Reliance Steel & Aluminum Co. (NYSE:RS) Q3 2023 Earnings Conference Call October 26, 2023 11:00 AM ET

Company Participants

Kim Orlando - ADDO Investor Relations

Karla Lewis - President, Chief Executive Officer & Director

Steve Koch - Executive Vice President & Chief Operating Officer

Arthur Ajemyan - Chief Financial Officer & Senior Vice President

Conference Call Participants

Martin Englert - Seaport Research Partners

Phil Gibbs - KeyBanc Capital Markets

Katja Jancic - BMO Capital Markets

Operator

Greetings, and welcome to the Reliance Steel & Aluminum Co. Third Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce you to your host Kim Orlando with Addo Investor Relations. Thank you, Kim. You may begin.

Kim Orlando

Thank you, operator. Good morning, and thanks to all of you for joining our conference call to discuss Reliance's Third Quarter 2023 financial results. I am joined by Karla Lewis, President and Chief Executive Officer; Steve Koch, Executive Vice President and Chief Operating Officer; and Arthur Ajemyan, Senior Vice President and Chief Financial Officer. A recording of this call will be posted on the Investors section of our website at investor.rsac.com.

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

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

Karla Lewis

Good morning, everyone and thank you for joining us today to discuss our third quarter 2023 results. Reliance's business model is designed to provide resilient performance throughout economic cycles, including both pricing and end market demand fluctuations present in the metals industry. The unique facets of our business model highlighted by strong pricing and inventory management discipline, a highly diversified product mix that is sold into various end markets and geographies, small order sizes, quick delivery, value-added processing and increasing collaboration across our family of companies collectively support our ability to deliver consistent profitable results and generate cash flow.

I'd like to commend the entire Reliance team for successfully executing our strategy during challenging times and delivering another quarter of solid financial performance. Our overall financial performance in the third quarter was in line with our expectations. While our tons sold were down slightly more than anticipated, we outperformed broader service center industry trends and delivered year-over-year growth. As expected, our average selling price declined throughout the quarter across virtually all of our major commodity products, but our pricing discipline and industry-leading value-added processing capabilities provided us with gross margin stability and lessen the impact of falling prices on our gross profit margin. As a result, we delivered non-GAAP earnings per share of $5 in line with our guidance.