Reliance Inc (RS) 2016 Q1 法說會逐字稿

Audio in progress.

音訊正在進行中。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

I would now turn the conference over to Ms. Brenda Miyamoto, Investor Relations for Reliance.

我現在將會議交給 Reliance 投資者關係部門的 Brenda Miyamoto 女士。

Thank you, Ms. Miyamoto.

謝謝宮本女士。

You may now begin.

你現在可以開始了。

Thank you, operator.

謝謝你，接線生。

Good morning and thanks to all of you for joining our conference call to discuss our first-quarter 2016 financial results.

早安，感謝大家參加我們的電話會議，討論我們 2016 年第一季的財務表現。

I am joined by Gregg Mollins, our President and CEO; Karla Lewis, our Senior Executive Vice President and CFO; Jim Hoffman, our Executive Vice President and COO; and Bill Sales, our Executive Vice President of Operations.

我們的總裁兼執行長 Gregg Mollins 也加入了我的行列； Karla Lewis，我們的資深執行副總裁兼財務長； Jim Hoffman，我們的執行副總裁兼營運長；以及我們的營運執行副總裁 Bill Sales。

A recording of this call will be posted on the Investors section of our website at (technical difficulty) the Company to be materially different from the results, performance, or other expectations implied by these forward-looking statements.

本次電話會議的錄音將發佈在我們網站的投資者部分（技術難度）公司，與這些前瞻性陳述所暗示的結果、業績或其他預期有重大差異。

These factors include but are not limited to those factors disclosed in the Company's annual report on Form 10-K for the year ended December 31, 2015 under the caption Risk Factors and other reports filed with the Securities and Exchange Commission.

這些因素包括但不限於本公司截至2015年12月31日的10-K表年度報告中「風險因素」標題下揭露的因素以及向美國證券交易委員會提交的其他報告。

The press release and information on this call speak only as of today's date, and the Company disclaims any duty to update the information provided therein and herein.

本次電話會議的新聞稿和資訊僅代表今天的情況，本公司不承擔更新其中和本文中提供的資訊的義務。

I will now turn the call over to Gregg Mollins, President and CEO of Reliance.

我現在將把電話轉給 Reliance 總裁兼執行長 Gregg Mollins。

Good morning, everyone, and thank you for joining us today.

大家早安，感謝您今天加入我們。

We were pleased to see that our positive momentum demonstrated throughout 2015 continued into the first quarter of 2016.

我們很高興看到 2015 年全年表現出的積極勢頭一直持續到 2016 年第一季。

Once again, strong operational execution by our managers in the field contributed to FIFO gross profit margin expansion.

我們的現場管理人員強大的營運執行力再次為 FIFO 毛利率的擴張做出了貢獻。

During the first quarter, our FIFO gross profit margin reached 29.4%, up 400 basis points from the first quarter of 2015 and marks the fifth consecutive quarter of gross profit margin expansion.

第一季度，我們的先進先出毛利率達到29.4%，比2015年第一季成長400個基點，標誌著毛利率連續第五季擴張。

Overall, we are extremely proud of this achievement, particularly considering the challenging metal pricing environment that has existed over the past year, coupled with uncertain macroeconomic conditions that have constrained US steel producers.

總體而言，我們對這項成就感到非常自豪，特別是考慮到過去一年存在的充滿挑戰的金屬定價環境，以及限制美國鋼鐵生產商的不確定的宏觀經濟狀況。

We continue to support these trade actions, which seem to be having a positive impact on reducing the overall level of imports in the United States marketplace and on metal prices.

我們繼續支持這些貿易行動，這些行動似乎對降低美國市場的整體進口水準和金屬價格產生了積極影響。

We believe this more positive pricing environment contributed to our expanded gross profit margins to (technical difficulty) as compared to the prior quarter and was still 15.6% lower than the first quarter of 2015.

我們認為，這種更積極的定價環境有助於我們的毛利率比上一季擴大（技術難度），但仍比 2015 年第一季低 15.6%。

We expect the price increases will have a more meaningful impact on our average selling price per ton sold in the second quarter as the more recent price increases work their way through the market.

我們預計，隨著最近的價格上漲在市場中發揮作用，價格上漲將對我們第二季每噸銷售的平均售價產生更有意義的影響。

The rising scrap prices we've seen so far this quarter are another positive indicator for pricing.

本季迄今為止我們看到的廢鋼價格上漲是定價的另一個積極指標。

With respect to customer demand, we experienced a sequential increase in tons sold of 8.9% in the first quarter of 2016, which was slightly better than our expectation of approximately 6% to 8% over the fourth quarter of 2015.

就客戶需求而言，2016 年第一季我們的銷售量較上季成長了 8.9%，略好於我們對 2015 年第四季約 6% 至 8% 的預期。

The increase reflected both the normal seasonal increase in shipping volumes compared to the fourth quarter, as well as the additional volume from our acquisition of Tubular Steel on January 1. And once again, we outperformed the MSCI industry average increase in tons sold of 6.2% for the first quarter as compared to the fourth quarter of 2015, which reflects Reliance's expanding market share.

這一增長既反映了與第四季度相比正常的季節性運輸量增長，也反映了我們1 月1 日收購Tubular Steel 帶來的額外運輸量。我們的銷售噸數再次超過了MSCI 行業平均增幅6.2%第一季與 2015 年第四季相比，這反映了 Reliance 不斷擴大的市場份額。

On a year-over-year basis, our same-store tons sold were down 3.7% compared to the MSCI industry average decline of 9.1%.

與去年同期相比，我們的同店銷量下降了 3.7%，而 MSCI 產業平均下降幅度為 9.1%。

Turning to M&A, as previously announced, effective January 1, 2016, we acquired Tubular Steel, a distributor and processor of carbon alloy and stainless steel pipe, tubing, and bar products based in St.

至於併購，正如先前宣布的那樣，我們收購了 Tubular Steel，該公司是一家位於聖路易斯的碳合金和不銹鋼管道、管材和棒材產品的分銷商和加工商，自 2016 年 1 月 1 日起生效。

Louis, Missouri.

密蘇裡州路易斯。

In addition, on April 1, 2016, we acquired Best Manufacturing, Inc., a custom sheet metal fabricator of steel and aluminum products on both a direct and toll processing basis located in Jonesboro, Arkansas.

此外，2016 年 4 月 1 日，我們收購了 Best Manufacturing, Inc.，這是一家位於阿肯色州瓊斯伯勒的鋼鐵和鋁產品定制鈑金製造商，以直接和委託加工方式生產。

Best has been serving its core customer markets since 1990, including trucking, agriculture, and energy, and complements Reliance's existing service center network extremely well given its specialty high-margin products and value-added processing capabilities.

自1990 年以來，Best 一直為其核心客戶市場提供服務，包括卡車運輸、農業和能源，並且憑藉其專業的高利潤產品和增值加工能力，對Reliance 現有的服務中心網絡進行了極好的補充。

Specifically, Best's fabrication business is highly profitable and an area we are looking forward to expanding.

具體來說，貝斯特的製造業務利潤豐厚，也是我們期待擴展的領域。

Both of these acquisitions are consistent with our strategy to acquire well-managed metal service centers and processors that provide high levels of value-added processing and specialty products that diversify our existing footprint.

這兩項收購都符合我們收購管理良好的金屬服務中心和加工商的策略，這些中心和加工商提供高水準的增值加工和特種產品，使我們現有的業務多元化。

We are very pleased to have both Tubular Steel and Best Manufacturing join the Reliance family of companies.

我們非常高興 Tubular Steel 和 Best Manufacturing 加入 Reliance 公司大家庭。

Regarding our capital and allocation priorities, we will continue to support growth through both strategic M&A opportunities and organic initiatives.

關於我們的資本和配置優先事項，我們將繼續透過策略併購機會和有機措施來支持成長。

Our balance sheet remains strong and has enabled us to return capital to (technical difficulty) the Reliance business model in both good times and bad, as well as the continued strong operational execution by our managers in the field.

我們的資產負債表依然強勁，使我們能夠在順境和逆境中將資本返還給 Reliance 業務模式（技術難度），並且我們的現場管理人員持續保持強勁的營運執行力。

This combination has enabled us to expand our market share, generate strong financial performance, and execute on our growth strategy and stockholder return.

這種合併使我們能夠擴大市場份額，產生強勁的財務業績，並執行我們的成長策略和股東回報。

(technical difficulty) managing our operating expenses and inventory levels to drive earnings improvement and balancing our capital allocation priorities allowing for growth and continued stockholder returns.

（技術難度）管理我們的營運費用和庫存水準以推動獲利改善並平衡我們的資本配置優先事項，從而實現成長和持續的股東回報。

I will now hand the call over to Jim to comment further on the operations and market conditions.

我現在將把電話轉給吉姆，以進一步評論營運和市場狀況。

Jim?

吉姆？

Thanks, Gregg, and good morning, everyone.

謝謝格雷格，大家早安。

My comments today will focus both on pricing and demand of our carbon steel and alloyed products, as well as our outlook on certain key end markets we sell those products into, including automotive, heavy industry, nonresidential construction, and energy.

我今天的評論將重點放在我們碳鋼和合金產品的定價和需求，以及我們對我們銷售這些產品的某些關鍵終端市場的前景，包括汽車、重工業、非住宅建築和能源。

Bill will then address our aluminum and stainless steel products and related end markets.

然後，比爾將討論我們的鋁和不銹鋼產品以及相關的終端市場。

Before turning to our markets and pricing, I would like to say how proud I am of our employees in the field that helped us increase our FIFO gross profit margins in the first quarter of 2016 by 270 basis points over the fourth quarter of 2015.

在談到我們的市場和定價之前，我想說的是，我對我們該領域的員工感到多麼自豪，他們幫助我們將2016 年第一季的FIFO 毛利率比2015 年第四季度提高了270 個基點。

Unbelievable!

難以置信！

I am equally proud of our inventory turns of 4.9 times based on tons, which exceeds our Companywide goal of 4.7 times.

我同樣感到自豪的是，我們的庫存週轉率達到了 4.9 倍（以噸計），這超出了我們 4.7 倍的全公司目標。

Demand for automotive, which we service mainly through our toll processing operations in the US and Mexico, remains strong in the first quarter.

我們主要透過美國和墨西哥的來料加工業務提供服務的汽車需求在第一季仍然強勁。

The construction of our new facility in Mexico, which will aid in increasing our existing toll processing capability, is nearing completion and is expected to become operational in mid-2016.

我們在墨西哥的新工廠建設已接近完成，預計將於 2016 年中期投入運營，這將有助於提高我們現有的來料加工能力。

Given increased activity processing aluminum for the automotive industry, we're also constructing a new facility in Kentucky and expanding two of our existing facilities.

鑑於汽車業鋁加工活動的增加，我們也在肯塔基州建造了一座新工廠，並擴大了兩個現有工廠。

We continued to perform very well (technical difficulty) of the metal.

我們繼續表現非常出色（技術難度）的金屬。

And although our toll processing represents a small portion of our total sales dollars, it represents a larger percentage of our overall profitability.

儘管我們的來料加工僅占我們總銷售額的一小部分，但它占我們整體獲利能力的較大比例。

First-quarter demand in heavy industry, which includes rail car, truck trailer, shipbuilding, barge manufacturing, (technical difficulty) in the road construction equipment market in 2016.

2016年道路建設設備市場第一季重工業需求，包括軌道車、卡車拖車、造船、駁船製造（技術難度）。

Demand in nonresidential construction is continuing its slow but steady improvement, despite volume being well below peak levels.

儘管成交量遠低於峰值水平，但非住宅建築的需求仍在緩慢但穩定地改善。

We are optimistic that demand will continue to improve in 2016 and beyond although at a gradual pace.

我們樂觀地認為 2016 年及以後的需求將繼續改善，儘管速度是漸進的。

Given our outlook for this market, we've been strategically investing in processing equipment over time to position ourselves to absorb volume increases and our existing cost structure, as well as to perform additional value-added processing for our customers as this market improves.

鑑於我們對該市場的前景，我們一直在對加工設備進行策略性投資，以適應產量的成長和現有的成本結構，並隨著市場的改善為我們的客戶提供額外的增值加工。

In regard to (technical difficulty) to be proactive in managing our expenses to help mitigate the negative impact to our overall profitability.

關於（技術難度）積極管理我們的費用，以幫助減輕對我們整體獲利能力的負面影響。

Turning to pricing, as Gregg discussed, we are finally starting to experience a pricing improvement for carbon steel products during the first quarter, mainly as a result of increases in raw material costs, including scrap and multiple carbon steel trade cases filed in the US.

談到定價，正如格雷格所討論的那樣，我們終於開始在第一季度看到碳鋼產品的定價改善，這主要是由於原材料成本的增加，包括廢鋼和在美國提起的多個碳鋼貿易案件。

We expect to see a greater benefit from the increased carbon steel prices in the second quarter, which should allow us to increase our average selling price over the first-quarter levels.

我們預計第二季碳鋼價格上漲將帶來更大的好處，這將使我們的平均售價高於第一季的水平。

(technical difficulty) impacted by pricing on these products versus carbon flat-rolled products, which represents only 15% of our total sales with hot-rolled at 6%.

（技術難度）受到這些產品與碳素扁軋產品定價的影響，碳素扁軋產品僅占我們總銷售額的 15%，熱軋產品佔 6%。

Flat-rolled pricing also began to recover during the first quarter with multiple price increases announced by the mills in 2016 after having been under pressure for the entire 2015 year.

扁材價格在 2015 年全年承受壓力後，在 2016 年第一季也開始復甦，鋼廠宣布多次漲價。

It's important to note that although we are experiencing pricing recovery and extended leadtimes, our suppliers have not yet announced capacity increases.

值得注意的是，儘管我們正在經歷價格恢復和交貨時間延長，但我們的供應商尚未宣布產能增加。

We applaud our domestic suppliers on their production discipline.

我們對國內供應商的生產紀律表示讚賞。

Base prices for alloy products, the majority of which are sold into our energy end markets, has held up well considering the significant reduction in demand.

考慮到需求大幅減少，合金產品的基本價格保持良好，其中大部分銷往我們的能源終端市場。

Going forward, we expect prices for these products to remain fairly steady with current levels due in large part to alloyed products going into the automotive market.

展望未來，我們預計這些產品的價格將在當前水準上保持相當穩定，這在很大程度上是由於合金產品進入汽車市場。

I will now hand the call over to Bill to comment further on our nonferrous markets.

我現在將把電話轉給比爾，以進一步評論我們的有色金屬市場。

Bill?

帳單？

Thanks, Jim.

謝謝，吉姆。

Good morning, everyone.

大家，早安。

Before talking about the markets, I would like to note that demand for our aluminum and stainless steel products continued to be good through the first quarter of 2016.

在談論市場之前，我想指出，2016 年第一季對我們的鋁和不銹鋼產品的需求持續良好。

Our managers have done an excellent job managing gross profit margins through the quarter, and we are very pleased with their results.

我們的經理在整個季度的毛利率管理方面做得非常出色，我們對他們的結果非常滿意。

To all from that group listening to the call, keep up the good work.

對於所有聽到這項呼籲的小組成員，請繼續努力。

Now on the specific markets, aerospace continues to be one of our strongest end markets.

現在在特定市場上，航空航太仍然是我們最強大的終端市場之一。

Sales to the aerospace market represented approximately 11% of our total sales in the first quarter of 2016.

2016 年第一季度，航空航太市場的銷售額約占我們總銷售額的 11%。

Our same-store tons sold to the aerospace market were up 5.3% compared to the first quarter of 2015.

與 2015 年第一季相比，我們向航空航太市場銷售的同店噸數增加了 5.3%。

Demand in this market continues to be steady.

該市場的需求持續穩定。

Build rates for some of the larger commercial planes have been reduced but still remain at healthy levels.

一些大型商用飛機的建造率下降，但仍保持在健康水準。

These build rate reductions tend to impact demand at the mill level more than service centers.

這些建造率的降低對工廠層級的需求影響往往比服務中心更大。

The backlog for orders of commercial planes remains robust, and mill leadtimes are extended.

商用飛機訂單積壓依然強勁，工廠交貨期也延長。

As a result, our outlook remains positive, and we will continue to look for investment opportunities to expand our aerospace exposure consistent with our customers' growth patterns.

因此，我們的前景仍然樂觀，我們將繼續尋找投資機會，根據客戶的成長模式擴大我們的航空航太業務。

The majority of the products that we sell to the aerospace market are heat-treated aluminum products, especially plate, as well as specialty stainless steel and titanium products.

我們銷往航空航太市場的大部分產品是熱處理鋁產品，特別是板材，以及特殊不銹鋼和鈦產品。

Given continued steady demand, we expect pricing for aluminum aerospace plate to be relatively stable with modest pressure on margins for the balance of the year.

鑑於需求持續穩定，我們預期鋁航空航太板的定價將相對穩定，今年剩餘時間的利潤率壓力不大。

Since we spoke last with you in February, our sales of common alloy aluminum have increased somewhat from a volume standpoint with most of our product being sold to sheet metal fabricators that support a variety of end markets.

自從我們在二月上次與您交談以來，從銷量的角度來看，我們的普通合金鋁的銷量有所增加，我們的大部分產品都出售給支持各種終端市場的鈑金製造商。

Demand for general engineering aluminum plate is strong, driven by general industrial and semiconductor end uses.

在一般工業和半導體終端用途的推動下，對通用工程鋁板的需求強勁。

We still anticipate a challenging price environment due to aggressive import pricing.

由於激進的進口定價，我們仍然預期價格環境充滿挑戰。

Pricing on common alloy aluminum sheet follows [ingot], and we expect some modest improvement as the Midwest spot price trends up slightly.

普通合金鋁板的定價遵循[錠]，隨著中西部現貨價格小幅上漲，我們預計會出現一些溫和的改善。

The Midwest spot price has been trading in the $0.79 per pound range with the Midwest premium in the $0.08 per pound range.

中西部現貨價格一直在每磅 0.79 美元範圍內交易，中西部溢價在每磅 0.08 美元範圍內交易。

Turning to stainless steel products, demand for our stainless steel flat products, which are primarily sold into the kitchen equipment, appliance, and construction end market continues to be strong.

談到不銹鋼產品，我們的不銹鋼板材產品主要銷往廚房設備、器具和建築終端市場，其需求持續強勁。

Both price increases in the first quarter of 2016 are in place, and domestic mill leadtimes have extended to nine to 14 weeks.

2016年第一季的兩次漲價均已到位，國內鋼廠交貨期已延長至9至14週。

The third increase announced last week for May shipments has domestic mill support.

上週宣布的 5 月出貨量第三次上調得到了國內鋼廠的支持。

Pricing for stainless steel products is heavily impacted by nickel prices, which continued to decline in the first quarter of 2016.

不銹鋼產品的定價受到鎳價的嚴重影響，鎳價在2016年第一季持續下跌。

We expect to see some modest improvement in nickel pricing in the second quarter of 2016.

我們預計 2016 年第二季鎳價將略有改善。

I will now turn the call over to Karla to review our first-quarter financial results.

我現在將把電話轉給卡拉，以審查我們第一季的財務表現。

Thanks, Bill, and good morning, everyone.

謝謝比爾，大家早安。

Our sales in the first quarter of 2016 were $2.2 billion, down $451.7 million or 17.3% from the first quarter of 2015, mainly due to lower metals pricing.

2016 年第一季我們的銷售額為 22 億美元，比 2015 年第一季下降 4.517 億美元，即 17.3%，主要是由於金屬定價較低。

Compared to the fourth quarter of 2015, our sales were up $136.5 million or 6.7% due to normal seasonal trends of increased shipments, along with the incremental sales from our January 1 acquisition of Tubular Steel.

與 2015 年第四季相比，由於出貨量增加的正常季節性趨勢以及 1 月 1 日收購 Tubular Steel 帶來的銷售額增量，我們的銷售額增長了 1.365 億美元，即 6.7%。

Our average selling price decreased by 2.4% compared to the fourth quarter of 2015 and by 15.6% compared to the first quarter of 2015.

與 2015 年第四季相比，我們的平均售價下降了 2.4%，與 2015 年第一季相比下降了 15.6%。

We had expected our average selling price for tons sold to be flat to up 1.5% from the fourth quarter of 2015 given mill price increases.

鑑於工廠價格上漲，我們預計每噸的平均售價將與 2015 年第四季持平，上漲 1.5%。

However, as Gregg mentioned, the price increases were not immediately absorbed by the market and the majority of the increases occurred late in the quarter.

然而，正如格雷格所提到的，價格上漲並沒有立即被市場吸收，大部分上漲發生在本季末。

Our average inventory costs declined during the first quarter of 2016, resulting in a lower average selling price even as we increased our gross profit margins.

2016 年第一季度，我們的平均庫存成本有所下降，導致儘管我們提高了毛利率，但平均售價仍然較低。

We did not record a LIFO inventory valuation adjustment for the first quarter of 2016.

我們沒有記錄 2016 年第一季的 LIFO 庫存估值調整。

Based on current metals priced trends, we expect overall metal prices to be higher at December 31, 2016 as compared to January 1, which would result in a LIFO charge or expense in 2016.

根據當前金屬價格趨勢，我們預計 2016 年 12 月 31 日的整體金屬價格將高於 1 月 1 日，這將導致 2016 年產生後進先出費用或費用。

However, given our current expectation of higher metal prices, we anticipate that any LIFO expense would be offset by a decrease in our lower cost or market reserve, established as of December 31, 2015.

然而，鑑於我們目前對金屬價格上漲的預期，我們預計任何後進先出費用都將被我們自 2015 年 12 月 31 日起建立的較低成本或市場儲備的減少所抵消。

We will continue to update our expectations quarterly based upon our inventory costs and general metals pricing trends.

我們將繼續根據我們的庫存成本和一般金屬定價趨勢每季更新我們的預期。

Our gross profit margin of 29.4% in the first quarter of 2016 increased from 25.7% in the first quarter of 2015 and from 28.7% in the fourth quarter of 2015 due to the pricing discipline of our employees in the field.

由於我們現場員工的定價紀律，我們2016年第一季的毛利率為29.4%，高於2015年第一季的25.7%和2015年第四季的28.7%。

Our average selling price declined less than our inventory costs declined as we continued to receive in lower cost materials during the beginning of the first quarter.

由於我們在第一季初繼續收到成本較低的材料，因此我們的平均售價下降幅度小於庫存成本下降幅度。

Our continued growth in higher-margin specialty products and value-added processing, along with our focus on superior customer service, also contributed to continued sequential improvements in our gross profit margin.

我們在高利潤特種產品和增值加工方面的持續成長，以及我們對優質客戶服務的關注，也有助於我們毛利率的持續改善。

Our SG&A expenses in the first quarter of 2016 included the expenses of tubular steel.

我們2016年第一季的SG&A費用包括鋼管費用。

On a same-store basis, our SG&A expenses decreased by $4.6 million from the first quarter of 2015.

以同店計算，我們的 SG&A 費用比 2015 年第一季減少了 460 萬美元。

As a percent of sales, our SG&A expenses were 20.8% compared to 17.1% in the first quarter of 2015, yet below 6.5% in the first quarter of 2015, again, mainly due to lower metal prices.

以佔銷售額的百分比計算，我們的 SG&A 費用為 20.8%，而 2015 年第一季為 17.1%，但仍低於 2015 年第一季的 6.5%，這主要是由於金屬價格下跌。

Our effective income tax rate for the first quarter of 2016 was 14.4% compared to 31.7% in the first quarter of 2015 and 27.1% (technical difficulty) income tax rate at approximately 27%, down from 31.1% in 2015.

我們2016年第一季的有效所得稅率為14.4%，而2015年第一季為31.7%；27.1%（技術難度）所得稅率為27%左右，低於2015年的31.1%。

Net income attributable to Reliance for the first quarter of 2016 was $92.2 million or $1.27 per diluted share compared to $101.3 million or $1.30 per diluted share in the first quarter of 2015 and $68.6 million or $0.94 per diluted share in the fourth quarter of 2015.

2016 年第一季Reliance 淨利為9,220 萬美元，即稀釋後每股收益1.27 美元，而2015 年第一季歸屬於Reliance 的淨利潤為1.013 億美元，即稀釋後每股收益1.30 美元，2015 年第四季歸屬於Reliance 的淨利潤為6,860 萬美元，即稀釋後每股收益0.94 美元。

On a GAAP basis, our net income included a $17.6 million or $0.24 per diluted share favorable impact due to the lower tax rate.

根據 GAAP 計算，我們的淨利潤包括 1,760 萬美元或稀釋後每股 0.24 美元的有利影響，這是由於稅率較低。

As such, our non-GAAP net income attributable (technical difficulty) and $63.3 million or $0.87 per diluted share in the fourth quarter of 2015.

因此，2015 年第四季我們的非 GAAP 淨利潤（技術難度）為 6,330 萬美元，即稀釋後每股收益 0.87 美元。

Our earnings release issued earlier today includes a reconciliation of our non-GAAP adjustments.

我們今天稍早發布的收益報告包括我們的非公認會計準則調整的調節表。

Turning to our balance sheet and cash flow, we generated $155.4 million of cash from operations (technical difficulty) sales outstanding rate at March 31, 2016 of 42.3 days, in line with our historical range.

就我們的資產負債表和現金流而言，截至 2016 年 3 月 31 日的 42.3 天，我們從營運（技術難度）銷售未清償率中產生了 1.554 億美元的現金，與我們的歷史範圍一致。

Our inventory turn rate at March 31 was 3.9 times based on dollars and 4.9 times -- 2.4 months on hand based on tons.

截至 3 月 31 日，我們的庫存週轉率（以美元計算）為 3.9 倍，以噸計算為 4.9 倍（庫存週轉率為 2.4 個月）。

Our focus on inventory reductions in 2015 resulted in successfully exceeding our Companywide goal of 4.7 turns based on tons.

2015 年，我們對庫存削減的關注成功超過了全公司 4.7 噸週轉的目標。

At March 31, 2016, our total debt expanding was $2.13 billion, an increase of $205.4 million from December 31 as we funded our purchase of Tubular Steel with borrowings on our revolving credit facility.

截至 2016 年 3 月 31 日，我們的總債務擴張為 21.3 億美元，比 12 月 31 日增加了 2.054 億美元，因為我們利用循環信貸額度借款為收購 Tubular Steel 提供資金。

Our net debt to total capital ratio was 33.4%, and our net debt to EBITDA ratio was 2.6 times.

我們的淨負債與總資本的比率為33.4%，淨負債與EBITDA的比率為2.6倍。

As of March 31, 2016, we had $887.1 million available on our $1.5 billion revolving credit facility.

截至 2016 年 3 月 31 日，我們的 15 億美元循環信貸額度中有 8.871 億美元可用。

We will continue to execute on our capital allocation strategies of both growing the business and returning value to our stockholders while also using available cash to continue reducing our outstanding debt balance.

我們將繼續執行我們的資本配置策略，既發展業務，也為股東回報價值，同時利用可用現金繼續減少我們的未償債務餘額。

In addition to the two acquisitions we've completed so far in 2016, we spent $34.4 million on capital expenditures during the first quarter.

除了 2016 年迄今完成的兩項收購外，我們第一季的資本支出為 3,440 萬美元。

Our 2016 CapEx budget of $180 million is focused primarily on organic growth, specifically through purchasing new equipment to increase our value-added processing capabilities and opening new facilities.

我們 2016 年的資本支出預算為 1.8 億美元，主要用於有機成長，特別是透過購買新設備來提高我們的增值處理能力和開設新設施。

In the first quarter of 2016, we paid quarterly cash dividends totaling $29 million.

2016年第一季度，我們支付季度現金股利總計2,900萬美元。

We did not repurchase any shares of our (technical difficulty) in the quarter, mainly because of our improved stock price.

本季我們沒有回購任何我們（技術困難）的股票，主要是因為我們的股價有所改善。

We will, however, continue to monitor our stock price performance and cash availability and will opportunistically repurchase shares as appropriate.

然而，我們將繼續監控我們的股價表現和現金可用性，並將適時適時回購股票。

Now turning to our outlook, we are optimistic about metal pricing in the second quarter of 2016, given recent mill price increases and are confident in our ability to execute well in this environment.

現在轉向我們的前景，鑑於近期鋼廠價格上漲，我們對 2016 年第二季的金屬定價持樂觀態度，並對我們在這種環境下良好執行的能力充滿信心。

We also expect continued slow growth of the US economy.

我們也預計美國經濟將繼續緩慢成長。

As a result, we estimate tons sold to be flat to up 2% in the second quarter of 2016 compared to the first quarter of 2016, and we expect our average selling price per ton sold in the second quarter of 2016 to be up approximately 3% to 5% from the first quarter.

因此，我們預計 2016 年第二季的銷售噸數與 2016 年第一季相比將持平或上漲 2%，並且我們預計 2016 年第二季每噸銷售的平均售價將上漲約 3%。較第一季下降5%。

As a result, we currently expect non-GAAP earnings per diluted share to be in the range of $1.15 to $1.25 for the second quarter of 2016, up from $1.03 non-GAAP earnings per diluted share in the first quarter of 2016.

因此，我們目前預計 2016 年第二季非 GAAP 每股攤薄收益將在 1.15 美元至 1.25 美元之間，高於 2016 年第一季非 GAAP 每股攤薄收益 1.03 美元。

In closing, we are very pleased with our strong start to the year, which is reflective of our proven abilities to manage the controllable aspect of our business.

最後，我們對今年的強勁開局感到非常滿意，這反映了我們管理業務可控方面的能力已得到證實。

We congratulate our managers in the field for their hard work as their operational execution contributed to our fifth consecutive quarter of increased FIFO gross profit margins.

我們祝賀該領域的經理們的辛勤工作，他們的營運執行為我們連續第五個季度實現先進先出毛利率的成長做出了貢獻。

This improvement, coupled with our effective working capital management, has helped our cash generation remain strong, enabling us to continue to grow and diversify.

這項改進，加上我們有效的營運資本管理，幫助我們保持強勁的現金產生能力，使我們能夠繼續發展和多元化。

That concludes our prepared remarks.

我們準備好的演講到此結束。

Thank you for your attention, and at this time, we would like to open the call up to questions.

感謝您的關注，此時，我們想開啟電話提問。

Operator?

操作員？

(Operator Instructions) Tony Rizzuto, Cowen and Company.

（操作員說明）Tony Rizzuto，Cowen and Company。

I guess my first question is just to pursue a little bit on the operational execution, it was clearly phenomenal, 29.4%, and I'm wondering how much further juice can you squeeze from that going forward?

我想我的第一個問題只是為了追求一點營運執行力，這顯然是驚人的，29.4%，我想知道你還能從中榨取多少額外的能量？

Wow, that's a tough question.

哇，這是一個很難回答的問題。

If you would have told all of the management team here that we were at 29.4% first quarter about 90 days ago, we probably would have thought you were crazy.

如果您告訴這裡的所有管理團隊，大約 90 天前我們第一季的利用率為 29.4%，我們可能會認為您瘋了。

But our guys in the field -- there's been a big push from our VP of Operations, Bill, Jim, Steve, Mike, on gross profit margin over the past 16 to 18 months, and fortunately our guys in the field have listened and executed.

但我們的現場人員 - 我們的營運副總裁 Bill、Jim、Steve、Mike 在過去 16 到 18 個月裡對毛利率做出了巨大的推動，幸運的是，我們的現場人員聽取了意見並執行了。

So as far as going up over 29.4%, I really couldn't say that that's probably a good model to (technical difficulty).

因此，就上漲超過 29.4% 而言，我真的不能說這可能是一個好的模型（技術難度）。

-- maintain at least (technical difficulty)

-- 維持至少（技術難度）

Yes.

是的。

Exactly.

確切地。

So it was a great run.

所以這是一次很棒的跑步。

And hopefully we can maintain that, but I wouldn't completely count on it.

希望我們能夠保持這一點，但我不會完全指望它。

And I hope anybody that is listening to our call from the Reliance team ignores everything I just said.

我希望任何正在收聽 Reliance 團隊電話的人都忽略我剛才所說的一切。

(technical difficulty) performing the industry, the MSCI data.

（技術難點） 執行產業、MSCI數據。

And just looking at the breakout between alloy and carbon, etc.

看看合金和碳等之間的突破。

and aluminum and stainless, is the majority of that year-on-year decline on a same-store basis -- would the majority of that be related to energy?

以及鋁和不銹鋼，同店年減的大部分是──其中大部分與能源有關嗎？

I don't -- certainly a good chunk of that, Tony, would be energy-related, and then you would just see I think in some of the heavier carbon products, you might see a little bit of a downturn there, but it definitely is impacted by the reduction in energy.

我不——當然，托尼，其中很大一部分與能源有關，然後你會看到我認為在一些較重的碳產品中，你可能會看到一些低迷，但它肯定受到能量減少的影響。

So we've seen a -- I don't know, about 60%, 70% increase in oil prices, but rig activity continues to contract.

所以我們看到——我不知道，油價上漲了大約 60%、70%，但鑽井活動繼續收縮。

Are there any reasons or -- any reason to be hopeful a little bit as you see things?

當你看到事情時，有什麼理由或──有什麼理由讓你抱持一點希望嗎？

Our inventory is just so heavy out there that just no room for improvement maybe this year?

我們的庫存實在是太重了，今年可能沒有改進的空間了？

Hey, Tony.

嘿，東尼。

This is Jim.

這是吉姆。

Not really.

並不真地。

We say that we don't use hope as a strategy around here.

我們說我們不會將希望作為這裡的策略。

We kind of just manage what we are dealing with, and there's really nothing that looks great on the horizon.

我們只是管理我們正在處理的事情，實際上沒有什麼看起來很棒的事情。

However, when it does come back, and it will, eventually we will be there to service our customers because there's really nothing right now that I can (technical difficulty)

然而，當它確實回來時，最終我們會在那裡為我們的客戶提供服務，因為現在我真的沒有什麼可以做的（技術困難）

We are not counting on any improvement really, Tony, in 2016 period.

托尼，我們並不指望 2016 年期間會出現任何真正的改進。

Okay and I'm just -- I'm wondering just on the toll processing because I'm -- you guys are doing a lot of great things there, and you talked about construction of a new facility in Mexico, it's nearing completion.

好吧，我只是 - 我只是想知道收費處理的問題，因為我 - 你們在那裡做了很多偉大的事情，你們談到了在墨西哥建設一個新設施，它即將完工。

You are expanding some facilities in (technical difficulty) equivalent in terms of overall profitability, and maybe with these expansions from a volumetric standpoint, if you could frame it in terms of X percent over what you currently have in place, just to help us understand what that may be and how you are looking at the business in terms of its ability to increase your profitability, and what is the high-margin product for you?

您正在以相當於整體盈利能力的（技術難度）擴建一些設施，也許從體積的角度來看這些擴建，如果您能以目前現有設施的 X% 為單位，只是為了幫助我們理解這可能是什麼？您如何看待該業務提高獲利能力的能力，以及什麼是適合您的高利潤產品？

Yes, Tony, we are pretty hesitant to give too much detail on individual parts of our business.

是的，托尼，我們非常猶豫是否要對我們業務的各個部分提供太多細節。

So -- and I know you guys would love to hear more details on that, but certainly the profitability, as we have said, is meaningful to us.

所以——我知道你們很想聽到更多細節，但正如我們所說，獲利能力對我們來說很有意義。

So certainly that the growth there will have a positive impact on our earnings as we move forward.

因此，隨著我們的前進，那裡的成長肯定會對我們的收益產生積極影響。

As far as quantifying that, that is not something that we are really going to do.

就量化而言，這並不是我們真正要做的事情。

The aluminum -- the increase in processing, a lot of that has been in aluminum.

鋁——加工量的增加，其中許多都是鋁。

Mexico is not geared towards that, but we have seen quite an uptick, which kind of moved us -- helped moved us from that 2% of total sales dollars to 3% of total sales dollars last year, and we expect to see continued processing.

墨西哥並沒有為此做好準備，但我們看到了相當大的成長，這有點讓我們感動——幫助我們從去年佔總銷售額的2% 上升到佔總銷售額的3%，我們預計會繼續進行處理。

But we are still processing.

但我們仍在處理中。

The majority of our tons are still carbon times that we are running through there.

我們的大部分噸位仍然是我們在那裡運行的碳時代。

So the increased aluminum is meaningful, but it's incremental increase.

所以鋁的增加是有意義的，但是是增量的增加。

I think it's important to realize, too, is the comment that Karla just made is that we really haven't seen any decline whatsoever on our carbon side of our toll processing operations.

我認為認識到這一點也很重要，卡拉剛剛發表的評論是，我們確實沒有看到我們的來料加工業務的碳方面有任何下降。

So it's not -- we have not seen -- I'm not saying it's not going to happen, but we have not seen a displacement of carbon steel because of the expansion into aluminum.

所以這不是——我們還沒有看到——我並不是說這不會發生，但我們還沒有看到碳鋼因為鋁的擴張而被取代。

And that is -- I think that's important for everybody to realize.

我認為這對每個人來說都很重要。

Okay.

好的。

And I guess as a good segue, talking about aluminum and steel together, I would be remiss if I didn't ask you about -- and get Bill involved here, too, about the Section 201 -- the petition by the United Steel Workers on the aluminum side, and just your general thoughts -- the industry in terms of the steel mill executives have been very confident about the trade legislation going through.

我想，作為一個很好的延續，一起談論鋁和鋼，如果我沒有問你關於第 201 條的請願書，那就是我的失職。在鋁方面，以及您的總體想法- 鋼廠高管對該行業的貿易立法非常有信心。

But then at the same time, we are hearing more vocal commentary about the Section 201, and I just wonder how you see this?

但同時，我們聽到了更多關於201條款的聲音評論，我只是想知道你如何看待這一點？

Obviously your major buyers from all these players, the mills, and I'm just wondering from your vantage point, how you are sizing this up and how you think this can play out, and is 201 necessary to ensure these gains that have been made thus far?

顯然，您的主要買家來自所有這些參與者、工廠，我只是想從您的角度來看，您如何評估這種情況以及您認為這會如何發揮作用，並且 201 有必要確保已經取得的這些成果迄今？

Hey, Tony.

嘿，東尼。

It's Bill.

是比爾。

How are you doing?

你好嗎？

We look at that -- I think we are seeing if you look at the Midwest premium or the Midwest spot price, we've seen some improvement this morning.

我們看看——我想如果你看看中西部溢價或中西部現貨價格，我們今天早上看到了一些改善。

I think it's it [82] plus.

我想就是它[82]加上。

And I think that -- from what we are hearing, a lot of that is driven by the anticipation of the 201 case.

我認為，從我們所聽到的情況來看，這很大程度上是由 201 案件的預期所推動的。

I think if you look at the levels where we've seen the Midwest spot price, it's been at levels that are very difficult for a lot of the producers to be profitable.

我認為，如果你看看中西部現貨價格的水平，你會發現許多生產商很難獲利。

And I think that is what is driving this whole action.

我認為這就是推動整個行動的原因。

But in terms of understanding all of the details around it and the logic behind it, we haven't really gone through (technical difficulty) that the ramp up now, we may see that back off some, too.

但就理解它周圍的所有細節及其背後的邏輯而言，我們還沒有真正經歷過（技術難度）現在的提升，我們也可能會看到它有所回落。

So we just watching it closely.

所以我們只是密切注意。

I guess, Gregg, you mentioned that you were -- so far, you were very pleased with the discipline on the part of the integrated mills, and it seems to me that that is going to be critical going forward in this whole (technical difficulty)

我想，格雷格，你提到過，到目前為止，你對綜合工廠的紀律非常滿意，在我看來，這對於整個事情的發展至關重要（技術難度） ）

I just -- I think the mills are being driven more by profitability than volume.

我只是——我認為工廠更多是受到獲利能力而非產量的驅動。

Their production is going up.

他們的產量正在上升。

I think it's over 70%, maybe 71% of production capacity, which is above like 62% in January.

我認為產能利用率超過 70%，甚至 71%，高於 1 月的 62%。

So -- but they are not ramping up, they are not starting up the facilities that they've shut down in the past.

所以，但他們並沒有加大力度，也沒有啟動過去關閉的設施。

So, at the end of the day, I think that the mills are going to continue their discipline actions and keep their prices up.

因此，歸根結底，我認為鋼鐵廠將繼續採取紀律行動並維持價格上漲。

Thanks very much.

非常感謝。

I appreciate all the comments.

我感謝所有的評論。

Thank you.

謝謝。

Phil Gibbs, KeyBanc Capital Markets.

Phil Gibbs，KeyBanc 資本市場。

I had a question for Bill just on the comments on the aluminum side.

我有一個關於鋁方面評論的問題要問比爾。

Did you say the pricing momentum in the aerospace plate is moderating, or is that still moving higher?

您是說航空航太板塊的定價動能正在放緩，還是仍在走高？

I might have not caught all that.

我可能沒有明白這一切。

Yes, Phil.

是的，菲爾。

It's basically pricing.

基本上就是定價。

We look at it, we think pricing is going to be stable with some modest pressure on margins.

我們認為，定價將保持穩定，利潤率將承受一定壓力。

If you look at the date, mill leadtimes are still extended.

如果你看一下日期，工廠的交貨時間仍然延長。

They are a little bit shorter than they were a quarter ago, and plate, while it is still relatively tight, it's a little less tight than it was a quarter ago.

它們比一個季度前要短一些，並且板狀，雖然仍然相對緊張，但比一個季度前稍微寬鬆一些。

So I think our outlook right now -- it's a still very positive environment, and I think pricing is going to be stable.

所以我認為我們現在的前景仍然是一個非常積極的環境，而且我認為定價將會穩定。

But there will be a little more pressure on the margin side.

但利潤方面的壓力會更大一些。

Okay.

好的。

I appreciate that, and Jim, what is your broader outlook for heavy equipment based on what you're seeing right now?

我對此表示讚賞，吉姆，根據您現在所看到的情況，您對重型設備的更廣泛前景是什麼？

I would say it is flat but at a decent level.

我想說的是，它是平坦的，但處於一個不錯的水平。

Demand is really not a problem for us right now.

現在需求對我們來說確實不是問題。

It's always been the price, and the price is moving up.

一直都是漲價，而且價格還在漲。

So we are good with the demand we are seeing, and I just -- it will be the same way throughout 2016.

因此，我們對所看到的需求感到滿意，而且我只是——整個 2016 年都會如此。

Great.

偉大的。

And just one quick one on the import offers in general, Gregg.

格雷格，我只是簡單介紹一下一般的進口報價。

What are you seeing there in terms of the import offers across your varying degrees of products?

您對不同等級產品的進口報價有何看法？

Just your big buckets, carbon, aluminum, and stainless, and how competitive or lack thereof the foreign mills are being at this time.

只是你的大桶、碳、鋁和不銹鋼，以及外國鋼廠目前的競爭力或缺乏程度。

Thanks.

謝謝。

I will let Bill address the stainless and aluminum outlook, but on the carbon side, Jim and I actually were having a conversation with a few of our guys in the field earlier this morning and offerings that we are getting on basically all the carbon side whether it be structural or flat-rolled, etc.

我會讓比爾談談不銹鋼和鋁的前景，但在碳方面，吉姆和我實際上今天早上早些時候與我們在該領域的一些人進行了交談，並提供了我們基本上在所有碳方面的產品，無論是它可以是結構型或平軋型等。

are (technical difficulty) are very few and far between as compared to even six months ago.

與六個月前相比，（技術難度）已經非常少了。

Yes, Phil.

是的，菲爾。

On the aluminum side, on general engineering plate, we are seeing still aggressive import pricing.

在鋁方面，在一般工程板材方面，我們看到進口定價仍然很激進。

And so that is one area where there still is a fairly significant gap between the domestic price and the import, but there is still a fairly strong requirement for domestic plates.

所以說，這是國內價格與進口還有較大差距的一個領域，但對國產板材的需求還是比較旺盛的。

So I think the domestic mills are (technical difficulty) of the common alloy market.

所以我認為國內鋼廠是普通合金市場的（技術難度）。

Stainless, we are probably seeing a little increase in the spread between domestic and import with these price increases on the stainless side, but that spread is still in a reasonable area, and we feel very positive about the May increase.

不銹鋼，隨著不銹鋼價格的上漲，我們可能會看到國內和進口之間的價差略有增加，但該價差仍處於合理範圍內，我們對 5 月份的上漲感到非常積極。

It seems to have domestic mill support, and I think it will have support in the marketplace.

它似乎得到了國內工廠的支持，我認為它也會得到市場的支持。

Thanks for all the insight, guys.

謝謝你們的所有見解，夥伴們。

Appreciate it.

欣賞它。

Aldo Mazzaferro, Macquarie.

阿爾多·馬扎費羅，麥格理。

Say, a couple of my questions get answered already, but on the import question you just answered on the carbon steel imports that you are seeing few and far between, can you say whether there is any new sources of imports that you might be seeing or we haven't seen in the last few years?

比方說，我的幾個問題已經得到解答，但是關於進口問題，您剛剛回答了關於您看到的碳鋼進口的情況很少而且相隔甚遠，您能否說一下您是否可能會看到任何新的進口來源或我們最近幾年沒見過？

By country I mean you know?

我說的國家是指你知道嗎？

The --

這 -

I would say not recent, but in the last year and a half, we've seen Japan more involved in the carbon steel plate arena than we have probably in the last 15 years before that.

我想說不是最近，而是在過去的一年半里，我們看到日本更多地參與碳鋼板領域，比之前的過去 15 年可能還要多。

Russian -- what are we seeing on the Russian side, Bill?

俄羅斯——我們在俄羅斯方面看到了什麼，比爾？

Russian seems to be coming -- recently -- I can tell you one thing, there's a lot less Chinese offers right now.

俄羅斯似乎即將到來——最近——我可以告訴你一件事，現在中國的報價要少得多。

Is that Russian on -- that Russian is carbon plate also?

那個俄羅斯人也是碳板嗎？

Yes.

是的。

And on the flat-rolled side, you're not seeing anything to replace the Chinese or the --

在平軋方面，你看不到任何東西可以取代中國或——

Other countries, career, Vietnam, Italy, it's the same as it has been, but the significant impact right now is there is less Chinese offers.

其他國家，職業，越南，義大利，和以前一樣，但現在最大的影響是中國的offer減少了。

Gregg mentioned Japan.

格雷格提到了日本。

They have been out of the game for it seems like years.

他們似乎已經退出遊戲很多年了。

But then last year they started coming back in and the officer there and they are still there.

但去年他們開始回來，那裡的官員和他們仍然在那裡。

But they are -- it's the usual suspects.

但他們是——這是常見的嫌疑犯。

Great.

偉大的。

Okay.

好的。

And just one follow-up, Gregg.

還有一個後續行動，格雷格。

I am trying to figure out how your gross profit margins would not expand in the second quarter.

我想弄清楚你們的毛利率在第二季不會擴大。

If I'm reading it right, you've got -- you are going to get a little price -- a little higher price, but you had a 2% or so lower price in the first quarter versus the fourth, and I'm just wondering, do you think the mills are going to actually squeeze you on the upside, that they will get their costs up to you, or your mill costs will be greater than 3% to 5% higher?

如果我沒理解錯的話，你會得到一個稍微高一點的價格，但是第一季度的價格比第四季度低了 2% 左右，而且我’我只是想知道，您認為工廠實際上會擠壓您的利益，他們會將成本由您承擔，還是您的工廠成本會高出3% 至5% 以上？

I don't really think it has anything to do with the mills.

我真的不認為這與工廠有任何關係。

It is just the customer base.

這只是客戶群。

When you have a 270 basis point increase in one particular quarter, I think that's -- I've never seen that happen in our Company, and I've been with Reliance over 30 years.

當某個季度的成長率達到 270 個基點時，我認為——我在我們公司從未見過這種情況，而且我在 Reliance 工作了 30 多年。

So to feel as though you can get an additional increase over that 270 basis points I think is a little bit optimistic.

因此，感覺好像可以在 270 個基點之上獲得額外的加息，我認為有點樂觀。

And, as you know, we are always conservative and kind of the base cost, so to speak, of the metal has been fairly low.

而且，如您所知，我們總是保守的，可以說，金屬的基本成本相當低。

Our average sales price in Q1 trended down a bit because our average inventory costs trended down even more.

我們第一季的平均銷售價格略有下降，因為我們的平均庫存成本下降更多。

So we think our gross profit margin, our percent might see a little pressure.

所以我們認為我們的毛利率，我們的百分比可能會受到一點壓力。

We would generate more gross profit dollars if we had higher selling prices, which would fall to the bottom line.

如果我們有更高的銷售價格，我們將產生更多的毛利，這將下降到底線。

So even if there is a little squeeze on the margin, if we have higher selling prices, that is positive.

因此，即使利潤率略有擠壓，如果我們的售價更高，那也是積極的。

And we've also talked about the increase in value-added processing that we are doing at Reliance now because of a lot of the investments and things that we've made, and our charge, so to speak, for the value add doesn't fluctuate with metal prices.

我們也談到了我們現在在 Reliance 所做的增值處理的增加，因為我們進行了大量投資和所做的事情，可以說，我們對增值的收費並沒有增加。 t 隨金屬價格波動。

So if metal prices go up, that processing portion of the charge of the price becomes a little less.

因此，如果金屬價格上漲，價格中的加工部分費用就會減少一些。

So that's why we're just a little hesitant on the guidance on the gross profit margin that you could see a little impact from the higher metal costs.

因此，這就是為什麼我們對毛利率指引有點猶豫，因為金屬成本上升可能會產生一些影響。

Great.

偉大的。

Great job in this quarter, anyway, I have to say.

無論如何，我不得不說，本季的工作非常出色。

Appreciate it.

欣賞它。

Jorge Beristain, Deutsche Bank.

豪爾赫·貝里斯坦，德意志銀行。

I was just wondering if you could point to what specific metal lead you to have your below guidance quarter over quarter reduction in price?

我只是想知道您是否能指出哪種特定金屬導致您的價格逐季低於指導值？

Was it aluminum?

是鋁嗎？

Was it carbon steel?

是碳鋼嗎？

What was it that really led to that kind of quote-unquote (technical difficulty)

到底是什麼真正導致了這種引用-不引用（技術難度）

-- the momentum at the end of the fourth quarter, beginning of the first quarter, I think based on that, we felt we were going to get a higher sale price.

——第四季末、第一季初的勢頭，我認為基於此，我們認為我們將獲得更高的銷售價格。

At the same time, there were more price increases, especially for carbon, during the first quarter than we had anticipated.

與此同時，第一季的價格上漲（尤其是碳價格上漲）超出了我們的預期。

It just didn't run (technical difficulty)

它只是沒有運作（技術難度）

-- or sales dollars, beg your pardon.

——或者銷售額，請原諒。

Much more on the tons side.

更多的方面。

But -- so that's really what moves the needle for the most part would be carbon.

但是——所以真正推動這一進程的主要因素是碳。

So I would have to agree with Karla there that, as goes carbon, as goes our volume and our margin.

因此，我必須同意卡拉的觀點，隨著碳的減少，我們的銷售和利潤也隨之增加。

Okay.

好的。

Thank you.

謝謝。

And just to drill down what do you think is happening psychologically in the market with your customers who seem to be kind of, as all of us I'm sure, caught like deer in the headlights with just rapid increase in at least HRC prices, but is that motivating any change in customer behavior where you are now getting people to start scrambling a little bit to put in orders that maybe they were thinking of deferring?

為了深入了解您認為市場上正在發生什麼，您的客戶似乎像我們所有人一樣，我確信，隨著至少熱軋捲價格的快速上漲，他們像頭燈下的鹿一樣陷入困境，但這是否會促使客戶行為發生任何變化，讓人們開始爭先恐後地下訂單，而他們可能正在考慮延遲？

Can you just talk to a little bit of the psychology, or are people sitting here and watching this price hike and just taking it in stride and seeing how it's going to play out ultimately?

您能簡單談談心理學嗎？或者人們坐在這裡看著價格上漲，泰然處之，看看最終會如何發展？

You have to realize that you know our average order size is from about $1600, so we are dealing with a lot of small to midsize job shops here.

您必須意識到，您知道我們的平均訂單規模約為 1600 美元，因此我們在這裡與許多中小型加工車間打交道。

That is probably the vast majority of our businesses is not with large OEMs.

這可能是我們的絕大多數業務都不是與大型原始設備製造商合作。

And so, therefore, they are really not buying in advance.

因此，他們實際上並沒有提前購買。

We have not seen or heard from our guys in the field that anybody is building inventory in anticipation of higher prices.

我們沒有從該領域的工作人員那裡看到或聽到任何人因預期價格上漲而建立庫存。

So I would have to say basically it is business as usual with our customer base, and we don't see anybody really trying to build inventories ahead of price increases.

因此，我不得不說，我們的客戶群基本上一切如常，我們沒有看到任何人真正試圖在價格上漲之前建立庫存。

Jorge, we spent a lot of money over the last five years on value-added capacities, and I think psychologically and realistically, when you go through times like this, our customer base, they don't expand their value-added or internal equipment as much as they have.

Jorge，過去五年我們在增值能力上花了很多錢，我認為從心理上和現實上來說，當你經歷這樣的時期時，我們的客戶群，他們不會擴大他們的增值或內部設備他們有多少。

So they look to us to do more processing, and that's a good thing.

所以他們希望我們進行更多的處理，這是一件好事。

We anticipated that, and we will continue to spend money along those lines so we can offer more things to our customers.

我們預料到了這一點，我們將繼續在這些方面花錢，以便我們可以為客戶提供更多的東西。

We think that was the biggest driver of our margin improvement.

我們認為這是我們利潤率改善的最大動力。

It was in growth-orientated initiatives.

這是以成長為導向的舉措。

We are pushing processing throughout the globe actually, but in particular in North America, and it is yielding us higher margins.

實際上，我們正​​在全球範圍內推動加工，特別是在北美，這為我們帶來了更高的利潤。

Great.

偉大的。

Thank you.

謝謝。

Timna Tanners, Bank of America Merrill Lynch.

坦納斯 (Timna Tanners)，美銀美林。

I wanted to ask (technical difficulty) acquisitions and expanding into value-added and processing.

我想問（技術難度）收購和拓展到增值和加工。

So I'm just wondering if you could characterize the M&A environment now and if you anticipate running against them in bigger endeavors?

所以我只是想知道您是否可以描述現在的併購環境以及您是否預計會在更大的努力中與他們競爭？

We really haven't run into any competition from the mill level on any of our M&A activities.

在我們的任何併購活動中，我們確實沒有遇到任何來自工廠層級的競爭。

I would imagine there -- everybody is trying to get into value-added, I would guess, but them coming into our space, we have not seen that and, frankly, don't anticipate that to happen.

我想，每個人都在試圖進入增值領域，我猜，但他們進入我們的領域，我們還沒有看到這一點，坦白說，預計不會發生這種情況。

Okay.

好的。

Cool.

涼爽的。

Thanks.

謝謝。

And then, Karla, can you elaborate -- I didn't follow -- I'm not sure I followed what you mentioned about buyback plans and you had expanded your buyback program but then commented on not having bottom in the last quarter.

然後，卡拉，你能詳細說明一下嗎——我沒有聽懂——我不確定我是否聽懂了你提到的關於回購計劃的內容，你已經擴大了你的回購計劃，但隨後評論說上季沒有觸底。

Can you just elaborate on that again, please?

能再詳細說明一下嗎？

Yes, in the first quarter of 2016, we were not in the market, and we didn't repurchase any of our shares.

是的，2016年第一季度，我們沒有入市，也沒有回購任何股票。

Mainly because of where the share price was, we saw the improvement in the first quarter, although certainly there's still room to go.

主要是因為股價的情況，我們在第一季看到了改善，儘管肯定還有空間。

But we opportunistically repurchase based upon the -- our stock price and our cash availability and just chose not to repurchase during the first quarter.

但我們根據我們的股價和現金可用性進行機會性回購，只是選擇在第一季不回購。

Okay.

好的。

Got it.

知道了。

Thanks very much.

非常感謝。

Thank you.

謝謝。

At this time, I would like to turn the conference back over to Mr. Mollins for any closing remarks.

現在，我想將會議轉回給莫林斯先生做總結發言。

Okay.

好的。

Well, listen, thank you very much for your support and for participating in today's call.

好的，聽著，非常感謝您的支持和參加今天的電話會議。

We want to thank you very much for that, and just wishing all of you a great day.

我們對此表示非常感謝，並祝福大家有美好的一天。

Thanks for being with us this morning.

感謝您今天早上和我們在一起。

Thank you.

謝謝。

Ladies and gentlemen, this does conclude today's teleconference.

女士們、先生們，今天的電話會議到此結束。

You may disconnect your lines at this time, and thank you for your participation.

此時您可以斷開線路，感謝您的參與。