Reliance, Inc. (RS) posted profits of $272.7 million or $4.70 per share in fourth-quarter 2023, down from $350.5 million or $5.88 per share in the year-ago quarter.Barring one-time items, the company recorded earnings of $4.73 per share. It topped the Zacks Consensus Estimate of $3.86.The company recorded net sales of $3,337.3 million, down around 7.6% year over year. The top line beat the Zacks Consensus Estimate of $3,275.1 million.The company officially rebranded as Reliance, Inc., departing from its for ...

Reliance Steel & Aluminum Co. (NYSE:RS) Q4 2023 Earnings Conference Call February 15, 2024 11:00 AM ET Company Participants Kim Orlando – ADDO Investor Relations Karla Lewis – President and Chief Executive Officer Steve Koch – Executive Vice President and Chief Operating Officer Arthur Ajemyan – Senior Vice President and Chief Financial Officer Conference Call Participants Katja Jancic – BMO Capital Markets Phil Gibbs – KeyBanc Capital Markets Martin Englert – Seaport Research Partners Operator Greetings, a ...

Reliance, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results and Unveils Corporate Rebranding − Second highest annual EPS of $22.64; fourth quarter EPS of $4.70 − Second highest annual cash flow from operations of $1.67 billion − Repurchased $479.5 million of common stock in 2023 − Increased quarterly dividend 10.0% to $1.10 per share (annual: $4.40) − Completed acquisition of Cooksey Iron & Metal Company on February 1, 2024 − Announced pending acquisition of American Alloy Steel, Inc. on Febr ...

Group 1 - Reliance Steel & Aluminum Co. has signed a definitive agreement to acquire all outstanding equity interests and related real estate assets of American Alloy Steel, Inc. [1] - American Alloy operates five service centers and a plate fabrication business in the U.S., with annual net sales of approximately $310 million for the 12 months ended December 31, 2023 [1][2] - The acquisition will enhance Reliance Steel's value-added processing capabilities, including burning, cutting, rolling, and bevelling [1][2] Group 2 - The transaction is expected to be completed within the next 60 days, pending regulatory approval and customary closing conditions [2] - The current management team of American Alloy is likely to remain in place after the transaction [2] - Reliance Steel's shares have increased by 21.2% over the past year, contrasting with a 5.6% decline in its industry [4] Group 3 - Reliance Steel currently holds a Zacks Rank 2 (Buy) [5] - Other better-ranked stocks in the basic materials sector include United States Steel Corporation, Carpenter Technology Corporation, and Alpha Metallurgical Resources Inc. [5][6] - United States Steel has a Zacks Rank 1 (Strong Buy) and has seen a 56.1% increase in shares over the past year [5]

Core Insights - Reliance, Inc. reported its second highest annual earnings per share (EPS) of $22.64 and a fourth quarter EPS of $4.70 [1] - The company achieved a second highest annual cash flow from operations of $1.67 billion [1] - Reliance completed the acquisition of Cooksey Iron & Metal Company and announced a pending acquisition of American Alloy Steel, Inc. [1][17][18] - The company rebranded to Reliance, Inc. to reflect its evolution beyond just steel and aluminum [1][19] Financial Performance - Net sales for Q4 2023 were $3,337.3 million, a decrease of 7.9% from Q3 2023 and a 13.0% decline year-over-year [2] - Gross profit for Q4 2023 was $1,021.6 million, down 5.1% sequentially and 13.4% year-over-year [2] - The gross profit margin for Q4 2023 was 30.6%, slightly up from 29.7% in Q3 2023 but down from 31.3% in Q4 2022 [2] - Net income attributable to Reliance for Q4 2023 was $272.7 million, a decrease of 7.6% from Q3 2023 and 22.2% from Q4 2022 [3] Cash Flow and Capital Allocation - Cash provided by operations in Q4 2023 was $525.6 million, a 12.8% increase from Q3 2023 but a 21.1% decrease year-over-year [4] - Free cash flow for 2023 was $1,202.5 million, down 32.3% from 2022 [5] - The company repurchased $479.5 million of common stock in 2023 and increased its quarterly dividend by 10.0% to $1.10 per share [1][15][16] Acquisitions - The acquisition of Cooksey Iron & Metal Company was completed on February 1, 2024, with annual net sales of approximately $90 million [17] - Reliance has entered into a definitive agreement to acquire American Alloy Steel, Inc., which had annual net sales of approximately $310 million [18] Market Demand and Outlook - Tons sold in Q4 2023 were 1,354.2 thousand, a decrease of 4.7% from Q3 2023 but an increase of 4.9% year-over-year [7] - The company expects tons sold to increase by 9% to 11% in Q1 2024, with average selling prices projected to rise by 1.0% to 3.0% [21] - Demand in non-residential construction and commercial aerospace remained strong, with expectations for continued growth in these sectors [10][11]

Core Viewpoint - Reliance Steel & Aluminum Co. has announced a definitive agreement to acquire American Alloy Steel, enhancing its capabilities in specialty carbon and alloy steel distribution and processing [1][2]. Company Overview - Reliance Steel & Aluminum Co. is a leading global diversified metal solutions provider and the largest metals service center company in North America, with over 315 locations in 40 states and 12 countries [3]. - The company distributes more than 100,000 metal products to over 125,000 customers across various industries, focusing on small orders with quick turnaround and value-added processing services [3]. Acquisition Details - The acquisition of American Alloy, which reported annual net sales of approximately $310 million for the year ending December 31, 2023, is expected to close within 60 days, pending regulatory approval [1][2]. - American Alloy operates five service centers in the U.S. and has a joint venture in Canada, serving customers in military, infrastructure, power generation, and other sectors [1][2]. - The addition of American Alloy will enhance Reliance's value-added processing capabilities, including burning, cutting, rolling, and beveling [1][2]. Strategic Implications - The acquisition is anticipated to strengthen Reliance's product portfolio by adding specialty carbon steel plate and new fabrication capabilities [2]. - Reliance aims to leverage collaboration between American Alloy and its existing companies to expand product and service offerings [2].

Core Viewpoint - Reliance Steel & Aluminum Co. has acquired Cooksey Iron & Metal Co., enhancing its presence in the Southeastern market and expanding its service capabilities [1][2]. Company Overview - Cooksey Iron & Metal Co. is a metals service center that processes and distributes finished steel products, with annual net sales of approximately $90 million for the 12 months ending December 31, 2023 [1]. - Cooksey operates in multiple states including Georgia, Florida, Alabama, and South Carolina, serving a diverse customer base [1]. Market Position and Performance - The acquisition of Cooksey strengthens Reliance Steel's position in the fast-growing Southeastern market, known for premium customer service and high-quality products [2]. - Reliance Steel's shares have increased by 24.3% over the past year, contrasting with a 2.7% decline in its industry [2]. Demand and Sales Projections - Reliance Steel anticipates healthy underlying demand in its end markets for the fourth quarter of 2023, projecting year-over-year growth in tons sold between 3.5% and 5.5% [2]. - A sequential decline of 4-6% in tons sold is expected, consistent with typical seasonal patterns [2]. Pricing and Profit Margins - The company expects average selling prices per ton sold in the fourth quarter of 2023 to decrease by 4% to 6% compared to the third quarter [3]. - A temporary and modest reduction in gross profit margin is projected due to declining price trends [3]. Earnings Forecast - Reliance Steel projects adjusted earnings per share in the range of $3.70 to $3.90 for the fourth quarter [3].

SCOTTSDALE, Ariz., Feb. 02, 2024 (GLOBE NEWSWIRE) -- Reliance Steel & Aluminum Co. (NYSE:RS) announced that it has acquired all the outstanding equity interests of Cooksey Iron & Metal Co., Inc. ("Cooksey"), a metals service center that processes and distributes finished steel products, including tubing, beams, plates and bars. Headquartered in Tifton, Georgia and founded in 1917, Cooksey operates three locations, servicing a diverse range of customers including trailer manufacturers, metal building fabrica ...

SCOTTSDALE, Ariz., Feb. 01, 2024 (GLOBE NEWSWIRE) -- Reliance Steel & Aluminum Co. (NYSE:RS) announced today that it will report fourth quarter and full year 2023 financial results for the period ended December 31, 2023, on Thursday, February 15, 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 www.rsac.com. Reliance Steel & A ...

SCOTTSDALE, Ariz., Feb. 01, 2024 (GLOBE NEWSWIRE) -- Reliance Steel & Aluminum Co. (NYSE:RS) announced today that it will report fourth quarter and full year 2023 financial results for the period ended December 31, 2023, on Thursday, February 15, 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 www.rsac.com. Reliance Steel & A ...