UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-13122


(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)		95-1142616 (I.R.S. Employer Identification No.)

16100 N. 71st Street, Suite 400

Scottsdale, Arizona 85254

(Address of principal executive offices, including zip code)

(480) 564-5700

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	RS	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 28, 2023, there were 58,793,188 shares of the registrant’s common stock, $0.001 par value, outstanding.

Table of Contents

RELIANCE STEEL & ALUMINUM CO.

TABLE OF CONTENTS


PART I — FINANCIAL INFORMATION
	Item 1.	Financial Statements	1
		Unaudited Consolidated Balance Sheets	1
		Unaudited Consolidated Statements of Income	2
		Unaudited Consolidated Statements of Comprehensive Income	3
		Unaudited Consolidated Statements of Equity	4
		Unaudited Consolidated Statements of Cash Flows	5
		Notes to Unaudited Consolidated Financial Statements	6
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
	Item 4.	Controls and Procedures	21

PART II — OTHER INFORMATION
	Item 1.	Legal Proceedings	21
	Item 1A.	Risk Factors	21
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21
	Item 3.	Defaults Upon Senior Securities	22
	Item 4.	Mine Safety Disclosures	22
	Item 5.	Other Information	22
	Item 6.	Exhibits	23

SIGNATURE			24

Table of Contents

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

RELIANCE STEEL & ALUMINUM CO.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in millions, except number of shares which are reflected in thousands and par value)


	March 31,		December 31,
	2023		2022*
ASSETS
Current assets:
Cash and cash equivalents	$	816.2	$	1,173.4
Accounts receivable, less allowance for credit losses of $28.7 at March 31, 2023 and $26.1 at December 31, 2022		1,800.3		1,565.7
Inventories		1,981.4		1,995.3
Prepaid expenses and other current assets		114.2		115.6
Income taxes receivable		—		36.6
Total current assets		4,712.1		4,886.6
Property, plant and equipment:
Land		263.3		262.7
Buildings		1,381.0		1,359.3
Machinery and equipment		2,507.9		2,446.9
Accumulated depreciation		(2,127.4)		(2,094.3)
Property, plant and equipment, net		2,024.8		1,974.6
Operating lease right-of-use assets		217.3		216.4
Goodwill		2,106.1		2,105.9
Intangible assets, net		1,008.0		1,019.6
Cash surrender value of life insurance policies, net		37.6		42.0
Other assets		97.3		84.8
Total assets	$	10,203.2	$	10,329.9

LIABILITIES AND EQUITY

Current liabilities:
Accounts payable	$	545.0	$	412.4
Accrued expenses		113.7		118.8
Accrued compensation and retirement benefits		143.7		240.0
Accrued insurance costs		45.2		43.4
Current maturities of long-term debt and short-term borrowings		8.2		508.2
Current maturities of operating lease liabilities		53.2		52.5
Income taxes payable		66.4		—
Total current liabilities		975.4		1,375.3
Long-term debt		1,140.2		1,139.4
Operating lease liabilities		165.5		165.2
Long-term retirement benefits		29.6		26.1
Other long-term liabilities		61.9		51.4
Deferred income taxes		476.2		476.6
Commitments and contingencies
Equity:
Preferred stock, $0.001 par value: 5,000 shares authorized; none issued or outstanding		—		—
Common stock and additional paid-in capital, $0.001 par value and 200,000 shares authorized
Issued and outstanding shares—58,840 at March 31, 2023 and 58,787 at December 31, 2022		0.1		0.1
Retained earnings		7,432.1		7,173.6
Accumulated other comprehensive loss		(86.5)		(86.3)
Total Reliance stockholders’ equity		7,345.7		7,087.4
Noncontrolling interests		8.7		8.5
Total equity		7,354.4		7,095.9
Total liabilities and equity	$	10,203.2	$	10,329.9

* Amounts derived from audited financial statements.

See accompanying notes to unaudited consolidated financial statements.

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RELIANCE STEEL & ALUMINUM CO.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except number of shares which are reflected in thousands and per share amounts)


	Three Months Ended March 31,
	2023		2022
Net sales	$	3,965.3	$	4,485.8

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)		2,739.3		3,098.7
Warehouse, delivery, selling, general and administrative (“SG&A”)		651.3		611.9
Depreciation and amortization		61.1		59.1
		3,451.7		3,769.7

Operating income		513.6		716.1

Other (income) expense:
Interest expense		10.9		15.6
Other (income) expense, net		(5.8)		3.3
Income before income taxes		508.5		697.2
Income tax provision		124.1		172.6
Net income		384.4		524.6
Less: net income attributable to noncontrolling interests		1.3		1.3
Net income attributable to Reliance	$	383.1	$	523.3

Earnings per share attributable to Reliance stockholders:
Basic	$	6.51	$	8.46
Diluted	$	6.43	$	8.33

Shares used in computing earnings per share:
Basic		58,832		61,833
Diluted		59,534		62,784

See accompanying notes to unaudited consolidated financial statements.

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RELIANCE STEEL & ALUMINUM CO.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)


	Three Months Ended March 31,
	2023		2022
Net income	$	384.4	$	524.6
Other comprehensive income (loss):
Foreign currency translation gain		0.6		0.7
Postretirement benefit plan adjustments, net of tax		(0.8)		(0.1)
Total other comprehensive (loss) income		(0.2)		0.6
Comprehensive income		384.2		525.2
Less: comprehensive income attributable to noncontrolling interests		1.3		1.3
Comprehensive income attributable to Reliance	$	382.9	$	523.9

See accompanying notes to unaudited consolidated financial statements.

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RELIANCE STEEL & ALUMINUM CO.

UNAUDITED CONSOLIDATED STATEMENTS OF EQUITY

(in millions, except per share amounts)


	Three Months Ended March 31,
	2023		2022
Total equity, beginning balances	$	7,095.9	$	6,093.7

Common stock and additional paid-in capital:
Beginning balances		0.1		0.1
Stock-based compensation		13.5		11.8
Taxes paid related to net share settlement of restricted stock units		(37.2)		(17.1)
Repurchase of common shares		23.7		5.3
Ending balances		0.1		0.1

Retained earnings:
Beginning balances		7,173.6		6,155.3
Net income attributable to Reliance		383.1		523.3
Cash dividends and dividend equivalents		(62.0)		(56.7)
Repurchase of common shares		(62.6)		(22.4)
Ending balances		7,432.1		6,599.5

Accumulated other comprehensive loss:
Beginning balances		(86.3)		(68.9)
Other comprehensive (loss) income		(0.2)		0.6
Ending balances		(86.5)		(68.3)

Total Reliance stockholders' equity, ending balances		7,345.7		6,531.3

Noncontrolling interests:
Beginning balances		8.5		7.2
Comprehensive income		1.3		1.3
Dividends paid		(1.1)		(1.1)
Ending balances		8.7		7.4

Total equity, ending balances	$	7,354.4	$	6,538.7

Cash dividends declared per common share	$	1.00	$

SEC Form 10-Q filed by Reliance Steel & Aluminum Co.