展品99.1
Reliance, Inc.公佈2024年第三季度財務結果
— 净销售额為34.2億美元，销量比2023年第三季增长7.1%。
— 毛利潤率為29.4%
— 每股收益為3.61美元，非依照通用會計原則計算的每股收益為3.64美元
— 來自業務運作的現金流為46390萬美元
— 每股$43200萬的股票回購，使流通股減少3％；將現有的股票回購計劃補充至$15億
— 修訂並重新簽訂的15億美元授信協議，為新的五年期
— 於2024年8月16日完成收購FerrouSouth過路加工資產
2024年10月24日，亞利桑那州斯科茨代爾（GLOBE NEWSWIRE）-- 信賴公司（紐交所：RS）今日公佈2024年9月30日結束的第三季度財務業績。
| (以百萬為單位，吨為千單位，每噸銷售平均價格和每股金額) | |||||||||||||||||||||||||||||
| 連續 季度 | 截至九個月 九月三十日， | 年度- 超過- 年 | 年度- 過- 年 | ||||||||||||||||||||||||||
| Q3 2024* | Q2 2024 | 變化百分比 % | 2024 | 2023 | 變化百分比 % | Q3 2023 | 變化百分比 % | ||||||||||||||||||||||
| 損益表數據: | |||||||||||||||||||||||||||||
| 淨銷售額 | $ | 3,420.3 | $ | 3,643.3 | (6.1 | %) | $ | 10,708.4 | $ | 11,468.6 | (6.6 | %) | $ | 3,623.0 | (5.6 | %) | |||||||||||||
| 毛利潤1 | $ | 1,006.3 | $ | 1,086.0 | (7.3 | %) | $ | 3,220.5 | $ | 3,525.7 | (8.7 | %) | $ | 1,077.0 | (6.6 | %) | |||||||||||||
| 毛利潤率1 | 29.4% | 29.8% | (0.4 | %) | 30.1% | 30.7% | (0.6 | %) | 29.7% | (0.3 | %) | ||||||||||||||||||
| 非GAAP毛利潤率1,2 | 29.4% | 29.8% | (0.4 | %) | 30.1% | 30.7% | (0.6 | %) | 29.7% | (0.3 | %) | ||||||||||||||||||
| 後進先出（LIFO）收入 | $ | (50.0 | ) | $ | (50.0 | ) | $ | (150.0 | ) | $ | (105.0 | ) | $ | (45.0 | ) | ||||||||||||||
| 後進先出（LIFO）收入占淨銷售額的百分比 | (1.5% | ) | (1.4% | ) | (0.1 | %) | (1.4% | ) | (0.9% | ) | (0.5 | %) | (1.2% | ) | (0.3 | %) | |||||||||||||
| 每股稀釋股息後LIFO收入，稅後淨額 | $ | (0.68 | ) | $ | (0.66 | ) | $ | (1.98 | ) | $ | (1.33 | ) | $ | (0.57 | ) | ||||||||||||||
| 非通用會計原則稅前費用（收入）調整² | $ | 2.5 | $ | (1.6 | ) | $ | 5.8 | $ | (3.8 | ) | $ | 1.0 | |||||||||||||||||
| 稅前收入 | $ | 260.5 | $ | 349.7 | (25.5 | %) | $ | 1,006.4 | $ | 1,407.4 | (28.5 | %) | $ | 388.0 | (32.9 | %) | |||||||||||||
| 非依照通用會計原則前稅收入2 | $ | 263.0 | $ | 348.1 | (24.4 | %) | $ | 1,012.2 | $ | 1,403.6 | (27.9 | %) | $ | 389.0 | (32.4 | %) | |||||||||||||
| 稅前收入率 | 7.6% | 9.6% | (2.0 | %) | 9.4% | 12.3% | (2.9 | %) | 10.7% | (3.1 | %) | ||||||||||||||||||
| 歸屬於信實的凈利潤 | $ | 199.2 | $ | 267.8 | (25.6 | %) | $ | 769.9 | $ | 1,063.2 | (27.6 | %) | $ | 295.0 | (32.5 | %) | |||||||||||||
| 攤薄後每股收益 | $ | 3.61 | $ | 4.67 | (22.7 | %) | $ | 13.55 | $ | 17.92 | (24.4 | %) | $ | 4.99 | (27.7 | %) | |||||||||||||
| 非通用稀釋每股收益2 | $ | 3.64 | $ | 4.65 | (21.7 | %) | $ | 13.63 | $ | 17.87 | (23.7 | %) | $ | 5.00 | (27.2 | %) | |||||||||||||
| 資產負債表和現金流數據: | |||||||||||||||||||||||||||||
| 營運活動所提供的現金流量 | $ | 463.9 | $ | 366.3 | 26.6 | % | $ | 956.5 | $ | 1,145.7 | (16.5 | %) | $ | 466.0 | (0.5 | %) | |||||||||||||
| 自由現金流3 | $ | 351.1 | $ | 268.1 | 31.0 | % | $ | 636.8 | $ | 787.1 | (19.1 | %) | $ | 340.5 | 3.1 | % | |||||||||||||
| 淨債務/總資本4 | 11.5% | 9.4% | 11.5% | 2.1% | 2.1% | ||||||||||||||||||||||||
| 淨債務/息稅折舊攤銷前利潤2,5 | 0.6x | 0.5x | 0.6x | 0.1x | 0.1x | ||||||||||||||||||||||||
| 總債務/息稅折舊攤銷前利潤2,5 | 0.8x | 0.7x | 0.8x | 0.5x | 0.5x | ||||||||||||||||||||||||
| 資本配置數據： | |||||||||||||||||||||||||||||
| 收購凈額 | $ | 20.2 | $ | 292.8 | $ | 366.7 | $ | 24.1 | $ | — | |||||||||||||||||||
| 資本支出 | $ | 112.8 | $ | 98.2 | $ | 319.7 | $ | 358.6 | $ | 125.5 | |||||||||||||||||||
| 分紅派息 | $ | 60.6 | $ | 62.6 | $ | 188.5 | $ | 179.3 | $ | 58.7 | |||||||||||||||||||
| 股份回購 | $ | 432.0 | $ | 519.3 | $ | 951.3 | $ | 239.2 | $ | 126.4 | |||||||||||||||||||
| 關鍵業務指標: | |||||||||||||||||||||||||||||
| 銷售噸數 | 1,521.4 | 1,553.5 | (2.1 | %) | 4,568.9 | 4,425.0 | 3.3 | % | 1,420.8 | 7.1 | % | ||||||||||||||||||
| 銷售噸數 (同店) | 1,465.2 | 1,489.6 | (1.6 | %) | 4,431.2 | 4,412.6 | 0.4 | % | 1,413.6 | 3.7 | % | ||||||||||||||||||
| 每噸銷售平均價格 | $ | 2,246 | $ | 2,348 | (4.3 | %) | $ | 2,345 | $ | 2,602 | (9.9 | %) | $ | 2,552 | (12.0 | %) | |||||||||||||
| 每噸銷售平均價格 (同店) | $ | 2,266 | $ | 2,376 | (4.6 | %) | $ | 2,365 | $ | 2,604 | (9.2 | %) | $ | 2,557 | (11.4 | %) | |||||||||||||
| * 2024年第3季相較於2023年同期多出一個運輸日。 | |||||||||||||||||||||||||||||
| 請查閱本新聞稿末尾的註釋，以獲得更多資訊。 | |||||||||||||||||||||||||||||
管理層評論
“在第三季度充滿挑戰的市場環境中，我們的業務繼續表現出色，再次在出貨量方面優於行業，同時保持了在我們可持續區間內的毛利率，我們將其稱為智慧、有利可圖的增長，”Reliance的總裁兼首席執行官Karla Lewis表示。 「儘管金屬價格下跌幅度超出預期，但我們業務模式內在的韌性，為多元終端市場提供廣泛增值加工能力和快速訂單，以及增加的成交量，有助於減輕價格水平下降對我們毛利率的影響，並支持每股非通用會計原則盈利3.64美元，符合我們的預測。」
路易斯太太續述說：「在第三季度，我們從營運中產生了46390萬的現金流，這主要得益於強勁的盈利能力以及我們在周期市場中有效的營運資本管理。我們持續強勁的現金流繼續支援所有關鍵支柱，執行我們的資本配置策略。我們在資本支出上投資了11280萬，其中大部分用於增長活動，並完成了2024年的第四宗收購。我們回購了43200萬的公司股票，在股價普遍下滑的金屬空間中抓住機會回購了我們的股份，使本季的流通股份減少了近3%。此外，我們支付了6060萬的股息，凸顯了我們對尊貴股東的承諾。儘管短期內的不確定性對需求和價格帶來了阻力，但我們堅韌的業務模式和積極的長期展望支持我們對繼續執行我們的戰略增長和股東回報優先事項的信心。」
市場評論結束
Reliance向各種不同區間的終端市場提供各種金屬製品和增值加工服務，通常以小批量按需提供。公司在2024年第三季度的銷售噸數較去年同期增長了7.1%，超出管理層預期的4.5%至6.5%。根據同店營業績，公司的銷售噸數較去年同期增長了3.7%，較2024年第二季度下降了1.6%，反映出由於戰略增長努力而較正常季節性趨勢稍好。
製造行業的需求（包括基礎設施），Reliance最大的終端市場，較2023年第三季度有所改善。Reliance繼續在各個不同部門的新建築項目中提供服務，包括公共基礎設施、製造業、數據中心和能源基礎設施。公司預計非住宅施工需求在第四季度將保持相對穩定，受到正常季節性因素影響。
Reliance所服務的較廣泛製造業板塊的需求，與2023年第三季相比有所增強，主要是由於機械製造、軍工、造船和鐵路等板塊相對實力較強。消費品和重型機械股的需求疲弱，部分抵消了其他製造業板塊需求的增強。Reliance預計，其產品在較廣泛的製造業板塊的需求將在2024年第四季經歷一般的季節性放緩。
商用航空業的需求與2023年第三季度相比保持穩定。Reliance預計在2024年第四季度會有相對穩定的需求，但會受制於波音勞資停工對建造速度、供應鏈混亂和價格造成的影響。預計Reliance航太業務中軍工和航天相關部分的強勁需求會在2024年第四季度持續。
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 Flow
As 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 Activity
On 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.
Acquisition
Effective 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 Details
A 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 Statements
This 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) 576-2428
investor@reliance.com
or Addo Investor Relations
(310) 829-5400
(Tables to follow)
| Third Quarter 2024 Major Commodity Metrics | ||||||||||||||||||||||||||||
| 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) | Average Selling 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 | ||||||||||||||||||
| Net debt-to-EBITDA | 0.6x | 0.5x | 0.1x | |||||||||||||||||||||
| Total debt-to-EBITDA | 0.8x | 0.7x | 0.5x | |||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||||||