Question-and-Answer Session
Operator
Thank you. (Operator Instructions.) We will take our first question from Bob Richard with Longbow Research.
Bob Richard - Longbow Research
Good morning, and thanks for taking our call.
Michael Siegal
Sure, Bob.
Bob Richard - Longbow Research
If I could discuss cost real quickly. Freight out, if my maths correct, your cost came down appreciably, which is a good thing to see, especially in this increasing fuel and cost environment. Is that benefits from your trucking assets, or is that scale, or could you illuminate that a little bit?
Michael Siegal
I would tell you, Bob, it's predominantly because of the control of bringing ownership into some of the trucks that weren't here previously. So, I mean obviously we're seeing the same escalating costs on fuel everybody else is. But, yeah, I would tell you that bringing a fleet of trucks into the house of Olympic Steel is showing benefits.
Bob Richard - Longbow Research
Great. And, warehouse and processing charges come down significantly also on a per ton basis. Is that mostly scaled-based volume? Is that what's driving that?
Rick Marabito
Yeah, I mean -- Bob, it's Rick. That would be on a per ton basis. Obviously, our tonnage is up there. And aside from some of the normal compensation year-over-year increases, we've done a nice job in terms of controlling the warehouse and processing costs.
Bob Richard - Longbow Research
And my last point, Rick, is the SG&A was up, though, slightly quarter-over-quarter. Any insight on that?
Rick Marabito
That's mainly just, as I talked about in my comments, the effect of our higher earnings and the higher performance-based compensation that our employees are based upon. It resides in Admin.
Bob Richard - Longbow Research
Okay, guys. Thanks very much, and congratulations on your quarter.
Michael Siegal
Thanks, Bob.
Rick Marabito
Thanks, Bob.
Operator
We will take our next question from Mark Parr with KeyBanc Capital Markets
Michael Siegal
Mark.
Mark Parr - KeyBanc Capital Markets.
Hey, good morning.
Michael Siegal
Hey, Mark.
Mark Parr - KeyBanc Capital Markets.
Hey, great quarter.
Michael Siegal
Thank you.
Mark Parr - KeyBanc Capital Markets.
Michael, I was wondering if you could give us some more color on your debt strategy. And you would think, I mean, we've had a conversation and we had a conversation with others about the increasing value of strong financial condition, and you clearly have that. I guess this is probably as good a time as any to think about maybe using some of that to build market share. You clearly built a little market share in the first quarter. I mean, could you talk a little bit about how you plan on deploying some of your capital availability over the next several quarters? Where you think the best financial return could be derived from that?
- To read the full transcript on Seeking Alpha, click here »
