Reliance Q3 2024 Earnings Report

Reliance EPS Results

• Actual EPS: $3.64
• Consensus EPS: $3.66
• Beat/Miss: Missed by -$0.02
• One Year Ago EPS: $5.00

Reliance Revenue Results

• Actual Revenue: $3.42 billion
• Expected Revenue: $3.38 billion
• Beat/Miss: Beat by +$41.01 million
• YoY Revenue Growth: -5.60%

Reliance Announcement Details

• Quarter: Q3 2024
• Date: 10/24/2024
• Time: Before Market Opens
• Conference Call Date: Thursday, October 24, 2024
• Conference Call Time: 11:00AM ET

Reliance (NYSE:RS) (NYSE: RS) is a diversified metals service center company that purchases, processes and distributes metals and related industrial products. Its product portfolio includes carbon steel, aluminum, stainless steel, copper, brass, titanium and other specialty metals.

The company provides value-added processing services such as cutting, leveling, sawing, machining, forming and preparing materials to customer specifications. These services help manufacturers and other commercial users reduce material-handling requirements and obtain metals in ready-to-use forms.

Founded in 1939 and headquartered in Los Angeles, California, Reliance serves customers through a network of operations primarily across North America, with additional international capabilities. Its customer base spans the construction, industrial machinery, energy, aerospace, automotive, transportation, semiconductor and other manufacturing sectors. Karla R. Lewis serves as the company’s president and chief executive officer.

Reliance Q3 2024 Earnings Call Transcript

Key Takeaways

• Reliance delivered Q3 non-GAAP EPS of $3.64 in line with guidance, with gross profit margin of 29.4% and generated $463.9 million in operating cash flow.
• Tons sold rose 7.1% year-over-year (3.7% same-store) outperforming industry declines, while average selling price per ton fell 4.3% quarter-over-quarter; Q4 tons are expected down 6–8% sequentially but up 4–6% year-over-year with ASP down 1.5–3.5%.
• The company’s diversified service-center model and value-added processing across non-residential construction, general manufacturing, aerospace, automotive tolling and semiconductor end markets helped mitigate pricing headwinds.
• Reliance invested $112.8 million in Q3 growth capital, completed a $23 million acquisition, repurchased $432 million of stock, paid $60.6 million in dividends and refreshed its $1.5 billion share repurchase plan.
• Corporate governance updates include adding Jim Kamsikas to the board and a planned Non-Executive Chair succession effective January 1, 2025, reflecting ongoing board refreshment and succession planning.

Presentation

[Operator]

Ladies and gentlemen, good morning, and welcome to the Reliance Inc third quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kim Orlando, ADDO Investor Relations. Please go ahead.

[Kim Orlando, Head of Investor Relations at ADDO]

Thank you, operator. Good morning, and thanks to all of you for joining our conference call to discuss Reliance's third quarter 2024 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 investors.reliance.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, President and CEO at Reliance Inc]

Good morning, everyone, and thank you all for joining us today to discuss our third quarter 2024 results. Our businesses continued to execute well through challenging market conditions in the third quarter, once again outperforming industry shipments while maintaining gross profit margin within our sustainable range, which we refer to as smart, profitable growth. Although metals pricing declined more than anticipated, the inherent resilience of our business model, servicing diverse end markets with expansive value-added processing capabilities and quick-turn orders, as well as increased volume from our targeted growth efforts, helped mitigate the impact of lower pricing on our gross profit margin and on our earnings level, resulting in non-GAAP earnings per diluted share of $3.64, in line with our guidance.

[Karla Lewis, President and CEO at Reliance Inc]

In the third quarter, we generated $463.9 million in cash flow from operations, underpinned by strong profitability and effective working capital management through cyclical markets. Our consistently strong cash flow continues to fuel execution in all elements of our capital allocation strategy. We invested $112.8 million in capital expenditures, the majority of which was directed toward growth activities. Our CapEx budget for the calendar year 2024 remains $440 million, with an expected total cash outlay of approximately $425 million-$450 million. Since our 1994 IPO, we have completed 76 acquisitions that support our growth strategy, expanding our product diversification and value-added processing capabilities.

[Karla Lewis, President and CEO at Reliance Inc]

We've completed four acquisitions to date in 2024, including our August acquisition of certain toll processing assets of the FerrouSouth Division of Ferragon Corporation, and the M&A pipeline remains active. We will continue to seek acquisition candidates that align with our standards for well-managed service centers and metals processors that possess strong brand equity and solid reputations in the marketplace and are immediately accretive to our earnings. During the quarter, we repurchased $432 million in our common stock, reducing our total shares outstanding by nearly 3% as we opportunistically repurchased shares amid the broader pullback in equity prices across the metals space. In addition, we paid $60.6 million in dividends, highlighting our ongoing commitment to our valued stockholders. Next, I'd like to acknowledge some previously announced updates regarding our board of directors.

[Karla Lewis, President and CEO at Reliance Inc]

We appointed Jim Hoffman as an Independent Director, effective October first, increasing our board to nine members. We look forward to Jim's contributions from his experience and expertise in industrial manufacturing and safety. Consistent with corporate governance best practices and our strategic and deliberate long-term succession plan, Mark Kaminski will step down as our Non-Executive Chair on January 1, 2025. Mark will continue to serve as an independent board member, and we thank him for his many contributions as chair since 2016. Doug Stotler, a director since 2016, will succeed Mark as our Independent, Non-Executive Chair, effective January 1 2025. Before my closing remarks, I'd like to acknowledge all who have been impacted by the severe weather events these past few weeks.

[Karla Lewis, President and CEO at Reliance Inc]

While Hurricane Helene and Hurricane Milton had minimal impacts on our consolidated results, many of our employees were personally impacted, and we're very grateful to report that all Reliance personnel and their families are safe. In closing, I'd like to recognize our dedicated team at Reliance for their strong execution through challenging and increasingly competitive market dynamics and their continued commitment to working safely. Just last month, we celebrated 85 years in business and our 30th anniversary as a publicly traded company, which would not have been possible without the daily focus and contributions from each member of our Reliance family.

[Karla Lewis, President and CEO at Reliance Inc]

While heightened near-term uncertainty in the fourth quarter is contributing to headwinds in demand and pricing, our resilient business model and positive long-range view support our confidence in our ability to continue executing our strategic growth and stockholder return priorities. Thank you all for your time today. I'll now turn the call over to Steve, who will review our third quarter demand and pricing trends.

[Steve Koch, EVP and COO at Reliance Inc]

Thanks, Karla, and good morning, everyone. I'd like to begin by expressing my gratitude to our dedicated team for their commitment to operating safely and executing our strategy. I'll now turn to our third quarter demand and pricing trends. Our tons sold increased 7.1%, or 3.7% on a same-store basis, compared to the third quarter of 2023, significantly outperforming the service center industry decrease of 1.2%, as reported by the MSCI. While tons decreased 2.1% compared to the second quarter of 2024, we beat our expectations of down 2.5%-4.5% due to increased shipments of carbon steel plate and structural products to the non-residential construction market as the quarter progressed.

[Steve Koch, EVP and COO at Reliance Inc]

We believe our growth and continued outperformance of our MSCI peers, while maintaining industry-leading profitability, are supported by our diversified business model, customer service, and strategic investments in organic growth and acquisitions. Our third quarter average selling price per ton sold of $2,246 declined 4.3% compared to the second quarter of 2024, exceeding our expectations of down 2%-4%, as carbon steel product prices declined more than anticipated as the quarter progressed. Aluminum prices also declined as the global market corrected from the short-lived impact of Russian sanctions, and the U.S. market dealt with an abundance of low-priced imports. Stainless steel prices showed signs of stabilization. Next, I will turn to an overview of notable third quarter trends within our key end markets and products. Beginning with non-residential construction.

[Steve Koch, EVP and COO at Reliance Inc]

Carbon steel tubing, plate, and structural products, which are predominantly sold into the non-residential construction market, represented about 1/3 of our sales in the third quarter. All three products had significant year-over-year growth, outperforming industry shipment levels. Our diversified exposure to the non-residential construction market, including publicly funded infrastructure projects, data centers, and related energy projects, supported solid demand for these products, as did contributions from our recent acquisitions, despite macroeconomic uncertainty delaying projects in certain areas of the market. Our general manufacturing business, which represents roughly one-third of our total sales, is highly diversified across both products and industries, including industrial machinery, consumer products, heavy equipment, and military. Shipments increased year-over-year across the broader manufacturing sector, primarily reflecting strength in industrial machinery, military, shipbuilding, and rail, offsetting weaker demand in agricultural, heavy equipment, and household consumer products.

[Steve Koch, EVP and COO at Reliance Inc]

Our industry outperformance across key product groups shipping to general manufacturing applications highlights the benefits of our diversified business model in a dynamic and uncertain demand environment. Aerospace products comprise approximately 10% of our total sales. Commercial aerospace demand remains fundamentally healthy, despite short-term production and supply chain challenges associated with the ongoing Boeing labor stoppage. Our defense-related aerospace and space program demand remains stable at strong levels. We primarily service the automotive market through our toll processing operations, which are not included in our tons sold. Our tolling business, which represents 4% of our total sales, saw improved demand in the third quarter of 2024 compared to the prior year, due to healthy demand in both the U.S. and Mexican automotive markets and our ongoing investments to increase capacity.

[Steve Koch, EVP and COO at Reliance Inc]

Semiconductor industry demand remains subdued, with continued excess inventories in the supply chain, but shows signs of stabilization in certain areas. Our long-term outlook for the semiconductor market remains positive. Overall, we are experiencing relatively steady demand with continued strength in certain key end markets, counterbalancing pressures in other end markets. Please refer to our earnings release for additional commentary on our end markets and product diversification. We are very proud of our team's outstanding efforts, which enabled our continued industry-leading performance.

[Steve Koch, EVP and COO at Reliance Inc]

Reliance's unrivaled scale and strong balance sheet makes us a highly attractive partner to our mill suppliers in all market conditions. Reliance continues to win new business from new and existing customers who recognize the quality and reliability of our service, as well as the breadth and depth of our product offerings and value-added service capabilities. I will now turn the call over to Arthur to review our financial results and outlook.

[Arthur Ajemyan, SVP and CFO at Reliance Inc]

Thanks, Steve, and thank you, everyone, for joining today's call. Our third quarter 2024 non-GAAP diluted earnings per share of $3.64 came in toward the low end of our guided range. Despite the difficult pricing environment, which was the primary driver of a 21.7% decrease in our non-GAAP diluted earnings per share compared to the second quarter of 2024, our tons sold surpassed our expectations, leading us to outperform industry shipment levels once again across nearly all products. The differentiating value of our significant scale and diversified product offerings to diverse end markets is made evident in the current choppy economic environment, as they allow us to participate in the pockets of the economy where activity is strong.

[Arthur Ajemyan, SVP and CFO at Reliance Inc]

These factors, along with our broad and expanding processing capabilities and industry-leading quality of service, contributed to our 3.7% year-over-year growth in tons sold on a same-store basis in the third quarter. Our gross profit margin declined from 29.8% in the second quarter to 29.4% in the third quarter from continued pricing headwinds. Again, our value-added processing capabilities moderated the decline in gross profit margin, as orders with value-added processing continue to experience significantly less gross profit margin contraction in times of declining prices versus orders without processing. Our LIFO inventory valuation method provides further stability to our gross profit margin by adjusting our cost of sales to align with current replacement costs.

[Arthur Ajemyan, SVP and CFO at Reliance Inc]

Consistent with our guidance, we recorded LIFO income of $50 million in the third quarter, and we continue to anticipate LIFO income of $200 million for the full year 2024, which implies $50 million of LIFO income for the fourth quarter of 2024. As a reminder, LIFO for the fourth quarter will include a true-up to our interim annual LIFO estimate based on year-end inventory levels. Factors such as inventory cost per ton trends, along with changes in product mix and quantities, will impact our annual LIFO calculation. As of September 30, 2024, the LIFO reserve on our balance sheet was $429.3 million, which remains available to generate LIFO income and benefit future period operating results by mitigating the impact of potential further declines in metal prices. Moving along to expenses.

[Arthur Ajemyan, SVP and CFO at Reliance Inc]

Same-store non-GAAP SG&A expenses increased approximately $17 million or 3% year-over-year, as a result of slightly higher same-store headcount of 2% to support higher shipment levels and general wage inflation, offset by lower incentive compensation. Sequentially, same-store non-GAAP SG&A expenses declined approximately $4 million or less than 1%. Our model inherently normalizes expenses by right sizing incentives as profits trend down. I'll now address our balance sheet and cash flow. Reliance generated operating cash flow of $463.9 million in the third quarter, largely flat compared to $466 million generated in the third quarter of 2023. The decline in our profitability was offset by higher working capital release, resulting in relatively consistent quarterly cash flow from operations.

[Arthur Ajemyan, SVP and CFO at Reliance Inc]

Our healthy inventory turn rate, based on tons, of 4.6 times and accounts receivable DSO of 41 days, also contributed to strong cash flow generation in the third quarter. Furthermore, our focus on inventory management helped lessen the impact of declining prices on our gross profit margin. During the quarter, we invested $112.8 million in capital expenditures, completed a $23 million acquisition, returned $60.6 million to our stockholders through cash dividends, and repurchased $432 million worth of our shares at an average cost of approximately $281 per share.

[Arthur Ajemyan, SVP and CFO at Reliance Inc]

In the first nine months of 2024, we have repurchased $951.3 million worth of our shares at an average cost of approximately $285 per share, resulting in nearly a 6% reduction in total shares outstanding. As announced in our release, our board of directors approved a $1.5 billion refresh of our share repurchase plan, which we will use for ongoing opportunistic repurchases. Our leverage position remains favorable, with a net debt to EBITDA ratio of less than one, providing ample liquidity to continue executing our capital allocation priorities. As previously announced, in mid-September, we entered into an amended and restated $1.5 billion five-year unsecured revolving credit facility with more favorable pricing and fewer restrictive covenants, reflecting our improved financial condition and upgraded credit ratings.

[Arthur Ajemyan, SVP and CFO at Reliance Inc]

Turning now to our fourth quarter outlook. As discussed in our release this morning, due to normal seasonal trends and temporary headwinds from heightened macroeconomic and political uncertainty, we estimate our tons sold will be down 6%-8% in the fourth quarter compared to the third quarter, but up 4%-6% compared to the fourth quarter of 2023, with 0.5%-2.5% attributable to same-store growth. On the pricing side, we expect our average selling price per ton sold for the fourth quarter to be down 1.5%-3.5% compared to the third quarter, reflecting continued pricing pressure across carbon steel products. Roughly a third of the expected quarterly pricing decline is due to the entry point in the fourth quarter being below the third quarter average.

[Arthur Ajemyan, SVP and CFO at Reliance Inc]

We anticipate our FIFO gross profit margins will stabilize in the fourth quarter from better alignment of replacement costs with inventory costs on hand, as well as relatively lower anticipated selling price declines. Based on these expectations, we anticipate non-GAAP earnings per diluted share in the range of $2.65-$2.85 for the fourth quarter of 2024. This concludes our prepared remarks. Thank you again for your time and participation, and we'll now open the call to questions. Operator?

[Operator]

Thank you. Ladies and gentlemen, we will now be conducting a question-and-answer session. If you would like to ask a question, please press star and one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Katja Jancic from BMO Capital Markets. Please go ahead.

[Katja Jancic, Metals and Mining Analyst at BMO Capital Markets]

Hi, thank you for taking my questions. Maybe starting on the commentary about Q4 being impacted by temporary factors. Can you talk a bit about what gives you confidence that some of the impact in Q4 is temporary, and what will drive better demand into next year?

[Karla Lewis, President and CEO at Reliance Inc]

Hi, Katja. Thanks for joining the call today. You know, we just as we reach out to our different teams running our businesses, who are close to our customers, as we talked with them over the past week or two, there just seems to be more uncertainty at the customer level than we, you know, have seen in prior periods. The presidential election being cited as quite a bit of that. I would say overall, we're confident long term, because either administration seems to be supporting manufacturing and trade policy, and even if, you know, investments head in different directions, whether it's on energy or different areas, most of those, you know, products, those solutions require steel of one kind or another.

[Karla Lewis, President and CEO at Reliance Inc]

And with our diversified breadth of products, you know, we expect to have a position wherever the policy may go. It just seems, though, there's more trepidation of our customers trying to understand where is it headed, what impact and when. Well, the lower interest rates will help spur economic activity. The question is, at what point does that really kick in? We believe in 2025, maybe not January first, but with the trajectory, as we move through 2025, we expect some pickup in activity related to that.

[Karla Lewis, President and CEO at Reliance Inc]

So again, you know, we also have heard of a few customers taking extended shutdowns, maybe over the holidays in Q4. So you know, we're being probably a little cautious with our Q4 guide, just because there are a lot of factors that we can't control. But we do think having the presidential election behind us, the lower interest rates, the continued strong tailwinds that are there with a lot of unspent dollars still under, you know, the different government stimulus products set us and the industry up well for 2025.

[Katja Jancic, Metals and Mining Analyst at BMO Capital Markets]

And then maybe just quickly on the auto side, and I know you're exposed to it through the tolling business, but are you hearing any slowdown in that market or that business?

[Karla Lewis, President and CEO at Reliance Inc]

Yeah, for the most part, from the platforms we're on with our automotive toll processing customer, we have not seen a pullback. We think it'll be normal seasonality for those businesses in Q4, and generally, you know, stable demand. You know, our platforms were on a lot of the SUVs and light trucks, even some of the, you know, Super Duty trucks, where there's a lot of demand and some ramp-up coming. So we read the headlines. We hear people are concerned. Also, again, the lower interest rates could help with consumer activity in the automotive market. So we have not experienced a slowdown yet and currently expect stable activity.

[Katja Jancic, Metals and Mining Analyst at BMO Capital Markets]

Thank you very much.

[Karla Lewis, President and CEO at Reliance Inc]

Thanks, Katja.

[Operator]

Thank you. Ladies and gentlemen, a reminder, if you wish to ask a question, please press star and one. The next question comes from the line of Phil Gibbs from KeyBanc Capital Markets. Please go ahead.

[Phil Gibbs, Managing Director and Metals Equity Research Analyst at KeyBanc Capital Markets]

Hey, good morning.

[Karla Lewis, President and CEO at Reliance Inc]

Morning, Phil.

[Arthur Ajemyan, SVP and CFO at Reliance Inc]

Good morning, Phil.

[Phil Gibbs, Managing Director and Metals Equity Research Analyst at KeyBanc Capital Markets]

So the pricing and mix in the third quarter was a little bit below what you all were anticipating with the guidance and completely understandable with the market dynamics. But, I guess try to help me a little bit why the LIFO reserve wasn't changed to reflect that.

[Arthur Ajemyan, SVP and CFO at Reliance Inc]

Yeah, good, good question, Phil. So, we spoke to this briefly at the last call, but, I'll provide some additional color, you know, as we're seeing some things play out as the year is progressing. So, we're having some interesting, you know, mix impact this year that we really haven't seen in the past. There's some, you know, specialty, you know, aerospace products that have really long lead times. And, you know, while the rest of our inventory is cycling through and getting the lower replacement cost, you know, some of these products have 50-70 week-long lead times.

[Arthur Ajemyan, SVP and CFO at Reliance Inc]

So, we're basically gonna see the benefit of lower costs of those products in 2025. So what's effectively happening is this, is that it's shifting some of that LIFO income from 2024 into 2025. And that's the primary reason why you haven't really seen us up our LIFO estimate for the year as the years progress, because some of that impact is gonna be felt or realized in 2025.

[Karla Lewis, President and CEO at Reliance Inc]

Yeah, and, Phil, I would just add, you know, this is kind of a unique phenomenon. You know, I've been here over thirty years, and this is the first time we've really had something like this happen. Because, you know, the pricing of those products had basically doubled, and they're high-priced products, and we've never seen lead times like that for. Especially for that large of a chunk of our inventory. The dollars are higher, you know, on a, you know, relatively lower volume just because of the type of product. So this is something we've been kind of learning as we've gone through the year, this year, and seeing, you know, the impact on LIFO of those unique characteristics on those products.

[Phil Gibbs, Managing Director and Metals Equity Research Analyst at KeyBanc Capital Markets]

You're not alone. I've never seen it either. We're aligned. Question on the gross margins that you made about the fourth quarter. You said you expected things to better align and stabilize in the fourth quarter. Does that mean that you expect the fourth quarter to be the trough, or are you saying you already saw the trough in the third quarter?

[Arthur Ajemyan, SVP and CFO at Reliance Inc]

Good question, Phil. So it depends what pricing does in the first quarter, right? So if you are forecasting the pricing in the first quarter will, you know, go up, then, you know, that would imply that Q4 would be a trough. But just to be clear, we're not putting a guidance out for Q1 or our views for pricing for Q1. But if, again, depending on, you know, what pricing does in 2025, then, yeah. I mean, if there's some tailwinds in the beginning of the year, then presumably that would be true, that the Q4 could be the trough.

[Phil Gibbs, Managing Director and Metals Equity Research Analyst at KeyBanc Capital Markets]

I appreciate that. I'm just saying, relative to the third quarter, are you saying it's gonna be lower than the third quarter, but stabilizing? Or is it gonna be consistent with the third quarter?

[Karla Lewis, President and CEO at Reliance Inc]

Based on our guidance, we're saying consistent with the third quarter.

[Phil Gibbs, Managing Director and Metals Equity Research Analyst at KeyBanc Capital Markets]

Okay. That's helpful, and then last question from me on the semi side. You largely do semis infrastructure from what I remember, not semis consumer consumables, but been a little bit squishy, but saying maybe seeing some signs that that might be, you know, stabilizing. What does that mean from your end? Is it just that the supply chain feels a little bit over-inventoried now that some of these projects have been a little bit deferred and, you know, that might be breaking after the election cycle? Just trying to get some kind of context behind that. Appreciate it. Thanks.

[Karla Lewis, President and CEO at Reliance Inc]

Yeah, Phil, on the semiconductor, we do sell some into the consumables to the equipment manufacturers, and then the infrastructure, as you mentioned. And at one of our companies selling more into the consumables, we did see a little more activity in Q3 than we had seen for the last, I guess, several quarters, as we see customers working through the inventory glut that they had. Still some room to go on the equipment manufacturers. Some activity there, but not really picking up yet. And then on the infrastructure side, the new chip builds. You know, there are a lot of factors, I think, impacting timing. We're still very bullish long term. I don't know how much of that is the election.

[Karla Lewis, President and CEO at Reliance Inc]

We hear about, you know, permitting slowdowns, getting construction workers, just different reasons why it's start and stop on some of the projects, and most of the projects, you see the big headline numbers, but a lot of them were planned in different phases, where it wasn't all going to come immediately, which is, quite honestly, a better environment where it's spread out a little bit.

[Phil Gibbs, Managing Director and Metals Equity Research Analyst at KeyBanc Capital Markets]

Thank you.

[Karla Lewis, President and CEO at Reliance Inc]

Yep. Thanks, Phil.

[Arthur Ajemyan, SVP and CFO at Reliance Inc]

Thank you.

[Operator]

Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. As there are no further questions, I now hand the conference over to Karla Lewis, President and CEO, for her closing comments.

[Karla Lewis, President and CEO at Reliance Inc]

Thank you, and thanks again to everyone who joined our call today. I would like to remind everyone that next month we'll be in Chicago presenting at Baird's Global Industrials conference, and we hope to meet with many of you there. I also want to just reiterate our confidence in the ability of the Reliance team to operate well through all market conditions, even with some potential temporary headwinds in Q4, and we're confident with our team moving into 2025, and we'd like to thank our customers, our suppliers, and our stockholders for all of your support. Thank you.

[Operator]

Thank you. The conference of Reliance Inc has now concluded. Thank you for your participation. You may now disconnect your lines.

Participants

Executives

• Steve Koch, EVP and COO
• Karla Lewis, President and CEO
• Arthur Ajemyan, SVP and CFO

Analysts

• Katja Jancic, Metals and Mining Analyst at BMO Capital Markets
• Phil Gibbs, Managing Director and Metals Equity Research Analyst at KeyBanc Capital Markets
• Kim Orlando, Head of Investor Relations at ADDO