Company: ZEUS
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001437749-25-014325
Chunk: 29

Company: OLYMPIC STEEL INC
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 29
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 gross profit (as defined in footnote (b) in the table above) increased to 24.0% in the first quarter of 2025 from 22.6% in the first quarter of 2024. The increase in the gross profit as a percentage of net sales is due to the average cost of inventory decreasing more than the average selling prices. 

Operating expenses in the first quarter of 2025 increased $7.5 million, or 7.3%, to $110.7 million from $103.2 million in the first quarter of 2024. As a percentage of net sales, operating expenses increased to 22.4% for the first quarter of 2025 from 19.6% in the first quarter of 2024. Operating expenses in the specialty metals flat products segment increased $0.1 million, operating expenses in the carbon flat products segment increased $8.4 million, operating expenses in the tubular and pipe products segment decreased $1.5 million and Corporate expenses increased $0.5 million in the first quarter of 2025 compared to the first quarter of 2024. The increase in operating expenses on a dollar basis was primarily attributable to the inclusion of MetalWorks operating expenses in 2025 and increased variable operating expenses due to increased sales volume.

Interest and other expense on debt totaled $4.2 million, or 0.9% of net sales, in the first quarter of 2025 compared to $4.0 million, or 0.7% of net sales, in the first quarter of 2024. The increase in the first three months of 2025 compared to the first three months of 2024 was due to higher average borrowings partially offset by a lower effective borrowing rate. Our effective borrowing rate, exclusive of deferred financing fees and commitment fees, was 5.8%  for the first three months of 2025 compared to 7.0% for the first three months of 2024.

In the first quarter of 2025, income before income taxes totaled $3.6 million compared to income before income taxes of $11.9 million in the first quarter of 2024. 

An income tax provision of 30.1% was recorded for the first quarter of 2025, compared to an income tax provision of 27.0% for the first quarter of 202