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RS · Reliance

31 filings

10-K

RS 10-K Annual Reports

Reliance - 31 annual reports

Filing record · 2016–202610-K1110-Q338-K74

2025
Reliance Annual Report, Year Ended Dec 31, 2025
Reliance, Inc. (NYSE: RS) reported 2025 net sales of $14.29 billion, up 3.3% from 2024, driven by record tons sold, which rose 6.2%, while average selling price per ton fell 2.6%. Operating income declined 12.7% to $1.01 billion and diluted EPS fell to $13.98 from $15.56, mainly because LIFO inventory valuation swung from $144.4 million of income in 2024 to $113.7 million of expense in 2025, driven in part by higher aluminum costs. Management states FIFO gross profit margin rose 80 basis points to 29.5%, and excluding significant LIFO impacts, profitability improved. Cash flow from operations fell to $831.4 million from $1.43 billion, mainly due to higher working capital tied to volume and rising metals prices. Shareholder returns totaled $848.8 million, including $594.1 million of share repurchases and $254.7 million of dividends. Net debt-to-total capital rose to 14.4% from 10.2%, and total debt was $1.43 billion at year-end, with $763.5 million remaining under the repurchase authorization. The company flagged tariff volatility as a key risk, noting that Section 232 steel and aluminum tariffs were raised to 50% in June 2025, and that a February 20, 2026 Supreme Court ruling on IEEPA tariffs does not directly affect Section 232 tariffs. In February 2026, the Board raised the quarterly dividend 4.2% to $1.25 per share, the company's 66th consecutive year of dividends.
Feb 26, 2026
2024
Reliance Annual Report, Year Ended Dec 31, 2024
Reliance, Inc. (NYSE: RS), formerly Reliance Steel & Aluminum Co., reported net sales of $13.84 billion for 2024, down 6.6% from $14.81 billion in 2023, as lower metals prices offset a 4.0% increase in total tons sold. Operating income fell to $1.16 billion from $1.74 billion, and net income attributable to Reliance was $875.2 million, or $15.56 per diluted share, versus $22.64 in 2023. Gross profit margin was 29.7%, compared with 30.7% a year earlier, which management attributes to lower metals pricing partly mitigated by inventory management, small-order focus and value-added processing. Cash flow from operations was $1.43 billion, down from $1.67 billion, while the company returned $1.34 billion to stockholders, including a record $1.09 billion of share repurchases and $249.7 million of dividends. Capital expenditures were $430.6 million and the company spent $364.6 million on four 2024 acquisitions. Year-end cash was $318.1 million, total debt was about $1.15 billion, and $1.5 billion was available under the revolving credit facility. The Board raised the quarterly dividend 9.1% to $1.20 per share in February 2025. The filing describes a diversified metals service center network of 320 locations in 41 U.S. states and 10 foreign countries, with carbon steel at 53% of gross sales and aluminum at 16%. The auditor KPMG issued an unqualified opinion on both the financial statements and internal control over financial reporting. Risk factors center on metals price volatility, tariff policy under Section 232, cyclical demand and acquisition integration.
Feb 27, 2025
2023
Reliance Annual Report, Year Ended Dec 31, 2023
Reliance, Inc. (formerly Reliance Steel & Aluminum Co.; NYSE: RS) reported 2023 net sales of $14.81 billion, down 13.0% from $17.03 billion in 2022, as the average selling price per ton sold fell 16.4% while tons sold rose 3.7%. Diluted earnings per share were $22.64, compared with a record $29.92 in 2022. Operating income declined to $1.74 billion from $2.51 billion, and gross profit margin held steady at 30.7% versus 30.8%. Net income attributable to Reliance was $1.34 billion. The filing describes the company as the largest metals service center company in North America based on revenues, with operations in over 315 locations across 40 U.S. states and 12 foreign countries. Cash flow from operations was $1.67 billion, the second highest in the company's history, compared with $2.12 billion in 2022. The company spent $468.8 million on capital expenditures and returned $717.6 million to stockholders through $238.1 million of dividends and $479.5 million of share repurchases. Cash and cash equivalents were $1.08 billion at year-end, and the net debt-to-total capital ratio was 0.8%, down from 6.3%. The board raised the quarterly dividend 10.0% to $1.10 per share in February 2024. In early 2024 the company completed the acquisition of Cooksey Iron & Metal Company and agreed to acquire American Alloy Steel, Inc., subject to regulatory approval. Combined unaudited revenues for the two businesses were approximately $400 million for the twelve months ended December 31, 2023.
Feb 29, 2024
2022
Reliance Annual Report, Year Ended Dec 31, 2022
Reliance Steel & Aluminum Co. reported record financial performance for 2022, with net sales of $17.03 billion, up from $14.09 billion in 2021, and diluted earnings per share of $29.92, compared with $21.97 in 2021. Gross profit was $5.25 billion, with a gross profit margin of 30.8%, versus 31.9% in 2021. Operating income rose to $2.51 billion from $1.95 billion, and net income attributable to Reliance was $1.84 billion. Management attributes the results to record average selling prices per ton sold of $3,073, up 18.5%, while tons sold rose 1.8% to 5,570.8 thousand. Gross profit margin declined from the 2021 record as metals pricing peaked in the second quarter of 2022 and fell over the rest of the year. Cash generation and shareholder returns were also strong. Net cash provided by operations was $2.12 billion, compared with $799.4 million in 2021, aided by reduced working capital investment. The company returned $847.4 million to stockholders through $217.1 million of dividends and $630.3 million of share repurchases. The quarterly dividend was raised 14.3% to $1.00 per share in February 2023. Capital expenditures were $341.8 million in 2022, and the 2023 capital expenditure budget is $500 million. Net debt-to-total capital fell to 6.3% from 18.1%, and the company had $1.2 billion in cash and cash equivalents at year end. The filing also highlights risks tied to metals price volatility, inflation, the Russia-Ukraine conflict, tariffs and foreign imports, and dependence on a limited number of suppliers. The company does not use derivatives to hedge metal prices. Total debt was $1.66 billion at December 31, 2022, reduced to $1.16 billion in January 2023 after the redemption of $500.0 million of senior notes. The company had $1.5 billion available under its revolving credit facility.
Feb 28, 2023
2021
Reliance Annual Report, Year Ended Dec 31, 2021
Reliance Steel & Aluminum Co. reported record 2021 results across nearly every key metric. Net sales rose to $14.09 billion, up $5.28 billion, or 59.9%, from $8.81 billion in 2020. Net income attributable to Reliance was a record $1.41 billion, and diluted earnings per share were a record $21.97. The gross profit margin was a record 31.9%, despite a LIFO charge of $704.8 million. Average selling price per ton sold rose 54.3% to $2,594, and tons sold rose 4.6%. Operating cash flow fell to $799.4 million from $1.17 billion in 2020, mainly because of over $950.0 million in additional working capital requirements, chiefly accounts receivable and inventory. Capital deployment was substantial. The company acquired four businesses for $439.3 million, invested $236.6 million in capital expenditures, and returned $500.5 million to stockholders through $177.0 million of dividends and $323.5 million of share repurchases. In February 2022 the Board raised the quarterly dividend 27.3% to $0.8750 per share. The 2022 capital expenditure budget is a record $350 million. Total debt was $1.66 billion at year-end, with no borrowings outstanding under the $1.5 billion revolving credit facility, and cash and cash equivalents were $300.5 million. The filing describes a fragmented metals service center industry, with the company's U.S. revenues representing about 5.8% of the estimated U.S. market. The company says its results are supported by value-added processing, which was performed on 50% of orders in 2021 compared with a historical range of about 40% to 45%. COVID-19 continued to affect 2021 results through labor shortages, raw material constraints and supply chain disruptions.
Feb 24, 2022
2020
Reliance Annual Report, Year Ended Dec 31, 2020
Reliance Steel & Aluminum Co. reported a challenging 2020 driven by COVID-19, with net sales of $8.81 billion, down 19.7% from $10.97 billion in 2019, as tons sold declined 10.8% and average selling price per ton fell 9.6%. Despite lower volumes, the company achieved a record annual gross profit margin of 31.5%, up from 30.3% in 2019. Net income attributable to Reliance was $369.1 million, or $5.66 per diluted share, compared with $701.5 million in 2019. Results were weighed down by $157.8 million of impairment and restructuring charges, mainly a $137.5 million charge in the first quarter tied to energy-related businesses, and operating income fell to $565.8 million from $1.01 billion. Cash flow from operations remained strong at $1.17 billion, down 9.9% from a record $1.30 billion in 2019. The company strengthened its liquidity by issuing $900.0 million of senior unsecured notes in August 2020 and amending its $1.5 billion credit agreement; it had no outstanding borrowings under the credit agreement at year-end and $683.5 million of cash. Total debt was $1.66 billion, and the net debt-to-total capital ratio fell to 15.8% from 21.4%. The company returned $164.1 million in dividends and repurchased $337.3 million of shares in 2020, and in February 2021 raised its quarterly dividend 10.0% to $0.6875 per share. Looking ahead, the 2021 capital expenditure budget is $245 million, with actual 2021 spending expected to be higher due to projects carried forward from 2020. Management stated that the COVID-19 pandemic's ultimate duration and severity remain uncertain, and that it cannot estimate the full impact on its business.
Feb 25, 2021
2019
Reliance Annual Report, Year Ended Dec 31, 2019
Reliance Steel & Aluminum Co. reported record financial results for 2019 despite softening demand and weaker metals pricing. Net sales were $10.97 billion, down $560.7 million, or 4.9%, from $11.53 billion in 2018. Gross profit rose 1.5% to $3.33 billion, and the gross profit margin reached a record 30.3% versus 28.4% in 2018. Net income attributable to Reliance was a record $701.5 million, up 10.7%, and diluted earnings per share were a record $10.34, up 18.2%. Management attributed the margin gains to investments in processing equipment, which lifted the share of orders with value-added processing to 51% from 49% in 2018. Cash flow and balance sheet strengthened significantly. Cash provided by operations was a record $1.30 billion, up 95.8%, driven by profitability and lower working capital. The company repaid roughly $620 million of debt, reducing the net debt-to-total capital ratio to 21.4% from 30.8%. Total debt fell to $1.60 billion, and $1.09 billion was available on the $1.5 billion revolving credit facility. Capital expenditures were a record $242.2 million, and the 2020 capital expenditure budget is approximately $250 million. Shareholder returns continued. The Board increased the quarterly dividend 13.6% to $0.625 per share in February 2020, the 27th increase since the 1994 IPO. In 2019 the company repurchased 592,934 shares for $50.0 million and paid $151.3 million in dividends. The 10-K also notes the acquisition of Fry Steel Company on December 31, 2019, and an audit report from KPMG LLP with an unqualified opinion on the financial statements and internal control over financial reporting.
Feb 27, 2020
2018
Reliance Annual Report, Year Ended Dec 31, 2018
Reliance Steel & Aluminum Co. reported record 2018 results, with net sales of $11.53 billion, up $1.81 billion or 18.7% from 2017, and net income attributable to Reliance of $633.7 million. Management attributed the growth mainly to higher metals pricing, including the favorable impact of Section 232 tariffs, along with healthy demand and increased value-added processing. Gross profit reached a record $3.28 billion, with a gross profit margin of 28.4%, near the high end of the company's sustainable 27% to 29% range. Diluted earnings per share were $8.75, compared with $8.34 in 2017. Cash flow from operations rose to $664.6 million from $399.0 million, despite significantly higher working capital requirements. Capital expenditures were a record $239.9 million, and the company returned capital through $145.3 million of dividends and $484.9 million of share repurchases. Net debt-to-total capital rose to 30.8% from 27.2%, and total debt was $2.21 billion. The company stated it was in compliance with all financial covenants, with an interest coverage ratio of 11.5 times against a 3.0 times minimum. The filing also highlights risks, including metal price volatility, potential reversal of Section 232 tariff benefits, cyclical end markets, growing reliance on acquisitions, and $1.46 billion of variable-rate debt. In 2018 the company completed three acquisitions (DuBose, KMS and All Metals) and bought the remaining 40% noncontrolling interest in Acero Prime, and in February 2019 it raised its quarterly dividend 10.0% to $0.55 per share.
Feb 27, 2019
2017
Reliance Annual Report, Year Ended Dec 31, 2017
Reliance Steel & Aluminum Co. reported record gross profit in 2017, with net sales of $9.72 billion, up from $8.61 billion in 2016, and net income attributable to Reliance of $613.4 million, compared with $304.3 million in 2016. Diluted earnings per share were $8.34, which the company says would have been $5.52 excluding a provisional $207.3 million net tax benefit from the Tax Cuts and Jobs Act of 2017. Gross profit reached $2.79 billion, with a gross profit margin of 28.7% against 30.1% in 2016, and operating income rose to $662.4 million from $517.8 million. Management attributed the higher sales to both higher tons sold and higher metals prices, with same-store average selling price per ton up 9.1%. Cash flow from operations fell to $399.0 million from $626.5 million, mainly due to higher working capital needs from higher metal prices and stronger demand. Capital expenditures were $161.6 million in 2017, and the company plans a 2018 capital expenditure budget of approximately $225 million, its largest ever. The net debt-to-total capital ratio improved to 27.2% from 30.3%, and the company had $908.7 million available under its $1.5 billion revolving credit facility at year-end. The Board raised the quarterly dividend 11.1% to $0.50 per share in February 2018, and the company repurchased $25.0 million of shares in 2017. The company operates more than 300 metals service center locations in 40 states and 13 other countries and describes itself as the largest metals service center company in North America. Carbon steel accounted for 52% of 2017 sales, and about 48% of orders included value-added processing. The filing identifies risks including metal price volatility, cyclical end markets, supplier concentration, and $1.91 billion of outstanding indebtedness, of which $1.16 billion bears variable interest rates.
Feb 28, 2018
2016
Reliance Annual Report, Year Ended Dec 31, 2016
Reliance Steel & Aluminum Co. reported 2016 net sales of $8.61 billion, down 7.9% from $9.35 billion in 2015, with net income attributable to Reliance of $304.3 million, or $4.16 diluted earnings per share, flat with 2015. Pricing was the main drag: same-store average selling price per ton fell 7.3%, while same-store tons sold decreased 2.7%. Despite lower revenue, gross profit margin rose to 30.1%, the highest in the company's history, and operating income was $512.6 million compared with $546.6 million in 2015. Impairment and restructuring charges totaled $69.1 million, mainly tied to energy-related businesses affected by low oil prices. Cash flow from operations was $626.5 million, which funded $154.9 million of capital expenditures, $348.7 million for acquisitions, and $120.4 million of dividends. In September 2016 the company entered a $2.1 billion unsecured five-year credit agreement, including a $1.5 billion revolver and a $600.0 million term loan. Total debt was $1.95 billion at year-end, the net debt-to-total capital ratio improved to 30.3% from 31.8%, and $897.4 million was available on the revolver. In February 2017 the board raised the quarterly dividend 5.9% to $0.45 per share, its 24th increase since the 1994 IPO.
Feb 24, 2017
2015
Reliance Annual Report, Year Ended Dec 31, 2015
Reliance Steel & Aluminum Co. reported net sales of $9.35 billion for 2015, down 10.5% from $10.45 billion in 2014, and net income attributable to Reliance of $311.5 million, down from $371.5 million. The company describes itself as the largest metals service center company in North America, with more than 300 locations in 39 states and 12 other countries, more than 100,000 products, and more than 125,000 customers. Management attributes the sales decline mainly to lower metals pricing caused by high levels of imported metal, a strong U.S. dollar, and weak global economies, along with a significant decline in volume to the energy (oil and gas) market. Average same-store selling price per ton fell 10.3%, while same-store tons sold fell 3.2%, which management says outperformed the industry decline of 7.5% reported by MSCI. Cash generation was a clear bright spot. Net cash provided by operating activities was a record $1.03 billion, driven largely by a $433.1 million reduction in FIFO inventory. The company used this cash to pay down $376.6 million of net debt, repurchase $355.5 million of stock, and pay $120.1 million in dividends. Total outstanding debt fell to $1.94 billion from $2.32 billion, and the net debt-to-total capital ratio improved to 31.8% from 34.9%. The company recorded a $53.3 million impairment of long-lived assets, mainly tied to energy-related businesses, and management said the energy downturn would continue to weigh on near-term earnings. The company acquired Tubular Steel, Inc. (TSI) effective January 1, 2016, which had 2014 net sales of approximately $200.0 million. Management expects 2016 capital expenditures of approximately $180 million, and it highlighted that gross profit margin increased in each successive quarter of 2015 despite falling metal prices. Investors should weigh the strong cash flow and balance sheet improvement against continued pricing pressure from imports and the uncertain duration of the energy downturn.
Feb 26, 2016
2014
Reliance Annual Report, Year Ended Dec 31, 2014
Reliance Steel & Aluminum Co. reported record 2014 net sales of $10.45 billion, up 13.3% from $9.22 billion in 2013, with net income attributable to Reliance of $371.5 million, up from $321.6 million. Same-store tons sold rose 6.1%, outpacing the 4.2% industry increase reported by the Metals Service Center Institute. Management said gross profit margin declined in 2014 amid competitive pricing from high import levels, but stayed within its historical 25% to 27% range. Operating income rose to $617.4 million from $551.9 million, aided by three 2014 acquisitions with a combined transaction value of $248.1 million. Cash flow from operations fell to $356.0 million from $633.3 million, mainly due to higher working capital needs. Total debt was $2.32 billion at year-end, and the net debt-to-total-capital ratio was 35.0%, up from 34.3%. Liquidity included $765.8 million available under the $1.5 billion revolving credit facility, and the company was in compliance with all debt covenants. The company expects carbon steel prices to keep declining in the first quarter of 2015, which will reduce margins and earnings in that period. It also flagged a downturn in the energy market, which it estimates at about 8% to 10% of sales. Shareholder returns were a focus. The Board raised the quarterly dividend 14% to $0.40 per share in February 2015, and cash dividends paid per share rose to $1.40 in 2014. The company repurchased about $50.0 million of stock in October 2014 and extended its repurchase plan to December 31, 2017.
Feb 26, 2015
2013
Reliance Annual Report, Year Ended Dec 31, 2013
Reliance Steel & Aluminum Co. reported 2013 net sales of $9.22 billion, up 9.3% from $8.44 billion in 2012, driven mainly by the April 2013 acquisition of Metals USA, which contributed $1.24 billion of net sales. Tons sold rose 21.4%, but average selling price per ton fell 10.0% to $1,712, as metal pricing declined. Same-store net sales fell 6.6%, and same-store tons rose only 0.9%. Gross profit margin held at 26.0%, within the company's historical 25% to 27% range. Operating income declined 16.3% to $551.9 million, and net income attributable to Reliance fell 20.3% to $321.6 million, or $4.14 diluted earnings per share. The balance sheet expanded materially. Total assets rose to $7.34 billion from $5.86 billion, and aggregate indebtedness reached $2.11 billion, up from $1.21 billion at year-end 2012. Net debt-to-capital was 34.3%, down from 39.4% immediately after the Metals USA funding. Operating cash flow was $633.3 million, and capital expenditures were $168.0 million. The company was in compliance with all debt covenants, with an interest coverage ratio of about 7.3 times against a 3.0 times minimum. Shareholder returns were a focus. Cash dividends per share rose to $1.26 in 2013 from $0.80 in 2012, and the board raised the quarterly dividend to $0.35 in February 2014. The company did not repurchase shares in 2013, and it disclosed a pending antitrust lawsuit filed by former employees, which management believes is without merit.
Feb 27, 2014
2012
Reliance Annual Report, Year Ended Dec 31, 2012
Reliance Steel & Aluminum Co. reported 2012 net sales of $8.44 billion, up from $8.13 billion in 2011, and net income attributable to Reliance of $403.5 million, compared with $343.8 million in 2011. Diluted earnings per share were $5.33, versus $4.58 in 2011. Gross profit margin rose to 26.1% from 24.4%, and operating income reached $659.2 million. Same-store tons shipped increased 3.4%, while same-store average selling prices declined 4.2% as mill prices fell through most of the year. Management said demand weakened in the fourth quarter, with same-store volumes down 5.1% from the prior-year period, partly due to customers reducing purchases ahead of the "fiscal cliff." The company ended 2012 with total outstanding debt of $1.21 billion, down from $1.33 billion, and a net debt-to-capital ratio of 23.8%, down from 28.4%. Capital expenditures were a record $214.0 million, and the company completed six acquisitions in 2012. The board raised the quarterly dividend to $0.30 per share in February 2013, and 2012 dividend payments represented 15% of earnings. The company was in compliance with all debt covenants at year end. A pending acquisition of Metals USA Holdings Corp. for $20.65 per share in cash, a total enterprise value of approximately $1.2 billion, is expected to close in the second quarter of 2013. Funding is expected through revolving credit facility borrowings and additional bank and debt capital markets funding. The filing also notes that a lawsuit has been filed in connection with the transaction, which management expects will be resolved without material adverse effect.
Feb 27, 2013
2011
Reliance Annual Report, Year Ended Dec 31, 2011
Reliance Steel & Aluminum Co. reported 2011 net sales of $8.13 billion, up 28.9% from $6.31 billion in 2010, and net income attributable to Reliance of $343.8 million, up 76.9% from $194.4 million. Diluted EPS was $4.58 versus $2.61. Management said the company is the largest metals service center in North America, operates more than 220 locations, and offers over 100,000 metal products to more than 125,000 customers. Same-store tons sold rose 9.8% in 2011, while gross profit margin slipped to 24.4% from 25.1% due to pricing volatility and competition. Growth investments were significant in 2011. The company acquired Continental Alloys & Services (effective August 1, 2011) for approximately $313.3 million net of cash acquired and debt assumed, and capital expenditures reached a record $156.4 million. Total debt rose to $1.33 billion from $941.3 million, with $645.0 million outstanding on a $1.5 billion revolving credit facility. The net debt-to-total capital ratio increased to 28.4% from 23.5%. Management reported compliance with all debt covenants, with an interest coverage ratio of about 9.5 times against a 3.0 times minimum. Looking ahead, management planned a 2012 capital expenditure budget of approximately $250 million and said it expects improved results in 2012 versus 2011, though it expects results to remain below its view of true earnings power until demand, especially in non-residential construction, improves materially. The Board raised the quarterly dividend 25% to $0.15 per share in February 2012. The company also acquired McKey Perforating Co., Inc., effective February 1, 2012, with approximately $18 million in annual sales, funded by its credit facility.
Feb 24, 2012
2010
Reliance Annual Report, Year Ended Dec 31, 2010
Reliance Steel & Aluminum Co. reported net sales of $6.31 billion for 2010, up from $5.32 billion in 2009, and net income attributable to Reliance of $194.4 million, compared with $148.2 million in 2009. Diluted EPS was $2.61 versus $2.01. Gross profit margin was 25.1% in 2010 versus 26.3% in 2009, while operating income rose to $360.7 million from $250.4 million. The company describes itself as the largest metals service center company in North America, with more than 200 locations and over 100,000 metal products sold to more than 125,000 customers. The filing shows a recovering but still-soft demand environment. Management says non-residential construction, about one-third of sales, remained at low levels, while carbon steel prices rose sharply late in 2010 and early 2011 mainly on raw material costs rather than end demand. The company warns that prices could fall if mills add capacity without matching demand. LIFO accounting produced a $34.8 million expense in 2010 versus a $305.0 million credit in 2009. Balance sheet and cash flow data show Reliance shareholders' equity of $2.82 billion, total debt of $941.3 million, and a net debt-to-total capital ratio of 23.5%. Operating cash flow fell to $214.1 million from $943.0 million, largely due to working capital growth. Management expects a 2011 capital expenditure budget of about $200 million and declared a quarterly dividend increase to $0.12 per share from $0.10.
Feb 25, 2011
2009
Reliance Annual Report, Year Ended Dec 31, 2009
Reliance Steel & Aluminum Co. described itself as the largest metals service center company in North America, operating more than 200 locations in 38 states and several other countries, distributing more than 100,000 metal products to more than 125,000 customers. The company said 2009 was one of the worst years in its industry, with net sales of $5.32 billion, down from $8.72 billion in 2008, and net income attributable to Reliance of $148.2 million, down from $482.8 million. Management focused on liquidity during 2009: cash flow from operations was $943.0 million, debt was reduced by $831.2 million, and long-term debt ended the year at $939.6 million, with a net debt-to-total capital ratio of 25.6% versus 41.4% a year earlier. Acquisitions were suspended in 2009, though management expects acquisition opportunities to emerge in the second half of 2010. The filing describes demand as still at low levels at year-end, with pricing stabilizing somewhat since mid-2009. Gross profit margin was 26.3% in 2009 versus 24.8% in 2008, aided by a LIFO credit of $305.0 million. Operating expenses fell 14.9% in warehouse, delivery, selling, general and administrative costs, while the workforce was reduced by about 2,500 employees (22%) since September 2008. The company reported a 2010 capital expenditure budget of approximately $140 million and stated that its credit facility amendment restricts acquisition cash use and dividends through June 30, 2010. For investors, the key items are the sharp earnings decline, the substantial deleveraging, and management's expectation that demand will recover slowly through 2010, with gross profit margins expected in a range of 25% to 27%. Risks highlighted include metal price volatility, customer credit exposure, covenant compliance, and the refinancing of $147.1 million in debt maturities before the November 2012 credit facility expiry.
Feb 26, 2010
2008
Reliance Annual Report, Year Ended Dec 31, 2008
Reliance Steel & Aluminum Co. reported record 2008 results: net sales of $8.72 billion and net income of $482.8 million, up from $7.26 billion and $408.0 million in 2007. Management described 2008 as a year of two halves. The first nine months were very strong, with rapid carbon steel price increases that expanded gross margins, but the fourth quarter brought a sharp and rapid decline in demand and pricing. The company said it remained profitable in the fourth quarter, while many service centers fell into operating losses. Gross profit margin fell to 24.8% from 25.3%, and the company cited LIFO expense of $109.0 million, up from $43.8 million in 2007. The balance sheet grew mainly through the $1.1 billion acquisition of PNA Group Holding Corporation on August 1, 2008, which was funded with a new $500 million term loan and borrowings under the $1.1 billion credit facility. Total debt was $1.77 billion at year-end. Operating cash flow was a record $664.7 million, which management used to repay $505 million of debt after the PNA closing. Net debt-to-total capital fell to 41.4% at December 31, 2008, from 48.1% at September 30, 2008. Management said it had sufficient liquidity for 2009 and 2010 obligations without accessing credit markets, and it suspended acquisitions and cut the 2009 capital expenditure budget to $80 million from $210 million in 2008. Investors should weigh the strong 2008 earnings and cash generation against the outlook. Management said demand had not yet improved, carbon steel mills were operating below 50% of capacity, and metal pricing was uncertain. Competitive pressure on margins was expected to continue. The quarterly dividend was raised to $.10 per share in February 2008, and the stock fell from an all-time high of $78 per share in July 2008 to $13 per share in November 2008.
Feb 27, 2009
2007-A
Reliance Annual Report (Amendment), Year Ended Dec 31, 2007
Reliance Steel & Aluminum Co. filed this Amendment No. 1 on Form 10-K/A for the fiscal year ended December 31, 2007. The amendment does not restate financial results; it removes a reference to an unnamed third-party valuation specialist in Note 3 (Acquisitions) after an SEC comment letter, and updates Items 8, 9A, 9A(T) and 15. The company states that it retains ultimate responsibility for the valuation work. The financials show net sales of $7,255,679 thousand in 2007, up from $5,742,608 thousand in 2006, with net income of $407,955 thousand ($5.36 diluted EPS from continuing operations) versus $354,507 thousand in 2006. Total assets were $3,983,477 thousand at year-end 2007, and shareholders' equity was $2,106,249 thousand. Cash flow from operations was $638,964 thousand, compared with $190,964 thousand in 2006. Acquisitions in 2007 included Metalweb, Clayton Metals, Encore Group, Crest Steel and Industrial Metals and Surplus, with total purchase price of about $281,443 thousand for the group. For investors, the key points are the strong earnings growth, the increase in goodwill and intangibles from acquisitions, the $1,080,580 thousand of total debt, and the 1,673,467 shares repurchased in 2007 at an average cost of $49.10 per share. The quarterly dividend was raised to $.10 per share in February 2008.
Aug 6, 2008
2007
Reliance Annual Report, Year Ended Dec 31, 2007
Reliance Steel & Aluminum Co. reported record 2007 results, with net sales of $7.26 billion (up 26.3% from 2006) and net income of $408.0 million, compared with $354.5 million in 2006. Growth came from acquisitions, including Earle M. Jorgensen Company and Yarde Metals in 2006 and Encore Group, Crest Steel, Industrial Metals and Surplus, Clayton Metals and Metalweb in 2007, along with higher tons sold (up 17.3%) and a higher average selling price per ton (up 8.5%). Gross profit margin declined to 25.3% from 26.3%, mainly due to competitive pressures and a sharp decline in stainless steel prices in the second half of 2007. Operating cash flow was a record $639.0 million, funding $124.1 million of capital expenditures, $270.0 million of acquisitions and $82.2 million of stock repurchases. Balance sheet and capital allocation were managed conservatively. Long-term debt was $1.01 billion, with a net debt-to-total capital ratio of 32.4%, down from 37.6% at year-end 2006. The company had $185 million drawn on its $1.1 billion credit facility at year-end. Early 2008 actions included repurchasing 2.4 million shares at an average $46.97 and raising the quarterly dividend 25% to $.10 per share. The company also planned a record 2008 capital expenditure budget of $210 million. Management expects demand may decline somewhat in 2008, particularly in non-residential construction, while pricing is supported by carbon steel increases announced for early 2008. The filing also flags risks including metal price volatility, cyclicality, indebtedness of about $1.1 billion, acquisition integration, and a pending IRS examination of 2002 to 2004 returns involving LIFO and inventory costing, which the company is contesting.
Feb 29, 2008
2006
Reliance Annual Report, Year Ended Dec 31, 2006
Reliance Steel & Aluminum Co. reported record 2006 results, with net sales of $5.74 billion, up from $3.37 billion in 2005, and net income of $354.5 million, up from $205.4 million. The growth was driven mainly by the 2006 acquisitions of Earle M. Jorgensen Company (EMJ) and Yarde Metals, which the filing says added $1.6 billion to consolidated sales. Operating profit rose to $634.2 million from $367.6 million, and diluted EPS from continuing operations was $4.82, compared with $3.10 in 2005. The filing states that same-store sales, excluding 2005 and 2006 acquisitions, rose 15.9% to $3.75 billion. The balance sheet expanded substantially. Total assets were $3.61 billion, goodwill was $784.9 million, and total debt was about $1.1 billion, up from $356.9 million at year-end 2005. The company recapitalized in late 2006 by issuing $600 million of senior unsecured notes and replacing its credit facility with a $1.1 billion syndicated facility. Operating cash flow fell to $191.0 million from $272.2 million, mainly because of higher working capital needs. The filing also reports that the net debt-to-total capital ratio rose to 37.6% from 23.8%. The filing describes several early-2007 developments. Reliance acquired Encore Group, Crest Steel, and Industrial Metals and Surplus, and the Board raised the quarterly dividend from $.06 to $.08 per share. Management cites record stainless steel prices driven by nickel shortages and says it expects stainless prices to decline, though the timing is uncertain. The filing also highlights risks, including rising interest rates on variable-rate debt, metal price volatility, and cyclical end markets.
Mar 1, 2007
2005
Reliance Annual Report, Year Ended Dec 31, 2005
Reliance Steel & Aluminum Co. reported record 2005 results, with net sales of $3.37 billion (up from $2.94 billion in 2004) and net income of $205.4 million (up from $169.7 million). Diluted earnings per share from continuing operations were $6.21, compared with $5.19 in 2004. Operating profit rose to $367.6 million, and cash flow from operations reached $272.2 million, which management described as its highest ever. Gross profit margin declined to 27.3% from 28.3%, as carbon steel pricing pressure in the first eight months of 2005 offset strong aerospace pricing. The Chapel Steel acquisition, completed July 1, 2005 for about $94.2 million in cash plus $16.8 million of assumed debt, contributed to sales growth. The most significant pending event is the agreement to acquire Earle M. Jorgensen Company (EMJ) for approximately $13.00 per share in cash and stock, valued at about $934 million including assumed net debt. The cash portion of roughly $385 million will be financed under the $600 million syndicated credit facility, which is to increase to $700 million at closing, and the company expects to assume about $286 million of EMJ's long-term debt. Management expected the EMJ closing in early April 2006, subject to EMJ stockholder approval. At year-end, total debt was $350.8 million, the net debt-to-total capital ratio was 23.8% (down from 33.6%), and shareholders' equity rose to $1.03 billion. The company also completed the purchase of the remaining 49.5% of American Steel, L.L.C. for $12 million in January 2006 and acquired Everest Metals in China on March 1, 2006.
Mar 15, 2006
2004
Reliance Annual Report, Year Ended Dec 31, 2004
Reliance Steel & Aluminum Co. (now Reliance, Inc.) reported record 2004 results as a metals service center. Net sales rose 56.3% to $2.94 billion from $1.88 billion, and net income reached $169.7 million, or $5.19 per diluted share, compared with $34.0 million in 2003. The filing attributes the gains mainly to a sharp rise in selling prices: the average selling price per ton increased 47.6%, while tons sold rose 4.3%. Gross profit was $832.2 million, or 28.3% of sales, and operating profit was $306.9 million, a 10.4% margin. Results were helped by a 2004 LIFO expense of $110.8 million, which reduced gross profit. The balance sheet strengthened over the year. Long-term debt fell to $380.9 million from $469.3 million, and the net debt-to-capital ratio improved to 33.6% from 43.1%. The debt-to-EBITDA ratio, as defined by the syndicated credit facility, dropped to 1.3 from 3.6. Operations generated $121.8 million of cash. Management said the security interest granted to lenders in 2003 is expected to be released in the first quarter of 2005. The quarterly dividend was raised to $.09 per share in February 2005, from $.07. Management stated that 2005 should be strong compared with all years except 2004, but it gave no assurance of this. The company warned that a decline in demand or pricing, or a significant increase in domestic metals availability, could hurt results. It did not complete any acquisitions in 2004, and its 2005 capital expenditure budget is $57 million.
Mar 15, 2005
2003-A
Reliance Annual Report (Amendment), Year Ended Dec 31, 2003
Reliance Steel & Aluminum Co. reported net sales of $1.88 billion and net income of $34.0 million for fiscal 2003, up from $1.75 billion in sales and $30.2 million of net income in 2002. The company describes itself as one of the five largest metals service centers in the United States, operating 106 processing and distribution facilities in 30 states, Belgium, France and South Korea. Management characterizes 2003 as a year of low customer demand and competitive pricing pressure in the first half, followed by improved demand and pricing beginning in September 2003 that continued through February 2004. Diluted earnings per share from continuing operations were $1.07, compared with $0.95 in 2002. The largest event of the year was the July 1, 2003 acquisition of Precision Strip, Inc. for $220 million in cash plus the assumption of approximately $26 million of debt. The acquisition was funded with $113.0 million drawn on the syndicated credit facility and $135.0 million of new senior secured notes. Long-term debt rose to $469.3 million at December 31, 2003 from $344.1 million a year earlier, and the company states that its net debt-to-total capital ratio was 43.1% compared with 35.4% at December 31, 2002. Management says strong 2003 cash flow allowed faster-than-expected debt reduction, and it does not expect further acquisitions until leverage is reduced, which it expects by the end of 2004. The company also notes risks for 2004, including the potential for rising metal costs that it may not be able to pass through to customers, tight supply of many products, and the sensitivity of results to demand in cyclical end markets such as semiconductors and aerospace. Management expects demand and prices to remain strong through the first quarter of 2004 and expects prices to continue rising in the first half. Goodwill stood at $325.3 million, about 23.8% of total assets, and the company reported no goodwill impairment in its annual testing.
May 3, 2004
2003
Reliance Annual Report, Year Ended Dec 31, 2003
Reliance Steel & Aluminum Co. (filed under this name; now Reliance, Inc.) reported net sales of $1.88 billion and net income of $34.0 million for fiscal 2003, compared with $1.75 billion and $30.2 million in 2002. Diluted earnings per share from continuing operations were $1.07, versus $0.95 in 2002. The company describes itself as one of the five largest metals service centers in the United States, operating 106 processing and distribution facilities in 30 states, Belgium, France and South Korea. Gross margin slipped to 27.1% of sales from 27.3% as competitive pricing pressure in the first half of 2003 gave way to improving demand from September 2003 onward. The largest event of the year was the July 1, 2003 acquisition of Precision Strip, Inc. for approximately $220 million in cash plus about $26 million of assumed debt. It was funded with $113.0 million drawn on the syndicated credit facility and $135.0 million of new senior secured notes. Partly as a result, long-term debt rose to $469.3 million from $344.1 million, and the net debt-to-total capital ratio increased to 43.1% from 35.4%. Operating cash flow improved to $106.4 million from $90.1 million, and the company reduced borrowings during the year. Management expects demand and pricing to remain firm through the first quarter of 2004, but says tight supply and rising costs could pressure margins if pass-through slows. The filing also highlights a stronger position in the market: sales volumes fell 1.1% in 2003, yet average selling price per ton rose 5.7%, and management believes the company gained market share. The company has paid dividends of $0.24 per share annually for 2002 and 2003. Leverage is elevated after the acquisition, and management does not plan further acquisitions until leverage declines, which it expects by the end of 2004.
Mar 15, 2004
2002
Reliance Annual Report, Year Ended Dec 31, 2002
Reliance Steel & Aluminum Co. reported net sales of $1.75 billion and net income of $30.2 million for 2002, compared with $1.66 billion and $36.3 million in 2001. Diluted earnings per share were $.95, down from $1.28. Income from operations fell to $70.3 million (4.0% of sales) from $91.5 million (5.5%), as gross margin declined to 27.3% from 27.9% amid competitive pricing pressure and LIFO expense of $8.0 million, versus LIFO income of $11.7 million in 2001. Net sales rose 5.3% mainly because of 2002 acquisitions, while same-store sales fell 6.1%, with tons sold down 4.1% and the average selling price per ton down 2.0%. The company consolidated American Steel, L.L.C. from May 1, 2002, after raising its ownership to 50.5%, and completed the Pacific Metal, Central Plains Steel and Olympic Metals acquisitions. Operating cash flow was $90.7 million, which funded $53.3 million of acquisitions and $17.6 million of debt repayment. The net debt-to-total capital ratio improved to 35.5% from 36.3%. Shareholders' equity rose to $609.9 million and total assets reached $1.14 billion. Management stated it does not expect significant improvement in demand or pricing in 2003 and expects competitive pressure on gross margins to continue into at least early 2003. The company operates 99 processing and distribution facilities in 27 states, Belgium, France and South Korea, with 2002 sales of $1.75 billion. The filing describes an industry facing low demand from aerospace, semiconductor and related markets, and it notes that carbon steel flat-rolled costs rose sharply in 2002 because of supply constraints and tariffs. Management stated that it believes the Company is positioned to benefit from improved economic conditions.
Mar 27, 2003
2000
Reliance Annual Report, Year Ended Dec 31, 2000
Reliance Steel & Aluminum Co. reported record 2000 results, with net sales rising to $1,726,665 thousand (a 14.3% increase over 1999) and net income reaching $62,319 thousand, or $2.28 per diluted share. The company attributed the growth mainly to acquisitions completed in 1999 and 2000, along with a 7.4% increase in tons sold and a 6.5% rise in average selling price per ton. Gross margin held roughly steady at 27.2% of sales, while income from operations was $130,349 thousand (7.5% of sales). Management stated it does not anticipate the same level of gross margin and net income returns in 2001 given current economic conditions and metal cost volatility. The balance sheet shows total assets of $997,243 thousand and long-term debt rising to $421,825 thousand from $318,050 thousand, reflecting borrowings used to fund $41,147 thousand of 2000 acquisitions and $56,284 thousand of stock repurchases. Goodwill totaled $232,048 thousand, or 57.6% of shareholders' equity. Operating cash flow fell to $24,464 thousand from $131,355 thousand in 1999, driven by increases in inventories and receivables. Demand in semiconductor and aerospace markets was strong during 2000, while carbon steel sales weakened in the second half, and the company expects semiconductor demand to slow in 2001. In early 2001 the company completed two further acquisitions, Aluminum and Stainless, Inc. (about $22 million in revenue) and Viking Materials, Inc. with Viking Materials of Illinois (about $90 million combined revenue), both funded with its credit line. The company also planned to refinance its syndicated credit facility, and the Board raised the quarterly dividend 9% to $.06 per share in February 2001.
Mar 29, 2001
1999
Reliance Annual Report, Year Ended Dec 31, 1999
Reliance Steel & Aluminum Co. reported record 1999 results, with net sales of $1.51 billion (up from $1.35 billion in 1998) and net income of $57.6 million, or $2.07 per diluted share (versus $1.68 in 1998). The company is one of the largest metals service center companies in the United States, operating 72 processing and distribution facilities in 21 states and France and distributing more than 75,000 metal products to more than 65,000 customers. Management attributes the growth primarily to the inclusion of sales and earnings from acquisitions made in 1998 and 1999, though pricing for most products remained near all-time lows for much of 1999. Net sales per ton fell 17.4% as tons sold rose 35.1%, and the filing notes that management does not anticipate the same rate of growth in gross margins and net income in 2000 due to rising material costs. The balance sheet grew to $900.0 million in total assets, with long-term debt of $318.1 million and shareholders' equity of $400.3 million. Goodwill of $215.2 million represented about 24% of total assets. Cash flow from operations increased to $131.4 million in 1999 from $30.9 million in 1998, aided by a $46.1 million reduction in inventories excluding acquired inventory. Net capital expenditures were $19.5 million, and the company spent about $83.7 million on 1999 acquisitions. Subsequent to year end, the company acquired Hagerty Steel & Aluminum Company's Peoria, Illinois operations on February 5, 2000, funded through its line of credit. The company disclosed a 3-for-2 stock split in September 1999 and raised its quarterly dividend to $.055 per share in February 2000. Risk factors highlighted in the filing include the cyclical nature of end markets such as aerospace and semiconductor manufacturing, which saw sales to aerospace decline about 17% in 1999, increased leverage from acquisitions, and exposure to metal price fluctuations.
Mar 27, 2000
1998
Reliance Annual Report, Year Ended Dec 31, 1998
Reliance Steel & Aluminum Co. reported record 1998 results, driven mainly by acquisitions completed in 1997 and 1998. Net sales rose to $1,352,807 thousand from $961,518 thousand in 1997, and net income rose to $47,675 thousand from $34,176 thousand. Diluted earnings per share were $2.53, versus $2.15 in 1997. Gross margin improved to 24.3% of sales from 23.3%, as raw material costs fell faster than selling prices. Management noted that pricing pressure persisted through 1998, and it does not anticipate the same rate of growth in revenues and net income in 1999. The company's growth was financed largely with debt. Long-term debt increased to $343,250 thousand at December 31, 1998, from $143,350 thousand a year earlier, following a $150 million senior unsecured notes private placement in November 1998 and borrowings under a $200 million syndicated line of credit. Total assets grew to $841,395 thousand from $583,866 thousand. The filing states that the company's higher leverage increases its risks. Shareholders' equity rose modestly to $345,802 thousand, and the company repurchased 430,800 shares during 1998. After year-end, the company acquired Liebovich Bros., Inc. on March 1, 1999, for approximately $60 million in cash, adding a Midwest presence. The company describes its Year 2000 cost estimate as approximately $1.5 million and does not expect a material impact on operations.
Mar 29, 1999
1997-A
Reliance Annual Report (Amendment), Year Ended Dec 31, 1997
Reliance Steel & Aluminum Co. filed this Amendment No. 1 to its Form 10-K for the fiscal year ended December 31, 1997. The filing's stated purpose is to replace Exhibit 23.01, the Consent of Independent Auditors, in its entirety. The amended consent covers the incorporation by reference of the auditor's report into the Company's Form S-8 registration statement for the 1994 Incentive and Non-Qualified Option Plan and the 1989 Employee Non-Qualified Stock Option Plan. The consent identifies Ernst & Young LLP as the independent auditor, with its report dated February 9, 1998, on the consolidated financial statements and schedule included in the Annual Report (Form 10-K/A) for the year ended December 31, 1997. The consent is dated March 26, 1998, in Long Beach, California. The cover page reports 18,842,708 shares of no-par common stock outstanding as of February 28, 1998, and an aggregate market value of voting stock held by non-affiliates of $540,716,199.44, based on the New York Stock Exchange closing price on February 27, 1998. The Company's common stock is registered on the New York Stock Exchange, and its principal executive offices are at 2550 East 25th Street, Los Angeles, California. Part III information is incorporated by reference from the definitive Proxy Statement for the Annual Meeting of Shareholders to be held May 20, 1998.
Mar 30, 1998
1997
Reliance Annual Report, Year Ended Dec 31, 1997
Reliance Steel & Aluminum Co. reported record 1997 results, driven mainly by four acquisitions completed during the year and two in early 1998. Net sales rose to $961.5 million in 1997 from $654.0 million in 1996, an increase of 47.0%, while net income increased to $34.2 million from $29.8 million. Diluted earnings per share were $2.15 versus $1.90. The filing attributes the growth to the inclusion of acquired companies, including CCC Steel, Siskin, AMI, Amalco, Service Steel Aerospace and Georgia Steel, and notes that gross margin declined to 23.3% of sales from 24.7% as raw material selling prices fell. The company's balance sheet expanded considerably. Total assets grew to $583.9 million from $391.2 million, long-term debt rose to $143.4 million from $107.5 million, and shareholders' equity increased to $313.2 million from $192.6 million, largely reflecting a November 1997 public offering of 3,595,000 shares that netted $93.9 million. Working capital was $213.3 million at year-end. Management stated that cash from operations and its $200 million syndicated credit facility should meet working capital needs for the foreseeable future. Operating risks highlighted in the filing include exposure to cyclical end markets, particularly the semiconductor industry, which the company says has suffered a significant slowdown, offset by an improving aerospace sector. The filing also flags higher leverage after its acquisitions and restrictions on dividends under its debt covenants, which limit cash dividends to 25% of prior-year net income beginning in 1998. The company stated that its Year 2000 issue is not expected to have a material impact.
Mar 27, 1998