Company: ZEUS
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001437749-25-014325
Chunk: 34

Company: OLYMPIC STEEL INC
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 34
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627

     7.9

(a) Includes $400 of LIFO expense, respectively, for the three months ended March 31, 2024.

(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 $19.0 million, or 19.7%, to $77.2 million in the first quarter of 2025 from $96.1 million in the first quarter of 2024.  The decrease is a result of a 9.2% decrease in average selling prices and a 11.6% decrease in shipping volume during the first quarter of 2025 compared to the first quarter of 2024. 

Cost of materials sold decreased $14.0 million, or 21.7%, to $50.4 million in the first quarter of 2025 from $64.3 million in the first quarter of 2024. We did not record LIFO income or expense during the three months ended March 31, 2025. During the three months ended March 31, 2024, we recorded $0.4 million of LIFO expense. The decrease in cost of materials sold was due to the decreased industry metals pricing discussed above in Results of Operations and the 11.6% decrease in shipping volume.

As a percentage of net sales, gross profit (as defined in footnote (b) in the table above) increased to 34.7% in the first quarter of 2025 compared to 33.1% in the first quarter of 2024.  As a percentage of net sales, the LIFO expense recorded in the first quarter of 2024 reduced gross profit by 0.4%. The increase in the gross profit as a percentage of net sales in the first quarter of 2025 when compared to the first quarter of 2024 was due to average cost of inventory decreasing more than the average selling prices. 

Operating expenses in the first quarter of 2025 decreased $1.5 million, or 6.3%, to $22.7 million from $24.2 million in the first quarter of 2024. Operating expenses increased to 29.3% of net sales in the first quarter of 2025 compared to 25.2