Previous Statements by ZEUS
» Olympic Steel's CEO Discusses Q3 2011 Results - Earnings Call Transcript
» Olympic Steel's CEO Discusses Q2 2011 Results - Earnings Call Transcript
» Olympic Steel's CEO Discusses Q1 2011 Results - Earnings Call Transcript
» Olympic Steel CEO Discusses Q4 2010 Results - Earnings Call Transcript
Earlier today, we reported our financial results for the fourth quarter and the year ended December 31, 2011. We are pleased to announce strong overall 2011 sales and earnings performance. We recorded our highest ever fourth quarter and annual sales levels in 2011. Our 2011 financial results and record sales better depict from our overall flat rolled performance in July 1, 2011 acquisition of Chicago Tube and Iron.Net sales for the fourth quarter of 2011 totaled $319.9 million an increase by 49% from $215.2 million from the fourth quarter of 2010. Fourth quarter of 2011 net income totaled $600,000 or $0.05 per diluted share compared to a net loss of $1.6 million or $0.15 per diluted share in last year’s fourth quarter. Net sales for the year totaled $1.26 billion, which as I indicated earlier is a record annual revenue total for Olympic Steel. Net sales increased 57% from $805 million from 2010. The tons sold metric is not really relevant for pipe and tubing sales, so we’re not including Chicago Tube and Iron’s volume in our tons-sold report. Total flat rolled tons sold increased by 15.3% in 2011 to $1.1 million from $969,000 in 2010. This outpaced industry shipments by more than 2% according to the Metals Service Center Institute. For 2011, net income increased by $22.9 million to $25 million or $2.22 per diluted share compared to net income or $2.1 million or $0.20 per diluted share for 2010. Our 2010 fourth quarter financial results included two non-recurring items that reduce earnings per share by $0.06. Fourth quarter 2011 results included an asset impairment charge of $1 million related to a building investment in a former joint venture company that was closed in 2006. The asset impairment charge reduced fourth quarter and full year 2011 earnings per share by $0.05.
Additionally, fourth quarter 2011 cost of goods sold included a $1.2 million purchase price accounting adjustment to write-up the value of certain CTI inventory to fair value at the July 1, 2011 acquisition date. The inventory adjustment negatively impacted fourth quarter and full year 2011 earnings by $0.01 a share in the fourth quarter and $0.07 for the year, respectively. Rick will provide more detail on these two items later in the call.2011 was a year of significant growth for Olympic Steel. Our CTI acquisition was immediately accretive to our earnings and accelerated our market share and distribution locations and product expansions into pipe, valves, tubes and fittings. We also executed exceptionally well on our previously announced strategic investments. Our 2011 capital spending totaled $39.5 million and included new processing equipment successful infrastructure roll outs and facility startups. Our largest and most exciting project of 2011 was a successful startup of our third temper mill located in Gary, Indiana. The temper mill became operational in December 2011 and has about 150,000 tons of incremental capacity. Now as we like to say open for business in Chicago market. We also opened our first physical facility outside of the United States in 2011 in Monterrey, Mexico and that serves our growing customer base there. Other new facilities acquired in 2011 include a second operation in Mount Sterling, Kentucky; Kansas City, Missouri; Roseville, Minnesota and Streetsboro, Ohio. Coming out of the recession we are aggressively expanding our geographic footprint and enhancing our service capability of customers and adding to our product portfolio were part of our accomplishments quite frankly. And our balance sheet remained strong with our new five year $335 million credit facility that was put into place on July 1, 2011 it provides us with a strong foundation for continued growth and the value creation. Also well, we previously announced earlier that Olympic Steel’s Board of Directors approve a regular quarterly cash dividend $0.02 per share to be paid on March 15, 2012 to shareholders of record March 1, 2012. Read the rest of this transcript for free on seekingalpha.com