Q4 2015 LIFE@reliance Newsletter

ISSUE 3 OCTOBER 2015

N E W S L E T T E R Increased Turns Leads to Q2 GP Gains In July, Reliance announced their Q2 2015 financial results. While earnings were down slightly from last year and from Q1 2015, we saw an improvement in gross profit margins. On our quarterly earnings call, President and CEO Gregg Mollins stated, “I am extremely pleased with our operational performance in the second quarter of 2015, which is a testament to the quality of our management team in the field, as well as to our business model. Despite ongoing industry headwinds that further pressured metal pricing in the quarter, we were able to increase our FIFO gross profit margin to 25.7%, up from our strong 2015 first quarter FIFO gross profit margin of 25.4%. We believe that our continued focus on small, quick turnaround orders and inventory turns, allows us to maintain consistent gross profit margins, and that our significant investments in equipment in recent years, to provide higher levels of value-added processing to our customers, has further enhanced our ability to maintain and improve our gross profit margins, even during difficult business environments.” He continued, “In 2015 we have had a significant push on reducing inventory, and I am proud to report that we’ve decreased our FIFO inventory by $163 million during the second quarter. This is a significant accomplishment for our Company, and using our June 30th, 2015 FIFO inventory tons on hand and our first half 2015 shipment levels, our inventory turn rate would be 4.6 times. This is the first time in many years that we have been this close to achieving our internal company-wide goal, which is currently 4.75 turns. I want to personally thank all of our employees that helped us achieve these results.” Reliance’s Q3 2015 earnings conference call is on October 22, 2015. Go to investor.rsac.com to listen to the webcast. It is available for 90 days after the call. In This Issue Media Round Up: Reliance in the Press.....................................................................2 Announcing 4 NewWebsites......................................................................................2 Protecting Company Data and Assets........................................................................3 Annual Enrollment.....................................................................................................3 Anthem Blue Distinction Centers for Specialty Care...................................................4 Wellness....................................................................................................................5 Employee Service Awards..........................................................................................6 Employee Discount Program Spotlight.......................................................................7 Bicycle Around America.............................................................................................8 Safety Tips for Winter.................................................................................................9

The results are in! Reliance is once again atop the Metal Center News Service Center Top 50! This annual survey ranks the largest, most successful metals service centers in North America.

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