Operator: Greetings, and welcome to the RELIANCE, INC. Third Quarter 2026 Earnings Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star one on your telephone keypad. We ask you please ask one question and one follow-up, then return to the queue.
Operator: As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to turn the call over to Kim Orlando with Edelman Investor Relations. Kim, please go ahead.
Kim Orlando: Thank you, operator. Good morning, and thanks to all of you for joining our conference call to discuss Reliance's Q3 2026 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 in the investors section of our website at investor.reliance.com.
Kim Orlando: Please read the forward-looking statements disclosure included in our earnings release issued yesterday, and note that it applies to all statements made during this teleconference. Reconciliations of the non-GAAP measures are included in the non-GAAP reconciliation section of our earnings release. I will now turn the call over to Karla Lewis, President and CEO of Reliance.
Karla Lewis: Good morning, everyone, and thank you for joining us to discuss our Q3 2026 results. Reliance delivered an exceptional quarter with record quarterly net sales, our second highest gross profit dollars, and our third highest quarterly earnings per share. Reliance capitalized on a favorable market environment characterized by continued healthy demand and tight supply, leading to increased pricing levels for most carbon steel products.
Karla Lewis: Our long-term strategy of supporting both our valued customers and our key domestic mill partners positioned us particularly well to benefit from these dynamics. Our scale, product diversification, expansive value-added processing capabilities, and ability to source the inventory our customers need, led by the strong execution of our teams in the field, drove our exceptional results.
Karla Lewis: The US Department of Homeland Security border wall contract we were awarded earlier this year continued to ramp and delivered another meaningful contribution to our Q3 earnings. Our smart, profitable growth strategy once again produced record quarterly tons sold, contributing to non-GAAP diluted earnings per share of $8.02, up 120% year over year.
Karla Lewis: Our strong balance sheet and ample liquidity continue to provide us the means and flexibility to concurrently invest in our businesses, pursue strategic growth investments, and return capital to our stockholders. Our full year 2026 capital expenditure outlook remains approximately $300 million, with about half allocated to strategic growth investments that enhance our processing capabilities, strengthen customer service, expand our footprint, and increase volumes in attractive markets.
Karla Lewis: We continue to evaluate acquisition opportunities and stand ready to execute the right opportunities quickly. During the quarter, we funded $79 million of capital expenditures, paid $64 million in dividends, and repurchased $45 million of our common stock at an average price of approximately $395 per share.
Karla Lewis: On 20 October, our board of directors increased our share repurchase authorization to $2.5 billion without a set expiration date, further supporting our disciplined approach to returning capital to our stockholders. Since 2021, we have repurchased $3.4 billion of RELIANCE common stock at an average price of approximately $236 per share, reducing our outstanding common shares by 23% in that period.
Karla Lewis: Looking ahead, we believe RELIANCE is very well-positioned as customer optimism remains high and strengthens across infrastructure, semiconductor, general manufacturing, and aerospace.
Karla Lewis: Together, our proven business model, outstanding team, and current market dynamics give us confidence in our ability to gain market share and invest through cycles to continue driving profitable growth and strong stockholder returns through the remainder of the year and into 2027. I will now turn the call over to our COO, Steve Koch.
Steve Koch: Thanks, Karla, and good morning, everyone. Our outstanding Q3 results reflect RELIANCE's ability to capitalize on favorable market conditions. This performance would not be possible without the relentless efforts of our teams across the RELIANCE family of companies. I want to thank each of them for their unwavering commitment to our customers and the safety of our employees.
Steve Koch: Turning to our demand and pricing trends, the strength of the market was evident in our shipment volumes, which increased sequentially despite normal seasonal patterns and constrained material availability. Record tons sold increased 4.3% from the prior quarter, including a 3.7% contribution from the US border wall project.
Steve Koch: Our Q3 year-over-year growth in tons sold of 15.6% outperformed the industry-wide increase of 10.1% reported by the Metals Service Center Institute. Carbon steel products continued to lead our tons sold growth.
Steve Koch: Our Q3 average selling price increased 8.2% from Q2 2026, significantly exceeding our expectation of flat to up 2%. Pricing for all commodities, particularly carbon steel products, increased during the quarter amid constrained supply, extended lead times, and strengthening demand. These dynamics highlight the value of our strong domestic mill relationships and reliable access to metal, which differentiate RELIANCE in a tight supply environment.
Steve Koch: Turning to our end markets, non-residential construction represented a little more than one-third of our Q3 sales, primarily from carbon steel tubing, plate, and structural products. Q3 shipments remained strong despite supply constraints, driven by sustained strength in data center and related energy infrastructure projects, alongside solid demand in heavy civil and public infrastructure. Our participation in the US border wall project further strengthened our presence in the public infrastructure sector of the non-residential construction market.
Steve Koch: General manufacturing represented about one-third of our Q3 sales. Our participation spans a diverse range of products, industries, and geographies. Shipments showed strong year-over-year growth driven by industrial machinery, including data center equipment, as well as shipbuilding, military, and construction machinery. Aerospace products accounted for approximately 8% of our Q3 sales.
Steve Koch: Commercial aerospace demand improved during the quarter, with continued progress in OEM build rates and growing backlogs, though elevated inventories persist. Defense and space-related activity remained strong during the quarter. Automotive, which we primarily serve through our toll processing operations, represented about 4% of our Q3 sales.
Steve Koch: As a reminder, our toll processing volumes are excluded from our tons sold. Demand improved compared to the prior year as our flexible toll processing operations quickly adapted to the variable demands of the automotive market. Lastly, demand in the semiconductor market strengthened meaningfully.
Steve Koch: We are seeing momentum accelerate, supported by increased data center activity. In summary, RELIANCE continues to distinguish itself through our people, our domestic mill relationships, and our relentless focus on delivering unmatched customer service. Against the backdrop of tight supply and continuing market volatility, our teams remain nimble in adjusting our approach while prioritizing support for our longstanding customers and their metal needs.
Steve Koch: The strategic investments we have made across our footprint are generating tangible returns, and our dynamic commercial and operational approach continues to drive the market outperformance and profitability that further distinguish us. I will now turn the call over to our CFO, Arthur, to review our financial results and outlook.
Arthur Ajemyan: Thanks, Steve, and thanks, everyone, for joining today's call. We delivered a very strong quarter with sales up 43% year-over-year, driven by better-than-anticipated shipments and pricing. As a result, non-GAAP earnings per diluted share of $8.02 significantly exceeded our guidance range of $6.40 to $6.60, despite considerably higher-than-anticipated LIFO expense.
Arthur Ajemyan: On a per-share basis, LIFO expense was $2.74 compared to the $1.10 included in our guidance, representing an incremental $1.64 per share headwind. We generated our second-highest quarterly gross profit of $1.5 billion, up 12% compared to Q2 2026 and up 41% compared to Q3 2025. Gross profit margin of 27.9% decreased 20 basis points sequentially due to increased LIFO expense associated with carbon steel costs rising significantly more than anticipated and the product mix impact of the US border wall project.
Arthur Ajemyan: On a FIFO basis, non-GAAP gross profit margin expanded to 31.6%, compared to 30.5% in Q2 2026 and 29% in the prior quarter, despite a roughly 60-basis-point year-over-year reduction attributable to the US border wall project. However, due to the project's below-company-average operating cost per ton profile, it added 40 basis points to pre-tax income margin.
Arthur Ajemyan: Gross profit dollars per ton remained historically strong for aluminum products and continue to increase across carbon and stainless steel products. With respect to LIFO outlook and true-up, we increased our full-year LIFO expense outlook to $450 million from our prior estimate of $300 million and recorded Q3 LIFO expense of $187.5 million, well above our estimate of $75 million, reflecting the year-to-date catch-up impact of our higher full-year LIFO estimate.
Arthur Ajemyan: Based on our updated outlook, we expect to record LIFO expense of $112.5 million in Q4 2026. At the end of Q3, the LIFO reserve on our balance sheet was nearly $890 million, which remains available to support future operating results by partially mitigating the impact of future metal price declines.
Arthur Ajemyan: Non-GAAP SG&A expense increased 18% compared to Q3 2025. Driven by higher incentive compensation from improved profitability, inflationary impacts on compensation and related employee benefits, freight and fuel cost inflation, and higher variable warehousing and delivery costs associated with our increased tons sold.
Arthur Ajemyan: On a per-ton basis, non-GAAP SG&A expense increased just 2%, reflecting favorable operating leverage from higher shipment volumes, including contributions from the US border wall project. Continued market share gains, higher shipment volumes, and increased gross profit dollars drove meaningful operating leverage, resulting in non-GAAP pre-tax income of $544 million, more than double the prior year amount.
Arthur Ajemyan: As noted, our non-GAAP earnings per diluted share grew 120% year over year to $8.02, with the US border wall project contributing $0.74 per share, exceeding our expectation of approximately $0.60 per share. Moving on to our balance sheet and cash flow. Cash flow from operations in Q3 improved sequentially to $212 million, despite a significant working capital build attributable to increased shipments and higher metal pricing.
Arthur Ajemyan: Our total debt was $1.6 billion at the end of the quarter. Our balance sheet and leverage profile remained very strong, with a net debt to EBITDA ratio of 0.8 times, providing substantial liquidity and flexibility to continue executing on all of our capital allocation priorities.
Arthur Ajemyan: Looking ahead to Q4, we expect healthy demand and tight supply across our key products and end markets will continue, subject to ongoing risks from domestic and international trade policy and geopolitical conditions, as well as normal seasonality. We anticipate Q4 2026 non-GAAP earnings per diluted share in the range of $7.40 to $7.60, including an estimated $112.5 million of LIFO expense, or about $1.64 per diluted share.
Arthur Ajemyan: This outlook also includes approximately $0.70 of earnings per share from shipments associated with the US border wall project at pre-tax income margin levels above the company average. Please refer to our Q3 earnings release for further details on our Q4 outlook. This concludes our prepared remarks. Thank you again for your time and participation, and we will now open the call for your questions. Operator?
Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to be placed into question queue, please press *1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press *2 if you would like to remove your question from the queue.
Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing *1. One moment please while we poll for questions. Our first question today is coming from Katja Jancic from BMO Capital Markets. Your line is now live.
Katja Jancic: Thank you for taking my questions. Starting on the border wall. It has outperformed expectations on the volume side for this quarter. Can you talk about what is driving that? In other words, is the volume being pulled forward, or how should we think about it?
Karla Lewis: Yeah. Katja. Good morning. On the border wall, this is a new project for us. We started shipping under it in April, and the government issues, we have to first rely on our suppliers who are supporting us to ship the metal to us, and then we release to the government's subcontractors as they instruct us to do so.
Karla Lewis: There could be variability, of course, but it really ramped, and we feel we are at a pretty steady flow now through Q3, where we had a full quarter. So we are just supplying, and the subcontractors, everything has been flowing well. We have not seen any major disruptions. So we think this is a good run rate for us based upon the contract and the activity under the contract.
Katja Jancic: Then you mentioned some supply constraint that the industry is dealing with right now. Are there specific products that are more challenging to get for you, or you can get across the board without major issues?
Karla Lewis: Yeah, I think, the whole industry supply is tight in many products. Steve will speak a little more specifically on where we are seeing more tightness than others. But that is generally a good market environment for Reliance, as I think you saw in our results and our outlook. Our people are working really hard to source the metal that our customers need and make sure we are taking care of our longtime valued customers. Also, appropriately allocating our metal the way that our suppliers are doing with their customers.
Steve Koch: Yeah, Katja, I just want to go back to your question regarding the border wall. In this time of real tightness and unprecedented demand, I have to compliment our domestic suppliers who are using their flat-rolled material, turning it into tube so we can deliver on time and maybe even ahead of schedule.
Steve Koch: There are some carbon products that are constrained, but we are getting what we need. Carbon plate, hot rolled coil, and especially wide flange beams and aluminum plate heat-treated that goes into aerospace and semiconductor and general engineering has been tight. But again, our domestic suppliers have done a great job for us.
Katja Jancic: Perfect. Thank you.
Steve Koch: Thanks.
Karla Lewis: Thanks, Katia.
Operator: Thank you. Next question is coming from Nick Cash from Goldman Sachs. Your line is now live.
Nick Cash: Thank you so much. Thank you for taking my question. On the border wall shipments of 4% to 6% year-over-year, a lot of you guys have also mentioned customer optimism across a majority of end markets. As you look into 2027, should we think about this pace of organic growth continuing to outpace the industry by several points, or are current levels benefiting from unusually tight supply and elevated project activity, resulting in further tailwinds for you guys?
Karla Lewis: Yeah. Good morning, Nick. A little difficult given all the varying factors to look out that far. We have had very strong organic growth, I think partly because of where we are positioned with the different products, the different end markets, and even within the broad end markets, specifically, which parts of those end markets that we participate in.
Karla Lewis: Given the customer optimism, their backlogs that we are hearing about, we expect demand to remain healthy. Organic growth, though, could be tempered by supply availability next year, given tight supply. Although we do feel that we should be able to get enough supply from the producers to be able to continue to outpace the industry. But we do have some pretty high hurdles to compare to next year.
Karla Lewis: We think there is still a lot of opportunity for Reliance, and we think that our teams in the field, they are motivated, they like to grow, and they like to win, and we think we will continue to see market share gains.
Nick Cash: No, that is extremely helpful. One more follow-up, sort of on that basis. I guess the border wall project is gross margin dilutive, but pre-tax margin accretive, like you said because the operating cost per ton is below the company average. Are you able to help quantify or help us understand the underlying SG&A leverage excluding the project? I guess how much additional leverage is available if organic shipments continue to improve?
Arthur Ajemyan: Yeah, Nick, it will be a little difficult because we are using existing infrastructure. But the contribution certainly to SG&A leverage is meaningful from that project. I think you can make some certain deductions from the disclosures that we have provided to come up with an estimate on your own. But certainly, it is a meaningful contribution.
Karla Lewis: I think Nick, even in 2025 and the beginning of 2026, as we were organically growing our tons, you could see some leverage that we were picking up before we had the additional border wall tons on the SG&A line. But there are some factors from an SG&A perspective, which we have got higher incentive compensation expense because our profitability is higher.
Karla Lewis: We are highly structured to be pay for performance, so we are seeing increased expense there. Then, also with the significant increases in freight and fuel costs and just regular inflation on medical costs and things like that, we are trying to offset that with some of those volume gains.
Nick Cash: That is very helpful. Thank you, and I will pass it on.
Karla Lewis: Thanks.
Operator: Thank you. Next question today is coming from Martin Englert from Seaport Research Partners. Your line is now live.
Martin Englert: Hello. Good day, everyone.
Karla Lewis: Martin.
Martin Englert: I had a question. I think the volume guide for Q4 implied something at the midpoint around 6% sequential, and that roughly seems to align with the five-year average. Are there any indications from customers that there could be a more muted seasonal decline this Q4 versus a normal year?
Karla Lewis: I think given the strength of the market and the customer optimism we just talked about, Martin, I think if metal is available, there is potential if our customers are busier. As we've talked about, I think every year in the fourth quarter, we're never certain how long some of our customers are going to shut down over the holidays. If they choose to stay open more days than they have the last few years, we might see a more muted shipment level. But our best estimate at this time is generally normal seasonality.
Arthur Ajemyan: Yeah, Martin, when we talk volumes, we often lead with sequential numbers. In three out of four quarters, it's a downward trend, but what gets lost is the year-over-year growth. So when you sort of step back and look at year-over-year growth Q4 of this year versus last, you're looking at 5% plus growth.
Arthur Ajemyan: I think that's the lens that I would use to look at this and not so much the sequential decline and is that seasonality or not. It's just, fourth quarter has less shipping days and more holidays, so you're always going to have a decline. Anyway, I think, we're more focused on the year-over-year growth part.
Martin Englert: Okay. That's all I had. Congratulations on the results.
Arthur Ajemyan: Thanks, Martin.
Operator: Thank you. Next question is coming from Samuel McKinney from KeyBanc Capital Markets. Your line is now live.
Samuel McKinney: Good morning.
Arthur Ajemyan: Morning.
Karla Lewis: Morning.
Samuel McKinney: I am going to follow up on Nick's question, just fighting the inflationary headwinds. The Q3 SG&A as a percent of sales was the lowest quarterly number you have posted in four years. Is this solely a function of the lower cost to serve on the border wall contract that saw higher volumes this quarter, or are you realizing other operational cost benefits within the business to highlight?
Arthur Ajemyan: Pricing is a big part of that. When you look at it as a percentage of sales, as a business, we get tremendous operating leverage, when we sell at higher prices. That is one. Then to the extent that we leverage our infrastructure and increase our volumes without adding too much incremental fixed cost, then that is where we get that operating leverage from incremental volumes. It is a combination. You have both of those factors playing out and supporting the improvement in the operating leverage that the business is getting.
Samuel McKinney: Okay. Based on the reported commodity revenues and volumes, Q3 implied stainless pricing was up meaningfully versus the Q2. Can you just talk about those dynamics and what you expect to see in that arena moving forward?
Arthur Ajemyan: Stainless, there is a little bit of mixed impact there. We have our semiconductor businesses picking up, and the products that they sell, the average selling price is significantly higher just because of the value-added processing that we do there. Overall, stainless, across the commodities has not had similar types of price appreciation as carbon and aluminum.
Arthur Ajemyan: Although we are seeing the commodity stainless grades kind of hold their own, and the specialty stainless grades, we think that they have hit the bottom, and we are in the middle of restocking for our customer base.
Samuel McKinney: All right. Thank you very much.
Arthur Ajemyan: Thank you.
Operator: Thank you. As a reminder, that is star 1 to be placed into question queue. Our next question today is coming from Bennett Moore from JPMorgan. Your line is now live.
Bennett Moore: Good morning, Karla, Steve, Arthur. Thank you for taking my question. Congrats on the strong quarter. Just in, I guess, the context of the border wall contract, I am wondering what your appetite is to pursue similar opportunities, and frankly, if there are similar opportunities out there that could align with this.
Karla Lewis: Morning, Bennett. The border wall project is larger than anything we have seen before. I do not know of many other projects of that size, for service center-type business that are out there. We are very happy that we were awarded this contract, and it fit our profile of the capabilities we have, along with kind of our financial metric profile, that we looked at it as a very strong piece of business for RELIANCE, INC. to be able to service, and we would look at other opportunities the same way.
Karla Lewis: It is not just about size, it is about what do they need? Can we service that well? The border wall, as we mentioned, we were able to leverage our existing infrastructure. We do service various different types of projects out there, including a lot on the military side, and we continue to look at those opportunities as they are available. We certainly would do more business like this if the opportunities were there and the profile fit.
Bennett Moore: Thank you for that. On the inventory side, it looks like the turn rose a bit further this quarter. That is some limited availability from your mill suppliers. Just wondering if you could speak to the company's inventory positioning looking ahead here.
Karla Lewis: Yeah, we feel good about where our inventory levels are. We always are focused on turning our inventory, and there has been a focus over the last couple of years, too, of really looking at any inventory that's maybe been where we've been a little over-inventoried and how to adjust that. But certainly, a tight market, you know, helps improve inventory turns, but we're comfortable at the levels where we are.
Steve Koch: Yeah. As lead times are extended, we're keeping a close eye. We're making sure that we're not over-ordering, double ordering. Prices are at pretty high levels, so we're going to keep our conservative nature, continue to buy locally, buy regionally, and buy what we need, trying to match customer demand.
Karla Lewis: Yeah.
Arthur Ajemyan: Just a little bit more color on overall working capital. While the total dollars, the investments in working capital have been significant this year, our working capital metrics actually have improved year over year, and particularly on inventory. To Karla's and Steve's point, our turns are up 10% year over year. That's a meaningful impact to working capital investments.
Arthur Ajemyan: To put it another way, our inventory levels would've been over $300 million more had we not had the inventory turn and working capital metric improvements that we've had this year. A lot of good work has gone on that end throughout the entire enterprise.
Bennett Moore: That's great context, Arthur. If I could just squeeze one real quick. You guys talked about rising pricing for most carbon steel products. Just kind of wondering which buckets may be lagging behind a bit.
Steve Koch: Most or pretty much all of the carbon prices are moving up. Some may be a little bit outside compared to others. But no, we are pretty bullish and positive on the carbon products.
Bennett Moore: All right. Thanks so much. Best of luck.
Steve Koch: Thank you.
Arthur Ajemyan: Thank you.
Operator: Thank you. Next question is coming from Lawson Winder from Bank of America. Your line is now live.
Lawson Winder: Thank you, operator, and good morning, Karla, Stephen, and Arthur. Thank you for today's presentation and for fitting me in. If I could just follow up on the border wall question. Thank you for the color around that and the fact that you believe it is starting to hit its run rate. What about sustainability? How should we think about how long that business can sustain those Q3 run rates?
Karla Lewis: Good morning, Lawson. As we mentioned, when we first announced the border wall project earlier this year, there is phase 1 of the border wall, which the award was based on dollar amounts. These are fully approved funding levels by the government. Phase 1 was $1.45 billion, which we are executing under right now. The initial expectation was for that to run through Q2 2027.
Karla Lewis: At the run rate we are at, we think sometime in Q2 we will fulfill the first phase of this. The second phase of the project was $800 million, but that had not been secured or fully executed at the time, although we have felt that the probability is high that the government would execute phase 2. Although still in progress, we have started to receive bookings under phase II.
Karla Lewis: We are at over half of the estimated $800 million phase II with orders already secured for over half of that. We think this should run through 2027. Depending if they execute the full amount of phase 2, it could run into early 2028.
Arthur Ajemyan: Just a little bit more color on phase 1, as Karla said. When you look at year to date through Q3 and factor in our Q4 guide for the border wall contributions, that will probably put us roughly halfway through the phase 1. Again, depending on the run rate and how fast the supply chain is able to absorb the quantities and install at that run rate, that takes us through mid-2027-ish to wrap up phase 1.
Lawson Winder: Okay. Wow, first of all. That is very helpful. Just following up on a comment or sort of tangentially picking up on something you said there. Obviously the border wall, that all has to be American-made steel. But given the supply constraints that you are seeing in the market, is there an increasing propensity to consider imported steel for those customers where Made in America is not necessarily a requirement?
Steve Koch: We have always tried to buy the majority of our material domestically for reasons we want to support US manufacturing. We want to be able to control our inventory lead times. There are some traditional import markets, the West Coast on flat-rolled, the Gulf region. We have brought some material in, whether it is long products or flat-rolled.
Steve Koch: There are opportunities out there, but we are all in with our domestic suppliers. We work with them side by side, and we are going to continue with our business model. There are certain areas where we do have to bring in certain materials, but we are going to kind of stay the course.
Karla Lewis: I think, Lawson, on a broader industry perspective, while you can just look at the price and see the numbers and maybe say it would make sense to start to see a lot more import come in. I think industry-wide, people are more hesitant to do that. There is risk. With the time involved, there are a lot of higher costs for freight right now, uncertainty because of some of the events going on in the world.
Karla Lewis: We believe people are being more thoughtful and that there will be some import material brought in, including by us, as Steve said. But we do not believe that the market is ripe for a flood of inventory at this point.
Lawson Winder: Okay. Thank you very much for that color.
Karla Lewis: Thank you.
Lawson Winder: If I could just follow up on one bigger question. You continue to highlight market share gains. It is core to your strategy, but nevertheless, I think it just might be helpful to get your thoughts on specifically where you are seeing those gains in 2026, and then, why in 2026 is RELIANCE winning share?
Karla Lewis: I think, Lars, in 2025, we had some pretty outsized share gains as well. There are pockets, I think a lot on the carbon side, carbon flat-rolled, also in some of the other commodities from a flat roll perspective. Historically, we had been a little underrepresented in some of those markets compared to industry consumption.
Karla Lewis: So we saw some pickup there, but fairly broad-based, especially, like I said, on the carbon side, plate, long products, really just encouraging our teams. It is not just about tons gains, it is also balancing with the profitability and going after the right pieces of business, and we think our teams have been doing a very good job of balancing that. We hope that we are winning business because of our high levels of customer service and really being able to provide solutions to our customers and helping them.
Lawson Winder: Thank you very much.
Karla Lewis: Thanks.
Lawson Winder: Thank you.
Operator: Thank you. We have reached the end of our question and answer session. I would like to turn the floor back over for any further closing comments.
Karla Lewis: Once again, we would like to thank everyone for joining us today and continuing to support RELIANCE, INC. As we mentioned earlier, we are very thankful to our teams across RELIANCE, INC., all of our RELIANCE, INC. family members who make it happen every day, and keep our people safe. We appreciate all of your efforts. We are excited about the opportunities ahead, and we look forward to updating you on our continued progress. Thanks, everyone, and goodbye.
Operator: Thank you. That does conclude today's teleconference. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.
