Olympic Steel Inc (ZEUS) 2023 Q4 法說會逐字稿

Good morning, and welcome to the Olympic Steel 2023 first Fourth Quarter Financial Results Conference Call.

早安，歡迎參加奧鋼2023年第一季財務業績電話會議。

(Operator Instructions) Please note that this conference is being recorded.

（操作員說明）請注意，本次會議正在錄製中。

At this time, I'd like to hand the conference over to Rich Manson, Chief Financial Officer, and I want to steal.

這時候我想把會議交給財務長里奇曼森，我想偷。

Please go ahead, sir.

請繼續，先生。

Thank you, operator, and welcome to Olympic Steel's earnings call for the fourth quarter of 2023.

謝謝營運商，歡迎參加奧林匹克鋼鐵公司 2023 年第四季的財報電話會議。

Our call this morning will be hosted by our Chief Executive Officer, Rick Marabito, and we will also be joined by our President and Chief Operating Officer, Andrew drive.

今天早上的電話會議將由我們的執行長 Rick Marabito 主持，我們的總裁兼營運長 Andrew Drive 也將參加。

Before we begin, I have a few reminders.

在我們開始之前，我有一些提醒。

Some statements made on today's call will be predictive and are intended to be made as forward-looking within the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and may not reflect actual results.

今天的電話會議上所做的一些陳述將是預測性的，旨在根據 1995 年《私人證券訴訟改革法案》的安全港條款做出前瞻性陳述，可能不會反映實際結果。

The Company does not undertake to update such statements, changes in assumptions or changes and other factors affecting such forward.

本公司不承諾更新此類報表、假設的變更或影響此類前瞻性的其他因素的變更。

Looking statements, important assumptions, risks, uncertainties, and other factors that could cause actual results to differ materially are set forth in the Company's reports on Forms 10 K and 10 Q and press releases filed with the Securities and Exchange Commission.

本公司向美國證券交易委員會提交的 10 K 表格和 10 Q 表格報告以及新聞稿中列出了前瞻性陳述、重要假設、風險、不確定性和其他可能導致實際結果出現重大差異的因素。

During today's discussion, we may refer to adjusted net income per diluted share, EBITDA and adjusted EBITDA, which are all non-GAAP financial measures.

在今天的討論中，我們可能會提到調整後每股攤薄淨利潤、EBITDA 和調整後 EBITDA，這些都是非 GAAP 財務指標。

A reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures is provided in the press release that was issued last night can be found on our website.

昨晚發布的新聞稿中提供了這些非公認會計準則衡量指標與最直接可比較的公認會計準則財務衡量指標的調節表，您可以在我們的網站上找到。

Today's live broadcast will be archived and available for replay on Olympic Steel's website.

今天的直播將存檔並可在奧林匹克鋼鐵網站上重播。

Thanks, Rich, and good morning, everyone.

謝謝里奇，大家早安。

Thank you for joining us today to discuss Olympic Steel 2023 fourth quarter and full year results.

感謝您今天加入我們討論奧林匹克鋼鐵 2023 年第四季和全年業績。

I'll begin by talking about our 2023 performance and the strategic progress we've made over the last five years.

我首先會談談我們 2023 年的業績以及我們在過去五年中取得的策略進展。

Then Andrew will review our segment performance.

然後安德魯將回顧我們的部門表現。

And following that, Rich will discuss our financial results in more detail.

接下來，里奇將更詳細地討論我們的財務表現。

And of course, then as always, we'll open up the call for your questions.

當然，像往常一樣，我們將打開電話詢問您的問題。

It was another highly successful year for Olympic Steel.

對奧林匹克鋼鐵公司來說，這是另一個非常成功的一年。

We believe our 2023 performance is a defining statement about our Company strength and resilience.

我們相信 2023 年的業績是對我們公司實力和彈性的決定性陳述。

For the 2nd year in a row, we withstood a hot roll carbon steel index pricing decline of more than 45% during the year, as well as specialty metal surcharges that fell throughout the year.

我們連續第二年承受了年內熱卷碳鋼指數定價超過45%的跌幅，以及全年下降的特殊金屬附加費。

Yet despite these significant pricing fluctuations, we delivered on our strategy and commitment to generate consistent profitable results.

然而，儘管價格波動巨大，我們仍然履行了我們的策略和承諾，以產生持續的獲利結果。

We reported fourth quarter sales of $489 million with net income of $7.4 million and EBITDA of $20.9 million.

我們報告第四季銷售額為 4.89 億美元，淨利潤為 740 萬美元，EBITDA 為 2,090 萬美元。

All three of our business segments positively contributed to our results for both the fourth quarter and the full year.

我們的所有三個業務部門都為我們第四季度和全年的業績做出了積極貢獻。

Our pipe and tube business delivered its second most profitable year ever.

我們的管道和管材業務實現了有史以來第二個盈利最多的一年。

Our carbon business showed its resiliency in navigating the pricing pressures of 2023 with improvements in sales and gross margins and all those specialty metals space industry wide stainless steel headwinds.

我們的碳業務在應對 2023 年的定價壓力方面表現出了彈性，銷售額和毛利率均有所改善，而且所有這些特種金屬領域都面臨著不銹鋼行業的不利因素。

This segment contributed consistent positive EBITDA.

該部門持續貢獻積極的 EBITDA。

We are now five years into our strategy to build a more diversified company that delivers results and create shareholder value even under challenging market conditions.

我們的策略現已實施五年，旨在打造一家更加多元化的公司，即使在充滿挑戰的市場條件下也能取得成果並創造股東價值。

During that time, we've successfully integrated six acquisitions, each of which has added a unique value added offering to our portfolio.

在此期間，我們成功整合了六次收購，每一次收購都為我們的產品組合增添了獨特的增值產品。

We were recently named corporate deal maker of the Year by the Cleveland association for corporate growth for a metal fab acquisition in January, also strategically divested assets to further tighten our focus on higher return, higher value add products and throughout our transformation, we've stayed true to our operating disciplines.

最近，我們因1 月份收購金屬工廠而被克利夫蘭企業增長協會評為年度企業交易促成者，我們還戰略性地剝離了資產，以進一步加強我們對更高回報、更高附加價值產品的關注，在在整個轉型過程中，我們恪守我們的營運紀律。

Our success.

我們的成功。

As a result of all these actions, our inventory management and strong cash flow have fortified our balance sheet and position Olympic Steel for future growth.

由於所有這些行動，我們的庫存管理和強勁的現金流增強了我們的資產負債表，並為奧林匹克鋼鐵公司未來的成長做好了準備。

In 2023, we invested $170 million in the highly accretive metal fab and central tubing by our acquisitions and investments have produced immediate strong EBITDA returns.

2023 年，我們透過收購和投資向高度增值的金屬工廠和中央管道投資了 1.7 億美元，並立即產生了強勁的 EBITDA 回報。

However, our total debt increased by only $25 million to $190 million a year end with availability of approximately $339 million.

然而，我們的總債務在年底僅增加了 2,500 萬美元，達到 1.9 億美元，可用資金約為 3.39 億美元。

As a result, we remain in excellent position to continue to invest in higher return opportunities in the future.

因此，我們仍然處於有利地位，可以在未來繼續投資更高回報的機會。

The recent decision by our Board of Directors to increase our quarterly dividend by 20% also reflects our Company's strong financial position and the success of our strategy.

我們的董事會最近決定將季度股息增加 20%，這也反映了我們公司強勁的財務狀況和我們策略的成功。

Cumulatively, we've raised our quarterly dividend from $0.02 per share to $0.15 per share since 2022, reinforcing our commitment to deliver value to our shareholders.

自 2022 年以來，我們已將季度股息從每股 0.02 美元累積提高至每股 0.15 美元，強化了我們為股東創造價值的承諾。

Our total shareholder return for 2023 was just over 100%.

2023 年我們的股東總回報率略高於 100%。

And for the three year post COVID period, our return was over 400%.

在新冠疫情結束後的三年裡，我們的報酬率超過 400%。

I'm proud of the entire Olympic Steel team for their commitment to our strategy and the progress we've made in the past five years, and we continue to enhance our team with new hires and promotions.

我為整個奧林匹克鋼鐵團隊感到自豪，他們對我們的策略的承諾以及我們在過去五年中取得的進步，我們將繼續透過新員工和晉升來增強我們的團隊。

In January 2024, we announced the promotion of Zach Siegel to the new role of President manufactured metal products.

2024 年 1 月，我們宣布晉升 Zach Siegel 為製造金屬產品總裁的新職務。

Zach has been with the Company since 2007 and for the past six years.

Zach 自 2007 年以來一直在公司工作，並已工作六年。

These played an instrumental role in our acquisition strategy in his new role that will lead our newly created manufactured Metals Products Group. one of the growth areas of our company.

他的新角色將領導我們新創建的製造金屬產品集團，這些在我們的收購策略中發揮了重要作用。我們公司的成長領域之一。

While he remains involved companies, mergers and acquisition activity as we head into 2020 for Olympic Steel is stronger than ever.

儘管他仍然參與公司業務，但隨著進入 2020 年，奧林匹克鋼鐵公司的併購活動比以往任何時候都更加強勁。

We remain committed to our discipline around expenses, cash flow and debt.

我們仍然致力於遵守開支、現金流和債務方面的紀律。

While we continue looking for opportunities to further expand our portfolio of higher return, higher value add products through both organic growth growth and acquisitions, we're confident in our ability to build on our success in 2020 for driving profitable growth and creating value for our shareholders.

雖然我們繼續尋找機會，透過有機成長和收購進一步擴大我們的高回報、高附加價值產品組合，但我們有信心在 2020 年取得成功的基礎上，推動盈利增長並為我們的業務創造價值。股東。

So now I'll turn the call over to Andrew.

現在我將把電話轉給安德魯。

Thank you, Rick, and good morning, everyone.

謝謝你，瑞克，大家早安。

Olympic Steel's finished the year strong capping off another year of solid performance despite challenging and dynamic market conditions.

儘管市場條件充滿挑戰和動態，奧林匹克鋼鐵公司仍以強勁的表現結束了這一年，為又一年的穩健業績畫上了圓滿的句號。

As Rick noted, this performance reflects the success of our strategy and our ongoing commitment to our operating disciplines.

正如里克指出的那樣，這一業績反映了我們策略的成功以及我們對營運紀律的持續承諾。

Our adjusted EBITDA was $16.7 million for the fourth quarter and $97.6 million for the year.

第四季調整後 EBITDA 為 1,670 萬美元，全年調整後 EBITDA 為 9,760 萬美元。

Our pipe and tube segment had another exceptional quarter.

我們的管道和管材部門又迎來了一個出色的季度。

This segment completed its second best full year, and it's 109 year history with adjusted EBITDA of $40.3 million.

該部門完成了第二好的全年成績，已有 109 年的歷史，調整後 EBITDA 為 4030 萬美元。

Our strategy to increase the amount of value added mix and upgrades and additions to our laser fleet resulted in gross margins were remaining above 30% throughout 2023, resulting from the team's focus on margin improvement through fabricated product growth.

我們的策略是增加增值組合以及升級和增加雷射機群，使毛利率在 2023 年全年保持在 30% 以上，這是由於團隊專注於透過製造產品成長來提高利潤率。

We expect margins will continue to strengthen with the addition of central tubing bar.

我們預計隨著中央管條的增加，利潤率將繼續增強。

We completed the acquisition of CTB. in October of 2023, and the integration has gone smoothly.

我們完成了對CTB的收購。 2023年10月，整合進展順利。

The business fit seamlessly into our growth plans, which will further enhance the performance of the pipe and tube segment.

該業務無縫融入我們的成長計劃，這將進一步提高管道部門的績效。

Turning to our Carbon segment, along with the contributions from metal fab acquisition, carbon delivered another solid performance while navigating some unusual market dynamics in a typical year.

談到我們的碳纖維部門，加上金屬工廠收購的貢獻，碳纖維在典型的一年中在一些不尋常的市場動態中表現出色，同時也帶來了另一個穩健的表現。

Fourth quarter carbon pricing falls during the seasonally slowest quarter, but in 2023, we saw index pricing fall 45% from April through September description of the UAW strike settlement.

第四季碳定價在季節性最慢的季度下降，但到 2023 年，我們看到 UAW 罷工和解描述的 4 月至 9 月的指數定價下降了 45%。

During the fourth quarter, the index pricing increased 65%, which caused some customers to buy in advance of index pricing increases on contractual business for the year first quarter of 2024, as well as the early settlement of many First Quarter and First Half 2024 contracts.

第四季度，指數定價上漲了65%，導致部分客戶提前買入2024年第一季合約業務的指數定價，以及許多2024年第一季和上半年合約的提前結算。

As a result, fourth quarter sales were down less than 3% sequentially from the third quarter rather than the traditional 6% to 8% decline.

因此，第四季銷售額較第三季下降不到 3%，而不是傳統的 6% 至 8% 下降。

Despite all those market challenges and unusual circumstances, the Carbon segment earned adjusted EBITDA of $7.9 million in the fourth quarter.

儘管存在這些市場挑戰和不尋常的情況，碳部門在第四季度調整後 EBITDA 仍達到 790 萬美元。

Carbon shipments were up 8% in the fourth quarter from a year earlier and up 6% for the full year.

第四季碳排放量較去年同期成長 8%，全年成長 6%。

In particular, we saw growth in 2023 in higher margin, cold rolled and coated products as well as through increased fabrication business.

特別是，我們看到 2023 年利潤率較高的冷軋和塗層產品以及製造業務的增加實現了成長。

Specialty Metals has remained a meaningful contributor in the fourth quarter and recorded its third most profitable full year EBITDA as this segment continued to face it industry wide stainless steel headwinds and falling nickel prices.

特種金屬在第四季度仍然是一個重要的貢獻者，並創下了全年利潤第三高的 EBITDA，因為該部門繼續面臨全行業不銹鋼的不利因素和鎳價下跌。

We are very proud of the accomplishments of our specialty metals team and our performance under challenging market conditions.

我們對我們的特殊金屬團隊所取得的成就以及我們在充滿挑戰的市場條件下的表現感到非常自豪。

Turning to end markets in early 2024, we are seeing our industrial OEM.s buying as forecasted.

轉向 2024 年初的終端市場，我們看到工業 OEM 的購買量符合預期。

The same is true for Food Equipment, truck, trailer storage, tank HVAC and appliance customers.

對於食品設備、卡車、拖車存放、罐式暖通空調和電器客戶也是如此。

We are seeing very strong demand for industrial fabrication, especially for data centers.

我們看到對工業製造的需求非常強勁，尤其是資料中心。

Our newest fabrication facilities in Buford, Georgia and Bartlett, Illinois, are performing extremely well.

我們位於喬治亞州佈福德和伊利諾伊州巴特利特的最新製造工廠表現非常出色。

We thank all of our employees for a successful 2023, and we expect 2024 to be another solid year.

我們感謝所有員工在 2023 年取得了成功，我們預計 2024 年將是另一個堅實的一年。

Now I'll turn the call over to Rich.

現在我將把電話轉給 Rich。

Thank you, Andrew. 2020 as we demonstrated our ability to deliver consistent, profitable results in all markets.

謝謝你，安德魯。 2020 年，我們展示了我們在所有市場提供一致、獲利結果的能力。

Before I discuss the results, I want to remind you that year over year comparisons will be more difficult due to the 2023 acquisitions of metal fab and central tubing bar.

在討論結果之前，我想提醒您，由於 2023 年收購了金屬工廠和中央管材，因此同比比較將更加困難。

For the quarter, net income totaled $7.4 million compared to $4 million in the fourth quarter of 2022.

本季淨利潤總計 740 萬美元，而 2022 年第四季淨利為 400 萬美元。

Adjusted EBITDA in the quarter was $16.7 million compared to $11.9 million in the prior year period.

本季調整後 EBITDA 為 1,670 萬美元，去年同期為 1,190 萬美元。

Fourth quarter 2023 results include $5.3 million of Weibo pretax income compared with $900,000 of life of pretax income in the same period a year ago.

2023 年第四季的業績包括微博稅前收入 530 萬美元，而去年同期的稅前收入為 90 萬美元。

The fourth quarter 2020 results also include $1.1 million of acquisition related charges.

2020 年第四季業績還包括 110 萬美元的收購相關費用。

Consolidated operating expenses for the fourth quarter totaled $100.4 million compared to $81.6 million in the fourth quarter of 2022.

第四季的綜合營運費用總計 1.004 億美元，而 2022 年第四季的綜合營運費用為 8,160 萬美元。

Our fourth quarter operating expenses reflect the additional metal fab and CTB., which do not report tons sold.

我們第四季度的營運支出反映了額外的金屬工廠和 CTB，它們沒有報告銷售量。

Therefore, operating expenses per ton at the consolidated level and for the Carbon segment will appear higher year over year.

因此，綜合層面和碳纖維業務的每噸營運費用將較去年同期上升。

Consolidated operating expenses for the fourth quarter include $10.1 million of metal fab operating expenses, $5 million of CTB. operating expenses, higher warehouse and distribution expense associated with 5% higher year over year volume and $600,000 of lower incentive expenses compared to the fourth quarter of 2022.

第四季的綜合營運支出包括 1,010 萬美元的金屬工廠營運支出和 500 萬美元的 CTB。與 2022 年第四季相比，營運費用、與年增 5% 相關的倉儲和配送費用增加以及激勵費用減少 60 萬美元。

Inflationary pressures during the fourth quarter and the second half of 2023 were negligible.

2023年第四季和下半年的通膨壓力可以忽略不計。

As a reminder, the CTB. results for the fourth quarter included $1.1 million of deal costs and acquisition related inventory fair market write-up amortization.

提醒一下，CTB。第四季的業績包括 110 萬美元的交易成本和收購相關的庫存公平市場攤銷。

As Rick mentioned earlier, our inventory management and strong cash flow of helped us to continue to fortify our balance sheet.

正如里克之前提到的，我們的庫存管理和強勁的現金流幫助我們繼續強化我們的資產負債表。

We ended the year with debt of $190 million and availability of approximately $339 million, keeping us in an excellent position to continue investing in higher return opportunities.

截至年底，我們的債務為 1.9 億美元，可用資金約為 3.39 億美元，這使我們處於繼續投資更高回報機會的絕佳位置。

Our capital expenditures totaled $21.3 million the fourth quarter of 2023 compared to depreciation of $21.5 million.

2023 年第四季我們的資本支出總計 2,130 萬美元，而折舊額為 2,150 萬美元。

Equipment lead times remain long, and we estimate that 2024 capital expenditures will be approximately $35 million as we continue to make investments in automation, fabrication and investments that result in higher gross margin opportunities and more consistent results.

設備交付週期仍然很長，我們預計 2024 年的資本支出將約為 3,500 萬美元，因為我們將繼續在自動化、製造和投資方面進行投資，從而帶來更高的毛利率機會和更一致的結果。

Our fourth quarter 2023 effective tax rate was 23.3% compared to 18.6% in the fourth quarter of 2022.

2023 年第四季的有效稅率為 23.3%，而 2022 年第四季的有效稅率為 18.6%。

We expect our 2024 tax rate to approximate 27.5% to 28.5%.

我們預計 2024 年的稅率約為 27.5% 至 28.5%。

Also during the fourth quarter, we paid our quarterly dividend of $0.125 per share.

同樣在第四季度，我們支付了每股 0.125 美元的季度股息。

As outlined in yesterday's earnings release, our Board of Directors approved a $0.15 per share dividend, which is an increase of $0.025 per share from the Company's previous quarterly dividend.

正如昨天的財報所述，我們的董事會批准了每股 0.15 美元的股息，比該公司先前的季度股息每股增加了 0.025 美元。

The dividend is payable on March 15, 2024 to shareholders as of March 4, 2024.

該股將於2024年3月15日向截至2024年3月4日的股東支付。

We have now paid dividends for our shareholders for 75 consecutive quarters, although we faced significant pricing headwinds and other market challenges throughout 2023, the success of our strategy and the strength of our company enabled us to deliver consistent results and reward our shareholders.

儘管我們在 2023 年面臨著巨大的定價阻力和其他市場挑戰，但我們現在已連續 75 個季度為股東支付股息，但我們策略的成功和公司的實力使我們能夠提供一致的業績並回報股東。

We are excited about the future and look forward to what we can achieve in 2024 and beyond.

我們對未來感到興奮，並期待 2024 年及以後能夠取得的成就。

Now.

現在。

Operator, please open up the call for questions.

接線員，請撥打電話詢問問題。

(Operator Instructions) And our first question this morning is from the line of Phil Gibbs with KeyBanc Capital Markets.

（操作員說明）今天早上我們的第一個問題來自 KeyBanc Capital Markets 的 Phil Gibbs。

Please proceed with your questions.

請繼續回答您的問題。

Gentlemen.

先生們。

Good morning.

早安.

We're in Evansville.

我們在埃文斯維爾。

A question on your recent acquisition of Central.

關於您最近收購 Central 的問題。

And I know you just building on on how it fits within the existing from a bandwidth of the pipeline to franchise and and then how you may may look at that as a result of future platform to due to maybe expand your offerings elsewhere?

我知道你只是建立在它如何適應現有的從管道頻寬到特許經營的基礎上，然後你會如何看待未來平台的結果，因為可能會在其他地方擴展你的產品？

So Phil, this is Andrew.

菲爾，這是安德魯。

So on central to fits beautifully under our Chicago Tube and Iron segment is the bulk, as you know, of the business that they're doing is fabricated tubes.

因此，如您所知，在我們的芝加哥管材和鋼鐵部門中，最重要的是他們所做的大部分業務是製造管材。

It's a growth part of what we're looking for under some ships, private tube.

這是我們在一些船舶、私人管道下尋找的成長部分。

And um, it also allowed us to get into two areas that we were not done in Little Rock as well as in Tulsa.

嗯，它也讓我們進入了小石城和塔爾薩沒有完成的兩個領域。

And so the facilities up there when you go into our fabrication facilities have a very similar equipment to what you guided to has in.

因此，當您進入我們的製造工廠時，那裡的設備與您所引導的設備非常相似。

So it was a very natural fit to talk to them under that segment.

因此，在該部分與他們交談是非常自然的。

I'd say and Justin Ward, who use was the previous owner of CTB. is a fantastic leader who stayed on with us.

我想說的是賈斯汀沃德（Justin Ward），他是 CTB 的前所有者。是一位出色的領導者，他一直和我們在一起。

In term, we've got a really big plans to continue to use the NCTI.s slash CTB. platform to do more value-added processing in a in a big chunk for the CTBCDTB. business is datacenters.

從長遠來看，我們有一個非常大的計劃來繼續使用 NCTI.s 的斜線 CTB。平台為CTBCDTB做更多的大塊加值處理。業務是資料中心。

Yes.

是的。

So we're excited about the growth there.

因此，我們對那裡的成長感到興奮。

How are you guys looking at the just the value add component of the business overall in there as a percentage of revenue as a percentage of volume?

你們如何看待整個業務的增值部分佔收入的百分比以及銷售的百分比？

I know on the volume standpoint, it's probably not massive, but from a revenue standpoint, it certainly can can move and move the dial.

我知道從數量的角度來看，它可能並不大，但從收入的角度來看，它肯定可以移動並移動錶盤。

Have a percentage of revenue, maybe more where you are where you were and why do you want to go

擁有一定比例的收入，也許更多的是你現在的位置以及為什麼想去

Philips reg?

飛利浦 reg?

I think what we've talked about is the focus is not generally on revenue that focuses on gross margin.

我認為我們所討論的重點通常不是關注毛利率而是收入。

And I think what we've said in our pipe and tube segment is that they want 50% of their gross margin being generated by voting close right now with the acquisition of CTD.

我認為我們在管道和管材領域所說的是，他們希望透過現在投票結束收購 CTD 來產生 50% 的毛利率。

And then overall, maybe, Andrew, you talked a lot of.

總的來說，安德魯，也許你談了很多。

Yes, fabrication and really the growth we're seeing, especially on not only in the pipe into but also within the stainless and really in the carbon side or.

是的，我們看到了製造和真正的成長，特別是不僅在管道內，而且在不銹鋼內，甚至在碳側。

That's right.

這是正確的。

And so Phil, as you know, we dedicated two facilities, one down in and do for Georgia, the other end Bartlett, Illinois, that they are strictly fabrication facilities.

所以，菲爾，如你所知，我們專用了兩個設施，一個在喬治亞州，另一端在伊利諾伊州巴特利特，它們是嚴格的製造設施。

But if you go through a number of our other large facilities, you will also see some value added equipment from in conjunction with maybe some of our more traditional have quit Mint as well.

但是，如果您瀏覽我們的其他一些大型設施，您還會看到一些增值設備，也許我們的一些更傳統的設備也已經退出了 Mint。

It is a part of our business feel that we see growing very rapidly.

這是我們業務的一部分，我們看到成長非常迅速。

We brought on this year and hired a new Vice President of a fabrication, some exits.

今年我們聘請了一位新的副總裁，其中一些退出了。

Gerald had a industrial OEM background to join us and help us accelerate this of these processes.

Gerald 擁有工業 OEM 背景，加入我們並幫助我們加速這些流程。

And it is the demand coming today, in particular from the industrial OEM has really put us in a terrific position to convert what was originally rectangles going to the customer to now value added parts in a lot of cases of welded finished goods that go directly into the assemblies of these industrial OEMs.

今天的需求，特別是來自工業原始設備製造商的需求，確實使我們處於一個絕佳的位置，可以將最初提供給客戶的矩形零件轉變為現在的增值零件，在許多焊接成品中直接進入這些工業原始設備製造商的組件。

On the specialty metals side, we're seeing that equally in food and food equipment and in truck trailer in particular has been a has been really growth area for that.

在特殊金屬方面，我們看到食品和食品設備，尤其是卡車拖車領域一直是一個真正成長的領域。

Thank you.

謝謝。

And then just on the overall demand environment for what are your customers telling you to expect and not in the new year here?

然後，就整體需求環境而言，您的客戶告訴您期望什麼，而不是在新的一年？

Yes, I'd say the the industrial OEM, when we towards the end of last year, the forecasts were that they would have seen a a down year in their forecasts from our accurate.

是的，我想說的是工業原始設備製造商，當我們去年底時，預測他們的預測將比我們的準確預測下降。

We've seen certainly at the beginning of the year that the volumes are down, not horribly, but there's certainly downtown come on the specialty metals side.

我們在今年年初確實看到了成交量的下降，雖然不是很嚴重，但市中心的特殊金屬方面肯定有所下降。

Truck Trailer, again, it's down a little bit, but not off significantly.

卡車拖車又下降了一點，但下降幅度並不大。

Food Equipment is actually starting to come back on.

食品設備實際上開始恢復運作。

So we're seeing we're seeing some some resurgence from our traditional customers.

因此，我們看到我們的傳統客戶有所復甦。

The finance business has been pretty steady.

金融業務一直相當穩定。

So we as we think about growth, we think that the first quarter growth is going to be pretty good compared to fourth quarter, probably up tonnage wise in the 10% to 12% range versus a of a pretty strong fourth quarter, relatively speaking from what has been traditional.

因此，當我們考慮成長時，我們認為與第四季度相比，第一季的成長將相當不錯，相對於第四季度相當強勁的噸位而言，可能會成長 10% 至 12%。什麼是傳統的。

So we're seeing them.

所以我們看到了他們。

We're seeing started the year be pretty good.

我們看到今年年初的情況相當不錯。

And this is how we kind of see the year.

這就是我們對這一年的看法。

And I think the end of the item to really note, as Andrew talked about a couple of the end industries where our customers have forecasted slightly softer volume.

我認為該項目的結尾確實值得注意，正如安德魯談到的幾個終端行業，我們的客戶預測這些行業的銷量略有下降。

Some were more than offsetting that with the new business and a lot of that new businesses, what Andrew talked about a few minutes ago on the fabrication side.

有些新業務和許多新業務足以抵消這一點，安德魯幾分鐘前在製造方面談到了這一點。

So that's how we get to the around the tender 10%, 11%, 12% growth in the first quarter sequentially on we're onboarding a lot of new business.

這就是我們如何在第一季連續實現 10%、11%、12% 左右的成長，因為我們正在進行大量新業務。

It's a new product.

這是一個新產品。

I mean, our galvanized business, some really as has taken off.

我的意思是，我們的鍍鋅業務，有些確實已經起飛。

And so we've done a lot of focus on our tandem products and cold-rolled and galvanized certainly have some will accelerate this year.

因此，我們在串聯產品上做了很多工作，冷軋和鍍鋅產品今年肯定會加速發展。

Thanks, guys.

多謝你們。

And then last question for me.

然後是我的最後一個問題。

So just thinking about the puts and takes of the call it, the carbon sheet contract business seems like it should be lagging the spot these fields, like obviously it's been moving down.

因此，只要考慮一下看漲期權和看跌期權，碳板合約業務似乎應該落後於這些領域，顯然它一直在下降。

So you've got some pluses and minuses there.

所以你有一些優點和缺點。

The Lobo, I would imagine kind of neutralizes in Q1, stainless feels like it's sort of stabilizing from a pricing standpoint.

我想 Lobo 在第一季會有所中和，從定價的角度來看，不銹鋼感覺有點穩定。

You got the volume growth on final, think inflation at the margin is accelerating too much from here.

你得到了最終的成交量增長，認為邊際通膨從這裡開始加速太多。

So how do we think about the just the just the growth, I guess, despite though some ForEx low versus the fourth quarter?

那麼，我想，儘管外匯交易與第四季相比有些低，但我們如何看待成長？

Yes.

是的。

Phil, it's Rich.

菲爾，我是里奇。

And I think you kind of hit it spot on.

我認為你說得恰到好處。

You've kind of got things going in different directions with the contract and the spot business.

合約業務和現貨業務的發展有些不同。

I think what you'll see is with the reset of index pricing higher on January first, you typically come out of the gates a little stronger with gross margin and you kind of see it fade as you go through rest of the quarter.

我認為你會看到的是，隨著一月份第一天指數定價的重新設定，你的毛利率通常會稍強一些，但隨著本季度剩餘時間的推移，你會看到它逐漸消失。

I would add on the life. oh, keep in mind that life is only on our pipe and tube segment, and we had a pretty substantial amount of life of income in the fourth quarter.

我會補充生活。哦，請記住，生命只存在於我們的管道和管材領域，而我們在第四季度的收入相當可觀。

They tend to lag I index pricing by three to six months.

它們往往比 I 指數定價滯後三到六個月。

And so we probably will see higher priced inventory coming in for pipe and tube in the first half of the year.

因此，我們可能會在今年上半年看到價格較高的管材庫存。

You could actually lead to a little bit of life expense over the first half.

實際上，你可能會在上半年產生一些生活開支。

Thank you.

謝謝。

Our next question's from the line of Dave strong Stonegate.

我們的下一個問題來自 Dave Strong Stonegate。

Please save your questions.

請保存您的問題。

Good morning.

早安.

Good morning to written on.

早上好，要寫在上面。

Just to kind of follow-up on Michael's earlier question about CTP. and your M&A outlook in OpEx is continuing to build a diversified business, or are there any segments of your business that you would like to see more diversified?

只是對 Michael 之前關於 CTP 的問題進行跟進。您在營運支出方面的併購前景是繼續打造多元化業務，或者您希望您的業務中有哪些部分更加多元化？

And are there any thoughts of addressing that in the M&A market?

在併購市場中是否有解決這個問題的想法？

Yes, Dave, this is Rick.

是的，戴夫，這是瑞克。

So first, generally, our overall strategy and through M&A as well as CapEx, we like all three of our business segments.

因此，首先，總的來說，我們的整體策略以及透過併購和資本支出，我們喜歡我們的所有三個業務部門。

So our intent is to grow all three of them on, you know, we've had probably until CTB., we had a little bit of a greater focus success rate in in terms of specialty metals and carbon in on the acquisition side.

因此，我們的目的是發展這三個領域，你知道，我們可能在 CTB 之前就已經擁有了，在收購方面，我們在特種金屬和碳方面取得了更大的成功率。

That's why we were thrilled really on to add CTB. to the mix.

這就是為什麼我們對添加 CTB 感到非常興奮。混合。

But strategically, we're looking to grow all three of them through a balanced approach on CapEx and acquisitions from.

但從策略上講，我們希望透過資本支出和收購的平衡方法來發展這三家公司。

Obviously, if you look at some of that recent acquisitions we've done, we really are gravitating towards those types of companies that really have a consistent return, high return on companies that we can add a good amount of synergy to through our our existing operations.

Obviously, if you look at some of that recent acquisitions we've done, we really are gravitating towards those types of companies that really have a consistent return, high return on companies that we can add a good amount of synergy to through our our existing營運.

So I'd say we're taking a really balanced approach, and we'd like to grow all three segments through and through acquisition.

所以我想說，我們正在採取一種真正平衡的方法，我們希望透過收購來發展所有三個細分市場。

And while we're doing that, we're going to continue to do what you saw us do, which is add fab standalone fabricating facilities adjacent to some of our metal fabricating facilities.

在我們這樣做的同時，我們將繼續做您看到我們所做的事情，即在我們的一些金屬製造設施附近添加晶圓廠獨立製造設施。

So we like that model as well.

所以我們也喜歡這個模型。

Okay, helpful.

好的，有幫助。

Thank you.

謝謝。

And then just more in an industry wide level, what are you seeing in terms of inventory levels at the mills?

然後，在整個行業範圍內，您對工廠的庫存水準有何看法？

And how do you factor this?

你如何考慮這個因素？

And when considering demand going into 2024,

當考慮到 2024 年的需求時，

this is Andrew.

這是安德魯。

We've seen lead times from the mills, the, um, from the carbon males in particular, which we've seen lead times come in a little bit hot rolled today is call it in the four to six week time period.

我們已經看到了鋼廠的交貨時間，嗯，特別是碳公鋼的交貨時間，我們看到今天熱軋的交貨時間是在四到六週的時間內。

That's down.

那就下來了。

If you go back about a four to six weeks ago was probably more in the six to six week period.

如果你回到大約四到六週前，可能更多的是六到六週期間。

Same thing for Tandem products, stainless and aluminum has been very steady.

Tandem 產品也是如此，不銹鋼和鋁材一直非常穩定。

So we're seeing the mills are pretty consistent today with a with deliveries from probably on the on the on the shorter side.

因此，我們看到工廠今天的交貨情況相當一致，交貨量可能在較短的一側。

That's very helpful.

這非常有幫助。

Thank you.

謝謝。

Thank you.

謝謝。

As a reminder, to ask a question today, you may press star one for the next question is from the line of Chris Sakai with Singular Research.

提醒一下，今天要問問題，您可以按星號 1，下一個問題來自 Singular Research 的 Chris Sakai。

Cedar questions.

雪鬆的問題。

Hi, good morning.

早安.

Morning, Rob, since all the question on on specialty metals than the stainless steel headwinds always, but expecting to see those regions.

早上好，羅布，因為所有的問題都集中在特種金屬上，而不是不銹鋼的逆風上，但希望看到這些地區。

Well, I think, Chris, what you've seen is nickel prices have hovered right in that 750 range on and so that they've historically at least what we've seen in the last, you know, two, three years, some are a little bit lower, but again, where our inventory is appropriate, our mill lead times are known are pretty a pretty good.

好吧，克里斯，我認為，你所看到的是鎳價一直徘徊在750 的範圍內，因此從歷史上看，它們至少是我們過去所看到的，你知道，兩年、三年，有些有點低，但同樣，在我們的庫存合適的情況下，我們的工廠交貨時間眾所周知是相當不錯的。

The imports are certainly going to continue on.

進口肯定會繼續下去。

And so I would say that we excel expected 24 is going to be a really good debt will be a good growth year for specialty metals.

因此，我想說，我們超出預期，24 年將是一個非常好的債務年，對於特種金屬來說將是一個良好的增長年。

Okay, thanks.

好的謝謝。

And then can you comment on the tube and pipe?

那你能評論一下管材嗎？

What were the main driver for the good quarter this as sustainable going forward?

推動這一季度永續發展的主要動力是什麼？

Sure, Chris, it's Rich.

當然，克里斯，我是里奇。

And I think as we've talked throughout the year, that's a pipe and tube, continued focus on value added work and the continuing of OEMs to outsource more work to us has been a huge factor in driving their gross margins above 30% consistently for the year.

我認為，正如我們全年所討論的那樣，這是一個管子和管子，持續關注增值工作以及 OEM 繼續將更多工作外包給我們，是推動他們的毛利率持續超過 30% 的一個重要因素。那一年。

Additionally, the fourth quarter, you see an additional bump from having CT. be included in those results.

此外，在第四季度，您會看到 CT 帶來的額外提升。包含在這些結果中。

We're really excited about Keep in mind, as Rich said, and you saw on the earnings release, we acquired CTB. in the fourth quarter.

我們對 Keep in mind 感到非常興奮，正如 Rich 所說，您在財報發布中看到，我們收購了 CTB。在第四季。

So our results actually had some acquisition related costs.

所以我們的結果其實有一些與收購相關的成本。

So we're excited for '24 to have the full year impact of CTB. in the pipe and tube segment.

因此，我們很高興 '24 能夠對 CTB 產生全年影響。在管道和管材部分。

So that's certainly a positive.

所以這當然是正面的。

Okay.

好的。

Sounds great.

聽起來很棒。

And last one from me on the for 2020, for what sort of what can we generally expect as far as acquisitions are concerned, our divestiture of will it be a blend of up?

我關於 2020 年的最後一個問題是，就收購而言，我們通常可以期待什麼樣的結果，我們的剝離是否會是一種混合？

Yes, Chris, this is correct.

是的，克里斯，這是正確的。

Right now, we have really nothing that we're looking at on the divestiture side, certainly on the acquisition side, as we commented, we've made six acquisitions in the last five years.

目前，我們在剝離方面確實沒有什麼可考慮的，當然在收購方面，正如我們所評論的，我們在過去五年中進行了六次收購。

That is definitely piece of our strategy going forward or active on the entire M&A marketplace for models really broadly due to the economic environment, the interest rate environment, the back half of last year seemed to slow a little seems like it's picking up a little bit.

這絕對是我們未來策略的一部分，或者在整個併購市場上活躍的模型，由於經濟環境、利率環境，去年下半年似乎有點放緩，似乎正在加快一點。

But then that is a and a key piece of our strategy going forward.

但這是我們未來策略的關鍵部分。

And will remain and will remain active.

並將繼續並將繼續保持活躍。

Looking for the good fits that we've outlined.

尋找我們概述的最佳搭配。

Okay.

好的。

Thanks for that.

感謝那。

Thank you.

謝謝。

At this time, we've reached the end there, a question and answer session, and I'll turn the floor back to Rick Marabito for closing remarks.

現在，我們的問答環節已經結束，我將請里克·馬拉比托 (Rick Marabito) 致結束語。

Thank you, operator, and thank you all for joining us on our call this morning.

謝謝接線員，也謝謝大家今天早上加入我們的電話會議。

We appreciate your continued interest in Olympic Steel, and we look forward to speaking with you again next quarter.

我們感謝您對奧林匹克鋼鐵的持續關注，我們期待下季度再次與您交談。

Thanks.

謝謝。

Have a great day, everybody.

祝大家有美好的一天。

Thank you.

謝謝。

This will conclude today's conference.

今天的會議到此結束。

You may disconnect your lines at this time.

此時您可以斷開線路。

Thank you for your participation.

感謝您的參與。