2018 Annual Report

Selected Consolidated Financial Data

In millions, except number of shares, which are reflected in thousands, and per share amounts. Year Ended December 31,

2018

2017

2016

2015

2014

Income Statement Data: Net sales

$11,534.5

$9,721.0 6,933.2 2,787.8 1,902.8

$8,613.4 6,023.1 2,590.3

$9,350.5 6,803.6 2,546.9

$10,451.6

Cost of sales (exclusive of depreciation and amortization expense)

8,253.0 3,281.5 2,091.8

7,830.6 2,621.0 1,789.8

Gross profit (1)

1,798.1

1,725.3

Warehouse, delivery, selling, general and administrative expense (2)

Depreciation and amortization expense

215.2

218.4

222.0 52.4 517.8

218.5

213.8

Impairment of long-lived assets

37.0

4.2

53.3

Operating income

937.5

662.4

549.8

617.4

Other expense (income): Interest expense

86.2

73.9

84.6

84.3

81.9

0.7

4.7

4.0

6.8

(10.8) 546.3 170.0 376.3

Other expense (income), net (2)

Income before income taxes

850.6 208.8 641.8

583.8 (37.2) 621.0

429.2 120.1 309.1

458.7 142.5 316.2

Provision (benefit) for income taxes (3)

Net income (3)

Less: Net income attributable to noncontrolling interests

8.1

7.6

4.8

4.7

4.8

$633.7

$613.4

$304.3

$311.5

$371.5

Net income attributable to Reliance (3)

Earnings Per Share: Diluted (3)

$8.75 $8.85

$8.34 $8.42

$4.16 $4.21 73,121 72,363

$4.16 $4.20

$4.73 $4.78

Basic (3)

Weighted average shares outstanding – diluted Weighted average shares outstanding – basic

72,441 71,621

73,539 72,851

74,902 74,096

78,616 77,683

Other Data: Cash flow provided by operations

$664.6

$399.0

$626.5

$1,025.0

$356.0

Capital expenditures

239.9

161.6

154.9

172.2 1.60

190.4

Cash dividends per share

2.00

1.80

1.65

1.40

Balance Sheet Data (December 31): Working capital

$2,585.9 8,044.9

$2,347.6

$2,032.5

$1,564.5

$2,458.3 7,822.4

Total assets

7,751.0

7,411.3

7,121.6

66.8

92.6

83.1

501.3

94.6

Short-term debt (4) Long-term debt (4)

2,141.1 4,671.6

1,809.6 4,667.1

1,847.2 4,148.8

1,428.9 3,914.1

2,209.6 4,099.0

Reliance stockholders' equity

(1) Gross profit, calculated as net sales less cost of sales, is a non-GAAP financial measure as it excludes depreciation and amortization expense associated with the corresponding sales. About half of our orders are basic distribution with no processing services performed. For the remainder of our sales orders, we perform “first-stage” processing, which is generally not labor intensive as we are simply cutting the metal to size. Because of this, the amount of related labor and overhead, including depreciation and amortization, is not significant and is excluded from our cost of sales. Therefore, our cost of sales is substantially comprised of the cost of the material we sell. We use gross profit as shown above as a measure of operating performance. Gross profit is an important operating and financial measure, as fluctuations in our gross profit can have a significant impact on our earnings. Gross profit, as presented, is not necessarily comparable with similarly titled measures for other companies. (2) The adoption of accounting rule changes in 2017 affected the presentation of pension costs. Prior year warehouse, delivery, selling, general and administrative expense and other expense (income), net have been retrospectively adjusted to conform to the current presentation. (3) 2017 includes a $207.3 million, or $2.82 per share, income tax benefit as a result of the Tax Cuts and Jobs Act of 2017. (4) Includes capital lease obligations.

6

2 0 1 8 R E L I A N C E S T E E L & A L U M I N U M CO . A N N UA L R E P O R T

Made with FlippingBook - professional solution for displaying marketing and sales documents online