• Net sales of $3.88 billion with tons sold up 1.9% from Q2 2022
June 30,
YearReliance provides a diverse range of products and processing services to a wide range of end markets, generally in small quantities on an as-needed basis. The Company’s tons sold in the second quarter of 2023 declined 2.4% compared to the prior quarter, reflecting one less shipping day and the impact from the demand pull-forward for carbon steel flat-rolled products experienced in the first quarter of 2023. The Company’s tons sold increased 1.9% year-over-year due to strength in the non-residential construction and aerospace end markets Reliance serves along with contributions from its organic growth investments.At June 30, 2023, Reliance had cash and cash equivalents of $816.3 million and total debt outstanding of $1.15 billion with no outstanding borrowings under its $1.5 billion revolving credit facility. Reliance generated cash flow from operations of $295.1 million during the second quarter of 2023 driven by its solid profitability and effective management of working capital.On July 25, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $1.00 per share of common stock, payable on September 1, 2023 to stockholders of record as of August 18, 2023. Reliance has paid regular quarterly cash dividends for 64 consecutive years without reduction or suspension and has increased the dividend 30 times since its 1994 IPO to a current annual rate of $4.00 per share.As previously announced, on May 1, 2023, Reliance completed the acquisition of all the outstanding equity interests and the related real estate assets of Southern Steel Supply, LLC (“Southern Steel”), a metals service center that offers merchant and structural steel, pipe and tube, steel plate, ornamental products and laser cut and fabricated parts. The addition of Southern Steel expands Reliance’s geographic footprint and value-added processing capabilities. Southern Steel operates as a subsidiary of Siskin Steel & Supply Company, Inc., a wholly owned subsidiary of Reliance. For the twelve months ended December 31, 2022, annual net sales for Southern Steel were $62.9 million.Reliance anticipates underlying demand will remain healthy across the majority of the end markets it serves in the third quarter of 2023. However, the Company expects shipment levels to be impacted by normal seasonal patterns, which include a decline in shipping volumes due to planned customer shutdowns and vacation schedules, along with one less shipping day. As a result, the Company expects tons sold will be down 2% to 4% in the third quarter of 2023 compared to the second quarter of 2023 but up 1.5% to 3.5% from the third quarter of 2022. In addition, Reliance expects its average selling price per ton sold for the third quarter of 2023 to be down 2% to 4% compared to the second quarter of 2023 primarily driven by declining prices for flat-rolled products in carbon steel, stainless steel and common alloy aluminum along with carbon steel tubing products, which collectively represent about 35% of its sales. Further, the Company anticipates temporary downward pressure on its gross profit margin in the third quarter as a result of selling into a declining metal price environment for certain of its products. Based on these expectations, the Company anticipates non-GAAP earnings per diluted share in the range of $4.90 to $5.10 for the third quarter of 2023.A conference call and simultaneous webcast to discuss Reliance’s second quarter 2023 financial results and business outlook will be held on Thursday, July 27, 2023 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: 13739614. The call will also be broadcast live over the Internet hosted on the Investors section of the Company’s website at investor.rsac.com.Founded in 1939, 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 315 locations in 40 states and 12 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 value-added processing services. In 2022, Reliance’s average order size was $3,670, approximately 50% 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 rsac.com.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 and end markets, business strategies, acquisitions, 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, taxes, liquidity, macroeconomic conditions, including inflation and the possibility of an economic recession or slowdown, 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,” “intend” and “continue,” the negative of these terms, and similar expressions.(310) 829-5400Sold (% change)Quarter
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(GlobeNewsWire)