Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information (Unaudited)

Quarterly Financial Information (Unaudited)

Note 18. Quarterly Financial Information (Unaudited)

The following is a summary of the unaudited quarterly results of operations for 2017 and 2016:


	March 31,		June 30,		September 30,		December 31,
	(in millions, except per share amounts)
2017:
Net sales	$	2,419.3	$	2,475.2	$	2,450.1	$	2,376.4
Cost of sales		1,697.7		1,773.1		1,764.6		1,697.8
Gross profit (1)		721.6		702.1		685.5		678.6
Net income		113.4		104.8		99.0		303.8
Net income attributable to Reliance		111.7		103.0		97.3		301.4
Earnings per share attributable to Reliance stockholders:
Diluted		1.52		1.40		1.32		4.09
Basic		1.53		1.41		1.33		4.14

2016:
Net sales	$	2,162.7	$	2,203.9	$	2,185.2	$	2,061.6
Cost of sales		1,526.0		1,518.8		1,530.6		1,447.7
Gross profit (1)		636.7		685.1		654.6		613.9
Net income		93.5		102.1		50.6		62.9
Net income attributable to Reliance		92.2		100.9		49.5		61.7
Earnings per share attributable to Reliance stockholders:
Diluted		1.27		1.38		0.68		0.84
Basic		1.28		1.39		0.68		0.85

⁽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. The majority 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 our 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 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.

Quarterly and year‑to‑date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not agree with per share amounts for the years shown elsewhere in this Annual Report on Form 10‑K.