Reliance (RS) risk factors, FY2024 10-K

Risks Related to Our Business and Industry

1. 01The costs that we pay for metals fluctuate due to a number of factors beyond our control, and such fluctuations could adversely affect our operating results, particularly decreases in metals prices
2. 02Global economic conditions, including inflation, elevated interest rates, infectious disease and supply chain disruptions, have adversely affected, and could continue to adversely affect, our operations
3. 03Excess capacity and over-production by foreign metal producers or decreases in tariffs could increase the level of metal imports into the U.S., resulting in lower domestic prices, which would adversely affect our sales, margins and profitability
4. 04We operate in an industry that is subject to cyclical fluctuations and any downturn in general economic conditions or in our customers’ specific industries could negatively impact our profitability and cash flows
5. 05We compete with a large number of companies in the metals service center industry, and, if we are unable to compete effectively, our profitability and cash flows may decline
6. 06If we were to lose any of our primary suppliers or otherwise be unable to obtain sufficient amounts of necessary metals on a timely basis, we may not be able to meet our customers’ needs and may suffer reduced sales
7. 07We rely upon our suppliers as to the specifications of the metals we purchase from them
8. 08Climate change might adversely impact our supply chain or our operations
9. 09There is also increased focus by governmental and non-governmental entities on sustainability matters. Any perception that we have failed to act responsibly regarding climate change could result in negative publicity and adversely affect our business and reputation
10. 10We face increased competition and pricing pressures from alternative materials and risks concerning innovation, new technologies, products and increasing customer requirements
11. 11Our insurance coverage, customer indemnifications or other liability protections may be unavailable or inadequate to cover all of our significant risks or our insurers may deny coverage of or be unable to pay for material losses we incur, which could adversely affect our profitability and overall financial position
12. 12subject to certain terms or limitations, including the availability of funds, and may not be sufficient to cover all losses or liabilities incurred
13. 13If we do not successfully implement our growth strategy, our ability to grow our business could be impaired
14. 14We may not be successful in achieving expected operating efficiencies and sustaining or improving operating expense reductions, and might experience business disruptions associated with restructuring, realignment and cost reduction activities
15. 15Acquisitions present many risks, and we may not realize the financial and strategic goals that were contemplated at the time of each transaction
16. 16These factors could have a material adverse effect on our business, results of operations, financial condition or cash flows, particularly in the case of a larger acquisition or the completion of a number of acquisitions in any short period of time
17. 17We are a decentralized company, which presents certain risks
18. 18We are subject to various environmental, employee safety and health, and customs and export laws and regulations, which could subject us to significant liabilities and compliance expenditures
19. 19We operate internationally and are subject to changes in tax rates, exchange rate fluctuations, exchange controls, political risks and other risks relating to international operations
20. 20We rely on information management systems and any damage, interruption or compromise of our information technology management systems, networks or data could disrupt and harm our business
21. 21Our enterprise data practices, including the collection, use, sharing, and security of the personal identifiable information of our customers, employees, or suppliers are subject to increasingly complex, restrictive, and punitive regulations in all key market regions
22. 22Our financial results may be affected by various legal and regulatory proceedings, including those involving antitrust, tax, environmental, or other matters
23. 23The volatility of the stock market could result in a material impairment of goodwill or indefinite-lived intangible assets
24. 24Our business operations and financial performance could be adversely affected by changes in our relationship with our employees or changes to U.S. or foreign employment regulations
25. 25We face certain risks associated with potential labor disruptions
26. 26If we are unable to attract, retain and develop key personnel, our business could be materially adversely affected

Risks Related to our Indebtedness

1. 27Our indebtedness could impair our financial condition or cause a downgrade of our credit rating and reduce the funds available to us for other purposes and our failure to comply with the covenants contained in our debt instruments could result in an event of default that could adversely affect our operating results
2. 28Because all of our available borrowing capacity on our revolving credit facility bears interest at rates that fluctuate with changes in certain prevailing short-term interest rates, if we increase our leverage in the future, we are vulnerable to increases in interest rates