Skip to content
AnalystLens

Reliance 8-K Report, Financial Results (Apr 25, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 25, 2024
Period End
April 25, 2024
Security
RS
In the record · 2016–202610-K1110-Q338-K74

RS filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 74 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Oct ’16Oct ’16
  2. Leadership change8-K · Oct ’21Oct ’21
  3. Leadership change8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 8-K filed April 25, 2024. Cited figures are marked; the original filing is the authoritative source.

Reliance, Inc. reported first quarter 2024 results for the period ended March 31, 2024, with net sales of $3.64 billiona, a gross profit margin of 31.0%, diluted EPS of $5.23 and non-GAAP diluted EPS of $5.30.

Net sales were up 9.2% sequentially from the fourth quarter of 2023 but down 8.1% year over year from $3,965.3 millionb in Q1 2023. Tons sold rose 10.3% sequentially to 1,494.0 thousand, while average selling price per ton fell 1.0% sequentially to $2,442. Management described a more challenging pricing environment than it had anticipated, while noting that its diversified end markets and value-added processing supported gross margin at the high end of its sustainable range.

Cash generation weakened in the quarter. Cash provided by operations was $126.3 millionc, down from $525.6 million in the prior quarter and $384.6 million a year earlier, and free cash flow was $17.6 million. Reliance ended the quarter with $934.9 million of cash and cash equivalents, total debt of $1.15 billion, and no borrowings under its $1.5 billion revolving credit facility.

The company paid $65.3 milliond in dividends and made no share repurchases in the quarter, while completing the Cooksey Iron & Metal acquisition on February 1, 2024 and, effective April 1, 2024, the American Alloy Steel and Mid-West Materials acquisitions. For the second quarter of 2024, Reliance expects tons sold to rise 2.5% to 4.5% sequentially, with about 2% of that growth from acquisitions, and expects average selling price per ton to fall 1% to 3%.

It also anticipates short-term gross margin pressure as higher-cost inventory works through, and guided non-GAAP EPS to a range of $4.70 to $4.90. The board declared a quarterly dividend of $1.10 per share payable June 7, 2024.

02—Key points

Key Highlights

  1. Net sales of $3.64 billion, up 9.2% sequentially from Q4 2023 but down 8.1% from Q1 2023.
  2. Gross profit margin of 31.0%, compared with 30.6% in Q4 2023 and 30.9% in Q1 2023.
  3. Diluted EPS of $5.23 and non-GAAP diluted EPS of $5.30, versus $6.43 diluted EPS in Q1 2023.
  4. Tons sold increased 10.3% sequentially to 1,494.0 thousand, while average selling price per ton declined 1.0% sequentially to $2,442.
  5. Cash provided by operations fell to $126.3 million and free cash flow to $17.6 million, with no share repurchases in the quarter.
  6. Q2 2024 guidance calls for tons sold up 2.5% to 4.5% and average selling price down 1% to 3% sequentially, with non-GAAP EPS of $4.70 to $4.90.
  7. Three acquisitions completed in 2024, which management says collectively add nearly $500 million in annualized net sales.

03—Questions

Frequently Asked Questions

  1. How did Reliance perform in the first quarter of 2024?

    Net sales were $3.64 billion, with a 31.0% gross profit margin, net income attributable to Reliance of $302.9 million, and diluted EPS of $5.23 (non-GAAP $5.30). Results were down year over year from Q1 2023 but up sequentially from Q4 2023.

  2. Why did cash flow decline in the quarter?

    Cash provided by operations was $126.3 million, compared with $525.6 million in Q4 2023 and $384.6 million in Q1 2023. The cash flow statement shows increases in accounts receivable (-$211.6 million) and inventories (-$114.6 million) as working capital absorbed cash.

  3. What is the outlook for the second quarter of 2024?

    Reliance expects tons sold to rise 2.5% to 4.5% sequentially, including about 2% from April 1 acquisitions, and average selling price per ton to fall 1% to 3%. It expects short-term gross profit margin pressure as higher-cost inventory is worked through, and non-GAAP EPS of $4.70 to $4.90.

  4. What acquisitions did Reliance complete and what do they add?

    Reliance completed Cooksey Iron & Metal Company on February 1, 2024 (about $90 million of 2023 net sales), and American Alloy Steel, Inc. (about $310 million) and Mid-West Materials, Inc. (about $87 million) on April 1, 2024, based on their 2023 net sales. Management says the three collectively add nearly $500 million in annualized net sales.

  5. How is Reliance returning capital to shareholders?

    The board declared a quarterly dividend of $1.10 per share, payable June 7, 2024, to holders of record on May 24, 2024. The company paid $65.3 million in dividends during the quarter and made no share repurchases, compared with $38.9 million in Q1 2023.

04—Continue

← View all 8-K filings