudited)
 
     Net sales                             $117,120     -   $144,687     -
     Operating income                           473   0.4%     4,987   3.4%
     Net income (loss)                      $(1,011)    -     $1,477     -
     Basic and diluted net income (loss)
      per share                              $(0.11)    -      $0.15     -
 
     DETAILS
     Tons sold
        Direct                              254,796     -    289,323     -
        Toll                                 33,715     -     50,675     -
 
          Total                             288,511     -    339,998     -
 
        % change                              (15.1%)   -       11.9%    -
     Net sales                             $117,120     -   $144,687     -
        % change                              (19.1%)   -       11.8%    -
     Cost of sales                           90,676     -    111,078     -
        Gross margin                         26,444  22.6%    33,609  23.2%
     Operating expenses
        Warehouse and processing              8,128   6.9%     8,469   5.9%
        Administrative and general            6,742   5.8%     7,757   5.4%
        Distribution                          4,000   3.4%     5,485   3.8%
        Selling                               3,286   2.8%     3,357   2.3%
        Occupancy                             1,500   1.3%     1,286   0.9%
        Depreciation and amortization         2,315   2.0%     2,268   1.6%
 
           Total operating expenses          25,971  22.2%    28,622  19.8%
 
        Operating income                        473   0.4%     4,987   3.4%
 
     Loss from OLP joint venture               (220)    -       (207)    -
     Income (loss) from TSP joint venture        (3)    -         35     -
 
           Income before financing costs
            and taxes                           250     -      4,815     -
 
     Interest expense                         1,200     -      1,586     -
     Receivable securitization expense          694     -        847     -
 
           Financing costs                    1,894   1.6%     2,433   1.7%
 
     Income (loss) before taxes              (1,644) (1.4%)    2,382   1.6%
     Income taxes                              (633) 38.5%       905  38.0%
     Net income (loss)                      $(1,011)    -     $1,477     -
     Basic and diluted net income (loss)
      per share                              $(0.11)    -      $0.15     -
 
     Weighted average shares outstanding      9,460     -     10,034     -
 
 
  It is the Company's policy not to make quarterly or annual sales or earnings
     projections for external use and not to endorse any analyst's sales or
                              earnings estimates.
 
 
                                   OLYMPIC STEEL
                       SUMMARY OTHER FINANCIAL INFORMATION
                           (in thousands, except ratios)
 
                                                    March 31,      December 31,
                                                2001        2000       2000
                                                   (unaudited)       (audited)
 
     Accounts receivable                      $11,865     $17,861      $5,260
     Inventories                               84,419     123,370      89,404
     Net property and equipment               116,191     123,063     117,573
     Total assets                             224,988     276,235     224,929
     Current liabilities                       35,873      42,370      32,672
     Total debt (current & long-term)          65,674      94,981      68,009
     Shareholders' equity                     123,909     137,697     124,920
     Shareholders' equity per share             12.87       13.83       13.39
     Debt-to-equity ratio                    .53 to 1    .69 to 1    .54 to 1
 
 
                                                         Three Months Ended
                                                              March 31,
                                                       2001              2000
                                                             (unaudited)
 
     Change in working capital                       $(1,734)           $4,383
     Capital expenditures, net                           908             1,084
     EBITDA                                            2,788             7,255
 
     Note:  Certain 2000 amounts have been reclassified to conform to the 2001
            presentation.
 
  It is the Company's policy not to make quarterly or annual sales or earnings
     projections for external use and not to endorse any analyst's sales or
                              earnings estimates.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X35423473
 
 

SOURCE Olympic Steel
    CLEVELAND, April 26 /PRNewswire/ -- Olympic Steel, Inc., (Nasdaq:   ZEUS), a
 leading national steel service center, today announced financial results for
 the first quarter ended March 31, 2001.  Tons sold for the first quarter of
 2001 decreased 15.1% to 289 thousand from 340 thousand and net sales decreased
 19.1% to $117.1 million from $144.7 million in the first quarter of 2000.
 Pretax loss totaled $1.6 million and the net loss was $1.0 million, or $0.11
 per share.  These results compare to net income of $1.5 million, or $.15 per
 share for last year's first quarter.  Operating income totaled $473 thousand,
 compared to operating income of $5.0 million for the prior period.
     "Although we were operationally profitable in this difficult economic
 climate that has prevailed since April of last year, our sales continue to be
 negatively impacted particularly in the automotive sector," stated Michael D.
 Siegal, Chairman and Chief Executive Officer.  "We will continue to diligently
 manage the controllable sectors of the company through these difficult
 external challenges."
     Industry market conditions continue to be highly competitive.
 Stabilization of market pricing and steel consumption is not anticipated in
 the near future.  The Company believes that its early response to the market
 downturn in 2000, its strong balance sheet, and its commitment to debt
 reduction, inventory management, expense control and performing flawlessly for
 its customers will have a positive impact on its performance going forward.
     Founded in 1954, Olympic Steel is a leading North American steel service
 center that is experienced in the specialized processing and distribution of
 flat-rolled carbon and stainless steel products, as well as tubular steel
 products.  Headquartered in Cleveland, Ohio, the company has approximately
 1,000 employees in 14 locations serving nine geographic markets.  For further
 information about Olympic Steel, Inc., visit the Company's web site at
 http://www.olysteel.com .
     It is the Company's policy not to make quarterly or annual sales or
 earnings projections for external use and not to endorse any analyst's sales
 or earnings estimates. Forward-looking statements in this release are made
 pursuant to the safe harbor provisions of the Private Securities Litigation
 Reform Act of 1995.  Such forward-looking statements are subject to certain
 risks and uncertainties that could cause actual results to differ materially
 from those projected.  Readers are cautioned not to place undue reliance on
 these forward-looking statements that speak only as of the date hereof.  Such
 risks and uncertainties include, but are not limited to, general business and
 economic conditions; competitive factors such as the availability and pricing
 of steel and fluctuations in demand; work stoppages by automotive or steel
 manufacturers; and equipment installation delays or malfunctions.  Please
 refer to the Company's Securities and Exchange Commission filings for further
 information.
 
                                  OLYMPIC STEEL
                         SUMMARY FINANCIAL INFORMATION
                (in thousands, except per share and tonnage data)
 
                                         Three Months Ended March 31,
                                             2001             2000
     SUMMARY                                      (unaudited)
 
     Net sales                             $117,120     -   $144,687     -
     Operating income                           473   0.4%     4,987   3.4%
     Net income (loss)                      $(1,011)    -     $1,477     -
     Basic and diluted net income (loss)
      per share                              $(0.11)    -      $0.15     -
 
     DETAILS
     Tons sold
        Direct                              254,796     -    289,323     -
        Toll                                 33,715     -     50,675     -
 
          Total                             288,511     -    339,998     -
 
        % change                              (15.1%)   -       11.9%    -
     Net sales                             $117,120     -   $144,687     -
        % change                              (19.1%)   -       11.8%    -
     Cost of sales                           90,676     -    111,078     -
        Gross margin                         26,444  22.6%    33,609  23.2%
     Operating expenses
        Warehouse and processing              8,128   6.9%     8,469   5.9%
        Administrative and general            6,742   5.8%     7,757   5.4%
        Distribution                          4,000   3.4%     5,485   3.8%
        Selling                               3,286   2.8%     3,357   2.3%
        Occupancy                             1,500   1.3%     1,286   0.9%
        Depreciation and amortization         2,315   2.0%     2,268   1.6%
 
           Total operating expenses          25,971  22.2%    28,622  19.8%
 
        Operating income                        473   0.4%     4,987   3.4%
 
     Loss from OLP joint venture               (220)    -       (207)    -
     Income (loss) from TSP joint venture        (3)    -         35     -
 
           Income before financing costs
            and taxes                           250     -      4,815     -
 
     Interest expense                         1,200     -      1,586     -
     Receivable securitization expense          694     -        847     -
 
           Financing costs                    1,894   1.6%     2,433   1.7%
 
     Income (loss) before taxes              (1,644) (1.4%)    2,382   1.6%
     Income taxes                              (633) 38.5%       905  38.0%
     Net income (loss)                      $(1,011)    -     $1,477     -
     Basic and diluted net income (loss)
      per share                              $(0.11)    -      $0.15     -
 
     Weighted average shares outstanding      9,460     -     10,034     -
 
 
  It is the Company's policy not to make quarterly or annual sales or earnings
     projections for external use and not to endorse any analyst's sales or
                              earnings estimates.
 
 
                                   OLYMPIC STEEL
                       SUMMARY OTHER FINANCIAL INFORMATION
                           (in thousands, except ratios)
 
                                                    March 31,      December 31,
                                                2001        2000       2000
                                                   (unaudited)       (audited)
 
     Accounts receivable                      $11,865     $17,861      $5,260
     Inventories                               84,419     123,370      89,404
     Net property and equipment               116,191     123,063     117,573
     Total assets                             224,988     276,235     224,929
     Current liabilities                       35,873      42,370      32,672
     Total debt (current & long-term)          65,674      94,981      68,009
     Shareholders' equity                     123,909     137,697     124,920
     Shareholders' equity per share             12.87       13.83       13.39
     Debt-to-equity ratio                    .53 to 1    .69 to 1    .54 to 1
 
 
                                                         Three Months Ended
                                                              March 31,
                                                       2001              2000
                                                             (unaudited)
 
     Change in working capital                       $(1,734)           $4,383
     Capital expenditures, net                           908             1,084
     EBITDA                                            2,788             7,255
 
     Note:  Certain 2000 amounts have been reclassified to conform to the 2001
            presentation.
 
  It is the Company's policy not to make quarterly or annual sales or earnings
     projections for external use and not to endorse any analyst's sales or
                              earnings estimates.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X35423473
 
 SOURCE  Olympic Steel