The following is a summary of the Russel Metals, Inc. (RUSMF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Russel Metals reported Q1 2024 revenues of $1.1 billion, up 4% from the previous quarter.

• The EBITDA stood at $84 million with a margin of 8%.

• Earnings per share were $0.82, a slight increase from the previous quarter.

• The company reported an annualized return on investment capital of 19%.

• The net cash position was $277 million, reflecting a huge turn-around from being $500 million in net debt at the end of 2019.

• The capital expenditure was $24 million, projecting more than $100 million throughout the year.

Business Progress:

• The company is continually improving its facilities with equipment upgrades and modernizations scheduled in the subsequent quarters.

• Further enhancements are planned for the debt structure to allow for more flexibility and a lower-cost capital structure.

• The exploration of potential acquisition opportunities, including the planned acquisition of Samuel's, is underway.

• The company revealed a 5% increase in the quarterly dividend to $0.42 per share.

• Multiple value-add projects have improved the gross margin per ton significantly, expanding the overall margin.

• New business opportunities have been taken up through the Comco division, primarily in Western Canada, with further expansion planned for energy field stores throughout the year.

• The company is transitioning from a high-yield capital structure to a more traditional investment-grade capital structure to enhance the balance sheet, which involves clearing legacy high-yield notes and establishing a more flexible, covenant-light approach.

More details: RUSSEL METALS INC IR

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