Fourth Quarter 2014 Financial Highlights

1. Sales were $2.58 billion, up 11.7% from $2.31 billion in the fourth quarter of 2013 and down 4.7% from $2.71 billion in the third quarter of 2014.
2. Tons sold were up 4.4% from the fourth quarter of 2013 and down 4.9% from the third quarter of 2014, with the average selling price per ton sold up 6.4% from the fourth quarter of 2013 and down 0.1% from the third quarter of 2014.
3. Net income attributable to Reliance was $92.3 million, up 49.4% from $61.8 million in the fourth quarter of 2013 and down 3.4% from $95.5 million in the third quarter of 2014.
4. Earnings per diluted share were $1.18, up 49.4% from $0.79 in the fourth quarter of 2013 and down 2.5% from $1.21 in the third quarter of 2014.
5. Non-GAAP earnings per diluted share were $1.01, up 7.4% from $0.94 in the fourth quarter of 2013 and down 24.1% from $1.33 in the third quarter of 2014.
6. A pre-tax LIFO charge, or expense, of $24.5 million, is included in cost of sales compared to a pre-tax LIFO credit, or income, of $12.7 million in the fourth quarter of 2013 and an expense of $20.0 million for the third quarter of 2014.
7. The effective tax rate was 26.6% compared to 33.0% in the fourth quarter of 2013 and 25.7% in the third quarter of 2014.
8. Cash flow from operations was $193.2 million for the fourth quarter of 2014 and net debt-to-total capital was 35.0% at December 31, 2014.
9. Completed the acquisition of Fox Metals and Alloys, Inc., effective December 1, 2014.
10. Repurchased $50 million of Reliance common stock.
11. Quarterly cash dividend increased to $0.40 per share, a 14% increase.

Full Year 2014 Financial Highlights

1. Sales were a record $10.45 billion, up 13.3% from $9.22 billion in 2013.
2. Tons sold were up 13.0% from 2013 and the average selling price per ton sold was up 0.4%.
3. Net income attributable to Reliance was $371.5 million, up 15.5% from $321.6 million in 2013.
4. Earnings per diluted share were $4.73, up 14.3% from $4.14 in 2013.
5. Non-GAAP earnings per diluted share were $4.83, up 8.5% from $4.45 in 2013.
6. A pre-tax LIFO charge, or expense, of $54.5 million, is included in cost of sales compared to a pre-tax LIFO credit, or income, of $50.2 million in 2013.
7. The effective tax rate was 31.1% compared to 32.1% in 2013.
8. Cash flow from operations was $356.0 million.

"Reliance achieved solid growth in 2014 and we are pleased with our strong operational execution throughout the year," said David H. Hannah, Chairman and CEO of Reliance. "Demand in the fourth quarter reflected the normal seasonal slowdown caused by fewer shipping days due to the holiday season and holiday-related closures by many of our customers.  However, with the exception of the energy markets, underlying demand momentum in the fourth quarter remained strong.  Reliance's sequential quarter 4.9% reduction in tons sold was better than the MSCI Industry average decline of 7.6% in the quarter.  Reliance also significantly outpaced the industry for the full year with a 6.1% increase in same store tons sold compared to the MSCI Industry average increase of 4.2%. Although metals pricing was generally stronger in 2014 than in 2013, steel pricing was constrained by historically high levels of imports supported, in part, by a strengthening U.S. dollar. This, plus the effects of significant decreases in the price of scrap and other steelmaking raw materials during the 2014 fourth quarter, resulted in falling steel prices that have continued into 2015 and negatively affected our gross profit margins."

Mr. Hannah continued, "With improved overall demand and pricing throughout the majority of the year, Reliance generated full year net sales growth of 13% over 2013 with nearly a 34% increase in full year operating income on a FIFO basis, reflecting another strong performance by our managers in the field.  We also completed three acquisitions in 2014 that nicely complement the Reliance family of companies in terms of geographic footprint, end market diversification and product mix."  

Mr. Hannah concluded, "During 2014, in addition to the acquisitions, we spent $190 million for capital expenditures to support organic growth initiatives, repurchased $50 million of our common stock, and paid regular dividends of $109 million to our shareholders.  Our healthy balance sheet and confidence in our operational execution provides a strong foundation for us to continue investing in the growth of our business while, at the same time, returning value to our shareholders through dividends and share repurchases."

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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 39 states and 12 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.