Reliance Steel & Aluminum Co. (NYSE: RS) today reported its
financial results for the second quarter ended June 30, 2023.
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(in
millions, except tons which are in thousands and per share
amounts) |
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Sequential Quarter |
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Six Months Ended
June 30, |
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Year-Over-Year |
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Quarter-Over-Quarter |
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Q2 2023 |
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Q1 2023 |
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% Change |
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2023 |
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2022 |
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% Change |
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Q2 2022 |
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% Change |
Income
Statement Data: |
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Net
sales |
$ |
3,880.3 |
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$ |
3,965.3 |
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(2.1%) |
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$ |
7,845.6 |
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$ |
9,167.0 |
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(14.4%) |
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$ |
4,681.2 |
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(17.1%) |
Gross profit1 |
$ |
1,222.7 |
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$ |
1,226.0 |
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(0.3%) |
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$ |
2,448.7 |
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$ |
2,882.5 |
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(15.0%) |
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$ |
1,495.4 |
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(18.2%) |
Gross profit
margin1 |
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31.5% |
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30.9% |
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0.6% |
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31.2% |
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31.4% |
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(0.2%) |
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31.9% |
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(0.4%) |
Non-GAAP gross
profit margin1,2 |
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31.5% |
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30.9% |
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0.6% |
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31.2% |
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31.5% |
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(0.3%) |
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31.9% |
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(0.4%) |
LIFO (income)
expense |
$ |
(45.0) |
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$ |
(15.0) |
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$ |
(60.0) |
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$ |
50.0 |
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$ |
12.5 |
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LIFO (income)
expense as a % of net sales |
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(1.2%) |
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(0.4%) |
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(0.8%) |
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(0.8%) |
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0.5% |
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(1.3%) |
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0.3% |
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(1.5%) |
LIFO (income)
expense per diluted share, net of tax |
$ |
(0.57) |
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$ |
(0.18) |
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$ |
(0.75) |
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$ |
0.59 |
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$ |
0.15 |
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Non-GAAP pretax
(income) expense adjustments² |
$ |
— |
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$ |
(4.8) |
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$ |
(4.8) |
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$ |
7.5 |
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$ |
0.3 |
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Pretax income |
$ |
510.9 |
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$ |
508.5 |
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0.5% |
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$ |
1,019.4 |
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$ |
1,459.8 |
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(30.2%) |
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$ |
762.6 |
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(33.0%) |
Non-GAAP pretax
income2 |
$ |
510.9 |
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$ |
503.7 |
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1.4% |
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$ |
1,014.6 |
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$ |
1,467.3 |
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(30.9%) |
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$ |
762.9 |
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(33.0%) |
Pretax income
margin |
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13.2% |
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12.8% |
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0.4% |
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13.0% |
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15.9% |
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(2.9%) |
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16.3% |
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(3.1%) |
Net income
attributable to Reliance |
$ |
385.1 |
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$ |
383.1 |
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0.5% |
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$ |
768.2 |
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$ |
1,096.1 |
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(29.9%) |
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$ |
572.8 |
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(32.8%) |
Diluted EPS |
$ |
6.49 |
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$ |
6.43 |
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0.9% |
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$ |
12.92 |
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$ |
17.49 |
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(26.1%) |
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$ |
9.15 |
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(29.1%) |
Non-GAAP diluted
EPS2 |
$ |
6.49 |
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$ |
6.37 |
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1.9% |
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$ |
12.86 |
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$ |
17.57 |
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(26.8%) |
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$ |
9.15 |
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(29.1%) |
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Balance
Sheet and Cash Flow Data: |
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Cash provided by
operations |
$ |
295.1 |
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$ |
384.6 |
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(23.3%) |
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$ |
679.7 |
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$ |
674.2 |
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0.8% |
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$ |
270.2 |
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9.2% |
Free cash
flow3 |
$ |
164.9 |
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$ |
281.7 |
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(41.5%) |
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$ |
446.6 |
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$ |
520.0 |
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(14.1%) |
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$ |
182.7 |
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(9.7%) |
Net debt-to-total
capital4 |
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4.1% |
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4.3% |
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4.1% |
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14.3% |
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14.3% |
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Net
debt-to-EBITDA2,5 |
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0.1x |
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0.1x |
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0.1x |
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0.4x |
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0.4x |
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Total
debt-to-EBITDA2,5 |
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0.5x |
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0.5x |
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0.5x |
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0.6x |
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0.6x |
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Capital
Allocation Data: |
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Acquisition,
net |
$ |
24.1 |
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$ |
— |
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$ |
24.1 |
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$ |
— |
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$ |
— |
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Capital
expenditures |
$ |
130.2 |
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$ |
102.9 |
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$ |
233.1 |
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$ |
154.2 |
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$ |
87.5 |
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Dividends |
$ |
58.6 |
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$ |
62.0 |
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$ |
120.6 |
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$ |
110.6 |
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$ |
53.9 |
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Share
repurchases |
$ |
73.9 |
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$ |
38.9 |
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$ |
112.8 |
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$ |
211.0 |
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$ |
193.9 |
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Key
Business Metrics: |
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Tons sold |
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1,484.1 |
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1,520.1 |
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(2.4%) |
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3,004.2 |
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2,873.6 |
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4.5% |
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1,455.9 |
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1.9% |
Average selling
price per ton sold |
$ |
2,626 |
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$ |
2,623 |
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0.1% |
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$ |
2,625 |
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$ |
3,213 |
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(18.3%) |
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$ |
3,240 |
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(19.0%) |
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Please refer to
the footnotes at the end of this press release for additional
information. |
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Management Commentary“Reliance’s business model
is designed to provide resilient performance throughout economic
cycles, including both pricing and end demand fluctuations present
in the metals industry. The unique facets of our business model,
highlighted by diversification, small order sizes, quick delivery
and increased value-added processing, support our ability to
deliver consistent profitable results,” said Karla Lewis, President
and Chief Executive Officer of Reliance. “Our strong second quarter
results were consistent with the first quarter, with diluted
earnings per share of $6.49 compared to $6.43 per share in the
first quarter of 2023. While our tons sold declined 2.4% from the
first quarter of 2023, they improved 1.9% year-over-year, in part
driven by our investments in organic growth. Overall, the end
markets we serve remained healthy with solid underlying demand and
customer activity levels. Pricing was relatively flat compared to
the first quarter and remained elevated by historical
standards.”
Mrs. Lewis continued, “Our strong profitability, along with
effective working capital management, produced significant
operating cash flow of $295.1 million in the second quarter.
Investing for growth remains our top priority with $154.3 million
invested during the second quarter in both capital expenditures and
our May 1, 2023 acquisition of Southern Steel Supply, LLC. Our
strong cash flow continues to fund our growth initiatives and
fueled $132.5 million of stockholder returns in the second quarter
through dividends and share repurchases. We remain well positioned
to continue investing in and profitably growing our Company and
expect to capitalize on opportunities under the Infrastructure
Bill, the CHIPS Act and the Inflation Reduction Act, while
continuing to provide strong returns to our stockholders. Most
importantly, I would like to thank the team at Reliance for their
continued focus on operating safely while serving our customers and
delivering strong financial performance.”
End Market CommentaryReliance provides a
diverse range of products and processing services to a wide range
of end markets, generally in small quantities on an as-needed
basis. The Company’s tons sold in the second quarter of 2023
declined 2.4% compared to the prior quarter, reflecting one less
shipping day and the impact from the demand pull-forward for carbon
steel flat-rolled products experienced in the first quarter of
2023. The Company’s tons sold increased 1.9% year-over-year due to
strength in the non-residential construction and aerospace end
markets Reliance serves along with contributions from its organic
growth investments.
Demand in non-residential construction (including
infrastructure), Reliance’s largest end market, improved compared
to the second quarter of 2022. Reliance continues to service new
projects in diverse sectors, including public infrastructure,
manufacturing and renewable energy. The Company remains cautiously
optimistic non-residential construction activity in the sectors in
which the Company participates will remain healthy in the third
quarter of 2023 based on current customer sentiment and
backlogs.
Demand across the broader manufacturing sectors Reliance serves,
including industrial machinery, consumer products and heavy
equipment, declined modestly from the first quarter of 2023
partially due to the carbon steel flat-rolled demand pull forward
effect; however, demand improved from the second quarter of 2022.
Reliance anticipates that demand for its products across the
broader manufacturing sector will experience a customary seasonal
slowdown in the third quarter of 2023.
Demand for commercial aerospace remained strong in the second
quarter of 2023. Reliance is optimistic commercial aerospace demand
will continue to improve in the third quarter of 2023 as build
rates increase from 2022 levels. Demand in the military, defense
and space portions of Reliance’s aerospace business also remained
strong with healthy backlogs, which is expected to continue in the
third quarter of 2023.
Demand for the toll processing services Reliance provides to the
automotive market increased from both the first quarter of 2023 and
the second quarter of 2022. Reliance’s niche position in the
automotive market, coupled with recent increases in automotive
production and the continued shift to higher aluminum content,
provide the Company with continued optimism that demand for its
toll processing services will remain solid in the third quarter of
2023.
Demand in the semiconductor market declined from both the first
quarter of 2023 and the second quarter of 2022 due to softening in
certain areas of the market. Nevertheless, Reliance’s long-term
outlook for the semiconductor market remains positive, reinforced
by its investments in additional capacity to service the
significant semiconductor fabrication expansion efforts underway in
the United States.
Balance Sheet & Cash FlowAt June 30, 2023,
Reliance had cash and cash equivalents of $816.3 million and total
debt outstanding of $1.15 billion with no outstanding borrowings
under its $1.5 billion revolving credit facility. Reliance
generated cash flow from operations of $295.1 million during the
second quarter of 2023 driven by its solid profitability and
effective management of working capital.
Stockholder Return ActivityOn July 25, 2023,
the Company’s Board of Directors declared a quarterly cash dividend
of $1.00 per share of common stock, payable on September 1, 2023 to
stockholders of record as of August 18, 2023. Reliance has paid
regular quarterly cash dividends for 64 consecutive years without
reduction or suspension and has increased the dividend 30 times
since its 1994 IPO to a current annual rate of $4.00 per share.
In the second quarter of 2023, the Company repurchased
approximately 308 thousand shares of its common stock at an average
cost of $239.55 per share, for a total of $73.9 million. As of June
30, 2023, $567.9 million remained available under its $1 billion
share repurchase plan authorized on July 26, 2022. Since 2018,
Reliance has repurchased approximately 16.4 million shares of its
common stock at an average cost of $117.98 per share for a total of
$1.94 billion.
Acquisition of Southern Steel Supply, LLCAs
previously announced, on May 1, 2023, Reliance completed the
acquisition of all the outstanding equity interests and the related
real estate assets of Southern Steel Supply, LLC (“Southern
Steel”), a metals service center that offers merchant and
structural steel, pipe and tube, steel plate, ornamental products
and laser cut and fabricated parts. The addition of Southern Steel
expands Reliance’s geographic footprint and value-added processing
capabilities. Southern Steel operates as a subsidiary of Siskin
Steel & Supply Company, Inc., a wholly owned subsidiary of
Reliance. For the twelve months ended December 31, 2022, annual net
sales for Southern Steel were $62.9 million.
Business Outlook Reliance anticipates
underlying demand will remain healthy across the majority of the
end markets it serves in the third quarter of 2023. However, the
Company expects shipment levels to be impacted by normal seasonal
patterns, which include a decline in shipping volumes due to
planned customer shutdowns and vacation schedules, along with one
less shipping day. As a result, the Company expects tons sold will
be down 2% to 4% in the third quarter of 2023 compared to the
second quarter of 2023 but up 1.5% to 3.5% from the third quarter
of 2022. In addition, Reliance expects its average selling price
per ton sold for the third quarter of 2023 to be down 2% to 4%
compared to the second quarter of 2023 primarily driven by
declining prices for flat-rolled products in carbon steel,
stainless steel and common alloy aluminum along with carbon steel
tubing products, which collectively represent about 35% of its
sales. Further, the Company anticipates temporary downward pressure
on its gross profit margin in the third quarter as a result of
selling into a declining metal price environment for certain of its
products. Based on these expectations, the Company anticipates
non-GAAP earnings per diluted share in the range of $4.90 to $5.10
for the third quarter of 2023.
Conference Call DetailsA conference call and
simultaneous webcast to discuss Reliance’s second quarter 2023
financial results and business outlook will be held on Thursday,
July 27, 2023 at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time.
To listen to the live call by telephone, please dial (877) 407-0792
(U.S. and Canada) or (201) 689-8263 (International) approximately
10 minutes prior to the start time and use conference ID: 13739614.
The call will also be broadcast live over the Internet hosted on
the Investors section of the Company's website at
investor.rsac.com.
For those unable to participate during the live broadcast, a
replay of the call will also be available beginning that same day
at 2:00 p.m. Eastern Time until 11:59 p.m. Eastern Time on August
10, 2023, by dialing (844) 512-2921 (U.S. and Canada) or (412)
317-6671 (International) and entering the conference ID: 13739614.
The webcast will remain posted on the Investors section of
Reliance’s website at www.rsac.com for 90 days.
About Reliance Steel & Aluminum Co.Founded
in 1939, Reliance Steel & Aluminum Co. (NYSE: RS) is a leading
global diversified metal solutions provider and the largest metals
service center company in North America. Through a network of
approximately 315 locations in 40 states and 12 countries outside
of the United States, Reliance provides value-added metals
processing services and distributes a full-line of over 100,000
metal products to more than 125,000 customers in a broad range of
industries. Reliance focuses on small orders with quick turnaround
and value-added processing services. In 2022, Reliance’s average
order size was $3,670, approximately 50% of orders included
value-added processing and approximately 40% of orders were
delivered within 24 hours. Reliance Steel & Aluminum Co.’s
press releases and additional information are available on the
Company’s website at rsac.com.
Forward-Looking StatementsThis press release
contains certain statements that are, or may be deemed to be,
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements may include, but are not limited to, discussions of
Reliance’s industry and end markets, business strategies,
acquisitions, and expectations concerning the Company’s future
growth and profitability and its ability to generate industry
leading returns for its stockholders, as well as future demand and
metals pricing and the Company’s results of operations, margins,
profitability, taxes, liquidity, macroeconomic conditions,
including inflation and the possibility of an economic recession or
slowdown, litigation matters and capital resources. In some cases,
you can identify forward-looking statements by terminology such as
“may,” “will,” “should,” “could,” “would,” “expect,” “plan,”
“anticipate,” “believe,” “estimate,” “predict,” “potential,”
“preliminary,” “range,” “intend” and “continue,” the negative of
these terms, and similar expressions.
These forward-looking statements are based on management's
estimates, projections and assumptions as of today’s date that may
not prove to be accurate. Forward-looking statements involve known
and unknown risks and uncertainties and are not guarantees of
future performance. Actual outcomes and results may differ
materially from what is expressed or forecasted in these
forward-looking statements as a result of various important
factors, including, but not limited to, actions taken by Reliance,
as well as developments beyond its control, including, but not
limited to, the possibility that the expected benefits of
acquisitions may not materialize as expected, the impacts of labor
constraints and supply chain disruptions, COVID-19 or any other
similar pandemic or public health situation, and changes in
worldwide and U.S. political and economic conditions such as
inflation and the possibility of an economic recession that could
materially impact the Company, its customers and suppliers and
demand for the Company’s products and services. Deteriorations in
economic conditions as a result of inflation, economic recession,
slowing growth, COVID-19 or outbreaks of other infectious disease,
the conflict between Russia and Ukraine or otherwise, could lead to
a decline in demand for the Company’s products and services and
negatively impact its business, and may also impact financial
markets and corporate credit markets which could adversely impact
the Company’s access to financing, or the terms of any financing.
The Company cannot at this time predict all of the impacts of
inflation, product price fluctuations, economic recession, COVID-19
or any other similar pandemic or public health situation or the
Russia-Ukraine conflict and related economic effects, but these
factors, individually or in any combination, could have a material
adverse effect on the Company’s business, financial position,
results of operations and cash flows.
The statements contained in this press release speak only as of
the date that they are made, and Reliance disclaims any and all
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or for any other reason, except as may be required by law.
Important risks and uncertainties about Reliance’s business can be
found in “Item 1A. Risk Factors” of the Company’s Annual Report on
Form 10-K for the year ended December 31, 2022 and in other
documents Reliance files or furnishes with the United States
Securities and Exchange Commission.
CONTACT: (213)
576-2428investor@rsac.com
or Addo Investor Relations(310) 829-5400
(Tables to follow)
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Second Quarter 2023 Major Commodity Metrics |
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Tons Sold (tons in thousands; % change) |
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Average Selling Price per Ton Sold (% change) |
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Q2 2023 |
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Q1 2023 |
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Sequential Quarter Change |
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Q2 2022 |
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Year-Over-YearChange |
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Sequential Quarter Change |
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Year-Over-YearChange |
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Carbon steel |
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1,205.7 |
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1,232.0 |
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(2.1 |
%) |
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1,169.1 |
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3.1 |
% |
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2.8 |
% |
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(20.9 |
%) |
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Aluminum |
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83.1 |
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86.1 |
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(3.5 |
%) |
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85.2 |
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(2.5 |
%) |
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(1.0 |
%) |
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(8.5 |
%) |
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Stainless steel |
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71.7 |
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76.8 |
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(6.6 |
%) |
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80.3 |
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(10.7 |
%) |
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(1.4 |
%) |
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(16.1 |
%) |
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Alloy |
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34.5 |
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36.3 |
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(5.0 |
%) |
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37.9 |
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(9.0 |
%) |
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2.8 |
% |
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4.5 |
% |
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Sales ($'s in millions; % change) |
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Q2 2023 |
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Q1 2023 |
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Sequential Quarter Change |
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Q2 2022 |
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Year-Over-Year Change |
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Carbon steel |
$ |
2,141.2 |
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$ |
2,128.5 |
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0.6 |
% |
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$ |
2,625.8 |
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(18.5 |
%) |
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Aluminum |
$ |
639.7 |
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$ |
670.2 |
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(4.6 |
%) |
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$ |
716.8 |
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(10.8 |
%) |
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Stainless steel |
$ |
604.0 |
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$ |
657.3 |
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(8.1 |
%) |
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$ |
807.1 |
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(25.2 |
%) |
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Alloy |
$ |
186.8 |
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$ |
191.4 |
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(2.4 |
%) |
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$ |
196.6 |
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(5.0 |
%) |
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Year-to-Date (6 Months) 2023 Major Commodity
Metrics |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons Sold (tons in thousands; % change) |
|
Average Selling Price per Ton Sold (%
change) |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
|
Year-Over-Year Change |
|
Year-Over-Year Change |
|
|
|
|
|
|
|
|
|
|
|
Carbon steel |
|
2,437.7 |
|
|
|
2,294.8 |
|
|
|
6.2 |
% |
|
|
(22.3 |
%) |
|
|
|
|
|
|
|
|
|
|
Aluminum |
|
169.2 |
|
|
|
173.0 |
|
|
|
(2.2 |
%) |
|
|
(5.0 |
%) |
|
|
|
|
|
|
|
|
|
|
Stainless steel |
|
148.5 |
|
|
|
167.1 |
|
|
|
(11.1 |
%) |
|
|
(9.7 |
%) |
|
|
|
|
|
|
|
|
|
|
Alloy |
|
70.8 |
|
|
|
77.6 |
|
|
|
(8.8 |
%) |
|
|
9.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales ($'s in millions; % change) |
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
|
Year-Over-Year Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Carbon steel |
$ |
4,269.7 |
|
|
$ |
5,173.3 |
|
|
|
(17.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aluminum |
$ |
1,309.9 |
|
|
$ |
1,409.6 |
|
|
|
(7.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stainless steel |
$ |
1,261.3 |
|
|
$ |
1,572.0 |
|
|
|
(19.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Alloy |
$ |
378.2 |
|
|
$ |
380.3 |
|
|
|
(0.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by Product ($'s as a % of total
sales) |
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
|
|
|
|
|
Q2 2023 |
|
Q1 2023 |
|
Q2 2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
Carbon steel plate |
|
12 |
% |
|
|
12 |
% |
|
|
11 |
% |
|
|
12 |
% |
|
|
11 |
% |
|
|
|
|
|
|
|
Carbon steel structurals |
|
10 |
% |
|
|
10 |
% |
|
|
9 |
% |
|
|
10 |
% |
|
|
9 |
% |
|
|
|
|
|
|
|
Carbon steel tubing |
|
10 |
% |
|
|
10 |
% |
|
|
12 |
% |
|
|
10 |
% |
|
|
12 |
% |
|
|
|
|
|
|
|
Hot-rolled steel sheet &
coil |
|
9 |
% |
|
|
9 |
% |
|
|
9 |
% |
|
|
9 |
% |
|
|
10 |
% |
|
|
|
|
|
|
|
Carbon steel bar |
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
|
|
|
|
|
Galvanized steel sheet &
coil |
|
4 |
% |
|
|
4 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
5 |
% |
|
|
|
|
|
|
|
Cold-rolled steel sheet &
coil |
|
3 |
% |
|
|
2 |
% |
|
|
3 |
% |
|
|
2 |
% |
|
|
3 |
% |
|
|
|
|
|
|
|
Carbon steel |
|
53 |
% |
|
|
52 |
% |
|
|
54 |
% |
|
|
52 |
% |
|
|
55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aluminum bar & tube |
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
|
|
|
|
|
Heat-treated aluminum
plate |
|
5 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
|
|
|
|
|
Common alloy aluminum sheet
& coil |
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
|
|
|
|
|
Common alloy aluminum
plate |
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
|
|
|
|
|
Heat-treated aluminum sheet
& coil |
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
|
|
|
|
|
Aluminum |
|
16 |
% |
|
|
16 |
% |
|
|
15 |
% |
|
|
16 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stainless steel bar &
tube |
|
7 |
% |
|
|
8 |
% |
|
|
8 |
% |
|
|
8 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
Stainless steel sheet &
coil |
|
6 |
% |
|
|
6 |
% |
|
|
7 |
% |
|
|
6 |
% |
|
|
8 |
% |
|
|
|
|
|
|
|
Stainless steel plate |
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
|
|
|
|
|
Stainless steel |
|
15 |
% |
|
|
16 |
% |
|
|
17 |
% |
|
|
16 |
% |
|
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alloy bar & rod |
|
4 |
% |
|
|
4 |
% |
|
|
3 |
% |
|
|
4 |
% |
|
|
3 |
% |
|
|
|
|
|
|
|
Alloy tube |
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
|
|
|
|
|
Alloy |
|
5 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Miscellaneous |
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
|
|
|
|
|
Toll processing &
logistics |
|
4 |
% |
|
|
4 |
% |
|
|
3 |
% |
|
|
4 |
% |
|
|
3 |
% |
|
|
|
|
|
|
|
Copper & brass |
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
|
|
|
|
|
Other |
|
11 |
% |
|
|
11 |
% |
|
|
10 |
% |
|
|
11 |
% |
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RELIANCE STEEL & ALUMINUM CO. |
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
(in millions, except number of shares which are reflected
in thousands and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net sales |
$ |
3,880.3 |
|
|
$ |
4,681.2 |
|
$ |
7,845.6 |
|
|
$ |
9,167.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (exclusive of depreciation and amortization shown
below) |
|
2,657.6 |
|
|
|
3,185.8 |
|
|
5,396.9 |
|
|
|
6,284.5 |
Warehouse, delivery, selling, general and administrative
(“SG&A”) |
|
650.6 |
|
|
|
648.6 |
|
|
1,301.9 |
|
|
|
1,260.5 |
Depreciation and amortization |
|
60.8 |
|
|
|
59.3 |
|
|
121.9 |
|
|
|
118.4 |
|
|
3,369.0 |
|
|
|
3,893.7 |
|
|
6,820.7 |
|
|
|
7,663.4 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
511.3 |
|
|
|
787.5 |
|
|
1,024.9 |
|
|
|
1,503.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
9.7 |
|
|
|
15.6 |
|
|
20.6 |
|
|
|
31.2 |
Other (income) expense, net |
|
(9.3 |
) |
|
|
9.3 |
|
|
(15.1 |
) |
|
|
12.6 |
Income before income
taxes |
|
510.9 |
|
|
|
762.6 |
|
|
1,019.4 |
|
|
|
1,459.8 |
Income tax provision |
|
124.6 |
|
|
|
188.7 |
|
|
248.7 |
|
|
|
361.3 |
Net income |
|
386.3 |
|
|
|
573.9 |
|
|
770.7 |
|
|
|
1,098.5 |
Less: net income attributable to noncontrolling interests |
|
1.2 |
|
|
|
1.1 |
|
|
2.5 |
|
|
|
2.4 |
Net income attributable to
Reliance |
$ |
385.1 |
|
|
$ |
572.8 |
|
$ |
768.2 |
|
|
$ |
1,096.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Reliance stockholders: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
6.56 |
|
|
$ |
9.29 |
|
$ |
13.07 |
|
|
$ |
17.75 |
Diluted |
$ |
6.49 |
|
|
$ |
9.15 |
|
$ |
12.92 |
|
|
$ |
17.49 |
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing
earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
58,688 |
|
|
|
61,657 |
|
|
58,760 |
|
|
|
61,744 |
Diluted |
|
59,346 |
|
|
|
62,594 |
|
|
59,440 |
|
|
|
62,688 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per share |
$ |
1.00 |
|
|
$ |
0.875 |
|
$ |
2.00 |
|
|
$ |
1.75 |
|
|
|
|
|
|
|
|
|
|
|
|
RELIANCE STEEL & ALUMINUM CO. |
UNAUDITED CONSOLIDATED BALANCE SHEETS |
(in millions, except number of shares
which are reflected in thousands and par
value) |
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
2023 |
|
2022* |
ASSETS |
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
816.3 |
|
|
$ |
1,173.4 |
|
Accounts receivable, less allowance for credit losses of $28.7 at
June 30, 2023 and $26.1 at December 31, 2022 |
|
1,729.9 |
|
|
|
1,565.7 |
|
Inventories |
|
2,202.3 |
|
|
|
1,995.3 |
|
Prepaid expenses and other current assets |
|
109.8 |
|
|
|
115.6 |
|
Income taxes receivable |
|
— |
|
|
|
36.6 |
|
Total current assets |
|
4,858.3 |
|
|
|
4,886.6 |
|
Property, plant and
equipment: |
|
|
|
|
|
Land |
|
270.0 |
|
|
|
262.7 |
|
Buildings |
|
1,434.9 |
|
|
|
1,359.3 |
|
Machinery and equipment |
|
2,578.9 |
|
|
|
2,446.9 |
|
Accumulated depreciation |
|
(2,167.7 |
) |
|
|
(2,094.3 |
) |
Property, plant and equipment, net |
|
2,116.1 |
|
|
|
1,974.6 |
|
Operating lease right-of-use
assets |
|
222.9 |
|
|
|
216.4 |
|
Goodwill |
|
2,109.8 |
|
|
|
2,105.9 |
|
Intangible assets, net |
|
1,002.8 |
|
|
|
1,019.6 |
|
Cash surrender value of life
insurance policies, net |
|
33.2 |
|
|
|
42.0 |
|
Other assets |
|
97.3 |
|
|
|
84.8 |
|
Total assets |
$ |
10,440.4 |
|
|
$ |
10,329.9 |
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
499.8 |
|
|
$ |
412.4 |
|
Accrued expenses |
|
134.6 |
|
|
|
118.8 |
|
Accrued compensation and retirement benefits |
|
181.8 |
|
|
|
240.0 |
|
Accrued insurance costs |
|
45.5 |
|
|
|
43.4 |
|
Current maturities of long-term debt and short-term borrowings |
|
0.3 |
|
|
|
508.2 |
|
Current maturities of operating lease liabilities |
|
54.6 |
|
|
|
52.5 |
|
Income taxes payable |
|
21.2 |
|
|
|
— |
|
Total current liabilities |
|
937.8 |
|
|
|
1,375.3 |
|
Long-term debt |
|
1,140.9 |
|
|
|
1,139.4 |
|
Operating lease
liabilities |
|
170.0 |
|
|
|
165.2 |
|
Long-term retirement
benefits |
|
30.6 |
|
|
|
26.1 |
|
Other long-term
liabilities |
|
59.3 |
|
|
|
51.4 |
|
Deferred income taxes |
|
476.3 |
|
|
|
476.6 |
|
Commitments and
contingencies |
|
|
|
|
|
Equity: |
|
|
|
|
|
Preferred stock, $0.001 par value: 5,000 shares authorized; none
issued or outstanding |
|
— |
|
|
|
— |
|
Common stock and additional paid-in capital, $0.001 par value and
200,000 shares authorized |
|
|
|
|
|
Issued and outstanding shares—58,536 at June 30, 2023 and 58,787 at
December 31, 2022 |
|
0.1 |
|
|
|
0.1 |
|
Retained earnings |
|
7,702.1 |
|
|
|
7,173.6 |
|
Accumulated other comprehensive loss |
|
(86.6 |
) |
|
|
(86.3 |
) |
Total Reliance stockholders’
equity |
|
7,615.6 |
|
|
|
7,087.4 |
|
Noncontrolling interests |
|
9.9 |
|
|
|
8.5 |
|
Total equity |
|
7,625.5 |
|
|
|
7,095.9 |
|
Total liabilities and equity |
$ |
10,440.4 |
|
|
$ |
10,329.9 |
|
|
|
|
|
|
|
* Amounts derived from audited
financial statements. |
|
|
|
|
|
|
|
|
|
|
|
RELIANCE STEEL & ALUMINUM CO. |
UNAUDITED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(in millions) |
|
|
|
|
|
|
|
|
Six Months Ended |
|
June 30, |
|
2023 |
|
|
2022 |
|
Operating
activities: |
|
|
|
|
|
Net income |
$ |
770.7 |
|
|
$ |
1,098.5 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
Depreciation and amortization expense |
|
121.9 |
|
|
|
118.4 |
|
Provision for credit losses |
|
3.8 |
|
|
|
6.6 |
|
Stock-based compensation expense |
|
31.6 |
|
|
|
29.8 |
|
Net loss on life insurance policies and deferred compensation plan
assets |
|
4.0 |
|
|
|
15.4 |
|
Other |
|
(5.6 |
) |
|
|
2.4 |
|
Changes in operating assets
and liabilities (excluding effect of businesses acquired): |
|
|
|
|
|
Accounts receivable |
|
(163.3 |
) |
|
|
(380.6 |
) |
Inventories |
|
(202.1 |
) |
|
|
(291.2 |
) |
Prepaid expenses and other assets |
|
71.1 |
|
|
|
29.2 |
|
Accounts payable and other liabilities |
|
47.6 |
|
|
|
45.7 |
|
Net cash provided by operating activities |
|
679.7 |
|
|
|
674.2 |
|
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
|
Acquisition, net of cash acquired |
|
(24.1 |
) |
|
|
— |
|
Purchases of property, plant and equipment |
|
(233.1 |
) |
|
|
(154.2 |
) |
Proceeds from sales of property, plant and equipment |
|
9.4 |
|
|
|
9.2 |
|
Other |
|
(7.2 |
) |
|
|
(4.4 |
) |
Net cash used in investing activities |
|
(255.0 |
) |
|
|
(149.4 |
) |
|
|
|
|
|
|
Financing
activities: |
|
|
|
|
|
Net short-term debt repayments |
|
(2.2 |
) |
|
|
(0.8 |
) |
Principal payments on long-term debt |
|
(505.7 |
) |
|
|
— |
|
Cash dividends and dividend equivalents |
|
(120.6 |
) |
|
|
(110.6 |
) |
Share repurchases |
|
(112.8 |
) |
|
|
(211.0 |
) |
Taxes paid related to net share settlement of restricted stock
units |
|
(37.3 |
) |
|
|
(17.1 |
) |
Other |
|
(1.8 |
) |
|
|
23.0 |
|
Net cash used in financing activities |
|
(780.4 |
) |
|
|
(316.5 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
|
(1.4 |
) |
|
|
(4.3 |
) |
(Decrease) increase in cash
and cash equivalents |
|
(357.1 |
) |
|
|
204.0 |
|
Cash and cash equivalents at
beginning of year |
|
1,173.4 |
|
|
|
300.5 |
|
Cash and cash equivalents at
end of the period |
$ |
816.3 |
|
|
$ |
504.5 |
|
|
|
|
|
|
|
Supplemental cash flow
information: |
|
|
|
|
|
Interest paid during the
period |
$ |
23.7 |
|
|
$ |
30.3 |
|
Income taxes paid during the
period, net |
$ |
191.0 |
|
|
$ |
427.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RELIANCE STEEL & ALUMINUM CO. |
NON-GAAP RECONCILIATION |
(in millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
Diluted EPS |
|
Three Months Ended |
|
Three Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
March 31, |
|
June 30, |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2023 |
|
2022 |
Net income attributable to Reliance |
$ |
385.1 |
|
|
$ |
383.1 |
|
|
$ |
572.8 |
|
|
$ |
6.49 |
|
|
$ |
6.43 |
|
|
$ |
9.15 |
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain related to sale of
non-core assets |
|
— |
|
|
|
(4.8 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.08 |
) |
|
|
— |
|
Income tax expense (benefit)
related to above items |
|
— |
|
|
|
1.2 |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
Non-GAAP net income
attributable to Reliance |
$ |
385.1 |
|
|
$ |
379.5 |
|
|
$ |
573.0 |
|
|
$ |
6.49 |
|
|
$ |
6.37 |
|
|
$ |
9.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
Diluted EPS |
|
|
|
|
|
|
|
|
Six Months Ended |
|
Six Months Ended |
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
|
|
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
Net income attributable to
Reliance |
|
|
|
$ |
768.2 |
|
|
$ |
1,096.1 |
|
|
$ |
12.92 |
|
|
$ |
17.49 |
|
|
|
|
|
Restructuring charges |
|
|
|
|
— |
|
|
|
1.4 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
|
|
Non-recurring expenses of
acquisitions |
|
|
|
|
— |
|
|
|
8.1 |
|
|
|
— |
|
|
|
0.12 |
|
|
|
|
|
Gains related to sales of
non-core assets |
|
|
|
|
(4.8 |
) |
|
|
(2.0 |
) |
|
|
(0.08 |
) |
|
|
(0.03 |
) |
|
|
|
|
Income tax expense (benefit)
related to above items |
|
|
|
|
1.2 |
|
|
|
(1.9 |
) |
|
|
0.02 |
|
|
|
(0.03 |
) |
|
|
|
|
Non-GAAP net income
attributable to Reliance |
|
|
|
$ |
764.6 |
|
|
$ |
1,101.7 |
|
|
$ |
12.86 |
|
|
$ |
17.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
Pretax income |
$ |
510.9 |
|
|
$ |
508.5 |
|
|
$ |
762.6 |
|
|
$ |
1,019.4 |
|
|
$ |
1,459.8 |
|
|
|
|
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
|
1.4 |
|
|
|
|
|
Non-recurring expenses of
acquisitions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8.1 |
|
|
|
|
|
Gains related to sales of
non-core assets |
|
— |
|
|
|
(4.8 |
) |
|
|
— |
|
|
|
(4.8 |
) |
|
|
(2.0 |
) |
|
|
|
|
Non-GAAP pretax income |
$ |
510.9 |
|
|
$ |
503.7 |
|
|
$ |
762.9 |
|
|
$ |
1,014.6 |
|
|
$ |
1,467.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
Gross profit - LIFO |
$ |
1,222.7 |
|
|
$ |
1,226.0 |
|
|
$ |
1,495.4 |
|
|
$ |
2,448.7 |
|
|
$ |
2,882.5 |
|
|
|
|
|
Amortization of inventory
step-up |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8.1 |
|
|
|
|
|
Non-GAAP gross profit |
|
1,222.7 |
|
|
|
1,226.0 |
|
|
|
1,495.4 |
|
|
|
2,448.7 |
|
|
|
2,890.6 |
|
|
|
|
|
LIFO (income) expense |
|
(45.0 |
) |
|
|
(15.0 |
) |
|
|
12.5 |
|
|
|
(60.0 |
) |
|
|
50.0 |
|
|
|
|
|
Non-GAAP gross profit -
FIFO |
$ |
1,177.7 |
|
|
$ |
1,211.0 |
|
|
$ |
1,507.9 |
|
|
$ |
2,388.7 |
|
|
$ |
2,940.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin -
LIFO |
|
31.5 |
% |
|
|
30.9 |
% |
|
|
31.9 |
% |
|
|
31.2 |
% |
|
|
31.4 |
% |
|
|
|
|
Amortization of inventory
step-up as a % of sales |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
% |
|
|
|
|
Non-GAAP gross profit
margin |
|
31.5 |
% |
|
|
30.9 |
% |
|
|
31.9 |
% |
|
|
31.2 |
% |
|
|
31.5 |
% |
|
|
|
|
LIFO (income) expense as a %
of sales |
|
(1.2 |
%) |
|
|
(0.4 |
%) |
|
|
0.3 |
% |
|
|
(0.8 |
%) |
|
|
0.5 |
% |
|
|
|
|
Non-GAAP gross profit margin -
FIFO |
|
30.3 |
% |
|
|
30.5 |
% |
|
|
32.2 |
% |
|
|
30.4 |
% |
|
|
32.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
|
|
|
|
|
|
2023 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
Total debt |
$ |
1,151.7 |
|
|
$ |
1,159.6 |
|
|
$ |
1,661.4 |
|
|
|
|
|
|
|
|
|
|
|
Less: unamortized debt
discount and debt issuance costs |
|
(10.5 |
) |
|
|
(11.2 |
) |
|
|
(13.7 |
) |
|
|
|
|
|
|
|
|
|
|
Carrying amount of debt |
|
1,141.2 |
|
|
|
1,148.4 |
|
|
|
1,647.7 |
|
|
|
|
|
|
|
|
|
|
|
Less: cash and cash
equivalents |
|
(816.3 |
) |
|
|
(816.2 |
) |
|
|
(504.5 |
) |
|
|
|
|
|
|
|
|
|
|
Net debt |
$ |
324.9 |
|
|
$ |
332.2 |
|
|
$ |
1,143.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
1,516.4 |
|
|
$ |
1,704.0 |
|
|
$ |
1,917.5 |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
243.7 |
|
|
|
242.2 |
|
|
|
233.2 |
|
|
|
|
|
|
|
|
|
|
|
Impairment of long-lived
assets |
|
— |
|
|
|
— |
|
|
|
4.7 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
51.7 |
|
|
|
57.6 |
|
|
|
62.5 |
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
473.6 |
|
|
|
537.7 |
|
|
|
622.3 |
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
2,285.4 |
|
|
$ |
2,541.5 |
|
|
$ |
2,840.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt-to-EBITDA |
|
0.1x |
|
|
0.1x |
|
|
0.4x |
|
|
|
|
|
|
|
|
|
|
Total debt-to-EBITDA |
|
0.5x |
|
|
0.5x |
|
|
0.6x |
|
|
|
|
|
|
|
|
|
|
Reliance Steel & Aluminum Co.’s presentation of non-GAAP pretax
income, net income and EPS over certain time periods is an attempt
to provide meaningful comparisons to the Company's historical
performance for its existing and future stockholders. Adjustments
include gains on sales of non-core property, plant, and equipment,
restructuring charges and non-recurring expenses of its fourth
quarter 2021 acquisitions, which make comparisons of the Company’s
operating results between periods difficult using GAAP measures.
Reliance Steel & Aluminum Co.’s presentation of gross profit
margin - FIFO, which is calculated as gross profit plus LIFO
expense (or minus LIFO income) divided by net sales, is presented
in order to provide a means of comparison amongst its competitors
who may not use the same inventory valuation method. Please see
footnote 1 below for additional information on the Company’s gross
profit and gross profit margin. Reliance Steel & Aluminum Co.
presents net debt- and total debt-to-EBITDA as a measurement of
leverage utilized by management to monitor its debt levels in
relation to its operating cash flow for which it utilizes EBITDA as
a proxy. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Gross profit, calculated as net sales less cost of sales, and
gross profit margin, calculated as gross profit divided by net
sales, are non-GAAP financial measures as they exclude depreciation
and amortization expense associated with the corresponding sales.
About half of Reliance's orders are basic distribution with no
processing services performed. For the remainder of its sales
orders, Reliance performs “first-stage” processing, which is
generally not labor intensive as it is simply cutting the metal to
size. Because of this, the amount of related labor and overhead,
including depreciation and amortization, is not significant and is
excluded from cost of sales. Therefore, Reliance’s cost of sales is
substantially comprised of the cost of the material it sells.
Reliance uses gross profit and gross profit margin, as shown, as
measures of operating performance. Gross profit and gross profit
margin are important operating and financial measures, as their
fluctuations can have a significant impact on Reliance's earnings.
Gross profit and gross profit margin, as presented, are not
necessarily comparable with similarly titled measures for other
companies. |
2 See accompanying Non-GAAP Reconciliation. Certain percentages may
not calculate due to rounding. |
3 Free cash flow is calculated as cash provided by operations
reduced by capital expenditures. |
4 Net debt-to-total capital is calculated as carrying amount of
debt (net of cash) divided by total Reliance stockholders’ equity
plus carrying amount of debt (net of cash). |
5 Net debt- and total debt-to-EBITDA are calculated as carrying
amount of debt (net of cash) or total debt divided by earnings
before interest, income taxes, depreciation, amortization and
impairment of long-lived assets (“EBITDA”) for the most recent
twelve months. |
Reliance (NYSE:RS)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Reliance (NYSE:RS)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024