February 17, 2022 6:50 AM EDT | Source: Reliance Steel & Aluminum Co. Source: Reliance Steel & Aluminum Co. Reliance Steel & Aluminum Co. Reliance Steel & Aluminum Co. Источник: Reliance Steel & Aluminium Co. Source: Reliance Steel & Aluminum Co. Reliance Steel & Aluminium Co. Reliance Steel & Aluminum Co.资料来源：Reliance Steel & Aluminium Co.资料来源：Reliance Steel & Aluminum Co. Reliance Steel & Aluminium Co. Reliance Steel & Aluminum Co. Источник: Reliance Steel & Aluminium Co. Source: Reliance Steel & Aluminum Co. Reliance Steel & Aluminium Co. Reliance Steel & Aluminum Co.
- Record annual net revenue of $14.09 billion – Record annual gross profit of $4.49 billion driven by a record annual gross margin of 31.9% – Record annual pre-tax profit and margin of 1, $88 billion and 13.4% – Record annual EPS of $21.97, excluding GAAP EPS of $22.12. Record quarterly earnings per share of $6.64, non-GAAP earnings per share of $6.83. Repurchase of $323.5 million of Reliance common stock in 2021. Quarterly dividend increased 27.3% to $0.875 per share.
ЛОС-АНДЖЕЛЕС, 17 февраля 2022 г. (GLOBE NEWSWIRE) — Компания Reliance Steel & Aluminium Co. LOS ANGELES, February 17, 2022 (GLOBE NEWSWIRE) – Reliance Steel & Aluminum Co. (NYSE: RS) today released financial results for the fourth quarter and full year ended December 31, 2021.
“Reliance ended the year with strong results, with record numbers across almost every metric, driven by the resilience of our business model and the exceptional performance of our entire group of companies,” said Reliance CEO Jim Hoffman. challenges including the ongoing pandemic, supply chain disruptions and labor market strains, but the durability and effectiveness of our model is evident in our results Strong demand and favorable pricing trends for metals throughout 2021 coupled with our highly diversified product and end strong relationships with domestic manufacturing partners helped achieve record annual sales of $14.09 billion and record earnings per share of $21.97.”
Mr. Hoffman continued, “Our gross margin continues to be supported by managers in this area who have duly benefited from the significant investments we have made to improve and expand our value-added processing capabilities. In 2021, we serve just over 50% of our order book. Value-added processing services were provided, up from 49% in 2020. We believe our continued focus on value-added processing will continue to support our high gross margin levels and help stabilize our margins as prices decline.”
Mr. Hoffman concluded: “The strong cash flow generated by our model allows us to maintain a flexible and balanced capital allocation philosophy. In addition to investing $237 million in our business through capital expenditures, we completed the fourth quarter in 2021. Four acquisitions for a total acquisition consideration of $439 million and returned more than $500 million to our shareholders through dividends and repurchases of Reliance common stock.”
End Market Reviews Reliance serves a variety of end markets and offers a wide range of processing products and services, usually in small quantities when needed. In the fourth quarter of 2021, the company’s sales decreased by 5.7% compared to the third quarter of 2021, in line with Reliance’s expectations of a decline of 5-8%, in line with a typical fourth quarter seasonal release due to customer shutdowns related to with the holidays. Facilitated and fewer delivery days, but the added impact of reduced shifts due to labor shortages at Reliance, its customers and suppliers. The company continues to see underlying demand above fourth-quarter shipments, which bodes well for 2022.
Demand for non-residential buildings, including infrastructure, in the largest end-to-end market, Reliance, was in line with typical Q4 seasonal trends. Reliance is cautiously optimistic that demand for non-residential construction will continue to grow through 2022 in key areas in which the company is involved.
Demand for Reliance’s toll processing services for the automotive market remained solid in the fourth quarter despite supply chain challenges, including the continued impact of the global microchip shortage on production levels. Reliance is optimistic that demand for its toll processing services will remain stable throughout 2022.
Despite longer-than-expected seasonal shutdowns for many customers, as well as wider disruptions to customer supply chains, labor shortages and an unexpected surge in Omicron, fundamental heavy industry demand for agricultural and construction equipment remained strong. Reliance expects positive underlying demand trends in these industries to continue through much of 2022.
Despite global supply chain challenges, demand for semiconductors remains strong. The semiconductor segment remains one of Reliance’s strongest end markets and is expected to continue through 2022.
Demand for the commercial aerospace industry improved in the fourth quarter compared to the third quarter of 2021 as a recovery in activity led to an increase in tonnage sold. Reliance is cautiously optimistic that commercial aerospace demand will grow steadily throughout 2022 as the pace of construction picks up. Demand in the military, defense and space segments of Reliance’s aerospace business remained stable with a large lag that is expected to continue throughout the year.
Demand in the energy (oil and gas) market accelerated in the fourth quarter due to increased activity due to higher oil and gas prices. Reliance is cautiously optimistic that demand in this end market will continue to moderately improve in 2022.
Balance Sheet & Cash FlowAt December 31, 2021, Reliance had cash and cash equivalents of $300.5 million, total debt outstanding of $1.66 billion and a net debt-to-EBITDA ratio of 0.6x, with no outstanding borrowings under its $1.5 billion revolving credit facility. Balance Sheet & Cash FlowAt December 31, 2021, Reliance had cash and cash equivalents of $300.5 million, total debt outstanding of $1.66 billion and a net debt-to-EBITDA ratio of 0.6x, with no outstanding borrowings under its $1.5 billion revolving credit facility . Balance Sheet and Cash Flow As of December 31, 2021, Reliance had $300.5 million in cash and cash equivalents, $1.66 billion in total outstanding debt, and a Net Debt/EBITDA ratio of 0.6x , with no outstanding loans under the $1.5 billion revolving credit facility. . Balance sheet and cash flow As of December 31, 2021, Reliance had $300.5 million in cash and cash equivalents, $1.66 billion in total outstanding debt, and a Net Debt/EBITDA ratio of 0.6x and $1.5 billion in renewable assets. line of credit. While Reliance invested over $950 million in working capital in 2021, Reliance had operating cash flow of $393.8 million in the fourth quarter and $799.4 million for the full year. The company’s strong cash generation allows it to execute all aspects of a balanced and flexible capital allocation to deliver shareholder value through growth-oriented acquisitions and capital expenditures, as well as through regular quarterly dividends and opportunistic share buybacks in line with Strategy 2021.
Shareholder Return Event On February 15, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.875 per ordinary share, representing a 27.3% increase due on March 25, 2022 to shareholders of registered 11 March 2022. It has paid regular quarterly cash dividends for 62 consecutive years without reducing or stopping them. Since its initial public offering in 1994, it has increased its dividend 29 times.
During the fourth quarter of 2021, the company repurchased approximately 1.1 million shares of common stock at an average price of $156.85 per share for a total of $168.5 million. For all of 2021, the company repurchased about 2.1 million shares of common stock at an average price of $153.55 per share for a total of $323.5 million. Over the past five years, the company has repurchased about 12.8 million shares of common stock for a total of $1.22 billion at an average price of $95.54 per share.
Acquisitions As previously mentioned, Reliance completed four acquisitions in the fourth quarter of 2021 with a total deal value of approximately $439 million and total 2021 sales of approximately $1 billion. The four acquisitions combined generated approximately $171 million in sales in the fourth quarter of 2021.
Merfish UnitedReliance has acquired Merfish United, a leading premier distributor of tubular construction products in the United States, on October 1, 2021. Merfish positions Reliance in the neighboring industrial distribution market, expanding its offering beyond traditional metal service center offerings.
December 10, 2021 Nu-Tech Precision Metals Inc. Reliance has acquired Nu-Tech Precision Metals Inc., a manufacturer of stamped metals, prefabricated parts and custom welded components. Nu-Tech expands Reliance’s range of specialty metal products and supports business growth by serving the nuclear, aerospace and defense markets, among others.
Admiral Metals Service Company, Inc. On December 10, 2021, Reliance acquired Admiral Metals Servicenter Company, Inc., a leading distributor of non-ferrous metal products in the northeastern United States. Admiral Metals expands its Reliance product range with specialty non-ferrous products.
Rotax Metals Inc. Reliance acquired Rotax Metals, Inc., a metal service center specializing in copper, bronze and brass alloys, on December 17, 2021. Rotax will operate as a subsidiary of Yarde Metals, Inc., which is a wholly owned subsidiary of the company.
Corporate Development Artur Ajemyan was appointed Senior Vice President and Chief Financial Officer on February 15, 2022. Mr. Ajemyan has served as Vice President and CFO of Reliance since January 2021. Suzanne Bonner was also named Senior Vice President and Chief Information Officer on February 15, 2022. Ms. Bonner has served as Corporate Vice President and Chief Information Officer since July 2019.
Business Outlook Reliance remains optimistic about business conditions in the first quarter of 2022 given strong underlying demand in most major end markets. The company estimates that sales tonnage in the first quarter of 2022 will increase by 5-7% compared to the fourth quarter of 2021 due to increased seasonal traffic. However, weaker demand in January and early February due to the ongoing supply chain and disruptions to Reliance and its customers and suppliers due to Omicron’s growth led to a lower-than-usual tonne sales forecast for the first quarter. Despite the sharp drop in prices for hot rolled carbon steel and sheet products, Reliance expects its average selling price per tonne of sales in the first quarter of 2022 to decline by only 2-4% compared to the fourth quarter of 2021, driven by the company’s diversified product portfolio. , which will account for only about 10% of hot-rolled carbon coil and plate sales in 2021, remains strong in terms of prices for most of its products and the markets in which it is sold. Based on these expectations, Reliance estimates first quarter 2022 non-GAAP earnings per diluted share of $7.05 to $7.15.
Conference call details Today (February 17, 2022) at 11:00 AM ET / 8:00 AM PT, a conference call and web simulcast will be held to discuss Reliance’s fourth quarter and full year 2021 financial results, as well as business perspectives. To listen to the live broadcast by phone, dial (877) 407-0792 (U.S. and Canada) or (201) 689-8263 (international) approximately 10 minutes before the start and enter the conference number: 13726284. The conference will also be broadcast live via Internet in the investor section of the company’s website, Investor.rsac.com.
For those unable to attend the live broadcast, a callback will also be placed at (844) 512 from 2:00 pm ET until Thursday, March 3, 2022 at 11:59 pm ET. -2921 (US and Canada) or (412) 317-6671 (international) and enter the meeting ID: 13726284. The webcast will be available in the Investors section of the Reliance website (Investor.rsac.com) for 90 days.
About Reliance Steel & Aluminum Co.Founded in 1939 and headquartered in Los Angeles, California, Reliance Steel & Aluminum Co. About Reliance Steel & Aluminum Co.Founded in 1939 and headquartered in Los Angeles, California, Reliance Steel & Aluminum Co. (NYSE: RS) is a leading global diversified metal solutions provider and the largest metals service center company in North America. О Reliance Steel & Aluminium Co. About Reliance Steel & Aluminum Co. Основанная в 1939 году со штаб-квартирой в Лос-Анджелесе, штат Калифорния, компания Reliance Steel & Aluminium Co. Founded in 1939 and headquartered in Los Angeles, California, Reliance Steel & Aluminum Co. (NYSE: RS) is a leading global provider of diversified metal solutions and the largest metal service center in North America.关于Reliance Steel & Aluminium Co. Reliance Steel & Aluminum Co. Reliance Steel & Aluminium Co.（纽约证券交易所代码：RS）成立于1939 年，总部位于加利福尼亚州洛杉矶，是全球领先的多元化金属解决方案提供商和北美最大的金属服务中心公司。 Reliance Steel & Aluminium Co.（纽约证券交易所代码：RS）成立于1939 年，总部位于加利福尼亚州洛杉矶，是全球领先的多元化金属解决方案提供商和北美最大的金属服务中心公司。 О Reliance Steel & Aluminium Co. About Reliance Steel & Aluminum Co. Основанная в 1939 году со штаб-квартирой в Лос-Анджелесе, штат Калифорния, компания Reliance Steel & Aluminium Co. Founded in 1939 and headquartered in Los Angeles, California, Reliance Steel & Aluminum Co. (NYSE: RS) is the world’s leading provider of diversified metal solutions and North America’s largest metal services provider Center Company. With a network of approximately 315 offices in 40 states and 13 countries outside of the US, Reliance provides value-added metalworking services and distributes a full line of over 100,000 metal products to over 125,000 customers in a variety of industries. Reliance focuses on small orders, providing fast turnaround and additional processing services. In 2021, Reliance’s average order size is $3,050, with about 50% of orders including value-added processing and about 40% of orders delivered within 24 hours.
Пресс-релизы и другая информация Reliance Steel & Aluminium Co. Press releases and other information Reliance Steel & Aluminum Co. available on the company’s website at rsac.com.
Forward-Looking Statements Certain statements contained in this press release are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, discussions of Reliance’s industries, end markets, business strategies, acquisitions, and expectations regarding the company’s future growth and profitability, as well as the ability to generate industry-leading returns for shareholders, and the future. demand and prices for metals, as well as the company’s operating performance, profit margins, profitability, taxes, liquidity, litigation and capital resources. In some cases, you can identify perspective with terms such as “may”, “will”, “should”, “may”, “will”, “expect”, “plan”, “foresee”, “believe” and etc. , sexual statement. “estimate”, “predict”, “potential”, “provisionally”, “scale”, “intend”, and “continue”, the negative forms of these terms, and similar expressions.
These forward-looking statements are based on management’s estimates, forecasts and assumptions to date, which may not be accurate. Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future results. Due to various important factors, including, but not limited to, actions taken by Reliance and events beyond its control, including, but not limited to, the possibility that expected benefits from the acquisition of Reliance may not materialize as expected, labor restrictions, and disruptions in the supply chain, the impact of the pandemic, the ongoing pandemic, and changes in global and US economic conditions that could materially affect the company, its customers and suppliers, and the demand for the company’s products and services. The extent to which the ongoing COVID-19 pandemic could adversely affect the company’s operations will depend on the highly uncertain and unpredictable future events, including the duration of the pandemic, the re-emergence or mutation of the virus, and the measures taken to combat COVID-19. the spread of -19 or the impact of its treatment, including the speed and effectiveness of vaccination efforts, and the direct and indirect impact of the virus on global economic conditions and the health of the US economy. Deteriorating economic conditions due to COVID-19 or other causes could lead to a further or prolonged decline in demand for the company’s products and services, adversely affect its business, and could also affect financial and corporate lending markets, which could adversely affect Access. to the financing of the company or any terms of financing. The Company cannot currently predict the full impact of the COVID-19 pandemic and related economic impacts, but they could materially and adversely affect the Company’s business, financial condition, results of operations and cash flows.
The statements contained in this press release are current only as of their date of publication, and Reliance undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or for any other reason. than may be required by law, except for. Significant risks and uncertainties associated with Reliance’s operations are set out in “Paragraph 1A. Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and other documents that Reliance maintains or makes available to the Securities and Exchange Commission” “Risk Factors” .