Olympic Steel Inc (ZEUS) 2024 Q1 法說會逐字稿

Good morning, and welcome to the Olympic Steel 2024 first quarter financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded. At this time, I would like to hand the conference call over to Rich Mason, Chief Financial Officer at Olympic Steel. Please go ahead.

早安，歡迎參加奧林匹克鋼鐵2024年第一季財務業績電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在，我想將電話會議交給奧林匹克鋼鐵公司財務長 Rich Mason。請繼續。

Thank you, operator. Welcome to Olympic Steel's earnings call for the first quarter of 2024. 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 Greiff.

謝謝你，接線生。歡迎參加奧林匹克鋼鐵公司 2024 年第一季的財報電話會議。

Before we begin, I have a few reminders. 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. The company does not undertake to update such statements, changes in assumptions or changes in other factors affecting such forward-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 the press releases filed with the Securities and Exchange Commission 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. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is provided in the press release that was issued last night and can be found on our website. Today's live broadcast will be archived and available for replay on Olympic Steel's website.

在我們開始之前，我有一些提醒。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。本公司不承諾更新此類陳述、假設的變化或影響此類前瞻性陳述的其他因素的變化，公司報告中列出了可能導致實際結果產生重大差異的重要假設、風險、不確定性和其他因素在今天討論期間向美國證券交易委員會提交的表格10-K 和10-Q 以及新聞稿中，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。昨晚發布的新聞稿中提供了這些非公認會計準則衡量標準與最直接可比較的公認會計準則衡量標準的對賬，並且可以在我們的網站上找到。今天的直播將被存檔並可在奧林匹克鋼鐵網站上重播。

At this time, I'll turn the call over to Rick.

這時候，我會把電話轉給里克。

Thank you, Rich, and good morning, everyone. Thank you for joining us today to discuss Olympic Steel's 2024 first quarter results. I'll begin by talking about the solid results we delivered in the first quarter and how our strategy to diversify and expand into higher value added processing and manufactured metal products enables us to consistently deliver positive results regardless of market conditions. Then Andrew will review our segment performance and following that, Rich will discuss our financial results in more detail and then as always, we will open up the call for your questions.

謝謝里奇，大家早安。感謝您今天加入我們討論奧林匹克鋼鐵 2024 年第一季業績。我將首先討論我們在第一季取得的紮實成果，以及我們的多元化策略和擴展到更高附加價值的加工和製造金屬產品的策略如何使我們能夠始終如一地取得積極的成果，無論市場狀況如何。然後安德魯將回顧我們的部門業績，隨後里奇將更詳細地討論我們的財務業績，然後像往常一樣，我們將開始電話詢問您的問題。

Olympic Steel delivered a strong start to 2024 despite challenging market conditions. During the first quarter, we reported first quarter sales of $527 million and net income of $8.7 million, and all segments contributed to our adjusted EBITDA of $23.7 million. Our shipping volumes increased 9% sequentially from the fourth quarter of 2023, and we maintained our margins despite unusual declining pricing dynamics for the first quarter we typically start the new year in a strengthening market with increasing pricing, and that trend usually continues into the second quarter. However, this year we saw index pricing for hot-rolled steel fall more than 31% from January through mid-March, while stainless steel surcharges also fell throughout the quarter.

儘管市場條件充滿挑戰，奧林匹克鋼鐵公司還是在 2024 年取得了強勁的開局。在第一季度，我們報告第一季銷售額為 5.27 億美元，淨利潤為 870 萬美元，所有部門為我們調整後的 EBITDA 做出了 2,370 萬美元的貢獻。 Our shipping volumes increased 9% sequentially from the fourth quarter of 2023, and we maintained our margins despite unusual declining pricing dynamics for the first quarter we typically start the new year in a strengthening market with increasing pricing, and that trend usually continues into the second四分之一.然而，今年我們看到熱軋鋼的指數定價從 1 月到 3 月中旬下跌了 31% 以上，而不銹鋼附加費則整個季度也有所下降。

So the movement in pricing was the opposite of what we normally experience in the first quarter. Despite these pricing challenges, we generated solid profitability, which reinforces that our strategy is working and our efforts to diversify and expand our portfolio into higher value manufactured metal products provides a natural countercyclical benefit to falling metal prices and helps drive profitability regardless of market conditions. In addition, our fabrication and value-added product capabilities drove new business wins and we outpaced market shipments during the quarter in every product we sell. We continue to see industrial manufacturers looking to outsource more long-term fabrication work, and we have made the strategic investments in people, technology and equipment to capitalize on what we believe is a long-term trend.

因此，定價變動與我們通常在第一季經歷的情況相反。儘管存在這些定價挑戰，我們仍實現了穩健的盈利能力，這強化了我們的策略正在發揮作用，並且我們努力將產品組合多元化並擴展到更高價值的金屬製成品，這為金屬價格下跌提供了天然的反週期效益，並有助於提高獲利能力，無論市場狀況如何。此外，我們的製造和增值產品能力推動了新的業務勝利，並且我們銷售的每種產品在本季度都超過了市場出貨量。我們繼續看到工業製造商尋求外包更多的長期製造工作，並且我們對人員、技術和設備進行了戰略投資，以利用我們認為的長期趨勢。

We hired industry veteran, Matt Fitzgerald to the newly created role of Vice President of fabrication, Matt is leading the execution of Olympic Steel's fabrication strategy, which is a key component to both our near term and long-term growth. We are beginning to realize the benefits of our team's efforts to strengthen our fabrication capabilities and to integrate new, more efficient equipment automation and software into our operations. We are well positioned to accelerate our growth, and we are excited for the opportunities to come as the US rebuilds, its infrastructure and our large OEM customers continue to outsource metal fabrication as we near the midpoint of the second quarter pricing on some products has recovered yet market conditions remain dynamic.

我們聘請了行業資深人士馬特·菲茨杰拉德(Matt Fitzgerald) 擔任新設立的製造副總裁一職，馬特負責領導奧林匹克鋼鐵公司製造戰略的執行，這是我們近期和長期增長的關鍵組成部分。我們開始認識到我們的團隊努力增強我們的製造能力並將新的、更有效率的設備自動化和軟體整合到我們的營運中所帶來的好處。我們處於加速成長的有利位置，我們對隨著美國重建、基礎設施和我們的大型 OEM 客戶繼續外包金屬製造而出現的機會感到興奮，因為我們接近第二季度中點，一些產品的定價已經恢復但市場狀況仍然充滿活力。

While we monitor the evolving conditions, the entire Olympic Steel team remains focused on what we can control our disciplines around working capital operating expenses and cash flow. Our balance sheet remains strong, and we have access to capital that will enable us to continue investing in organic growth and automation opportunities and a reinvigorated M&A market and that all aligns with our strategic priorities for our long-term success. As we look ahead, we are optimistic about our ability to deliver consistent profitable results and create value for our shareholders.

在我們監控不斷變化的情況的同時，整個奧林匹克鋼鐵團隊仍然專注於我們可以控制營運資本營運支出和現金流方面的紀律。我們的資產負債表依然強勁，我們可以獲得資本，使我們能夠繼續投資於有機成長和自動化機會以及重振的併購市場，所有這些都符合我們長期成功的策略重點。展望未來，我們對持續獲利並為股東創造價值的能力感到樂觀。

I'll now turn the call over to Andrew.

我現在將把電話轉給安德魯。

Thank you, Rick, and good morning, everyone. Our diversification strategy has made Olympic Steel, a stronger, more resilient company. Our team's strategic execution and commitment to our operating disciplines delivered solid profitability this quarter. Despite pricing headwinds, the shipping volume for all segments was up sequentially from the fourth quarter of 2023 and the carbon and pipe and tube segments were up year over year versus the first quarter of 2023. Our Carbon segment faced softer market conditions moving into 2024, our team remained focused on cost control disciplines and furthered our customer product and process diversification initiatives to help maximize profitability.

謝謝你，瑞克，大家早安。我們的多元化策略使奧林匹克鋼鐵公司成為更強大、更有彈性的公司。我們團隊的策略執行和對營運紀律的承諾為本季帶來了穩健的獲利能力。儘管存在定價逆風，但所有細分市場的出貨量均較2023 年第四季度連續增長，碳素和管材細分市場與2023 年第一季相比同比有所增長。碳素細分市場面臨著更為疲軟的市場狀況，我們的團隊仍然專注於成本控制原則，並進一步推進我們的客戶產品和流程多元化計劃，以幫助最大限度地提高盈利能力。

Amid these shifting market dynamics, we continue to expand our coated offerings beyond metal fab and coated shipments are increasing. As Rick highlighted, we are actively leveraging our fabrication capabilities as a complement to our traditional distribution business. As a result of these efforts, our Carbon segment led our businesses in profitability with EBITDA of $12.7 million. At the start of the second quarter, we have the tailwind of announced steel mills price increases on flat rolled products. This is typically our strongest period of the year from a demand perspective, and we expect to see stabilized demand throughout the second quarter. However, we do expect to see some margin compression on carbon products in the second quarter.

在這些不斷變化的市場動態中，我們繼續將塗層產品擴展到金屬工廠之外，並且塗層出貨量正在增加。正如里克所強調的那樣，我們正在積極利用我們的製造能力作為我們傳統分銷業務的補充。由於這些努力，我們的碳部門在盈利方面領先於我們的業務，EBITDA 達到 1,270 萬美元。第二季初，我們受到鋼廠宣布的扁鋼產品價格上漲的推動。從需求角度來看，這通常是我們一年中最強勁的時期，我們預計整個第二季的需求將保持穩定。然而，我們確實預計第二季碳產品的利潤率將會壓縮。

The pipe and tube segment performed well in the first quarter with adjusted EBITDA of $10.3 million. The integration of central tube and bar has gone well. We continue to upgrade our laser equipment, including enhancing production capabilities at CTB with the new laser that is expected to be operational in July. Our legacy CTID business is also upgrading this year to a new jumbo laser that will replace two original two blazers. These new lasers have an increased speed inefficiency rate of 30% as compared to the old equipment.

管材業務第一季表現良好，調整後 EBITDA 為 1,030 萬美元。中心管與桿的一體化進展順利。我們繼續升級我們的雷射設備，包括使用預計 7 月投入運行的新型雷射器來增強 CTB 的生產能力。我們的傳統 CTID 業務今年也將升級為新的巨型雷射器，以取代原來的兩件兩件式西裝外套。與舊設備相比，這些新型雷射的速度無效率提高了30%。

Overall future capabilities put Olympic Steel in a strong position to win new opportunities and support our strategic objectives for the past year-and-a-half, the specialty metals segment has faced challenging market conditions, namely falling commodity prices and softer demand as the industry worked through elevated inventory levels during the first quarter, we started to see signs of those headwinds waning. We ended the quarter with our best reported volume since the first quarter of 2023 and the segment contributed $4.9 million of EBITDA.

整體未來能力使奧林匹克鋼鐵處於有利地位，可以贏得新機會並支持我們過去一年半的戰略目標，特種金屬細分市場面臨著充滿挑戰的市場條件，即大宗商品價格下跌和行業需求疲軟。在第一季庫存水準上升的情況下，我們開始看到這些不利因素減弱的跡象。本季末，我們實現了自 2023 年第一季以來的最佳報告量，該部門貢獻了 490 萬美元的 EBITDA。

Looking ahead, we are optimistic as prices for both nickel, the primary driver of stainless surcharges and aluminum were up in April, and we are anticipating another bump in the near term. Additionally, we are onboarding new business that we expect to ramp up in the second quarter. We are pleased with the progress our segments are making to execute on our diversification strategy. We expect 2024 to be another solid year for Olympic Steel and are confident in our ability to deliver profitable results in all market environments.

展望未來，我們對鎳（不銹鋼附加費的主要推動因素）和鋁的價格在四月份上漲表示樂觀，並且我們預計近期將再次上漲。此外，我們正在進行新業務，預計將在第二季增加。我們對我們的部門在執行多元化策略方面所取得的進展感到高興。我們預計 2024 年將是奧林匹克鋼鐵公司又一個堅實的一年，並對我們在所有市場環境下實現盈利的能力充滿信心。

Now, I'll turn the call over to Rich.

現在，我將把電話轉給 Rich。

Thank you, Andrew. As you've heard from Rick and Andrew, our team did an excellent job in the first quarter to navigate pricing headwinds and shifting market dynamics to deliver solid performance to start the year. Before I discuss the results in more detail, I want to remind you that year-over-year comparisons are impacted by the October 2023 acquisition of Central Tubing Bar whose results are included in our pipe and tube segment.

謝謝你，安德魯。正如您從 Rick 和 Andrew 那裡聽到的那樣，我們的團隊在第一季表現出色，克服了定價逆風並改變了市場動態，為年初提供了穩健的業績。在更詳細地討論結果之前，我想提醒您，同比比較受到 2023 年 10 月收購 Central Tubing Bar 的影響，該公司的結果包含在我們的管道和管材部門中。

For the first quarter, net income totaled $8.7 million compared with $9.9 million in the first quarter of 2023. EBITDA in the quarter was $23.2 million compared to $23.9 million in the prior year period. First quarter 2024 results include $400,000 of LIFO expense compared with no LIFO adjustment in the first quarter of 2023. Consolidated operating expenses for the first quarter totaled $103.2 million compared with $102.7 million in the first quarter of 2023. Our first quarter operating expenses reflect the addition of CTB, which does not report tons sold, therefore operating expenses per ton at the consolidated level and for the pipe and tube segment will appear higher year-over-year.

第一季的淨利潤總計為 870 萬美元，而 2023 年第一季的淨利潤為 990 萬美元。 2024 年第一季的業績包括40 萬美元的LIFO 費用，而2023 年第一季沒有進行LIFO 調整。美元。

As a reminder, we do not report tons sold from a color industries, easy dumper, metal fab, Shaw stainless, or the entire pipe and tube segment. Consolidated operating expenses for the fourth quarter include $4 million of CTB operating expenses and $1.7 million of lower incentive expenses when compared with the first quarter of 2023. Our effective borrowing rate in the first quarter of 2024 is also impacted by the expiration of our interest rate hedge.

提醒一下，我們不報告來自彩色行業、簡易自卸車、金屬工廠、Shaw 不銹鋼或整個管道和管材部門的銷售量。第四季的合併營運費用包括 400 萬美元的 CTB 營運費用和與 2023 年第一季相比減少的 170 萬美元的激勵費用。樹籬。

Our balance sheet remains strong. We ended the year with debt of $197 million, an increase of $7 million since year end. The additional debt was used to fund the $16 million increase in working capital during the quarter, which supported our 9% increase in sales sequentially from the fourth quarter. We ended the quarter with availability of approximately $366 million, keeping us very well positioned to continue investing in higher return opportunities.

我們的資產負債表仍然強勁。截至年底，我們的債務為 1.97 億美元，比年底增加了 700 萬美元。額外的債務用於為本季增加 1,600 萬美元的營運資金提供資金，這支持了我們的銷售額較第四季連續成長 9%。本季結束時，我們的可用資金約為 3.66 億美元，這使我們能夠繼續投資於更高回報的機會。

Our capital expenditures totaled $4.8 million in the first quarter of 2024 compared with depreciation expense of $6 million. Equipment lead times remain long, and we estimate that 2024 capital expenditures will be approximately $30 million as we continue to make investments in automation, fabrication and equipment that results in higher gross margin opportunities and more consistent results.

2024 年第一季我們的資本支出總計 480 萬美元，而折舊費用為 600 萬美元。設備交付週期仍然很長，我們預計 2024 年的資本支出將約為 3,000 萬美元，因為我們將繼續對自動化、製造和設備進行投資，從而帶來更高的毛利率機會和更一致的結果。

Our first quarter 2024 effective income tax rate was 27% compared to 26.8% in the same period last year. We expect our 2024 tax rate to approximate 27.5% to 28.5%. In addition, we paid a quarterly dividend of $0.15 per share in the first quarter, this was an increase of $0.025 per share or 20% from the company's previous quarterly dividend. Our Board of Directors approved our next regular quarterly cash dividend of $0.15 per share, which is payable on June 17, 2024, to shareholders of record as of June 4, 2024. The company has now paid regular quarterly dividends dating back to 2006.

我們 2024 年第一季的有效所得稅率為 27%，而去年同期為 26.8%。我們預計 2024 年的稅率約為 27.5% 至 28.5%。此外，我們第一季支付了每股0.15美元的季度股息，這比公司先前的季度股息每股增加了0.025美元，即20%。我們的董事會批准了我們下一次定期季度現金股利每股0.15 美元，將於2024 年6 月17 日支付給截至2024 年6 月4 日在冊的股東。股息。

Before we open the call for your questions, I would like to thank the entire Olympic Steel team for all their efforts in the first quarter because of the team's hard work and dedication that Olympic Steel remains in a strong operational and financial position and is equipped to invest in additional higher value growth opportunities and continue to advance our strategic plans.

在我們開始提問之前，我要感謝整個奧林匹克鋼鐵團隊在第一季所做的一切努力，正是由於團隊的辛勤工作和奉獻精神，奧林匹克鋼鐵保持了強勁的運營和財務狀況，並有能力投資於更多更高價值的成長機會，並繼續推進我們的策略計劃。

Operator, we are now ready for questions.

接線員，我們現在準備好提問了。

(Operator Instructions)

（操作員說明）

Dave Storms, Stonegate.

戴夫·斯托姆斯，石門。

Good morning. I'm just hoping we could start with the times you mentioned in your remarks that there's still maybe a little longer than you'd like them to be is this a product of bringing in more value-added services and is at what point does automation start? So again, there's lead times down kind of where's the tipping point there?

早安.我只是希望我們可以從您在評論中提到的時間開始，也許還有比您希望的時間更長的時間，這是一個引入更多增值服務的產品，自動化到什麼程度了？再說一次，交貨時間縮短了，臨界點在哪裡？

So David, it's Rick. Is your question on our comment about lead longer lead times related to some of our CapEx equipment or is it or is it on our business levels lead times with customers.

大衛，是里克。您對我們關於與我們的一些資本支出設備相關的較長交貨時間的評論有疑問嗎？

My understanding was that was lead times longer on business levels. If I have that wrong, apologies.

我的理解是，業務層面的交付時間更長。如果我錯了，抱歉。

Yes. I mean, I think I think our lead times are I call it pretty normal, Andrew, I don't know if we've been seeing any real difference and over the quarter into second quarter, but I think they're pretty stable.

是的。我的意思是，我認為我們的交貨時間是很正常的，安德魯，我不知道我們是否在本季度和第二季度中看到了任何真正的差異，但我認為它們非常穩定。

Yeah, they are I would tell you that on the carbon side, lead times in hot roll is probably still in the four to five weeks, probably similar and a little bit longer tandem products of cold-rolled galvanized more like six to seven weeks on the specialty side on stainless and aluminum, but the same probably four to five weeks from us, certainly to our customers. We have a lot of JIT programs established. So in some cases, it's same day deliveries just depending on the customer and the agreements that we have.

是的，我會告訴你，在碳方面，熱軋的交貨時間可能仍在四到五週內，可能類似且更長一點的冷軋鍍鋅串聯產品更像是六到七週不銹鋼和鋁的專業方面，但我們（當然是我們的客戶）可能需要四到五週的時間。我們建立了很多 JIT 計劃。因此，在某些情況下，當天交貨僅取決於客戶和我們簽訂的協議。

Understood. Thank you for the clarification there. One more for me, how should we we'd be thinking about price momentum, it goes into Q2 and then beyond Q2, if you have any visibility there?

明白了。謝謝你的澄清。對我來說，我們應該如何考慮價格動量，它會進入第二季度，然後超出第二季度，如果您在那裡有任何可見性的話？

Yes, I would say on the carbon side, we've seen some stability in the market index. Pricing is down a little bit, but we've seen some stability in the carbon. We're encouraged in stainless and aluminum nickel and aluminum have both shown some strength in the past couple of weeks and anticipate that we'll see more stability as we head through the second quarter. So we feel pretty good.

是的，我想說在碳方面，我們已經看到市場指數有些穩定。價格略有下降，但我們看到碳的穩定性有所提高。我們對不銹鋼和鋁感到鼓舞，鎳和鋁在過去幾週都表現出了一定的實力，預計隨著第二季的到來，我們將看到更多的穩定性。所以我們感覺很好。

Thank you. Our next question is coming from Alan Weber of Robotti Advisors. Please go ahead up.

謝謝。我們的下一個問題來自 Robotti Advisors 的 Alan Weber。請繼續往上走。

Good morning. Can you talk about one is just maintenance capital spending and then in terms of acquisitions. Can you just talk about how you're thinking about things today and what's changed given with the economies, et cetera?

早安.您能否談談維護資本支出以及收購方面的情況。您能否談談您對當今事物的看法以及經濟等因素所帶來的變化？

Good morning, Alan. It's Rich. With respect to CapEx. Maintenance CapEx is between seven and $10 million per year. And as we indicated in the prepared comments, we expect to spend about $30 million this year. And I think we have POs out there for quite a bit. It's just that in the prepared comments, we indicated that it's a particularly long lead time to get processing equipment. Now I'll let Rick answer the question on M&A.

早安，艾倫。這是富有的。關於資本支出。每年維護資本支出在 700 至 1000 萬美元之間。正如我們在準備好的評論中指出的那樣，我們預計今年將花費約 3000 萬美元。我認為我們已經有相當多的採購訂單了。只是在準備好的評論中，我們表示獲得加工設備的交貨時間特別長。下面我就請Rick來回答關於併購的問題。

Yes.

是的。

Thanks, Alan. Good question on the M&A on. So we saw a bit of just in general, I think the M&A market and really contracted towards the end part of last year. And as we open this year. And I think part of that was some of the impacts may be of higher interest rates. And as you know, and we've talked a lot about it. We on strategically, we'll continue to aggressively look at growth both from internal CapEx growth and acquisitions. So we remain very active in terms of looking and what I'd say is probably in the last month to six weeks, we've seen the M&A market in general start to open up more on the reasoning behind that, you know, I think it may be some people are settling in at what the federal funds rate is. And even if we're not going to go down here in the near term in the next couple of quarters. I think as always, businesses adjust and valuations adjust. And I think that's what's happened. So we're starting to really see on a much larger inflow into the pipeline, which is really good. As I've said numerous times, we anticipate on being continuing to be successful. You know, we've made six acquisitions in the last five years. And we would we would fully intend to stay on that trend. And we'll also stay disciplined and we'll look for target companies that are similar to what you've seen in our recent track record on that are high performing companies, good fits and immediately accretive to Olympic. So that's kind of a decent snapshot of what we're seeing.

謝謝，艾倫。關於併購的好問題。因此，我們總體上看到了一些情況，我認為併購市場在去年年底確實出現了收縮。正如我們今年開業的那樣。我認為部分影響可能是利率上升。如您所知，我們已經對此進行了很多討論。從策略上講，我們將繼續積極關注內部資本支出成長和收購的成長。因此，我們在尋找方面仍然非常活躍，我想說的是，可能在過去一個月到六週內，我們已經看到併購市場總體上開始更多地了解其背後的原因，你知道，我認為可能有些人正在適應聯邦基金利率。即使我們不會在接下來的幾個季度內短期內下降。我認為一如既往，企業會調整，估值也會調整。我認為這就是發生的事情。因此，我們開始真正看到更多的資金流入管道，這非常好。正如我多次說過的，我們期望繼續取得成功。你知道，過去五年我們進行了六次收購。我們希望我們完全願意保持這一趨勢。我們還將保持紀律，尋找與您在我們最近的業績記錄中看到的類似的目標公司，這些公司表現出色，適合併立即為奧運會帶來增值。這就是我們所看到的情況的一個不錯的快照。

And just my last question. When you look out long term, has anything changed in your view in terms of the quote-unquote infrastructure spending and onshoring and like that?

這只是我的最後一個問題。從長遠來看，您對基礎設施支出和外包等方面的看法是否改變了？

Yes, I think the only thing that's probably changed over the three years since the government announced a lot of funding, probably just the time that it's going to take to get all the money spent and some of it isn't just releasing the money. It's really the the labor situation and the ability to get these projects done. So I would say the good news coming out of that is I think the spend in the cycle will maybe be a little bit longer than maybe what we had thought three years ago. And we're seeing that in certain pockets pockets. We know that the build-out of the data centers where a supplier into that and and that looks pretty robust over the coming years. But there's there's investment and in that cycle, there's some ebbs and flows in terms of, you know how that happens. And a lot of it isn't just based on the money. It's based on the labor and the ability to get these projects done but done.

是的，我認為自政府宣布提供大量資金以來的三年裡唯一可能發生的變化，可能只是花掉所有資金所需的時間，其中一些不僅僅是發放資金。這實際上是勞動力狀況和完成這些項目的能力。因此，我想說的好消息是，我認為週期中的支出可能會比我們三年前想像的要長一些。我們在某些​​口袋裡看到了這一點。我們知道，資料中心的建設是供應商參與的，並且在未來幾年看起來相當強勁。但有投資，在這個週期中，有一些潮起潮落，你知道這是如何發生的。其中許多不僅僅是基於金錢。它是基於完成這些項目的勞動力和能力。

And then the second part, I mean, Andrew, I think you can talk about what we're seeing from our customers and certainly the tie into our strategy on outsourcing and bringing more work to us in terms of our capabilities, yes, we've certainly seen the industrial OEMs has been doing more outsourcing as we've seen more onshoring taking place, as Rick talked about labor, I think is going to continue on the industrial side to be a little bit of a challenge. And I think for us, we're in a really good position with existing customers and new customers and to take advantage of these fabrication opportunities.

然後第二部分，我的意思是，安德魯，我想你可以談談我們從客戶那裡看到的情況，當然還有我們的外包策略的聯繫，以及在我們的能力方面給我們帶來更多工作的關係，是的，我們'我們當然看到工業原始設備製造商一直在進行更多的外包，因為我們看到更多的外包發生，正如里克談到勞動力一樣，我認為工業方面將繼續成為一個挑戰。我認為對我們來說，我們在現有客戶和新客戶中處於非常有利的位置，並且可以利用這些製造機會。

Rick also talked about data centers. We've been a certainly a player in that part of it more on the on the tube side of it and think that's going to really continue to grow over the next. It's certainly two to five years.

Rick 也談到了資料中心。我們肯定是這部分的參與者，更多的是在管方面，並認為這將在接下來的時間裡繼續增長。肯定是兩到五年了。

Okay, great. Thank you very much.

好的，太好了。非常感謝。

Thank you.

謝謝。

The next question is coming from Chris Sakai of Singular Research. Please go ahead.

下一個問題來自 Singular Research 的 Chris Sakai。請繼續。

Hi, good morning.

早安.

Airline credit.

航空公司信用。

I wanted to ask I wanted to ask about inventory levels on how should we be thinking about them throughout the year?

我想問一下我們全年應該如何考慮庫存水準？

Well, we think we're in NAM were at appropriate levels today, really across the board. And I think as lead times continue to, I would say, Chris, to be at normal levels. Again, we see hot roll in the four to five week cold roll in the six week stainless and aluminum in four to five week. I think we'll get back to a traditional inventory turns. We target certainly five times turns, and we think we'll certainly be there. And I think for the second half of the year, I think we'll be and we'll be in good shape inventory-wise.

嗯，我們認為我們今天在 NAM 中處於適當的水平，確實是全面的。克里斯，我認為隨著交貨時間繼續保持在正常水平。同樣，我們在四到五週內看到熱軋，在六週內看到不鏽鋼冷軋，在四到五週內看到鋁冷軋。我認為我們將回到傳統的庫存週轉率。我們的目標當然是五次回合，我們認為我們一定會實現這一目標。我認為今年下半年，我們的庫存狀況將會很好。

Okay, thanks. Thanks for that. Can you comment on the quarterly cadence for capital furniture's for the next three quarters?

好的謝謝。感謝那。您能否評論一下首都家具未來三個季度的季度節奏？

Yes, sure, Chris. As I indicated in our comments, we think that the full year spend will be in the $30 million range. We've just been we've ordered a lot of equipment. It's just taking a long time and the lead times are long to get to them. But I think that number's a solid number to use for the full year forecast.

是的，當然，克里斯。正如我在評論中指出的，我們認為全年支出將在 3000 萬美元範圍內。我們剛剛訂購了很多設備。只是需要很長時間才能到達它們，而且交貨時間也很長。但我認為這個數字是用於全年預測的可靠數字。

Okay, thanks.

好的謝謝。

Once again, ladies and gentlemen, if you do have a question, please press star one on your telephone keypad. At this time. We'll pause a moment for any additional questions.

女士們先生們，如果您確實有問題，請再次按下電話鍵盤上的星號一。此時。如果有任何其他問題，我們將暫停片刻。

I'm showing no additional questions in queue at this time. I would like to turn the floor back over to Mr. Marabito for closing.

目前我在隊列中沒有顯示任何其他問題。我想將發言權交還給馬拉比托先生以供結束。

Thank you, operator, and thank you all for joining us on our call this morning. We certainly appreciate your continued interest in Olympic Steel, and we look forward to speaking with you again next quarter and have a nice day. Thank you.

謝謝接線員，也謝謝大家今天早上加入我們的電話會議。我們當然感謝您對奧林匹克鋼鐵的持續關注，我們期待下個季度再次與您交談並祝您有美好的一天。謝謝。

Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines and log off the webcast at this time and enjoy the rest of your day.

女士們、先生們，感謝您的參與。今天的活動到此結束。此時您可以斷開線路並退出網路廣播，享受剩下的一天。