Olympic Steel Reports 2012 Third-Quarter Financial Results

Olympic Steel Reports 2012 Third-Quarter Financial Results

Company Declares Regular Quarterly Cash Dividend

CLEVELAND, Nov. 8, 2012 (GLOBE NEWSWIRE) -- Olympic Steel, Inc.,
(Nasdaq:ZEUS), a national metals service center, today announced financial
results for the third quarter and nine months ended Sept. 30, 2012.

Net sales for the third quarter of 2012 totaled $342.6 million, a 1.7%
decrease from the prior year third quarter's $348.5 million. For the
nine-month period, net sales reached $1.1 billion, up 15.9%, from $941.9
million reported for the comparable period in 2011. Year-to-date 2012 sales
benefitted from the Company's acquisition of Chicago Tube and Iron (CTI),
which closed on July 1, 2011.

Net income for the 2012 third quarter was $1.6 million, or $0.15 per diluted
share, compared with $6.1 million, or $0.56 per diluted share, in last year's
third quarter. Net income for the nine months totaled $12.4 million, or $1.13
per diluted share, compared with $24.4 million, or $2.23 per diluted share, in
the comparable nine-month period of 2011.

Commenting on the results, Chairman and Chief Executive Officer Michael D.
Siegal stated, "Margin pressure persisted during the third quarter and
nine-month period, reflecting lower steel pricing versus the prior year's
comparable periods. In addition, higher operating expenses—primarily
associated with ongoing expansion projects—were incurred during the current

"Despite difficult market conditions, third-quarter and nine-month tonnage
volumes increased for the Flat as well as Tubular and Pipe products, partially
offsetting the impact of lower margins," Siegal added. "The growth in tonnage
volume resulted in an uptick in Olympic Steel's market share during the third
quarter and is indicative of the commitment to customer satisfaction and
reliably providing high-quality products. As we look toward the end of the
current year and into 2013, we believe steel prices will remain volatile and
look forward to focusing on things within our control, such as successfully
concluding our capital projects and increasing cash flow."

Olympic Steel's Board of Directors approved a regular quarterly cash dividend
of $0.02 per share, which is payable on Dec. 17, 2012, to shareholders of
record on Dec. 3, 2012.

Conference Call and Webcast

Olympic Steel will host a conference call to discuss 2012 third-quarter and
nine-month results, today, Nov. 8, 2012, at 10:00 a.m. ET. The call will be
broadcast live from the Investor Relations section of the Company's website at
www.olysteel.com. The webcast will be archived and available for replay on the
website for approximately 14 days.

About Olympic Steel

Founded in 1954, Olympic Steel is a leading U.S. metals service center focused
on the direct sale and distribution of large volumes of processed carbon,
coated and stainless flat-rolled sheet, coil and plate steel and aluminum
products. The Company's CTI subsidiary is a leading distributor of steel
tubing, bar, pipe, valves and fittings, and fabricates pressure parts for the
electric utility industry. Headquartered in Cleveland, Ohio, Olympic Steel
currently operates from 33 facilities in North America. For further
information, visit the Company's website at http://www.olysteel.com.

The Olympic Steel, Inc. logo is available at

It is the Company's policy 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. Forward-looking statements are typically identified by words or phrases
such as "may," "will," "anticipate," "should," "intend," "expect," "believe,"
"estimate," "project," "plan," "potential," or "continue," as well as the
negative of these terms or other similar expressions. Such forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those implied by such statements.
Readers are cautioned not to place undue reliance on these forward-looking
statements. Such risks and uncertainties include, but are not limited to:
general and global business, economic, financial and political conditions,
including the ongoing effects of the global economic recovery; access to
capital and global credit markets; competitive factors such as the
availability and pricing of metal, industry shipping and inventory levels, and
rapid fluctuations in customer demand and metal pricing; the cyclicality and
volatility within the metals industry; the ability of customers (especially
those that may be highly leveraged and those with inadequate liquidity) to
maintain their credit availability; the success of our new startups in Gary,
Ind.; Mount Sterling, Ky.; Monterrey, Mexico; Roseville, Minn.; Kansas City,
Mo.; and Streetsboro, Ohio; the ability to successfully integrate the newly
leased locations or newly acquired businesses into our operations and achieve
expected results; equipment installation delays or malfunctions, including the
new Streetsboro, Ohio, facility start up; the ability to comply with the terms
of our asset-based credit facility and to make the required term-loan
payments; the ability of our customers and third parties to honor their
agreements related to derivative instruments, including the outcome of the MF
Global UK Limited administration process; customer, supplier, and competitor
consolidation, bankruptcy or insolvency; reduced production schedules, layoffs
or work stoppages by our own, our suppliers' or our customers' personnel; the
availability and costs of transportation and logistical services; the amounts,
successes and our ability to continue our capital investments and strategic
growth initiatives and our business information system implementations; the
successes of our strategic efforts and initiatives to increase sales volumes,
maintain or improve working capital turnover and free cash flows, improve
inventory turnover and improve our customer service; the timing and outcome of
inventory lower of cost or market adjustments; the adequacy of our existing
information technology and business system software; our ability to pay
regular quarterly cash dividends and the amounts and timing of any future
dividends; our ability to generate free cash flow through operations, reduce
inventory and repay debt within anticipated timeframes; events or
circumstances that could impair or adversely impact the carrying value of our
assets; the recently enacted federal healthcare legislation's impact on the
healthcare benefits required to be provided by us and the impact of such
legislation on our compensation and administrative costs; unanticipated
developments that could occur with respect to contingencies such as litigation
and environmental matters, including any developments that would require an
increase in our costs for such contingencies.Further information on these and
other risks and uncertainties is provided under Item 1A "Risk Factors" of our
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which
disclosure is incorporated herein by reference, and elsewhere in reports that
the Company files or furnishes with the SEC. This release speaks only as of
its date and the Company undertakes no obligation to publicly update
forward-looking statements, whether as a result of new information, future
events or otherwise, except to the extent required by law.You are advised,
however, to consult any further disclosures the Company makes on related
subjects in its reports filed with or furnished to the SEC.

                         --Financial Tables Follow--

(in thousands, except per share and tonnage data)
               Three Months Ended September 30,   Nine Months Ended September 30,
               2012              2011             2012                2011
               (unaudited)                        (unaudited)
Net sales       $342,560       $348,547      $1,091,977       $941,928 
% change       (1.7%)           66.6%           15.9%              59.7%      
Costs and                                                                  
Cost of
materials sold
(exclusive of   276,504   80.7%  281,058   80.6% 879,060      80.5%  750,638    79.7%
items shown
Warehouse and  21,667    6.3%   19,471    5.6%  63,892      5.9%   51,432    5.5%
Administrative 16,765    4.9%   16,461    4.7%  52,647      4.8%   43,339    4.6%
and general
Distribution   8,682     2.5%   8,080     2.3%  26,960      2.5%   20,427    2.2%
Selling        7,085     2.1%   7,209     2.1%  20,989      1.9%   18,140    1.9%
Occupancy      2,057     0.6%   2,297     0.7%  6,495       0.6%   5,790     0.6%
Depreciation   4,953     1.4%   4,434     1.3%  14,636      1.3%   11,413    1.2%
Amortization   223       0.1%   222       0.1%  667         0.1%   222       0.0%
Total costs    337,936   98.7%  339,232   97.3% 1,065,346   97.6%  901,401   95.7%
and expenses
Operating      4,624     1.3%   9,315     2.7%  26,631      2.4%   40,527    4.3%
Other (income)  (51)      (0.0%) 91        0.0%  (90)        (0.0%) 91        0.0%
expense, net
Income before
financing cost  4,675     1.4%   9,224     2.6%  26,721      2.4%   40,436    4.3%
and income
Interest and
other expense   2,120     0.6%   2,237     0.6%  6,411       0.6%   3,868     0.4%
on debt
Income before  2,555     0.7%   6,987     2.0%  20,310      1.9%   36,568    3.9%
income taxes
Income tax      916       35.9%  851       12.2% 7,915       39.0%  12,163    33.3%
Net income      $1,639         $6,136        $12,395          $24,405  
Net loss on
interest rate   (165)            --             (568)              --        
hedge, net of
comprehensive   $1,474         $6,136        $11,827          $24,405  
Earnings per                                                               
Net income per $0.15          $0.56         $1.13            $2.23    
share - basic
average shares  10,961          10,937         10,958            10,936    
outstanding -
Net income per $0.15          $0.56         $1.13            $2.23    
share - diluted
average shares  10,967          10,951         10,967            10,949    
outstanding -
It is the Company's policy not to make quarterly or annual sales or earnings
for external use and not to endorse any analyst's sales or earnings estimates.

Consolidated Balance Sheets
(in thousands)
                                         September 30,      December 31,
                                          2012               2011
                                         (unaudited)        (audited)
Cash and cash equivalents                 $3,832           $7,403
Accounts receivable, net                  152,434           122,579
Inventories, net                          288,698           277,765
Prepaid expenses and other                9,417             13,112
Total current assets                     454,381           420,859
Property and equipment, at cost           345,593           329,116
Accumulated depreciation                  (146,965)         (135,703)
Net property and equipment               198,628           193,413
Goodwill                                  47,370            47,254
Intangible assets, net                    35,646            36,313
Other long-term assets                    11,603            9,660
Total assets                             $747,628         $707,499
Current portion of long-term debt         $10,253          $9,662
Accounts payable                          98,754            $104,425
Accrued payroll                           10,879            11,613
Other accrued liabilities                 14,039            13,875
Total current liabilities                133,925           139,575
Credit facility revolver                  211,015           170,405
Long-term debt                            56,111            64,149
Other long-term liabilities               11,788            9,580
Deferred income taxes                     34,952            37,214
Total liabilities                        447,791           420,923
Shareholders' Equity                                        
Preferred stock                           --                --
Common stock                              121,905           119,816
Accumulated other comprehensive loss      (567)             --
Retained earnings                         178,499           166,760
Total shareholders' equity               299,837           286,576
Total liabilities and shareholders'      $747,628         $707,499
It is the Company's policy not to make quarterly or annual sales or earnings
for external use and not to endorse any analyst's sales or earnings estimates.

(in thousands)
                     Three Months Ended September Nine Months Ended September
                      30,                          30,
SEGMENT INFORMATION:  2012           2011          2012           2011
                     (unaudited)                  (unaudited)
Net sales                                                      
Flat products        $279,075     $287,137    $903,591     $880,518
Tubular and pipe     63,485        61,410       188,386       61,410
Total net sales       $342,560     $348,547    $1,091,977   $941,928
Operating income                                               
Flat products        $632         $5,762      $11,750      $36,974
Tubular and pipe     3,992         3,553        14,881        3,553
Total operating       $4,624       $9,315      $26,631      $40,527
Depreciation and                                               
Flat products        $3,969       $3,281      $11,791      $10,260
Tubular and pipe     1,207         1,375        3,512         1,375
Total depreciation    $5,176       $4,656      $15,303      $11,635
and amortization
Capital expenditures                                           
Flat products        $3,983       $8,018      $14,715      $24,434
Tubular and pipe     624           184          5,575         184
Total capital         $4,607       $8,202      $20,290      $24,618
                     September 30,  December 31,                
                     2012           2011                        
Total assets                                                   
Flat products        $524,983     $494,179                  
Tubular and pipe     222,645       213,320                    
Total assets          $747,628     $707,499                  
The tubular and pipe products segment is a result
of the July 1, 2011 acquisition of Chicago Tube
and Iron.As a result, the segment data                          
for the nine months ended September 30, 2011 only
includes three months of tubular and pipe products
segment data.
OTHER INFORMATION:                                             
                     September 30,                December 31,   
                     2012           2011          2011           
Shareholders' equity  27.46         26.23        26.28         
per share
Debt-to-equity ratio  .93 to 1     .87 to 1    .85 to 1     
                     Nine Months Ended                          
                     September 30,                              
                     2012           2011                        
OTHER DATA:           (unaudited)                                
Capital expenditures  20,290        24,618                     
Cash dividends per    $0.06        $0.06                     
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.

CONTACT: Richard T. Marabito
         Chief Financial Officer
         Telephone:  (216) 292-3800
         Fax:  (216) 292-3974

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