Reliance(US:RS)2025-05-01 20:10Sales Performance - In Q1 2025, the company sold a record 1.63 million tons, a 9% increase year-over-year, while same-store tons sold rose by 5.6%[72] - Acquisitions in 2024 contributed $99.4 million to net sales in Q1 2025, compared to $16.1 million in Q1 2024[77] Financial Results - Net sales for Q1 2025 were $3,484.7 million, a decrease of 4.4% from $3,644.8 million in Q1 2024, primarily due to lower metals prices[79] - The gross profit margin for Q1 2025 was 29.7%, down from 31.0% in Q1 2024, reflecting a decline in average selling prices despite record tons sold[73] - Earnings per diluted share decreased to $3.74 in Q1 2025 from $5.23 in Q1 2024, attributed to lower metals prices[73] - Operating income for Q1 2025 was $274.4 million, or 7.9% of net sales, down from $393.1 million in Q1 2024, reflecting a 30.2% decline[90] Cash Flow and Investments - Cash flow from operations in Q1 2025 was $64.5 million, down from $126.3 million in Q1 2024, mainly due to lower net income[74] - Net cash provided by operations decreased to $64.5 million in Q1 2025, down $61.8 million from $126.3 million in Q1 2024, primarily due to a $103.3 million decline in net income[93] - Net cash used in investing activities decreased to $87.6 million in Q1 2025, down $89.8 million from $177.4 million in Q1 2024, mainly due to reduced capital expenditures[94] - Net cash used in financing activities decreased to $18.6 million in Q1 2025, down $71.7 million from $90.3 million in Q1 2024, with $330.0 million in net debt borrowings[96] Shareholder Returns - The company returned $318.4 million to stockholders in Q1 2025, including $253.2 million in share repurchases and $65.2 million in cash dividends, reflecting a 9.1% increase in the quarterly dividend rate[75] - The company declared a cash dividend of $1.20 per share for Q2 2025, marking a 9.1% increase from the previous dividend rate[97] - The company has remaining authorization to repurchase $1.02 billion of common stock under its $1.5 billion share repurchase program[99] Cost and Expenses - The cost of sales in Q1 2025 was $2,451.4 million, representing 70.3% of net sales, compared to 69.0% in Q1 2024[84] - SG&A expense for Q1 2025 was $690.2 million, representing 19.8% of net sales, an increase from 18.4% in Q1 2024, with a slight decrease in same-store SG&A expense[89] Market Conditions - The company experienced a decline in demand for its products due to lower commodity prices and economic uncertainties, impacting financial performance[67] - Gross profit margin declined from elevated levels in Q1 2024 but remained strong, with average selling price per ton sold improving in March 2025[87] Balance Sheet - As of March 31, 2025, the company had $277.8 million in cash and cash equivalents and a net debt-to-total capital ratio of 14.4%, up from 10.2% at the end of 2024[102] - Goodwill amounted to $2.17 billion as of March 31, 2025, representing approximately 21% of total assets and 30% of total equity[107] Pricing Trends - The average selling price per ton sold decreased by 12.2% to $2,143 in Q1 2025 from $2,442 in Q1 2024[79]