April 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 sales of $4.49 billion, sales in tons up 10.7% compared to Q4 2021 – Record quarterly gross of $1.39 billion driven by strong gross margin of 30 .9% – Record quarterly pre-tax revenue of $697.2 million and 15.5% margin – record quarterly earnings Earnings per share of $8.33, non-GAAP earnings per share of 8.42 $404 million of record first-quarter operating cash flow.
ЛОС-АНДЖЕЛЕС, 28 апреля 2022 г. (GLOBE NEWSWIRE) — Компания Reliance Steel & Aluminium Co. LOS ANGELES, April 28, 2022 (GLOBE NEWSWIRE) – Reliance Steel & Aluminum Co. (NYSE: RS) today released financial results for the first quarter ended March 31, 2022.
“The excellent operational performance of our family of companies in the first quarter continued our record performance in 2021 and once again demonstrated the durability and effectiveness of our business model,” said Jim Hoffman, CEO of Reliance. “Despite ongoing macroeconomic challenges, our results were supported by positive underlying trends, including continued strong demand and increased monthly shipments during the quarter, as well as continued growth in metals prices. Our results also benefited from continued growth in metals prices. Our strategic diversification into products, end markets and geographies, as well as strong ongoing support from local suppliers and valuable relationships with repeat customers. These factors together contributed to another record quarterly net sales of $4.49 billion.”
Mr. Hoffman continued, “Our strong revenue combined with a solid gross margin of 30.9% resulted in a record quarterly gross margin of $1.39 billion. Although compared to the fourth quarter of 2021, as inventory values ​​were close to replacement cost, we experienced some reduction in gross margin, but key elements of our model such as small orders, fast turnaround times, strong room for growth, and careful cost management resulted in record earnings per share of $8.33 in the first quarter of 2022.”
Mr. Hoffman concluded: “Improving profitability has helped us generate $404 million in operating cash flow, our highest in Q1 history. Strong cash generation drives our capital allocation strategy, which remains focused on We recently increased our 2022 capital expenditure budget from $350M to $455M, primarily to take advantage of new opportunities to support the US semiconductor industry, as well as some other organic growth opportunities to meet the growing needs of our customers.”
End Market Reviews Reliance serves a variety of end markets and offers a wide range of processing products and services, usually in small quantities when required. The company’s first-quarter 2022 sales grew 10.7% quarter-on-quarter, beating Reliance’s forecast by 5-7% due to a gradual increase in daily shipment volumes. Reliance believes first quarter shipment volumes reflect strong underlying demand in most of the end markets it serves and remains cautiously optimistic that shipment volumes will continue to improve throughout 2022.
Demand for non-residential buildings, including infrastructure, in the largest final property market, Reliance, improved in the first quarter after a strong March. Reliance remains cautiously optimistic that demand for non-residential construction will continue to grow in 2022 in key areas in which the company is involved, thanks to strong booking trends.
Demand for Reliance’s toll processing services in the automotive market remained solid in the first quarter despite supply chain challenges, including the continued impact of the global microchip shortage on production levels. Reliance is cautiously optimistic that demand for its toll processing services will remain stable throughout 2022.
Underlying demand for agricultural and construction machinery in the heavy industry continued to improve from high levels, with Reliance shipments up significantly compared to the fourth quarter of 2021. Similarly, demand in the broader manufacturing sector, including industrial equipment and consumer goods, continued to grow. Reliance expects positive underlying demand trends in these industries to continue through much of 2022.
Semiconductor demand remained strong in the first quarter and continues to be one of Reliance’s strongest end markets and is expected to continue through 2022. Therefore, Reliance will continue to invest in increasing its capacity in this area to enable a significant expansion of semiconductor manufacturing in the United States.
Demand for commercial aerospace services continued to grow in the first quarter compared to the first and fourth quarters of 2021, as increased activity led to a significant increase in shipments compared to the first and fourth quarters of 2021. Reliance is cautiously optimistic that commercial aerospace demand will grow steadily throughout 2022 as the pace of construction picks up. Demand in the military, defense and space segments of Reliance’s aerospace business remained stable with a large lag that is expected to continue throughout the year.
Demand in the energy (oil and gas) market continued to improve in the first quarter due to increased activity due to higher oil and gas prices. Reliance is cautiously optimistic that demand will continue to recover throughout 2022.
Balance Sheet & Cash FlowAt March 31, 2022, Reliance had cash and cash equivalents of $548.0 million, total debt outstanding of $1.66 billion and a net debt-to-EBITDA ratio of 0.4x, with no outstanding borrowings under its $1.5 billion revolving credit facility. Balance Sheet & Cash FlowAt March 31, 2022, Reliance had cash and cash equivalents of $548.0 million, total debt outstanding of $1.66 billion and a net debt-to-EBITDA ratio of 0.4x, with no outstanding borrowings under its $1.5 billion revolving credit facility . Balance Sheet and Cash Flow As of March 31, 2022, Reliance had cash and cash equivalents of $548.0 million, total outstanding debt of $1.66 billion and a net debt/EBITDA ratio of 0.4x, with there were no loans outstanding under the $1.5 billion revolving credit line. . Balance Sheet and Cash Flow As of March 31, 2022, Reliance had cash and cash equivalents of $548 million, total outstanding debt of $1.66 billion, and a net debt/EBITDA ratio of 0.4x based on its $1.5 billion base. borrowing under a revolving credit facility. Despite additional working capital requirements of more than $200 million, Reliance generated the highest cash flow of $404 million from operations in the first quarter of 2022, thanks to the company’s record earnings.
Shareholder return event On February 15, 2022, the company increased its regular quarterly dividend by 27.3% to $0.875 per common share. On April 26, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.875 per ordinary share, payable on June 10, 2022 to shareholders registered as of May 27, 2022. Reliance has paid 63 regular quarterly cash dividends since its IPO in 1994, without any cuts or suspensions in subsequent years, and increased its dividend 29 times.
During the first quarter of 2022, the company repurchased about 114,000 shares of common stock at an average price of $150.97 per share for a total of $17.1 million. As of March 31, 2022, $695.5 million remained available for redemption under Reliance’s share buyback authorization. Reliance did not repurchase common stock in the first quarter of 2021.
Business Outlook Reliance remains optimistic about business conditions in 2022, expecting strong underlying demand trends to continue across the vast majority of the major end markets it serves. Thus, the company estimates that sales in the second quarter of 2022 will not change at 2.0% compared to the first quarter of 2022. In addition, Reliance expects its ASP per ton in the second quarter of 2022 to grow by 2.0% compared to the first quarter of 2022, driven by the company’s diversified product portfolio and continued strong demand and prices. Based on these expectations, Reliance estimates non-GAAP earnings per diluted share in the second quarter of 2022 at $9.00 to $9.10.
Conference Call Details Today, April 28, 2022, at 11:00 AM ET / 8:00 AM PT, there will be a conference call and webcast simulcast to discuss Reliance’s 2022 Q1 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 use the conference ID: 13728592. The conference will also be broadcast on broadcast live over the Internet in the investor section of the company’s website, Investor.rsac.com.
Those unable to attend the live stream can replay the conference call by calling (844) 512-2921 (2:00 pm ET today to 11:59 pm ET, May 12, 2022). United States and Canada) or (412) 317-6671 (international) and enter conference ID: 13728592. The webcast will continue to be hosted in the Investors section of the Reliance website (Investor.rsac.com) for 90 days.
About Reliance Steel & Aluminum Co.Founded in 1939 and headquartered in Los Angeles, California, Reliance Steel & Aluminum Co. About Reliance Steel & Aluminum Co.Founded in 1939 and headquartered in Los Angeles, California, 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 со штаб-квартирой в Лос-Анджелесе, штат Калифорния, компания Reliance Steel & Aluminium Co. Founded in 1939 and headquartered in Los Angeles, California, 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.（纽约证券交易所代码：RS）成立于1939 年，总部位于加利福尼亚州洛杉矶，是全球领先的多元化金属解决方案提供商和北美最大的金属服务中心公司。 Reliance Steel & Aluminium Co.（纽约证券交易所代码：RS）成立于1939 年，总部位于加利福尼亚州洛杉矶，是全球领先的多元化金属解决方案提供商和北美最大的金属服务中心公司。 О Reliance Steel & Aluminium Co. About Reliance Steel & Aluminum Co. Основанная в 1939 году со штаб-квартирой в Лос-Анджелесе, штат Калифорния, компания Reliance Steel & Aluminium Co. Founded in 1939 and headquartered in Los Angeles, California, Reliance Steel & Aluminum Co. (NYSE: RS) is the world’s leading provider of diversified metal solutions and North America’s largest metal services provider Center Company. 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 line 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’s average order size is $3,050, with about 50% of orders including value-added processing and about 40% of orders delivered within 24 hours.
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 www.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, as well as the ability to generate industry-leading returns for shareholders, and the future. demand and prices for metals, as well as the company’s operating performance, profit margins, 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, expected benefits from Reliance acquisitions that may not materialize as expected, the impact of workforce constraints, and supply disruptions in the chain, the ongoing pandemic and changes in political and economic conditions in the world and the United States, which may have a significant impact on the Company, its customers and suppliers, as well as the 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 COVID-19, the conflict between Russia and Ukraine or for other reasons may lead to a further or prolonged decrease in demand for the company’s products and services, adversely affect its business, and may also affect financial markets, which may affect a company’s access to financing or any terms of financing may adversely affect the credit market for the business. The Company cannot currently predict the full impact of the COVID-19 pandemic or the Russian-Ukrainian conflict and the associated 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 their date of publication, and Reliance undertakes no obligation to publicly update or revise any forward-looking statements, 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” .