RELIANCE, INC. 
LOS ANGELES, July 23, 2015 /PRNewswire/ -- Reliance Steel & Aluminum Co. (NYSE: RS) today reported its financial results for the second quarter ended June 30, 2015.
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Second Quarter 2015 Financial Highlights
-- Sales were $2.42 billion, down 7.4% from $2.62 billion in the second
quarter of 2014 and down 7.3% from $2.61 billion in the first quarter of
2015.
-- Tons sold were down 2.1% from the second quarter of 2014 and down 2.4%
from the first quarter of 2015, with the average selling price per ton
sold down 6.0% from the second quarter of 2014 and down 5.2% from the
first quarter of 2015.
-- Net income attributable to Reliance was $90.2 million, down 6.5% from
$96.5 million in the second quarter of 2014 and down 11.0% from $101.3
million in the first quarter of 2015.
-- Earnings per diluted share were $1.20, down 1.6% from $1.22 in the
second quarter of 2014 and down 7.7% from $1.30 in the first quarter of
2015.
-- Non-GAAP earnings per diluted share were $1.21, down 6.9% from $1.30 in
both the second quarter of 2014 and the first quarter of 2015.
-- A pre-tax LIFO credit, or income, of $32.5 million, is included in cost
of sales compared to a pre-tax LIFO charge, or expense, of $5.0 million
in the second quarter of 2014 and a credit of $7.5 million in the first
quarter of 2015.
-- The effective tax rate was 32.6%, compared to 36.6% in the second
quarter of 2014 and 31.7% in the first quarter of 2015.
-- Cash flow from operations was $292.5 million, up from $40.7 million in
the second quarter of 2014, and net debt-to-total capital was 33.9% at
June 30, 2015.
-- Reliance repurchased $200.0 million of its common stock, or 4.4% of
December 31, 2014 shares outstanding, in the first half of 2015. The
Company repurchased an additional $61.5 million of shares in July 2015,
to-date.
-- A quarterly cash dividend of $0.40 per share was declared on July 21,
2015 for shareholders of record as of August 14, 2015 and will be
payable on September 11, 2015.
Management Commentary
"I am extremely pleased with our operational performance in the second quarter of 2015, which is a testament to the quality of our management in the field as well as to our business model," said Gregg Mollins, President and Chief Executive Officer of Reliance. "Despite ongoing industry headwinds that further pressured metals pricing in the 2015 second quarter, we were able to increase our FIFO gross profit margin to 25.7%, up from our strong 2015 first quarter level of 25.4%. We believe our long-standing practice of focusing on small, quick turnaround orders, our focus on inventory turnover and our increased investments which provide higher levels of value-added processing to our customers, has allowed us to experience this margin consistency in a difficult business environment. We believe that customer demand is relatively strong and will continue to slowly improve, even though our second quarter demand levels were somewhat lower than we had anticipated. Currently, we see ongoing strength and opportunities for growth in the aerospace end-market and through our toll processing operations related to the automotive market. Although still below peak demand levels, we also continue to be encouraged by momentum in our non-residential construction businesses."
Mr. Mollins continued, "Pricing for all commodity types remained weak primarily due to the historically high levels of imports in the marketplace, resulting in a 5.2% decline in our average selling price per ton sold compared to the prior quarter. Although price changes impact our earnings levels, we believe our disciplined focus on managing all controllable aspects of the business continues to mitigate the negative impact from the difficult market conditions we are currently experiencing. We reduced our FIFO inventory by $163.0 million during the second quarter of 2015, a key area of focus for Reliance. Using our tons on hand at June 30, 2015, our inventory turnover rate was 4.6 times based on first half 2015 shipment volumes, compared to 4.3 times in the prior quarter, approaching our goal of 4.75 turns. This contributed to significant cash flow generation that we were able to use for growth initiatives, shareholder returns and debt reduction."
Second Quarter 2015 Business Metrics
------------------------------------
(tons in thousands; percentage change)
-------------------------------------
Q2 Q1 Sequential Q2 Year-Over-
2015 2015 Quarter 2014 Year Change
Change
--- ---
Tons sold 1,508.2 1,544.5 (2.4%) 1,539.8 (2.1%)
--------- ------- ------- ----- ------- -----
Tons sold
(same-
store) 1,497.4 1,531.2 (2.2%) 1,539.8 (2.8%)
------- ------- ----- ------- -----
Average
selling
price per
ton sold $1,600 $1,688 (5.2%) $1,703 (6.0%)
---------- ------ ------ ----- ------ -----
Average
selling
price per
ton sold
(same-
store) $1,557 $1,644 (5.3%) $1,703 (8.6%)
---------- ------ ------ ----- ------ -----
Second Quarter 2015 Major Commodity Metrics
Tons Sold Average Selling Price per
(tons in thousands; percentage change) Ton Sold (percentage change)
------------------------------------- ---------------------------
Q2 2015 Q1 2015 Sequential Q2 2014 Year-Over- Sequential Year-Over-
Year Change Year Change
Tons Sold Tons Sold Quarter Tons Sold Quarter
Change Change
------ ------
Carbon steel 1,231.4 1,256.4 (2.0%) 1,265.5 (2.7%) (7.0%) (8.9%)
------------ ------- ------- ----- ------- ----- ----- -----
Aluminum 89.6 86.3 3.8% 78.7 13.9% (1.2%) 6.2%
-------- ---- ---- --- ---- ---- ----- ---
Stainless steel 78.3 77.3 1.3% 81.2 (3.6%) (6.9%) (5.1%)
--------------- ---- ---- --- ---- ----- ----- -----
Alloy 55.3 71.8 (23.0%) 76.6 (27.8%) (1.9%) (5.9%)
----- ---- ---- ------ ---- ------ ----- -----
Sales ($ in millions; percentage change)
---------------------------------------
Q2 2015 Sales Q1 2015 Sales Sequential Q2 2014 Sales Year-Over-
Quarter Year Change
Change
------
Carbon steel $1,299.4 $1,424.2 (8.8%) $1,465.5 (11.3%)
------------ -------- -------- ----- -------- ------
Aluminum $475.3 $463.7 2.5% $392.8 21.0%
-------- ------ ------ --- ------ ----
Stainless steel $355.3 $376.8 (5.7%) $388.0 (8.4%)
--------------- ------ ------ ----- ------ -----
Alloy $155.3 $205.6 (24.5%) $228.9 (32.2%)
----- ------ ------ ------ ------ ------
Year-to-Date (6 months) 2015 Business Metrics
---------------------------------------------
(tons in thousands; percentage change)
-------------------------------------
2015 2014 Year-Over-
Year Change
--- -----------
Tons sold 3,052.7 3,072.2 (0.6%)
--------- ------- ------- -----
Tons sold (same-store) 3,028.6 3,072.2 (1.4%)
--------------------- ------- ------- -----
Average selling price per ton sold $1,645 $1,688 (2.5%)
---------------------------------- ------ ------ -----
Average selling price per ton sold (same-store) $1,601 $1,688 (5.2%)
---------------------------------------------- ------ ------ -----
Year-to-Date (6 months) 2015 Major Commodity Metrics
Tons Sold Average Selling Price
(tons in thousands; percentage
change)
per Ton Sold
(percentage change)
------------------
2015 Tons Sold 2014 Tons Sold Year-Over- Year-Over-
Year Change Year Change
----------- -----------
Carbon steel 2,487.8 2,526.0 (1.5%) (4.8%)
------------ ------- ------- ----- -----
Aluminum 175.9 155.3 13.3% 6.4%
-------- ----- ----- ---- ---
Stainless steel 155.6 158.4 (1.8%) 0.7%
--------------- ----- ----- ----- ---
Alloy 127.0 160.4 (20.8%) (2.6%)
----- ----- ----- ------ -----
Sales ($ in millions; percentage
change)
---------------------------------
2015 Sales 2014 Sales Year-Over-
Year Change
-----------
Carbon steel $2,723.5 $2,904.4 (6.2%)
------------ -------- -------- -----
Aluminum $939.0 $779.4 20.5%
-------- ------ ------ ----
Stainless
steel $732.1 $740.3 (1.1%)
--------- ------ ------ -----
Alloy $360.9 $467.8 (22.9%)
----- ------ ------ ------
End-market Commentary
During the second quarter of 2015, Reliance experienced relatively steady customer demand across most of its end-markets, with the exception of the energy market which continued to decline. Although the demand momentum experienced in the 2015 first quarter lessened, the Company expects that underlying demand will improve from current levels during the second half of the year, subject to normal seasonal factors.
-- Automotive demand, supported mainly by the Company's toll processing
operations in the U.S. and Mexico, was very strong and is expected to
continue at current production rates throughout the remainder of 2015.
The increase in aluminum usage in the automotive industry continues to
represent a growth area for Reliance.
-- Aerospace demand continued to improve during the second quarter and is
expected to continue to grow as 2015 progresses and as "build" rates
increase.
-- Heavy industry continues to perform reasonably well. Although
agricultural and construction equipment demand has declined, Reliance
remains active in these markets.
-- Non-residential construction continues to improve, but remains well
below peak levels. Reliance believes that this important end-market will
maintain positive growth throughout 2015.
-- Energy (oil and gas) demand for the products Reliance sells has declined
significantly due to the severe drop in oil prices and is expected to
remain under pressure throughout the remainder of 2015. Reliance's
shipment volumes for its energy businesses were down 34% in the first
half of 2015 compared to the first half of 2014.
Balance Sheet & Liquidity
The Company generated $292.5 million in cash flow from operating activities in the second quarter of 2015 and $463.9 million in the first six months of 2015. In the second quarter of 2015, the Company paid down $156.0 million of debt. As of June 30, 2015, total debt outstanding was $2.20 billion, for a net debt-to-total capital ratio of 33.9%, compared to 36.2% at March 31, 2015. The Company had $585.0 million in outstanding borrowings on its $1.5 billion revolving credit facility at June 30, 2015.
"We were pleased with our strong liquidity position at quarter end, which highlights our ability to effectively manage our working capital and consistently generate significant cash flow throughout difficult industry cycles," said Karla Lewis, Senior Executive Vice President and Chief Financial Officer of Reliance. "Our healthy liquidity position affords us the flexibility and resources to continue investing in the growth of our business, both organically and through M&A opportunities. At the same time we continue to provide enhanced returns to our shareholders through our quarterly dividends and by using excess cash to opportunistically repurchase shares of our common stock. Furthermore, we remain focused on de-leveraging our balance sheet, as we did during the second quarter by using our strong cash flow to significantly reduce our debt levels."
Corporate Developments
On July 21, 2015, the Board of Directors declared a quarterly cash dividend of $0.40 per share of common stock, payable on September 11, 2015 to shareholders of record as of August 14, 2015. The Company has paid regular quarterly dividends for 56 consecutive years and has increased the dividend 22 times since the 1994 IPO.
During the three months ended June 30, 2015, the Company repurchased $15.1 million of its common stock under its existing share repurchase plan. Reliance's total repurchases in the first half of 2015 were 3.4 million shares at an average cost of $58.17 per share for a total of $200.0 million. At June 30, 2015, approximately 3.7 million shares remained available for repurchase under the share repurchase plan. The Company has repurchased an additional $61.5 million of its shares in July 2015, to-date, and expects to continue to opportunistically repurchase shares of its common stock going forward.
Business Outlook
Reliance management expects the U.S. economy will resume its modest improvement throughout the remainder of 2015. With the exception of the Company's businesses directly servicing the energy markets, management expects underlying demand to generally strengthen from second quarter levels, subject to normal seasonal patterns. That said, Reliance expects a decrease in tons sold of approximately 1% to 2% in the third quarter of 2015 over the second quarter of 2015, compared to the more typical seasonal trend of down 3% to 5%. Although metals pricing is expected to remain under pressure for most products the Company sells, management expects a slight improvement in overall pricing in the third quarter of 2015 over the second quarter of 2015 with overall average selling price expected to be flat to up 1%. As a result, management currently expects earnings per diluted share to be in the range of $0.95 to $1.05 for the third quarter ending September 30, 2015.
Conference Call Details
A conference call and simultaneous webcast to discuss the second quarter 2015 financial results and business outlook will be held today, July 23, 2015 at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. To listen to the live call by telephone, please dial (877) 407-0789 (U.S. and Canada) or (201) 689-8562 (International) approximately 10 minutes prior to the start time and use conference ID: 13612526. The call will also be broadcast live over the Internet hosted on the Investors section of the Company's website at investor.rsac.com.
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, August 6, 2015 by dialing (877) 870-5176 and entering the conference ID: 13612526. 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 300 locations in 39 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.
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 Reliance has 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, 2014, filed with the SEC.
CONTACT:
Brenda Miyamoto
Investor Relations
(213) 576-2428
investor@rsac.com
or Addo Communications
(310) 829-5400
(Tables to follow)
RELIANCE STEEL & ALUMINUM CO.
SELECTED UNAUDITED FINANCIAL DATA
(in millions, except share and per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2015 2014 2015 2014
---- ---- ---- ----
Income Statement Data:
Net sales $2,423.7 $2,616.8 $5,038.1 $5,169.8
Gross profit1 655.9 673.3 1,326.6 1,320.5
Operating income 160.2 175.7 329.5 330.0
Pretax income 135.9 154.2 286.5 288.3
Net income attributable to Reliance 90.2 96.5 191.5 183.7
Diluted earnings per share attributable
to Reliance stockholders $1.20 $1.22 $2.50 $2.34
Non-GAAP diluted earnings per share attributable
to Reliance stockholders(2) $1.21 $1.30 $2.51 $2.49
Weighted average shares outstanding - diluted
75,094,062 78,777,752 76,455,449 78,568,422
Gross profit margin1 27.1% 25.7% 26.3% 25.5%
Operating income margin 6.6% 6.7% 6.5% 6.4%
Pretax income margin 5.6% 5.9% 5.7% 5.6%
Net income margin - Reliance 3.7% 3.7% 3.8% 3.6%
Cash dividends per share $0.40 $0.35 $0.80 $0.70
June 30, December 31,
2015 2014*
---- ----
Balance Sheet and Other Data:
Current assets $3,038.9 $3,121.1
Working capital 2,327.6 2,458.3
Property, plant and equipment, net 1,648.6 1,656.4
Total assets 7,691.2 7,822.4
Current liabilities 711.3 662.8
Long-term debt 2,094.3 2,208.1
Total Reliance stockholders' equity 4,032.3 4,099.0
Capital expenditures (year-to-date) 77.1 190.4
Cash provided by operations (year-to-date) 463.9 356.0
Net debt-to-total capital(3) 33.9% 34.9%
Return on Reliance stockholders' equity4 9.3% 9.6%
Current ratio 4.3 4.7
Book value per share5 $54.20 $53.03
* 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 their fluctuations 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
stockholders' equity plus total
debt (net of cash). The December
31, 2014 percentage has been
retrospectively adjusted pursuant
to our adoption of accounting
changes related to the presentation
of debt issuance costs.
4 Calculations are based on the
latest twelve months net income
attributable to Reliance and
beginning total Reliance
stockholders' equity.
5 Book value per share is calculated
as total Reliance stockholders'
equity divided by outstanding
common shares.
RELIANCE STEEL & ALUMINUM CO.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in millions, except share amounts)
ASSETS
June 30, December 31,
2015 2014*
---- ----
Current assets:
Cash and cash
equivalents $131.9 $106.2
Accounts receivable, less
allowance for doubtful accounts
of $19.4 at June 30, 2015 and
$18.3 at December 31, 2014
1,117.1 1,144.6
Inventories 1,672.8 1,752.1
Prepaid expenses and other
current assets 56.0 71.8
Income taxes receivable 14.7 -
Deferred income taxes 46.4 46.4
---- ----
Total current assets 3,038.9 3,121.1
Property, plant and equipment:
Land 197.2 197.5
Buildings 990.5 983.2
Machinery and equipment 1,539.4 1,479.8
Accumulated depreciation (1,078.5) (1,004.1)
-------- --------
1,648.6 1,656.4
Goodwill 1,732.4 1,736.4
Intangible assets, net 1,195.9 1,227.4
Cash surrender value of life
insurance policies, net 40.4 46.4
Other assets 35.0 34.7
Total assets $7,691.2 $7,822.4
======== ========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $371.0 $286.5
Accrued expenses 82.7 98.2
Accrued compensation and
retirement costs 106.8 128.4
Accrued insurance costs 43.7 46.6
Current maturities of long-term
debt and short-term borrowings 107.1 93.9
Income taxes payable - 9.2
--- ---
Total current liabilities 711.3 662.8
Long-term debt 2,094.3 2,208.1
Long-term retirement costs 104.7 102.2
Other long-term liabilities 28.0 28.5
Deferred income taxes 690.6 692.9
Commitments and contingencies
Equity:
Preferred stock, $0.001 par
value:
Authorized shares - 5,000,000
None issued or outstanding - -
Common stock and additional
paid-in capital, $0.001 par
value:
Authorized shares -200,000,000
Issued and outstanding shares -
74,379,301 at June 30, 2015 and
77,337,251 at December 31, 2014
641.0 819.4
Retained earnings 3,457.6 3,328.5
Accumulated other comprehensive
loss (66.3) (48.9)
----- -----
Total Reliance stockholders'
equity 4,032.3 4,099.0
Noncontrolling interests 30.0 28.9
---- ----
Total equity 4,062.3 4,127.9
------- -------
Total liabilities and
equity $7,691.2 $7,822.4
======== ========
* 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 Six Months Ended
June 30, June 30,
-------- --------
2015 2014 2015 2014
---- ---- ---- ----
Net sales $2,423.7 $2,616.8 $5,038.1 $5,169.8
Costs and expenses:
Cost of sales (exclusive of
depreciation and amortization shown
below)
1,767.8 1,943.5 3,711.5 3,849.3
Warehouse, delivery, selling, general
and administrative
440.8 444.9 886.9 885.9
Depreciation and amortization 54.9 52.7 110.2 104.6
---- ---- ----- -----
2,263.5 2,441.1 4,708.6 4,839.8
Operating income 160.2 175.7 329.5 330.0
Other expense:
Interest (21.5) (20.2) (42.1) (40.4)
Other expense, net (2.8) (1.3) (0.9) (1.3)
---- ---- ---- ----
Income before income taxes 135.9 154.2 286.5 288.3
Income tax provision 44.3 56.4 92.0 102.6
---- ---- ---- -----
Net income 91.6 97.8 194.5 185.7
Less: Net income attributable to
noncontrolling interests
1.4 1.3 3.0 2.0
--- --- --- ---
Net income attributable to Reliance $90.2 $96.5 $191.5 $183.7
===== ===== ====== ======
Earnings per share attributable to
Reliance stockholders:
Diluted $1.20 $1.22 $2.50 $2.34
Basic $1.21 $1.24 $2.53 $2.37
Cash dividends per share $0.40 $0.35 $0.80 $0.70
RELIANCE STEEL & ALUMINUM CO.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Six Months Ended
June 30,
--------
2015 2014
---- ----
Operating activities:
Net income $194.5 $185.7
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation and
amortization expense 110.2 104.6
Deferred income tax benefit (2.0) (1.5)
Gain on sales of property,
plant and equipment (0.3) (1.0)
Stock-based compensation
expense 12.4 12.9
Other 5.1 3.4
Changes in operating assets
and liabilities:
Accounts receivable 25.0 (188.0)
Inventories 75.3 (230.4)
Prepaid expenses and other
assets 0.4 37.2
Accounts payable and other
liabilities 43.3 186.6
---- -----
Net cash provided by
operating activities 463.9 109.5
Investing activities:
Purchases of property,
plant and equipment (77.1) (86.9)
Proceeds from sale of
business, net - 26.2
Other (1.5) (9.0)
---- ----
Net cash used in investing
activities (78.6) (69.7)
Financing activities:
Net short-term debt
borrowings (repayments) 6.8 (3.6)
Proceeds from long-term
debt borrowings 412.0 297.0
Principal payments on long-
term debt (521.8) (270.3)
Dividends and dividend
equivalents paid (61.4) (54.4)
Exercise of stock options 10.6 21.3
Share repurchases (200.0) -
Other (4.3) (1.1)
---- ----
Net cash used in financing
activities (358.1) (11.1)
Effect of exchange rate
changes on cash (1.5) 1.2
---- ---
Increase in cash and cash
equivalents 25.7 29.9
Cash and cash equivalents
at beginning of year 106.2 83.6
----- ----
Cash and cash equivalents
at end of period $131.9 $113.5
====== ======
Supplemental cash flow
information:
Interest paid during the
period $42.2 $40.5
Income taxes paid during
the period, net $118.2 $62.5
RELIANCE STEEL & ALUMINUM CO.
NON-GAAP EARNINGS RECONCILIATION
(in millions, except per share amounts)
Net Income Diluted EPS
---------- -----------
Three Months Ended Three Months Ended
------------------ ------------------
June 30, March 31, June 30, June 30, March 31, June 30,
2015 2015 2014 2015 2015 2014
Net income attributable to Reliance $90.2 $101.3 $96.5 $1.20 $1.30 $1.22
Antitrust related litigation costs - - 1.2 - - 0.02
Restructuring charges 0.8 - - 0.01 - -
Income tax benefit, related to above items (0.3) - (0.4) - - -
Costs related to sales of non-core assets - - 1.1 - - 0.01
Income tax expense related to sales of non-core assets - - 3.7 - - 0.05
--- --- --- --- --- ----
Net income attributable to Reliance, adjusted $90.7 $101.3 $102.1 $1.21 $1.30 $1.30
===== ====== ====== ===== ===== =====
Net Income Diluted EPS
---------- -----------
Six Months Ended Six Months Ended
---------------- ----------------
June 30, June 30, June 30, June 30,
2015 2014 2015 2014
Net income attributable to Reliance $191.5 $183.7 $2.50 $2.34
Antitrust related litigation costs - 11.5 - 0.15
Restructuring charges 0.8 - 0.01 -
Income tax benefit, related to above items (0.3) (4.3) - (0.06)
Gain, net related to sales of non-core assets - 1.1 - 0.01
Income tax expense related to sales of non-core assets - 3.7 - 0.05
--- --- --- ----
Net income attributable to Reliance, adjusted $192.0 $195.7 $2.51 $2.49
====== ====== ===== =====
Reliance Steel & Aluminum Co.'s
presentation of adjusted net
income and adjusted EPS over
certain time periods is an
attempt to provide meaningful
comparisons to the Company's
historical performance for its
existing and future shareholders.
Adjustments to net income and EPS
include restructuring and other
charges relating to the
consolidation of one of its
metals service centers, sale of
certain non-core assets acquired
as part of the Metals USA
acquisition, and legal costs and
accruals related to certain
settled litigation, which make
comparisons to the Company's
operating results between periods
difficult using GAAP measures.
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SOURCE Reliance Steel & Aluminum Co.
