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GROWING OUR FAMI LY
1
WE ARE A DIVERSE FAMILY OF COMPANIES.
WITH EACH NEW MEMBER COMES NEW VALUE.
Delivering exceptional results with our broad expertise and deep resources. Building and
maintaining strong partnerships in local markets and communities. Striving to create a working
environment that makes our employees proud. Innovating solutions to fit customers’ specific
needs. Acquiring successful companies that share our values and culture. Committed
to product and end-market diversity. Providing the highest quality of service. Always seeking
opportunities to improve. Through the years, the companies we have acquired have helped us
to meet our continuing goal of being not just the biggest, but the best. These are the (not-so)
secrets to our success.
(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, are not significant and are excluded from our cost of sales. Therefore, our cost of sales is primarily 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 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) Operating expenses include warehouse, delivery, selling, general and administrative expenses, depreciation and amortization expense, and impairment charge.
(3) Includes the long-term portion of capital lease obligations.
Selected Consolidated Financial Data
In millions, other than per share data
Year Ended December 31,
2013
2012
2011
2010
2009
Income Statement Data:
Net sales
$9,223.8
$8,442.3
$8,134.7
$6,312.8
$5,318.1
Cost of sales (exclusive of depreciation and amortization expense
included in operating expenses)
6,826.2
6,235.4
6,148.7
4,727.9
3,918.6
Gross profit
(1)
2,397.6
2,206.9
1,986.0
1,584.9
1,399.5
Operating expenses
(2)
1,845.7
1,547.7
1,413.2
1,224.2
1,149.1
Operating Income
551.9
659.2
572.8
360.7
250.4
Other income (expense):
Interest Expense
(77.5)
(58.4)
(59.8)
(61.2)
(67.5)
Other income (expense), net
3.9
8.6
(1.4)
(3.0)
12.6
Income before income taxes
478.3
609.4
511.6
296.5
195.5
Provision for income taxes
153.6
201.1
162.4
98.6
46.3
Net income
324.7
408.3
349.2
197.9
149.2
Less: Net income attributable to non controlling interests
3.1
4.8
5.4
3.5
1.0
Net income attributable to Reliance
$321.6
$403.5
$343.8
$194.4
$148.2
Earnings Per Share:
Net income per share attributable to Reliance shareholders - diluted
$4.14
$5.33
$4.58
$2.61
$2.01
Net income per share attributable to Reliance shareholders - basic
$4.19
$5.36
$4.60
$2.62
$2.02
Weighted average common shares outstanding - diluted
77.6
75.7
75.0
74.5
73.7
Weighted average common shares outstanding - basic
76.8
75.2
74.8
74.2
73.4
Other Data:
Cash flow from operations
$633.3
$601.9
$234.8
$214.1
$943.0
Capital Expenditures
168.0
214.0
156.4
111.4
69.9
Cash dividends per share
1.26
0.80
0.48
0.40
0.40
Balance Sheet Data
(December 31)
:
Working capital
$2,165.5
$1,699.2
$1,698.3
$1,192.3
$973.3
Total assets
7,341.0
5,857.7
5,605.9
4,668.9
4,306.8
Long-term debt
(3)
2,072.5
1,124.0
1,320.5
857.8
852.6
Reliance shareholders’ equity
3,874.6
3,558.4
3,143.9
2,823.7
2,606.4