July 28, 2022 6:50 AM EDT | Source: Reliance Steel & Aluminum Co. Source: Reliance Steel & Aluminum Co. Reliance Steel & Aluminum Co. Reliance Steel & Aluminum Co. Источник: Reliance Steel & Aluminium Co. Source: Reliance Steel & Aluminum Co. Reliance Steel & Aluminium Co. Reliance Steel & Aluminum Co.资料来源：Reliance Steel & Aluminium Co.资料来源：Reliance Steel & Aluminum Co. Reliance Steel & Aluminium Co. Reliance Steel & Aluminum Co. Источник: Reliance Steel & Aluminium Co. Source: Reliance Steel & Aluminum Co. Reliance Steel & Aluminium Co. Reliance Steel & Aluminum Co.
- Record quarterly revenue of $4.68 billion – Record quarterly gross of $1.5 billion driven by a strong gross margin of 31.9% – Record quarterly profit before tax of $762.6 million and 16.3% margin – Record quarterly earnings per share of $9.15 – Repurchased approximately 1.1 million shares of common stock for a total of $193.9 million – Complementing the existing share repurchase program to $1 billion.
ЛОС-АНДЖЕЛЕС, 28 июля 2022 г. (GLOBE NEWSWIRE) — Компания Reliance Steel & Aluminium Co. LOS ANGELES, July 28, 2022 (GLOBE NEWSWIRE) – Reliance Steel & Aluminum Co. (NYSE: RS) today released financial results for the second quarter ended June 30, 2022.
Management Comments “Reliance delivered strong second-quarter results with record financial performance and strong operating performance,” said Reliance CEO Jim Hoffman. “We delivered a record quarterly net sales of $4.68 billion, coupled with a gross margin of 31.9% and continued strong operating leverage, a record quarterly earnings per share of $9.15 and solid cash flow, which fueled our growth and shareholder return priorities. demand in most of the end markets we serve, and the continued price levels of most of the products we sell.”
Mr. Hoffman continued: “In a challenging macro environment supported by diverse products, end markets and geography, as well as continued support from our domestic suppliers and strong customer relationships, our model continues to demonstrate resilience. Our extensive geography of approximately 315 service centers strategically located close to our end customers gives us a unique competitive advantage by allowing us to quickly complete orders, approximately 40% of orders are delivered within 24 hours. increase in transport costs in the current inflationary environment”.
Mr. Hoffman concluded: “Going forward, we will continue to focus on performance and continuous improvement despite macroeconomic challenges including inflation, recession fears, and labor and supply-side pressures. As we begin to respond to a general price decline environment for metals, the core principles of our model, including our value-added processing capabilities; diversity of products, end markets and geographic diversity; lower order volumes and fast lead times supported by our own fleet of trucks, will combine to contribute to the stability of our selling prices and profits.In addition, our customers tend to draw down inventories when metal prices fall and increase their dependence on us to supply the metal they need faster and more frequently, as well as to meet their need for processing with added value.In conclusion, I want to repeat We know that Reliance is still well positioned to navigate difficult conditions, as we have done successfully in the past, and as infrastructure needs continue to grow, we are ready to help America recover.”
End Market Surveys Reliance provides a wide range of processing products and services for a wide variety of end markets, usually in small quantities when needed. As demand remained stable throughout the quarter, the company’s Q2 2022 sales were up 2.7% QoQ, beating Reliance’s forecast of growth to 2.0%.
Demand for non-residential buildings, including infrastructure, in the largest final property market, Reliance, rose steadily in the second quarter. Reliance remains cautiously optimistic that demand for non-residential construction will remain strong in the key sectors in which the company operates in the third quarter of 2022.
Demand for Reliance’s toll processing services for the automotive market remained solid in the second quarter despite ongoing supply chain challenges, including the continued impact of the global microchip shortage on new vehicle production levels. Reliance is cautiously optimistic that demand for its toll processing services will remain stable through the third quarter of 2022.
Demand in the broader manufacturing sector that Reliance serves, including industrial equipment and consumer products, declined compared to the first quarter of 2022. However, demand for industrial equipment has improved and remained at a healthy level compared to the same period last year. Underlying heavy industry demand was mixed in the second quarter, with construction equipment demand continuing to grow at a healthy pace. Reliance expects the usual seasonal slowdown in demand for its products in the manufacturing sector in the third quarter of 2022.
Semiconductor demand remained strong in the second quarter and continued to be one of Reliance’s strongest end markets, and this trend is expected to continue into the third quarter of 2022. Reliance will continue to invest in improving its ability to serve the significant expansion of semiconductor manufacturing in the United States.
Demand for the commercial aerospace sector continued to recover in the second quarter. Reliance is cautiously optimistic that demand for the commercial aerospace industry will continue to grow steadily in the third quarter of 2022 as construction picks up. Demand in the military, defense and space segments of Reliance’s aerospace business remains strong and a large backlog is expected to continue through the third quarter of 2022.
Demand in the energy market (oil and gas) continued to strengthen in the second quarter due to increased drilling due to higher oil and gas prices. Reliance is cautiously optimistic that demand will continue to recover in the third quarter of 2022.
Balance Sheet & Cash FlowAt June 30, 2022, Reliance had cash and cash equivalents of $504.5 million. Balance Sheet & Cash FlowAt June 30, 2022, Reliance had cash and cash equivalents of $504.5 million. Balance Sheet and Cash Flow As of June 30, 2022, Reliance had $504.5 million in cash and cash equivalents. As of June 30, 2022, Reliance had $504.5 million in cash and cash equivalents in its balance sheet and cash flows. As of June 30, 2022, Reliance had a total outstanding debt of $1.66 billion, a net debt to EBITDA ratio of 0.4 times, and Reliance had no outstanding loans from a $1.5 billion revolving credit facility. Despite more than $400 million in additional working capital requirements, Reliance generated $270.2 million in operating cash flow in the second quarter of 2022 thanks to the company’s record earnings.
Shareholder Return Event On July 26, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.875 per ordinary share, payable on September 2, 2022 to shareholders registered as of August 19, 2022. Reliance paid regular quarterly cash dividends for 63 consecutive years without reducing its holdings or suspending trading, and has increased its dividend 29 times since its IPO in 1994.
In the second quarter of 2022, the company repurchased about 1.1 million shares of common stock at an average price of $178.61 per share for a total of $193.9 million. Reliance bought back $24 million of common stock in the second quarter of 2021. Since the end of the current quarter, as of July 26, 2022, Reliance has repurchased approximately 582,000 shares of common stock at an average price of $171.94 per share for a total of $100 million, based on 10 shares approved on July 20, 2021. the company’s total buyouts reached $598.4 million at an average cost of $163.55 per share.
On July 26, 2022, the Board of Directors approved an amendment to the Reliance share buyback program, updating the buyback authorization to $1 billion with no set expiration date. The company expects to maintain its flexible capital allocation approach with a focus on growth and shareholder returns, including an opportunistic buyback of its common shares.
Corporate Development On May 19, 2022, Reliance announced the retirement of Michael P. Shanley effective December 2022, and in accordance with the Board’s strategic executive succession plan, Stephen P. Koch has been named Executive Vice President and Chief Operating Officer, and Michael P. R. Hines to Senior Vice President of Operations, each effective July 1, 2022. Effective July 1, 2022, Mr. Shanley moved from Senior Vice President of Operations to Special Counsel, facilitating the transition of his duties and support for other special projects.
Business Outlook Reliance remains cautiously optimistic about business conditions in 2022, expecting strong underlying demand trends to continue across the vast majority of the major end markets it serves. The company expects shipments to be impacted by normal seasonal patterns, including lower shipments due to planned customer shutdowns and holiday events. As a result, the company estimates that sales in tonnes in the third quarter of 2022 will be 3-5% lower than in the second quarter of 2022. In addition, Reliance expects its average realized price per tonne in the third quarter of 2022 to decrease by 5-7% compared to the second quarter of 2022 due to lower prices for many of its products, especially carbon and stainless steel. and rolled aluminum flats, but this was partly offset by higher demand and prices for higher value products sold to aerospace, power and semiconductor end markets. Based on these expectations, Reliance estimates third-quarter 2022 non-GAAP diluted earnings per share in the range of $6.00 to $6.20.
Conference call details Today, July 28, 2022, at 11:00 AM ET / 8:00 AM PT, a conference call and web simulcast will be held to discuss Reliance’s 2022 Q2 financial results and business outlook. To listen to the live broadcast by phone, dial (877) 407-0792 (for the US and Canada) or (201) 689-8263 (for international calls) approximately 10 minutes before the start and enter the conference number: 13730870. The conference will also be broadcast on broadcast live over the Internet in the investor section of the company’s website, Investor.rsac.com.
For those unable to attend the live broadcast, a conference call replay (US and Canada) is also available at (844) 512-2921 (2:00 pm ET today to 11:59 pm ET, August 11, 2022) .). ) or (412) 317-6671 (international) and enter conference ID: 13730870. The webcast will be available in the Investors section of the Reliance website (Investor.rsac.com) for 90 days.
About Reliance Steel & Aluminum Co.Founded in 1939, Reliance Steel & Aluminum Co. About Reliance Steel & Aluminum Co.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. О Reliance Steel & Aluminium Co. About Reliance Steel & Aluminum Co. Основанная в 1939 году компания Reliance Steel & Aluminium Co. Founded in 1939, Reliance Steel & Aluminum Co. (NYSE: RS) is a leading global provider of diversified metal solutions and the largest metal service center in North America.关于Reliance Steel & Aluminium Co. Reliance Steel & Aluminum Co. Reliance Steel & Aluminium Co. Reliance Steel & Aluminum Co. (NYSE: RS) О компании Reliance Steel & Aluminium Co. About Reliance Steel & Aluminum Co. Основанная в 1939 году компания Reliance Steel & Aluminium Co. Founded in 1939, Reliance Steel & Aluminum Co. (NYSE: RS) is the world’s leading provider of diverse metalworking solutions and the largest metalworking service center in North America. Through a network of approximately 315 offices in 40 states and 12 countries outside of the US, Reliance provides value-added metalworking services and distributes a full range of over 100,000 metal products to over 125,000 customers across a variety of industries. Reliance focuses on small orders, providing fast turnaround and additional processing services. In 2021, Reliance has an average order size of $3,050, with about 50% of orders including value-added processing and about 40% of orders delivered within 24 hours. Reliance Steel & Aluminum Co.’s press releases and additional information are available on the Company’s website at rsac.com. Reliance Steel & Aluminum Co.’s press releases and additional information are available on the Company’s website at rsac.com. Пресс-релизы Reliance Steel & Aluminium Co. Press Releases Reliance Steel & Aluminum Co. and additional information are available on the company’s website at rsac.com. Reliance Steel & Aluminium Co. Reliance Steel & Aluminum Co.的新闻稿和其他信息可在公司网站rsac.com 上获取。 Пресс-релизы и другая информация Reliance Steel & Aluminium Co. Press releases and other information Reliance Steel & Aluminum Co. available on the company’s website at rsac.com.
Forward-Looking Statements Certain statements contained in this press release 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 industries, end markets, business strategies, acquisitions, and expectations regarding the company’s future growth and profitability, its ability to generate industry-leading shareholder returns, and future demand and prices for metals, and company’s operating performance, profit margin, profitability, taxes, liquidity, litigation and capital resources. In some cases, you can identify perspective with terms such as “may”, “will”, “should”, “may”, “will”, “expect”, “plan”, “foresee”, “believe” and etc. , sexual statement. “estimate”, “predict”, “potential”, “provisionally”, “scale”, “intend”, and “continue”, the negative forms of these terms, and similar expressions.
These forward-looking statements are based on management’s estimates, forecasts and assumptions to date, which may not be accurate. Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future results. Due to various important factors, including but not limited to actions taken by Reliance and events beyond its control, including but not limited to the impact of expected acquisition benefits, labor restrictions and supply chain disruptions may not materialize. Reliance anticipates that ongoing pandemics and changing global and US political and economic conditions, such as inflation and recession, are affecting the company, its customers and suppliers, and demand for the company’s products and services. The extent to which the ongoing COVID-19 pandemic could adversely affect the company’s operations will depend on the highly uncertain and unpredictable future events, including the duration of the pandemic, the re-emergence or mutation of the virus, and the measures taken to combat COVID-19. the spread of -19 or the impact of its treatment, including the speed and effectiveness of vaccination efforts, and the direct and indirect impact of the virus on global economic conditions and the health of the US economy. Deteriorating economic conditions due to inflation, recession, COVID-19, conflict between Russia and Ukraine, or other reasons may lead to a further or prolonged decrease in demand for the company’s products and services and adversely affect its business, and may also affect financial markets and corporate loan markets, thereby adversely affecting the Company’s access to funding or any terms of funding. The Company cannot currently predict the full impact of inflation, the economic downturn, the COVID-19 pandemic or the Russian-Ukrainian conflict and related economic consequences, but they could materially and adversely affect the Company’s business, financial condition, results of operations and cash flows. . .
The statements contained in this press release are current only as of the date of publication, and Reliance undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or for any other reason. than may be required by law, except for. Significant risks and uncertainties associated with Reliance’s operations are set out in “Paragraph 1A. Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and other documents that Reliance maintains or makes available to the Securities and Exchange Commission” “Risk Factors” .