LOS ANGELES, Feb. 20, 2020 (GLOBE NEWSWIRE) -- Reliance Steel & Aluminum Co. (NYSE: RS) expanded upon certain commentary provided during its fourth quarter and full year 2019 earnings call earlier today.
Reliance announced record cash provided by operations of $1.30 billion for 2019, which was an increase of $636.9 million, or 95.8%, from $664.6 million in 2018. Reliance also provided its business outlook for the first quarter of 2020 guiding to non-GAAP earnings per diluted share in the range of $2.00 to $2.10. Reliance’s practice is to provide quarterly earnings guidance including anticipated volume and pricing trends in the quarter. The Company does not provide annual guidance given the transactional nature of its business, including short lead times with 40% of the orders received delivered the next day, coupled with volatility in metals pricing and the cyclicality of the many end markets of its customers.
During the earnings call, Reliance’s Chief Financial Officer responded to a question about anticipated cash provided by operations for the full year 2020 by stating that a conservative minimum level of cash provided by operations could be approximately $600 million. The commentary was not intended to provide guidance or establish the bottom of a range for cash provided by operations in 2020. Reliance expects strong cash provided by operations for the full year 2020, though not at the same record level as 2019 which was supported by record earnings and a $211.8 million reduction in inventory.
About Reliance Steel & Aluminum Co.
Reliance Steel & Aluminum Co., headquartered in Los Angeles, California, is the largest metals service center company in North America. Through a network of more than 300 locations in 40 states and thirteen countries outside of the United States, Reliance provides value-added metals processing services and distributes a full line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance focuses on small orders with quick turnaround and increasing levels of value-added processing. In 2019, Reliance’s average order size was $2,090, approximately 51% of orders included value-added processing and approximately 40% of orders were delivered within 24 hours.
Reliance Steel & Aluminum Co.’s press releases and additional information are available on the Company’s website at www.rsac.com.
Forward-Looking Statements
This press release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, discussions of Reliance’s industry, end markets, business strategies and expectations concerning future demand and metals pricing and the Company’s results of operations, cash provided by operations, margins, profitability, impairment charges, taxes, liquidity, litigation matters and capital resources. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “preliminary,” “range” and “continue,” the negative of these terms, and similar expressions.
These forward-looking statements are based on management's estimates, projections and assumptions as of today’s date that may not prove to be accurate. Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future performance. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements as a result of various important factors, including, but not limited to, those disclosed in reports Reliance has filed with the United States Securities and Exchange Commission (the “SEC”). As a result, these statements speak only as of the date that they are made, and Reliance disclaims any and all obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Important risks and uncertainties about Reliance’s business can be found in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and in other documents Reliance files or furnishes with the SEC.
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