Reliance-2023-AnnualReport-MoreThanMetal

In millions, except number of shares which are reflected in thousands and per share amounts. Year Ended December 31, 2023 2022 2021 SELECTED CONSOLIDATED FINANCIAL DATA

2020

2019

Income Statement Data: Net sales

$14,805.9

$17,025.0

$14,093.3

$8,811.9

$10,973.8

Cost of sales (exclusive of depreciation and amortization expense)

10,258.6

11,773.7

9,603.0

6,036.8

7,644.4

Gross profit (1)

4,547.3

5,251.3

4,490.3

2,775.1

3,329.4

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

2,562.4

2,504.2

2,306.5

1,874.0

2,095.4

245.4

240.2

230.2

227.3 108.0 565.8

219.3

Impairment expense Operating income

-

-

4.7

1.2

1,739.5

2,506.9

1,948.9

1,013.5

Other (income) expense: Interest expense

40.1

62.3 14.2

62.7

62.9 24.7

85.0 (0.8)

Other (income) expense, net

(41.3)

3.1

Income before income taxes

1,740.7 400.6 1,340.1

2,430.4

1,883.1 465.7 1,417.4

478.2 105.8 372.4

929.3 223.2 706.1

Income tax provision

586.2

Net income

1,844.2

Less: net income attributable to noncontrolling interests

4.2

4.1

4.4

3.3

4.6

Net income attributable to Reliance

$1,335.9

$1,840.1

$1,413.0

$369.1

$701.5

Earnings Per Share: Basic

$22.90 $22.64 58,328 59,015

$30.39 $29.92 60,559 61,495

$22.35 $21.97 63,217 64,327

$5.74 $5.66 64,328 65,263

$10.49 $10.34 66,885 67,855

Diluted

Weighted average shares outstanding - basic Weighted average shares outstanding - diluted

Other Data: Cash flow provided by operations

$1,671.3

$2,118.6

$799.4

$1,173.0

$1,301.5

Capital expenditures

468.8

341.8 3.50

236.6

172.0 2.50

242.2

Cash dividends per share

4.00

2.75

2.20

Balance Sheet Data (December 31): Working capital

$3,928.2 10,480.3

$3,511.3 10,329.9 508.2 1,139.4 7,095.9

$3,095.1 9,536.0

$2,499.8

$2,334.9

Total assets

8,106.8

8,131.1

Short-term debt Long-term debt

0.3

5.0

6.0

64.9

1,141.9

1,642.0 6,093.7

1,638.9 5,122.7

1,523.6 5,214.1

Total equity

7,732.8

(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 fromcost of sales. Therefore, our cost of sales is substantially comprised of the cost of thematerial we sell. We use gross profit as shown above as ameasure 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.

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