Reliance Inc

NYSE:RSUnited States

Oct 24, 2024

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• Reliance Q3 Non-GAAP Earnings, Net Sales Fall; Q4 Non-GAAP Earnings Guidance Issued, from 7:35AM ET on Thursday Oct 24, 2024 by MT Newswires

  7:35AM ET on Thursday Oct 24, 2024 by MT Newswires
  Companies Mentioned: RS
  07:35 AM EDT, 10/24/2024 (MT Newswires) -- Reliance (RS) reported Q3 non-GAAP earnings Thursday of $3.64 per diluted share, down from $5 a year earlier. Analysts polled by Capital IQ expected $3.66. Net sales for the quarter ended Sept. 30 were $3.4...

• -- Earnings Flash (RS) RELIANCE Posts Q3 Revenue $3.42B, from 6:50AM ET on Thursday Oct 24, 2024 by MT Newswires

  6:50AM ET on Thursday Oct 24, 2024 by MT Newswires
  Companies Mentioned: RS
  06:50 AM EDT, 10/24/2024 (MT Newswires) -- ...

• Reliance, Inc. Reports Third Quarter 2024 Financial Results, from 6:50AM ET on Thursday Oct 24, 2024 by Dow Jones

  6:50AM ET on Thursday Oct 24, 2024 by Dow Jones
  Companies Mentioned: RS
  charges 2.8 1.0 0.04 0.02 Non-recurring income of acquisitions (3.6) -- (0.06) -- Non-recurring settlement charges 5.1 -- 0.09 -- Debt restructuring charge 1.5 -- 0.03 -- Gains related to sales of non-core assets -- (4.8) -- (0.08) Income tax (benefit) expense related to above items (1.4) 0.9 (0.02) 0.01 ------- ------- ------- ------- Non-GAAP net income attributable to Reliance $ 774.3 $1,060.3 $ 13.63 $ 17.87 ======= ======= ======= ======= Three Months Ended Nine Months Ended ---------------------------------------- -------------------------- September September September September 30, June 30, 30, 30, 30, 2024 2024 2023 2024 2023 ------------ ------------ ------------ ------------ ------------ Pretax income $ 260.5 $ 349.7 $ 388.0 $1,006.4 $1,407.4 Restructuring charges 2.1 0.4 1.0 2.8 1.0 Non-recurring income of acquisitions (1.6) (2.0) -- (3.6) -- Non-recurring settlement charges 0.5 -- -- 5.1 -- Debt restructuring charge 1.5 -- -- 1.5 -- Gains related to sales of non-core assets -- -- -- -- (4.8) ------- ------- ------- ------- ------- Non-GAAP pretax income $ 263.0 $ 348.1 $ 389.0 $1,012.2 $1,403.6 ======= ======= ======= ======= ======= Three Months Ended Nine Months Ended ---------------------------------------- -------------------------- September September September September 30, June 30, 30, 30, 30, 2024 2024 2023 2024 2023 ------------ ------------ ------------ ------------ ------------ Gross profit - LIFO $1,006.3 $1,086.0 $1,077.0 $3,220.5 $3,525.7 Amortization of inventory step-down (1.6) (2.0) -- (3.6) -- Restructuring charges 1.7 -- -- 1.7 -- ------- ------- ------- ------- ------- Non-GAAP gross profit 1,006.4 1,084.0 1,077.0 3,218.6 3,525.7 LIFO income (50.0) (50.0) (45.0) (150.0) (105.0) ------- ------- ------- ------- ------- Non-GAAP gross profit - FIFO $ 956.4 $1,034.0 $1,032.0 $3,068.6 $3,420.7 ======= ======= ======= ======= ======= Gross profit margin - LIFO 29.4% 29.8% 29.7% 30.1% 30.7% Amortization of inventory step-down as a % of sales -- -- -- -- -- Restructuring charges as a % of sales -- -- -- -- -- ------- ------- ------- ------- ------- Non-GAAP gross profit margin 29.4% 29.8% 29.7% 30.1% 30.7% LIFO income as a % of sales (1.5%) (1.4%) (1.2%) (1.4%) (0.9%) ------- ------- ------- ------- ------- Non-GAAP gross profit margin - FIFO 27.9% 28.4% 28.5% 28.7% 29.8% ======= ======= ======= ======= ======= September September 30, June 30, 30, 2024 2024 2023 ------------ ------------ ------------ Total debt $1,276.4 $1,151.4 $1,151.7 Less: unamortized debt discount and debt issuance costs (9.1) (7.8) (9.8) ------- ------- ------- Carrying amount of debt 1,267.3 1,143.6 1,141.9 Less: cash and cash equivalents (314.6) (350.8) (976.9) ------- ------- ------- Net debt $ 952.7 $ 792.8 $ 165.0 ======= ======= ======= Twelve Months Ended ---------------------------------------- September September 30, June 30, 30, 2024 2024 2023 ------------ ------------ ------------ Net income $1,045.4 $1,141.5 $1,418.0 Depreciation and amortization 261.0 253.7 243.9 Interest expense 40.1 38.9 45.8 Income taxes 294.3 325.7 436.0 ------- ------- ------- EBITDA $1,640.8 $1,759.8 $2,143.7 ======= ======= ======= Net 0.6x 0.5x 0.1x debt-to-EBITDA Total 0.8x 0.7x 0.5x debt-to-EBITDA Reliance, Inc.'s presentation of non-GAAP pretax income, net income and EPS over certain time periods is an attempt to provide meaningful comparisons to the Company's historical performance for its existing and future stockholders. Adjustments include restructuring charges, non-recurring income of its acquisitions, non-recurring settlement charges, non-recurring expenses related to the amendment of its credit agreement, and gains on sales of non-core property, plant, and equipment, which make comparisons of the Company's operating results between periods difficult using GAAP measures. Reliance, Inc.'s presentation of gross profit margin - FIFO, which is calculated as gross profit plus LIFO expense (or minus LIFO income) divided by net sales, is presented in order to provide a means of comparison amongst its competitors who may not use the same inventory valuation method. Please see footnote 1 below for additional information on the Company's gross profit and gross profit margin. Reliance, Inc. presents net debt- and total debt-to-EBITDA as a measurement of leverage utilized by management to monitor its debt levels in relation to its operating cash flow for which it utilizes EBITDA as a proxy. Footnotes (1) Gross profit, calculated as net sales less cost of sales, and gross profit margin, calculated as gross profit divided by net sales, are non-GAAP financial measures as they exclude depreciation and amortization expense associated with the corresponding sales. About half of Reliance's orders are basic distribution with no processing services performed. For the remainder of its sales orders, Reliance performs "first-stage" processing, which is generally not labor intensive as it is simply cutting the metal to size. Because of this, the amount of related labor and overhead, including depreciation and amortization, is not significant and is excluded from cost of sales. Therefore, Reliance's cost of sales is substantially comprised of the cost of the material it sells. Reliance uses gross profit and gross profit margin, as shown, as measures of operating performance. Gross profit and gross profit margin are important operating and financial measures, as their fluctuations can have a significant impact on Reliance's earnings. Gross profit and gross profit margin, as presented, are not necessarily comparable with similarly titled measures for other companies. (2) See accompanying Non-GAAP Reconciliation. Certain percentages may not calculate due to rounding. (3) Free cash flow is calculated as cash provided by operations reduced by capital expenditures. (4) Net debt-to-total capital is calculated as carrying amount of debt (net of cash) divided by total Reliance stockholders' equity plus carrying amount of debt (net of cash). (5) Net debt- and total debt-to-EBITDA are calculated as carrying amount of debt (net of cash) or total debt divided by earnings before interest, income taxes, depreciation, amortization and impairment of long-lived assets ("EBITDA") for the most recent twelve months.