SCOTTSDALE, Ariz., May 07, 2024 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) announced today that its management team will participate in the following upcoming investor conferences: The BofA Securities 2024 Global Metals, Mining & Steel Conference on Tuesday, May 14, 2024 in Miami, Florida. Karla Lewis, President and Chief Executive Officer, and Arthur Ajemyan, Senior Vice President and Chief Financial Officer, are scheduled to present on Tuesday, May 14th at 5:30 p.m. ET and will participate in meetings ...

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Reliance, Inc.'s unaudited consolidated financial statements for the quarter ended March 31, 2024, including balance sheets, income statements, comprehensive income statements, equity statements, and cash flow statements, along with detailed notes explaining significant accounting policies, acquisitions, revenue breakdown, goodwill, intangible assets, debt, leases, income taxes, equity, commitments, earnings per share, and employee benefits [Unaudited Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in millions) | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------- | :------------- | :---------------- | | Total assets | $10,712.2 | $10,480.3 | | Total liabilities | $2,769.5 | $2,747.5 | | Total equity | $7,942.7 | $7,732.8 | - Total assets increased by **$231.9 million** from December 31, 2023, to March 31, 2024, primarily driven by increases in accounts receivable and inventories[8](index=8&type=chunk) [Unaudited Consolidated Statements of Income](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Income) Consolidated Statements of Income Highlights (in millions, except per share) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net sales | $3,644.8 | $3,965.3 | | Operating income | $393.1 | $513.6 | | Net income attributable to Reliance | $302.9 | $383.1 | | Diluted EPS | $5.23 | $6.43 | - Net sales decreased by **8.1%** and net income attributable to Reliance decreased by **20.9%** year-over-year, leading to a **18.6%** decline in diluted EPS[10](index=10&type=chunk) [Unaudited Consolidated Statements of Comprehensive Income](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Income) Consolidated Statements of Comprehensive Income Highlights (in millions) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net income | $303.8 | $384.4 | | Total other comprehensive loss | $(16.6) | $(0.2) | | Comprehensive income | $287.2 | $384.2 | | Comprehensive income attributable to Reliance | $286.3 | $382.9 | - Total other comprehensive loss significantly increased to **$(16.6) million** in Q1 2024 from **$(0.2) million** in Q1 2023, primarily due to foreign currency translation losses[12](index=12&type=chunk) [Unaudited Consolidated Statements of Equity](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Equity) Consolidated Statements of Equity Highlights (in millions, except per share) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Total equity, beginning balances | $7,732.8 | $7,095.9 | | Net income attributable to Reliance | $302.9 | $383.1 | | Cash dividends and dividend equivalents | $(65.3) | $(62.0) | | Total equity, ending balances | $7,942.7 | $7,354.4 | | Cash dividends declared per common share | $1.10 | $1.00 | - Total equity increased to **$7,942.7 million** by March 31, 2024, from **$7,732.8 million** at the beginning of the period, driven by net income partially offset by dividends and other comprehensive loss[14](index=14&type=chunk) - Cash dividends declared per common share increased by **10%** to **$1.10** in Q1 2024 from **$1.00** in Q1 2023[14](index=14&type=chunk) [Unaudited Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows Highlights (in millions) | Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $126.3 | $384.6 | | Net cash used in investing activities | $(177.4) | $(102.6) | | Net cash used in financing activities | $(90.3) | $(639.2) | | Cash and cash equivalents at end of period | $934.9 | $816.2 | - Net cash provided by operating activities significantly decreased by **67.2%** year-over-year, mainly due to increased working capital spending and lower profitability[16](index=16&type=chunk) - Net cash used in investing activities increased by **72.9%** due to an acquisition in February 2024 and higher capital expenditures[16](index=16&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) [Note 1. Summary of Significant Accounting Policies](index=8&type=section&id=Note%201.%20Summary%20of%20Significant%20Accounting%20Policies) - The company changed its corporate name from Reliance Steel & Aluminum Co. to Reliance, Inc. in February 2024[17](index=17&type=chunk) - The majority of inventory is valued using the last-in, first-out (LIFO) method[20](index=20&type=chunk) - New FASB guidance on segment reporting and income tax disclosures will be effective for fiscal years beginning January 1, 2025, requiring additional disclosures but no impact on financial results[21](index=21&type=chunk)[22](index=22&type=chunk)[24](index=24&type=chunk) [Note 2. Acquisitions](index=10&type=section&id=Note%202.%20Acquisitions) - Acquired Cooksey Iron & Metal Company on February 1, 2024, contributing **$16.1 million** to net sales in Q1 2024[25](index=25&type=chunk) - Acquired American Alloy Steel, Inc. and Mid-West Materials, Inc. on April 1, 2024; their sales were not included in Q1 2024 net sales[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) [Note 3. Revenues](index=10&type=section&id=Note%203.%20Revenues) Net Sales Disaggregated by Product and Service (in millions) | Product/Service | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------- | :-------------------------------- | :-------------------------------- | | Carbon steel | $2,012.9 | $2,128.5 | | Aluminum | $596.1 | $670.2 | | Stainless steel | $559.9 | $657.3 | | Alloy | $171.9 | $191.4 | | Toll processing and logistics | $157.8 | $155.4 | | Copper and brass | $75.3 | $82.0 | | Other and eliminations | $70.9 | $80.5 | | Total | $3,644.8 | $3,965.3 | - Carbon steel remains the largest revenue contributor, though sales decreased across most product categories year-over-year[30](index=30&type=chunk) [Note 4. Goodwill](index=10&type=section&id=Note%204.%20Goodwill) Goodwill Carrying Amount (in millions) | Metric | Amount | | :-------------------------- | :----- | | Balance at January 1, 2024 | $2,111.1 | | Acquisition | $16.5 | | Effect of foreign currency translation | $(2.3) | | Balance at March 31, 2024 | $2,125.3 | - Goodwill increased by **$14.2 million** in Q1 2024, primarily due to acquisitions, with no accumulated impairment losses[31](index=31&type=chunk) [Note 5. Intangible Assets, Net](index=12&type=section&id=Note%205.%20Intangible%20Assets%2C%20Net) Intangible Assets, Net (in millions) | Category | March 31, 2024 (Net) | December 31, 2023 (Net) | | :-------------------------------- | :------------------- | :-------------------- | | Intangible assets subject to amortization | $207.9 | $212.9 | | Intangible assets not subject to amortization (Trade names) | $778.2 | $768.2 | | Total Intangible Assets, Net | $986.1 | $981.1 | - Amortization expense for intangible assets was **$10.3 million** in Q1 2024, down from **$11.8 million** in Q1 2023[34](index=34&type=chunk) - Estimated future amortization expense totals **$207.9 million**, with **$30.6 million** remaining for 2024[35](index=35&type=chunk) [Note 6. Debt](index=12&type=section&id=Note%206.%20Debt) Debt Composition (in millions) | Debt Type | March 31, 2024 | December 31, 2023 | | :----------------------------------- | :------------- | :---------------- | | Senior unsecured notes (various maturities) | $1,150.0 | $1,150.0 | | Other notes | $1.4 | $1.4 | | Total long-term debt | $1,142.6 | $1,141.9 | - The weighted average effective interest rate on outstanding borrowings was **3.02%** as of March 31, 2024[37](index=37&type=chunk) - No outstanding borrowings on the **$1.5 billion** unsecured revolving credit facility as of March 31, 2024[39](index=39&type=chunk) [Note 7. Leases](index=14&type=section&id=Note%207.%20Leases) Lease Cost and Cash Flow (in millions) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Operating lease cost | $25.2 | $23.6 | | Cash payments for operating leases | $25.3 | $23.5 | | Right-of-use assets obtained | $28.2 | $15.6 | - The weighted average remaining lease term for operating leases was **6.3 years** as of March 31, 2024, with a weighted average discount rate of **4.5%**[46](index=46&type=chunk) [Note 8. Income Taxes](index=16&type=section&id=Note%208.%20Income%20Taxes) - Effective income tax rate for Q1 2024 was **23.3%**, down from **24.4%** in Q1 2023, primarily due to state income taxes[47](index=47&type=chunk) [Note 9. Equity](index=16&type=section&id=Note%209.%20Equity) Stock-Based Compensation and Dividends (in millions, except per share) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Stock-based compensation expense | $13.0 | $13.5 | | Cash dividends and dividend equivalents | $65.3 | $62.0 | | Share repurchases | $0.0 | $38.9 | | Cash dividends declared per common share | $1.10 | $1.00 | - The Board of Directors declared a Q2 2024 cash dividend of **$1.10 per share**, a **10%** increase from the prior year[51](index=51&type=chunk)[74](index=74&type=chunk)[98](index=98&type=chunk) - No shares were repurchased in Q1 2024, compared to **$38.9 million** in Q1 2023. The company has **$1.44 billion** remaining authorization under its share repurchase program[53](index=53&type=chunk)[54](index=54&type=chunk)[99](index=99&type=chunk) [Note 10. Commitments and Contingencies](index=19&type=section&id=Note%2010.%20Commitments%20and%20Contingencies) - The company is involved in an environmental remediation project but does not expect a material adverse impact due to insurance coverage[57](index=57&type=chunk) - Routine legal actions are not expected to have a material adverse impact on financial position, results of operations, or cash flows[58](index=58&type=chunk) [Note 11. Earnings Per Share](index=20&type=section&id=Note%2011.%20Earnings%20Per%20Share) Earnings Per Share Computation (in millions, except per share) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net income attributable to Reliance | $302.9 | $383.1 | | Weighted average shares outstanding (Basic) | 57,340 | 58,832 | | Weighted average diluted shares outstanding | 57,882 | 59,534 | | Basic EPS | $5.28 | $6.51 | | Diluted EPS | $5.23 | $6.43 | - Diluted EPS decreased to **$5.23** in Q1 2024 from **$6.43** in Q1 2023, reflecting lower net income and a slight reduction in diluted shares outstanding[60](index=60&type=chunk) [Note 12. Employee Benefits](index=20&type=section&id=Note%2012.%20Employee%20Benefits) - Recognized estimated withdrawal liabilities of **$4.6 million** in Q1 2024 due to anticipated withdrawal from two multiemployer plans[61](index=61&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of Reliance, Inc.'s financial performance and condition for the first quarter of 2024, highlighting a decline in operating results due to lower metals prices and decreased tons sold, despite healthy demand in most end markets. It details recent acquisitions, analyzes changes in net sales, gross profit, expenses, and operating income, and discusses liquidity, capital resources, and critical accounting estimates [Overview](index=23&type=section&id=Overview) - Operating results in Q1 2024 declined year-over-year due to lower metals prices and a decrease in tons sold, impacted by one less shipping day[69](index=69&type=chunk) - Gross profit margin remained stable at **31.0%** in Q1 2024 (vs. **30.9%** in Q1 2023), supported by strong operational execution, product/market diversity, and increased value-added processing[70](index=70&type=chunk) - Same-store net sales decreased **8.8%** in Q1 2024, driven by a **6.5%** decline in average selling price per ton and a **2.9%** decline in tons sold[71](index=71&type=chunk) - Demand improved in non-residential construction and automotive, remained stable in aerospace, and modestly lower in semiconductors and broader manufacturing[72](index=72&type=chunk) [Acquisitions](index=23&type=section&id=Acquisitions) - Completed three acquisitions in 2024 with combined 2023 annual sales of nearly **$500 million**[75](index=75&type=chunk) - Acquired Cooksey Iron & Metal Company on February 1, 2024, contributing **$16.1 million** to Q1 2024 net sales[75](index=75&type=chunk) - Acquired American Alloy Steel, Inc. (2023 net sales ~**$310 million**) and Mid-West Materials, Inc. (2023 net sales ~**$87 million**) on April 1, 2024, with no sales included in Q1 2024[77](index=77&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) [Net Sales](index=27&type=section&id=Net%20Sales) Net Sales and Volume Trends (Q1 2024 vs. Q1 2023) | Metric | 2024 | 2023 | Dollar Change | Percentage Change | | :----------------------------------- | :----- | :----- | :------------ | :---------------- | | Net sales (in millions) | $3,644.8 | $3,965.3 | $(320.5) | (8.1)% | | Net sales, same-store (in millions) | $3,618.1 | $3,965.3 | $(347.2) | (8.8)% | | Tons sold (in thousands) | 1,494.0 | 1,520.1 | (26.1) | (1.7)% | | Tons sold, same-store (in thousands) | 1,476.4 | 1,520.1 | (43.7) | (2.9)% | | Average selling price per ton sold | $2,442 | $2,623 | $(181) | (6.9)% | | Average selling price per ton sold, same-store | $2,453 | $2,623 | $(170) | (6.5)% | - Same-store net sales declined primarily due to lower selling prices and a decrease in tons sold, impacted by one less shipping day[82](index=82&type=chunk) Year-over-Year Changes in Selling Prices and Mix of Major Commodity Products | Product | Change in Average Selling Price Per Ton Sold | Change in Percentage of Total Tons Sold | | :-------------- | :----------------------------------------- | :-------------------------------------- | | Carbon steel | (4.1)% | 0.3 % | | Aluminum | (6.3)% | (0.2)% | | Stainless steel | (13.3)% | — % | | Alloy | (1.2)% | (0.2)% | [Cost of Sales and Gross Profit](index=27&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) Cost of Sales and Gross Profit (Q1 2024 vs. Q1 2023, in millions) | Metric | 2024 | % of Net Sales | 2023 | % of Net Sales | Dollar Change | Percentage Change | | :------------- | :----- | :------------- | :----- | :------------- | :------------ | :---------------- | | Cost of sales | $2,516.6 | 69.0 % | $2,739.3 | 69.1 % | $(222.7) | (8.1)% | | Gross profit | $1,128.2 | 31.0 % | $1,226.0 | 30.9 % | $(97.8) | (8.0)% | | LIFO income | $(50.0) | (1.4)% | $(15.0) | (0.4)% | $(35.0) | | - Gross profit decreased mainly due to lower sales from reduced average selling prices and tons sold. Gross profit margin remained stable at **31.0%**[84](index=84&type=chunk)[86](index=86&type=chunk) - LIFO income increased to **$50.0 million** in Q1 2024 from **$15.0 million** in Q1 2023[83](index=83&type=chunk) [Expenses](index=29&type=section&id=Expenses) Expenses (Q1 2024 vs. Q1 2023, in millions) | Metric | 2024 | % of Net Sales | 2023 | % of Net Sales | Dollar Change | Percentage Change | | :----------------------------------- | :----- | :------------- | :----- | :------------- | :------------ | :---------------- | | SG&A expense | $671.5 | 18.4 % | $651.3 | 16.4 % | $20.2 | 3.1 % | | SG&A expense, same-store | $668.1 | 18.5 % | $651.3 | 16.4 % | $16.8 | 2.6 % | | Depreciation & amortization expense | $63.6 | 1.7 % | $61.1 | 1.5 % | $2.5 | 4.1 % | - Same-store SG&A expense increased due to higher headcount for organic growth, partially offset by lower incentive-based compensation[88](index=88&type=chunk) - SG&A expense as a percentage of sales increased due to decreased sales volume[89](index=89&type=chunk) [Operating Income](index=29&type=section&id=Operating%20Income) Operating Income (Q1 2024 vs. Q1 2023, in millions) | Metric | 2024 | % of Net Sales | 2023 | % of Net Sales | Dollar Change | Percentage Change | | :--------------- | :----- | :------------- | :----- | :------------- | :------------ | :---------------- | | Operating income | $393.1 | 10.8 % | $513.6 | 13.0 % | $(120.5) | (23.5)% | - Operating income decreased by **23.5%** due to lower gross profit (from reduced metals prices and tons sold) and a moderate increase in SG&A expense[90](index=90&type=chunk) [Other Income, Net](index=29&type=section&id=Other%20Income%2C%20Net) Other Income, Net (Q1 2024 vs. Q1 2023, in millions) | Metric | 2024 | % of Net Sales | 2023 | % of Net Sales | Dollar Change | | :-------------- | :----- | :------------- | :----- | :------------- | :------------ | | Other income, net | $(12.8) | (0.4)% | $(5.8) | (0.1)% | $(7.0) | - The increase in other income, net, was mainly due to higher interest income from increased cash balances[93](index=93&type=chunk) [Income Tax Rate](index=31&type=section&id=Income%20Tax%20Rate) - Effective income tax rate for Q1 2024 was **23.3%**, down from **24.4%** in Q1 2023, primarily due to state income taxes[94](index=94&type=chunk) [Financial Condition](index=31&type=section&id=Financial%20Condition) [Operating Activities](index=31&type=section&id=Operating%20Activities) - Net cash provided by operations decreased to **$126.3 million** in Q1 2024 from **$384.6 million** in Q1 2023, mainly due to lower profitability and increased working capital spending[95](index=95&type=chunk) - Days sales outstanding were **40.8 days** (Q1 2024) vs. **40.0 days** (Q1 2023); inventory turnover rate was **4.6 times** (Q1 2024) vs. **4.9 times** (Q1 2023)[95](index=95&type=chunk) [Investing Activities](index=31&type=section&id=Investing%20Activities) - Net cash used in investing activities increased to **$177.4 million** in Q1 2024 from **$102.6 million** in Q1 2023, primarily due to capital expenditures and an acquisition[96](index=96&type=chunk) [Financing Activities](index=31&type=section&id=Financing%20Activities) - Net cash used in financing activities significantly decreased to **$90.3 million** in Q1 2024 from **$639.2 million** in Q1 2023, mainly due to the redemption of **$500 million** senior notes in January 2023 and reduced share repurchases[97](index=97&type=chunk) - Increased quarterly dividend rate by **10%** to **$1.10 per common share** in Q1 2024[98](index=98&type=chunk) [Share Repurchase Plan](index=31&type=section&id=Share%20Repurchase%20Plan) - As of March 31, 2024, **$1.44 billion** remained authorized under the **$1.5 billion** share repurchase program[99](index=99&type=chunk) [Debt](index=31&type=section&id=Debt) - No outstanding borrowings on the **$1.5 billion** unsecured revolving credit facility as of March 31, 2024[100](index=100&type=chunk) - Aggregate of **$1.15 billion** principal amount of senior unsecured note obligations with maturities through 2036[100](index=100&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary sources of liquidity (operations, cash, credit agreement) are believed to be sufficient for cash requirements and stockholder returns[103](index=103&type=chunk) - As of March 31, 2024, cash and cash equivalents were **$934.9 million**, and the net debt-to-total capital ratio was **2.6%**[103](index=103&type=chunk) - **$400.3 million** of debt obligations are due before the Credit Agreement matures on September 3, 2025[104](index=104&type=chunk) [Covenants](index=33&type=section&id=Covenants) - The company was in compliance with all financial maintenance covenants in its Credit Agreement at March 31, 2024[106](index=106&type=chunk) [Seasonality](index=33&type=section&id=Seasonality) - Overall operations have not shown material seasonal trends due to geographic, product, and customer diversity[107](index=107&type=chunk) - Revenues in July, November, and December are typically lower due to fewer working days[107](index=107&type=chunk) [Goodwill and Other Intangible Assets](index=33&type=section&id=Goodwill%20and%20Other%20Intangible%20Assets) Goodwill and Intangible Assets (as of March 31, 2024, in billions) | Asset Type | Amount | % of Total Assets | % of Total Equity | | :-------------------------- | :----- | :---------------- | :---------------- | | Goodwill | $2.13 | 20% | 27% | | Other intangible assets, net | $0.986 | 9% | 12% | - Goodwill and indefinite-lived intangible assets are not amortized but are subject to annual impairment tests[108](index=108&type=chunk) [Critical Accounting Estimates](index=33&type=section&id=Critical%20Accounting%20Estimates) - Critical accounting estimates involve significant estimation uncertainty and include the recoverability of goodwill, other indefinite-lived intangible assets, and long-lived assets[111](index=111&type=chunk) - No material changes to critical accounting estimates occurred during Q1 2024[112](index=112&type=chunk) [Website Disclosure](index=35&type=section&id=Website%20Disclosure) - The company uses its website (www.reliance.com and investor.reliance.com) as a distribution channel for material company information[113](index=113&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes to the company's exposures to market risk as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes to market risk exposures since the 2023 Annual Report on Form 10-K[114](index=114&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2024. No material changes to internal control over financial reporting occurred during the first quarter of 2024 - Disclosure controls and procedures were effective as of March 31, 2024[115](index=115&type=chunk) - No material changes to internal control over financial reporting during Q1 2024[116](index=116&type=chunk) [PART II — OTHER INFORMATION](index=35&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the information on legal matters and environmental contingencies from Note 10 of the Unaudited Consolidated Financial Statements, indicating no material adverse impact is expected from current legal actions or environmental projects - Information on legal matters and environmental contingencies is incorporated from Note 10[117](index=117&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes to risk factors since the 2023 Annual Report on Form 10-K[119](index=119&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section indicates that there were no unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities or use of proceeds[120](index=120&type=chunk) [Item 3. Defaults Upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section reports that there were no defaults upon senior securities during the period - No defaults upon senior securities[121](index=121&type=chunk) [Item 4. Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the company - Mine safety disclosures are not applicable[122](index=122&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) This section confirms that no directors or officers adopted, terminated, or modified a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the first quarter of 2024 - No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2024[123](index=123&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed or furnished with the Quarterly Report on Form 10-Q, including certifications from the CEO and CFO, Sarbanes-Oxley Act certifications, and unaudited financial information formatted in iXBRL - Includes certifications from CEO and CFO (Exhibits 31.1, 31.2), Sarbanes-Oxley Act certification (Exhibit 32), and unaudited financial information in iXBRL format (Exhibit 101)[124](index=124&type=chunk) [SIGNATURE](index=38&type=section&id=SIGNATURE) This section contains the signature of Arthur Ajemyan, Senior Vice President and Chief Financial Officer, on behalf of Reliance, Inc., certifying the filing of the report - Report signed by Arthur Ajemyan, Senior Vice President and Chief Financial Officer, on May 2, 2024[127](index=127&type=chunk)

Reliance (RS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often find ...

Core Viewpoint - Reliance (RS) has experienced a significant decline of 13% over the past four weeks, but it is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [1]. Group 1: Stock Performance and Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with a reading below 30 typically indicating this condition [2]. - RS has an RSI reading of 17.2, suggesting that the heavy selling may be exhausting itself, indicating a potential bounce back towards previous supply and demand equilibrium [4]. Group 2: Earnings Estimates and Analyst Consensus - There is strong consensus among sell-side analysts that earnings estimates for RS have increased by 1.4% over the last 30 days, which often correlates with price appreciation in the near term [4]. - RS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [5].

Core Viewpoint - Reliance, Inc. reported a decline in profits and net sales for the first quarter of 2024, missing consensus estimates, but anticipates a seasonal recovery in demand for the upcoming quarter [1][5]. Financial Performance - The company posted profits of $302.9 million or $5.23 per share, down from $383.1 million or $6.43 per share year-over-year [1]. - Net sales were $3,644.8 million, reflecting an 8.1% decrease year-over-year and falling short of the Zacks Consensus Estimate of $3,733.1 million [1]. - Barring one-time items, earnings were $5.30 per share, which also lagged behind the Zacks Consensus Estimate of $5.51 [1]. Volumes and Pricing - Shipments decreased by 1.7% year-over-year to 1,494 thousand tons sold, surpassing the estimate of 1,480.4 [2]. - The average selling price per ton dropped by 6.9% year-over-year to $2,442, lower than the estimate of $2,509 [2]. - Demand for non-residential construction is expected to remain strong, particularly in public infrastructure, manufacturing, and energy sectors [2]. Industry Trends - The broader manufacturing sector experienced a slight decline in demand, primarily due to downturns in agricultural equipment and consumer products, although industrial machinery activities rose [3]. - The semiconductor market showed seasonal improvement but remained below early 2023 levels, with a positive long-term outlook supported by the CHIPS Act [3]. Financial Position - At the end of Q1 2024, Reliance had $934.9 million in cash and cash equivalents and $1.15 billion in total outstanding debt, with no borrowings under its $1.5 billion revolving credit facility [4]. - The company generated cash flow from operations of $126.3 million in the first quarter [4]. Outlook - Reliance anticipates a stronger-than-usual seasonal recovery in demand for Q2 2024, projecting a 2.5-4.5% increase in tons sold, with about 2% growth from new acquisitions [5]. - The average selling price per ton is expected to decline by 1-3%, leading to short-term gross profit margin pressure [5]. - Adjusted earnings per share for Q2 2024 are forecasted to range between $4.70 and $4.90 [5]. Price Performance - Reliance's shares have increased by 21.6% over the past year, outperforming the industry average rise of 10.7% [6].

Financial Data and Key Metrics Changes - The company reported non-GAAP earnings per diluted share of $5.30 for Q1 2024, which was at the low end of the guided range due to softer pricing than anticipated [15][5] - The gross profit margin for Q1 2024 was 31%, supported by a higher-than-expected LIFO benefit and better alignment of costs [16][6] - Operating cash flow for Q1 was $126.3 million, funding $108.7 million in capital expenditures and $65.3 million in dividends [18][6] Business Line Data and Key Metrics Changes - Tons sold increased by 10.3% compared to Q4 2023, but were down 1.7% year-over-year, outperforming the service center industry decrease of 4.2% [9][10] - Carbon steel tubing, plate, and structurals represented about one-third of sales, showing solid volume growth [11] - Aerospace products accounted for about 9% of total sales, with stable demand year-over-year [12] Market Data and Key Metrics Changes - The average selling price per ton sold was $2,442, a decline of 1% compared to Q4 2023, with carbon steel prices increasing by 1% but trending down in Q2 [10][11] - Demand in the semiconductor industry has stabilized but remains down year-over-year, with a positive long-term outlook due to the CHIPS Act [13] Company Strategy and Development Direction - The company completed three acquisitions in 2024, adding nearly $500 million in annualized sales based on 2023 results, and continues to evaluate future acquisition opportunities [6][7] - The capital expenditure budget for 2024 is $440 million, with two-thirds allocated for growth projects [6][7] Management's Comments on Operating Environment and Future Outlook - Management expects a better-than-normal seasonal recovery in demand for Q2 2024, with shipping volumes anticipated to increase by 2.5% to 4.5% sequentially [19] - The company anticipates non-GAAP earnings per diluted share in the range of $4.70 to $4.90 for Q2 2024, reflecting short-term pressure on gross profit margins [20] Other Important Information - The company has a strong M&A pipeline and has completed 75 acquisitions since its IPO in 1994 [7] - The LIFO reserve on the balance sheet was $529 million, which will benefit future operating results [17] Q&A Session Summary Question: Expectations for FIFO gross margins in Q3 - Management expects FIFO gross margins to improve in Q3 as prices level out [22][23] Question: Operating expenses higher than anticipated - Management noted that increased operating expenses were due to higher volumes and ongoing infrastructure expansions [24][26] Question: Same-store volumes in Q2 and Q3 of last year - Management indicated that same-store volumes were relatively stable, with minor acquisitions not significantly affecting the numbers [31][32] Question: Impact of acquisitions on growth rates - Management confirmed that acquisitions would contribute positively to growth rates, with expectations of around 4% growth year-on-year [34][35] Question: Repurchase activity and acquisition pipeline - Management stated that no share repurchases occurred in Q1 due to ongoing acquisition activities, but they remain open to future repurchases [39][40] Question: Aerospace and defense market outlook - Management sees strong demand in the defense sector, while commercial aerospace faces near-term pressure due to supply chain adjustments [54][56]

Reliance (RS) came out with quarterly earnings of $5.30 per share, missing the Zacks Consensus Estimate of $5.51 per share. This compares to earnings of $6.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3.81%. A quarter ago, it was expected that this metals service-center company would post earnings of $3.86 per share when it actually produced earnings of $4.73, delivering a surprise of 22.54%.Over the last four quarters, ...

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) [First Quarter 2024 Financial Overview](index=1&type=section&id=First%20Quarter%202024%20Financial%20Overview) Reliance, Inc. reported **$3.64 billion** in Q1 2024 net sales, a 10.3% sequential volume increase, a 31.0% gross margin, and diluted EPS of **$5.23**, completing three acquisitions - Net sales for Q1 2024 were **$3.64 billion**, with volume increasing by **10.3%** compared to Q4 2023[1](index=1&type=chunk) - Gross profit margin reached **31.0%**, with diluted EPS at **$5.23** and non-GAAP diluted EPS at **$5.30**[1](index=1&type=chunk) - Acquisitions of Cooksey Iron & Metal Company (February 1, 2024), American Alloy Steel, Inc. (April 1, 2024), and Mid-West Materials, Inc. (April 1, 2024) were completed[1](index=1&type=chunk) [Key Financial and Business Metrics](index=1&type=section&id=Key%20Financial%20and%20Business%20Metrics) Q1 2024 saw sequential growth in net sales and gross profit, with improved EPS, but operating and free cash flow significantly declined year-over-year and sequentially Key Financial Data for Q1 2024 (million USD, except per share amounts) | Metric | Q1 2024 | Q4 2023 | Sequential Change (%) | Q1 2023 | YOY Change (%) | | :----------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Sales | 3,644.8 | 3,337.3 | 9.2% | 3,965.3 | (8.1%) | | Gross Profit | 1,128.2 | 1,021.6 | 10.4% | 1,226.0 | (8.0%) | | Gross Margin | 31.0% | 30.6% | 0.4% | 30.9% | 0.1% | | Non-GAAP Gross Margin | 31.0% | 30.6% | 0.4% | 30.9% | 0.1% | | Diluted EPS | 5.23 | 4.70 | 11.3% | 6.43 | (18.7%) | | Non-GAAP Diluted EPS | 5.30 | 4.73 | 12.1% | 6.37 | (16.8%) | | Cash Flow from Operations | 126.3 | 525.6 | (76.0%) | 384.6 | (67.2%) | | Free Cash Flow | 17.6 | 415.4 | (95.8%) | 281.7 | (93.8%) | | Volume (thousand tons) | 1,494.0 | 1,354.2 | 10.3% | 1,520.1 | (1.7%) | | Average Selling Price per Ton | 2,442 | 2,466 | (1.0%) | 2,623 | (6.9%) | [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO Karla Lewis highlighted strong Q1 performance despite pricing challenges, driven by diversified markets, above-industry shipments, and strategic acquisitions, while anticipating continued pricing headwinds - Non-GAAP diluted EPS for Q1 2024 was **$5.30**, driven by increased shipments and pricing discipline[4](index=4&type=chunk) - Three acquisitions were completed, projected to add nearly **$500 million** in annualized net sales, with **$108.7 million** invested in capital expenditures[4](index=4&type=chunk) - Dividends of **$65.3 million** were distributed to shareholders, with optimism for long-term benefits from government stimulus and reshoring initiatives[4](index=4&type=chunk) [End Market Commentary](index=2&type=section&id=End%20Market%20Commentary) Reliance's Q1 2024 volume increased by 10.3% sequentially, meeting expectations, with healthy demand across most end markets, particularly in non-residential construction and automotive processing - Q1 2024 volume increased **10.3%** sequentially, aligning with management's 9% to 11% expectation, with healthy demand across most end markets[5](index=5&type=chunk) [Non-Residential Construction](index=2&type=section&id=Non-Residential%20Construction) Demand in non-residential construction, Reliance's largest end market, improved in Q1 2024, driven by new public infrastructure, manufacturing, and energy projects, with strong demand expected to continue into Q2 - Non-residential construction demand improved compared to Q1 2023, with strong demand anticipated to continue into Q2 2024[6](index=6&type=chunk) - The company continues to serve new construction projects across diverse sectors including public infrastructure, manufacturing, and energy infrastructure[6](index=6&type=chunk) [Commercial Aerospace](index=2&type=section&id=Commercial%20Aerospace) Commercial aerospace demand remained relatively stable in Q1 2024 compared to Q1 2023, with stability expected in Q2, while military and space-related aerospace business is projected to remain strong - Commercial aerospace demand remained relatively stable compared to Q1 2023, with stability expected in Q2 2024[7](index=7&type=chunk) - Military and space-related aerospace business is projected to maintain strong levels in Q2 2024[7](index=7&type=chunk) [Automotive Market](index=2&type=section&id=Automotive%20Market) Demand for Reliance's automotive processing services improved in Q1 2024 due to enhanced processing capabilities from continuous investment, with strong demand expected to persist in Q2 - Automotive processing service demand improved compared to Q1 2023, benefiting from enhanced processing capabilities[8](index=8&type=chunk) - Strong automotive processing demand is anticipated to continue in Q2 2024[8](index=8&type=chunk) [Broader Manufacturing Sectors](index=2&type=section&id=Broader%20Manufacturing%20Sectors) Demand in broader manufacturing sectors, including industrial machinery and consumer products, slightly declined in Q1 2024 compared to Q1 2023, primarily due to weakness in agricultural equipment and consumer goods - Demand in broader manufacturing sectors slightly decreased compared to Q1 2023, primarily impacted by weaker demand for agricultural equipment and consumer products[9](index=9&type=chunk) - Demand in this sector is expected to remain relatively stable in Q2 2024[9](index=9&type=chunk) [Semiconductor Market](index=2&type=section&id=Semiconductor%20Market) The semiconductor market saw seasonal improvement in Q1 2024 after stabilizing in Q4 2023, though still below Q1 2023 levels, with a positive long-term outlook driven by the CHIPS Act - The semiconductor market saw seasonal improvement in Q1 2024 after stabilizing in Q4 2023, though still below Q1 2023 levels[10](index=10&type=chunk) - Demand is expected to be relatively stable in Q2 2024, with a positive long-term outlook due to the CHIPS Act and U.S. semiconductor manufacturing expansion[11](index=11&type=chunk) [Financial Position & Capital Allocation](index=3&type=section&id=Financial%20Position%20%26%20Capital%20Allocation) [Balance Sheet & Cash Flow](index=3&type=section&id=Balance%20Sheet%20%26%20Cash%20Flow) As of March 31, 2024, Reliance held **$934.9 million** in cash, **$1.15 billion** in total debt, and generated **$126.3 million** in cash flow from operations in Q1 2024 - As of March 31, 2024, cash and cash equivalents totaled **$934.9 million**, with total debt at **$1.15 billion**[12](index=12&type=chunk) - The **$1.5 billion** revolving credit facility had no outstanding borrowings[12](index=12&type=chunk) - Cash flow from operations in Q1 2024 generated **$126.3 million**[12](index=12&type=chunk) [Stockholder Return Activity](index=3&type=section&id=Stockholder%20Return%20Activity) Reliance increased its quarterly dividend by **10.0%** to **$1.10** per share in February 2024, marking its 31st increase since IPO and 65 consecutive years of cash dividends - On February 13, 2024, the company increased its regular quarterly dividend by **10.0%** to **$1.10** per share, an annualized rate of **$4.40** per share[13](index=13&type=chunk) - This marks the **31st dividend increase** since the company's 1994 IPO[13](index=13&type=chunk) - The company has paid regular quarterly cash dividends for **65 consecutive years** without reduction or suspension[13](index=13&type=chunk) [Acquisitions](index=3&type=section&id=Acquisitions) Reliance completed three acquisitions—American Alloy Steel, Mid-West Materials, and Cooksey Iron & Metal—to enhance processing capabilities, expand product portfolios, and strengthen market presence, collectively contributing **$487 million** in 2023 net sales - Acquisition of American Alloy Steel, Inc., a leading distributor of specialty carbon and alloy steel plate and round bar, was completed on April 1, 2024, with approximately **$310 million** in 2023 net sales[14](index=14&type=chunk) - Acquisition of Mid-West Materials, Inc., a flat-rolled steel service center serving North American OEMs, was completed on April 1, 2024, with approximately **$87 million** in 2023 net sales[15](index=15&type=chunk) - Acquisition of Cooksey Iron & Metal Company, which processes and distributes finished steel products, was completed on February 1, 2024, with approximately **$90 million** in 2023 net sales[16](index=16&type=chunk) [Business Outlook](index=3&type=section&id=Business%20Outlook) Reliance anticipates a stronger-than-normal seasonal recovery in Q2 2024, with volume growth of **2.5% to 4.5%**, but expects average selling prices to decline, leading to non-GAAP diluted EPS between **$4.70** and **$4.90** - Q2 2024 volume is projected to increase **2.5% to 4.5%** sequentially, with approximately **2%** attributed to recent acquisitions[17](index=17&type=chunk) - Average selling price per ton is expected to decrease **1% to 3%** sequentially in Q2 2024, potentially pressuring short-term gross margins[17](index=17&type=chunk) - Non-GAAP diluted EPS for Q2 2024 is anticipated to be between **$4.70** and **$4.90**[17](index=17&type=chunk) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Reliance, Inc. held a conference call and webcast on April 25, 2024, to discuss Q1 2024 financial results and business outlook, with replay information available for review - A conference call and webcast were held on April 25, 2024, to discuss Q1 2024 financial results and business outlook[18](index=18&type=chunk) - A replay of the conference call is available on the company's investor website for 90 days[19](index=19&type=chunk) [About Reliance, Inc.](index=4&type=section&id=About%20Reliance%2C%20Inc.) Founded in 1939, Reliance, Inc. is a leading global diversified metals solutions provider and North America's largest metals service center company, serving over 125,000 customers through 320+ locations - Founded in 1939, the company is a leading global diversified metals solutions provider and North America's largest metals service center company[20](index=20&type=chunk) - It serves over **125,000 customers** through **over 320 locations** across 40 states and 12 countries, offering value-added processing and over **100,000 metal products**[20](index=20&type=chunk) - Focusing on small-batch, quick-turnaround, and value-added processing, the average order size in 2023 was **$3,210**, with approximately **51%** of orders including value-added processing and **40%** delivered within 24 hours[20](index=20&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding Reliance's industry, business strategy, acquisitions, future growth, and profitability, subject to known and unknown risks and uncertainties - Forward-looking statements cover industry, business strategy, acquisitions, future growth and profitability, demand, and metal pricing[21](index=21&type=chunk) - Actual results may differ materially from projections due to significant factors, including unrealized acquisition benefits, labor constraints, supply chain disruptions, and macroeconomic conditions like inflation and recession[22](index=22&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[23](index=23&type=chunk) [Detailed Financial Statements](index=4&type=section&id=Detailed%20Financial%20Tables) This section presents unaudited consolidated financial statements, including income statements, balance sheets, cash flow statements, and non-GAAP reconciliations, providing a comprehensive view of the company's financial performance [First Quarter 2024 Major Commodity Metrics](index=4&type=section&id=First%20Quarter%202024%20Major%20Commodity%20Metrics) In Q1 2024, all major commodities, including carbon steel, aluminum, stainless steel, and alloy, saw sequential volume growth, but average selling prices per ton decreased year-over-year across all categories Volume (thousand tons; % change) | Commodity | Q1 2024 | Q4 2023 | Sequential Change (%) | Q1 2023 | YOY Change (%) | | :---------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Carbon Steel | 1,214.8 | 1,100.5 | 10.4% | 1,232.0 | (1.4%) | | Aluminum | 81.8 | 76.3 | 7.2% | 86.1 | (5.0%) | | Stainless Steel | 75.5 | 65.5 | 15.3% | 76.8 | (1.7%) | | Alloy | 33.0 | 29.2 | 13.0% | 36.3 | (9.1%) | Average Selling Price per Ton (% change) | Commodity | Q1 2024 ($) | Q4 2023 ($) | Sequential Change (%) | Q1 2023 ($) | YOY Change (%) | | :---------- | :----------------- | :----------------- | :------------- | :----------------- | :------------- | | Carbon Steel | 2,012.9 | 1,805.2 | 11.5% | 2,128.5 | (5.4%) | | Aluminum | 596.1 | 553.9 | 7.6% | 670.2 | (11.1%) | | Stainless Steel | 559.9 | 517.9 | 8.1% | 657.3 | (14.8%) | | Alloy | 171.9 | 152.3 | 12.9% | 191.4 | (10.2%) | [Sales by Product](index=5&type=section&id=Sales%20by%20Product) Carbon steel products dominated Q1 2024 sales at **53%**, followed by aluminum (**16%**) and stainless steel (**15%**), with sales proportions remaining relatively stable across product categories Sales by Product (Percentage of Total Net Sales) | Product Category | Q1 2024 | Q4 2023 | Q1 2023 | | :-------------------------------- | :------------- | :------------- | :------------- | | Carbon Steel | 53% | 52% | 52% | | Aluminum | 16% | 16% | 16% | | Stainless Steel | 15% | 15% | 16% | | Alloy | 5% | 5% | 5% | | Miscellaneous | 5% | 6% | 5% | | Processing & Logistics | 4% | 4% | 4% | | Copper & Brass | 2% | 2% | 2% | | Other | 11% | 12% | 11% | | **Total** | **100%** | **100%** | **100%** | [Unaudited Consolidated Statements of Income](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Income) Reliance's Q1 2024 net sales decreased **8.1%** year-over-year to **$3.6448 billion**, resulting in reduced operating income and net income attributable to Reliance, with diluted EPS falling to **$5.23** Unaudited Consolidated Statements of Income (For the Three Months Ended March 31, million USD, except per share amounts) | Metric | 2024 | 2023 | | :---------------------------------------------------- | :----- | :----- | | Net Sales | 3,644.8 | 3,965.3 | | Cost of Sales | 2,516.6 | 2,739.3 | | Warehousing, Delivery, Selling, General & Administrative Expenses (SG&A) | 671.5 | 651.3 | | Depreciation and Amortization | 63.6 | 61.1 | | Operating Income | 393.1 | 513.6 | | Earnings Before Interest and Taxes (EBIT) | 396.2 | 508.5 | | Net Income Attributable to Reliance | 302.9 | 383.1 | | Diluted EPS | 5.23 | 6.43 | | Cash Dividends Per Share | 1.10 | 1.00 | [Unaudited Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) As of March 31, 2024, Reliance's total assets increased to **$10.7122 billion** from **$10.4803 billion** at December 31, 2023, driven by higher accounts receivable and inventory, while total equity also grew Unaudited Consolidated Balance Sheets (million USD, except share amounts) | Metric | March 31, 2024 | December 31, 2023 | | :------------------------------------ | :------------- | :------------- | | Cash and Cash Equivalents | 934.9 | 1,080.2 | | Accounts Receivable, Net | 1,686.0 | 1,472.4 | | Inventories | 2,166.9 | 2,043.2 | | Total Current Assets | 4,923.4 | 4,771.8 | | Property, Plant & Equipment, Net | 2,309.3 | 2,248.4 | | Goodwill | 2,125.3 | 2,111.1 | | Total Assets | 10,712.2 | 10,480.3 | | Total Current Liabilities | 857.4 | 843.6 | | Long-Term Debt | 1,142.6 | 1,141.9 | | Total Liabilities | 2,769.5 | 2,747.5 | | Total Equity Attributable to Reliance Stockholders | 7,932.4 | 7,722.3 | | Total Equity | 7,942.7 | 7,732.8 | [Unaudited Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow from operations in Q1 2024 significantly decreased to **$126.3 million** from **$384.6 million** in Q1 2023, primarily due to changes in accounts receivable and inventory, while financing activities used less cash Unaudited Consolidated Statements of Cash Flows (For the Three Months Ended March 31, million USD) | Metric | 2024 | 2023 | | :------------------------------------------ | :----- | :----- | | Net Cash Provided by Operating Activities | 126.3 | 384.6 | | Net Cash Used in Investing Activities | (177.4) | (102.6) | | Net Cash Used in Financing Activities | (90.3) | (639.2) | | Decrease in Cash and Cash Equivalents | (145.3) | (357.2) | | Cash and Cash Equivalents at End of Period | 934.9 | 816.2 | [Non-GAAP Reconciliation](index=9&type=section&id=Non-GAAP%20Reconciliation) This section reconciles GAAP to non-GAAP financial measures, including net income, diluted EPS, pre-tax income, and gross margin, by adjusting for restructuring, settlement, and non-core asset sale items to provide a comparable view of operating performance Non-GAAP Net Income and Diluted EPS Reconciliation (For the Three Months Ended March 31, million USD, except per share amounts) | Metric | Q1 2024 ($M) | Q4 2023 ($M) | Q1 2023 ($M) | Q1 2024 EPS | Q4 2023 EPS | Q1 2023 EPS | | :------------------------------------ | :------------------ | :------------------ | :------------------ | :----------------- | :----------------- | :----------------- | | Net Income Attributable to Reliance | 302.9 | 272.7 | 383.1 | 5.23 | 4.70 | 6.43 | | Restructuring Charges | 0.3 | 1.2 | — | 0.01 | 0.02 | — | | Non-Recurring Settlement Charges | 4.6 | — | — | 0.08 | — | — | | Gain (Loss) on Sale of Non-Core Assets | — | 1.0 | (4.8) | — | 0.02 | (0.08) | | Income Tax (Benefit) Expense Related to Above Items | (1.2) | (0.5) | 1.2 | (0.02) | (0.01) | 0.02 | | **Non-GAAP Net Income Attributable to Reliance** | **306.6** | **274.4** | **379.5** | **5.30** | **4.73** | **6.37** | Non-GAAP Pre-Tax Income Reconciliation (For the Three Months Ended March 31, million USD) | Metric | Q1 2024 ($M) | Q4 2023 ($M) | Q1 2023 ($M) | | :------------------------------------ | :------------------ | :------------------ | :------------------ | | Income Before Income Taxes | 396.2 | 333.3 | 508.5 | | Restructuring Charges | 0.3 | 1.2 | — | | Non-Recurring Settlement Charges | 4.6 | — | — | | Gain (Loss) on Sale of Non-Core Assets | — | 1.0 | (4.8) | | **Non-GAAP Pre-Tax Income** | **401.1** | **335.5** | **503.7** | Non-GAAP Gross Profit and Gross Margin Reconciliation (For the Three Months Ended March 31) | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :-------------------------- | :------------- | :------------- | :------------- | | Gross Profit - LIFO | $1,128.2 | $1,021.6 | $1,226.0 | | Non-GAAP Gross Profit | $1,128.2 | $1,021.8 | $1,226.0 | | LIFO Income | $(50.0) | $(59.5) | $(15.0) | | Non-GAAP Gross Profit - FIFO | $1,078.2 | $962.3 | $1,211.0 | | Gross Margin - LIFO | 31.0% | 30.6% | 30.9% | | Non-GAAP Gross Margin | 31.0% | 30.6% | 30.9% | | LIFO Income as a Percentage of Net Sales | (1.4%) | (1.8%) | (0.4%) | | Non-GAAP Gross Margin - FIFO | 29.6% | 28.8% | 30.5% | [Footnotes](index=11&type=section&id=Footnotes) This section defines and explains non-GAAP financial measures used in the report, including gross profit, gross margin, free cash flow, and leverage ratios, clarifying their calculation and management's rationale for their use - Gross profit and gross margin are non-GAAP financial measures as they exclude depreciation and amortization expenses related to sales[41](index=41&type=chunk) - Free cash flow is calculated as cash provided by operating activities less capital expenditures[42](index=42&type=chunk) - Net debt to total capital ratio and net debt to total debt to EBITDA ratio are leverage measures used by management to monitor debt levels[42](index=42&type=chunk)[43](index=43&type=chunk)

SCOTTSDALE, Ariz., April 11, 2024 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE:RS) announced today that it will report first quarter 2024 financial results for the period ended March 31, 2024, on Thursday, April 25, 2024, at 6:50 a.m. Eastern Time. Reliance management will host a conference call that same day at 11:00 a.m. Eastern Time. The call will be broadcast live over the Internet hosted on the Investors section of the Company's website at reliance.com. Reliance, Inc. First Quarter 2024 Conference Call Det ...

Core Points - Reliance, Inc. will report its first quarter 2024 financial results on April 25, 2024, at 6:50 a.m. Eastern Time [1] - A conference call will be held on the same day at 11:00 a.m. Eastern Time, which will be broadcast live on the company's website [1][2] - A replay of the conference call will be available from 2:00 p.m. Eastern Time on April 25, 2024, until 11:59 p.m. Eastern Time on May 9, 2024 [2] Company Overview - Reliance, Inc. is a leading global diversified metal solutions provider and the largest metals service center company in North America [3] - The company operates over 320 locations across 40 states and 12 countries, providing value-added metals processing services and distributing over 100,000 metal products to more than 125,000 customers [3] - In 2023, the average order size was $3,210, with approximately 51% of orders including value-added processing and about 40% delivered within 24 hours [3]