UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
______________
FORM 8-K
CURRENT
REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
______________
Date of
Report (Date of earliest event reported):
October
24, 2013
______________
RELIANCE STEEL & ALUMINUM CO.
(Exact
name of registrant as specified in its charter)
California | 001-13122 | 95-1142616 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number)
|
(I.R.S. Employer
Identification Number) |
350 S. Grand Ave., Suite 5100
Los Angeles, CA 90071
(Address
of principal executive offices)
(213) 687-7700
(Registrant's telephone number, including area
code)
Not applicable.
(Former name or former address, if changed
since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On October 24, 2013, the Company issued a press release announcing financial results for the quarter ended September 30, 2013. Attached hereto as Exhibit 99.1 is a copy of the Company’s press release dated October 24, 2013 announcing the Company’s financial results for this period.
The information contained in this report and the exhibit hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(a) Financial Statements of Businesses Acquired.
Not Applicable.
(b) Pro Forma Financial Information.
Not Applicable.
(c) Shell Company Transactions.
Not Applicable.
(d) Exhibits.
Exhibit No. | Description | |||
99.1 | Press Release dated October 24, 2013 (included herewith). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
RELIANCE STEEL & ALUMINUM CO. |
|||
|
|||
Dated: |
October 24, 2013 |
By |
/s/ Karla R. Lewis |
Karla R. Lewis |
|||
|
Executive Vice President and |
||
Chief Financial Officer |
RELIANCE STEEL & ALUMINUM CO.
FORM 8-K
INDEX TO EXHIBITS
Exhibit No. | Description | |
|
||
99.1 |
Press Release dated October 24, 2013 (included herewith). |
Exhibit 99.1
Reliance Steel & Aluminum Co. Reports Third Quarter 2013 Financial Results
LOS ANGELES--(BUSINESS WIRE)--October 24, 2013--Reliance Steel & Aluminum Co. (NYSE:RS) today reported its financial results for the third quarter ended September 30, 2013.
Third Quarter 2013 Financial Highlights
Management Commentary
“Overall demand in the third quarter was a bit better than anticipated with third quarter tons sold up 2.0% compared to the prior quarter,” said David H. Hannah, Chairman and CEO of Reliance. “Although a significant portion of the increase was due to an additional two weeks of Metals USA activity in the third quarter, our same-store tons sold were up 0.4%. The normal seasonal trend is for third quarter demand to be down from second quarter; however, our 2013 second quarter demand was lower than expected. Metals pricing, on the other hand, was weaker than we had expected, with our average selling price per ton sold down 2.3% from the prior quarter, and down 9.5% compared to the third quarter last year. Despite the persistently soft pricing environment, which weighs heavily on our net sales and profitability, the strong operational execution by our managers in the field partially offset the pricing impact as demonstrated by Reliance’s increase in gross profit margin.”
Mr. Hannah continued, “We continue to profitably grow through successful M&A activity to supplement organic growth. Including acquisitions that were completed in 2012 and 2013, third quarter consolidated net sales were up 18.9% and tons sold were up 31.3% compared to the same period last year. This solid growth was driven primarily by the acquisition of Metals USA, which was completed early in the second quarter this year and has been accretive to our earnings. We are very pleased with the Metals USA integration progress and our ability to grow despite economic and cyclical challenges.”
Third Quarter 2013 Business Metrics |
|||||||||||||||||||||||||
(tons in thousands) | |||||||||||||||||||||||||
Sequential | Year-Over- | ||||||||||||||||||||||||
Q3 | Q2 | Quarter | Q3 | Year | |||||||||||||||||||||
2013 | 2013 | Change | 2012 | change | |||||||||||||||||||||
Tons sold | 1,452.5 | 1,423.5 | 2.0 | % | 1,105.9 | 31.3 | % | ||||||||||||||||||
Tons sold (same store) | 1,137.2 | 1,132.9 | 0.4 | % | 1,102.9 | 3.1 | % | ||||||||||||||||||
Avg. price per ton sold | $ | 1,679 | $ | 1,718 | (2.3 | %) | $ | 1,856 | (9.5 | %) | |||||||||||||||
Third Quarter 2013 Major Commodity Metrics |
||||||||||||||||||||||||||||||||
Average Selling Price per Ton Sold | ||||||||||||||||||||||||||||||||
Tons Sold (tons in thousands; percent change) | (percent change) | |||||||||||||||||||||||||||||||
Sequential | Year-Over- | Sequential | Year-Over- | |||||||||||||||||||||||||||||
Q3 2013 | Q2 2013 | Quarter | Q3 2012 | Year | Quarter | Year | ||||||||||||||||||||||||||
Tons Sold | Tons Sold | Change | Tons Sold | Change | Change | Change | ||||||||||||||||||||||||||
Carbon steel | 1,195.3 | 1,170.6 | 2.1 | % | 887.1 | 34.7 | % | (1.1 | %) | (7.1 | %) | |||||||||||||||||||||
Aluminum | 75.0 | 76.2 | (1.6 | %) | 59.4 | 26.3 | % | (2.9 | %) | (7.4 | %) | |||||||||||||||||||||
Stainless steel | 74.4 | 72.4 | 2.8 | % | 59.0 | 26.1 | % | (4.1 | %) | (13.7 | %) | |||||||||||||||||||||
Alloy | 74.6 | 70.9 | 5.2 | % | 73.8 | 1.1 | % | (3.6 | %) | (6.2 | %) | |||||||||||||||||||||
Sales ($’s in millions; percent change) | |||||||||||||||||||||||||
Sequential | Year-Over- | ||||||||||||||||||||||||
Quarter | Year | ||||||||||||||||||||||||
Q3 2013 Sales | Q2 2013 Sales | Change | Q3 2012 Sales | Change | |||||||||||||||||||||
Carbon steel | $ | 1,338.3 | $ | 1,325.6 | 1.0 | % | $ | 1,069.5 | 25.1 | % | |||||||||||||||
Aluminum | $ | 378.0 | $ | 395.5 | (4.4 | %) | $ | 323.3 | 16.9 | % | |||||||||||||||
Stainless steel | $ | 348.9 | $ | 353.9 | (1.4 | %) | $ | 320.1 | 9.0 | % | |||||||||||||||
Alloy | $ | 219.9 | $ | 216.8 | 1.4 | % | $ | 231.8 | (5.1 | %) | |||||||||||||||
Year-to-Date (9 months) Business Metrics |
|||||||||||||||
(tons in thousands) | |||||||||||||||
Year-Over- | |||||||||||||||
Year | |||||||||||||||
2013 | 2012 | change | |||||||||||||
Tons sold | 3,981.9 | 3,425.8 | 16.2 | % | |||||||||||
Tons sold (same store) | 3,362.3 | 3,418.9 | (1.7 | %) | |||||||||||
Avg. price per ton sold | $ | 1,736 | $ | 1,916 | (9.4 | %) | |||||||||
Year-to-Date (9 months) Major Commodity Metrics |
||||||||||||||||||
Average Selling Price per | ||||||||||||||||||
Tons Sold (tons in thousands; percent change) | Ton Sold (percent change) | |||||||||||||||||
2013 | 2012 | Year-Over- Year | ||||||||||||||||
Tons Sold | Tons Sold | Change |
Year-Over-Year Change |
|||||||||||||||
Carbon steel | 3,234.5 | 2,745.7 | 17.8 | % | (9.3 | %) | ||||||||||||
Aluminum | 213.8 | 184.4 | 15.9 | % | (6.3 | %) | ||||||||||||
Stainless steel | 208.7 | 179.8 | 16.1 | % | (12.8 | %) | ||||||||||||
Alloy |
228.3 |
238.6 | (4.3 | %) | (6.8 | %) | ||||||||||||
Sales ($’s in millions; percent change) | |||||||||||||||
Year-Over- Year | |||||||||||||||
2013 Sales | 2012 Sales | Change | |||||||||||||
Carbon steel | $ | 3,676.2 | $ | 3,442.7 | 6.8 | % | |||||||||
Aluminum | $ | 1,113.2 | $ | 1,024.8 | 8.6 | % | |||||||||
Stainless steel | $ | 1,019.5 | $ | 1,007.6 | 1.2 | % | |||||||||
Alloy | $ | 680.2 | $ | 762.5 | (10.8 | %) | |||||||||
End-market Commentary
Continued strength in automotive (through the Company’s toll processing operations) along with solid but lower operating results in aerospace, energy (oil and gas) and manufactured goods including agriculture and heavy equipment continue to offset the slow recovery in non-residential construction.
Balance Sheet & Liquidity
As of September 30, 2013, total debt outstanding was $2.15 billion, for a net debt-to-total capital ratio of 34.9%, down from 37.6% at June 30, 2013. $183.1 million of debt was paid down in the 2013 third quarter, with only $500 million outstanding on the $1.5 billion credit facility at September 30, 2013. Year-to-date, the Company generated $513.0 million in cash flow from operating activities, compared to cash flow from operating activities of $268.8 million during the first nine months of 2012. Reliance remains pleased with its overall financial position and strong cash flow.
Corporate Developments
On October 22, 2013, the Board of Directors declared a regular quarterly cash dividend of $0.33 per share of common stock. The dividend is payable on December 19, 2013 to shareholders of record as of November 21, 2013. The Company has paid regular quarterly dividends for 54 consecutive years and most recently increased the quarterly dividend rate by 10% in July 2013.
Business Outlook
The Company expects that global economic and political uncertainty, complicated further by political issues in the U.S., will continue to present challenges to industrial growth in the fourth quarter of 2013. In addition, fewer shipping days due to the holiday season and extended holiday-related closures at many of our customers’ facilities are expected to reduce tons sold in the fourth quarter as compared to the 2013 third quarter, a typical seasonal trend. Overall pricing is expected to remain near the current low levels for the remainder of the year. As a result, for the fourth quarter ending December 31, 2013, management currently expects GAAP earnings per diluted share to be in the range of $.90 to $1.00.
Conference Call Details
A conference call and simultaneous webcast to discuss third quarter 2013 financial results and business outlook will be held today, October 24, 2013, 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 (888) 267-2845 (U.S. and Canada) or (973) 413-6102 (International) approximately 10 minutes prior to the start time and use the conference entry code: 1799. Additionally, a live webcast of the call will be available on the Investor Information section of Reliance’s web site at www.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 1:30 p.m. Eastern Time until 11:59 p.m. Eastern Time on Thursday, November 7, 2013 by dialing (973) 528-0005 and entering the conference entry code: 1799. The webcast will remain posted on the Investor Information section of Reliance’s web site at www.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 ten 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 our business strategies and our expectations concerning future results of operations, margins, profitability, liquidity 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 undertakes no 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 our business can be found in our Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC.
RELIANCE STEEL & ALUMINUM CO. | ||||||||||||||||||||||||
SELECTED UNAUDITED FINANCIAL DATA | ||||||||||||||||||||||||
(in millions, except share and per share amounts) |
||||||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Income Statement Data: | ||||||||||||||||||||||||
Net sales | $ | 2,443.5 | $ | 2,055.3 | $ | 6,917.1 | $ | 6,553.3 | ||||||||||||||||
Gross profit1 | 643.0 | 535.3 | 1,793.4 | 1,682.5 | ||||||||||||||||||||
Operating income | 163.1 | 152.6 | 438.6 | 523.4 | ||||||||||||||||||||
Pre-tax income | 142.7 | 143.8 | 385.3 | 488.1 | ||||||||||||||||||||
Net income attributable to Reliance | 95.1 | 98.1 | 259.8 | 323.1 | ||||||||||||||||||||
Diluted earnings per share attributable to Reliance shareholders |
$ |
1.22 |
$ |
1.30 |
$ |
3.35 |
$ |
4.28 |
||||||||||||||||
Weighted average shares outstanding – diluted | 77,857,506 | 75,710,040 | 77,471,866 | 75,549,903 | ||||||||||||||||||||
Gross profit margin1 | 26.3 | % | 26.0 | % | 25.9 | % | 25.7 | % | ||||||||||||||||
Operating income margin | 6.7 | % | 7.4 | % | 6.3 | % | 8.0 | % | ||||||||||||||||
Pre-tax income margin | 5.8 | % | 7.0 | % | 5.6 | % | 7.4 | % | ||||||||||||||||
Net income margin - Reliance | 3.9 | % | 4.8 | % | 3.8 | % | 4.9 | % | ||||||||||||||||
Cash dividends per share | $ | 0.33 | $ | 0.25 | $ | 0.93 | $ | 0.55 | ||||||||||||||||
September 30, | December 31, | |||||||||||
2013 | 2012* | |||||||||||
Balance Sheet and Other Data: | ||||||||||||
Current assets | $ | 2,869.1 | $ | 2,277.4 | ||||||||
Working capital | 2,155.4 | 1,699.2 | ||||||||||
Property, plant and equipment, net | 1,585.2 | 1,240.7 | ||||||||||
Total assets | 7,492.3 | 5,857.7 | ||||||||||
Current liabilities | 713.7 | 578.2 | ||||||||||
Long-term debt | 2,112.9 | 1,123.8 | ||||||||||
Total Reliance shareholders’ equity | 3,821.2 | 3,558.4 | ||||||||||
Capital expenditures (year-to-date) | 118.7 | 214.0 | ||||||||||
Cash provided by operations (year-to-date) | 513.0 | 601.9 | ||||||||||
Net debt-to-total capital2 | 34.9 | % | 23.8 | % | ||||||||
Return on Reliance shareholders’ equity3 | 9.6 | % | 12.8 | % | ||||||||
Current ratio | 4.0 | 3.9 | ||||||||||
Book value per share4 | $ | 49.43 | $ | 46.82 | ||||||||
* 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 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). |
3 Calculations are based on the latest twelve months net income attributable to Reliance and beginning total Reliance shareholders’ equity. |
4 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 | ||||||||||||
September 30, | December 31, | |||||||||||
2013 | 2012* | |||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 104.9 | $ | 97.6 | ||||||||
Accounts receivable, less allowance for doubtful accounts of |
1,073.5 |
807.7 |
||||||||||
Inventories | 1,582.9 | 1,272.3 | ||||||||||
Prepaid expenses and other current assets | 50.0 | 40.9 | ||||||||||
Income taxes receivable | 22.0 | 28.4 | ||||||||||
Deferred income taxes | 35.8 | 30.5 | ||||||||||
Total current assets | 2,869.1 | 2,277.4 | ||||||||||
Property, plant and equipment: | ||||||||||||
Land | 186.1 | 155.6 | ||||||||||
Buildings | 911.4 | 725.1 | ||||||||||
Machinery and equipment | 1,330.2 | 1,124.7 | ||||||||||
Accumulated depreciation | (842.5 | ) | (764.7 | ) | ||||||||
1,585.2 | 1,240.7 | |||||||||||
Goodwill | 1,710.0 | 1,314.6 | ||||||||||
Intangible assets, net | 1,241.3 | 936.5 | ||||||||||
Cash surrender value of life insurance policies, net | 36.7 | 45.2 | ||||||||||
Investments in unconsolidated entities | 16.4 | 15.5 | ||||||||||
Other assets | 33.6 | 27.8 | ||||||||||
Total assets | $ | 7,492.3 | $ | 5,857.7 | ||||||||
LIABILITIES AND EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 406.6 | $ | 255.6 | ||||||||
Accrued expenses | 110.4 | 87.4 | ||||||||||
Accrued compensation and retirement costs | 112.8 | 112.8 | ||||||||||
Accrued insurance costs | 44.6 | 38.8 | ||||||||||
Current maturities of long-term debt and short-term borrowings | 39.3 | 83.6 | ||||||||||
Total current liabilities | 713.7 | 578.2 | ||||||||||
Long-term debt | 2,112.9 | 1,123.8 | ||||||||||
Long-term retirement costs | 102.0 | 94.9 | ||||||||||
Other long-term liabilities | 34.8 | 27.1 | ||||||||||
Deferred income taxes | 697.9 | 466.3 | ||||||||||
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 – 77,326,460 at September 30, 2013 |
|
|||||||||||
and 76,042,546 at December 31, 2012, stated capital | 805.0 | 722.2 | ||||||||||
Retained earnings | 3,026.4 | 2,837.7 | ||||||||||
Accumulated other comprehensive loss | (10.2 | ) | (1.5 | ) | ||||||||
Total Reliance shareholders’ equity | 3,821.2 | 3,558.4 | ||||||||||
Noncontrolling interests | 9.8 | 9.0 | ||||||||||
Total equity | 3,831.0 | 3,567.4 | ||||||||||
Total liabilities and equity | $ | 7,492.3 | $ | 5,857.7 | ||||||||
* Amounts were derived from audited financial statements. |
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RELIANCE STEEL & ALUMINUM CO. | ||||||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Net sales | $ | 2,443.5 | $ | 2,055.3 | $ | 6,917.1 | $ | 6,553.3 | ||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Cost of sales (exclusive of depreciation | ||||||||||||||||||||||||
and amortization shown below) | 1,800.5 | 1,520.0 | 5,123.7 | 4,870.8 | ||||||||||||||||||||
Warehouse, delivery, selling, general and administrative |
430.0 |
345.4 |
1,213.7 |
1,049.8 |
||||||||||||||||||||
Depreciation and amortization | 49.9 | 37.3 | 141.1 | 109.3 | ||||||||||||||||||||
2,280.4 | 1,902.7 | 6,478.5 | 6,029.9 | |||||||||||||||||||||
Operating income | 163.1 | 152.6 | 438.6 | 523.4 | ||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest | (21.6 | ) | (14.7 | ) | (56.8 | ) | (44.2 | ) | ||||||||||||||||
Other income, net | 1.2 | 5.9 | 3.5 | 8.9 | ||||||||||||||||||||
Income before income taxes | 142.7 | 143.8 | 385.3 | 488.1 | ||||||||||||||||||||
Income tax provision | 46.7 | 44.4 | 122.9 | 160.6 | ||||||||||||||||||||
Net income | 96.0 | 99.4 | 262.4 | 327.5 | ||||||||||||||||||||
Less: Net income attributable to noncontrolling interests |
0.9 |
1.3 |
2.6 |
4.4 |
||||||||||||||||||||
Net income attributable to Reliance | $ | 95.1 | $ | 98.1 | $ | 259.8 | $ | 323.1 | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||
Diluted earnings per common share attributable to Reliance shareholders |
$ |
1.22 |
$ |
1.30 |
$ |
3.35 |
$ |
4.28 |
||||||||||||||||
Basic earnings per common share attributable to Reliance shareholders |
$ |
1.23 |
$ |
1.30 |
$ |
3.39 |
$ |
4.30 |
||||||||||||||||
Cash dividends per share | $ | 0.33 | $ | 0.25 | $ | 0.93 | $ | 0.55 | ||||||||||||||||
RELIANCE STEEL & ALUMINUM CO. | ||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(in millions) | ||||||||||||
Nine Months Ended | ||||||||||||
September 30, | ||||||||||||
2013 |
2012 |
|||||||||||
Operating activities: | ||||||||||||
Net income | $ | 262.4 | $ | 327.5 | ||||||||
Adjustments to reconcile net income to net cash provided by | ||||||||||||
operating activities: | ||||||||||||
Depreciation and amortization expense | 141.1 | 109.3 | ||||||||||
Deferred income tax provision (benefit) | 1.2 | (2.8 | ) | |||||||||
Loss (gain) on sales of property, plant and equipment | 0.8 | (3.1 | ) | |||||||||
Equity in earnings of unconsolidated entities | (1.6 | ) | (1.6 | ) | ||||||||
Dividends received from unconsolidated entities | 0.6 | 1.0 | ||||||||||
Share-based compensation expense | 21.3 | 17.2 | ||||||||||
Other | (0.4 | ) | 2.1 | |||||||||
Changes in operating assets and liabilities (excluding effect of businesses acquired): | ||||||||||||
Accounts receivable | (66.8 | ) | (60.6 | ) | ||||||||
Inventories | 62.3 | (136.9 | ) | |||||||||
Prepaid expenses and other assets | 4.0 | (16.3 | ) | |||||||||
Accounts payable and other liabilities | 88.1 | 33.0 | ||||||||||
Net cash provided by operating activities | 513.0 | 268.8 | ||||||||||
Investing activities: | ||||||||||||
Purchases of property, plant and equipment | (118.7 | ) | (137.4 | ) | ||||||||
Acquisitions, net of cash acquired | (796.8 | ) | (83.0 | ) | ||||||||
Proceeds from sales of property, plant and equipment | 9.4 | 6.7 | ||||||||||
Net proceeds from redemptions of life insurance policies | 6.9 | 2.8 | ||||||||||
Other | 0.8 | (2.9 | ) | |||||||||
Net cash used in investing activities | (898.4 | ) | (213.8 | ) | ||||||||
Financing activities: | ||||||||||||
Net short-term debt repayments | (470.0 | ) | (28.1 | ) | ||||||||
Proceeds from long-term debt borrowings | 2,297.9 | 531.0 | ||||||||||
Principal payments on long-term debt | (1,414.0 | ) | (497.9 | ) | ||||||||
Debt issuance costs | (10.3 | ) | -- | |||||||||
Payments to noncontrolling interest holders | (1.8 | ) | (2.1 | ) | ||||||||
Dividends paid | (71.4 | ) | (41.3 | ) | ||||||||
Tax benefit from share-based compensation | 0.9 | -- | ||||||||||
Exercise of stock options | 61.5 | 20.6 | ||||||||||
Net cash provided by (used in) financing activities | 392.8 | (17.8 | ) | |||||||||
Effect of exchange rate changes on cash | (0.1 | ) | (1.2 | ) | ||||||||
Increase in cash and cash equivalents | 7.3 | 36.0 | ||||||||||
Cash and cash equivalents at beginning of year | 97.6 | 84.6 | ||||||||||
Cash and cash equivalents at end of period | $ | 104.9 | $ | 120.6 | ||||||||
Supplemental cash flow information: | ||||||||||||
Interest paid during the period | $ | 38.4 | $ | 35.6 | ||||||||
Income taxes paid during the period | $ | 115.2 | $ | 218.6 | ||||||||
Non-cash investing and financing activities: | ||||||||||||
Debt assumed in connection with acquisitions | $ | 529.9 | $ | 29.5 | ||||||||
RELIANCE STEEL & ALUMINUM CO. | ||||||||||||||||||||||||||||||||
NON-GAAP EARNINGS RECONCILIATION | ||||||||||||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||||||||||
Net Income (loss) | Diluted EPS | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||
September 30, 2013 |
June 30, 2013 |
September 30, 2012 | September 30, 2013 |
June 30, 2013 |
September 30, 2012 | |||||||||||||||||||||||||||
Net income attributable to Reliance | $ | 95.1 | $ | 81.0 | $ | 98.1 | $ | 1.22 | $ | 1.05 | $ | 1.30 | ||||||||||||||||||||
Acquisition and related costs | — | 9.3 | — | — | 0.12 | — | ||||||||||||||||||||||||||
Restructuring and other charges | — | 1.0 | — | — | 0.01 | — | ||||||||||||||||||||||||||
Income tax benefit, related to above items | — | (3.0 | ) | — | — | (0.04 | ) |
— |
||||||||||||||||||||||||
Net income attributable to Reliance, adjusted | $ | 95.1 | $ | 88.3 | $ | 98.1 | $ | 1.22 | $ | 1.14 | $ | 1.30 | ||||||||||||||||||||
Net Income (loss) | Diluted EPS | ||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Net income attributable to Reliance | $ | 259.8 | $ | 323.1 | $ | 3.35 | $ | 4.28 | |||||||||||||||
Acquisition and related costs | 12.4 | — | 0.16 | — | |||||||||||||||||||
Restructuring and other charges | 1.0 | — | 0.01 | — | |||||||||||||||||||
Income tax benefit, related to above items | (3.0 | ) | — | (0.04 | ) | — | |||||||||||||||||
Net income attributable to Reliance, adjusted | $ | 270.2 | $ | 323.1 | $ | 3.48 | $ | 4.28 | |||||||||||||||
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. The significant costs we have incurred relating to our recent acquisition of Metals USA and restructuring activity make comparisons of our operating results difficult to discern using GAAP measures.
CONTACT:
Reliance Steel & Aluminum Co.
Brenda Miyamoto,
Investor Relations
213-576-2428
investor@rsac.com
or
Addo
Communications
310-829-5400