Reliance, Inc. (NYSE: RS) today reported its financial results for
the third quarter ended September 30, 2024.
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| (in
millions, except tons which are in thousands, average selling price
per ton sold and per share amounts) |
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Sequential Quarter |
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Nine Months Ended September 30, |
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Year-Over-Year |
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Year-Over-Year |
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|
Q3 2024* |
|
Q2 2024 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
Q3 2023 |
|
% Change |
| Income Statement
Data: |
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Net sales |
|
$ |
3,420.3 |
|
|
$ |
3,643.3 |
|
|
(6.1 |
%) |
|
$ |
10,708.4 |
|
|
$ |
11,468.6 |
|
|
(6.6 |
%) |
|
$ |
3,623.0 |
|
|
(5.6 |
%) |
| Gross profit1 |
|
$ |
1,006.3 |
|
|
$ |
1,086.0 |
|
|
(7.3 |
%) |
|
$ |
3,220.5 |
|
|
$ |
3,525.7 |
|
|
(8.7 |
%) |
|
$ |
1,077.0 |
|
|
(6.6 |
%) |
| Gross profit
margin1 |
|
|
29.4% |
|
|
|
29.8% |
|
|
(0.4 |
%) |
|
|
30.1% |
|
|
|
30.7% |
|
|
(0.6 |
%) |
|
|
29.7% |
|
|
(0.3 |
%) |
| Non-GAAP gross profit
margin1,2 |
|
|
29.4% |
|
|
|
29.8% |
|
|
(0.4 |
%) |
|
|
30.1% |
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|
|
30.7% |
|
|
(0.6 |
%) |
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|
29.7% |
|
|
(0.3 |
%) |
| LIFO income |
|
$ |
(50.0 |
) |
|
$ |
(50.0 |
) |
|
|
|
$ |
(150.0 |
) |
|
$ |
(105.0 |
) |
|
|
|
$ |
(45.0 |
) |
|
|
| LIFO income as a % of net
sales |
|
|
(1.5% |
) |
|
|
(1.4% |
) |
|
(0.1 |
%) |
|
|
(1.4% |
) |
|
|
(0.9% |
) |
|
(0.5 |
%) |
|
|
(1.2% |
) |
|
(0.3 |
%) |
| LIFO income per diluted share,
net of tax |
|
$ |
(0.68 |
) |
|
$ |
(0.66 |
) |
|
|
|
$ |
(1.98 |
) |
|
$ |
(1.33 |
) |
|
|
|
$ |
(0.57 |
) |
|
|
| Non-GAAP pretax expense
(income) adjustments² |
|
$ |
2.5 |
|
|
$ |
(1.6 |
) |
|
|
|
$ |
5.8 |
|
|
$ |
(3.8 |
) |
|
|
|
$ |
1.0 |
|
|
|
| Pretax income |
|
$ |
260.5 |
|
|
$ |
349.7 |
|
|
(25.5 |
%) |
|
$ |
1,006.4 |
|
|
$ |
1,407.4 |
|
|
(28.5 |
%) |
|
$ |
388.0 |
|
|
(32.9 |
%) |
| Non-GAAP pretax income2 |
|
$ |
263.0 |
|
|
$ |
348.1 |
|
|
(24.4 |
%) |
|
$ |
1,012.2 |
|
|
$ |
1,403.6 |
|
|
(27.9 |
%) |
|
$ |
389.0 |
|
|
(32.4 |
%) |
| Pretax income margin |
|
|
7.6% |
|
|
|
9.6% |
|
|
(2.0 |
%) |
|
|
9.4% |
|
|
|
12.3% |
|
|
(2.9 |
%) |
|
|
10.7% |
|
|
(3.1 |
%) |
| Net income attributable to
Reliance |
|
$ |
199.2 |
|
|
$ |
267.8 |
|
|
(25.6 |
%) |
|
$ |
769.9 |
|
|
$ |
1,063.2 |
|
|
(27.6 |
%) |
|
$ |
295.0 |
|
|
(32.5 |
%) |
| Diluted EPS |
|
$ |
3.61 |
|
|
$ |
4.67 |
|
|
(22.7 |
%) |
|
$ |
13.55 |
|
|
$ |
17.92 |
|
|
(24.4 |
%) |
|
$ |
4.99 |
|
|
(27.7 |
%) |
| Non-GAAP diluted EPS2 |
|
$ |
3.64 |
|
|
$ |
4.65 |
|
|
(21.7 |
%) |
|
$ |
13.63 |
|
|
$ |
17.87 |
|
|
(23.7 |
%) |
|
$ |
5.00 |
|
|
(27.2 |
%) |
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| Balance Sheet and Cash
Flow Data: |
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| Cash provided by
operations |
|
$ |
463.9 |
|
|
$ |
366.3 |
|
|
26.6 |
% |
|
$ |
956.5 |
|
|
$ |
1,145.7 |
|
|
(16.5 |
%) |
|
$ |
466.0 |
|
|
(0.5 |
%) |
| Free cash flow3 |
|
$ |
351.1 |
|
|
$ |
268.1 |
|
|
31.0 |
% |
|
$ |
636.8 |
|
|
$ |
787.1 |
|
|
(19.1 |
%) |
|
$ |
340.5 |
|
|
3.1 |
% |
| Net debt-to-total
capital4 |
|
|
11.5% |
|
|
|
9.4% |
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|
|
|
|
11.5% |
|
|
|
2.1% |
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|
2.1% |
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| Net debt-to-EBITDA2,5 |
|
|
0.6x |
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|
0.5x |
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|
0.6x |
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|
0.1x |
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|
0.1x |
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| Total debt-to-EBITDA2,5 |
|
|
0.8x |
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|
0.7x |
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|
0.8x |
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0.5x |
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0.5x |
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| Capital Allocation
Data: |
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| Acquisitions, net |
|
$ |
20.2 |
|
|
$ |
292.8 |
|
|
|
|
$ |
366.7 |
|
|
$ |
24.1 |
|
|
|
|
$ |
— |
|
|
|
| Capital expenditures |
|
$ |
112.8 |
|
|
$ |
98.2 |
|
|
|
|
$ |
319.7 |
|
|
$ |
358.6 |
|
|
|
|
$ |
125.5 |
|
|
|
| Dividends |
|
$ |
60.6 |
|
|
$ |
62.6 |
|
|
|
|
$ |
188.5 |
|
|
$ |
179.3 |
|
|
|
|
$ |
58.7 |
|
|
|
| Share repurchases |
|
$ |
432.0 |
|
|
$ |
519.3 |
|
|
|
|
$ |
951.3 |
|
|
$ |
239.2 |
|
|
|
|
$ |
126.4 |
|
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| Key Business
Metrics: |
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| Tons sold |
|
|
1,521.4 |
|
|
|
1,553.5 |
|
|
(2.1 |
%) |
|
|
4,568.9 |
|
|
|
4,425.0 |
|
|
3.3 |
% |
|
|
1,420.8 |
|
|
7.1 |
% |
| Tons sold (same-store) |
|
|
1,465.2 |
|
|
|
1,489.6 |
|
|
(1.6 |
%) |
|
|
4,431.2 |
|
|
|
4,412.6 |
|
|
0.4 |
% |
|
|
1,413.6 |
|
|
3.7 |
% |
| Average selling price per ton
sold |
|
$ |
2,246 |
|
|
$ |
2,348 |
|
|
(4.3 |
%) |
|
$ |
2,345 |
|
|
$ |
2,602 |
|
|
(9.9 |
%) |
|
$ |
2,552 |
|
|
(12.0 |
%) |
| Average selling price per ton
sold (same-store) |
|
$ |
2,266 |
|
|
$ |
2,376 |
|
|
(4.6 |
%) |
|
$ |
2,365 |
|
|
$ |
2,604 |
|
|
(9.2 |
%) |
|
$ |
2,557 |
|
|
(11.4 |
%) |
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| * Q3 2024
includes one more shipping day compared to the same 2023
period. |
| Please refer to
the footnotes at the end of this press release for additional
information. |
| |
Management Commentary “Our businesses
continued to execute well through challenging market conditions in
the third quarter, once again outperforming the industry in
shipments while maintaining a gross profit margin within our
sustainable range, which we refer to as smart, profitable growth,”
said Karla Lewis, President and Chief Executive Officer of
Reliance. “Although metals pricing declined more than anticipated,
the inherent resilience of our business model servicing diverse end
markets with expansive value-added processing capabilities and
quick-turn orders, as well as increased volume, helped mitigate the
impact of lower pricing levels to our gross profit margin and
supported non-GAAP earnings per diluted share of $3.64, in-line
with our guidance.”
Mrs. Lewis continued, “In the third quarter, we generated $463.9
million of cash flow from operations, underpinned by strong
profitability and our effective working capital management through
cyclical markets. Our consistently strong cash flow continues to
fuel execution of all key pillars of our capital allocation
strategy. We invested $112.8 million in capital expenditures, the
majority of which was directed towards growth activities, and
closed our fourth acquisition of 2024. We repurchased $432.0
million of our common stock, reducing our outstanding shares by
nearly 3% during the quarter, as we opportunistically repurchased
our shares amid the broader pullback in equity prices across the
metals space. In addition, we paid $60.6 million in dividends,
highlighting our commitment to our valued stockholders. While
near-term uncertainty is contributing to headwinds in demand and
pricing, our resilient business model and positive long-range view
support our confidence in our ability to continue executing our
strategic growth and stockholder return priorities.”
End Market CommentaryReliance provides a
diverse range of metal products and value-added 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 third quarter of
2024 increased 7.1% compared to the prior year quarter, above
management’s expectations of up 4.5% to 6.5%. On a same-store
basis, the Company’s tons sold increased 3.7% compared to the prior
year quarter and decreased 1.6% compared to the second quarter of
2024, reflecting somewhat better than normal seasonal trends due to
its strategic growth efforts.
Demand in non-residential construction (including
infrastructure), Reliance’s largest end market, improved compared
to the third quarter of 2023. Reliance continues to service new
construction projects in diverse sectors, including public
infrastructure, manufacturing, data centers and energy
infrastructure. The Company expects non-residential construction
demand to remain relatively stable in the fourth quarter, subject
to normal seasonality.
Demand across the broader manufacturing sectors Reliance serves
strengthened compared to the third quarter of 2023 primarily due to
relative strength in industrial machinery, military, shipbuilding,
and rail. Weaker demand in consumer products and heavy equipment
partially offset the stronger demand seen in other manufacturing
sectors. Reliance anticipates that demand for its products across
the broader manufacturing sector will experience a customary
seasonal slowdown in the fourth quarter of 2024.
Demand in commercial aerospace remained stable compared to the
third quarter of 2023. Reliance anticipates fairly consistent
demand in the fourth quarter of 2024, subject to the impact on
build rates, supply chain disruption and pricing attributable to
the ongoing Boeing labor stoppage. Strong demand in the military
and space related portions of Reliance’s aerospace business is
expected to continue in the fourth quarter of 2024.
Demand for the toll processing services Reliance provides to the
automotive market increased compared to the third quarter of 2023.
The Company expects demand for automotive toll processing to remain
stable in the fourth quarter of 2024, subject to normal
seasonality.
Demand in the semiconductor market declined compared to the
third quarter of 2023. The Company anticipates demand will remain
under pressure in the fourth quarter of 2024 due to excess
inventory in the supply chain. Reliance’s long-term outlook for the
semiconductor market remains positive.
Balance Sheet & Cash FlowAs previously
announced on September 10, 2024, Reliance amended and restated
its existing $1.5 billion unsecured revolving credit agreement for
a new five-year term.
Reliance is positioned to continue operating from a position of
financial strength and to continue executing its flexible and
opportunistic capital allocation strategy which is focused on both
growth and stockholder returns. During the third quarter, Reliance
invested $112.8 million in capital expenditures, $23 million for an
acquisition, and returned $492.6 million to its stockholders
through dividends and opportunistic share repurchases.
At September 30, 2024, Reliance had cash and cash equivalents of
$314.6 million and total outstanding debt of $1.28 billion, with
$125.0 million outstanding and approximately $1.37 billion
available for borrowing under its amended and restated $1.5 billion
unsecured revolving credit facility.
Reliance generated cash flow from operations of $463.9 million
in the third quarter of 2024.
Stockholder Return ActivityOn October 22, 2024,
the Company’s Board of Directors declared a quarterly cash dividend
of $1.10 per share of common stock, payable on December 6, 2024 to
stockholders of record as of November 22, 2024. Reliance has paid
regular quarterly cash dividends for 65 consecutive years without
reduction or suspension.
In the third quarter of 2024, Reliance repurchased approximately
1.5 million shares of its common stock at an average cost of
$281.37 per share, for a total of $432.0 million. On October 22,
2024, the Board of Directors approved an amendment of Reliance’s
share repurchase plan, replenishing the repurchase authorization to
$1.5 billion without a set expiration date. From 2019 through
September 30, 2024, Reliance has repurchased approximately 15.1
million shares of its common stock at an average cost of $183.37
per share for a total of $2.77 billion.
AcquisitionEffective August 16, 2024, with cash
on hand, Reliance completed its acquisition of certain toll
processing assets of the FerrouSouth division of Ferragon
Corporation (“FerrouSouth”), a premier toll processing operation
headquartered in Iuka, Mississippi. Net sales for the FerrouSouth
toll processing operations for the year ended December 31, 2023
were approximately $15 million.
Business Outlook Given the significant
uncertainty currently surrounding economic policy in the U.S.,
Reliance anticipates underlying demand will weaken temporarily
across the majority of the end markets it serves in the fourth
quarter of 2024, recovering as we move into 2025. Due to normal
seasonal trends and heightened macroeconomic and political
uncertainty, the Company estimates its tons sold will be down 6.0%
to 8.0% in the fourth quarter of 2024 compared to the third quarter
of 2024 and up 4.0% to 6.0% from the fourth quarter of 2023 with
0.5% to 2.5% attributable to same store growth. Reliance expects
its average selling price per ton sold for the fourth quarter of
2024 to be down 1.5% to 3.5% compared to the third quarter of 2024
with continued pricing pressure across carbon steel products.
Reliance anticipates its FIFO gross profit margin to stabilize in
the fourth quarter of 2024, reflecting better alignment of
replacement costs and inventory costs on hand. Based on these
expectations, the Company anticipates non-GAAP earnings per diluted
share in the range of $2.65 to $2.85 for the fourth quarter of
2024.
Conference Call DetailsA conference call and
simultaneous webcast to discuss Reliance’s third quarter 2024
financial results and business outlook will be held on Thursday,
October 24, 2024 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: 13749249. The call will also be broadcast live over the
Internet hosted on the Investors section of the Company's website
at investor.reliance.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 November
7, 2024, by dialing (844) 512-2921 (U.S. and Canada) or (412)
317-6671 (International) and entering the conference ID: 13749249.
The webcast will remain posted on the Investors section of
Reliance’s website at reliance.com for 90 days.
About Reliance, Inc.Founded in 1939, Reliance,
Inc. (NYSE: RS) is a leading global diversified metal solutions
provider and the largest metals service center company in North
America. Through a network of more than 320 locations in 41 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 2023,
Reliance’s average order size was $3,210, approximately 51% of
orders included value-added processing and approximately 40% of
orders were delivered within 24 hours. Reliance, Inc.’s press
releases and additional information are available on the Company’s
website at reliance.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, changes in domestic and
worldwide political and economic conditions such as inflation and
the possibility of an economic recession that could materially
impact the Company, its customers and suppliers, metals pricing,
and demand for the Company’s products and services. Deteriorations
in economic conditions as a result of inflation, economic
recession, slowing growth, outbreaks of infectious disease,
conflicts such as the war in Ukraine and the evolving events in
Israel and Gaza 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, outbreaks of infectious disease
or the war in Ukraine and the Israel-Gaza 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 hereof, and Reliance disclaims any and all obligations 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, 2023 and in other documents Reliance files
or furnishes with the United States Securities and Exchange
Commission.
CONTACT: (213)
576-2428investor@reliance.com
or Addo Investor Relations(310) 829-5400
(Tables to follow)
| Third
Quarter 2024 Major Commodity Metrics |
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|
Tons Sold (tons in thousands; % change) |
|
Average Selling Price per Ton Sold (% change) |
|
|
|
Q3 2024 |
|
Q2 2024 |
|
Sequential Quarter Change |
|
Q3 2023 |
|
Year-Over-Year Change |
|
Sequential Quarter Change |
|
Year-Over-Year Change |
|
Carbon steel |
|
|
1,246.9 |
|
|
|
1,274.3 |
|
|
|
(2.2 |
%) |
|
|
1,150.6 |
|
|
|
8.4 |
% |
|
|
(6.4 |
%) |
|
|
(14.2 |
%) |
| Aluminum |
|
|
80.2 |
|
|
|
81.3 |
|
|
|
(1.4 |
%) |
|
|
78.2 |
|
|
|
2.6 |
% |
|
|
(0.4 |
%) |
|
|
(5.0 |
%) |
| Stainless steel |
|
|
73.2 |
|
|
|
73.6 |
|
|
|
(0.5 |
%) |
|
|
69.9 |
|
|
|
4.7 |
% |
|
|
(0.9 |
%) |
|
|
(11.9 |
%) |
| Alloy |
|
|
30.2 |
|
|
|
32.5 |
|
|
|
(7.1 |
%) |
|
|
31.2 |
|
|
|
(3.2 |
%) |
|
|
0.5 |
% |
|
|
(7.7 |
%) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sales ($'s in millions; % change) |
|
|
|
|
|
|
| |
|
Q3 2024 |
|
Q2 2024 |
|
Sequential Quarter Change |
|
Q3 2023 |
|
Year-Over-Year Change |
|
|
|
|
|
|
| Carbon steel |
|
$ |
1,856.2 |
|
|
$ |
2,025.7 |
|
|
|
(8.4 |
%) |
|
$ |
1,996.9 |
|
|
|
(7.0 |
%) |
|
|
|
|
|
|
| Aluminum |
|
$ |
576.3 |
|
|
$ |
587.8 |
|
|
|
(2.0 |
%) |
|
$ |
592.6 |
|
|
|
(2.8 |
%) |
|
|
|
|
|
|
| Stainless steel |
|
$ |
513.9 |
|
|
$ |
521.8 |
|
|
|
(1.5 |
%) |
|
$ |
557.5 |
|
|
|
(7.8 |
%) |
|
|
|
|
|
|
| Alloy |
|
$ |
155.9 |
|
|
$ |
166.8 |
|
|
|
(6.5 |
%) |
|
$ |
174.4 |
|
|
|
(10.6 |
%) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date (9 Months) 2024 Major Commodity
Metrics |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons Sold (tons in thousands; % change) |
|
AverageSelling Price per Ton Sold (%
change) |
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
Year-Over-Year Change |
|
Year-Over-Year Change |
|
|
|
|
|
|
|
|
|
| Carbon steel |
|
|
3,736.0 |
|
|
|
3,588.3 |
|
|
|
4.1 |
% |
|
|
(9.6 |
%) |
|
|
|
|
|
|
|
|
|
| Aluminum |
|
|
243.3 |
|
|
|
247.4 |
|
|
|
(1.7 |
%) |
|
|
(5.9 |
%) |
|
|
|
|
|
|
|
|
|
| Stainless steel |
|
|
222.3 |
|
|
|
218.4 |
|
|
|
1.8 |
% |
|
|
(13.8 |
%) |
|
|
|
|
|
|
|
|
|
| Alloy |
|
|
95.7 |
|
|
|
102.0 |
|
|
|
(6.2 |
%) |
|
|
(4.6 |
%) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sales ($'s in millions; % change) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2024 |
|
|
2023 |
|
|
Year-Over-Year Change |
|
|
|
|
|
|
|
|
|
|
|
|
| Carbon steel |
|
$ |
5,894.8 |
|
|
$ |
6,266.6 |
|
|
|
(5.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
| Aluminum |
|
$ |
1,760.2 |
|
|
$ |
1,902.5 |
|
|
|
(7.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
| Stainless steel |
|
$ |
1,595.6 |
|
|
$ |
1,818.8 |
|
|
|
(12.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
| Alloy |
|
$ |
494.6 |
|
|
$ |
552.6 |
|
|
|
(10.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sales by Product ($'s as a % of total sales) |
|
|
|
|
|
|
| |
|
|
|
Nine Months Ended |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
|
|
|
|
|
|
|
Q3 2024 |
|
Q2 2024 |
|
Q3 2023 |
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
| Carbon steel plate |
|
|
12 |
% |
|
|
12 |
% |
|
|
12 |
% |
|
|
12 |
% |
|
|
12 |
% |
|
|
|
|
|
|
| Carbon steel structurals |
|
|
12 |
% |
|
|
11 |
% |
|
|
11 |
% |
|
|
11 |
% |
|
|
11 |
% |
|
|
|
|
|
|
| Carbon steel tubing |
|
|
9 |
% |
|
|
10 |
% |
|
|
10 |
% |
|
|
10 |
% |
|
|
10 |
% |
|
|
|
|
|
|
| Hot-rolled steel sheet &
coil |
|
|
8 |
% |
|
|
9 |
% |
|
|
9 |
% |
|
|
8 |
% |
|
|
9 |
% |
|
|
|
|
|
|
| Carbon steel bar |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
|
|
|
|
| Galvanized steel sheet &
coil |
|
|
5 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
|
|
|
|
| Cold-rolled steel sheet &
coil |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
|
|
|
|
|
Carbon steel |
|
|
53 |
% |
|
|
54 |
% |
|
|
53 |
% |
|
|
53 |
% |
|
|
53 |
% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aluminum bar & tube |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
|
|
|
|
| Heat-treated aluminum
plate |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
|
|
|
|
| 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 |
% |
|
|
16 |
% |
|
|
16 |
% |
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stainless steel bar &
tube |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
|
|
|
|
| Stainless steel sheet &
coil |
|
|
5 |
% |
|
|
5 |
% |
|
|
6 |
% |
|
|
5 |
% |
|
|
6 |
% |
|
|
|
|
|
|
| Stainless steel plate |
|
|
3 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
|
|
|
|
|
Stainless steel |
|
|
15 |
% |
|
|
14 |
% |
|
|
15 |
% |
|
|
14 |
% |
|
|
15 |
% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alloy bar & rod |
|
|
3 |
% |
|
|
3 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
|
|
|
|
| Alloy tube |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
|
|
|
|
|
Alloy |
|
|
4 |
% |
|
|
4 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Miscellaneous |
|
|
6 |
% |
|
|
6 |
% |
|
|
5 |
% |
|
|
6 |
% |
|
|
5 |
% |
|
|
|
|
|
|
| Toll processing &
logistics |
|
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
|
|
|
|
| Copper & brass |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
|
|
|
|
|
Other |
|
|
12 |
% |
|
|
12 |
% |
|
|
11 |
% |
|
|
12 |
% |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
RELIANCE, INC. |
|
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
|
(in millions, except number of shares which are reflected
in thousands and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
September 30, |
|
September 30, |
| |
|
2024 |
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Net sales |
|
$ |
3,420.3 |
|
$ |
3,623.0 |
|
|
$ |
10,708.4 |
|
|
$ |
11,468.6 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (exclusive of depreciation and amortization shown
below) |
|
|
2,414.0 |
|
|
2,546.0 |
|
|
|
7,487.9 |
|
|
|
7,942.9 |
|
|
Warehouse, delivery, selling, general and administrative
(“SG&A”) |
|
|
665.0 |
|
|
626.9 |
|
|
|
2,004.2 |
|
|
|
1,928.8 |
|
|
Depreciation and amortization |
|
|
67.9 |
|
|
60.6 |
|
|
|
198.1 |
|
|
|
182.5 |
|
| |
|
|
3,146.9 |
|
|
3,233.5 |
|
|
|
9,690.2 |
|
|
|
10,054.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
|
273.4 |
|
|
389.5 |
|
|
|
1,018.2 |
|
|
|
1,414.4 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Other (income) expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
10.9 |
|
|
9.7 |
|
|
|
30.3 |
|
|
|
30.3 |
|
|
Other expense (income), net |
|
|
2.0 |
|
|
(8.2 |
) |
|
|
(18.5 |
) |
|
|
(23.3 |
) |
| Income before income
taxes |
|
|
260.5 |
|
|
388.0 |
|
|
|
1,006.4 |
|
|
|
1,407.4 |
|
| Income tax provision |
|
|
60.6 |
|
|
92.0 |
|
|
|
234.4 |
|
|
|
340.7 |
|
| Net income |
|
|
199.9 |
|
|
296.0 |
|
|
|
772.0 |
|
|
|
1,066.7 |
|
|
Less: net income attributable to noncontrolling interests |
|
|
0.7 |
|
|
1.0 |
|
|
|
2.1 |
|
|
|
3.5 |
|
| Net income attributable to
Reliance |
|
$ |
199.2 |
|
$ |
295.0 |
|
|
$ |
769.9 |
|
|
$ |
1,063.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share
attributable to Reliance stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
3.64 |
|
$ |
5.05 |
|
|
$ |
13.68 |
|
|
$ |
18.13 |
|
|
Diluted |
|
$ |
3.61 |
|
$ |
4.99 |
|
|
$ |
13.55 |
|
|
$ |
17.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares used in computing
earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
54,691 |
|
|
58,427 |
|
|
|
56,297 |
|
|
|
58,648 |
|
|
Diluted |
|
|
55,182 |
|
|
59,124 |
|
|
|
56,813 |
|
|
|
59,333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash dividends per share |
|
$ |
1.10 |
|
$ |
1.00 |
|
|
$ |
3.30 |
|
|
$ |
3.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RELIANCE, INC. |
|
UNAUDITED CONSOLIDATED BALANCE SHEETS |
|
(in millions, except number of shares
which are reflected in thousands and par
value) |
|
|
|
|
|
|
|
|
|
|
| |
|
September 30, |
|
December 31, |
| |
|
2024 |
|
2023* |
|
ASSETS |
| Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
314.6 |
|
|
$ |
1,080.2 |
|
|
Accounts receivable, less allowance for credit losses of $26.6 at
September 30, 2024 and $24.9 at December 31, 2023 |
|
|
1,566.7 |
|
|
|
1,472.4 |
|
|
Inventories |
|
|
2,205.8 |
|
|
|
2,043.2 |
|
|
Prepaid expenses and other current assets |
|
|
123.5 |
|
|
|
140.4 |
|
|
Income taxes receivable |
|
|
1.9 |
|
|
|
35.6 |
|
|
Total current assets |
|
|
4,212.5 |
|
|
|
4,771.8 |
|
| Property, plant and
equipment: |
|
|
|
|
|
|
|
Land |
|
|
294.3 |
|
|
|
281.7 |
|
|
Buildings |
|
|
1,648.1 |
|
|
|
1,510.9 |
|
|
Machinery and equipment |
|
|
2,902.1 |
|
|
|
2,700.4 |
|
|
Accumulated depreciation |
|
|
(2,341.5 |
) |
|
|
(2,244.6 |
) |
|
Property, plant and equipment, net |
|
|
2,503.0 |
|
|
|
2,248.4 |
|
| Operating lease right-of-use
assets |
|
|
271.0 |
|
|
|
231.6 |
|
| Goodwill |
|
|
2,170.9 |
|
|
|
2,111.1 |
|
| Intangible assets, net |
|
|
1,031.5 |
|
|
|
981.1 |
|
| Cash surrender value of life
insurance policies, net |
|
|
29.8 |
|
|
|
43.8 |
|
| Other long-term assets |
|
|
82.1 |
|
|
|
92.5 |
|
|
Total assets |
|
$ |
10,300.8 |
|
|
$ |
10,480.3 |
|
| |
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
| |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
440.9 |
|
|
$ |
410.3 |
|
|
Accrued expenses |
|
|
132.8 |
|
|
|
118.5 |
|
|
Accrued compensation and retirement benefits |
|
|
194.1 |
|
|
|
213.9 |
|
|
Accrued insurance costs |
|
|
45.1 |
|
|
|
44.4 |
|
|
Current maturities of long-term debt |
|
|
399.5 |
|
|
|
0.3 |
|
|
Current maturities of operating lease liabilities |
|
|
60.1 |
|
|
|
56.2 |
|
|
Total current liabilities |
|
|
1,272.5 |
|
|
|
843.6 |
|
| Long-term debt |
|
|
867.8 |
|
|
|
1,141.9 |
|
| Operating lease
liabilities |
|
|
210.8 |
|
|
|
178.9 |
|
| Long-term retirement
benefits |
|
|
29.1 |
|
|
|
25.1 |
|
| Other long-term
liabilities |
|
|
57.6 |
|
|
|
64.0 |
|
| Deferred income taxes |
|
|
501.8 |
|
|
|
494.0 |
|
|
Total liabilities |
|
|
2,939.6 |
|
|
|
2,747.5 |
|
| 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—54,119 at
September 30, 2024 and 57,271 at December 31, 2023 |
|
|
0.1 |
|
|
|
0.1 |
|
|
Retained earnings |
|
|
7,433.5 |
|
|
|
7,798.9 |
|
|
Accumulated other comprehensive loss |
|
|
(83.1 |
) |
|
|
(76.7 |
) |
|
Total Reliance stockholders’ equity |
|
|
7,350.5 |
|
|
|
7,722.3 |
|
|
Noncontrolling interests |
|
|
10.7 |
|
|
|
10.5 |
|
|
Total equity |
|
|
7,361.2 |
|
|
|
7,732.8 |
|
|
Total liabilities and equity |
|
$ |
10,300.8 |
|
|
$ |
10,480.3 |
|
| |
|
|
|
|
|
|
| * Derived from audited
financial statements. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
RELIANCE, INC. |
|
UNAUDITED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended |
| |
|
September 30, |
| |
|
2024 |
|
2023 |
| Operating
activities: |
|
|
|
|
|
|
|
Net income |
|
$ |
772.0 |
|
|
$ |
1,066.7 |
|
| Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
|
198.1 |
|
|
|
182.5 |
|
|
Stock-based compensation expense |
|
|
43.0 |
|
|
|
48.4 |
|
|
Other |
|
|
5.0 |
|
|
|
7.5 |
|
| Changes in operating assets
and liabilities (excluding effect of businesses acquired): |
|
|
|
|
|
|
|
Accounts receivable |
|
|
(51.9 |
) |
|
|
(102.0 |
) |
|
Inventories |
|
|
(52.3 |
) |
|
|
(113.5 |
) |
|
Prepaid expenses and other assets |
|
|
105.7 |
|
|
|
91.1 |
|
|
Accounts payable and other liabilities |
|
|
(63.1 |
) |
|
|
(35.0 |
) |
|
Net cash provided by operating activities |
|
|
956.5 |
|
|
|
1,145.7 |
|
|
|
|
|
|
|
|
|
| Investing
activities: |
|
|
|
|
|
|
|
Acquisitions, net of cash acquired |
|
|
(366.7 |
) |
|
|
(24.1 |
) |
|
Purchases of property, plant and equipment |
|
|
(319.7 |
) |
|
|
(358.6 |
) |
|
Other |
|
|
13.0 |
|
|
|
14.9 |
|
|
Net cash used in investing activities |
|
|
(673.4 |
) |
|
|
(367.8 |
) |
|
|
|
|
|
|
|
|
| Financing
activities: |
|
|
|
|
|
|
|
Net short-term debt repayments |
|
|
— |
|
|
|
(2.2 |
) |
|
Proceeds from long-term debt borrowings |
|
|
663.0 |
|
|
|
— |
|
|
Principal payments on long-term debt |
|
|
(538.0 |
) |
|
|
(505.7 |
) |
|
Cash dividends and dividend equivalents |
|
|
(188.5 |
) |
|
|
(179.3 |
) |
|
Share repurchases |
|
|
(951.3 |
) |
|
|
(239.2 |
) |
|
Taxes paid related to net share settlement of restricted stock
units |
|
|
(29.6 |
) |
|
|
(41.3 |
) |
|
Other |
|
|
(4.3 |
) |
|
|
(3.0 |
) |
|
Net cash used in financing activities |
|
|
(1,048.7 |
) |
|
|
(970.7 |
) |
| Effect of exchange rate
changes on cash and cash equivalents |
|
|
— |
|
|
|
(3.7 |
) |
| Decrease in cash and cash
equivalents |
|
|
(765.6 |
) |
|
|
(196.5 |
) |
| Cash and cash equivalents at
beginning of year |
|
|
1,080.2 |
|
|
|
1,173.4 |
|
| Cash and cash equivalents at
end of the period |
|
$ |
314.6 |
|
|
$ |
976.9 |
|
| |
|
|
|
|
|
|
| Supplemental cash flow
information: |
|
|
|
|
|
|
| Interest paid during the
period |
|
$ |
27.7 |
|
|
$ |
32.5 |
|
| Income taxes paid during the
period, net |
|
$ |
197.1 |
|
|
$ |
305.2 |
|
| |
|
|
|
|
|
|
|
RELIANCE, INC. |
|
NON-GAAP RECONCILIATION |
|
(in millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
Diluted EPS |
|
|
|
Three Months Ended |
|
Three Months Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
June 30, |
|
September 30, |
|
|
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
|
Net income attributable to Reliance |
|
$ |
199.2 |
|
|
$ |
267.8 |
|
|
$ |
295.0 |
|
|
$ |
3.61 |
|
|
$ |
4.67 |
|
|
$ |
4.99 |
|
| Restructuring charges |
|
|
2.1 |
|
|
|
0.4 |
|
|
|
1.0 |
|
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.02 |
|
| Non-recurring income of
acquisitions |
|
|
(1.6 |
) |
|
|
(2.0 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
|
(0.03 |
) |
|
|
— |
|
| Non-recurring settlement
charges |
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
| Debt restructuring charge |
|
|
1.5 |
|
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
|
— |
|
| Income tax (benefit) expense
related to above items |
|
|
(0.6 |
) |
|
|
0.4 |
|
|
|
(0.3 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
| Non-GAAP net income
attributable to Reliance |
|
$ |
201.1 |
|
|
$ |
266.6 |
|
|
$ |
295.7 |
|
|
$ |
3.64 |
|
|
$ |
4.65 |
|
|
$ |
5.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Net Income |
|
Diluted EPS |
|
|
|
| |
|
|
|
|
Nine Months Ended |
|
Nine Months Ended |
|
|
|
| |
|
|
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
| |
|
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
| Net income attributable to
Reliance |
|
|
|
|
$ |
769.9 |
|
|
$ |
1,063.2 |
|
|
$ |
13.55 |
|
|
$ |
17.92 |
|
|
|
|
| Restructuring charges |
|
|
|
|
|
2.8 |
|
|
|
1.0 |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
|
|
| Non-recurring income of
acquisitions |
|
|
|
|
|
(3.6 |
) |
|
|
— |
|
|
|
(0.06 |
) |
|
|
— |
|
|
|
|
| Non-recurring settlement
charges |
|
|
|
|
|
5.1 |
|
|
|
— |
|
|
|
0.09 |
|
|
|
— |
|
|
|
|
| Debt restructuring charge |
|
|
|
|
|
1.5 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
|
|
| Gains related to sales of
non-core assets |
|
|
|
|
|
— |
|
|
|
(4.8 |
) |
|
|
— |
|
|
|
(0.08 |
) |
|
|
|
| Income tax (benefit) expense
related to above items |
|
|
|
|
|
(1.4 |
) |
|
|
0.9 |
|
|
|
(0.02 |
) |
|
|
0.01 |
|
|
|
|
| Non-GAAP net income
attributable to Reliance |
|
|
|
|
$ |
774.3 |
|
|
$ |
1,060.3 |
|
|
$ |
13.63 |
|
|
$ |
17.87 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
| |
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
| |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
| Pretax income |
|
$ |
260.5 |
|
|
$ |
349.7 |
|
|
$ |
388.0 |
|
|
$ |
1,006.4 |
|
|
$ |
1,407.4 |
|
|
|
|
| Restructuring charges |
|
|
2.1 |
|
|
|
0.4 |
|
|
|
1.0 |
|
|
|
2.8 |
|
|
|
1.0 |
|
|
|
|
| Non-recurring income of
acquisitions |
|
|
(1.6 |
) |
|
|
(2.0 |
) |
|
|
— |
|
|
|
(3.6 |
) |
|
|
— |
|
|
|
|
| Non-recurring settlement
charges |
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
5.1 |
|
|
|
— |
|
|
|
|
| Debt restructuring charge |
|
|
1.5 |
|
|
|
— |
|
|
|
— |
|
|
|
1.5 |
|
|
|
— |
|
|
|
|
| Gains related to sales of
non-core assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4.8 |
) |
|
|
|
| Non-GAAP pretax income |
|
$ |
263.0 |
|
|
$ |
348.1 |
|
|
$ |
389.0 |
|
|
$ |
1,012.2 |
|
|
$ |
1,403.6 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
| |
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
| |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
| Gross profit - LIFO |
|
$ |
1,006.3 |
|
|
$ |
1,086.0 |
|
|
$ |
1,077.0 |
|
|
$ |
3,220.5 |
|
|
$ |
3,525.7 |
|
|
|
|
| Amortization of inventory
step-down |
|
|
(1.6 |
) |
|
|
(2.0 |
) |
|
|
— |
|
|
|
(3.6 |
) |
|
|
— |
|
|
|
|
| Restructuring charges |
|
|
1.7 |
|
|
|
— |
|
|
|
— |
|
|
|
1.7 |
|
|
|
— |
|
|
|
|
| Non-GAAP gross profit |
|
|
1,006.4 |
|
|
|
1,084.0 |
|
|
|
1,077.0 |
|
|
|
3,218.6 |
|
|
|
3,525.7 |
|
|
|
|
| LIFO income |
|
|
(50.0 |
) |
|
|
(50.0 |
) |
|
|
(45.0 |
) |
|
|
(150.0 |
) |
|
|
(105.0 |
) |
|
|
|
| Non-GAAP gross profit -
FIFO |
|
$ |
956.4 |
|
|
$ |
1,034.0 |
|
|
$ |
1,032.0 |
|
|
$ |
3,068.6 |
|
|
$ |
3,420.7 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit margin -
LIFO |
|
|
29.4 |
% |
|
|
29.8 |
% |
|
|
29.7 |
% |
|
|
30.1 |
% |
|
|
30.7 |
% |
|
|
|
| Amortization of inventory
step-down as a % of sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
| Restructuring charges as a %
of sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
| Non-GAAP gross profit
margin |
|
|
29.4 |
% |
|
|
29.8 |
% |
|
|
29.7 |
% |
|
|
30.1 |
% |
|
|
30.7 |
% |
|
|
|
| LIFO income as a % of
sales |
|
|
(1.5 |
%) |
|
|
(1.4 |
%) |
|
|
(1.2 |
%) |
|
|
(1.4 |
%) |
|
|
(0.9 |
%) |
|
|
|
| Non-GAAP gross profit margin -
FIFO |
|
|
27.9 |
% |
|
|
28.4 |
% |
|
|
28.5 |
% |
|
|
28.7 |
% |
|
|
29.8 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September 30, |
|
June 30, |
|
September 30, |
|
|
|
|
|
|
|
| |
|
2024 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
| Total debt |
|
$ |
1,276.4 |
|
|
$ |
1,151.4 |
|
|
$ |
1,151.7 |
|
|
|
|
|
|
|
|
|
|
| Less: unamortized debt
discount and debt issuance costs |
|
|
(9.1 |
) |
|
|
(7.8 |
) |
|
|
(9.8 |
) |
|
|
|
|
|
|
|
|
|
| Carrying amount of debt |
|
|
1,267.3 |
|
|
|
1,143.6 |
|
|
|
1,141.9 |
|
|
|
|
|
|
|
|
|
|
| Less: cash and cash
equivalents |
|
|
(314.6 |
) |
|
|
(350.8 |
) |
|
|
(976.9 |
) |
|
|
|
|
|
|
|
|
|
| Net debt |
|
$ |
952.7 |
|
|
$ |
792.8 |
|
|
$ |
165.0 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Twelve Months Ended |
|
|
|
|
|
|
|
|
|
| |
|
September 30, |
|
June 30, |
|
September 30, |
|
|
|
|
|
|
|
|
|
| |
|
2024 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
| Net income |
|
$ |
1,045.4 |
|
|
$ |
1,141.5 |
|
|
$ |
1,418.0 |
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
261.0 |
|
|
|
253.7 |
|
|
|
243.9 |
|
|
|
|
|
|
|
|
|
|
| Interest expense |
|
|
40.1 |
|
|
|
38.9 |
|
|
|
45.8 |
|
|
|
|
|
|
|
|
|
|
| Income taxes |
|
|
294.3 |
|
|
|
325.7 |
|
|
|
436.0 |
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
$ |
1,640.8 |
|
|
$ |
1,759.8 |
|
|
$ |
2,143.7 |
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
| Net debt-to-EBITDA |
|
|
0.6x |
|
|
0.5x |
|
|
0.1x |
|
|
|
|
|
|
|
|
|
| Total debt-to-EBITDA |
|
|
0.8x |
|
|
0.7x |
|
|
0.5x |
|
|
|
|
|
|
|
|
|
| |
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|
Reliance, Inc.’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
restructuring charges, non-recurring income of its acquisitions,
non-recurring settlement charges, non-recurring expenses related to
the amendment of its credit agreement, and gains on sales of
non-core property, plant, and equipment, which make comparisons of
the Company’s operating results between periods difficult using
GAAP measures. Reliance, Inc.’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, Inc. 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. |
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|
Footnotes |
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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. |
Grafico Azioni Reliance (NYSE:RS)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Reliance (NYSE:RS)
Storico
Da Nov 2023 a Nov 2024
