Olympic Steel, Inc. (NASDAQ:ZEUS) Q3 2023 Earnings Call Transcript

Rich Manson: So Chris, it’s Rich. And so what we’re seeing here with the bottoming of pricing kind of happening in October — September-October was that contract season kind of moved up for us about a month earlier than normal. And so what I actually think you’ll see is you’ll see actually inventories rise as we bring inventory in during the first quarter — fourth quarter to support first quarter and second quarter sales. And so my anticipation is that you’ll see inventory levels up. From a debt standpoint I think what you see is working capital tends to drain toward the end of the year and that’s certainly true for accounts receivable. But I think that with the increase in inventory I think it’s going to be a pretty negligible amount one way or the other for debt in the fourth quarter.

Chris Sakai: And then one other question. It looks like there was an increase in intangible assets. What is that?

Rick Marabito: It was probably — I’m not sure what period you’re looking at. But Rich I would assume it’s for the Metal-Fab…

Rich Manson: Yes. The last thing Chris, yes, you should have seen was in the first quarter Chris and that was the Metal-Fab acquisition. So you had a substantial amount of intangibles and goodwill brought on the books in the first quarter.

Chris Sakai: Okay. Thanks.

Operator: [Operator Instructions]

Rick Marabito: Okay. I think we’ve cleared all the questions. So thank you operator. And I want to thank everybody 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. Have a good day everybody. Thank you.

Operator: This concludes today’s conference call. You may disconnect your lines at this time. Thank you for your participation and have a great day.