Reliance Steel & Aluminum
Annual Report 2022

Plain-text annual report

GOING STRONG. GROWING STRONGER. RELIANCE STEEL & ALUMINUM CO. 2022 ANNUAL REPORT DECADE AFTER DECADE, OUR BUSINESS MODEL HAS OVERCOME THE MANY CHALLENGES IT HAS FACED. YEAR AFTER YEAR, OUR INVESTMENTS IN OUR PEOPLE AND EQUIPMENT HAVE ADDED VALUE. 1 2022 ANNUAL REPORTDAY AFTER DAY, WE WORK TO BUILD A CULTURE OF SAFETY ACROSS OUR FAMILY OF COMPANIES. 2 RELIANCE STEEL & ALUMINUM CO.MINUTE BY MINUTE, WE’RE FINDING OPPORTUNITIES TO EXPAND AND STAND READY TO GROW. 3 2022 ANNUAL REPORTBECAUSE EVERY MOMENT, WE ARE GROWING STRONGER. - $1 million dollars donated to Ronald McDonald House Charities® to commemorate the expansion of Reliance Cares - Record financial results: $17.03 billion net sales, $30.03 non-GAAP EPS, $2.12 billion annual cash flow from operations - 2022 was our safest year yet – record low TRIR of 1.61 - Fastmarkets Global Awards for Steel Excellence, Service Center of the Year – 4th consecutive win - 15 years on the Fortune 500 list – #261 in 2022 - 14 consecutive years at the top of Metal Center News’ Top 50 Service Centers list 4 RELIANCE STEEL & ALUMINUM CO.DEAR FELLOW STOCKHOLDERS, We are extremely grateful to each member of our proactive commitment, engagement, and accountability Reliance Family of Companies for achieving our safest with every employee. We stay focused on reducing the year ever in 2022! We are also very proud of the strong number of injuries with zero as our goal; the safety, health operational execution which generated record-setting and wellbeing of our employees, our customers, and our financial results across nearly every metric. Importantly, communities remains our number one priority in all areas our team performed well in a complex environment, of our business. facing ongoing inflationary headwinds, recessionary concerns, supply chain disruptions including labor shortages, and overall declining metal prices in the Record Operational and Financial Performance Reliance produced record net sales of $17.03 billion second half of the year. Our managers in the field once in 2022. Our proven, resilient business model – which again did a tremendous job navigating these challenges, is differentiated by the diversity of end markets, supporting our confidence in Reliance’s ability to continue growing stronger, no matter the circumstances. products, and geography – also benefitted from solid demand trends and favorable metals pricing Safest Year Ever Most importantly, we accomplished our record financial compared to historical levels. Our extensive network of approximately 315 locations distribute a full-line of over 100,000 metal products to more than 125,000 results in a safe and effective manner. Our 2022 Total customers in a broad range of industries including Recordable Incident Rate (TRIR) of 1.61 was an all-time low non-residential construction, industrial machinery, and an achievement of which we are particularly proud. consumer products, heavy equipment, semiconductor, “BE SAFE, BE WELL, BE RELIANCE” was the theme of our commercial aerospace, and more. Consistent with 2022 company-wide SMART Safety program to promote our focus on small orders with quick turnaround and NET SALES (IN MILLIONS) NET INCOME (IN MILLIONS) $17,025.0 $1,840.1 $14,093.3 $1,413.0 $11,534.5 $10,973.8 $8,811.9 $633.7 $701.5 $369.1 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 5 2022 ANNUAL REPORTCASH FLOW FROM OPERATIONS (IN MILLIONS) $2,118.6 $1,301.5 $1,173.0 $664.6 $799.4 2018 2019 2020 2021 2022 value-added processing, our average order size in 2022 was $3,670, 50% of our orders included value-added metals processing services, and approximately 40% of our orders were delivered within 24 hours. Our continued investment in value-added processing capabilities contributed to a 30.8% gross profit margin in 2022, at the high end of our estimated sustainable annual range of 29% to 31%, despite declining metal prices on the majority of our products in the second half of the year. This strong gross profit margin, along with our effective expense management, combined to generate record annual non-GAAP pretax income of $2.44 billion and record non-GAAP diluted earnings per share of $30.03. Our record profitability and effective EARNINGS PER SHARE (DILUTED) $21.97 $8.75 $10.34 $5.66 $29.92 working capital management drove record annual cash flow from operations of $2.12 billion in 2022. Balanced Capital Allocation Strategy Our record cash generation strengthened our liquidity position and enables us to continue executing our disciplined and balanced capital allocation strategy focused on both growth and stockholder returns. We set a new annual spend record by investing nearly $342 million in capital expenditures in 2022. We 2018 2019 2020 2021 2022 deployed these funds to maintain, upgrade, and expand RETURN ON EQUITY* Based on beginning of the year equity, as adjusted. 28% 14% 15% 7% many of our facilities as well as to purchase and install over 200 new pieces of metal processing equipment, 32% energy-efficient lighting, and solar panels. Our capital expenditure budget for 2023 sets another new record at $500 million and, with approximately two-thirds targeting growth initiatives, supports our goal of growing stronger. While we did not complete any acquisitions in 2022, the pipeline remains healthy. We continue to evaluate many opportunities and will pursue those that meet our disciplined criteria. 2018 2019 2020 2021 2022 * Return on Reliance stockholders’ equity is based on the beginning of the year equity amount, adjusted for $630.3 million, $323.5 million, $337.3 million, $50.0 million and $484.9 million of share repurchases for 2022, 2021, 2020, 2019 and 2018, respectively. In 2022, Reliance returned over $847 million to our stockholders through dividends and share repurchases. We have paid regular quarterly cash dividends for 63 6 RELIANCE STEEL & ALUMINUM CO.Karla R. Lewis President and Chief Executive Officer Stephen P. Koch Executive Vice President and Chief Operating Officer Arthur Ajemyan Senior Vice President and Chief Financial Officer consecutive years and have increased our dividend 30 business, advancements in automation and technology times since our 1994 IPO, including our most recent increase of 14.3% to $1.00 per share ($4.00 per share on an annualized basis) in the first quarter of 2023. We in our operations, and an increased commitment to our communities as we grow stronger in the future. repurchased approximately 3.5 million shares of RS We would like to express our sincerest gratitude to all of common stock at an average cost of $178.81 per share, our employees, customers, suppliers, and stockholders for a total of $630.3 million, in 2022. for their continued confidence in and ongoing support Going Strong Over the past five years, Reliance has returned over $2.68 billion in capital to our stockholders – representing approximately 54% of our net income over the same period – through both dividends and share repurchases and concurrently invested $1.93 billion in growth-related activities through capital expenditures and acquisitions. These actions underscore our commitments to growth and delivering increased value to our stockholders. On behalf of our team and the Board of Directors, we would like to acknowledge Jim Hoffman for his leadership and significant contributions to Reliance both during his tenure as CEO and over the course of his many years of service to the Company. We honor all the success Reliance has achieved throughout our 84-year history. Growing Stronger We are excited to move into our next chapter. We will continue to focus on the safety, development, and wellbeing of our employees, the profitable growth of our of Reliance. Sincerely, Karla R. Lewis President and Chief Executive Officer Stephen P. Koch Executive Vice President and Chief Operating Officer Arthur Ajemyan Senior Vice President and Chief Financial Officer 7 2022 ANNUAL REPORTSELECTED CONSOLIDATED FINANCIAL DATA In millions, except number of shares which are reflected in thousands and per share amounts. Year Ended December 31, Income Statement Data: Net sales Cost of sales (exclusive of depreciation and amortization expense) 2022 2021 2020 2019 2018 $17,025.0 $14,093.3 $8,811.9 $10,973.8 $11,534.5 11,773.7 9,603.0 6,036.8 7,644.4 8,253.0 Gross profit(1) 5,251.3 4,490.3 2,775.1 3,329.4 3,281.5 Warehouse, delivery, selling, general and administrative expense 2,504.2 2,306.5 1,874.0 2,095.4 2,091.8 Depreciation and amortization expense Impairment of long-lived assets Operating income Other (income) expense: Interest expense Other expense (income), net Income before income taxes Income tax provision Net income Less: net income attributable to noncontrolling interests 240.2 - 230.2 4.7 2,506.9 1,948.9 62.3 14.2 2,430.4 586.2 1,844.2 4.1 62.7 3.1 1,883.1 465.7 1,417.4 4.4 227.3 108.0 565.8 62.9 24.7 478.2 105.8 372.4 3.3 219.3 1.2 1,013.5 85.0 (0.8) 929.3 223.2 706.1 4.6 215.2 37.0 937.5 86.2 0.7 850.6 208.8 641.8 8.1 Net income attributable to Reliance $1,840.1 $1,413.0 $369.1 $701.5 $633.7 Earnings Per Share: Basic Diluted Weighted average shares outstanding - basic Weighted average shares outstanding - diluted Other Data: $30.39 $29.92 60,559 61,495 $22.35 $21.97 63,217 64,327 $5.74 $5.66 64,328 65,263 $10.49 $10.34 66,885 67,855 $8.85 $8.75 71,621 72,441 Cash flow provided by operations $2,118.6 $799.4 $1,173.0 $1,301.5 $664.6 Capital expenditures Cash dividends per share Balance Sheet Data (December 31): Working capital Total assets Short-term debt Long-term debt Total equity 341.8 3.50 236.6 2.75 172.0 2.50 242.2 2.20 239.9 2.00 $3,511.3 $3,095.1 $2,499.8 $2,334.9 $2,585.9 10,329.9 9,536.0 8,106.8 8,131.1 8,044.9 508.2 1,139.4 5.0 1,642.0 7,095.9 6,093.7 6.0 64.9 65.2 1,638.9 5,122.7 1,523.6 2,138.5 5,214.1 4,679.5 (1) Gross profit, calculated as net sales less cost of sales, is a non-GAAP financial measure as it excludes depreciation and amortization expense associated with the corresponding sales. About half of our orders are basic distribution with no processing services performed. For the remainder of our sales orders, we perform “first-stage” processing, which is generally not labor intensive as we are simply cutting the metal to size. Because of this, the amount of related labor and overhead, including depreciation and amortization expense, is not significant and is excluded from cost of sales. Therefore, our cost of sales is substantially comprised of the cost of the material we sell. We use gross profit as shown above as a measure of operating performance. Gross profit is an important operating and financial measure, as fluctuations in our gross profit can have a significant impact on our earnings. Gross profit, as presented, is not necessarily comparable with similarly titled measures for other companies. 8 RELIANCE STEEL & ALUMINUM CO.9 2022 ANNUAL REPORTGEOGRAPHIC PRESENCE INTERNATIONAL Belgium Mexico Canada Singapore China South Korea France Turkey India United Arab Emirates Malaysia United Kingdom SALES BY REGION Mountain 3% Pacific Northwest 3% International 6% Northeast 7% STATES Alabama Alaska Arizona Arkansas California Colorado Kentucky Louisiana Maryland Ohio Oklahoma Oregon Massachusetts Pennsylvania Michigan Minnesota Rhode Island South Carolina Connecticut Missouri Tennessee Florida Georgia Idaho Illinois Indiana Iowa Kansas Montana Nevada Texas Utah New Hampshire Virginia New Jersey Washington New Mexico Wisconsin New York North Carolina Mid-Atlantic 7% Southeast 19% West/Southwest 22% Midwest 33% 10 RELIANCE STEEL & ALUMINUM CO.SALES BY PRODUCT SALES BY COMMODITY Carbon steel plate Carbon steel tubing Carbon steel structurals Hot-rolled steel sheet and coil Carbon steel bar Galvanized steel sheet and coil Cold-rolled steel sheet and coil Stainless steel bar and tube Stainless steel sheet and coil Stainless steel plate Aluminum bar and tube Common alloy aluminum sheet and coil Heat-treated aluminum plate Common alloy aluminum plate Heat-treated aluminum sheet and coil Alloy bar and rod Alloy tube Miscellaneous, including titanium, manufactured parts, and scrap Toll processing* — aluminum, carbon steel, and stainless steel Copper and brass 11% 11% 10% 9% 5% 5% 3% 8% 7% 2% 5% 4% 4% 1% 1% 3% 1% 5% 3% 2% CARBON STEEL 54% STAINLESS STEEL 17% ALUMINUM 15% ALLOY 4% OTHER 10% *Includes revenues for logistics services provided by our toll processing companies 11 2022 ANNUAL REPORT SELECTED CONSOLIDATED FINANCIAL DATA In millions, except per share amounts. Year Ended December 31, 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Income Statement Data: Net sales Operating income(1) Pretax income Income taxes(2) Net income attributable to Reliance(2) Weighted average shares outstanding – diluted Balance Sheet Data (December 31): Current assets Working capital Net fixed assets Total assets(3) Current liabilities Short-term debt(3) Long-term debt(3) Total equity Per Share Data: Earnings – diluted(2) Dividends Book value(4) Ratio Analysis: Return on Reliance stockholders’ equity(5) Current ratio Net debt-to-total capital ratio(6) Gross profit margin(7) Operating income margin(1) Pretax income margin Net income margin – Reliance(2) $17,025.0 $14,093.3 $8,811.9 $10,973.8 $11,534.5 $9,721.0 $8,613.4 $9,350.5 $10,451.6 $9,223.8 $8,442.3 2,506.9 2,430.4 586.2 1,840.1 61.5 $4,886.6 3,511.3 1,974.6 10,329.9 1,375.3 508.2 1,139.4 7,095.9 $29.92 $3.50 $120.56 31.6% 3.6 6.3% 30.8% 14.7% 14.3% 10.8% 1,948.9 1,883.1 465.7 1,413.0 64.3 $4,160.1 3,095.1 1,836.8 9,536.0 1,065.0 5.0 1,642.0 6,093.7 $21.97 $2.75 $98.48 28.0% 3.9 18.1% 31.9% 13.8% 13.4% 10.0% 565.8 478.2 105.8 369.1 65.3 $3,112.8 2,499.8 1,792.2 8,106.8 613.0 6.0 1,638.9 5,122.7 $5.66 $2.50 $80.43 7.4% 5.1 15.8% 31.5% 6.4% 5.4% 4.2% 1,013.5 929.3 223.2 701.5 67.9 $3,010.2 2,334.9 1,795.2 8,131.1 675.3 64.9 1,523.6 5,214.1 $10.34 $2.20 $77.83 15.1% 4.5 21.4% 30.3% 9.2% 8.5% 6.4% $3,285.0 $3,051.3 $2,688.5 $2,554.2 $2,738.9 $2,277.4 937.5 850.6 208.8 633.7 72.4 2,585.9 1,729.9 8,044.9 699.1 65.2 2,138.5 4,679.5 $8.75 $2.00 $69.83 13.9% 4.7 30.8% 28.4% 8.1% 7.4% 5.5% 662.4 583.8 (37.2) 613.4 73.5 2,347.6 1,656.3 7,751.0 703.7 92.0 1,809.4 4,699.9 $8.34 $1.80 $64.29 9.8% 4.3 27.2% 28.7% 6.8% 6.0% 6.3% 517.8 429.2 120.1 304.3 73.1 2,032.5 1,662.2 7,411.3 656.0 82.5 1,846.7 4,179.1 $4.16 $1.65 $57.07 7.8% 4.1 30.3% 30.1% 6.0% 5.0% 3.5% 549.8 458.7 142.5 311.5 74.9 1,564.5 1,635.5 7,121.6 989.7 500.8 1,427.9 3,942.7 617.4 546.3 170.0 371.5 78.6 $3,121.1 2,458.3 1,656.4 7,822.4 662.8 93.9 2,208.1 4,127.9 554.3 478.3 153.6 321.6 77.6 2,165.5 1,603.9 7,323.6 573.4 36.5 2,055.1 3,884.4 $4.16 $1.60 $4.73 $1.40 $4.14 $1.26 $54.59 $53.03 $49.99 8.0% 2.6 31.8% 27.2% 5.9% 4.9% 3.3% 9.6% 4.7 34.9% 25.1% 5.9% 5.2% 3.6% 9.0% 4.8 34.1% 26.0% 6.0% 5.2% 3.5% 661.6 609.4 201.1 403.5 75.7 1,699.2 1,240.7 5,846.7 578.2 83.6 1,112.8 3,567.4 $5.33 $0.80 $46.82 12.8% 3.9 23.6% 26.1% 7.8% 7.2% 4.8% (1) Operating income represents net sales less cost of sales, warehouse, delivery, selling, general and administrative expense, depreciation and amortization expense, and impairment of long-lived assets. The calculation of operating income in years 2012 through 2022 includes various non-recurring charges and credits, including impairment charges in 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2013 and 2012. Additionally, the adoption of accounting rule changes in 2017 affected the presentation of operating income. Prior year operating income and margin amounts have been retrospectively adjusted to conform to the current presentation. (2) 2017 includes a $207.3 million, or $2.82 per share, income tax benefit as a result of the Tax Cuts and Jobs Act of 2017. (3) The adoption of accounting rule changes in 2015 affected the presentation of debt issuance costs. Prior year total assets, long-term debt and net debt-to-total capital ratio amounts have been retrospectively adjusted to conform to the current presentation. (4) Book value per share is calculated as Reliance stockholders’ equity divided by the number of common shares outstanding as of December 31 of each year. (5) Return on Reliance stockholders’ equity is based on the beginning of year equity amount, except for 2022, 2021, 2020, 2019, 2018 and 2015, which are adjusted for $630.3 million, $323.5 million, $337.3 million, $50.0 million, $484.9 million and $355.5 million of share repurchases, respectively, and 2017, which is adjusted for a $207.3 million income tax benefit as a result of the Tax Cuts and Jobs Act of 2017. 12 RELIANCE STEEL & ALUMINUM CO.In millions, except per share amounts. Income Statement Data: Net sales Operating income(1) Pretax income Income taxes(2) Net income attributable to Reliance(2) Weighted average shares outstanding – diluted Balance Sheet Data (December 31): Current assets Working capital Net fixed assets Total assets(3) Current liabilities Short-term debt(3) Long-term debt(3) Total equity Per Share Data: Earnings – diluted(2) Dividends Book value(4) Ratio Analysis: Return on Reliance stockholders’ equity(5) Current ratio Net debt-to-total capital ratio(6) Gross profit margin(7) Operating income margin(1) Pretax income margin Net income margin – Reliance(2) 2,506.9 2,430.4 586.2 1,840.1 61.5 $4,886.6 3,511.3 1,974.6 10,329.9 1,375.3 508.2 1,139.4 7,095.9 $29.92 $3.50 $120.56 31.6% 3.6 6.3% 30.8% 14.7% 14.3% 10.8% 1,948.9 1,883.1 465.7 1,413.0 64.3 $4,160.1 3,095.1 1,836.8 9,536.0 1,065.0 5.0 1,642.0 6,093.7 $21.97 $2.75 $98.48 28.0% 3.9 18.1% 31.9% 13.8% 13.4% 10.0% 565.8 478.2 105.8 369.1 65.3 $3,112.8 2,499.8 1,792.2 8,106.8 613.0 6.0 1,638.9 5,122.7 $5.66 $2.50 $80.43 7.4% 5.1 15.8% 31.5% 6.4% 5.4% 4.2% 1,013.5 929.3 223.2 701.5 67.9 $3,010.2 2,334.9 1,795.2 8,131.1 675.3 64.9 1,523.6 5,214.1 $10.34 $2.20 $77.83 15.1% 4.5 21.4% 30.3% 9.2% 8.5% 6.4% Year Ended December 31, 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 $17,025.0 $14,093.3 $8,811.9 $10,973.8 $11,534.5 $9,721.0 $8,613.4 $9,350.5 $10,451.6 $9,223.8 $8,442.3 937.5 850.6 208.8 633.7 72.4 662.4 583.8 (37.2) 613.4 73.5 517.8 429.2 120.1 304.3 73.1 549.8 458.7 142.5 311.5 74.9 $3,285.0 $3,051.3 $2,688.5 $2,554.2 617.4 546.3 170.0 371.5 78.6 $3,121.1 2,458.3 1,656.4 7,822.4 662.8 93.9 2,208.1 4,127.9 554.3 478.3 153.6 321.6 77.6 661.6 609.4 201.1 403.5 75.7 $2,738.9 $2,277.4 2,165.5 1,603.9 7,323.6 573.4 36.5 2,055.1 3,884.4 1,564.5 1,635.5 7,121.6 989.7 500.8 1,427.9 3,942.7 2,585.9 1,729.9 8,044.9 699.1 65.2 2,138.5 4,679.5 $8.75 $2.00 $69.83 13.9% 4.7 30.8% 28.4% 8.1% 7.4% 5.5% 2,347.6 1,656.3 7,751.0 703.7 92.0 1,809.4 4,699.9 $8.34 $1.80 $64.29 9.8% 4.3 27.2% 28.7% 6.8% 6.0% 6.3% 2,032.5 1,662.2 7,411.3 656.0 82.5 1,846.7 4,179.1 $4.16 $1.65 $57.07 7.8% 4.1 30.3% 30.1% 6.0% 5.0% 3.5% 1,699.2 1,240.7 5,846.7 578.2 83.6 1,112.8 3,567.4 $5.33 $0.80 $46.82 12.8% 3.9 23.6% 26.1% 7.8% 7.2% 4.8% $4.16 $1.60 $4.73 $1.40 $4.14 $1.26 $54.59 $53.03 $49.99 8.0% 2.6 31.8% 27.2% 5.9% 4.9% 3.3% 9.6% 4.7 34.9% 25.1% 5.9% 5.2% 3.6% 9.0% 4.8 34.1% 26.0% 6.0% 5.2% 3.5% (6) Net debt-to-total capital ratio is calculated as total debt (net of cash) divided by Reliance stockholders’ equity plus total debt (net of cash). (7) Gross profit, calculated as net sales less cost of sales, and gross profit margin, calculated as gross profit divided by net sales, are non-GAAP financial measures as they exclude depreciation and amortization expense associated with the corresponding sales. About half of our orders are basic distribution with no processing services performed. For the remainder of our sales orders, we perform “first-stage” processing which is generally not labor intensive as we are simply cutting the metal to size. Because of this, the amount of related labor and overhead, including depreciation and amortization, is not significant and is excluded from cost of sales. Therefore, our cost of sales is substantially comprised of the cost of the material we sell. We use gross profit margin as shown above as a measure of operating performance. Gross profit margin is an important operating and financial measure, as fluctuations in our gross profit margin can have a significant impact on our earnings. Gross profit margin, as presented, is not necessarily comparable with similarly titled measures for other companies. 13 2022 ANNUAL REPORT RELIANCE LOCATIONS DIVISIONS Bralco Metals bralco.com Los Angeles, CA – Headquarters 714-736-4800 Albuquerque, NM 505-345-0959 Dallas, TX 972-276-2676 Phoenix, AZ 602-252-1918 Seattle, WA 253-395-0614 Wichita, KS 316-838-9351 Affiliated Metals A Bralco Metals Company affiliatedmetals.com Salt Lake City, UT 801-363-1711 MetalCenter A Bralco Metals Company Los Angeles, CA 562-944-3322 Olympic Metals A Bralco Metals Company Denver, CO 303-286-9700 Central Plains Steel Co. cpssteel.com Wichita, KS 316-636-4500 Reliance Aerospace Solutions rsaerospace.com Cypress, CA 877-727-6073 Reliance Metalcenter relianceunioncity.com Union City, CA 510-476-4400 Reliance Metals Group Reliance Metalcenter reliancecos.com Colorado Springs, CO 719-390-4911 reliancentx.com Dallas, TX 817-640-7222 reliancephx.com Phoenix, AZ 602-275-4471 Phoenix, AZ 480-968-6156 reliancemetalcentersaltlakecity.com Salt Lake City, UT 801-974-5300 reliancesa.com San Antonio, TX 210-661-2301 reliancemetalcentersd.com San Diego, CA 619-263-2141 Smith Pipe & Steel Company smithpipe.com Phoenix, AZ 602-257-9494 Reliance Steel Company Albuquerque, NM 505-247-1441 Los Angeles, CA 323-583-6111 Tube Service Co. tubeservice.com Los Angeles, CA – Headquarters 562-695-0467 Denver, CO 303-321-9200 Phoenix, AZ 602-267-9865 Portland, OR 503-944-5420 San Diego, CA 619-579-3011 San Jose, CA 408-946-5500 SUBSIDIARIES Admiral Metals Servicenter Company, Incorporated admiralmetals.com Woburn, MA – Headquarters 781-933-8300 Guilderland, NY 781-953-4632 Largo, FL 614-330-8645 Oceanside, NY 781-953-7192 Rochester, NY 585-370-2740 Telford, PA 215-778-5832 Twinsburg, OH 339-227-1172 Allegheny Steel Distributors, Inc. alleghenysteel.com Pittsburgh, PA 412-767-5000 All Metal Services Limited allmetal.co.uk Birmingham, United Kingdom – Headquarters 44 16 7543 0307 Belfast, United Kingdom 44 28 9073 9648 Bolton, United Kingdom 44 19 4284 0777 Bristol, United Kingdom 44 11 7982 2484 Losse, France 33 558 936 800 All Metal Services India Private Limited A Subsidiary of All Metal Services Limited Belagavi, India 91 80 2837 9124 All Metal Services Ltd. (Xi’an) A Subsidiary of All Metal Services Limited Xi’an, People’s Republic of China 86 29 8612 5300 All Metal Services (Malaysia) Sdn. Bhd. A Subsidiary of All Metal Services Limited Selangor Darul Ehsan, Malaysia 60 3 7803 5643 14 RELIANCE STEEL & ALUMINUM CO. All Metals Processing & Logistics, Inc. allmetals.com Los Angeles, CA 909-429-1336 Spartanburg, SC – Headquarters 864-574-8050 Seattle, WA – Sales Office 253-735-0181 Cartersville, GA 770-427-7379 American Metals Corporation DBA American Steel american-metals.com Portland, OR – Headquarters 503-651-6700 Fresno, CA 559-266-0881 Sacramento, CA 916-371-7700 Seattle, WA 253-437-4080 Alaska Steel Company A Division of American Metals Corporation alaskasteel.com Anchorage, AK – Headquarters 907-561-1188 Fairbanks, AK 907-456-2719 Kenai, AK 907-283-3880 Haskins Steel Company A Division of American Metals Corporation haskinssteelinc.com Spokane, WA 509-535-0657 Lampros Steel A Division of American Metals Corporation lamprossteel.com Portland, OR 503-285-6667 LSI Plate A Division of American Metals Corporation Rancho Cucamonga, CA 877-877-7528 Plate Sales A Division of American Metals Corporation Portland, OR 503-286-0039 AMI Metals, Inc. amimetals.com Nashville, TN – Headquarters 615-377-0400 Fort Worth, TX 817-831-9586 Spokane, WA 509-570-5880 St. Louis, MO 636-946-9492 Swedesboro, NJ 856-241-9180 Wichita, KS 316-945-7771 AMI Metals Aero Services Ankara Havacılık Anonim Şirketi A Subsidiary of AMI Metals, Inc. Ankara, Turkey 90 312 810 0000 AMI Metals Europe SPRL A Subsidiary of AMI Metals, Inc. Gosselies, Belgium 32 71 37 67 99 AMI Metals UK Limited Ellesmere Port, United Kingdom 44 151 355 6035 Best Manufacturing, Inc. bestmanufacturinginc.com Jonesboro, AR 870-931-9533 CCC Steel, Inc. Los Angeles, CA 310-637-0111 IMS Steel Co. A Division of CCC Steel, Inc. Salt Lake City, UT 801-973-1000 Chapel Steel Corp. chapelsteel.com Philadelphia, PA – Corporate Office 215-793-0899 Birmingham, AL 800-641-1006 Birmingham, AL – Sales Office 205-781-0317 Chicago, IL 815-937-1970 Chicago, IL – Sales Office 708-429-2244 Houston, TX 713-462-4449 Philadelphia, PA 610-705-0477 Portland, OR 503-228-3355 Tulsa, OK 844-964-0335 Chapel Steel Canada, Ltd. Hamilton, Ontario, Canada 289-780-0570 Chatham Steel Corporation chathamsteel.com Savannah, GA – Headquarters 912-233-4182 Birmingham, AL 205-791-2261 Columbia, SC 803-799-8888 Durham, NC 919-682-3388 Orlando, FL 407-859-0310 Clayton Metals, Inc. claytonmetals.com Chicago, IL – Headquarters 630-860-7000 Cincinnati, OH – Sales Office 513-662-2400 Parsipanny, NJ 973-588-1100 Continental Alloys & Services Limited contalloy.com Brechin, Scotland 44 135 662 5515 Peterhead, Scotland 44 177 948 0420 Continental Alloys & Services Pte. Ltd. Jurong, Singapore 65 6690 0178 Continental Alloys & Services (Malaysia) Sdn. Bhd. A Subsidiary of Continental Alloys & Services Pte. Ltd. Nusajaya, Malaysia 60 7 531 9155 Continental Alloys Middle East FZE Dubai, United Arab Emirates 971 4 8809770 15 2022 ANNUAL REPORT Crest Steel Corporation creststeel.com Riverside, CA 951-727-2600 Earle M. Jorgensen Company emjmetals.com Los Angeles, CA – Headquarters 323-567-1122 Diamond Manufacturing Company diamondman.com Wyoming, PA – Headquarters 800-233-9601 Michigan City, IN 219-874-2374 McKey Perforating Co. A Division of Diamond Manufacturing Company mckeyperforatedmetal.com New Berlin, WI 800-345-7373 Perforated Metals Plus A Division of Diamond Manufacturing Company perforated-metals.com Charlotte, NC 704-598-0443 Ferguson Perforating Company A Subsidiary of Diamond Manufacturing Company fergusonperf.com Providence, RI – Headquarters 401-941-8876 New Castle, PA 724-657-8703 DuBose National Energy Fasteners & Machined Parts, Inc. dubosenes.com Cleveland, OH 216-362-1700 DuBose National Energy Services, Inc. dubosenes.com Clinton, NC – Headquarters 910-590-2151 Atlanta, GA – Sales Office 678-608-3660 Charlotte, NC – Sales Office 704-295-1060 Exton, PA – Sales Office 610-594-9413 Durrett Sheppard Steel Co., Inc. durrettsheppard.com Baltimore, MD 410-633-6800 Atlanta, GA 678-894-2500 Birmingham, AL 205-814-0043 Boise, ID 503-283-2251 Boston, MA 508-435-6854 Charlotte, NC 704-588-3001 Chicago, IL 847-301-6100 Cincinnati, OH 513-771-3223 Cleveland, OH 330-425-1500 Dallas, TX 214-741-1761 Denver, CO 303-287-0381 Detroit, MI 734-402-8110 Hartford, CT 508-435-6854 Houston, TX 713-672-1621 Indianapolis, IN 317-838-8899 Kansas City, MO 816-483-4140 Lafayette, LA 713-672-1621 Memphis, TN 901-317-4300 Minneapolis, MN 763-784-5000 Oakland, CA 510-487-2700 Orlando, FL 800-365-5454 Philadelphia, PA 215-949-2850 Phoenix, AZ 602-272-0461 Portland, OR 503-283-2251 Quad Cities, IA 563-285-5340 Richmond, VA 804-732-7491 Rochester, NY 330-425-1500 Salt Lake City, UT 801-383-3808 Seattle, WA 253-872-0100 St. Louis, MO 314-291-6080 Tulsa, OK 918-835-1511 Wrightsville, PA 215-949-2850 Steel Bar A Division of Earle M. Jorgensen Company Greensboro, NC 336-294-0053 Reliance Metals Canada Limited A Subsidiary of Earle M. Jorgensen Company rmcl.com Edmonton, Alberta, Canada – Corporate Office 780-801-4114 Earle M. Jorgensen (Canada) A Division of Reliance Metals Canada Limited emjmetals.ca Edmonton, Alberta, Canada – Headquarters 780-801-4015 Dartmouth, Nova Scotia, Canada 902-932-7570 Montreal, Quebec, Canada 450-661-5181 North Bay, Ontario, Canada 705-474-0866 Quebec City, Quebec, Canada 418-870-1422 Toronto, Ontario, Canada 905-564-0866 Vancouver, British Columbia, Canada 604-468-4747 Encore Metals A Division of Reliance Metals Canada Limited encoremetals.com Vancouver, British Columbia, Canada – Headquarters 604-940-0439 16 RELIANCE STEEL & ALUMINUM CO. Calgary, Alberta, Canada 403-236-1418 Edmonton, Alberta, Canada 780-436-6660 Montreal, Quebec, Canada 450-978-8877 Prince George, British Columbia, Canada 250-563-3343 Toronto, Ontario, Canada 905-878-1156 Winnipeg, Manitoba, Canada 204-663-1450 Feralloy Corporation feralloy.com Chicago, IL – Corporate Office 773-380-1500 Charleston, SC 843-336-4107 Decatur, AL 256-301-0500 Ghent, KY 502-206-7002 Portage, IN 219-787-9698 Acero Prime Feralloy Sinton Processing Center A Division of Feralloy Corporation Sinton, TX 361-364-7220 Feralloy Processing Company A Division of Feralloy Corporation Portage, IN 219-787-8773 GH Metal Solutions A Division of Feralloy Corporation ghmetalsolutions.com Fort Payne, AL – Headquarters 256-845-5411 Charleston, SC 843-336-4107 Decatur, AL 256-845-5411 Fort Payne, AL (East) 256-845-5411 Monterrey, Mexico 52 818 000 5300 Ramos Arizpe, Mexico 52 844 450 6400 Toluca, Mexico 52 722 262 5500 Indiana Pickling and Processing Company A Joint Venture of Feralloy Corporation 56% Owned Portage, IN 219-787-8889 Oregon Feralloy Partners A Joint Venture of Feralloy Corporation 40% Owned Portland, OR 503-286-8869 Fox Metals and Alloys, Inc. foxmetals.com Houston, TX 281-890-6666 Fry Steel Company frysteel.com Santa Fe Springs, CA 562-802-2721 Infra-Metals Co. infra-metals.com Langhorne, PA – Headquarters 215-741-1000 Atlanta, GA 404-577-5005 Hallandale, FL 954-454-1564 Marseilles, IL 815-795-5002 New Boston, OH 740-353-1350 Petersburg, VA 804-957-5900 Tampa, FL 813-626-6005 Wallingford, CT 203-294-2980 Acero Prime, S. de R.L. de C.V. A Subsidiary of Feralloy Corporation aceroprime.com San Luis Potosí, Mexico – Headquarters 52 444 870 7700 Athens Steel A Division of Infra-Metals Co. athenssteel.com Athens, GA 706-552-3850 Delta Steel A Division of Infra-Metals Co. deltasteel.com Houston, TX – Headquarters 713-635-1200 Cedar Hill, TX 972-299-6497 Fort Worth, TX 817-293-5015 San Antonio, TX 210-661-4641 IMS Steel A Division of Infra-Metals Co. imsornamental.com Atlanta, GA 404-419-3460 KMS, Inc. kmsfab.com Luzerne, PA – Headquarters 570-338-0200 W. Columbia, SC 803-796-9995 Liebovich Bros., Inc. liebovich.com Rockford, IL 815-987-3200 Custom Fab Company A Division of Liebovich Bros., Inc. customfabco.com Rockford, IL 815-987-3210 Good Metals Company A Division of Liebovich Bros., Inc. goodmetals.com Grand Rapids, MI 616-241-4425 Hagerty Steel & Aluminum Company A Division of Liebovich Bros., Inc. hagertysteel.com Peoria, IL 309-699-7251 Liebovich Steel & Aluminum Company A Division of Liebovich Bros., Inc. liebovichsteel.com Rockford, IL – Headquarters 815-987-3200 Cedar Rapids, IA 319-366-8431 Kaukauna, WI 800-646-2790 17 2022 ANNUAL REPORT Metals USA, Inc. metalsusa.com Lynch Metals A Division of Metals USA, Inc. lynchmetals.com Union, NJ – Headquarters 908-686-8401 Anaheim, CA 714-238-7240 i-Solutions A Subsidiary of Metals USA, Inc. isolutions.metalsusa.com 800-700-3032 Metals USA Carbon Flat Rolled, Inc. A Subsidiary of Metals USA, Inc. Northbrook, IL – Headquarters 847-291-2400 Germantown, WI 262-255-4444 Horicon, WI 920-485-9750 Jeffersonville, IN 812-282-4770 Liberty, MO 816-415-0004 Randleman, NC 336-498-8900 Springfield, OH 937-882-6354 Walker, MI 616-453-9845 Wooster, OH 330-264-8416 Metals USA Plates and Shapes, Inc. A Subsidiary of Metals USA, Inc. Langhorne, PA – Headquarters 267-580-2100 Ambridge, PA 724-266-7708 Bethlehem, PA – Sales office 610-691-4270 Fairless Hills, PA 215-337-7000 Greensboro, NC 336-674-7991 Mobile, AL 251-456-4531 Newark, NJ 973-242-1000 Oakwood, GA 770-536-1214 Philadelphia, PA 215-673-9300 Seekonk, MA 508-399-8500 Waggaman, LA 504-431-7010 York, PA 717-757-3549 Gregor Technologies, LLC A Subsidiary of Metals USA Plates and Shapes, Inc. gregortech.com Torrington, CT 860-482-2569 Metals USA Plates and Shapes Southcentral, Inc. A Subsidiary of Metals USA, Inc. Enid, OK 580-233-0411 Muskogee, OK 918-487-6800 Port City Metal Services A Division of Metals USA Plates and Shapes Southcentral, Inc. portcitymetals.com Tulsa, OK 918-583-2222 The Richardson Trident Company, LLC A Subsidiary of Metals USA Plates and Shapes Southcentral, Inc. trident-metals.com Richardson, TX – Headquarters 972-231-5176 Odessa, TX 432-561-5446 Tulsa, OK 918-252-5781 Altair Electronics, LLC A Subsidiary of The Richardson Trident Company, LLC altair-co.com Richardson, TX 972-231-5176 National Specialty Alloys, Inc. nsalloys.com Houston, TX – Headquarters 281-345-2115 Anaheim, CA 714-870-7800 Buford, GA 770-945-9255 Aleaciones Especiales de México, S. de R.L. de C.V. A Subsidiary of National Specialty Alloys, Inc. aleacionesespecialesdemexico.com Cuautitlán, Mexico 52 55 2225 0835 Northern Illinois Steel Supply Co. nisteel.com Channahon, IL – Headquarters 815-467-9000 Houston, TX 800-892-1601 Nu-Tech Precision Metals Inc. nutechpm.com Ottawa, Ontario, Canada 613-623-6544 Pacific Metal Company pacificmetal.com Portland, OR – Headquarters 503-454-1051 Billings, MT 406-245-2210 Boise, ID 208-323-8045 Eugene, OR 541-485-1876 Spokane, WA 509-535-0326 PDM Steel Service Centers, Inc. pdmsteel.com Elk Grove, CA – Headquarters 916-513-4548 Metalweb Limited metalweb.co.uk Birmingham, United Kingdom – Headquarters 44 121 328 7700 London, United Kingdom 44 199 245 0300 Manchester, United Kingdom 44 161 483 9662 Denver, CO 303-297-1456 Fresno, CA 209-943-0513 Las Vegas, NV 702-413-0067 18 RELIANCE STEEL & ALUMINUM CO. Provo, UT 801-798-8676 Reno, NV 775-358-1441 Santa Clara, CA 408-988-3000 Stockton, CA 209-943-0513 Vancouver, WA 360-225-1133 Feralloy PDM Steel Service A Division of PDM Steel Service Centers, Inc. Stockton, CA 209-234-0548 Phoenix Corporation DBA Phoenix Metals Company phoenixmetals.com Peachtree Corners, GA – Headquarters 770-447-4211 Birmingham, AL 205-841-7477 Charlotte, NC 704-588-7075 Cincinnati, OH 513-727-4763 Cleveland, OH 513-727-4763 Fort Smith, AR 479-452-3802 Hammond, IN 219-747-7117 Kansas City, KS 913-321-5200 Lafayette, LA 337-837-4381 Nashville, TN 931-486-1456 Philadelphia, PA 215-295-9512 Richmond, VA 804-222-5052 St. Louis, MO 636-379-4050 Tampa, FL 813-626-8999 Precision Flamecutting and Steel, Inc. pflame.com Houston, TX 281-477-1600 Precision Strip Inc. precision-strip.com Minster, OH – Headquarters 419-628-2343 Anderson, IN 765-778-4452 Bowling Green, KY 270-282-8420 Canton, MI 734-736-7030 Jeffersonville, IN 812-850-3161 Kenton, OH 419-674-4186 Middletown, OH 513-423-4166 Perrysburg, OH 419-661-1100 Portage, IN 219-850-5080 Rockport, IN 812-362-6480 Talladega, AL 256-315-2345 Tipp City, OH 937-667-6255 Vonore, TN 423-271-3690 Woodburn, KY 270-542-6100 Woodhaven, MI 734-301-4001 Dynamic Metals International A Division of Service Steel Aerospace Corp. dynamicmetals.net Windsor, CT 860-688-8393 United Alloys Aircraft Metals A Division of Service Steel Aerospace Corp. Los Angeles, CA 323-588-2688 Siskin Steel & Supply Company, Inc. siskin.com Chattanooga, TN – Headquarters 423-756-3671 Louisville, KY 502-716-5140 Nashville, TN 615-242-4444 Spartanburg, SC 864-599-9988 East Tennessee Steel Supply Co. A Division of Siskin Steel & Supply Company, Inc. tnsteel.com Morristown, TN 423-587-3500 The Steel Store A Division of Siskin Steel & Supply Company, Inc. thesteelstore.com Chattanooga, TN 423-265-4246 Sugar Steel Corporation sugarsteel.com Chicago, IL – Headquarters 708-757-9500 Evansville, IN 812-428-5490 Perrysburg, OH 419-661-8500 Reliance Metalcenter Asia Pacific Pte. Ltd. Jurong, Singapore 65 6265 1211 Tubular Steel, Inc. tubularsteel.com Service Steel Aerospace Corp. ssa-corp.com Seattle, WA – Headquarters 253-627-2910 Canton, OH 330-833-5800 Wichita, KS 316-838-7737 St. Louis, MO – Headquarters 314-851-9200 Hazelwood, MO 314-524-6600 Katy, TX 281-371-5200 Lorain, OH 440-960-6100 19 2022 ANNUAL REPORT Rialto, CA 909-429-6900 Metalcraft Enterprises A Division of Tubular Steel, Inc. New Haven, MO 573-237-3016 United Pipe & Steel Corp. Formerly operating as Merfish United unitedpipe.com Viking Materials, Inc. vikingmaterials.com Minneapolis, MN – Headquarters 612-617-5800 Franklin Park, IL 847-451-7171 Yarde Metals, Inc. yarde.com Ipswich, MA – Headquarters 800-777-7473 Southington, CT – Headquarters 860-406-6061 East Hanover, NJ 973-463-1166 Greensboro, NC 336-500-0535 Hauppauge, NY 631-232-1600 Limerick, PA 610-495-7545 North Canton, OH 330-342-7020 Pelham, NH 603-635-1266 FastMetals A Division of Yarde Metals, Inc. fastmetals.com Southington, CT 833-327-8685 Rotax Metals Inc. A Subsidiary of Yarde Metals, Inc. rotaxmetals.net Brooklyn, NY 718-272-9800 Birmingham, AL 205-854-2300 Burlington, NC 336-226-2244 Easton, PA 610-559-0990 Elyria, OH 440-323-0060 Franklin, IN 317-346-9825 Houston, TX 713-869-5731 Lakeland, FL 863-614-0674 Loves Park, IL 815-282-2724 Rialto, CA 909-441-1924 Stockton, CA 209-467-7473 Topeka, KS 785-357-0612 Valex Corp. valex.com Ventura, CA 805-658-0944 Valex Semiconductor Materials (Zhejiang) Co., Ltd. A Subsidiary of Valex Corp. Haiyan Economic Development Zone, People’s Republic of China 86 21 5818 3189 Valex Korea Co., Ltd. A 96% Owned Subsidiary of Valex Corp. Seoul, Republic of Korea 82 31 683 0119 20 RELIANCE STEEL & ALUMINUM CO. A TRIBUTE TO JIM HOFFMAN In Pittsburgh, Pennsylvania, it was common for college students to work in steel mills during summer breaks. Jim’s personal experience from this period formed and fueled a lifelong commitment to safety. As his career in the metals industry began and progressed from sales to operations to management at Earle M. Jorgensen Company, he always made it a point to walk the plant floor to observe working conditions. In executive leadership as COO and CEO, Jim continued to take safety personally, promoting Reliance’s company- wide safety program to ensure that we move metal safely. Further, Jim pushed Reliance to operate with improvement and innovation in mind. Under his leadership, Reliance made and broke multiple financial and operational records. We thank Jim for his vision, influence, and achievements, and wish him the best in his retirement. 21 2022 ANNUAL REPORTCORPORATE DIRECTORY OFFICERS Karla R. Lewis President and Chief Executive Officer Stephen P. Koch Executive Vice President, Chief Operating Officer Arthur Ajemyan Senior Vice President, Chief Financial Officer Suzanne M. Bonner Senior Vice President, Chief Information Officer Jeffrey W. Durham Senior Vice President, Operations Michael R. Hynes Senior Vice President, Operations Sean M. Mollins Senior Vice President, Operations William A. Smith II Senior Vice President, General Counsel and Corporate Secretary Vandy C. Lupton Vice President, Health and Human Resources Brenda S. Miyamoto Vice President, Corporate Initiatives John A. Shatkus Vice President, Enterprise Risk Brian M. Yamaguchi Vice President, Supplier Development Silva Yeghyayan Vice President, Tax DIRECTORS Mark V. Kaminski (1), (2) Chairman of the Board Executive Advisor Graniterock Lisa L. Baldwin (1), (2), (4) Managing Director Elliott Management Corporation Karen W. Colonias (1), (2), (3) Former President and Chief Executive Officer Simpson Manufacturing Co., Inc. Frank J. Dellaquila (1), (2) Senior Executive Vice President and Chief Financial Officer Emerson Electric Co. John G. Figueroa (1), (3), (4) Chairman and Chief Executive Officer Carepathrx James D. Hoffman Senior Advisor to the Chief Executive Officer Former Chief Executive Officer Reliance Steel & Aluminum Co. Karla R. Lewis President and Chief Executive Officer Reliance Steel & Aluminum Co. Robert A. McEvoy (1), (3), (4) Former Managing Director The Goldman Sachs Group, Inc. David W. Seeger (1), (3), (4) Former President Zekelman Industries (formerly JMC Steel Group) Douglas W. Stotlar (1), (3), (4) Former President and Chief Executive Officer Con-way, Inc. (1) Independent Director (2) Member of the Audit Committee (3) Member of the Compensation Committee (4) Member of the Nominating and Governance Committee 22 RELIANCE STEEL & ALUMINUM CO. CORPORATE INFORMATION TRANSFER AGENT & REGISTRAR American Stock Transfer & Trust Company, LLC 6201 15th Avenue Brooklyn, NY 11219 800-937-5449 718-921-8124 astfinancial.com INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM KPMG LLP Los Angeles, CA RELIANCE STEEL & ALUMINUM CO. PRINCIPAL EXECUTIVE OFFICE 16100 N. 71st Street, Suite 400 Scottsdale, AZ 85254 480-564-5700 rsac.com FORM 10-K A copy of the Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission, is available at sec.gov or investor.rsac.com or upon request to: William A. Smith II Senior Vice President, General Counsel and Corporate Secretary Reliance Steel & Aluminum Co. 16100 N. 71st Street, Suite 400 Scottsdale, AZ 85254 INVESTOR RELATIONS CONTACT 213-576-2428 investor@rsac.com SECURITIES LISTING Reliance Steel & Aluminum Co.’s common stock is traded on the New York Stock Exchange under the symbol “RS.” MARKET PRICE OF COMMON STOCK The high and low closing prices for the Company’s common stock in 2022 were $213.20 and $149.06. The following table sets forth the high and low closing prices of the Company’s common stock for the stated calendar quarters. 2022 1Q 2Q 3Q 4Q LOW HIGH $195.29 $149.06 $211.43 $163.47 $197.43 $169.02 $213.20 $178.27 STOCKHOLDERS OF RECORD AND DIVIDEND POLICY As of February 24, 2023, there were 171 holders of record of our common stock. We have paid quarterly cash dividends on our common stock for 63 consecutive years. Our Board of Directors has increased the quarterly dividend rate on a periodic basis 30 times since our IPO in 1994. FORWARD-LOOKING STATEMENTS This Annual Report includes statements that, to the extent they are not recitations of historical fact, may constitute forward-looking statements within the meanng of the federal securities laws, and are based on Reliance’s current expectations and assumptions. For a discussion identifying important factors that could cause actual results to vary materially from those anticipated in the forward-looking statements, see Reliance’s 2022 Form 10-K. 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. 16100 N. 71ST STREET, SUITE 400 | SCOTTSDALE, AZ 85254 | 480-564-5700 | RSAC.COM 

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