Reliance Steel & Aluminum Co. (RS, Financial) filed Quarterly Report for the period ended 2012-06-30.
Reliance Steel & Aluminum has a market cap of $3.87 billion; its shares were traded at around $52.82 with a P/E ratio of 10.3 and P/S ratio of 0.5. The dividend yield of Reliance Steel & Aluminum stocks is 1.2%. Reliance Steel & Aluminum had an annual average earning growth of 18.9% over the past 10 years.
Effective August 1, 2011, we acquired all the outstanding capital securities of Continental Alloys & Services, Inc. (Continental), headquartered in Houston, Texas, and certain affiliated companies for a combined transaction value of approximately $440.8 million, which included the assumption and repayment of $104.7 million of debt. We funded this acquisition with borrowings on our revolving credit facility. Continental is a leading global materials management company focused on high-end steel and alloy pipe, tube and bar products and precision manufacturing of various tools designed for well completion programs of global energy service companies and has 12 locations in seven countries including Canada, Malaysia, Mexico, Singapore, the U.A.E., the United Kingdom, and the United States. This acquisition aligns well with our diversification strategy by increasing our exposure to the fast growing energy market, including the addition of Oil Country Tubular Goods (OCTG) products, new processing capabilities, and entry into new international markets. Continental and its affiliates had combined net sales of approximately $225.8 million for the six months ended June 30, 2012.
Our major commodity same-store selling prices changed during the three-month period ended June 30, 2012 from the same period in 2011 as follows: carbon steel down 4.7%; aluminum down 2.4%; stainless steel down 12.9%; and alloy up 2.7%. For the 2012 six-month period, our same-store average selling prices changed from the same period in 2011 as follows: carbon steel down 0.3%; aluminum down 0.3%; stainless steel down 9.2%; and alloy up 5.2%. As carbon steel sales represent slightly more than 50% of our sales, changes in carbon steel prices have a significant impact on changes in our overall average price per ton sold.
Our LIFO reserve adjustment, which is included in our cost of sales and, in effect, reflects cost of sales at current replacement costs, resulted in a credit, or income, of $7.5 million in the three-month period ended June 30, 2012 compared to a charge, or expense, of $25.0 million in the same period in 2011. Our LIFO reserve at June 30, 2012 remained unchanged from December 31, 2011, resulting in no charge or credit in the 2012 six-month period. Our LIFO reserve adjustment resulted in a charge, or expense, of $45.0 million in the 2011 six-month period.
Net cash provided by operating activities was $21.2 million in the six-month period ended June 30, 2012 as compared to net cash used in operating activities of $85.5 million in the same period in 2011. As a result of increased demand levels from December 31, 2011, our working capital, primarily accounts receivable and inventories, has increased from year-end levels. However, we were able to fund these increases partially with our profitable business activities and borrowings on our $1.5 billion revolving credit facility. Our receivables and FIFO inventories increased by $98.6 million and $183.4 million, respectively, from December 31, 2011 levels, and our accounts payable and accrued expenses decreased approximately $14.8 million.
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Reliance Steel & Aluminum has a market cap of $3.87 billion; its shares were traded at around $52.82 with a P/E ratio of 10.3 and P/S ratio of 0.5. The dividend yield of Reliance Steel & Aluminum stocks is 1.2%. Reliance Steel & Aluminum had an annual average earning growth of 18.9% over the past 10 years.
Highlight of Business Operations:
Effective August 1, 2011, we acquired all the outstanding capital securities of Continental Alloys & Services, Inc. (Continental), headquartered in Houston, Texas, and certain affiliated companies for a combined transaction value of approximately $440.8 million, which included the assumption and repayment of $104.7 million of debt. We funded this acquisition with borrowings on our revolving credit facility. Continental is a leading global materials management company focused on high-end steel and alloy pipe, tube and bar products and precision manufacturing of various tools designed for well completion programs of global energy service companies and has 12 locations in seven countries including Canada, Malaysia, Mexico, Singapore, the U.A.E., the United Kingdom, and the United States. This acquisition aligns well with our diversification strategy by increasing our exposure to the fast growing energy market, including the addition of Oil Country Tubular Goods (OCTG) products, new processing capabilities, and entry into new international markets. Continental and its affiliates had combined net sales of approximately $225.8 million for the six months ended June 30, 2012.Effective August 1, 2011, we acquired all the outstanding capital securities of Continental Alloys & Services, Inc. (Continental), headquartered in Houston, Texas, and certain affiliated companies for a combined transaction value of approximately $440.8 million, which included the assumption and repayment of $104.7 million of debt. We funded this acquisition with borrowings on our revolving credit facility. Continental is a leading global materials management company focused on high-end steel and alloy pipe, tube and bar products and precision manufacturing of various tools designed for well completion programs of global energy service companies and has 12 locations in seven countries including Canada, Malaysia, Mexico, Singapore, the U.A.E., the United Kingdom, and the United States. This acquisition aligns well with our diversification strategy by increasing our exposure to the fast growing energy market, including the addition of Oil Country Tubular Goods (OCTG) products, new processing capabilities, and entry into new international markets. Continental and its affiliates had combined net sales of approximately $225.8 million for the six months ended June 30, 2012.
Our major commodity same-store selling prices changed during the three-month period ended June 30, 2012 from the same period in 2011 as follows: carbon steel down 4.7%; aluminum down 2.4%; stainless steel down 12.9%; and alloy up 2.7%. For the 2012 six-month period, our same-store average selling prices changed from the same period in 2011 as follows: carbon steel down 0.3%; aluminum down 0.3%; stainless steel down 9.2%; and alloy up 5.2%. As carbon steel sales represent slightly more than 50% of our sales, changes in carbon steel prices have a significant impact on changes in our overall average price per ton sold.
Our LIFO reserve adjustment, which is included in our cost of sales and, in effect, reflects cost of sales at current replacement costs, resulted in a credit, or income, of $7.5 million in the three-month period ended June 30, 2012 compared to a charge, or expense, of $25.0 million in the same period in 2011. Our LIFO reserve at June 30, 2012 remained unchanged from December 31, 2011, resulting in no charge or credit in the 2012 six-month period. Our LIFO reserve adjustment resulted in a charge, or expense, of $45.0 million in the 2011 six-month period.
Net cash provided by operating activities was $21.2 million in the six-month period ended June 30, 2012 as compared to net cash used in operating activities of $85.5 million in the same period in 2011. As a result of increased demand levels from December 31, 2011, our working capital, primarily accounts receivable and inventories, has increased from year-end levels. However, we were able to fund these increases partially with our profitable business activities and borrowings on our $1.5 billion revolving credit facility. Our receivables and FIFO inventories increased by $98.6 million and $183.4 million, respectively, from December 31, 2011 levels, and our accounts payable and accrued expenses decreased approximately $14.8 million.
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