Company: ZEUS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001437749-25-004742
Chunk: 145

Company: OLYMPIC STEEL INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1
Chunk 145
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33.1

      Operating expenses (c) 

     87,237

     26.0

     81,438

     22.1

      Operating income 
      
     $
     28,809

     8.6

     $
     40,692

     11.0

      (a) Includes $5,702 and $8,258 of LIFO income in 2024 and 2023, respectively. 

      (b) Gross profit is calculated as net sales less the cost of materials sold. 

      (c) Operating expenses are calculated as total costs and expenses less the cost of materials sold. 

Net sales decreased $33.6 million, or 9.1%, to $335.7  million in 2024 from $369.3  million in 2023. The decrease in net sales was due to a 11.4% decrease in average selling prices partially offset by a 2.6% increase in sales volume during 2024 due, in part to the CTB acquisition.

Cost of materials sold decreased $27.5 million, or 11.1%, to $219.7  million in 2024 from $247.2  million in 2023. The decrease in cost of materials sold is due to decreased metals pricing discussed above in Results of Operations. As a result of continued decreasing prices, during 2024, our tubular and pipe products segment recorded $5.7  million of LIFO income, compared to $8.3  million of LIFO income recorded in 2023.

As a percentage of net sales, gross profit (as defined in footnote (b) in the table above) increased to 34.6% in 2024 compared to 33.1% in 2023. As a percentage of net sales, the LIFO income recorded in 2024 increased gross profit by 1.7% compared to the LIFO income recorded in 2023, which increased gross profit by 2.2%.

Operating expenses (as defined in footnote (c) in the table above) increased $5.8 million, or 7.1%, to $87.2  million in 2024 from $81.4  million in 2023. As a percentage of net sales, operating expenses