2021 Reliance Annual Report

In millions, except number of shares which are reflected in thousands and per share amounts. Year Ended December 31, 2021 2020 2019 SELECTED CONSOLIDATED FINANCIAL DATA

2018

2017

Income Statement Data: Net sales

$14,093.3

$8,811.9

$10,973.8

$11,534.5

$9,721.0

Costofsales (exclusiveofdepreciationandamortizationexpense)

9,603.0

6,036.8

7,644.4

8,253.0

6,933.2

4,490.3

2,775.1

3,329.4

3,281.5

2,787.8

Gross profit (1)

Warehouse, delivery, selling, general and administrative expense Depreciation and amortization expense

2,306.5

1,874.0

2,095.4

2,091.8

1,902.8

230.2

227.3 108.0 565.8

219.3

215.2

218.4

Impairment of long-lived assets

4.7

1.2

37.0

4.2

Operating income

1,948.9

1,013.5

937.5

662.4

Other (income) expense: Interest expense

62.7

62.9 24.7

85.0 (0.8) 929.3 223.2 706.1

86.2

73.9

Other expense (income), net

3.1

0.7

4.7

Income before income taxes Income tax provision (benefit) (2)

1,883.1

478.2 105.8 372.4

850.6 208.8 641.8

583.8

465.7

37.2

Net income (2)

1,417.4

621.0

Less: net income attributable to noncontrolling interests

4.4

3.3

4.6

8.1

7.6

Net income attributable to Reliance (2)

$1,413.0

$369.1

$701.5

$633.7

$613.4

Earnings Per Share: Diluted (2)

$21.97 $22.35 64,327 63,217

$5.66 $5.74

$10.34 $10.49 67,855 66,885

$8.75 $8.85

$8.34 $8.42

Basic (2)

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

65,263 64,328

72,441 71,621

73,539 72,851

Other Data: Cash flow provided by operations

$799.4

$1,173.0

$1,301.5

$664.6

$399.0

Capital expenditures

236.6

172.0

242.2

239.9

161.6

Cash dividends per share

2.75

2.50

2.20

2.00

1.80

Balance Sheet Data (December 31): Working capital

$3,095.1 9,536.0

$2,499.8 8,106.8

$2,334.9 8,131.1

$2,585.9 8,044.9

$2,347.6 7,751.0

Total assets

Short-term debt (3) Long-term debt (3)

5.2

6.7

65.6

66.8

92.6

1,642.3 6,093.7

1,639.7 5,122.7

1,525.2 5,214.1

2,141.1 4,679.5

1,809.6 4,699.9

Total 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 expense, is not significant and is excluded from 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) 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. (3) Includes finance lease obligations.

RELIANCE STEEL & ALUMINUM CO. 2021 ANNUAL REPORT

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