Item 1. Financial Statements
Item 1. Financial Statements
RELIANCE , INC.
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,
2025
2024
Net sales
$
3,484.7
$
3,644.8
Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)
2,451.4
2,516.6
Warehouse, delivery, selling, general and administrative
690.2
671.5
Depreciation and amortization
68.7
63.6
3,210.3
3,251.7
Operating income
274.4
393.1
Other (income) expense:
Interest expense
11.5
9.7
Other expense (income), net
0.5
( 12.8 )
Income before income taxes
262.4
396.2
Income tax provision
61.9
92.4
Net income
200.5
303.8
Less: net income attributable to noncontrolling interests
0.8
0.9
Net income attributable to Reliance
$
199.7
$
302.9
Earnings per share attributable to Reliance stockholders:
Basic
$
3.76
$
5.28
Diluted
$
3.74
$
5.23
Shares used in computing earnings per share:
Basic
53,075
57,340
Diluted
53,399
57,882
See accompanying notes to unaudited consolidated financial statements.
1
Table of Contents
RELIANCE , INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
Three Months Ended March 31,
2025
2024
Net income
$
200.5
$
303.8
Other comprehensive income (loss):
Foreign currency translation gain (loss)
3.3
( 15.7 )
Postretirement benefit plan adjustments, net of tax
( 0.9 )
( 0.9 )
Total other comprehensive income (loss)
2.4
( 16.6 )
Comprehensive income
202.9
287.2
Less: comprehensive income attributable to noncontrolling interests
0.8
0.9
Comprehensive income attributable to Reliance
$
202.1
$
286.3
See accompanying notes to unaudited consolidated financial statements.
2
Table of Contents
RELIANCE, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in millions, except number of shares which are reflected in thousands and par value)
March 31,
December 31,
2025
2024*
ASSETS
Current assets:
Cash and cash equivalents
$
277.8
$
318.1
Accounts receivable, less allowance for credit losses of $ 26.0 and $ 23.2
1,671.8
1,342.0
Inventories
2,114.3
2,026.8
Prepaid expenses and other current assets
135.6
148.2
Income taxes receivable
11.5
60.4
Total current assets
4,211.0
3,895.5
Property, plant and equipment, net
2,573.4
2,544.9
Operating lease right-of-use assets
286.3
275.2
Goodwill
2,165.6
2,161.8
Intangible assets, net
997.0
1,007.2
Cash surrender value of life insurance policies, net
40.5
46.0
Other long-term assets
91.2
91.2
Total assets
$
10,365.0
$
10,021.8
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
520.8
$
361.9
Accrued expenses
136.7
144.4
Accrued compensation and retirement benefits
155.9
195.2
Accrued insurance costs
53.7
50.4
Current maturities of long-term debt
399.9
399.7
Current maturities of operating lease liabilities
62.9
61.4
Total current liabilities
1,329.9
1,213.0
Long-term debt
1,073.1
742.8
Operating lease liabilities
224.1
214.2
Long-term retirement benefits
28.2
26.9
Other long-term liabilities
58.9
56.8
Deferred income taxes
537.2
537.5
Total liabilities
3,251.4
2,791.2
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— 52,889 and 53,715
0.1
0.1
Retained earnings
7,214.5
7,334.7
Accumulated other comprehensive loss
( 112.8 )
( 115.2 )
Total Reliance stockholders’ equity
7,101.8
7,219.6
Noncontrolling interests
11.8
11.0
Total equity
7,113.6
7,230.6
Total liabilities and equity
$
10,365.0
$
10,021.8
* Derived from audited financial statements.
See accompanying notes to unaudited consolidated financial statements.
3
Table of Contents
RELIANCE , INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Three Months Ended March 31,
2025
2024
Operating activities:
Net income
$
200.5
$
303.8
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense
68.7
63.6
Stock-based compensation expense
12.2
13.0
Other
6.5
2.8
Changes in operating assets and liabilities (excluding effect of businesses acquired):
Accounts receivable
( 332.1 )
( 211.6 )
Inventories
( 85.9 )
( 114.6 )
Prepaid expenses and other assets
80.8
73.9
Accounts payable and other liabilities
113.8
( 4.6 )
Net cash provided by operating activities
64.5
126.3
Investing activities:
Acquisitions, net of cash acquired
—
( 53.7 )
Purchases of property, plant and equipment
( 86.9 )
( 108.7 )
Other
( 0.7 )
( 15.0 )
Net cash used in investing activities
( 87.6 )
( 177.4 )
Financing activities:
Proceeds from long-term debt borrowings
788.0
—
Principal payments on long-term debt
( 458.0 )
—
Cash dividends and dividend equivalents
( 65.2 )
( 65.3 )
Share repurchases
( 253.2 )
—
Taxes paid related to net share settlement of restricted stock units
( 11.5 )
( 23.9 )
Other
( 18.7 )
( 1.1 )
Net cash used in financing activities
( 18.6 )
( 90.3 )
Effect of exchange rate changes on cash and cash equivalents
1.4
( 3.9 )
Decrease in cash and cash equivalents
( 40.3 )
( 145.3 )
Cash and cash equivalents, beginning balance
318.1
1,080.2
Cash and cash equivalents, ending balance
$
277.8
$
934.9
Supplemental cash flow information:
Interest paid
$
10.0
$
8.8
Income taxes paid, net
$
13.9
$
10.2
See accompanying notes to unaudited consolidated financial statements.
4
Table of Contents
RELIANCE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF EQUITY
(in millions, except per share amounts)
Three Months Ended March 31,
2025
2024
Total equity, beginning balance
$
7,230.6
$
7,732.8
Common stock and additional paid-in capital:
Beginning balance
0.1
0.1
Stock-based compensation
12.2
13.0
Taxes paid related to net share settlement of restricted stock units
—
( 13.0 )
Repurchase of common shares
( 12.2 )
—
Ending balance
0.1
0.1
Retained earnings:
Beginning balance
7,334.7
7,798.9
Net income attributable to Reliance
199.7
302.9
Cash dividends
( 63.7 )
( 63.2 )
Dividend equivalents paid on vested restricted stock units
( 1.5 )
( 2.1 )
Taxes paid related to net share settlement of restricted stock units
( 11.5 )
( 10.9 )
Repurchase of common shares
( 241.0 )
—
Excise tax on repurchase of common shares
( 2.2 )
—
Ending balance
7,214.5
8,025.6
Accumulated other comprehensive loss:
Beginning balance
( 115.2 )
( 76.7 )
Other comprehensive income (loss)
2.4
( 16.6 )
Ending balance
( 112.8 )
( 93.3 )
Total Reliance stockholders' equity, ending balance
7,101.8
7,932.4
Noncontrolling interests:
Beginning balance
11.0
10.5
Comprehensive income
0.8
0.9
Dividend paid
—
( 1.1 )
Ending balance
11.8
10.3
Total equity, ending balance
$
7,113.6
$
7,942.7
Cash dividends declared per common share
$
1.20
$
1.10
See accompanying notes to unaudited consolidated financial statements.
5
Table of Contents
RELIANCE, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Summary of Significant Accounting Policies
Principles of Consolidation
The accompanying unaudited consolidated financial statements include the accounts of Reliance, Inc. and its subsidiaries (collectively “Reliance”, the “Company”, “we”, “our” or “us”). These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the consolidated financial statements reflect all material adjustments, which are of a normal recurring nature, necessary for presentation of financial statements for interim periods in accordance with U.S. GAAP. Interim results are not necessarily indicative of the results for a full year. All significant intercompany accounts and transactions have been eliminated. The ownership of the other interest holders of consolidated subsidiaries is reflected as noncontrolling interests. Investments in unconsolidated subsidiaries are recorded under the equity method of accounting. These consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and accompanying notes included in Reliance’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.
Inventories
The majority of our inventory is valued using the last-in, first-out (“LIFO”) method, which is not in excess of market. Under this method, older costs are included in inventory, which may be higher or lower than current costs. We estimate the effect of LIFO on interim periods by allocating the projected year-end LIFO calculation to interim periods on a pro rata basis.
Impact of Recently Issued Accounting Standards—Not Yet Adopted
Improvement to Income Tax Disclosures —In December 2023, the FASB issued changes to expand the disclosure requirements for income taxes. The changes require disaggregated information about our effective tax rate reconciliation and income taxes paid. These changes are effective for our annual periods beginning in our 2025 fiscal year. As the guidance only requires additional disclosure, there will be no impact to our results of operations, financial condition or cash flows.
Disaggregation of Income Statement Expenses —In November 2024, the FASB issued changes to expand the disclosure requirements for specific expense categories. The changes require disaggregated quantitative disclosure, in the notes to the financial statements, of prescribed expense categories included within relevant income statement expense captions. These changes will be effective beginning with our 2027 fiscal year and subsequent interim periods, with early adoption permitted. As the guidance only requires additional disclosure, there will be no impact to our results of operations, financial condition or cash flows.
Note 2. Acquisitions
2024 Acquisitions
We acquired each of Cooksey Iron & Metal Company on February 1, 2024; American Alloy Steel, Inc. and Mid-West Materials, Inc. on April 1, 2024; and certain assets of the FerrouSouth division of Ferragon Corporation on August 16,
6
Table of Contents
2024, with cash on hand. Included in our net sales for the first quarters of 2025 and 2024 were combined net sales of $ 99.4 million and $ 16.1 million, respectively, from our 2024 acquisitions.
Our 2024 acquisitions have increased our capacity and enhanced our product, customer and geographic diversification. We have not diversified outside our core business of providing metal distribution and processing solutions since inception.
The aggregate allocation of the purchase prices for our 2024 acquisitions to the fair values of the assets acquired and liabilities assumed was as follows:
(in millions)
Cash
$
5.6
Accounts receivable
44.9
Inventories
109.9
Prepaid expenses and other current assets
1.0
Property, plant and equipment
107.5
Operating lease right-of-use assets
19.2
Goodwill
59.5
Intangible assets subject to amortization
39.5
Intangible assets not subject to amortization
41.4
Total assets acquired
428.5
Deferred income taxes
6.7
Operating lease liabilities
15.1
Other current and long-term liabilities
32.7
Total liabilities assumed
54.5
Noncontrolling interest
0.3
Net assets acquired
$
373.7
Summary purchase price allocation information for all acquisitions
All of the acquisitions discussed in this note have been accounted for under the acquisition method of accounting and, accordingly, each purchase price has been allocated to the assets acquired and liabilities assumed based on the estimated fair values at the date of each acquisition. The accompanying consolidated statements of income include the revenues and expenses of each acquisition since its respective acquisition date. The consolidated balance sheets reflect the allocations of each acquisition’s purchase price as of March 31, 2025. The measurement periods for purchase price allocations do not exceed 12 months from the acquisition date.
As part of the purchase price allocations for the 2024 acquisitions, we allocated $ 41.4 million to the trade names acquired. We determined that each of the trade names acquired in connection with these acquisitions had indefinite lives since their economic lives are expected to approximate the life of each company acquired. We recorded other identifiable intangible assets related to customer relationships for the 2024 acquisitions of $ 39.3 million with weighted average lives of 13.1 years and non-compete agreements of $ 0.2 million with lives of 5.0 years. The goodwill arising from our 2024 acquisitions predominantly consists of expected strategic benefits, including enhanced financial and operational scale, as well as expansion of acquired product and processing know-how across our enterprise. Goodwill of $ 35.1 million from our 2024 acquisitions is expected to be deductible for income tax purposes.
Pro forma financial information for all acquisitions
P ro forma financial results reflect our consolidated results of operations as if our 2024 acquisitions had occurred as of January 1, 2023, after the effect of certain adjustments, including lease cost fair value adjustments, amortization of inventory step-down to fair value adjustments included in cost of sales, depreciation and amortization of certain identifiable property, plant and equipment and intangible assets. Pro forma results for the first quarter of 2024 have been provided for comparative purposes only and are not indicative of what would have occurred had the 2024 acquisitions been made as of January 1, 2023 or of any potential results which may occur in the future.
7
Table of Contents
Pro forma net sales were $ 3,746.5 million for the first quarter of 2024 and pro forma net income and earnings per shares were comparable with our first quarter of 2024 consolidated results.
Note 3. Revenues
The following table presents our net sales disaggregated by product and service:
Three Months Ended March 31,
2025
2024
(in millions)
Carbon steel
$
1,904.2
$
2,012.9
Aluminum
605.6
596.1
Stainless steel
503.2
559.9
Alloy
158.4
171.9
Toll processing and logistics
160.2
157.8
Copper and brass
81.7
75.3
Miscellaneous and eliminations
71.4
70.9
Total
$
3,484.7
$
3,644.8
Note 4. Property, Plant and Equipment, Net
Property, plant and equipment, net consists of the following:
March 31,
December 31,
2025
2024
(in millions)
Land
$
295.9
$
297.2
Buildings
1,696.4
1,689.2
Machinery and equipment
2,654.9
2,643.2
Construction in progress
340.1
297.0
Property, plant and equipment, gross
4,987.3
4,926.6
Less: accumulated depreciation
( 2,413.9 )
( 2,381.7 )
Property, plant and equipment, net
$
2,573.4
$
2,544.9
As of March 31, 2025 and December 31, 2024, noncash investing activity included $ 5.8 million and $ 7.3 million of capital expenditures, respectively, included in accounts payable and accrued expenses.
Note 5. Goodwill
The change in the carrying amount of goodwill is as follows:
(in millions)
Balance as of January 1, 2025
$
2,161.8
Acquisitions
3.5
Effect of foreign currency translation
0.3
Balance as of March 31, 2025
$
2,165.6
We had no accumulated impairment losses related to goodwill as of March 31, 2025 and December 31, 2024.
8
Table of Contents
Note 6. Intangible Assets, Net
Intangible assets, net consisted of the following:
March 31, 2025
December 31, 2024
Weighted Average
Gross
Gross
Amortizable
Carrying
Accumulated
Carrying
Accumulated
Life in Years
Amount
Amortization
Amount
Amortization
(in millions)
Intangible assets subject to amortization:
Customer lists/relationships
13.9
$
753.6
$
( 569.4 )
$
753.4
$
( 559.6 )
Backlog of orders
7.9
20.9
( 8.8 )
21.0
( 8.2 )
Other
9.3
10.1
( 9.6 )
10.2
( 9.6 )
784.6
( 587.8 )
784.6
( 577.4 )
Intangible assets not subject to amortization:
Trade names
800.2
—
800.0
—
$
1,584.8
$
( 587.8 )
$
1,584.6
$
( 577.4 )
Changes in the carrying amount of intangible assets, net are as follows:
(in millions)
Balance as of January 1, 2025
$
1,007.2
Amortization expense
( 10.4 )
Effect of foreign currency translation
0.2
Balance as of March 31, 2025
$
997.0
The following is a summary of estimated future amortization expense:
(in millions)
2025 (remaining nine months)
$
28.7
2026
29.5
2027
28.9
2028
27.4
2029
25.3
Thereafter
57.0
$
196.8
9
Table of Contents
Note 7. Debt
Debt consisted of the following:
March 31,
December 31,
2025
2024
(in millions)
Unsecured revolving credit facility maturing September 10, 2029
$
330.0
$
—
Senior unsecured notes, interest payable semi-annually at 1.30 %, effective rate of 1.53 %, maturing August 15, 2025
400.0
400.0
Senior unsecured notes, interest payable semi-annually at 2.15 %, effective rate of 2.27 %, maturing August 15, 2030
500.0
500.0
Senior unsecured notes, interest payable semi-annually at 6.85 %, effective rate of 6.91 %, maturing November 15, 2036
250.0
250.0
Other notes
1.1
1.1
Total
1,481.1
1,151.1
Less: unamortized discount and debt issuance costs
( 8.1 )
( 8.6 )
Less: amounts due within one year
( 399.9 )
( 399.7 )
Total long-term debt
$
1,073.1
$
742.8
The weighted average effective interest rates on the Company’s outstanding borrowings as of March 31, 2025 and December 31, 2024 were 3.54 % and 3.02 %, respectively.
Unsecured Credit Facility
On September 10, 2024, we entered into a $ 1.5 billion unsecured five-year Second Amended and Restated Credit Agreement (“Credit Agreement”) that amended and restated our then-existing $ 1.5 billion unsecured revolving credit facility. As of March 31, 2025, borrowings under the Credit Agreement were available at variable rates based on the Secured Overnight Financing Rate (“ SOFR ”) plus 1.00 % or the bank prime rate and we currently pay a commitment fee at an annual rate of 0.10 % on the unused portion of the revolving credit facility. The applicable margins over SOFR and base rate borrowings, along with commitment fees, are subject to adjustment every quarter based on our total net leverage ratio, as defined in the Credit Agreement. All borrowings under the Credit Agreement may be prepaid without penalty.
The weighted average interest rate on borrowings outstanding on the revolving credit facility was 5.35 % as of March 31, 2025. We had no outstanding borrowings under the revolving credit facility as of December 31, 2024. We had $ 1.1 million of letters of credit outstanding under the revolving credit facility as of March 31, 2025 and December 31, 2024.
Senior Unsecured Notes
Under the indentures for each series of our senior notes (the “indentures”), the notes are senior unsecured obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated obligations. If we experience a change in control accompanied by a downgrade in our credit rating, we will be required to make an offer to repurchase each series of the notes at a price equal to 101 % of their principal amount plus accrued and unpaid interes t.
Letter of Credit/Letters of Guarantee Facility
We have a $ 50.0 million standby letters of credit/letters of guarantee agreement with one of the lenders under our Credit Agreement. A total of $ 29.2 million were outstanding under this facility as of March 31, 2025 and December 31, 2024.
Covenants
The Credit Agreement and the indentures include customary representations, warranties, covenants and events of default provisions. The covenants under the Credit Agreement include, among other things, a financial maintenance
10
Table of Contents
covenant that requires us to comply with a maximum total net leverage ratio. We were in compliance with the financial maintenance covenant in our Credit Agreement as of March 31, 2025.
Note 8. Leases
Our metals service center leases are comprised of processing and distribution facilities, equipment, automobiles, trucks and trailers, ground leases and other leased spaces, such as depots, sales offices, storage and data centers. We also lease various office spaces. Our leases of facilities and other spaces expire at various times through 2045, and our ground leases expire at various times through 2068. Nearly all of our leases are operating leases; we have an insignificant amount of recognized finance right-of-use assets and obligations.
The following is a summary of our lease cost:
Three Months Ended March 31,
2025
2024
(in millions)
Operating lease cost
$
20.1
$
17.6
Variable fees and other (1)
8.0
7.6
Total lease cost
$
28.1
$
25.2
(1) Includes variable lease payments and costs of short-term leases.
Supplemental cash flow and balance sheet information is presented below:
Three Months Ended March 31,
2025
2024
(in millions)
Supplemental cash flow information:
Cash payments for operating leases
$
27.8
$
25.3
Right-of-use assets obtained in exchange for operating lease obligations
$
27.8
$
28.2
March 31,
December 31,
2025
2024
Other lease information:
Weighted average remaining lease term—operating leases
6.4 years
6.3 years
Weighted average discount rate—operating leases
4.7 %
4.6 %
Maturities of operating lease liabilities as of March 31, 2025 are as follows:
(in millions)
2025 (remaining nine months)
$
57.0
2026
66.1
2027
54.6
2028
45.0
2029
36.3
Thereafter
76.5
Total operating lease payments
335.5
Less: imputed interest
( 48.5 )
Total operating lease liabilities
$
287.0
Note 9. Income Taxes
Our effective income tax rates for the first quarters of 2025 and 2024 were 23.6 % and 23.3 %, respectively. The differences between our effective income tax rates and the U.S. federal statutory rate of 21.0 % were mainly due to state income taxes.
11
Table of Contents
Note 10. Equity
Stock-Based Compensation Plans
We make annual grants of long-term equity incentive awards to officers and key employees in the forms of service-based restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”) that each have approximately 3 -year vesting periods. Each PSU includes the right to receive, based on a sliding scale, up to a maximum of two shares of our common stock for each vested PSU, that is tied to achieving a return on assets target over a 3-year measurement period and continued service. We also grant the non-management members of our Board of Directors fully vested stock awards . The fair values of the RSUs, PSUs and stock awards are determined based on the closing stock price of our common stock on the grant date.
A summary of the status of our unvested RSUs and PSUs as of March 31, 2025 and changes during the first quarter of 2025 is as follows:
Weighted
Average
Grant Date
RSU and PSU
Fair Value
Aggregate Units
Per Unit
Unvested as of January 1, 2025
327,017
$
267.96
Granted (1)
162,900
299.38
Vested
( 425 )
261.27
Cancelled or forfeited
( 3,542 )
270.78
Unvested as of March 31, 2025
485,950
$
278.48
Shares reserved for future grants (all plans)
1,223,658
(1) Comprised of 96,973 RSUs and 65,927 PSUs granted in February 2025. The RSUs cliff vest on December 1, 2027 and the PSUs vest upon the completion of a 3 -year performance period ending December 31, 2027 .
As of March 31, 2025, there was $ 94.6 million of total unrecognized compensation cost related to unvested RSUs and PSUs that is expected to be recognized, net of actual forfeitures and cancellations, over a weighted average period of 2.0 years.
Common Stock
We have paid regular quarterly cash dividends on our common stock for 66 consecutive years. Our Board of Directors increased the quarterly dividend from $ 1.00 per share to $ 1.10 per share in February 2024 and to $ 1.20 per share in February 2025. The holders of Reliance common stock are entitled to one vote per share on each matter submitted to a vote of stockholders.
On April 21, 2025 , our Board of Directors declared the 2025 second quarter cash dividend of $ 1.20 per share of common stock, payable on June 6, 2025 to stockholders of record as of May 23, 2025 .
Share Repurchases
On October 22, 2024, our Board of Directors amended our share repurchase program to replenish the repurchase authorization to $ 1.5 billion . The share repurchase program does not obligate us to repurchase any specific number of shares, does not have a specific expiration date and may be suspended or discontinued at any time. Repurchased and subsequently retired shares are restored to the status of authorized but unissued shares.
In the first quarter of 2025, we repurchased 922,656 shares at an average cost per share of $ 274.41 for a total of $ 253.2 million. We did no t repurchase any shares of our common stock in the first quarter of 2024.
12
Table of Contents
Our share repurchase amounts exclude related excise tax and shares withheld related to net share settlements upon the vesting of RSUs and PSUs to settle employees’ tax withholding obligations of $ 11.5 million and $ 23.9 million in the first quarters of 2025 and 2024, respectively.
Subsequent to quarter end, we repurchased an additional 301,279 shares at an average cost of $ 265.17 , for a total of $ 79.9 million, resulting in $ 1.02 billion remaining available for repurchase as of April 25, 2025.
Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss included the following:
Pension and
Foreign Currency
Postretirement Benefit
Accumulated Other
Translation
Plan Adjustments,
Comprehensive
(Loss) Gain
Net of Tax
(Loss) Income
(in millions)
Balance as of January 1, 2025
$
( 119.7 )
$
4.5
$
( 115.2 )
Current-period change
3.3
( 0.9 )
2.4
Balance as of March 31, 2025
$
( 116.4 )
$
3.6
$
( 112.8 )
Foreign currency translation adjustments have not been adjusted for income taxes. Pension and postretirement benefit plan adjustments are net of deferred tax liabilities of $ 1.0 million as of March 31, 2025 and December 31, 2024. Pension and postretirement benefit plan adjustments are amortized over service periods and reflected in the amortization of net loss component of our net periodic benefit cost or recognized as a non-operating gain or loss as result of plan settlements. As our pension and postretirement benefit plan obligations are settled, the related income tax effect is released from accumulated other comprehensive loss and included in our income tax provision .
Note 11. Commitments and Contingencies
Environmental Contingencies
We are currently involved with an environmental remediation project related to activities at former manufacturing operations of Earle M. Jorgensen Company (“EMJ”), our wholly owned subsidiary, that were sold many years prior to our acquisition of EMJ in 2006. Although the potential cleanup costs could be significant, EMJ maintained insurance policies during the time it owned the manufacturing operations that have covered costs incurred to date and are expected to continue to cover the majority of the related costs. We do not expect that this obligation will have a material adverse impact on our consolidated financial position, results of operations or cash flows.
Legal Matters
From time to time, we are named as a defendant in legal actions. These actions generally arise in the ordinary course of business. We are not currently a party to any pending legal proceedings other than routine litigation incidental to the business. We expect that these matters will be resolved without having a material adverse impact on our consolidated financial position, results of operations or cash flows. We maintain general liability insurance against risks arising in the ordinary course of business.
13
Table of Contents
Note 12. Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share:
Three Months Ended March 31,
2025
2024
(in millions, except number of shares which are reflected in thousands and per share amounts)
Numerator:
Net income attributable to Reliance
$
199.7
$
302.9
Denominator:
Weighted average shares outstanding
53,075
57,340
Dilutive effect of stock-based awards
324
542
Weighted average diluted shares outstanding
53,399
57,882
Earnings per share attributable to Reliance stockholders:
Basic
$
3.76
$
5.28
Diluted
$
3.74
$
5.23
The computations of diluted earnings per share using the treasury stock method for the first quarters of 2025 and 2024 do not include 194,254 and 103,700 weighted average shares, respectively, in respect of outstanding RSUs and PSUs, because their inclusion would have been anti-dilutive.
Note 13. Segment Information
We have one operating and reportable segment —metals service centers . Reliance derives revenue primarily in the United States and manages its business activities on a consolidated basis.
The measure of segment assets is reported on the accompanying consolidated balance sheet as total assets.
The measure of segment profit and loss is net income reported on the accompanying consolidated income statements.
14
Table of Contents
Information about our segment revenue, net income, significant expenses, and other quantitative information is presented below:
Metals Service Centers Segment
Three Months Ended March 31,
2025
2024
(in millions)
Revenues
$
3,484.7
$
3,644.8
Less:
Cost of sales (exclusive of depreciation and amortization shown below)
2,451.4
2,516.6
Compensation expense
420.1
413.8
Other segment items (1)
270.6
244.9
Depreciation and amortization expense
68.7
63.6
Interest expense
11.5
9.7
Income tax provision
61.9
92.4
Consolidated net income
$
200.5
$
303.8
Other Segment Disclosures:
Purchases of property, plant and equipment
$
86.9
$
108.7
(1) Other segment items included in Segment net income mainly includes warehousing and delivery related expenses, which include among others, 3 rd party freight, gas and oil, utilities & rent, plant supplies, and repairs and maintenance.
15
Table of Contents
RELIANCE, INC.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.