EPS Up 40% from Q4, 2013
Company Website:
http://www.rsac.com
LOS ANGELES -- (Business Wire)
Reliance Steel & Aluminum Co. (NYSE: RS) today reported its financial
results for the first quarter ended March 31, 2014.
First Quarter 2014 Financial Highlights
-
Sales were $2.55 billion, up 26.1% from $2.03 billion in the first
quarter of 2013 and up 10.7% from $2.31 billion in the fourth quarter
of 2013.
-
Tons sold were up 38.6% from the first quarter of 2013 and up 8.9%
from the fourth quarter of 2013, with the average selling price per
ton sold down 8.7% from the first quarter of 2013 and up 1.7% from the
fourth quarter of 2013.
-
Net income attributable to Reliance was $87.2 million, up 4.2% from
$83.7 million in the first quarter of 2013 and up 41.1% from $61.8
million in the fourth quarter of 2013.
-
Earnings per diluted share were $1.11, up 1.8% from $1.09 in the first
quarter of 2013 and up 40.5% from $0.79 in the fourth quarter of 2013.
-
Non-GAAP earnings per diluted share were $1.19, up 5.3% from $1.13 in
the first quarter of 2013 and up 29.3% from $0.92 in the fourth
quarter of 2013.
-
A pre-tax LIFO charge, or expense, of $5.0 million, is included in
cost of sales compared to a pre-tax LIFO credit, or income, of $5.0
million in the first quarter of 2013 and a credit of $12.7 million for
the fourth quarter of 2013.
-
The effective tax rate was 34.5%, compared to 29.5% in the first
quarter of 2013 and 33.0% in the fourth quarter of 2013.
-
Cash flow from operations was $68.8 million for the first quarter of
2014 and net debt-to-total capital was 33.8% at March 31, 2014.
-
Quarterly cash dividend increased to $0.35 per share during the
quarter.
Management Commentary
“During the first quarter, the overall improvement in demand that we
experienced in the second half of 2013 continued, in addition to the
normal seasonal pick-up compared to the fourth quarter, with tons sold
up 8.9%. Our average selling price per ton sold increased 1.7% compared
to the prior quarter,” said David H. Hannah, Chairman and CEO of
Reliance. “Both demand and pricing increased sequentially for three
months in a row during the first quarter, a trend we have not
experienced since early 2012.”
“However, notwithstanding the positive trends during the quarter,
pricing remains lower on a year-over-year basis which resulted in a 4.4%
reduction in our average price per ton sold (same store) and somewhat
offsets the 8.4% year-over-year improvement in total tons sold (same
store). Our consolidated sales increased 26.1% over the year ago quarter
due to our acquisition activity, including Metals USA that we closed in
April 2013. Our Non-GAAP earnings per diluted share of $1.19 for the
first quarter were slightly below our guidance range due to more
volatile metals pricing than we had anticipated. Our GAAP earnings per
share included $0.08 of charges related to a previously disclosed
litigation matter. Also impacting our earnings as compared to the first
and fourth quarters were LIFO charges and a higher effective tax rate
which, together, reduced earnings per diluted share by approximately
$0.16 compared to each of those periods. We continue to be pleased with
the operational execution of our managers in the field as demonstrated
by Reliance’s relatively consistent FIFO gross profit margin that helps
to mitigate the impact of the lower pricing on our profitability.”
Mr. Hannah concluded, “Reliance continues to operate from a position of
financial strength as evidenced by our strong balance sheet and cash
flow generation. As of the end of the first quarter, our net
debt-to-total capital ratio improved to 33.8% with over $900 million
available on our $1.5 billion revolving credit facility. Our financial
position and liquidity provides a strong foundation for re-investment in
our business—both organically and through strategic acquisitions—to
create long-term shareholder value.”
|
First Quarter 2014 Business Metrics |
(tons in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
|
|
| Sequential |
|
|
| |
|
|
| |
| | | | Q1 | | | | Q4 | | | | Quarter | | | | Q1 | | | | Year-Over-Year |
|
|
|
| 2014 |
|
|
| 2013 |
|
|
| Change |
|
|
| 2013 |
|
|
| Change |
Tons sold |
|
|
|
|
1,532.4
|
|
|
|
|
1,406.9
|
|
|
|
8.9
|
%
|
|
|
|
|
1,105.9
|
|
|
|
38.6
|
%
|
Tons sold (same store) |
|
|
|
|
1,199.0
|
|
|
|
|
1,109.2
|
|
|
|
8.1
|
%
|
|
|
|
|
1,105.9
|
|
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avg. price per ton sold |
|
|
|
$
|
1,673
|
|
|
|
$
|
1,645
|
|
|
|
1.7
|
%
|
|
|
|
$
|
1,832
|
|
|
|
(8.7
|
%)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
First Quarter 2014 Major Commodity Metrics |
|
|
|
| |
|
|
| Average Selling Price per Ton |
|
|
|
| Tons Sold (tons in thousands; percent change) |
|
|
| Sold (percent change) |
| | | | |
|
|
| |
|
|
| Sequential |
|
|
| |
|
|
| Year-Over- | | | | |
|
|
| |
| | | | Q1 2014 | | | | Q4 2013 | | | | Quarter | | | | Q1 2013 | | | | Year | | | | Sequential | | | | Year-Over-Year |
|
|
|
| Tons Sold |
|
|
| Tons Sold |
|
|
| Change |
|
|
| Tons Sold |
|
|
| Change |
|
|
| Quarter Change |
|
|
| Change |
Carbon steel |
|
|
|
1,260.4
|
|
|
|
1,164.0
|
|
|
|
8.3
|
%
|
|
|
|
868.6
|
|
|
|
45.1
|
%
|
|
|
|
2.7
|
%
|
|
|
|
(2.0
|
%)
|
Aluminum |
|
|
|
76.7
|
|
|
|
71.3
|
|
|
|
7.6
|
%
|
|
|
|
62.5
|
|
|
|
22.7
|
%
|
|
|
|
0.9
|
%
|
|
|
|
(7.2
|
%)
|
Stainless steel |
|
|
|
77.3
|
|
|
|
71.6
|
|
|
|
8.0
|
%
|
|
|
|
61.8
|
|
|
|
25.1
|
%
|
|
|
|
0.0
|
%
|
|
|
|
(11.0
|
%)
|
Alloy |
|
|
|
83.8
|
|
|
|
67.4
|
|
|
|
24.3
|
%
|
|
|
|
82.7
|
|
|
|
1.3
|
%
|
|
|
|
(2.2
|
%)
|
|
|
|
(3.1
|
%)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
|
| Sales ($ in millions; percent change) |
|
|
|
| |
|
|
| |
|
|
| Sequential |
|
|
| |
|
|
| Year-Over-Year |
|
|
|
| Q1 2014 Sales |
|
|
| Q4 2013 Sales |
|
|
| Quarter Change |
|
|
| Q1 2013 Sales |
|
|
| Change |
Carbon steel |
|
|
|
$
|
1,438.9
|
|
|
|
$
|
1,294.4
|
|
|
|
11.2
|
%
|
|
|
|
$
|
1,012.3
|
|
|
|
42.1
|
%
|
Aluminum |
|
|
|
$
|
386.6
|
|
|
|
$
|
356.2
|
|
|
|
8.5
|
%
|
|
|
|
$
|
339.6
|
|
|
|
13.8
|
%
|
Stainless steel |
|
|
|
$
|
352.3
|
|
|
|
$
|
326.5
|
|
|
|
7.9
|
%
|
|
|
|
$
|
316.7
|
|
|
|
11.2
|
%
|
Alloy |
|
|
|
$
|
238.9
|
|
|
|
$
|
196.5
|
|
|
|
21.6
|
%
|
|
|
|
$
|
243.4
|
|
|
|
(1.8
|
%)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
End-market Commentary
As noted above, same-store tons sold increased 8.4% compared to the
first quarter of 2013. The increase was spread across all of the
Company’s product groups and related end markets.
While the Company does not expect any single end-market to deliver
outsized growth in 2014, Reliance does expect ongoing strength in
automotive (through the Company’s toll processing operations) along with
solid operating results in aerospace, energy (oil and gas),
semiconductor/electronics and manufactured goods. The Company also
anticipates a mild recovery in non-residential construction in 2014.
-
Aerospace demand is expected to improve in 2014, although Reliance
expects pricing will remain under some pressure due to excess mill
capacity and higher industry-wide aluminum plate inventory levels.
-
Automotive, supported mainly by the Company’s toll processing
operations in the U.S. and Mexico, is expected to generate solid
performance again in 2014.
-
Energy (oil and gas) demand for the products Reliance sells is
expected to modestly improve in 2014, along with slightly better
pricing.
-
Heavy industry continues to perform reasonably well. Reliance expects
modest improvement in both demand and pricing in 2014.
-
Non-residential construction is showing the beginning signs of a
possible recovery, albeit at significantly reduced demand levels from
its peak. Reliance is cautiously optimistic that this important
end-market will show further improvement throughout 2014.
Balance Sheet & Liquidity
As of March 31, 2014, total debt outstanding was $2.13 billion, for a
net debt-to-total capital ratio of 33.8%, down from 34.3% at December
31, 2013. The Company had $505.0 million outstanding on the $1.5 billion
revolving credit facility at March 31, 2014. The Company generated $68.8
million in cash flow from operating activities in the first quarter of
2014, compared to cash flow from operating activities of $72.2 million
during the same period in the prior year. Reliance remains pleased with
its overall financial position and strong cash flow.
Corporate Developments
On April 22, 2014, the Board of Directors declared a regular quarterly
cash dividend of $0.35 per share of common stock. The dividend is
payable on June 20, 2014 to shareholders of record as of May 30, 2014.
The Company has paid regular quarterly dividends for 55 consecutive
years. Cash dividends per share paid in 2013 were up 57.5% compared to
2012.
Business Outlook
As the U.S. economy maintains its slow but steady recovery, Reliance
expects metals pricing and demand to continue to improve throughout the
second quarter. As a result, assuming increased tons sold and average
pricing up modestly, for the second quarter ending June 30, 2014,
management currently expects earnings per diluted share to be in the
range of $1.30 to $1.40.
Conference Call Details
A conference call and simultaneous webcast to discuss first quarter 2014
financial results and business outlook will be held today, April 24,
2014, at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. David Hannah,
Reliance Steel & Aluminum Co.'s Chairman of the Board and Chief
Executive Officer, Gregg Mollins, President and Chief Operating Officer
and Karla Lewis, Executive Vice President and Chief Financial Officer,
will host the call. To listen to the live call by telephone, please dial
(877) 407-0789 (U.S. and Canada) or (201) 689-8562 (International)
approximately 10 minutes prior to the start time and use conference ID:
13579752. The call will also be broadcast live over the Internet hosted
on the Investors section of the Company's website at investor.rsac.com.
Participants are encouraged to visit the web site at least 15 minutes
prior to the start of the call to register and to download and install
any necessary audio software.
For those unable to participate during the live broadcast, a replay of
the call will also be available beginning that same day at 2:00 p.m.
Eastern Time until 11:59 p.m. Eastern Time on Thursday, May 8, 2014 by
dialing (877) 870-5176 and entering the conference ID: 13579752. The
webcast will remain posted on the Investors section of Reliance’s web
site at investor.rsac.com for 90 days.
About Reliance Steel & Aluminum Co.
Reliance Steel & Aluminum Co., headquartered in Los Angeles, California,
is the largest metals service center company in North America. Through a
network of more than 290 locations in 39 states and eleven countries
outside of the United States, the Company 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.
Forward-Looking Statements
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 business strategies and its expectations concerning future
metals pricing and demand and the Company's results of operations,
margins, profitability, liquidity, 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" and
"continue," the negative of these terms, and similar expressions.
These forward-looking statements are based on management's estimates,
projections and assumptions as of today’s date that may not prove to be
accurate. Forward-looking statements involve known and unknown risks and
uncertainties and are not guarantees of future performance. Actual
outcomes and results may differ materially from what is expressed or
forecasted in these forward-looking statements as a result of various
important factors, including, but not limited to, those disclosed in
reports we have filed with the Securities and Exchange Commission (the
"SEC"). As a result, these statements speak only as of the date that
they are made, and Reliance disclaims any and all obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. Important risks and
uncertainties about Reliance's business can be found in the Company's
Annual Report on Form 10-K for the year ended December 31, 2013 filed
with the SEC.
|
RELIANCE STEEL & ALUMINUM CO. |
SELECTED UNAUDITED FINANCIAL DATA |
(in millions, except share and per share amounts) |
|
|
|
|
| Three Months |
| | | | Ended March 31, |
| | | | 2014 |
|
|
| 2013 |
Income Statement Data: | | | | | | | | | | | | |
| | | | | | | | | | | |
|
Net sales
| | | |
$
|
2,553.0
| | | | |
$
|
2,025.3
| |
Gross profit1 | | | | |
647.2
| | | | | |
528.8
| |
Operating income
| | | | |
154.3
| | | | | |
130.0
| |
Pre-tax income
| | | | |
134.1
| | | | | |
119.8
| |
Net income attributable to Reliance
| | | | |
87.2
| | | | | |
83.7
| |
Diluted earnings per share attributable to
| | | | | | | | | | | | |
Reliance shareholders
| | | |
$
|
1.11
| | | | |
$
|
1.09
| |
Non-GAAP diluted earnings per share
| | | | | | | | | | | | |
attributable to Reliance shareholders2 | | | |
$
|
1.19
| | | | |
$
|
1.13
| |
Weighted average shares outstanding –
| | | | | | | | | | | | |
diluted
| | | | |
78,357,832
| | | | | |
77,080,703
| |
Gross profit margin1 | | | | |
25.4
|
%
| | | | |
26.1
|
%
|
Operating income margin
| | | | |
6.0
|
%
| | | | |
6.4
|
%
|
Pre-tax income margin
| | | | |
5.3
|
%
| | | | |
5.9
|
%
|
Net income margin – Reliance
| | | | |
3.4
|
%
| | | | |
4.1
|
%
|
Cash dividends per share
| | | |
$
|
0.35
| | | | |
$
|
0.30
| |
| | | | | | | | | | | |
|
| | | | March 31, | | | | December 31, |
| | | | 2014 | | | | 2013* |
Balance Sheet and Other Data: | | | | | | | | | | | | |
| | | | | | | | | | | |
|
Current assets
| | | |
$
|
3,025.1
| | | | |
$
|
2,738.9
| |
Working capital
| | | | |
2,278.9
| | | | | |
2,165.5
| |
Property, plant and equipment, net
| | | | |
1,594.0
| | | | | |
1,603.9
| |
Total assets
| | | | |
7,596.7
| | | | | |
7,341.0
| |
Current liabilities
| | | | |
746.2
| | | | | |
573.4
| |
Long-term debt
| | | | |
2,091.0
| | | | | |
2,072.5
| |
Total Reliance shareholders’ equity
| | | | |
3,939.5
| | | | | |
3,874.6
| |
Capital Expenditures (year-to-date)
| | | | |
28.9
| | | | | |
168.0
| |
Cash provided by operations (year-to-date)
| | | | |
68.8
| | | | | |
633.3
| |
Net debt-to-total capital3 | | | | |
33.8
|
%
| | | | |
34.3
|
%
|
Return on Reliance shareholders' equity4 | | | | |
8.4
|
%
| | | | |
9.0
|
%
|
Current ratio
| | | | |
4.1
| | | | | |
4.8
| |
Book value per share5 | | | |
$
|
50.70
| | | | |
$
|
49.99
| |
| | | | | | | | | | | |
|
* Amounts were derived from audited financial statements.
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. The majority of our orders are basic
distribution with no processing services performed. For the
remainder of our sales orders, we perform “first-stage” processing
which is generally not labor intensive as we are simply cutting the
metal to size. Because of this, the amount of related labor and
overhead, including depreciation and amortization, are not
significant and are excluded from our cost of sales. Therefore, our
cost of sales is primarily comprised of the cost of the material we
sell. We use gross profit and gross profit margin as shown above as
measures of operating performance. Gross profit and gross profit
margin are important operating and financial measures, as
fluctuations in our gross profit margin can have a significant
impact on our 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 earnings reconciliation.
|
3 Net debt-to-total capital is calculated as total debt
(net of cash) divided by total Reliance shareholders’ equity plus
total debt (net of cash).
|
4 Calculations are based on the latest twelve months net
income attributable to Reliance and beginning total Reliance
shareholders’ equity.
|
5 Book value per share is calculated as total Reliance
shareholders’ equity divided by outstanding common shares.
|
|
|
RELIANCE STEEL & ALUMINUM CO. |
UNAUDITED CONSOLIDATED BALANCE SHEETS |
(in millions, except share amounts) |
|
ASSETS |
|
|
| |
| | | | March 31, |
|
|
| December 31, |
| | | | 2014 | | | | 2013* |
Current assets:
| | | | | | | | | | | | |
Cash and cash equivalents
| | | |
$
|
113.6
| | | | |
$
|
83.6
| |
Accounts receivable, less allowance for doubtful accounts of
| | | | | | | | | | | | |
$20.0 at March 31, 2014 and $18.9 at December 31, 2013
| | | | |
1,160.1
| | | | | |
983.5
| |
Inventories
| | | | |
1,656.2
| | | | | |
1,540.0
| |
Prepaid expenses and other current assets
| | | | |
56.3
| | | | | |
59.0
| |
Income taxes receivable
| | | | |
-
| | | | | |
33.9
| |
Deferred income taxes
| | | |
|
38.9
| | | | |
|
38.9
| |
Total current assets
| | | | |
3,025.1
| | | | | |
2,738.9
| |
Property, plant and equipment:
| | | | | | | | | | | | |
Land
| | | | |
191.7
| | | | | |
191.7
| |
Buildings
| | | | |
945.3
| | | | | |
934.6
| |
Machinery and equipment
| | | | |
1,363.8
| | | | | |
1,350.3
| |
Accumulated depreciation
| | | |
|
(906.8
|
)
| | | |
|
(872.7
|
)
|
| | | | |
1,594.0
| | | | | |
1,603.9
| |
| | | | | | | | | | | |
|
Goodwill
| | | | |
1,690.3
| | | | | |
1,691.6
| |
Intangible assets, net
| | | | |
1,196.7
| | | | | |
1,213.8
| |
Cash surrender value of life insurance policies, net
| | | | |
42.9
| | | | | |
45.4
| |
Investments in unconsolidated entities
| | | | |
14.7
| | | | | |
14.1
| |
Other assets
| | | |
|
33.0
| | | | |
|
33.3
| |
Total assets
| | | |
$
|
7,596.7
| | | | |
$
|
7,341.0
| |
| | | | | | | | | | | |
|
LIABILITIES AND EQUITY | | | | | | | | | | | | |
| | | | | | | | | | | |
|
Current liabilities:
| | | | | | | | | | | | |
Accounts payable
| | | |
$
|
457.3
| | | | |
$
|
280.3
| |
Accrued expenses
| | | | |
107.8
| | | | | |
91.1
| |
Accrued compensation and retirement costs
| | | | |
87.9
| | | | | |
119.5
| |
Accrued insurance costs
| | | | |
48.0
| | | | | |
46.0
| |
Current maturities of long-term debt and short-term borrowings
| | | | |
36.8
| | | | | |
36.5
| |
Income taxes payable
| | | |
|
8.4
| | | | |
|
-
| |
Total current liabilities
| | | | |
746.2
| | | | | |
573.4
| |
Long-term debt
| | | | |
2,091.0
| | | | | |
2,072.5
| |
Long-term retirement costs
| | | | |
83.8
| | | | | |
84.0
| |
Other long-term liabilities
| | | | |
36.1
| | | | | |
35.9
| |
Deferred income taxes
| | | | |
689.6
| | | | | |
690.8
| |
Commitments and contingencies
| | | | | | | | | | | | |
Equity:
| | | | | | | | | | | | |
Preferred stock, no par value:
| | | | | | | | | | | | |
Authorized shares — 5,000,000
| | | | | | | | | | | | |
None issued or outstanding
| | | | |
-
| | | | | |
-
| |
Common stock, no par value:
| | | | | | | | | | | | |
Authorized shares — 200,000,000
| | | | | | | | | | | | |
Issued and outstanding shares – 77,666,153 at March 31, 2014 and
77,492,017
| | | | | | | | | | | | |
at December 31, 2013, stated capital
| | | | |
831.6
| | | | | |
818.3
| |
Retained earnings
| | | | |
3,123.4
| | | | | |
3,063.0
| |
Accumulated other comprehensive loss
| | | |
|
(15.5
|
)
| | | |
|
(6.7
|
)
|
Total Reliance shareholders’ equity
| | | | |
3,939.5
| | | | | |
3,874.6
| |
Noncontrolling interests
| | | |
|
10.5
| | | | |
|
9.8
| |
Total equity
| | | |
|
3,950.0
| | | | |
|
3,884.4
| |
Total liabilities and equity
| | | |
$
|
7,596.7
| | | | |
$
|
7,341.0
| |
| | | | | | | | | | | |
|
* Amounts were derived from audited financial statements.
|
RELIANCE STEEL & ALUMINUM CO. |
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
(in millions, except per share amounts) |
|
|
|
|
| Three Months Ended March 31, |
| | | | 2014 |
|
|
| 2013 |
| | | | | | | | | | | |
|
Net sales
| | | |
$
|
2,553.0
| | | | |
$
|
2,025.3
| |
| | | | | | | | | | | |
|
Costs and expenses:
| | | | | | | | | | | | |
Cost of sales (exclusive of depreciation
| | | | | | | | | | | | |
and amortization shown below)
| | | | |
1,905.8
| | | | | |
1,496.5
| |
Warehouse, delivery, selling, general and
| | | | | | | | | | | | |
administrative
| | | | |
441.0
| | | | | |
357.7
| |
Depreciation and amortization
| | | |
|
51.9
| | | | |
|
41.1
| |
| | | | |
2,398.7
| | | | | |
1,895.3
| |
| | | | | | | | | | | |
|
Operating income
| | | | |
154.3
| | | | | |
130.0
| |
| | | | | | | | | | | |
|
Other income (expense):
| | | | | | | | | | | | |
Interest
| | | | |
(20.2
|
)
| | | | |
(13.1
|
)
|
Other income, net
| | | |
|
-
| | | | |
|
2.9
| |
Income before income taxes
| | | | |
134.1
| | | | | |
119.8
| |
Income tax provision
| | | |
|
46.2
| | | | |
|
35.3
| |
Net income
| | | | |
87.9
| | | | | |
84.5
| |
Less: Net income attributable to noncontrolling interests
| | | |
|
0.7
| | | | |
|
0.8
| |
Net income attributable to Reliance
| | | |
$
|
87.2
| | | | |
$
|
83.7
| |
| | | | | | | | | | | |
|
Earnings per share:
| | | | | | | | | | | | |
Diluted earnings per common share attributable to
| | | | | | | | | | | | |
Reliance shareholders
| | | |
$
|
1.11
| | | | |
$
|
1.09
| |
| | | | | | | | | | | |
|
Basic earnings per common share attributable to
| | | | | | | | | | | | |
Reliance shareholders
| | | |
$
|
1.13
| | | | |
$
|
1.10
| |
| | | | | | | | | | | |
|
Cash dividends per share
| | | |
$
|
0.35
| | | | |
$
|
0.30
| |
| | | | | | | | | | | |
|
|
RELIANCE STEEL & ALUMINUM CO. |
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(in millions) |
|
|
|
|
| Three Months Ended |
| | | | March 31, |
| | | | 2014 |
|
|
|
| 2013 |
Operating activities: | | | | | | | | | | | | | |
Net income
| | | |
$
|
87.9
| | | | | |
$
|
84.5
| |
Adjustments to reconcile net income to net cash provided by
| | | | | | | | | | | | | |
operating activities:
| | | | | | | | | | | | | |
Depreciation and amortization expense
| | | | |
51.9
| | | | | | |
41.1
| |
Deferred income tax (benefit) provision
| | | | |
(0.7
|
)
| | | | | |
1.6
| |
(Gain) loss on sales of property, plant and equipment
| | | | |
(0.5
|
)
| | | | | |
0.2
| |
Equity in earnings of unconsolidated entities
| | | | |
(0.6
|
)
| | | | | |
(0.3
|
)
|
Dividend received from unconsolidated entity
| | | | |
-
| | | | | | |
0.3
| |
Share-based compensation expense
| | | | |
4.9
| | | | | | |
6.7
| |
Other
| | | | |
2.1
| | | | | | |
(1.6
|
)
|
Changes in operating assets and liabilities:
| | | | | | | | | | | | | |
Accounts receivable
| | | | |
(177.6
|
)
| | | | | |
(134.8
|
)
|
Inventories
| | | | |
(114.6
|
)
| | | | | |
(48.2
|
)
|
Prepaid expenses and other assets
| | | | |
43.9
| | | | | | |
31.3
| |
Accounts payable and other liabilities
| | | |
|
172.1
| | | | | |
|
91.4
| |
Net cash provided by operating activities
| | | | |
68.8
| | | | | | |
72.2
| |
| | | | | | | | | | | | |
|
Investing activities: | | | | | | | | | | | | | |
Purchases of property, plant and equipment
| | | | |
(28.9
|
)
| | | | | |
(26.8
|
)
|
Other
| | | |
|
(9.1
|
)
| | | | |
|
7.3
| |
Net cash used in investing activities
| | | | |
(38.0
|
)
| | | | | |
(19.5
|
)
|
| | | | | | | | | | | | |
|
Financing activities: | | | | | | | | | | | | | |
Net short-term debt repayments
| | | | |
0.3
| | | | | | |
3.1
| |
Proceeds from long-term debt borrowings
| | | | |
160.0
| | | | | | |
50.0
| |
Principal payments on long-term debt
| | | | |
(141.7
|
)
| | | | | |
(110.0
|
)
|
Payment to noncontrolling interest holder
| | | | |
-
| | | | | | |
(0.7
|
)
|
Dividends paid
| | | | |
(27.1
|
)
| | | | | |
(22.9
|
)
|
Excess benefit (tax deficit) from share-based compensation
| | | | |
0.3
| | | | | | |
(0.8
|
)
|
Exercise of stock options
| | | |
|
8.4
| | | | | |
|
31.6
| |
Net cash provided by (used in) financing activities
| | | | |
0.2
| | | | | | |
(49.7
|
)
|
Effect of exchange rate changes on cash
| | | |
|
(1.0
|
)
| | | | |
|
(0.5
|
)
|
Increase in cash and cash equivalents
| | | | |
30.0
| | | | | | |
2.5
| |
Cash and cash equivalents at beginning of year
| | | |
|
83.6
| | | | | |
|
97.6
| |
Cash and cash equivalents at end of period
| | | |
$
|
113.6
| | | | | |
$
|
100.1
| |
| | | | | | | | | | | | |
|
Supplemental cash flow information: | | | | | | | | | | | | | |
Interest paid during the period
| | | |
$
|
5.2
| | | | | |
$
|
4.4
| |
Income taxes paid during the period, net
| | | |
$
|
5.3
| | | | | |
$
|
9.8
| |
| | | | | | | | | | | | |
|
|
RELIANCE STEEL & ALUMINUM CO. |
NON-GAAP EARNINGS RECONCILIATION |
(in millions, except per share amounts) |
|
|
|
| | | |
|
|
| | | |
|
|
| | | |
|
|
| | | |
| | | | | Net Income | | | | | Diluted EPS |
| | | |
| Three Months Ended | | | | | Three Months Ended |
| | | |
| March 31, 2014 | | | | |
| March 31, 2013 | | | | | March 31, 2014 | | | | | March 31, 2013 |
| | | | | | | | | | | | | | | | | | | | | | | |
|
Net income attributable to Reliance
| | | |
$
|
87.2
| | | | |
$
|
83.7
| | | | |
$
|
1.11
| | | | |
$
|
1.09
| |
Acquisition costs
| | | | |
-
| | | | | |
3.1
| | | | | |
-
| | | | | |
0.04
| |
Anti-trust related litigation costs
| | | | |
10.3
| | | | | |
0.2
| | | | | |
0.13
| | | | | |
0.01
| |
Income tax benefit, related to above items
| | | |
|
(3.9
|
)
| | | |
|
(0.2
|
)
| | | |
|
(0.05
|
)
| | | |
|
(0.01
|
)
|
Net income attributable to Reliance, adjusted
| | | |
$
|
93.6
| | | | |
$
|
86.8
| | | | |
$
|
1.19
| | | | |
$
|
1.13
| |
| | | | | | | | | | | | | | | | | | | | | | | |
|
Our presentation of adjusted net income and adjusted EPS over certain
periods is an attempt to provide meaningful comparisons to our
historical performance for our existing and future shareholders.
Adjustments exclude charges for transaction costs related to our April
2013 acquisition of Metals USA and legal costs and accruals related to
the Houston, Texas anti-trust litigation matter, which make comparisons
of our operating results between periods difficult using GAAP measures.
Contacts:
Reliance Steel & Aluminum Co.
Brenda Miyamoto, Investor
Relations
213-576-2428
investor@rsac.com
or
Addo
Communications
310-829-5400
Source: Reliance Steel & Aluminum Co.
© 2024 Canjex Publishing Ltd. All rights reserved.