Company: ZEUS
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001437749-25-014325
Chunk: 35

Company: OLYMPIC STEEL INC
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 35
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% in the first quarter of 2024. The decrease in operating expenses on a dollar basis was primarily due to lower variable performance-based incentive compensation and lower operating expenses associated with lower shipments. 

Operating income in the first quarter 2025 totaled $4.1 million, or 5.4% of net sales, compared to $7.6 million, or 7.9% of net sales, in the first quarter of 2024. 

Corporate expenses

Corporate expenses increased $0.5 million, or 12.4%, to $4.8 million in the first quarter of 2025 from $4.3 million in the first quarter of 2024. Corporate expense primarily increased due to higher year-over-year professional service fees.

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Liquidity, Capital Resources and Cash Flows

Our principal capital requirements include funding working capital needs, purchasing, upgrading and acquiring processing equipment and facilities, making acquisitions and paying dividends. We use cash generated from operations and borrowings under our ABL Credit Facility to fund these requirements.

We believe that funds available under our ABL Credit Facility, together with funds generated from operations, will be sufficient to provide us with the liquidity necessary to fund anticipated working capital requirements, capital expenditure requirements, our dividend payments, and any share repurchases and business acquisitions over at least the next 12 months and for the foreseeable future thereafter. In the future, we may, as part of our business strategy, acquire and dispose of assets or other companies in the same or complementary lines of business, or enter into or exit strategic alliances and joint ventures. Accordingly, the timing and size of our capital requirements are subject to change as business conditions warrant and opportunities arise.

Operating Activities

For the three months ended March 31, 2025, we generated $49.4 million of net cash from operations, of which $7.7 million was generated from operating activities and $41.7 million was generated from working capital. For the three months ended March 31, 2024, we used $2.6 million of net cash for operations, of which $16.3 million was generated from operating activities and $18.9 million was used for working capital requirements.

Net cash from operating activities totaled $7.7 million during the first three months of 2025 and was mainly comprised of net income of $2.5 million, the non-c