ZEUS - Earnings call transcript Q4 2020

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Operator

Good morning, and welcome to the Olympic Steel 2020 Fourth Quarter Financial Results Conference Call. [Operator Instructions]. I would now like to hand the conference over to Rich Manson, Chief Financial Officer at Olympic Steel. Please go ahead, sir.

Richard Manson

Thank you, operator. Earnings the Steel's Full Quarter Olympic XXXX. Year to Call Fourth for and Welcome

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

I we begin, a have Before reminders. few

not and XXXX, Securities within changes actual assumptions statements harbor company's the other update reflect or Exchange predictive other factors will reports provisions made and XX-Q on such and Litigation set be press to affecting and does cause to of to Important call today's could are intended forward-looking results forms Some Private Reform in safe of filed Act made may and actual XX-K statements. changes on the Securities in company undertake the with the that The be differ are as results. forward-looking not Commission. and uncertainties statements, the assumptions, releases in risks, materially factors such forth

time, found was turn morning today's financial measures During issued adjusted this all the comparable will press release the the that financial website. refer are directly Rick. income and in net provided of on can call to Today's which archived EBITDA, available I'll this Steel's EBITDA adjusted for At Olympic website. non-GAAP be diluted and our over be most to share, A non-GAAP broadcast per measures or reconciliation live replay GAAP these to we is measures. discussion, on may

Richard Marabito

additional XXXX. tremendous during our Steel's everyone, segment your and finish in, will and business fourth results details our some then share our us Rich, some we'll Rich for up discuss incredible and Andrew good the I'll that's performance, we're Olympic really will interested progress the we'll joining the comments and thoughts financial with be after results, quarter almost about questions. our morning, year. performance take you, about and you the made I outlook. to with what and thank begin quarterly that, and think team about an review our Thank full future some year then happy and for to

So year position as operating safer a to Olympic accomplishments. we're resulted decisive enabled company its combined expense which, in actions a the lower resiliency conditions, Steel enter Together, a us team, balance proud a year, reflect market with immensely of strongest on we and permanently base, deliver with and success inventory, cultural we us faster-turning unprecedented the Today, across for sustainable truly a as importantly, stronger are and took improved we that more organization. of the we our sheet quarter resolve, advancements XXXX.

metals the Market a $XXX compared fourth $X.XX income year. fourth or diluted of rose prices per increasingly $X.X with the year million net million favorable of a loss and increased fourth Our to the dynamics $XXX,XXX quarter ago. for $X.X for sales share for in from became net a to quarter EBITDA million was Net share levels. $XXX last and million quarter, that's $X.X ago. per quarter, fourth $X.XX diluted or the rapidly were unprecedented Adjusted up with million quarter compared year

in levels. fourth quarter the shared the volumes stronger last we began our in and continued pre-pandemic see we that As on to third call, demand demand late as quarter, approach

during the they increased increased quarter. also quarter. quarter third from fourth our improvement segments X across shipping the drove these trends volumes year-over-year, not all of but sequentially Our only Together, sales

year-over-year, and we expenses our We ended successes. and discipline with year We XX% turns remain our operating approached vigilant operational with performance, flat fourth pleased the Xx our we of as certainly move quarter. our about excited are we're our opportunities fourth product in front consolidated quarter most future build the the on forward While and on inventory down nearly during us.

low also debt well above loan our under after availability pre-pandemic to a levels, acquisition. asset-based X-year while making increasing to an We reduced and that's

tougher a our is debt not generation CapEx ABL COVID-ravaged after markets fully often actually Our million million increased appreciated. $XX reduced borrowing acquisition. In by we strong $XX countercyclical year, by we an almost flow and availability spending and million, cash all in our $XX on

committed cyclicality reducing remain company We and also the our to returns. strategically in growing

Action was to the additional products talented our strong a and acquisition Stainless and expanded of quarter distribution of the metals business. capabilities of December. footprint specialty & Alloys and team, our great highlights Action brings culture, One in a an

are that higher offer strategy our in niche, business. support seeking high-performing We our additional return opportunities for that grow to actively acquisitions applications

Continued growth our strategy. is element also business of of our an important specialty metals

as we and a optimistic strong recovering in XXXX, have momentum So we're economy. start

organizationally from economy are the a prepared dynamics. We rapidly and for industry growing opportunities changing

we much in by also to evidenced will rebuild. needed spur America's bill further infrastructure XXXX. I'll week's the some quarter higher As we're to that, the hopeful in Andrew administration are the comments. we Texas, additional believe excellent In last a turn in push returns of With congress distribution position energy first comprehensive now summary, -- to significantly are in issues for and drive Biden we over to pass profitability that call

Andrew Greiff

morning. good Thank you, Rick, and

segment our by the measured execution segment's our profitable posted year quarter strongest outstanding history and the and and the increased share up trade was strategic all-time our Markowitz, our improvements tube for and the As our EBITDA is most X%, of carbon segment third the industry on ongoing segments. turbulence were operating Rick and the improved X% consecutive the leadership flat prior team Andy commitment of President, Specialty our mentioned, metals benefited sales which association. in aluminum second segment to and teams. Specialty leadership executing quarter, as for highs market stainless Metals initiatives sales actions for of as the to also navigated by contributed market. the by sales testament under achieved Specialty pipe metals, the of year. The our to group X% a decisive all positively Each safety, compared

As and Carolina consistency waterjet including close, additional enhancing products stainless we our Missouri, in also product aluminum brings South fourth cutting footprint of laser past pace and diversification strategy Arkansas. Texas, capabilities along of and our new our and the and to The quarter came complementary decade. the at machining, with earnings CNC of of the acquisition aggressive push the processing Action and geographic the grow which a completed expanded acquisition and an company's and trajectory Stainless, furthers continued to line plasma,

house square extremely metals Streetsboro, slitting expansion in recent has where additional to Our our feet cut-to-length white as metals in white we added our approximately has XX,XXX performed Ohio. line dedicated Schaumburg, well Illinois, line,

Southern We States. metals strategic metal to further and to grow acquisitions seek continue actively white in in the our scope specialty United expect

and year. pipe reported leadership the Bill the tube in fourth Our versus Zielinski, X% a under sales of quarter prior segment, increase XXXX

starting LT-FREE recent tube. a of our new of the which of robotic facility, precision Chicago are strong with system processing addition laser-cutting We X-axis in bent XXXX is capable

XXXX, our In COVID. new installation midst successfully addition, ERP of the in completed in we

positioned to that and growth We return about coupled are the continued we excited our Action products is Stainless, our profitability tube optimism the levels metals head inventory geographic provide in tubing strong with with improvements our as and integration to and pipe opportunities segment commercial turnover in into growing which, XXXX. Southeast, white our

versus of of X with XXXX of XXXX. third sequentially EBITDA most segments the quarter produced the million fourth segment our in improvement a $X.X quarter the carbon Our

the of We square the fabricating height new profitable rapid start-up foot this are effort great during this It of Georgia. thrilled Buford, summer. the and a facility operation with XXX,XXX collaboration our was open in pandemic past COVID to

machining, forming, Our assembly. plasma process kitting and capabilities there include cutting, welding, laser and and

expanding and existing to in the supply our Georgia to and resources the the in market up our in fabricating our Winder, for addition operation In the we for space services of the distribution automotive provide opening the valuable freed facility traditional region. Buford business customers growing Southeast,

optic expansion, and the we in Buford, Mitsubishi a in press new of part added fiber stamping automotive XXX-ton Winder. a As laser

in inventory reduction significant As improvements XXXX. we an to and spoke also segment turnover carbon the leader making internal in expense during earlier, was

remain are As Mill Metals for tight. markets, maintaining growing higher our and rapidly know, to In in are we prices metal truck a around already environment, trailer OEM we the record the certainly, remains our and at have disciplines servicing equipment, our as usage agriculture, And metal year construction. customers projecting user seen end extended. this key our high. operating our all heavy-duty changing we customers times and market, on supply internal including current and as expenses, and turn strategically you returns. industrial will lead management safety, remain focused inventory business

the over turn I'll Now to Rich. call

Richard Manson

good and Andrew, everyone. morning, you, Thank

from quarter outstanding quarter well ago, the $XXX discipline last This $X.X we for the EBITDA million forward. a million with in $XXX a markets the million, compared employees. the primarily demand As which all pretax included as as improved to sales quarter up nearly end quarter Net the Rick income. we of consolidated net income This with more is were due $XXX,XXX of our volumes. to quarter operating as EBITDA fourth the included work loss $X.X continue improvement volumes us quarter did compares improvement quarter with noted, approximately fourth of our year segments X Daily most to strengthened. year in with move by generating of of approximately to near of of XXXX. XXXX, recover, a sequentially. level pretax continue $X.X to we successfully XXX% of profitable year profitability Adjusted of result a in shipped for in the $XXX,XXX and was X% the XX% increase a was pre-pandemic This for year, team of X% LIFO less and XXXX even LIFO million, position expenses than was volume a fourth levels of our quarter. our the XXX% which direct operating fourth returned focus will the fourth positive prior income Net lower million and

control turns. unprecedented we tight in on levels navigate of in We of inventory flat excess We X turning approaching will our even beneficial sometimes focus our on beginning turns, also that more XXXX. pricing the maintained believe roll X be turns inventories inventory as

higher discipline after and $XXX million than the to us reduce is this levels. million cash year inventory our of which debt, for with pre-pandemic ended December. And which reduce million acquisition to Stainless We $XXX continued is needs in availability, the Our and paying the free a $XX accounts debt. Action is flow around allowed of receivable low, X-year capital and use working

to an in XXX% as the We we pandemic. of XX% and of expenditures fund navigated We versus million other are Capital additional the goals. million position depreciation range $XX.X expense. for to $X.X excellent depreciation increase that strategic opportunities anticipate totaled of expenditures to our expected acquisitions XXXX uncertainties the growth year aligned with are the to organic capital of

Our the increase caused was effective pretax prior XX% fourth in XX% the compared refund rate quarter the booked operating XXXX by of in of to fourth in quarters. was in net income higher an during XXXX. tax The that carryback quarter was rate which expected in loss quarter, are raised fourth tax

expect rate we our typical in to XX% XXXX, tax For effective range. XX% be to the

final dividend note, regular of a share. $X.XX has per Board quarterly the our As of Directors approved

first for be continued We profitable dividend consecutive Olympic we during the a the are pandemic momentum year, early significantly days drive proud that actions quarter decisive Steel has took actions to the to of and In year. this That the Olympic propel our the profitability Steel positioned have most helped fourth higher successfully XXXX. of quarters. in conclusion, our quarter the quarter into has of paid now XX

optimistic to We recovery and term accelerate near hopeful drive metal economic the to the and the about demand. market will continue in are that

questions. for Now operator, call let's the open

Operator

[Operator Instructions].

-- question Andreas question sorry, Marco is from UBS. I'm with our first Bokkenheuser Our from is first

Andreas Bokkenheuser

Just a question me. for quick couple of

the clarity more demand, downstream a more on where where the bit great That about if much demand little you of And lot do the have get of the think you in and conversations are thoughts a partly that? and are And industry. guys? seeing is And how my administration maybe for be you're much you current where to strength bit And what optimal you questions. Any your you two, Those particular stand is view? fully how remove kind does obviously, number about that to is XXX on environment that. or the demand comments challenging terms In seeing moment? would this or Section any to seeing White House you on of sustainable. some at a are whether what guys little pent-up going

Andrew Greiff

you for So the This thank is question, Andreas. Andrew.

our actually all the we've strength So across segments. seen in X board of

the with just of strong. construction, been very been has especially In strong issue discussed. chip Truck vehicles been construction has and were has very the the agriculture, during Auto actually XXXX equipment, continuing strong. into industrial clearly strong trailer, that's So even coated products, 'XX. widely been recreation utilization

the been food into business, the back. group to automotive and Pipe falls On strong. the starting of come white of just really has again, we're metals side tube equipment strong. kitchen And starting see Appliance, restaurant categories. both to kind

really industry so at And there this not, an is that underperforming. is moment,

know, our customers, we talk everybody, into started to don't will if still into so increases contract will take think, to issue is The fourth couple this mills a behind, especially we Rick, we we're year. The up, they we've to even want what probably until have, where think see just And very about another going forecasts metal supply. I optimistic to about... that months XXX. over quarter. quarter want are be. caught bit, are their from little I talked of and the first you getting already for back

Richard Marabito

yes, the talked agenda new I on here months few XXX. XXX, of with is quite I'm the elimination Certainly, about going had, administration not probably large administration. record-high agenda, like with think pretty We the in XXX consider first the top Yes. and the of -- obviously, of think, lot of I it there's seems the at certain new we've pricing their to a Washington in the the petitioning

a that in we entering we're more is really time, see of stable place providing good you've got for not. And view or of of and demand end we marketplace growing so whether period Our think, much regardless we're a demand fans significantly But tariffs in that pretty -- a big growth demand. demand environment. do

asked the we had it's that Andrew demand, you of and about think sustainable. think sustainability I do

So we'll see.

in term, looks remain tariffs I like to the are it in think, though, going the near place.

Andreas Bokkenheuser

gauging of have And past we pre-COVID. I on of into That's how we're kind levels? follow-up, any the demand. kind just you kind pre-COVID maybe if further where exceeding today versus is are clear. mean where very quarters? in mean one I still And is of we were are Okay. If upcoming Or of I here, to we your terms kind of demand may, from thoughts already upside pre-COVID you those up catching that and further levels? upside there.

Andrew Greiff

yet. would Yes. tell you not we're Andrew No, is I this again. there

we and relatively the March strength second now. those time, that into are probably, quarter. the those approaching strength we and first we've certainly probably show demand right are seen continues Certainly, We levels. into that believe quarter, customers the the short there. coming we'll through as them exceed numbers And forecasting get as then And to be in a hit

Richard Marabito

where the to, just demand seen is really is little levels. I pre-pandemic a on the back think marketplace spot the what's right lead long call And holding it, now supply. And bit recovery full we times the haven't I

even levels. a looking It's that OEM cases, maybe lagging. or, marketplace looks still at the some think exceed little business I to that's the I'd transactional And OEM as base in strong. characterize pre-pandemic

Andrew Greiff

Well, that's right.

side, half. certainly carbon we'll and probably to coated on cold-rolled so see still through we And going the see tight be is first the

in -- very As stainless, domestic availability are the put on the you tightened. allocation. -- mills We're mills part, -- know, for aluminum have seeing customers most on commodity the

And part strong for certainly contract So our little does -- bit The the it today. coverage focused for which business, of XXX% very is and a of is Rick -- so we're business, a spot less the for some correct. leave our on.

Andreas Bokkenheuser

clear. very I appreciate that That's answer.

I may. one And more, if sorry,

kind we just what more little into are import current that see prices? expect lead alleviate balance Or and the are is at a summer of know in times on? and of the you you But there. from should cap that mean, kind markets, maybe help and mentioned, there demand? tightness I stretching yet? imports tightness in it You not here do put Or to bit get kind helping the I the into along imports on we just moment. obviously, supply the of Do coming

Andrew Greiff

summer, It's not The the July. I elevated is question. into for our would it's worth perspective lead that June, the at most you pricing Yes. that are, part, really the good risk. level tell a times from an

at where in look hot tightness the at because see roll, East and in been in in we here. in could particularly to -- of the But as are certainly maybe it down in had the facility particular, attractive much really not But attractive are we cold-rolled the just we As Connecticut are we bigger past not Georgia particularly today, moment. facility. some opportunities certainly market importer, our today, Coast numbers the a we and our far the in in as coated prices it,

Operator

next our Markets. from Stonegate Rodriguez Marco is question with Capital And

Marco Rodriguez

like was kind through your responses pretty here. -- and of your wondering you as I us levels. if you've volumes demand start come listening decent expectations, of got yes, I just tailwinds to it towards pre-pandemic was back from you to wondering sort some perspective, to sounds maybe beyond those the also a take could

surpass about less volumes pretty that You had structure volume flexes it kind X% comment -- growth made plus the having those as a operating delivering was volume of with thinking be about sort year-over-year. increase? How levels, to of think in pre-COVID how should that start earlier still I employees we

Richard Manson

the for Marco, question. Thanks, Sure. Rich. It's

of you're of to X% able operating we in about correct. so When about decline of in And X% 'XX, versus including and XX% were quarter expenses, fourth at out warehouse were processing but 'XX volume, we look take fourth we up about year-over-year. quarter

did quarter. We've headcount and in XX% much pre-COVID that here been to begin here, have times, number increase at we at stable the get addressing levels. time. pre-COVID above through pretty we since that the and we second are down total say, can do, And compared some so right, we second been as do But we may really we you're quarter pretty expect over as the Andrew demand about back point

good to And job keeping a we're bit right half of that we a that increase our on volume keeping committed done XXXX, that of really headcount. little of those in into for But at will in And headcount add back that business remain disciplines here see. the with level so volume and doing. we the And the very is the really we've we're have to think expense XXXX. base well I focus of variable

Marco Rodriguez

just second wondering bit the then would And some as throughout becomes But it. little as far growth, whole major half be the talk you sort of Got the you versus of of this fiscal picture if half. for year. a drivers where your maybe see drivers the the your a expectations perhaps about if just year in give could bit fiscal cloudier buckets ranking first you could for growth of helpful. biggest kind Obviously, us

Richard Marabito

Great continue be to question. going actively Sure. We're acquisitions. seeking to

our at them look you call business. last if X areas they've X more niche, or been strategically, So in I high-return -- the acquisitions, for

we're that's I really to and earlier, some a growth aluminum the of certainly the lot mentioned and have -- We're So excited the that potential we're metals, We about, in side. specialty stainless continue strategy of think we both about I excited metals aluminum the specialty us. the really a on seeing. growth for growth

that team some And on been that past year really as to Steel. one the grow. focusing of service into in We nice on Southeast. we're made started supply touched build We fabrication engine a on in for one, down then aluminum. then And Andrew we really locations excited growth the about for think investments nice enormous migrated to us. to expect touched it. our in Certainly, see diversification Georgia, growth center I product to Georgia. in Southeast. has this We've in two continue a Andrew Olympic to and traditional business win continue the business we an And on the really the and the that automotive the add

kind are there. those think, on missed the but we're Andrew, other of big And I so any there, drivers. hit growth items? list the continued expecting I

Andrew Greiff

I it, you covered No, Yes. think Rick.

coming most the of into continue we're I much about all comparing 'XX 'XX, so going almost as -- from And really see to industrial in talking equipment a going to the think their on from they and to going that where 'XX. had what we're growth was particular not -- guys, but is about customers, 'XX what as XXXX, just talked we're original seeing. was back into goal rate over

but growth whether cases, So trailer going to coming agriculture automotive to we continue But a in some little the that's been of certainly in been XX% continue seeing that. booming, construction to it's have over appliance a lull, to XX% be back. this of of on year. pick that's couple and side, we see There excited truck the going Certainly, starting and was a have bit to side. just areas, we're up. -- to We're XX% key see through really think

Marco Rodriguez

to that what for the about then was of last strategy kind a of And comparison And here that little looks about potential this also, little talk of it. it in follow-up. talk can bit at time? then you part the year to a quick look bit just you maybe Got can where growth if regard valuations like. what like maybe pipeline driver you a In adding mentioned this also fiscal maybe acquisitions year, obviously

Richard Marabito

tell you, good. I'd looks the Sure. pipeline

been the post-COVID. has refilled pipeline I think

done. So of the cautious middle and in buy was of we we're tell year, part I'd sell at. But the from obviously, for the the We're you, pipeline, pretty done, last a thrilled COVID We're of year in period at, about one acquisitions. some of we're is have everyone excited the looking being pipeline the opportunities to side one got time Obviously, opportunities good. however. on the there looking

have steady. the think remained I valuations In terms of valuations, pretty

I for terms adds year, in, significant year, really some valuation haven't Obviously, of -- COVID the much shift always of a with in debate there. last seen companies. haven't We that

have impacts been In from of onetime pretty I'd virus. the say consistent. what But were terms the valuations beyond that,

Operator

Our with Chris next Sakai Research. question Singular from is

Joichi Sakai

mentioned that appliance is I and demand that's guys rebound this strong. you question. know, to believe just a that had been sign just economic has in sort I have a know a wanted do of of you really strong automotive I occurring?

Andrew Greiff

economic it's of Well, rebound. I strong a a think combination

I was really there basically nothing March the go on pent-up auto no the side. think if -- remember, automotive to you were June, demand. back there produced I have And middle think was of some you from there through

inventory at got so to the entertainment be And have -- the dealership People some historic demand buy. of people autos, there to availability down and have basically for out was money travel and because nonexistent, and the was to lows. opportunity able to go

I And a getting of so think we've to lot now backfilled. dealerships see started

take so indicate what low. would year. the back automotive There may And take home get inventory automotive you, there's not lows strong. for And There's into very to depots, of through the going customers to going and of talking this for. time get is tell did to any be what the to a we this you discussion levels appliances, summer And and our looking may place nothing I is strong to go you're already subcontractors. just or Chris, traditional in order, to about relative shutdowns going you us July. if what It's during see it's

half, second pretty going can so strong I a I and half. think certainly into through see going to we're the the think And we have first demand

Joichi Sakai

and were most what area know, perspective, you to the is this I quarter, an I -- you then pleased And wanted about improvement? could have what just what for last from an -- think overall you were Great. guess, where most Okay.

Richard Marabito

huge And our I'm it, What most safety really kudos lot pleased always to Chris. safety team. question, in a is environment, really about great didn't great, talk that's we improvements and had So entire but we record. about our our

proud most what I'm So that's of. really

very team on challenging couple in the coming time, Olympic strategic all second the a thing that really at But key same tough the year. navigating initiatives at And disciplines. of earlier and a in highlighted of the really we The growth things together, executing really a is year. terms operational

So year initiative down of COVID. completing growth an the acquisition and Southeast in in the the

of really just our been proud essential who, all know, especially team, have and those workers the So is business. as great an production you Olympic

was a and along, others steel country did phenomenal the to job. clicking came business and every the work of most Olympic While down, they shut and kept day in

are could I'd just the the forward we necessarily of those terms we're but really that better, pleased looking conditions tell So go. excited with do you, where and things what momentum we the of not market in regardless have.

-- of are place, the have the going some our yield fundamental those that Olympic returns principles excited shareholders. that we in we're the about I to for think and

Operator

And our Aldo Research. is with question Mazzaferro Mazzaferro from next

Aldo Mazzaferro

I had a few questions.

more say, the them trends in in I on fourth about quarter? Texas. the disruptions since think Would bit say even already. the over, a were recent deliveries times, mills very up in you are both But deliveries even you talk wanted I storms to in lead little the and touched now especially of trouble the having catching from that with than they

Andrew Greiff

incredibly sign Aldo, -- understand mills because they our are the that's But that last sitting and couple of ready to of they and couple of a that production have at you a metal there's that, to that's catch for trying up certainly do weeks just perspective. would I things just trucks. can't been the say been they a even once Yes. challenging. has ship, product suppliers been trucking couple There's from

so And just some got are nitrogen, the storms issues I and -- of natural there gas, think with it's that nitrogen. on letters yesterday whether some some we

itself soon. don't And I you're exacerbate to relieving find XX if see to going least can XX the just paying days. so trucks next trucking out, to anytime though, I itself, certainly And think you at continue But the for higher. it's significantly

Aldo Mazzaferro

this the still the in on dollar can place, I I tariff getting supply is a offer weaker relief think Great. don't seems. and it with point, know the side imports at

Andrew Greiff

think as skyrocketed. as containers And has right. you've know cost of you're the No, been certainly following, you and I also

it's this cycle the that appear this we're in anytime moment, going near does So the really to -- relieve itself at in pricing what not future.

Aldo Mazzaferro

great. That's Great.

are So I focus is as other that I'm you're is mentioned doing region Southeast key my are there I any you're growing that on question was like, wondering, heard expand of And a you're markets well? question the seeing focused for And there? a you there. have automotive strongly that other competitors strategy as in what kind pursuing sure. your

Andrew Greiff

to can't as Aldo, the I I our much strategy. so Well, speak competitors, just will,

line, And automotive be our in a so down pulled our fabrication and Winder really opened the we from -- our We business Buford. south. space equipment foot facility have think presses. in Today, we in like what will that of square put slitter. we number we added facility our But stretch Winder XXX,XXX of first facility. We out cut-to-length stamping

have relationships excellent and that's going part doing. direct optimism of tiers with we're well some the that big a companies of We have as be to automotive what sub some great of the as

has as Our Alabama very good think ago southeast. plate more We that in shape continues performed and it. as over to year the facility opened distribution and like into more migrate to facility. a business be a And We to able service we we're extremely well. prepared

we're about before. in be Alabama to to grow have we Texas, -- it think facilities -- just from we footprint in way this if not well Georgia, able customers we've and Alabama as region, really you Mississippi Texas. now very a really in to it kind us we Carolina, excited North in a it. have now and looked of kind have as We of exciting really able that think allows South we're and service been allows Carolina us, It's excited to Louisiana to and in as in And for of us it's

Richard Marabito

the us. the pipe And look tube southeast. additionally That's we at opportunities been strategic our And CTI at grow tube area to well. about aluminum in we and business we're Also, down the growth talked in opportunities stainless nice in to it, see excited as there. the that's another -- us southeast Aldo, got and going And then growing we and pipe you're for as continuing down business, about. really

Aldo Mazzaferro

still high? if have more And million -- and had a you are a I would on to Is unable strategy I point Great. this one turns strategy inventory to love could. inventories probably low? is trying you keep that to a you'd But you on $XX there is your are have mean, just or being so at why say inventory final million Or time $XX build hand, is to? you question -- this

Richard Marabito

Yes.

really our inventory for Olympic our keep so is word is And we what always talked about. It's sort to turns much not as turn it the of is Steel. at think So strategy low. we've X low to optimal inventories what

the answer that to intense effort is, with that very inventory nothing So on that. we've first current situation. achieved over company, making years, part of we're the really a last do better-turning sure a and And really the we've put COVID and has the two

is, question is a bit your inventory because supply of piece our the turning right now little dynamics. yes, second just faster of The

if the so And had the spot for utilizing from of there out inventory longer marketplace, and shortage additional lead we'd be think times certainly, that. we I spot the inventory marketplace, the

pinch really the So that that's on where is. point It's transactional business.

Aldo Mazzaferro

to the I you taking a out stronger. much coming tough on just want and congratulate end tail guys very year

Richard Marabito

you, Thank Aldo.

Andrew Greiff

Thank you, Aldo.

Richard Marabito

We appreciate that.

Operator

Richard Marabito turn call we the And over question-and-answer have remarks. I'll to of the for closing the session. now end reached

Richard Marabito

I have to And we Thank in look your and We if want Thank And for this our day. certainly us to sooner. appreciate continued Olympic call again thank you with interest you, speaking Steel. forward not on joining a morning. conference of great you Operator. quarter, all next you,

Operator

concludes this our conference. And

good at have You Thank may disconnect lines time. you, this your and a day.

Olympic Steel (ZEUS) 27 Feb 212020 Q4 Earnings call transcript