Olympic Steel Reports 2014 Third-Quarter and Nine-Month Results

CLEVELAND, Nov. 6, 2014 (GLOBE NEWSWIRE) -- Olympic Steel, Inc.ZEUS, a national metals service center, today announced financial results for the third quarter and nine months ended Sept. 30, 2014.

Third-quarter net sales grew $72.6 million reaching $376.6 million, compared with $304.0 million in the same quarter last year—an increase of 23.9%. For the 2014 nine months, net sales increased 14.1% to $1.110 billion, compared with $973 million in 2013. Revenue growth in both periods was due to higher sales volume in the current year.

Net income for the third quarter increased 16% to $1.6 million, or $0.14 per diluted share, up from $1.3 million, or $0.12 per diluted share, last year. Third-quarter 2014 earnings were negatively impacted by $0.2 million of pre-tax LIFO expense recorded during the period, related to the Company's tubular and pipe products segment. In 2013's third quarter, results benefited from $0.2 million of pre-tax LIFO income.

For the 2014 nine-month period, reported net income declined to $7.8 million, or $0.70 per diluted share, compared with $9.0 million, or $0.82 per diluted share, in last year's comparable period. Year-to-date 2014 earnings were negatively impacted by $0.6 million of pre-tax LIFO expense. Last year's nine-month results had a positive benefit related to pre-tax LIFO income totaling $2.5 million. The net impact of both years' LIFO adjustments adversely effected reported year-to-date pre-tax comparisons by $3.1 million, or $0.17 per diluted share. Excluding the LIFO adjustments, net earnings increased during the 2014 nine-month period, compared with the same period in 2013.

"Our revenue and market share have grown substantially in 2014; however, we are not satisfied with our bottom line. Operating costs are inflated for the current market environment," said Chairman and Chief Executive Officer Michael D. Siegal.

"A multitude of initiatives are underway to lower operating costs and improve efficiencies," he added.

"We are committed to accelerating inventory turnover, improving operating costs, and reducing debt," Siegal said.

Olympic Steel's board of directors approved a regular quarterly cash dividend of $0.02 per share, which is payable on Dec. 15, 2014, to shareholders of record on Dec. 1, 2014.

Conference Call and Webcast

A simulcast of Olympic Steel's 2014 third-quarter and nine-month earnings conference call can be accessed via the investor relations section of the Company's website at www.olysteel.com. The simulcast will begin at 10 a.m. ET today and a replay of the call will be available for 14 days thereafter.

Forward-Looking Statements

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, global production levels and pricing of metals, industry shipping and inventory levels, and rapid fluctuations in customer demand and metals pricing; the cyclicality and volatility within the metals industry; the ability of our customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability; the ability of our newer locations to achieve expected results; events or circumstances that could adversely impact the successful operation of our processing equipment and operations; the ability to comply with the terms of our asset-based credit facility; the ability of our customers and third parties to honor their agreements related to derivative instruments; 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 impact of union organizing activities and the success of union contract renewals; 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 operational excellence initiatives to improve our operating, cultural and management systems and reduce our costs; the successes of our strategic efforts and initiatives to increase sales volumes, maintain or improve working capital turnover and free cash flows, improve our customer service, and achieve cost savings; the timing and outcome of inventory lower of cost or market adjustments; the inflation or deflation existing within the metals industry, as well as our product mix and inventory levels on hand, which can impact our cost of materials sold as a result of the fluctuations in the last-in, first-out, or LIFO, inventory reserve; 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 and decreased future capital expenditures, reduce inventory and repay debt within anticipated time frames; events or circumstances that could impair or adversely impact the carrying value of any of our assets; risks and uncertainties associated with intangible assets, including potential impairment charges; the 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; and 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, 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.

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 operates from 34 facilities in North America.

For additional information, please visit the Company's website at http://www.olysteel.com or http://www.b2i.us/profiles/investor/ContactUs.asp?BzID=2195.

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