Reliance(RS) - 2024 Q4 - Annual Results

Financial Performance - Annual net sales reached $13.84 billion, with tons sold increasing by 4.0% year-over-year[1] - The company achieved a strong annual gross profit margin of 29.7%[1] - Non-GAAP EPS for the year was $15.92, reflecting a decrease of 29.6% compared to the previous year[3] - Operating income for the twelve months ended December 31, 2024, was $1,160.0 million, down 33.3% from $1,739.5 million in 2023[32] - Net income for the year was $875.2 million, a decrease from $1,335.9 million in the previous year, representing a decline of approximately 34.5%[36] - Basic earnings per share attributable to Reliance stockholders for the twelve months ended December 31, 2024, was $15.70, down from $22.90 in 2023[32] - Net income for the twelve months ended December 31, 2024, was $878.0 million, compared to $1,340.1 million for the same period in 2023[40] Shareholder Returns - Quarterly dividend increased by 9.1% to $1.20 per share, resulting in an annual dividend of $4.80[1] - A quarterly cash dividend of $1.20 per share was declared, representing a 9.1% increase, with a current annual rate of $4.80 per share[17] - Cash dividends and dividend equivalents paid were $249.7 million, slightly higher than $238.1 million in the previous year, indicating a modest increase of about 6.7%[36] Stock Repurchase and Acquisitions - The company repurchased a record $1.09 billion of common stock in 2024, reducing outstanding shares by 6%[1] - In Q4 2024, Reliance repurchased 525,264 shares at an average cost of $271.11 per share, totaling $142.4 million[18] - Four acquisitions were completed in 2024, contributing approximately $400 million in annualized net sales[9] Cash Flow and Liquidity - Cash flow from operations for the year was $1.43 billion, marking the third highest in the company's history[9] - Cash flow from operations for Q4 2024 was $473.3 million, with a total of $1.43 billion for the full year, marking the third highest annual result[16] - Cash and cash equivalents significantly declined to $318.1 million in 2024 from $1,080.2 million in 2023[33] - Total current assets decreased to $3,895.5 million as of December 31, 2024, from $4,771.8 million in 2023[34] - Total cash and cash equivalents at the end of the year were $318.1 million, significantly lower than $1,080.2 million at the beginning of the year, indicating a decrease of approximately 70.5%[36] Debt and Liabilities - The company maintained a net debt-to-total capital ratio of 10.2%[3] - Total liabilities increased slightly to $2,791.2 million in 2024 from $2,747.5 million in 2023[34] - Total debt as of December 31, 2024, was $1,151.1 million, a decrease from $1,276.4 million in the previous quarter[39] Market Performance and Expectations - Tons sold in Q4 2024 decreased by 5.1% compared to Q3 2024, better than management's expectations[6] - In Q4 2024, tons sold increased by 6.7% year-over-year, totaling 1,185.0 thousand tons, while decreasing by 5.1% sequentially[10] - For the full year 2024, total tons sold increased by 4.0% to 4,921.0 thousand tons, surpassing the industry-wide decline of 2.0%[10][29] - Reliance expects tons sold to increase by 6.0% to 8.0% in Q1 2025 compared to Q4 2024, and by 3.0% to 5.0% year-over-year[20] - Demand in non-residential construction, Reliance's largest end market, is expected to remain healthy in Q1 2025 due to new projects[11] Profitability Metrics - Non-GAAP net income attributable to Reliance was $895.5 million, a slight decrease from $1,334.7 million, representing a decline of approximately 32.9%[38] - The diluted earnings per share (EPS) for the year was $15.56, down from $22.64, indicating a decrease of about 31.5%[38] - The company incurred impairment and restructuring charges of $25.1 million for the year, compared to $2.2 million in the previous year, reflecting a significant increase[38] - Gross profit margin - LIFO for the three months ended December 31, 2024, was 28.3%, down from 29.4% in the previous quarter[39] - Non-GAAP gross profit margin - FIFO for the three months ended December 31, 2024, was 28.8%, compared to 27.9% in the previous quarter[39] Other Financial Metrics - Net cash provided by operating activities was $1,429.8 million, down from $1,671.3 million, reflecting a decrease of about 14.5%[36] - The company reported a net cash used in investing activities of $803.7 million, compared to $483.9 million in the previous year, marking an increase of about 66.1%[36] - Free cash flow for the three months ended December 31, 2024, was $362.4 million, compared to $351.1 million in the previous quarter[40] - EBITDA for the three months ended December 31, 2024, was $1,460.6 million, down from $1,640.8 million in the previous quarter[40] - Net debt-to-EBITDA ratio remained stable at 0.6x for the three months ended December 31, 2024[40]