Company: ZEUS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001437749-25-004742
Chunk: 140

Company: OLYMPIC STEEL INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1
Chunk 140
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 a percentage of net sales is due to the average costs of inventory decreasing more quickly than the average selling prices as discussed above in Results of Operations, as well as to the value-added acquisitions from 2023 having a continued positive impact on gross profit.

Operating expenses (as defined in footnote (c) in the table above) increased $7.5 million, or 1.9%, to $403.3 million in 2024 from $395.8 million in 2023. As a percentage of net sales, operating expenses increased to 20.7% in 2024 from 18.3% in 2023. Operating expenses in the specialty metals flat products segment decreased $0.2 million, operating expenses in the carbon flat products segment increased $5.3 million, operating expenses in the tubular and pipe products segment increased $5.8 million, and corporate expenses decreased $3.4 million. Operating expenses increased during 2024 as a result of the inclusion of operating expenses related to the November 2024 acquisition of Metal Works for the carbon flat products segment, the October 2023 acquisition of CTB in the tubular and pipe products segment and the absence of year-over-year employee retention credits, or ERCs, provided through CARES Act in 2023, partially offset by lower year-over-year acquisition-related fees and variable performance-based incentive compensation. 

Interest and other expense on debt totaled $16.5 million in 2024 compared to $16.0 million in 2023. Our effective borrowing rate, exclusive of deferred financing fees and commitment fees, was 6.7% in 2024 compared to 5.9% in 2023. The increased effective borrowing rate is due to higher market interest rates in 2024 when compared to 2023. Total average borrowings decreased $21.0 million, or 8.8%, to $218.4 million in 2024 from $239.4 million in 2023. 

Income before income taxes totaled $31.3 million, or 1.6% of net sales, in 2024, compared to income before taxes of $61.6 million, or 2.9% of net sales, in 2023.

An income tax provision of 26.6% was recorded in 2024, compared to an income tax provision of