Reliance Steel & Aluminum Co logo

RS - Reliance Steel & Aluminum Co News Story

$154.3 -2.3  -1.5%

Last Trade - 9:10pm

Sector
Basic Materials
Size
Large Cap
Market Cap £7.26bn
Enterprise Value £7.97bn
Revenue £6.41bn
Position in Universe 931st / 6841

Reliance Steel & Aluminum Co. Reports Fourth Quarter and Full Year 2020 Financial Results

Thu 18th February, 2021 11:50am
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20210218:nGNX3P341Q&default-theme=true


- Record annual gross profit margin of 31.5%, record fourth quarter gross
profit margin of 33.0%
- Annual EPS of $5.66, annual non-GAAP EPS of $7.71, fourth quarter EPS of
$2.01
-Strong annual cash flow from operations of $1.17 billion
- Annual share repurchases of $337.3 million
- Increased quarterly dividend 10.0% to $0.6875 per share

LOS ANGELES, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Reliance Steel & Aluminum Co.
(NYSE: RS) today reported its financial results for the fourth quarter and
full year ended December 31, 2020.

(in millions, except tons which are in thousands and per share amounts)

                                                                                                                                                                                                                                                                                 
                                                                                                                                          Sequential Quarter        Twelve Months                                 Year-Over-Year                             Year-Over-Year      
                                                                                                                                                                    Ended December 31,                                                                                           
                                                  Q4 2020                                     Q3 2020                                     % Change                       2020                    2019             % Change              Q4 2019              % Change            
 Income Statement Data:                                                                                                                                                                                                                                                          
 Net sales                                        $          2,134.1                          $          2,085.6                          2.3%                      $    8,811.9            $    10,973.8         (19.7     )%          $    2,447.8         (12.8     )%        
 Gross profit (1 )                                $          703.6                            $          676.1                            4.1%                      $    2,775.1            $    3,329.4          (16.6     )%          $    794.2           (11.4     )%        
 Gross profit margin (1 )                                    33.0%                                       32.4%                            0.6%                           31.5%                   30.3%            1.2       %                32.4%           0.6       %         
 Non-GAAP gross profit margin (1,2)                          32.9%                                       32.4%                            0.5%                           31.9%                   30.3%            1.6       %                32.4%           0.5       %         
 Non-GAAP pretax income adjustments (2)           $          0.1                              $          31.0                                                       $    179.0              $    0.3                                    $    —                                   
 Pretax income                                    $          166.1                            $          127.0                            30.8%                     $    478.2              $    929.3            (48.5     )%          $    209.6           (20.8     )%        
 Non-GAAP pretax income (2 )                      $          166.2                            $          158.0                            5.2%                      $    657.2              $    929.6            (29.3     )%          $    209.6           (20.7     )%        
 Net income attributable to Reliance              $          129.6                            $          97.6                             32.8%                     $    369.1              $    701.5            (47.4     )%          $    165.6           (21.7     )%        
 Diluted EPS                                      $          2.01                             $          1.51                             33.1%                     $    5.66               $    10.34            (45.3     )%          $    2.44            (17.6     )%        
 Non-GAAP diluted EPS (2)                         $          2.01                             $          1.87                             7.5%                      $    7.71               $    10.34            (25.4     )%          $    2.44            (17.6     )%        
                                                                                                                                                                                                                                                                                 
 Balance Sheet and Cash Flow Data:                                                                                                                                                                                                                                               
 Cash provided by operations                      $          230.2                            $          296.3                            (22.3       )%            $    1,173.0            $    1,301.5          (9.9      )%          $    347.4           (33.7     )%        
 Free cash flow (3)                               $          192.9                            $          258.1                            (25.3       )%            $    1,001.0            $    1,059.3          (5.5      )%          $    288.0           (33.0     )%        
 Net debt-to-total capital (4)                               15.8%                                       17.3%                                                           15.8%                   21.4%                                       21.4%                               
                                                                                                                                                                                                                                                                                 
 Capital Allocation Data:                                                                                                                                                                                                                                                        
 Capital expenditures                             $          37.3                             $          38.2                                                       $    172.0              $    242.2                                  $    59.4                                
 Acquisitions, net                                $          6.9                              $          —                                                          $    6.9                $    177.8                                  $    176.8                               
 Dividends                                        $          41.3                             $          41.0                                                       $    164.1              $    151.3                                  $    38.0                                
 Share repurchases                                $          37.1                             $          0.2                                                        $    337.3              $    50.0                                   $    —                                   
                                                                                                                                                                                                                                                                                 
 Key Business Metrics:                                                                                                                                                                                                                                                           
 Tons sold                                                   1,266.4                                     1,283.5                          (1.3        )%                 5,230.5                 5,861.6          (10.8     )%               1,375.7         (7.9      )%        
 Tons sold (same-store)                                      1,265.4                                     1,282.2                          (1.3        )%                 5,225.0                 5,861.6          (10.9     )%               1,375.7         (8.0      )%        
 Average selling price per ton sold               $          1,683                            $          1,609                            4.6         %             $    1,681              $    1,860            (9.6      )%          $    1,763           (4.5      )%        
 Average selling price per ton sold (same-store)  $          1,673                            $          1,597                            4.8         %             $    1,668              $    1,860            (10.3     )%          $    1,763           (5.1      )%        
                                                                                                                                                                                                                                                                                 
 Please refer to the footnotes at the end of this press release for additional information.                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                 

Management Commentary
“Despite the extraordinary challenges 2020 presented on a global scale, we
are extremely pleased with the strong execution of all of our employees within
the Reliance Family of Companies who demonstrated the resiliency of our
business model with our core values of health and safety at the forefront,”
said Jim Hoffman, Chief Executive Officer of Reliance. “Operating as an
essential business, we were able to rapidly respond to fluid market conditions
through our decentralized operating structure, and made significant reductions
in our operating costs to maintain solid profitability. We achieved record
gross profit margins for both the full year and fourth quarter of 2020. Our
results demonstrate the strength and resiliency of our people and unique
business model, as well as our ability to execute through both good times and
bad given the diversity of our products, end markets and geographies. During
the fourth quarter, favorable demand and pricing trends, coupled with our
strategy of providing superior customer service and when-needed inventory,
along with our ability to service small order sizes and provide more value to
our customers through specialized value-added processing, collectively helped
us generate a record fourth quarter gross profit margin of 33.0% on net sales
of $2.13 billion. The combination of better than expected market conditions
and effective expense management contributed to our record gross profit
margins and to the generation of $2.01 of earnings per share in the fourth
quarter of 2020, well above our outlook.”

Mr. Hoffman continued, “Following our record year in 2019, we again
generated very strong cash flow from operations of $1.17 billion in 2020
driven by our profitability and relentless focus on working capital
management. Our countercyclical cash flow generation and strong financial
position, enhanced by our 2020 financing activities, allow us to remain
flexible and opportunistic in executing our growth initiatives while
concurrently returning value to our stockholders. The majority of our capital
expenditures in 2020 funded growth opportunities to continue meeting and
exceeding the needs of our customers, with an ongoing emphasis on value-added
processing capabilities to drive improved margins and profitability over time.
We also returned value to our stockholders in 2020 through $164.1 million in
quarterly cash dividends and $337.3 million of share repurchases.”

Mr. Hoffman concluded, “Over the past year, we adapted to operate more
efficiently than ever before without sacrificing our competitive edge and the
critical elements of our business that make Reliance a trusted and reliable
partner. Looking ahead, we will continue to execute and improve upon
Reliance’s tried and true model that has delivered industry-leading results
for many decades, with a commitment to strong pricing discipline, diligent
expense control, when-needed inventory management, and innovation.”

End Market Commentary
Reliance services diverse end markets and provides a wide range of products
and processing services, generally in small quantities on a when-needed basis.
During the fourth quarter of 2020, the Company experienced ongoing
improvements in demand in nearly all of the end markets it serves. The
Company’s shipments declined only 1.3% compared to the third quarter of
2020, outperforming Reliance’s expectations of a 4% to 6% decline consistent
with the typical fourth quarter seasonal slowdown from customer
holiday-related shutdowns and fewer shipping days.

Non-residential construction, Reliance’s largest end market, remained
relatively steady during the fourth quarter of 2020 due to strong product
pricing and healthy bidding activity. Reliance is cautiously optimistic that
demand for non-residential construction activity in Reliance’s space will
continue at these levels through the first quarter of 2021 based on healthy
backlogs and quoting activity along with positive customer sentiment.

Demand for the toll processing services Reliance provides to the automotive
market was strong in the fourth quarter as automotive OEMs and steel and
aluminum mills continued to ramp production as a result of re-openings
following COVID-19 shutdowns in the second quarter. Reliance maintains a
positive outlook for this end market and continues to focus on growth and
innovation in toll processing, including expansion of its toll processing
operations.

Demand in heavy industry for both agricultural and construction equipment
rebounded to solid levels in the fourth quarter as production schedules
increased following customer re-openings from COVID-19 related shutdowns.
Reliance believes demand will continue to improve in the first quarter of 2021
based on positive customer feedback and solid shipping trends.

Semiconductor demand in the fourth quarter of 2020 continued to strengthen
from the third quarter of 2020. Reliance remains optimistic that demand will
remain strong in the first half of 2021.

Demand in the aerospace defense market remained strong during the fourth
quarter of 2020. However, demand in commercial aerospace continued to decline
as a direct result of reduced air travel due to COVID-19. Reliance maintains
its positive outlook for the aerospace defense market, and is cautiously
optimistic that demand in commercial aerospace may begin to slowly recover in
the latter half of 2021.

Demand in the energy (oil and natural gas) market remained under pressure in
the fourth quarter of 2020 with modest improvement expected in the first
quarter of 2021. Reliance closed certain facilities servicing the energy
market early in 2020 and believes its remaining businesses servicing the
energy sector are well positioned to support a recovery in this market.

Balance Sheet & Cash Flow
As previously announced, in early August of 2020 Reliance completed the public
offering of $400 million aggregate principal amount of 1.30% senior notes due
2025 and $500 million aggregate principal amount of 2.15% senior notes due
2030. The Company used a portion of the net proceeds from the notes offering
to repay all outstanding indebtedness under its unsecured revolving credit
facility and its unsecured term loan and will utilize the remaining proceeds
for general corporate purposes. In addition, in September 2020, Reliance
amended and restated its $1.5 billion unsecured revolving credit facility for
a new five-year term.

At December 31, 2020, Reliance had total debt outstanding of $1.66 billion
with no outstanding borrowings under its new $1.5 billion revolving credit
facility and a net debt-to-EBITDA ratio of 1.1x for the year ended December
31, 2020. Reliance generated cash flow from operations of $230.2 million
during the fourth quarter of 2020 and $1.17 billion for the full year of 2020.
This strong, countercyclical cash generation enabled the Company to invest
$172.0 million in capital expenditures and return $501.4 million to its
stockholders in the form of dividends and share repurchases in 2020.

Stockholder Return Activity
On February 16, 2021, the Board of Directors declared a quarterly cash
dividend of $0.6875 per share of common stock, an increase of 10.0%, payable
on March 26, 2021 to stockholders of record as of March 12, 2021. Reliance has
paid regular quarterly dividends for 61 consecutive years without suspension
or reduction and has increased the dividend 28 times since its 1994 IPO.

During the fourth quarter of 2020, Reliance repurchased approximately 0.3
million shares of its common stock at an average cost of $108.43 per share,
for a total of $37.1 million. For the full year of 2020, Reliance repurchased
approximately 3.7 million shares of its common stock at an average cost of
$91.80 per share, for a total of $337.3 million. At December 31, 2020,
approximately 2.8 million shares, or approximately 4% of the Company’s
common shares currently outstanding, remained available for repurchase under
Reliance’s stock repurchase program.  

Director Succession and Leadership Promotions
As previously announced, effective January 15, 2021, Reliance announced the
promotion of Karla Lewis to President and her appointment to the Company’s
Board of Directors, consistent with the Board’s executive leadership
succession plan. In concert with Mrs. Lewis’ promotion, Reliance announced
the promotion of Arthur Ajemyan to Vice President, Chief Financial Officer.
Reliance also announced that David H. Hannah will retire from the Board of
Directors and not stand for reelection at the Company’s 2021 Annual Meeting
of Stockholders.

Business Outlook 
While macroeconomic uncertainty stemming from the COVID-19 pandemic continues,
Reliance management remains optimistic about business conditions in the
majority of the end markets in which it operates. Reliance anticipates overall
demand will continue to improve in the first quarter of 2021. The Company
estimates that tons sold will be up 10% to 12% in the first quarter of 2021
compared to the fourth quarter of 2020, which includes the normal seasonal
increase in shipping volumes compared to the fourth quarter. The Company
expects the currently favorable metals pricing environment, primarily for
carbon and stainless steel products, to continue in the first quarter due
to improving demand and the significant mill price increases that took
effect in the fourth quarter of 2020 with some continuing into early 2021. As
such, management estimates its average selling price per ton sold for the
first quarter of 2021 will be up 12% to 14% compared to the fourth quarter of
2020. Given the strong demand and pricing fundamentals, the Company
anticipates maintaining an elevated gross profit margin level in the first
quarter of 2021. Based on these expectations, Reliance management currently
anticipates non-GAAP earnings per diluted share in the range of $3.40 to $3.50
for the first quarter of 2021.

Conference Call Details
A conference call and simultaneous webcast to discuss Reliance’s fourth
quarter and full year 2020 financial results and business outlook will be held
today, February 18, 2021 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: 13715195. 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 Thursday, March 4, 2021 by dialing (844)
512-2921 (U.S. and Canada) or (412) 317-6671 (International) and entering the
conference ID: 13715195. The webcast will remain posted on the Investors
section of Reliance’s website at investor.rsac.com for 90 days.

About Reliance Steel & Aluminum Co.
Founded in 1939 and headquartered in Los Angeles, California, 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 300 locations in 40 states and 13 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 increasing levels of value-added
processing. In 2020, Reliance’s average order size was $1,910, approximately
49% 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 www.rsac.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, end markets, business
strategies 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, impairment charges, taxes,
liquidity, 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” 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 us, as well as developments
beyond our control, including, but not limited to, the impact of COVID-19 and
changes in worldwide and U.S. economic conditions that materially impact our
customers and the demand for our products and services. The extent to which
the continuing COVID-19 pandemic may negatively impact our operations will
depend on future developments which are highly uncertain and cannot be
predicted, including the duration of the outbreak, new information which may
emerge concerning the severity or duration of the COVID-19 pandemic, the
actions taken to control the spread of COVID-19 or treat its impact, and
changes in worldwide and U.S. economic conditions. Further deteriorations in
economic conditions, as a result of COVID-19 or otherwise, could lead to a
further or prolonged decline in demand for our products and services and
negatively impact our business, and may also impact financial markets and
corporate credit markets which could adversely impact our access to financing,
or the terms of any financing. We cannot at this time predict the extent of
the impact of the COVID-19 pandemic and resulting economic impact, but it
could have a material adverse effect on our business, financial position,
results of operations and cash flows. Other factors which could cause actual
results to differ materially from our forward-looking statements include those
disclosed in reports Reliance has filed with the United States Securities and
Exchange Commission (the “SEC”). As a result, these statements 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 otherwise. 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, 2019, as updated in the Company’s Quarterly Report on
Form 10-Q for the quarter ended March 31, 2020, Form 10-Q for the quarter
ended June 30, 2020, Form 10-Q for the quarter ended September 30, 2020 and in
other documents Reliance files or furnishes with the SEC.

CONTACT:         
 (213) 576-2428
investor@rsac.com

or Addo Investor Relations
(310) 829-5400

(Tables to follow)

                                                                                                                                                                                                         
                                                                                                                                                                                                         
 Fourth Quarter 2020 Major Commodity Metrics                                                                                                                                                             
                                                                                                                                                                                                         
                  Tons Sold (tons in thousands; % change)                                                                                           Average Selling Price per Ton                        
                                                                                                                                                    Sold (% change)                                      
                  Q4 2020 Tons Sold          Q3 2020 Tons Sold          Sequential           Q4 2019 Tons Sold          Year-Over-Year Change       Sequential                 Year-Over-Year Change     
                                                                        Quarter                                                                     Quarter                                              
                                                                        Change                                                                      Change                                               
 Carbon steel                1,025.1                    1,040.2         (1.5    )%                      1,110.0         (7.6         )%             6.6      %                 0.2          %            
 Aluminum                    69.9                       70.5            (0.9    )%                      79.5            (12.1        )%             (0.9     )%                (9.8         )%           
 Stainless steel             71.3                       70.3            1.4     %                       71.5            (0.3         )%             1.6      %                 (5.9         )%           
 Alloy                       28.3                       28.3            —       %                       41.9            (32.5        )%             3.4      %                 1.6          %            
                                                                                                                                                                                                         
                  Sales ($'s in millions; % change)                                                                                                                                                      
                  Q4 2020 Sales              Q3 2020 Sales              Sequential           Q4 2019 Sales              Year-Over-Year Change                                                            
                                                                        Quarter                                                                                                                          
                                                                        Change                                                                                                                           
 Carbon steel     $          1,156.6         $          1,100.8         5.1     %            $          1,250.5         (7.5         )%                                                                  
 Aluminum         $          387.7           $          394.3           (1.7    )%           $          489.3           (20.8        )%                                                                  
 Stainless steel  $          352.5           $          341.8           3.1     %            $          375.6           (6.2         )%                                                                  
 Alloy            $          94.2            $          91.0            3.5     %            $          137.1           (31.3        )%                                                                  



                                                                                                                                                          
 Full Year 2020 Major Commodity Metrics                                                                                                                   
                                                                                                                                                          
                  Tons Sold (tons in thousands; % change)                                      Average                                                    
                                                                                               Selling Price                                              
                                                                                               per Ton Sold                                               
                                                                                               (% change)                                                 
                  2020                   2019                   Year-Over-Year                 Year-Over-Year Change                                      
                                                                Change                                                                                    
 Carbon steel            4,235.7                4,701.1         (9.9         )%                (11.0        )%                                            
 Aluminum                293.9                  341.4           (13.9        )%                (8.9         )%                                            
 Stainless steel         287.9                  306.1           (5.9         )%                (3.3         )%                                            
 Alloy                   131.5                  194.9           (32.5        )%                (0.7         )%                                            
                                                                                                                                                          
                  Sales ($'s in millions; % change)                                                                                                       
                  2020                   2019                   Year-Over-Year Change                                                                     
 Carbon steel     $      4,647.4         $      5,792.9         (19.8        )%                                                                           
 Aluminum         $      1,687.6         $      2,151.9         (21.6        )%                                                                           
 Stainless steel  $      1,435.6         $      1,578.0         (9.0         )%                                                                           
 Alloy            $      436.5           $      652.1           (33.1        )%                                                                           



                                                                                                                                                                                                 
 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                                             Twelve Months Ended                                      
                                                                         December 31,                                                   December 31,                                             
                                                                         2020                       2019                                2020                       2019*                         
 Net sales                                                               $        2,134.1           $        2,447.8                    $        8,811.9           $        10,973.8             
                                                                                                                                                                                                 
 Costs and expenses:                                                                                                                                                                             
 Cost of sales (exclusive of depreciation and amortization shown below)           1,430.5                    1,653.6                             6,036.8                    7,644.4              
 Warehouse, delivery, selling, general and administrative                         463.6                      513.2                               1,874.0                    2,095.4              
 Depreciation and amortization                                                    56.5                       56.1                                227.3                      219.3                
 Impairment of long-lived assets                                                  0.1                        —                                   108.0                      1.2                  
                                                                                  1,950.7                    2,222.9                             8,246.1                    9,960.3              
                                                                                                                                                                                                 
 Operating income                                                                 183.4                      224.9                               565.8                      1,013.5              
                                                                                                                                                                                                 
 Other (income) expense:                                                                                                                                                                         
 Interest expense                                                                 15.7                       16.6                                62.9                       85.0                 
 Other expense (income), net                                                      1.6                        (1.3     )                          24.7                       (0.8      )          
 Income before income taxes                                                       166.1                      209.6                               478.2                      929.3                
 Income tax provision                                                             35.6                       43.3                                105.8                      223.2                
 Net income                                                                       130.5                      166.3                               372.4                      706.1                
 Less: Net income attributable to noncontrolling interests                        0.9                        0.7                                 3.3                        4.6                  
 Net income attributable to Reliance                                     $        129.6             $        165.6                      $        369.1             $        701.5                
                                                                                                                                                                                                 
 Earnings per share attributable to Reliance stockholders:                                                                                                                                       
 Diluted                                                                 $        2.01              $        2.44                       $        5.66              $        10.34                
 Basic                                                                   $        2.04              $        2.48                       $        5.74              $        10.49                
                                                                                                                                                                                                 
 Shares used in computing earnings per share:                                                                                                                                                    
 Diluted                                                                          64,548                     67,818                              65,263                     67,855               
 Basic                                                                            63,583                     66,719                              64,328                     66,885               
                                                                                                                                                                                                 
 Cash dividends per share                                                $        0.625             $        0.55                       $        2.50              $        2.20                 
                                                                                                                                                                                                 
 (*)Amounts derived from audited financial statements.                                                                                                                                           



                                                                                                                                                                                                                      
   RELIANCE STEEL & ALUMINUM CO.                                                                                                                                                                                      
   UNAUDITED CONSOLIDATED BALANCE SHEETS                                                                                                                                                                              
   (in millions, except number of shares which are reflected in thousands and par value)                                                                                                                              
                                                                                                                                                                                                                      
                                                                                                                                                                                                                      
                                                                                                                       December 31,                                        December 31,                               
                                                                                                                       2020                                                2019*                                      
   ASSETS                                                                                                                                                                                                             
   Current assets:                                                                                                                                                                                                    
   Cash and cash equivalents                                                                                           $            683.5                                  $            174.3                         
   Accounts receivable, less allowance for credit losses of $19.0 at December 31, 2020 and $17.8 at December 31, 2019               926.3                                               1,067.8                       
   Inventories                                                                                                                      1,420.4                                             1,645.7                       
   Prepaid expenses and other current assets                                                                                        80.5                                                85.2                          
   Income taxes receivable                                                                                                          2.1                                                 37.2                          
   Total current assets                                                                                                             3,112.8                                             3,010.2                       
   Property, plant and equipment:                                                                                                                                                                                     
   Land                                                                                                                             260.1                                               239.8                         
   Buildings                                                                                                                        1,240.0                                             1,195.1                       
   Machinery and equipment                                                                                                          2,107.8                                             2,044.4                       
   Accumulated depreciation                                                                                                         (1,815.7     )                                      (1,684.1     )                
   Property, plant and equipment, net                                                                                               1,792.2                                             1,795.2                       
                                                                                                                                                                                                                      
   Operating lease right-of-use assets                                                                                              204.0                                               201.5                         
   Goodwill                                                                                                                         1,935.2                                             2,003.8                       
   Intangible assets, net                                                                                                           947.1                                               1,031.1                       
   Cash surrender value of life insurance policies, net                                                                             43.7                                                42.7                          
   Other assets                                                                                                                     71.8                                                46.6                          
   Total assets                                                                                                        $            8,106.8                                $            8,131.1                       
                                                                                                                                                                                                                      
   LIABILITIES AND EQUITY                                                                                                                                                                                             
                                                                                                                                                                                                                      
   Current liabilities:                                                                                                                                                                                               
   Accounts payable                                                                                                    $            259.3                                  $            275.0                         
   Accrued expenses                                                                                                                 88.9                                                67.4                          
   Accrued compensation and retirement costs                                                                                        165.8                                               172.1                         
   Accrued insurance costs                                                                                                          42.0                                                43.4                          
   Current maturities of long-term debt and short-term borrowings                                                                   6.0                                                 64.9                          
   Current maturities of operating lease liabilities                                                                                51.0                                                52.5                          
   Total current liabilities                                                                                                        613.0                                               675.3                         
   Long-term debt                                                                                                                   1,638.9                                             1,523.6                       
   Operating lease liabilities                                                                                                      154.1                                               149.5                         
   Long-term retirement costs                                                                                                       95.8                                                87.0                          
   Other long-term liabilities                                                                                                      26.7                                                12.3                          
   Deferred income taxes                                                                                                            455.6                                               469.3                         
   Commitments and contingencies                                                                                                                                                                                      
   Equity:                                                                                                                                                                                                            
   Preferred stock, $0.001 par value:                                                                                                                                                                                 
   Authorized shares — 5,000                                                                                                                                                                                          
   None issued or outstanding                                                                                                       —                                                   —                             
   Common stock and additional paid-in capital, $0.001 par value:                                                                                                                                                     
   Authorized shares — 200,000                                                                                                                                                                                        
   Issued and outstanding shares — 63,600 at December 31, 2020 and 66,854 at December 31, 2019                                      0.1                                                 122.2                         
   Retained earnings                                                                                                                5,193.2                                             5,189.5                       
   Accumulated other comprehensive loss                                                                                             (77.9        )                                      (105.1       )                
   Total Reliance stockholders’ equity                                                                                              5,115.4                                             5,206.6                       
   Noncontrolling interests                                                                                                         7.3                                                 7.5                           
   Total equity                                                                                                                     5,122.7                                             5,214.1                       
   Total liabilities and equity                                                                                        $            8,106.8                                $            8,131.1                       
                                                                                                                                                                                                                      
   * Amounts derived from audited financial statements.                                                                                                                                                               



                                                                                                                                      
 RELIANCE STEEL & ALUMINUM CO.                                                                                                        
 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                      
 (in millions)                                                                                                                        
                                                                                                                                      
                                                                                                                                      
                                                                                         Twelve Months Ended                          
                                                                                         December 31,                                 
                                                                                         2020                     2019*               
 Operating activities:                                                                                                                
 Net income                                                                              $    372.4               $    706.1          
 Adjustments to reconcile net income to net cash provided by operating activities:                                                    
 Depreciation and amortization expense                                                        227.3                    219.3          
 Impairment of long-lived assets                                                              108.0                    1.2            
 Provision for credit losses                                                                  5.8                      3.4            
 Deferred income tax (benefit) provision                                                      (13.7     )              32.5           
 Stock-based compensation expense                                                             42.2                     51.2           
 Postretirement benefit plan settlement expense                                               19.4                     —              
 Other                                                                                        11.3                     8.5            
 Changes in operating assets and liabilities (excluding effect of businesses acquired):                                               
 Accounts receivable                                                                          136.8                    178.1          
 Inventories                                                                                  227.5                    211.8          
 Prepaid expenses and other assets                                                            79.4                     31.9           
 Accounts payable and other liabilities                                                       (43.4     )              (142.5    )    
 Net cash provided by operating activities                                                    1,173.0                  1,301.5        
                                                                                                                                      
 Investing activities:                                                                                                                
 Purchases of property, plant and equipment                                                   (172.0    )              (242.2    )    
 Acquisitions, net of cash acquired                                                           (6.9      )              (177.8    )    
 Proceeds from sales of property, plant and equipment                                         6.7                      8.0            
 Other                                                                                        (16.2     )              (7.1      )    
 Net cash used in investing activities                                                        (188.4    )              (419.1    )    
                                                                                                                                      
 Financing activities:                                                                                                                
 Net short-term debt borrowings (repayments)                                                  0.7                      (0.3      )    
 Proceeds from long-term debt borrowings                                                      1,673.5                  971.0          
 Principal payments on long-term debt                                                         (1,615.4  )              (1,588.6  )    
 Debt issuance costs                                                                          (6.4      )              —              
 Dividends and dividend equivalents paid                                                      (164.1    )              (151.3    )    
 Share repurchases                                                                            (337.3    )              (50.0     )    
 Noncontrolling interest purchased                                                            (8.0      )              (0.4      )    
 Other                                                                                        (26.0     )              (21.0     )    
 Net cash used in financing activities                                                        (483.0    )              (840.6    )    
 Effect of exchange rate changes on cash and cash equivalents                                 7.6                      4.3            
 Increase in cash and cash equivalents                                                        509.2                    46.1           
 Cash and cash equivalents at beginning of year                                               174.3                    128.2          
 Cash and cash equivalents at end of year                                                $    683.5               $    174.3          
                                                                                                                                      
 Supplemental cash flow information:                                                                                                  
 Interest paid during the year                                                           $    52.6                $    83.0           
 Income taxes paid during the year, net                                                  $    87.5                $    214.3          
                                                                                                                                      
 * Amounts derived from audited financial statements.                                                                                 



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 RELIANCE STEEL & ALUMINUM CO.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 NON-GAAP EARNINGS AND GROSS PROFIT RECONCILIATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 (in millions, except per share amounts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                  Net Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Diluted EPS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                  Three Months Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Three Months Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                  December 31,                                                                                                                                                             September 30,                                                                                                                                                                                           December 31,                                                                                                                                                                                            December 31,                                                                                                                                                                                            September 30,                                                                                                                                                                                           December 31,                                                                                          
                                                                                                   2020                                                                                                                                                                      2020                                                                                                                                                                                                    2019                                                                                                                                                                                                    2020                                                                                                                                                                                                    2020                                                                                                                                                                                                    2019                                                
 Net income attributable to Reliance              $                                                129.6                                                                                                                   $                                                 97.6                                                                                                                                                  $                                                 165.6                                                                                                                                                 $                                                 2.01                                                                                                                                                  $                                                 1.51                                                                                                                                                  $                                                 2.44                                                
 Impairment and restructuring charges                                                              0.1                                                                                                                                                                       14.6                                                                                                                                                                                                    —                                                                                                                                                                                                       —                                                                                                                                                                                                       0.22                                                                                                                                                                                                    —                                                   
 Non-recurring settlement charges                                                                  —                                                                                                                                                                         14.6                                                                                                                                                                                                    —                                                                                                                                                                                                       —                                                                                                                                                                                                       0.23                                                                                                                                                                                                    —                                                   
 Debt restructuring charge                                                                         —                                                                                                                                                                         1.8                                                                                                                                                                                                     —                                                                                                                                                                                                       —                                                                                                                                                                                                       0.03                                                                                                                                                                                                    —                                                   
 Income tax benefit related to above items                                                         —                                                                                                                                                                         (7.7                                              )                                                                                                                                                     —                                                                                                                                                                                                       —                                                                                                                                                                                                       (0.12                                             )                                                                                                                                                     —                                                   
 Non-GAAP net income attributable to Reliance     $                                                129.7                                                                                                                   $                                                 120.9                                                                                                                                                 $                                                 165.6                                                                                                                                                 $                                                 2.01                                                                                                                                                  $                                                 1.87                                                                                                                                                  $                                                 2.44                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                           Net Income                                                                                                                                                                                                                                                                                                                                                                                                      Diluted EPS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                           Twelve Months Ended                                                                                                                                                                                                                                                                                                                                                                                             Twelve Months Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                           December 31,                                                                                                                                                                                            December 31,                                                                                                                                                                                            December 31,                                                                                                                                                                                            December 31,                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                             2020                                                                                                                                                                                                    2019                                                                                                                                                                                                    2020                                                                                                                                                                                                    2019                                                                                                                                                                                                                                                        
 Net income attributable to Reliance                                                                                                                                                                                       $                                                 369.1                                                                                                                                                 $                                                 701.5                                                                                                                                                 $                                                 5.66                                                                                                                                                  $                                                 10.34                                                                                                                                                                                                                                                       
 Impairment and restructuring charges                                                                                                                                                                                                                                        157.8                                                                                                                                                                                                   1.2                                                                                                                                                                                                     2.40                                                                                                                                                                                                    0.02                                                                                                                                                                                                                                                        
 Non-recurring settlement charges                                                                                                                                                                                                                                            19.4                                                                                                                                                                                                    —                                                                                                                                                                                                       0.30                                                                                                                                                                                                    —                                                                                                                                                                                                                                                           
 Debt restructuring charge                                                                                                                                                                                                                                                   1.8                                                                                                                                                                                                     —                                                                                                                                                                                                       0.03                                                                                                                                                                                                    —                                                                                                                                                                                                                                                           
 Gains related to sales of non-core assets                                                                                                                                                                                                                                   —                                                                                                                                                                                                       (0.9                                              )                                                                                                                                                     —                                                                                                                                                                                                       (0.02                                             )                                                                                                                                                                                                         
 Income tax benefit related to above items                                                                                                                                                                                                                                   (44.7                                             )                                                                                                                                                     (0.1                                              )                                                                                                                                                     (0.68                                             )                                                                                                                                                     —                                                                                                                                                                                                                                                           
 Non-GAAP net income attributable to Reliance                                                                                                                                                                              $                                                 503.4                                                                                                                                                 $                                                 701.7                                                                                                                                                 $                                                 7.71                                                                                                                                                  $                                                 10.34                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                  Three Months Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Twelve Months Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                  December 31,                                                                                                                                                             September 30,                                                                                                                                                                                           December 31,                                                                                                                                                                                            December 31,                                                                                                                                                                                            December 31,                                                                                                                                                                                                                                                                                                  
                                                                                                   2020                                                                                                                                                                      2020                                                                                                                                                                                                    2019                                                                                                                                                                                                    2020                                                                                                                                                                                                    2019                                                                                                                                                                                                                                                        
 Pretax income                                    $                                                166.1                                                                                                                   $                                                 127.0                                                                                                                                                 $                                                 209.6                                                                                                                                                 $                                                 478.2                                                                                                                                                 $                                                 929.3                                                                                                                                                                                                                                                       
 Impairment and restructuring charges                                                              0.1                                                                                                                                                                       14.6                                                                                                                                                                                                    —                                                                                                                                                                                                       157.8                                                                                                                                                                                                   1.2                                                                                                                                                                                                                                                         
 Non-recurring settlement charges                                                                  —                                                                                                                                                                         14.6                                                                                                                                                                                                    —                                                                                                                                                                                                       19.4                                                                                                                                                                                                    —                                                                                                                                                                                                                                                           
 Debt restructuring charge                                                                         —                                                                                                                                                                         1.8                                                                                                                                                                                                     —                                                                                                                                                                                                       1.8                                                                                                                                                                                                     —                                                                                                                                                                                                                                                           
 Gains related to sales of non-core assets                                                         —                                                                                                                                                                         —                                                                                                                                                                                                       —                                                                                                                                                                                                       —                                                                                                                                                                                                       (0.9                                              )                                                                                                                                                                                                         
 Non-GAAP pretax income                           $                                                166.2                                                                                                                   $                                                 158.0                                                                                                                                                 $                                                 209.6                                                                                                                                                 $                                                 657.2                                                                                                                                                 $                                                 929.6                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                  Three Months Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Twelve Months Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                  December 31,                                                                                                                                                             September 30,                                                                                                                                                                                           December 31,                                                                                                                                                                                            December 31,                                                                                                                                                                                            December 31,                                                                                                                                                                                                                                                                                                  
                                                                                                   2020                                                                                                                                                                      2020                                                                                                                                                                                                    2019                                                                                                                                                                                                    2020                                                                                                                                                                                                    2019                                                                                                                                                                                                                                                        
 Gross profit - LIFO                              $                                                703.6                                                                                                                   $                                                 676.1                                                                                                                                                 $                                                 794.2                                                                                                                                                 $                                                 2,775.1                                                                                                                                               $                                                 3,329.4                                                                                                                                                                                                                                                     
 Restructuring (credits) charges                                                                   (1.4                                             )                                                                                                                        (0.2                                              )                                                                                                                                                     —                                                                                                                                                                                                       38.2                                                                                                                                                                                                    —                                                                                                                                                                                                                                                           
 Non-GAAP gross profit                                                                             702.2                                                                                                                                                                     675.9                                                                                                                                                                                                   794.2                                                                                                                                                                                                   2,813.3                                                                                                                                                                                                 3,329.4                                                                                                                                                                                                                                                     
 LIFO expense (income)                                                                             15.5                                                                                                                                                                      (12.5                                             )                                                                                                                                                     (81.0                                             )                                                                                                                                                     (22.0                                             )                                                                                                                                                     (156.0                                            )                                                                                                                                                                                                         
 Non-GAAP gross profit - FIFO                     $                                                717.7                                                                                                                   $                                                 663.4                                                                                                                                                 $                                                 713.2                                                                                                                                                 $                                                 2,791.3                                                                                                                                               $                                                 3,173.4                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Gross profit margin - LIFO                                                                        33.0                                             %                                                                                                                        32.4                                              %                                                                                                                                                     32.4                                              %                                                                                                                                                     31.5                                              %                                                                                                                                                     30.3                                              %                                                                                                                                                                                                         
 Restructuring (credits) charges as a % of sales                                                   (0.1                                             )%                                                                                                                       —                                                                                                                                                                                                       —                                                                                                                                                                                                       0.4                                               %                                                                                                                                                     —                                                                                                                                                                                                                                                           
 Non-GAAP gross profit margin                                                                      32.9                                             %                                                                                                                        32.4                                              %                                                                                                                                                     32.4                                              %                                                                                                                                                     31.9                                              %                                                                                                                                                     30.3                                              %                                                                                                                                                                                                         
 LIFO expense (income) as a % of sales                                                             0.7                                              %                                                                                                                        (0.6                                              )%                                                                                                                                                    (3.3                                              )%                                                                                                                                                    (0.2                                              )%                                                                                                                                                    (1.4                                              )%                                                                                                                                                                                                        
 Non-GAAP gross profit margin - FIFO                                                               33.6                                             %                                                                                                                        31.8                                              %                                                                                                                                                     29.1                                              %                                                                                                                                                     31.7                                              %                                                                                                                                                     28.9                                              %                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 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 impairment and restructuring charges, mainly related to certain of the Company's energy-related businesses, closure of some of its locations and costs relating to COVID-19 downsizing, pension 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 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            



 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 Earnings and Gross Profit Reconciliation. 
 (3)Free cash flow is calculated as cash provided by operations reduced by capital expenditures. 
 (4 )Net debt-to-total capital is calculated as total debt (net of cash) divided by total Reliance stockholders’ equity plus total debt (net of cash). 

(https://www.globenewswire.com/NewsRoom/AttachmentNg/28a4bb48-6c1a-401e-b777-e02ff7bfcbfa)



GlobeNewswire, Inc. 2021
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.