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12
REL I ANCE STEEL & ALUMINUM CO.
GROWING OUR FAMI LY
13
1) The portion of American Steel’s earnings attributable to our 49.5% partner is included in non-controlling interests through December 31, 2005. On January 3, 2006
we acquired our partner’s interest, increasing our ownership to 100%.
(2) Operating income represents net sales less cost of sales, warehouse, delivery, selling, general and administrative expenses, and depreciation and amortization
expense. Certain reclassifications were made to 2007 and prior years to include amortization expense in the calculation of Operating income. In 2012 and 2013, the
calculation of Operating income also includes impairment charges.
(3) The adoption of accounting rule changes in 2009 affected the presentation of non-controlling interests. Prior year pretax income and margin amounts have been
retrospectively adjusted to conform to the current presentation.
(4) Amounts have been retrospectively adjusted to reflect the July 2006 2-for-1 stock split. Per share amounts based upon weighted average shares are on a diluted basis.
(5) 2006 includes the issuance of approximately 9 million shares related to an acquisition.
(6) Long-term debt includes the long-term portion of capital lease obligations.
(7) Book value per share is calculated as Reliance shareholders’ equity divided by number of common shares outstanding as of December 31 of each year.
(8) Return on Reliance shareholders’ equity is based on the beginning of year equity amount, except for 2006 which is adjusted for a 2006 acquisition using $360.5 million of
common stock as consideration.
(9) Net debt-to-total capital ratio is calculated as total debt (net of cash) divided by Reliance shareholders’ equity plus total debt (net of cash).
(10) Gross profit, calculated as net sales less cost of sales, and gross profit margin, calculated as gross profit divided by net sales, are non-GAAP financial measures as
they exclude 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 primarily comprised of the cost of the material we sell. Gross profit margin is an important operating and financial measure, as
fluctuations in our gross profit margin can have a significant impact on our earnings. Gross profit margin, as presented, is not necessarily comparable with similarly
titled measures for other companies.
Selected Consolidated Financial Data
Amounts in millions other than per share data
Year Ended December 31,
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Income Statement Data:
(1)
Net sales
$9,223.8
$8,442.3
$8,134.7
$6,312.8
$5,318.1
$8,718.8
$7,255.7
$5,742.6
$3,367.1
$2,943.0
$1,882.9
Operating income
(2)
551.9
659.2
572.8
360.7
250.4
853.0
723.5
627.4
363.5
303.7
77.8
Net income attributable to Reliance
321.6
403.5
343.8
194.4
148.2
482.8
408.0
354.5
205.4
169.7
34.0
Pretax income
(3)
478.3
609.4
511.6
296.5
195.5
766.6
654.7
571.4
342.0
279.2
53.9
Income taxes
153.6
201.1
162.4
98.6
46.3
282.9
246.4
216.6
127.8
100.2
20.8
Weighted average shares
outstanding - diluted
(4), (5)
77.6
75.7
75.0
74.5
73.7
73.6
76.1
73.6
66.2
65.4
63.7
Balance Sheet Data:
Current assets
$2,738.9
$2,277.4
$2,274.7
$1,700.9
$1,390.9
$2,302.4
$1,721.4
$1,675.4
$847.3
$733.2
$544.6
Working capital
2,165.5
1,699.2
1,698.3
1,192.3
973.3
1,652.2
1,121.5
1,124.7
513.5
458.5
341.8
Net fixed assets
1,603.9
1,240.7
1,105.5
1,025.3
981.3
998.7
824.6
742.7
479.7
458.8
466.9
Total assets
7,341.0
5,857.7
5,605.9
4,668.9
4,306.8
5,195.5
3,983.5
3,614.2
1,769.1
1,563.3
1,369.4
Current liabilities
573.4
578.2
576.4
508.6
417.6
650.2
599.9
550.7
333.8
274.7
202.8
Long-term debt
(6)
2,072.5
1,124.0
1,320.5
857.8
852.6
1,675.6
1,013.3
1,088.1
306.8
380.9
469.3
Total Reliance shareholders’ equity
3,874.6
3,558.4
3,143.9
2,823.7
2,606.4
2,431.4
2,106.2
1,746.4
1,029.9
822.6
647.6
Per Share Data:
(4)
Earnings - diluted
$4.14
$5.33
$4.58
$2.61
$2.01
$6.56
$5.36
$4.82
$3.10
$2.60
$0.53
Dividends
$1.26
$0.80
$0.48
$0.40
$0.40
$0.40
$0.32
$0.22
$0.19
$0.13
$0.12
Book value
(7)
$49.99
$46.82
$41.92
$37.83
$35.34
$33.17
$28.12
$23.07
$15.56
$12.59
$10.05
Ratio Analysis:
Return on Reliance shareholders’ equity
(8)
9.0%
12.8%
12.2%
7.5%
6.1%
22.9%
23.4%
27.3%
25.0%
26.2%
5.6%
Current ratio
4.8
3.9
3.9
3.3
3.3
3.5
2.9
3.0
2.5
2.5
2.7
Net debt-to-total capital ratio
(9)
34.3%
23.8%
28.4%
23.5%
25.6%
41.4%
32.4%
37.6%
23.8%
33.6%
43.1%
Gross profit margin
(10)
26.0%
26.1%
24.4%
25.1%
26.3%
24.8%
25.3%
26.3%
27.3%
28.3%
27.1%
Operating income margin
(2)
6.0%
7.8%
7.0%
5.7%
4.7%
9.8%
10.0%
10.9%
10.8%
10.3%
4.1%
Pretax income margin
(3)
5.2%
7.2%
6.3%
4.7%
3.7%
8.8%
9.0%
10.0%
10.2%
9.5%
2.9%
Net income margin - Reliance
3.5%
4.8%
4.2%
3.1%
2.8%
5.5%
5.6%
6.2%
6.1%
5.8%
1.8%