Company: ZEUS
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001437749-25-024377
Chunk: 40

Company: OLYMPIC STEEL INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 40
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2024. Operating expenses increased to 28.0% of net sales in the first six months of 2025 compared to 25.9% in the first six months 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 second quarter 2025 totaled $3.9 million, or 4.9% of net sales, compared to $6.5 million, or 7.4% of net sales, in the second quarter of 2024. Operating income in the first six months 2025 totaled $8.0 million, or 5.1% of net sales, compared to $14.1 million, or 7.7% of net sales, in the first six months of 2024. 

Corporate expenses

Corporate expenses increased $0.2 million, or 4.7%, to $4.8 million in the second quarter of 2025 from $4.6 million in the second quarter of 2024. Corporate expense primarily increased due to higher year-over-year professional service fees. Corporate expenses increased $0.7 million, or 8.4%, to $9.6 million in the first six months of 2025 from $8.9 million in the first six months 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