Olympic Steel Inc Q3 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Samuel J. McKinney - KeyBanc Capital Markets Inc., Research Division - Analyst : I'll just start with a quick housekeeping question on that $4 million in CARES Act money. How did that adjustment flow through on a segment level basis?

Question: Samuel J. McKinney - KeyBanc Capital Markets Inc., Research Division - Analyst : Great. And then moving to the pipe and tube segment, I mean, another quarter with gross margin above 30%. The first quarter used to be the strong quarter with the rebates, but now you guys are just posting 30% every quarter. How much of that margin profile is attributed to the fabrication outsourcing work you continue to add from customers? And how much more runway do you see for that business with the additional laser capabilities you've added at CTB?

Question: Samuel J. McKinney - KeyBanc Capital Markets Inc., Research Division - Analyst : Okay. And then hot-rolled pricing, it fell pretty steadily over the course of the third quarter. It's recovered some since the start of October. You're more weighted to contract versus spot, but how are you thinking about the carbon flat segment pricing as we head through the end of the year, given the seasonal volume effect the business will probably experience?

Question: Samuel J. McKinney - KeyBanc Capital Markets Inc., Research Division - Analyst : Okay. And then lastly for me, with more than $350 million still left on the revolver, can you just talk through what you'd like to see in a potential next M&A opportunity? It sounds like you're really focused on that. Still looking to target maybe the Southern United States?