SEC Filings

10-Q
RELIANCE STEEL & ALUMINUM CO filed this Form 10-Q on 11/13/2000
Entire Document
 
<PAGE>   13
Cash was used in operations during the nine month period ended September 30,
2000, as compared to cash provided by operations during the corresponding 1999
period, primarily due to increased working capital needs during the 2000 period
necessary to support the increased sales activity.

Capital expenditures, excluding acquisitions, were $22,111 for the nine months
ended September 30, 2000. The Company had no material commitments for capital
expenditures as of September 30, 2000. The Company anticipates that funds
generated from operations and funds available under its line of credit will be
sufficient to meet its working capital needs for the foreseeable future. The
purchases of Hagerty, Toma and United were funded with borrowings on the
Company's line of credit.

The Board of Directors declared a 3-for-2 common stock split, in the form of a
50% stock dividend, effective September 24, 1999, to shareholders of record
September 2, 1999.

On August 31, 1998, the Board of Directors of the Company approved the purchase
of up to an additional 3,750,000 shares of the Company's outstanding Common
Stock through its Stock Repurchase Plan, for a total of 6,000,000 shares. During
the nine months ended September 30, 2000, the Company repurchased 595,950 shares
of its Common Stock at an average purchase price of $20.74 per share. The
Company has purchased a total of 3,268,275 shares of its Common Stock, at an
average purchase price of $11.88 per share, as of September 30, 2000, all of
which were treated as authorized but unissued shares. The Company generally
repurchases its stock when the stock price falls to a level that causes the use
of capital to repurchase stock to be more accretive than the use of capital for
an acquisition. The Company believes such purchases enhance shareholder value
and reflect its confidence in the long-term growth potential of the Company.

SEASONALITY

The Company recognizes that some of its customers may be in seasonal businesses,
especially customers in the construction industry. As a result of the Company's
geographic, product and customer diversity, however, the Company's operations
have not shown any material seasonal trends. Revenues in the months of November
and December traditionally have been lower than in other months because of a
reduced number of working days for shipments of the Company's products and
holiday closures for some of its customers. There can be no assurance that
period-to-period fluctuations will not occur in the future. Results of any one
or more quarters are therefore not necessarily indicative of annual results.

THIS FORM 10-Q MAY CONTAIN FORWARD-LOOKING STATEMENTS RELATING TO FUTURE
FINANCIAL RESULTS. ACTUAL RESULTS MAY DIFFER MATERIALLY AS A RESULT OF FACTORS
OVER WHICH RELIANCE STEEL & ALUMINUM CO. HAS NO CONTROL. THESE RISK FACTORS AND
ADDITIONAL INFORMATION ARE INCLUDED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K.


                                       11