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Olympic Steel Reports 2012 Fourth-Quarter And Full-Year Financial Results

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

The Olympic Steel, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3582

Olympic Steel, Inc.
Results of Operations
(in thousands, except per-share data)
                 
  Three Months Ended Dec. 31, Twelve Months Ended Dec. 31,
  2012 2011 2012 2011
  (unaudited) (audited)
Net sales  $ 291,724    $ 319,944    $ 1,383,701    $ 1,261,872  
% change (8.8%)   48.7%   9.7%   56.7%  
                 
Costs and expenses                
                 
Cost of materials sold (exclusive of items shown below) 234,793 80.5% 257,824 80.6% 1,113,852 80.5% 1,008,462 79.9%
Warehouse and processing 20,497 7.0% 20,997 6.6% 84,389 6.1% 72,429 5.7%
Administrative and general 15,606 5.3% 15,817 4.9% 68,253 4.9% 59,156 4.7%
Distribution 8,048 2.8% 8,062 2.5% 35,009 2.5% 28,489 2.3%
Selling 6,647 2.3% 6,803 2.1% 27,635 2.0% 24,943 2.0%
Occupancy 2,175 0.7% 2,089 0.7% 8,671 0.6% 7,879 0.6%
Depreciation 5,335 1.8% 4,189 1.3% 19,971 1.4% 15,602 1.2%
Amortization 222 0.1% 222 0.1% 889 0.1% 444 0.0%
Goodwill impairment 6,583 2.3%  --  0.0% 6,583 0.5%  --  0.0%
                 
Total costs and expenses 299,906 102.8% 316,003 98.8% 1,365,252 98.7% 1,217,404 96.5%
                 
Operating (loss) income (8,182) (2.8%) 3,941 1.2% 18,449 1.3% 44,468 3.5%
                 
Asset impairment charge of JV 36 0.0% 953 0.3% 36 0.0% 953 0.1%
Other (income) expense, net 7 0.0% (14) (0.0%) (83) (0.0%) 77 0.0%
                 
(Loss) income before financing cost and income taxes (8,225) (2.8%) 3,002 0.9% 18,496 1.3% 43,438 3.4%
                 
Interest and other expense on debt 1,946 0.7% 2,085 0.7% 8,357 0.6% 5,953 0.5%
                 
(Loss) income before income taxes (10,171) (3.5%) 917 0.3% 10,139 0.7% 37,485 3.0%
                 
Income tax (benefit) expense  (53) 0.5% 352 38.4% 7,862 77.5% 12,515 33.4%
                 
Net (loss) income  $ (10,118)    $ 565    $ 2,277    $ 24,970  
                 
Net loss on interest rate hedge, net of tax (11)    --    (579)    --   
                 
Total comprehensive (loss) income  $ (10,129)    $ 565    $ 1,698    $ 24,970  
                 
Earnings per share:                
                 
Net (loss) income per share - basic $ (0.92)   $ 0.05   $ 0.21   $ 2.28  
                 
Weighted average shares outstanding - basic 10,993   10,941   10,989   10,937  
                 
Net (loss) income per share - diluted $ (0.92)    $ 0.05   $ 0.21   $ 2.28  
                 
 Weighted average shares outstanding - diluted 10,993   10,953   10,995   10,951  
 
Olympic Steel, Inc.
Consolidated Balance Sheets
(in thousands)
     
  At Dec. 31,
  2012 2011
  (audited)
Assets    
     
Cash and cash equivalents $7,782 $7,403
Accounts receivable, net 112,841 122,579
Inventories, net 290,023 277,765
Prepaid expenses and other 11,731 13,112
 Total current assets 422,377 420,859
     
Property and equipment, at cost 347,935 329,116
Accumulated depreciation (151,608) (135,703)
 Net property and equipment 196,327 193,413
     
Goodwill 40,787 47,254
Intangible assets, net 35,424 36,313
Other long-term assets 11,079 9,660
 Total assets $705,994 $707,499
     
Liabilities     
     
Current portion of long-term debt $10,942 $9,662
Accounts payable 101,471 104,425
Accrued payroll 10,705 11,613
Other accrued liabilities 14,984 13,875
 Total current liabilities 138,102 139,575
     
Credit facility revolver 177,575 170,405
Long-term debt 53,194 64,149
Other long-term liabilities 11,410 9,580
Deferred income taxes 35,856 37,214
 Total liabilities 416,137 420,923
     
Shareholders' Equity    
     
Preferred stock  --   -- 
Common stock 122,272 119,816
Accumulated other comprehensive loss (579)  -- 
Retained earnings 168,164 166,760
 Total shareholders' equity 289,857 286,576
 Total liabilities and shareholders' equity $705,994 $707,499
 
Olympic Steel, Inc.
Segment Financial Information*
(in thousands)
         
  Three Months Ended Twelve Months Ended
  Dec. 31, Dec. 31,
  (unaudited) (audited)
  2012 2011 2012 2011
Net sales        
 Flat products  $ 234,472  $ 263,190  $ 1,138,063  $ 1,143,708
 Tubular and pipe products 57,252 56,754 245,638 118,164
Total net sales  $ 291,724  $ 319,944  $ 1,383,701  $ 1,261,872
         
Depreciation and amortization        
 Flat products  $ 4,274  $ 3,540  $ 16,065  $ 13,800
 Tubular and pipe products 1,283 871 4,795 2,246
Total depreciation and amortization  $ 5,557  $ 4,411  $ 20,860  $ 16,046
         
Operating (loss) income        
 Flat products  $ (11,297)  $ 288  $ 452  $ 37,262
 Tubular and pipe products 3,115 3,653 17,997 7,206
Total operating (loss) income  $ (8,182)  $ 3,941  $ 18,449  $ 44,468
         
 Asset impairment charge of JV 36 953 36 953
 Other (income) expense, net 7 (14) (83) 77
(Loss) income before financing cost  and income taxes  $ (8,225)  $ 3,002  $ 18,496  $ 43,438
Interest and other expense on debt 1,946 2,085 8,357 5,953
(Loss) income before income taxes  $ (10,171)  $ 917  $ 10,139  $ 37,485
         
Capital expenditures        
 Flat products  $ 2,291  $ 14,415  $ 17,004  $ 38,849
 Tubular and pipe products 795 454 6,369 638
Total capital expenditures  $ 3,086  $ 14,869  $ 23,373  $ 39,487
         
         
  At Dec. 31,      
  2012 2011    
Goodwill        
 Flat products  $ 500  $ 7,083    
 Tubular and pipe products 40,287 40,171    
Total goodwill  $ 40,787  $ 47,254    
         
Total Assets        
 Flat products  $ 480,487  $ 494,179    
 Tubular and pipe products 225,507 213,320    
Total assets  $ 705,994  $ 707,499    

* The tubular and pipe products segment is a result of the July 1, 2011, acquisition of Chicago Tube & Iron. As a result, the data for the 12 months ended Dec. 31, 2011, only includes six months of tubular and pipe products segment data.

Other Information:
  At Dec. 31,
  2012 2011
     
Shareholders' equity per share  $ 26.54  $ 26.28
     
Debt-to-equity ratio 0.83 to 1 0.85 to 1
     
     
  Twelve Months Ended
  Dec. 31,
  2012 2011
     
     
Capital expenditures  $ 23,373  $ 39,487
     
Cash dividends per share  $ 0.08  $ 0.08
CONTACT: IR Contact:
         Matthew J. Dennis, CFA
         Olympic Steel Investor Relations
         (216) 672-0552

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