Strengthening Our Core

2017 ANNUAL REPORT

11

SELECTED CONSOLIDATED FINANCIAL DATA

In millions, except share and per share data Year Ended December 31,

2017

2016

2015

2014

2013

Income Statement Data: Net sales

$9,721.0 6,933.2

$8,613.4 6,023.1

$9,350.5 $10,451.6

$9,223.8 6,826.2

Cost of sales (exclusive of depreciation and amortization expense)

6,803.6

7,830.6

Gross profit (1)

2,787.8 1,902.8

2,590.3 1,798.1

2,546.9 1,725.3

2,621.0 1,789.8

2,397.6 1,636.0

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

Depreciation and amortization expense

218.4

222.0

218.5

213.8

192.4

Impairment of long-lived assets

4.2

52.4

53.3

-

14.9

Operating income

662.4

517.8

549.8

617.4

554.3

Other expense (income): Interest expense

73.9

84.6

84.3

81.9

77.5

4.7

4.0

6.8

(10.8)

(1.5)

Other expense (income), net (2)

Income before income taxes

583.8

429.2 120.1 309.1

458.7 142.5 316.2

546.3 170.0 376.3

478.3 153.6 324.7

(37.2)

(Benefit) provision for income taxes (3)

621.0

Net income (3)

Less: Net income attributable to noncontrolling interests

7.6

4.8

4.7

4.8

3.1

$613.4

$304.3

$311.5

$371.5

$321.6

Net income attributable to Reliance (3)

Earnings Per Share: Diluted (3)

$8.34 $8.42

$4.16 $4.21

$4.16 $4.20

$4.73 $4.78

$4.14 $4.19

Basic (3)

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

73,539,424 73,120,918 74,902,064 78,615,939 77,646,192 72,851,021 72,362,513 74,096,349 77,682,943 76,844,912

Other Data: Cash flow provided by operations

$399.0

$626.5

$1,025.0

$356.0

$633.3

Capital expenditures

161.6

154.9

172.2

190.4

168.0

Cash dividends per share

1.80

1.65

1.60

1.40

1.26

Balance Sheet Data (December 31): Working capital

$2,347.6

$2,032.5

$1,564.5

$2,458.3

$2,165.5

Total assets

7,751.0

7,411.3

7,121.6

7,822.4

7,323.6

Short-term debt Long-term debt (4)

92.0

82.5

500.8

93.9

36.5

1,809.6 4,667.1

1,847.2 4,148.8

1,428.9 3,914.1

2,209.6 4,099.0

2,055.1 3,874.6

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. The majority 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) In 2017, we recognized a $207.3 million income tax benefit as a result of the Tax Cuts and Jobs Act of 2017. (4) Long-term debt includes the long-term portion of capital lease obligations.