Reliance, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results and Unveils Corporate Rebranding

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]