SEC Filings

10-Q
RELIANCE STEEL & ALUMINUM CO filed this Form 10-Q on 05/02/2019
Entire Document
 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

   

% of

 

 

 

 

 

% of

 

 

Dollar

 

Percentage

 

 

$  

   

Net Sales

    

 

$  

    

Net Sales

    

 

Change

    

Change

 

 

(dollars in millions)

   

 

 

 

 

 

Gross profit

$

866.9

 

29.3

%

   

$

819.9

 

29.7

%

   

$

47.0

 

5.7

%

 

Our gross profit increased in the first quarter of 2019 compared to the first quarter of 2018 due to higher metals prices, pricing discipline and our focus on higher margin orders. See “Net Sales” and “Cost of Sales” above for further discussion on product pricing trends and our LIFO inventory valuation reserve adjustments, respectively.

 

Our gross profit margin exceeded the high end of our sustainable range of 27% to 29%.

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

   

% of

 

 

 

 

 

% of

 

 

Dollar

 

Percentage

 

 

$  

   

Net Sales

    

 

$  

    

Net Sales

    

 

Change

    

Change

 

 

(dollars in millions)

 

 

 

 

 

 

S,G&A expense

$

532.1

 

18.0

%

   

$

519.4

 

18.8

%

   

$

12.7

 

2.4

%

S,G&A expense, same-store

$

525.8

 

17.9

%

   

$

518.4

 

18.8

%

   

$

7.4

 

1.4

%

Depreciation & amortization expense  

$

54.0

 

1.8

%

   

$

54.1

 

2.0

%

   

$

(0.1)

 

(0.2)

%

 

Same-store amounts exclude the results of our acquisitions (other than our purchase of the remaining 40% ownership of Acero Prime) completed in 2018.

 

Our S,G&A expense as a percentage of sales decreased mainly due to our higher sales levels, as a result of higher average selling prices.

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

% of

 

 

 

 

 

% of

 

 

Dollar

 

Percentage

 

 

$

    

Net Sales

    

 

$

    

Net Sales

    

 

Change

    

Change

 

 

(dollars in millions)

 

 

 

 

 

 

Operating income

$

280.8

 

9.5

%  

 

$

246.4

 

8.9

%  

 

$

34.4

 

14.0

%

 

Our operating income was higher in the first quarter of 2019 compared to the first quarter of 2018 mainly due to higher gross profit dollars driven from higher average selling prices. Our operating income margin increased mainly due to the decline in our S,G,&A expense as a percentage of sales due to our higher sales levels. See “Net Sales” above for trends in both demand and costs of our products and “Expenses” for trends in our operating expenses.

 

17