-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LZ3vv8MEvesIZmdWtc4PZEcDFDfrsE0Bc3ZRadBApV4VGNptlJxRAAFYkwNj1sjO HuH4PG9wxBxGptLO/fi1nA== 0000950152-04-005731.txt : 20040729 0000950152-04-005731.hdr.sgml : 20040729 20040729163703 ACCESSION NUMBER: 0000950152-04-005731 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040729 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OLYMPIC STEEL INC CENTRAL INDEX KEY: 0000917470 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-METALS SERVICE CENTERS & OFFICES [5051] IRS NUMBER: 341245650 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23320 FILM NUMBER: 04939487 BUSINESS ADDRESS: STREET 1: 5080 RICHMOND RD CITY: BEDFORD HEIGHTS STATE: OH ZIP: 44146 BUSINESS PHONE: 2162923800 MAIL ADDRESS: STREET 1: 5096 RICHMOND RD CITY: BEDFORD HEIGHTS STATE: OH ZIP: 44146 8-K 1 l08893ae8vk.txt OLYMPIC STEEL, INC. ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) - July 29, 2004 Commission File Number 0-23320 OLYMPIC STEEL, INC. (Exact name of registrant as specified in its charter) Ohio 34-1245650 -------------------------------- ------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 5096 Richmond Road, Bedford Heights, Ohio 44146 ----------------------------------------- ------------------------- (Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (216) 292-3800 ================================================================================ ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits. EXHIBIT NO. 99.1 Press release of the Company dated July 29, 2004. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION A copy of the press release issued by Olympic Steel, Inc. on Thursday, July 29, 2004, describing its results of operations for the quarter ended June 30, 2004, is attached hereto as Exhibit 99.1. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. OLYMPIC STEEL, INC. Date: July 29, 2004 By: /s/ RICHARD T. MARABITO ------------------------------ Richard T. Marabito Chief Financial Officer (Principal Accounting Officer) 2 EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION - ------ ----------- 99.1 Press Release dated July 29, 2004.
3 EX-99.1 2 l08893aexv99w1.txt EX-99.1 PRESS RELEASE EXHIBIT 99.1 NEWS RELEASE CONTACT: RICHARD T. MARABITO CHIEF FINANCIAL OFFICER TELEPHONE: (216) 292-3800 FAX: (216) 292-3974 OLYMPIC STEEL REPORTS RECORD SALES AND EARNINGS FOR SECOND QUARTER AND FIRST HALF OF 2004 Cleveland, Ohio -- (July 29, 2004) Olympic Steel, Inc., (Nasdaq: ZEUS), a national steel service center, today announced record financial results for the second quarter and six months ended June 30, 2004. Net sales for the second quarter of 2004 increased 96.4% to $222.8 million from $113.4 million in the second quarter a year ago. Tons sold increased 23.4% to 344 thousand from 279 thousand in the second quarter of 2003. Second quarter 2004 net income was the highest quarterly results in Company history, totaling $18.5 million, or $1.89 per basic share and $1.82 per diluted share, compared to a net loss of $(554) thousand, or $(.06) per basic and diluted share for last year's second quarter. For the first half of 2004, net sales increased 79.5% to $409.8 million from $228.3 million. Tons sold increased 33.2% to 729 thousand from 548 thousand in the first half of 2003. Net income for the first half of 2004 was $29.3 million or $3.01 per basic share and $2.90 per diluted share, compared to a net loss of $(1.0) million, or $(.11) per basic and diluted share in the first half of 2003. "We are pleased to report record sales and earnings. We are most happy with our continued success in our asset turnover and balance sheet management during a period of rapidly escalating steel prices," stated Michael D. Siegal, Chairman and Chief Executive Officer. "We reduced our debt by $7.4 million during the first half of 2004, while our accounts receivable increased $41.1 million and inventory increased $39.7 million due to strong demand and significant price increases in the first half." "We are optimistic about the second half of 2004, based upon our customers' and suppliers' performance and their favorable outlook for the remainder of 2004. We see many positive growth opportunities this year for Olympic Steel, understanding that the back half of the year does have eight less shipping days than the first half of the year. We expect to take advantage of this higher risk environment, as we are well positioned in terms of inventory and liquidity, while maintaining our strict disciplines on working capital, cash turnover and credit risk management," concluded Mr. Siegal. Founded in 1954, Olympic Steel is a North American steel service center that is experienced in the specialized processing and distribution of large volumes of flat-rolled carbon and stainless steel products. Headquartered in Cleveland, Ohio, the Company operates 12 distribution and processing facilities and participates in two joint ventures in Michigan. For further information about Olympic Steel, Inc., visit the Company's web site at http://www.olysteel.com. PAGE 1 OF 4 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, economic and political conditions; competitive factors such as the availability and pricing of steel and fluctuations in customer demand; layoffs or work stoppages by the Company's, suppliers', or customers' personnel; equipment installation delays or malfunctions; and customer, supplier, and competitor consolidation or insolvency. Please refer to the Company's Securities and Exchange Commission filings for further information. PAGE 2 OF 4 OLYMPICSTEEL SELECTED FINANCIAL INFORMATION (in thousands, except per share data and ratios)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ----------------------------- ----------------------------- 2004 2003 2004 2003 ------------- ------------- ------------- ------------- SUMMARY RESULTS OF OPERATIONS: (unaudited) (unaudited) Net sales $ 222,773 $ 113,401 $ 409,806 $ 228,281 Operating income 31,747 146 50,582 525 Income (loss) before income taxes 30,814 (816) 48,309 (1,614) ------------- ------------- ------------- ------------- Net income (loss) $ 18,500 $ (554) $ 29,347 $ (1,033) ============= ============= ============= ============= Earnings per share: Net income (loss) per share - basic $ 1.89 $ (0.06) $ 3.01 $ (0.11) Net income (loss) per share - diluted $ 1.82 $ (0.06) $ 2.90 $ (0.11)
JUNE 30, DECEMBER 31, ----------------------------- ------------- 2004 2003 2003 ------------- ------------- ------------- SUMMARY BALANCE SHEET DATA: (unaudited) Accounts receivable, net $ 97,606 $ 59,260 $ 56,501 Inventories 132,510 86,599 92,775 Net property and equipment 86,669 93,347 89,782 Total assets 327,358 249,826 249,002 Current liabilities 89,505 33,480 42,574 Total debt 90,387 102,567 97,797 Shareholders' equity 143,106 114,465 112,236 Shareholders' equity per share 14.51 11.87 11.63 Debt-to-equity ratio .63 to 1 .90 to 1 .87 to 1
SIX MONTHS ENDED JUNE 30, ----------------------------- 2004 2003 ------------- ------------- OTHER DATA: (unaudited) Capital expenditures 1,064 237 EBITDA (a) 55,216 4,735
(a) Defined as operating income plus depreciation plus asset impairment charge. 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. Page 3 of 4 OLYMPICSTEEL RESULTS OF OPERATIONS (in thousands, except per share and tonnage data)
Three Months Ended June 30, Six Months Ended June 30, --------------------------------------------- ------------------------------------------ 2004 2003 2004 2003 --------------------- --------------------- -------------------- ------------------- (unaudited) (unaudited) Tons sold Direct 292,973 233,912 623,068 463,413 Toll 51,096 44,802 106,145 84,236 ---------- ---------- ---------- ---------- 344,069 278,714 729,213 547,649 % change 23.4% (11.5)% 33.2% (12.3)% Net sales $ 222,773 $ 113,401 $ 409,806 $ 228,281 % change 96.4% (6.8)% 79.5% (1.6)% Cost of materials sold 152,247 89,430 285,793 180,417 ---------- ---------- ---------- ---------- Gross profit 70,526 31.7% 23,971 21.1% 124,013 30.3% 47,864 21.0% Operating expenses Warehouse and processing 11,425 5.1% 8,147 7.2% 22,309 5.4% 16,135 7.1% Administrative and general 13,360 6.0% 5,752 5.1% 23,037 5.6% 11,560 5.1% Distribution 4,711 2.1% 3,990 3.5% 9,782 2.4% 7,754 3.4% Selling 5,764 2.6% 2,834 2.5% 11,080 2.7% 5,588 2.4% Occupancy 1,256 0.6% 979 0.9% 2,589 0.6% 2,092 0.9% Depreciation 2,076 0.9% 2,123 1.9% 4,147 1.0% 4,210 1.8% Asset impairment charge 187 0.1% -- 0.0% 487 0.1% -- 0.0% ---------- ---------- ---------- ---------- Total operating expenses 38,779 17.4% 23,825 21.0% 73,431 17.9% 47,339 20.7% ---------- ---------- ---------- ---------- Operating income 31,747 14.3% 146 0.1% 50,582 12.3% 525 0.2% Income (loss) from joint ventures 94 19 172 (10) ---------- ---------- ---------- ---------- Income before financing costs and income taxes 31,841 165 50,754 515 Interest and other expense on debt 1,027 0.5% 981 0.9% 2,445 0.6% 2,129 0.9% ---------- ---------- ---------- ---------- Income (loss) before income taxes 30,814 13.8% (816) (0.7)% 48,309 11.8% (1,614) (0.7)% Income tax provision (benefit) 12,314 40.0% (262) 32.1% 18,962 39.3% (581) 36.0% ---------- ---------- ---------- ---------- Net income (loss) $ 18,500 $ (554) $ 29,347 $ (1,033) ========== ========== ========== ========== Earnings per share: Net income (loss) per share - basic $ 1.89 $ (0.06) $ 3.01 $ (0.11) ========== ========== ========== ========== Weighted average shares outstanding - basic 9,794 9,645 9,734 9,644 ========== ========== ========== ========== Net income (loss) per share - diluted $ 1.82 $ (0.06) $ 2.90 $ (0.11) ========== ========== ========== ========== Weighted average shares outstanding - diluted 10,182 9,645 10,108 9,644 ========== ========== ========== ==========
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. Page 4 of 4 -----END PRIVACY-ENHANCED MESSAGE-----