RS - Earnings call transcript Q2 2024 | Reliance Steel & Aluminum Co.

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Operator

Greetings, and welcome to the Reliance, Inc.

Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kim Orlando. Thank you, and you may begin.

Kimberly Orlando

operator. you, Thank thanks conference and financial of for you Good to to discuss our call XXXX Reliance's joining morning, all Second results. Quarter Executive Vice joined President Senior Officer; Vice am Karla Chief Officer; Ajemyan, Chief Steve Financial and Officer. I and Arthur Koch, and President by Executive President Chief Operating and Lewis, website call this of on recording investor.reliance.com. be posted the at Investors A will section of our

statements statement issued it in forward-looking of the numbers disclosures during all this applies and read our adjusted release earnings included the The Please earnings the teleconference. that morning, note to the part reconciliations made this in release. non-GAAP of reconciliation included are

turn and call Reliance. will to Karla the CEO now of Lewis, President I over

Karla Lewis

today our to XXXX results. Good quarter discuss you Kim. Thanks, everyone, us and second morning, thank joining all for

highlighted performance a results solid the of quarter cycles, various our in through second once business market environment. attractiveness model Our delivering challenging pricing again

with relationships, ahead on diversification Reliance's focus customer our and industry and service of strategies, growth shipments our levels. coupled increased

Our on new tons smart, increased our acquisitions profitable shipped. growth and focus

steel the the second offsetting further anticipated, increased than our of benefits during carbon pricing quarter declined However, tonnage.

we diluted the pricing of challenges, strong driver of have investments was our part the made per gross Despite gross our capabilities margin $X.XX. and company XX% value-added recent within the across profit maintained years. range by in metal sequential margin long-term to significant a sustainable in of XX.X% in XX% our earnings of teams decrease driven these reduction Declining profit in processing primary share

annualized added in operations on will XXXX X quarter a nearly from comment on acquisitions more million X second in moment. results. and sales based cash in which helped acquisitions fund net I flow collectively the our $XXX year-to-date, Our

support growth million in to improving second expenditures increasing by growth. were We our toward directed quarter, the also our the processing capacity value-added majority future and of which capabilities invested during $XX.X capital

approximately outlay expected $XXX million. with calendar CapEx XXXX Our million million cash budget remains $XXX year total $XXX of an for the to

to $XXX.X stockholder in we And $XX.X $XXX.X million returns, paid valued management confidence million quarter stock our repurchased in and of underscoring million and regard the dividends common our second stockholders. to have we Board In July, team future. during the in our

acquiring Materials Cooksey Alloy will of of the April July followed XX, X, addition X assets announced division XXth by to acquisition of processing conditions, to since American on this Corporation. and Steel certain our February Ferragon our customary closing XXXX on In we Subject the acquisition Mid-West toll FerrouSouth mark on IPO.

expand subsidiary, a the look in Corporation. States. division We FerrouSouth's Feralloy as Feralloy's with owned tolling and United Southeastern wholly of additional operations processing to welcoming capabilities footprint forward our existing FerrouSouth provide will Feralloy's capacity toll

customers additions completed pipeline fit seek in our and criteria The our management expand solid of for robust, our being enhance processing with our The family product companies remains acquisitions and unique M&A and place. accretive our and positioned to teams capabilities. well growth to to reach earnings to continue we of geographic offerings immediately that

customers our our cycles. that to to able markets. servicing business we're to well post uncertain In managing as team summary, because through their at is for working growing consistently our and like results dedication thank Reliance safely, throughout family Reliance of and economic solid entire I'd our It

confident the executing model. team's ability continue successfully While ahead our markets, we continue near-term remain and certain pricing we to lie demand robust and in of opportunities execute that talented affecting our headwinds about resilient in through and our excited business to

today. the and I'll now time to trends. who review Thank turn for call you will over pricing Steve, demand our second your all quarter

Stephen Koch

for dedicated and their at safely executing every to like Reliance by Thanks, team our start each Karla, day. our and good morning, to everyone. commitment I'd thanking strategy

trends. turn quarter second our to pricing and demand now I'll

in XXXX, sold far in tons X.X% compared so X Our increased completed first X.X% our we've reflecting XXXX. of X% expectations the benefit the to acquisitions the of up of line quarter and with to

of decrease sold our On X.X% outperforming supported on MSCI organic addition tons same-store strategic a reported our industry customer X.X% our tons same-store peers were outperformance our the Compared or continued to by over of prior sold We significantly the as a growth is increased in basis, MSCI. up to the service strategy, and by basis, X.X% the diversification X.X% quarter. center believe acquisitions. year, service our prior

by steel ton the expectations minimally steel per as product commodities and announced declined our compared prices anticipated more both XXXX, Our price in second to in first X%. of down were declined increases sold short-lived. selling quarter average prices Carbon quarter the to X.X% aluminum by average Stainless selling exceeding price $X,XXX as additional Russian of quarter sanctions quarter than were progressed. second impacted, April X%

predominantly year-over-year market, turn end I within with products, we beginning X/X sold of outperforming plate nonresidential the and products, levels. Carbon Next, and our and the growth nonresidential tubing, will end to shipment markets of solid are in second tons represented overview sold, had sales and structural trends construction an into saw key steel sequential in about which construction. quarter industry

tubing construction Our data trends. publicly demand products funded despite infrastructure, diversified nonresidential steady supported markets, centers our steel for energy infrastructure carbon including structure negative exposure and to related and pricing

agricultural. military. machinery, to X/X to highly includes equipment military sector industrial serve manufacturing machinery, represents XXXX our diversified consumer manufacturing second heavy the total increased whole across roughly compared of declines in is activity was relatively business, primarily especially across general products broader Our on Demand demand industrial and for and we products, general and sales, which quarter products consumer which consistent offset equipment, due spending, the the heavy

of shifting applications environment. business demand general outperformance our diversified a industry in to dynamic manufacturing groups model highlights product key the across Our benefit

challenges. Commercial Aerospace products X% comprise approximately healthy total despite was sales. our of chain aerospace short-term supply demand

and Our program aerospace demand strong at stable levels. defense-related space remained

market in the which operations, our processing primarily tons not toll through service We our are sold. automotive reflected

capacity. demand due healthy year in to demand improved total Our in market automotive [indiscernible] and Mexico the increase the represents X% States United the quarter to our in prior compared which revenues XXXX second tolling to period business, and both of ongoing our the investments of

inventories continued the due demand in supply quarter to signs excess but showed contract industry stabilization chain second to Semiconductor areas. in through certain of the

for States Our the future semiconductor long-term expansion underway the market for in CHIPS meet Act, investment by and additional United fabrication the positive, continues remains guide semiconductor both reinforced strategy capacity the significant to outlook our demand. which to

key in end Overall, continued steady other we certain with in are experiencing pressures markets, counterbalancing demand relatively markets. strength end

very enable proud continued are efforts, outstanding of performance. team's our We industry-leading our which

our attractive to additional all on customers Reliance's and our scale business sheet of new to unrivaled mill partner our market and new existing recognize on diversification. makes us of from a Reliance our highly product our quality continues who breadth markets suppliers and services. to earnings strong and win end commentary balance the Please offerings service, product of increased our value-added release for diversity conditions. refer

the I outlook. our to to Arthur results will review call turn now financial over and

Arthur Ajemyan

morning, Thanks, Steve, and good everyone.

second earnings below Our per and as slightly our than offset came range levels non-GAAP product quarter all further tons the diluted levels outperformed our retreated from anticipated environment, significant $X.XX shipment benefited with we expectations. successfully sequential industry guided share line in the and pricing sold, difficult as our offerings. products which of we diversified in nearly in scale Despite across pricing was improvement

our earnings inorganic decrease our diluted the from The the due gross XX.X% XX.X% decrease growth headwinds non-GAAP offset organic second revenues the driver in to same quarter in is collectively first XX% in the in of per prices to the the our was Our and margin profit on main initiatives quarter. selling in impact pricing quarter share. declining and of

value-added Our continue capabilities and our less processing the with gross gross to in orders of experience significantly value-added profit contraction processing times margin declining margin prices moderated as at without processing. decline orders profit

profit by to valuation adjusting be with our to our further in current gross inventory replacement LIFO more cost sales margin provides Our costs. line stability method of

with recorded quarter, in line $XXX the the income guidance $XX anticipate we $XX second million quarter full to XXXX, of income continue for line LIFO third million LIFO of the income for as including our XXXX. million We of of year in

generate in the future income million, sheet June the prices. of period impact LIFO our As declines metal of mitigate results benefit on and operating XXXX, further XX, was $XXX.X which to reserve balance potential will LIFO

Moving expenses year-over-year These lower associated million incentive-based were by and Same-store non-GAAP higher basis. compensation a declines to tons or X% profitability, resulting from on costs along $XX with year-over-year and approximately sequentially X% sold or due decreased $X primarily the million offset for SG&A to increased inflation change. expenses. lower wage

As as down. a by reminder, rightsizing expenses our model inherently profits incentives normalizes trend

$XXX.X sheet cash helped and to I'll generated for Reliance flow in million flow. quarter, $XX.X now expenditures. million which the move in operating and million in capital acquisitions second fund cash our $XXX.X discuss balance on

our of cost and dividends of we to In additional an at repurchased shares stockholders quarter million We repurchases also approximately average $XXX.X in share. average at our $XXX our cash million combined per returned million cost our reduction in approximately share, our with outstanding. $XXX an second an of X% $XX.X repurchased July, more shares $XXX.X a shares per of through than total resulted which

$XXX XXXX, repurchase ample and our million $X.X under available we for remained XX, authorization, July XXXX of repurchases. continued share liquidity As October have billion opportunistic

customer environment third to shipping vacation challenging to as outlook. in seasonal stable Turning remaining demand planned in quarter anticipate the third operating remain patterns, We of perspective volumes a a will relatively with including the now our and schedules. decline from quarter subject pricing result shutdowns

third sold X.X% quarter will X% quarter up X.X% to XXXX down coming tons our estimate approximately with X.X% the compared the acquisitions. XXXX we and of the second to be our year-over-year growth to from but in XXXX to compared X.X% the third quarter Accordingly, of

ton the average steel we by third be for margin quarter remain On prices selling under will quarter to our lower pressure our price the driven primarily down in side, X% sold quarter XXXX. expect third to compared per X% the Accordingly, of pricing products. believe for we carbon the profit second gross to

anticipate non-GAAP share expectations, diluted to per currently XXXX. the third of earnings Based the quarter on $X.XX $X.XX these of we for range in

for our concludes you This time all remarks. and participation. prepared your Thank

We will now call to open Operator? questions. the

Operator

with from [Operator question Seaport Instructions] Englert Partners. comes Research The first Martin

Martin Englert

overall you're ASP gross converge cost to basis on going will gross towards weakness carbon so due a you lower level some Looking to to start on be able FIFO the pricing, more prices in that of through to margins margin past work are inventories steel flattish think a the do higher XQ, basis? XQ normalized if an

Karla Lewis

Yes, Martin.

cyclicality managing cycles. pricing for that's do. I us So normal through certainly different the mean we

Our people on as well, try inventory world, to that cycles. ahead for these focus down. up go of there. inventory managing our staying shipment done us helps we In through in have with which prices and decades our they go turning And go levels, we really this our our out line

did been than has there more some fall Prices Certainly, pressure. anticipated. had we

got we've leveled kind inventory. to work we have margin But of on had products right hoped maybe off a prices our lag. X-, to that to bit would short. now. we lot profit a of more by typically are a X-month normal decline, now that as it's through Lead on So But major continue gross times

And that, we little work our so with inventory through too. can faster, a

Martin Englert

availability the all 'XX. Coming of on could eclipsed ended continue repurchases, touch XQ. XQ if expectations if an with targeting. to share -- I believe There to ability at quarter Maybe the be remaining that repurchases was you cash. you'd are minimum what cash company's level and there's in back the on a substantial authorization, balance it for working elevated done $XXX capital, million they was million in $XXX

Karla Lewis

Yes, Martin.

return has a company a also and to stockholders. been always Reliance growth value company to our So

opportunistic on all great manner. quarter. us during execute to that be Reliance of So an in We shares felt repurchasing to continuously gave a the second in the we opportunity market try

again, there the We goes our a opportunistic approach market, the not heard that the when of from were we're to with quarter, how But repurchasing everyone was surprise. lot first we in on shares.

completed year another X acquisitions and also this already small one. announced We

our quarter are growth financial we're continue be a allocation strategies, to expect in quarter, third and fourth of doing We able where we and on in beyond. execute that to able capital to all position different

address let So question. of working we're capital still in your Arthur part But I'll execute. shape your to really good

Arthur Ajemyan

Yes.

business. at typical So the cash release. we Martin, seasonality look capital for guidance our you put of business, Typically, the there's given build. necessarily the half, seasonality capital working don't in flow, half, the first for out while second there's could In working

can you our for and volume. then pricing and -- So assumptions take

than volume inventory as that purely your down, answers So from hand go Hope release on more have prices capital question. working adjusting slightly and levels. you'd just

Martin Englert

highlight I Yes. If your more. you expansion moment I take specific one end grid as and exposure could, higher businesses in electrification, it. That's appreciate grid that to helpful. market? Could that areas a an have

Karla Lewis

used that those weighs markets of of Yes. that definitely a different markets. we those the Martin, in components will There I the sell and metal electrification, is end a go lot mean, into we are metals different the lot grid, service. parts of

comment a we participate. Steve specifically think some on can more I where maybe areas little

Stephen Koch

for that box couple who So panel Texas other United transformer have time, States and quite been mission Martin, also enclosure we to the and manufacturer. we've that our servicing companies this some manufacturers business of in market and makers tower places in through electrical a our steel galvanized and flat-rolled throughout

So order where when steady sure. not exactly business trend is end we it end We but we we're the do that don't conversations -- our is of goes, market to growing. the

Operator

is Gibbs Markets. Capital Phil from KeyBanc The from next question

Philip Gibbs

what change just LIFO dynamic help inherently to us you Can why in higher better? accrual pricing were a the bit a income If missed this understand didn't quarter? little you the expecting,

Arthur Ajemyan

Phil. question, Great Yes.

quarter. for estimate, the LIFO what doing on we're hand that's guidance, quarterly of a is out forecasting the for basically pricing where at end is just put year. we when inventory annual cost the guidance it's an So pricing,

were So the year. projection our quarter, not balance second through certainly at making the the of end of the as the at we quarter but LIFO pricing just the annual through first we're end looking of expectations,

through we price was there the second experienced what certainly, more quarter, So contraction.

the when materially. a of the change through looked high of our not estimates at kind we they at level, did end But year,

unchanged. So we estimate LIFO kept our

on the what on and going of numbers we end then our third at end costs based the Now actual of year, to And the as assumptions needed. and where the at hand. we're are see adjust are, are this the they revisit quarter what

in fourth typically, the estimate have quarter, making. you to a the that true-up you're then So

Philip Gibbs

of tells in to -- did that me and early looks all lot the in the quarter, lot just that latter It second where bought QX. activity And of the assume in back the the the much, make we share share of you a during clearly, buyback that didn't the quarter count in any third. a shake part like us fall QX? you were which part repurchases latter for would If further out count

Arthur Ajemyan

purchased So the shares in Phil. earnings I think we provided release, total the

So it's roughly X.X million through July.

you're used So you weighted. weighted average mean, for calculations, yes, I The that's that right. EPS shares

going then July, of share anything be So QX. in all And of was to benefit have QX you'll QX full will QX benefit repurchases. that weighted. the that on get is But purchased buybacks

is interest you the out lower income some of that cash offsetting from point that I should benefit hand. that lower get on

there's just not offsetting it's incremental, So some there. purely so impact

Philip Gibbs

sites, don't sites. for near lastly Understood. or full me, you low and And processing balls know air that it, call on? a start-up there you few and or with lot distribution those of are rate have have relatively, the I then still contribution in CapEx new Are in of a and fabrication mode production new that full

or sort start-up I new that you, are to your just in cost, to full they of everyday know still facilities there of know a get like But a Are level? call facilities your handful it's starting mills them until -- adoption. the but contribute? to I for that of they it's are sort business key

Karla Lewis

Phil. Yes,

have -- for go on as years, as commented when build your asking we the following and you've as known billion question -- you our So project. you're us many don't we from $X --

the we of a our at people lot like have very us that. business, not different suppliers So certainly for our but of and of each in scale meaningful projects,

at few of And pretty quite we've greenfields I ramped. about the is are. few a kind the had the in levels on-campus produce mean have Sinton But talked years fully mills Sinton, we growth over and Gallatin last activities. we in our Gallatin.

a little So to we've go probably seen there. more improvement there,

U.S., of more are here those early still pretty and lines but some those operations to on expansions. we've through processing, added couple capacity in processing grow still A some lines. the room toll Our

those year U.S. We've all Down toll to got tolling locations. of there, that in this year, operations next another to our beginning on processing come equipment we've really late until and expand expansion probably in add contribute. won't Mexico, of continued

So contribute. they're continuing to

opened a larger Atlanta. down We facility in just EMJ

incremental Georgia our next an in expansions got probably to facility semiconductor that Texas. year. not larger have be operating is We've in We until going

going -- up of on. throughout online things the with consistently of things pace kind time lot length and get We're of kind to these a and we the running, the been we've it going operations different coming multiple have of takes So some of year. at

Philip Gibbs

if more, one I could. And

and know of you aerospace it build seeing shipping the maybe the in are what what kind in Just you and little of but give volatility through -- are How I volatility? the more given a us be more bit versus commented might you detail and remarks, on a your your defense, terms -- prepared you're managing distributor/processor who can mill in position you someone a rates more and direct? as bit

Karla Lewis

Yes.

So that defense. Unfortunately, on going Commercial it's kind those flow. not continues they've announced pockets. of participate with pressure strong on on we the general the certainly, buying what's strong. that or the aerospace, we manufacturers continue demand of we're in strong, have aerospace at the the in on some because be defense projects, But of activity aerospace, that certainly to, be side, been the anticipating the been military those to strong. potentially continuing the kind just on defense see build rates in, to whether programs specifically some producing more world, and They of military

We haven't we've -- still far. busy been so

steady, pretty think supply the of but because out could be some are just been dynamics that pressure the have shipments Our chain on we there coming there.

Operator

from Wolfe Tanners Timna Research. with The question comes next

Timna Tanners

I'm guidance? little could today's that that spot items some I missing there explain something, if carbon for like the and retreat that bit the on wanted Does any in if more metals-tied outlook, steel of in price a products? pricing dig the reflect other to I Or base is could.

Karla Lewis

Timna. Yes,

major plate carbon QX we commented, prices included those we primarily we in had further the prices for tubing, than we the fall [indiscernible] that roll well, of items as sell, further, flat the saw for as fall So some quarter. anticipated

at in bottom, quarter earlier down where hit and the further from point of we we thought were there. We a the then prices had kind went

talking is QX QX. yes, lot that for for the For the of we're our about of to average average guide decline for a QX, the compared -- the for --

are reflect where not the declines today. anticipating part, are we So currently. prices for does, significant from where it most It's

Timna Tanners

metals aluminum impact from processing? That's aluminum up, is there ride much back Okay. toll other almost and And base helpful. maybe segment kind the of Or the then entirely rollercoaster is backing from down the prices?

Karla Lewis

a the processing automotive products. sell does. of we heat we're That metal of the toll that into do the certainly but lot LME -- aerospace. aluminum, We doesn't follow Aerospace selling plate way alloy all different treat namely common pricing

Russian pricing. in with we've And way QX, stainless, a short-lived in those anticipated aluminum a that announced the the to a there more we but was seen increase than of back. sanctions and of pull had in were bump was positive kind It

Arthur Ajemyan

And look products I'm to -- to And of that sales sorry, point, when sales. XX% going aluminum LME they're XX%, at follow Timna. included in those our of just some the the pricing. aerospace Karla's don't say roughly you

trends get pricing where little that -- the might that's you aluminum business. on a So of different on side the

Timna Tanners

Okay. if overall I look profits as declining just that much from bit But down you with remarks, prepared year-over-year, we little to from come history as a have. your look SG&A the wanted into to really earnings. I and know hasn't look also it your more. temper

steps mentioned can some manage the that it can profit the there's other what's take with you also but are that take, is? given hit there market? guidance a to kind I less overhead of of that Are and happening in you But broader inflation to to your steps and know other where deeper that take you -- there market wage So sharing.

Karla Lewis

a sell I our throughout the metal on feel things we Timna, can managing. profitably. doing are more expense teams is the one Yes. mean good company the that we of job side, do

Everyone So costs operating about some of the we and with higher is that's part cover now. talk higher our up profitable smart, of make costs. growth to

efficient. had some employees each down. We by become who to in of more lot is businesses a businesses continuously business But have are of We're some it volumes really looking our times, lay do ways at because company. our of off have recently to their company

That's one they employees very we manage expenses, much of that have. the our we that ways and value do the skills our although

I long conditions So to and them layoffs. to that But look think try we can. there's across require business continue to in ways. manage as bullet we have to our magic we that. try do certain all continue us for not to retain we'll do of sometimes as markets one companies some to expenses, applies But we But

Timna Tanners

One I Okay. me, for could. if last one

you On and auto but the mentioned seems caution couple that, you like a of can of you little just you're feel business that that some if might end seeing your and like the offsetting stable? know growing factors have the there. in last I elaborate days, on Or any keep Can bit disappointment some more market more you -- seeing it? discussed around we're if

Karla Lewis

Yes.

We're Timna, seen last year. grown of side, the We've we're As in lot doing we over know, metal. metal. And processing and processing in stable. a the we've seen markets do also here we storing is remain you with We're which Mexico, the that the the logistics. have business, toll on most and metal. those U.S. they've inspecting automotive We're what so

little a still cautious. well. doing We are more hear maybe comments our businesses But same the

the we aluminum believe, is we With toll still that, processing do, that growing.

grown too, we're the still stable little a of but business on, us side well, think carbon has platforms positioned concerned. on the carbon that we're market we the we better. there. be that is different Our And may side, We not think as for the

Operator

The Katja BMO from Capital comes Jancic question Markets. with

Katja Jancic

the given has in the talk Can semiconductor the bit down? you status market you of mentioned what a And also, about expansion. project Karla, the that is? slowed investments especially

Karla Lewis

Yes, Katja.

when a been And the to especially operating products have deal semiconductor levels what of lot U.S. record now really the the industry the going from semiconductor we globally. in globally. a dealing flow, supply at of weaker impacted for, have year a market think, little part some again, with, a buildup chain with factors a been in had I that we that's, over from So

some through is be and the have seeing activity been folks think with to the We our out, we're supply So managing of manufacturers. better little that. worked starting equipment glut a

far some little investments some term. on the facilities a build time are probably advanced long in of than does centers. our making, are to as semiconductor more very As other the our It These we still the we're bullish industry take service facilities.

So our is has It's and smaller still expansion been in a ramping but up one Texas bit, that producing. running.

Our in been continuing the process. larger through investment Texas has

this think facility. year, we'll I late U.S. be we're excited with year, of semiconductor And and we'll we've beginning there next the the investments probably what starting about comfortable able that to that made market. operate in in timing the to and be provide with

Katja Jancic

the And right now? a to then like seeing you does there? M&A What bit your shifting pipeline maybe are environment. How gears little look

Karla Lewis

We've working Reliance to our plans really us some strategic, the able Reliance with we're happy. helping announced. pretty some mean been already all good add year existing with They're companies growth and I the our companies. and family to with Yes. this we've really acquisitions of completed

And been say, happy we It's for what model. Reliance's would opportunity. year last see kind service so. I would centers see We've the the continue to who there. flow we of fit to pretty good flow a especially about with or continuous talk And been a

Operator

of The Lawson next Winder question Securities. comes Bank America with from

Lawson Winder

an get I wanted of steel pickup ordering off, first not to carbon whether or just in activity you're any seeing customers. So from idea

feedback started recently. activity weak involved, up potentially has a seasonality indicated that the but to pick of mills you has there's QX, Are understanding seeing a from after that? So pretty bit

Karla Lewis

about, can about long, and happening, QX talked we continued that we've are sometimes there need QX for back, they in as only do so in So and metal. hold decreases buyers price but talked will they when

did a see was uncertain. So would little quarter say we I second

some increased may saw back Reliance. think a seen people coming service talked been mills seemed companies pullback, industry, of center and the not the have from I like comments uncertainty we the the but in. about June, it then little our I've bit, about a there

manage that's our our to how our and shipping, how so place on buying and business patterns. consistent try customers' subject can try We we're as to we We as we to what based be orders. we buy

see seasonal we Reliance. So we to happening what's still subject I can pretty stable, much know really -- on of really don't that and the overall, But demand impacts. outside comment

Stephen Koch

the agree. to they understood book. It's We'd -- consistent a I order like from over want mills years Yes, we've Steve. that the

a market tons X quarter So the company instead not the of buys in -- that out then next of quarter. in and goes is we're XX,XXX

buying and every So month. we're consistently each

from not that that orders coming being or [indiscernible] our with trouble big heard We've they're the mills orders having they're competitors. filling our from

seen So at level. any the the carbon in activity we've not mill spike

Lawson Winder

for after this question wanted a mean the for fair. ask given mean, perceiving It's Totally all years. that, a to which up number a color. way, I follow helpful a how on are of Okay. up is just you of M&A and I it deal bit I different year, lull slightly picked has particularly value? activity Reliance really, really

[indiscernible] any to or a you is in area that's back opportunities weaker spread? comfortable for bid-ask Reliance? particular prices Or those little perhaps bit seeing the Are digestible bring spreads And an helping region? fairly it are more

Karla Lewis

Yes.

for side a consistent permanent the basis. on many more or income we them companies, long And years Reliance, value approach what normalized a valuation the we're on Reliance On companies. focus at M&A into we family level we how pretty term. we've really a had EBITDA bringing pretax to is the and When for think acquires

So long-term take view. we a really

And But bit. time. can long that certainly, business impact market we've been conditions a a the in outlooks

prices hold level. for long We it record did weren't we XXXX while but that certainly term. enjoyed it the here, XXXX, was at metal the not believe comfortable So that we would valuing companies

stayed approach, valuation long-term our our methodology consistent. with So normalized

didn't those we so get some And of deals.

market anyway get just view same outlook. done the in on Some the didn't those pricing of deals others because had

levels I now expectations a more forward. and going kind more between and so overall think of in buyers outlook earnings realistic And on sellers are line

Lawson Winder

bit helpful. Reliance? or very about election a November might And opportunities and think how we which just Very, I might risks about in of thinking your a try trickier question, and Great. business Okay. if for for then the coming up

Karla Lewis

our good for product in got in I look That's diverse through. is around many There That's are we're business. if diverse different well what would day. diverse things many, every require metal. always do end opportunities a say geographies, there risks base, markets. our Reliance what people products. We've news you out we manage and many And

there's on sell various of a used we other many most So even those are markets, shift And metals or still there. energy metal. priorities require out that if

we'll through just else So and preference like any bias don't or it have in direction. manage anything a

Operator

to comments. Lewis at her further closing this There questions are like for time. turn to I floor Karla over would no the back

Karla Lewis

Great.

thanks again today, every for day forward. our you Please to all safe. Reliance So of our company do thank call employees for to drive and be you joining that our each XX,XXX

we month, before close we next Reliance, be Thank and the metal. for out Conference. you to your that of call, remind participating than Virtual support Summer continued in like again we'll Seaport's And Annual are everyone I'd more

Operator

concludes teleconference. This you. today's Thank

You your at lines you time. may this your disconnect for participation. Thank

Reliance Steel & Aluminum (RS) 25 Jul 242024 Q2 Earnings call transcript