01—Abstract
Summary
Summary of the 10-K/A filed August 6, 2008. Cited figures are marked; the original filing is the authoritative source.
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 thousanda 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 thousandb 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 thousandc 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.
02—Key points
Key Highlights
- Net sales rose to $7,255,679 thousand in 2007 from $5,742,608 thousand in 2006.
- Net income was $407,955 thousand in 2007 versus $354,507 thousand in 2006; diluted EPS from continuing operations was $5.36.
- Net cash provided by operating activities was $638,964 thousand in 2007, compared with $190,964 thousand in 2006.
- Goodwill increased to $886,152 thousand and intangible assets, net, to $464,291 thousand at December 31, 2007.
- Total long-term debt was $1,080,580 thousand at year-end 2007, including $185,000 thousand outstanding on the $1,100,000 thousand revolving line of credit.
- The company repurchased 1,673,467 shares in 2007 at an average cost of $49.10 per share, and cash dividends were $.32 per share for the year.
- Internal control over financial reporting was concluded effective as of December 31, 2007, with an unqualified audit opinion from Ernst & Young LLP.
03—Questions
Frequently Asked Questions
Why was this amended 10-K/A filed?
The company filed Amendment No. 1 to remove a reference to an unnamed third-party valuation specialist in Note 3, Acquisitions, following a comment letter from the SEC. The company stated that it has ultimate responsibility for that work. The amendment updates Items 8, 9A, 9A(T) and 15.
How did revenue and earnings change in 2007?
Net sales were $7,255,679 thousand in 2007 compared with $5,742,608 thousand in 2006. Net income was $407,955 thousand compared with $354,507 thousand, and diluted EPS from continuing operations was $5.36 compared with $4.82.
What acquisitions did the company make in 2007?
The company acquired Crest Steel Corporation and Industrial Metals and Surplus, Inc. on January 2, 2007, Encore Group effective February 1, 2007, Clayton Metals on July 1, 2007, and Metalweb plc effective October 1, 2007. The total purchase price for these acquisitions was approximately $281,443 thousand.
What is the company's debt position at year-end 2007?
Total debt was $1,080,580 thousand at December 31, 2007, with $71,815 thousand due within one year. The $1,100,000 thousand syndicated revolving credit facility had $185,000 thousand drawn, and the company had $37,831 thousand of letters of credit outstanding under that facility.
How much did the company return to shareholders in 2007?
The company repurchased 1,673,467 shares at an average cost of $49.10 per share, and paid cash dividends of $24,207 thousand, or $.32 per share. In February 2008, the quarterly dividend was increased to $.10 per share from $.08.
04—Continue