TORONTO, May 1, 2024 /CNW/ - Russel Metals Inc. (TSX: RUS) announces financial results for three months ended March 31, 2024. Revenues of $1.1 Billion and EBITDA1 of $84 MillionCash Generated from Operating Activities of $85 MillionRepurchased $15 Million of Shares; Quarterly Dividend Increase of 5% to $0.42 per ShareRedeeming $150 million of 6% NotesLiquidity1 of $956 Million Three Months Ended Mar 31 2024 Dec 31 2023 Mar 31 2023 Revenues $  1,061 $  1,019 $  1,187 EBITDA 1 84 82 116 Net Income 50 47 74 Earnings per share 0.82 0.78 1.19 All amounts are reported in millions of Canadian dollars except per share figures, which are in Canadian dollars. Non-GAAP Measures and RatiosWe use a number of measures that are not prescribed by IFRS Accounting Standards ("IFRS" or "GAAP") and as such may not be comparable to similar measures presented by other companies.  We believe these measures are commonly employed to measure performance in our industry and are used by analysts, investors, lenders and other interested parties to evaluate financial performance and our ability to incur and service debt to support our business activities.  These non-GAAP measures include EBITDA and Liquidity and are defined below.  Refer to Non-GAAP Measures and Ratios on page 2 of our Management Discussion and Analysis. EBIT - represents net earnings before interest and income taxes.EBITDA - represents net earnings before interest, income taxes, depreciation and amortization.Liquidity - represents cash on hand less bank indebtedness plus excess availability under our bank credit facility.Cash (for) from working capital - represents the change in non-cash working capital. The following table shows the reconciliation of net earnings in accordance with GAAP to EBITDA for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023: Three Months Ended ($ millions, except per share data) Mar 31 2024 Dec 31 2023 Mar 31 2023 Net earnings $       49.7 $       47.2 $       73.9 Provision for income taxes 16.7 15.7 22.3 Interest (income) expense, net (0.1) 0.7 3.8 EBIT 1 66.3 63.6 100.0 Depreciation and amortization 17.7 18.6 16.4 EBITDA 1 $       84.0 $       82.2 $     116.4 Basic earnings per share $       0.82 $       0.78 $       1.19 _________________________ 1 Defined in Non-GAAP Measures and Ratios Our basic earnings per share of $0.82 for the quarter ended March 31, 2024, was lower than the $1.19 per share recorded in the first quarter of 2023 but higher than the $0.78 reported in the fourth quarter of 2023.  Revenues of $1.1 billion were lower than the $1.2 billion experienced in the first quarter of 2023 but higher than the $1.0 billion in the fourth quarter of 2023.  Our gross margins of 22.4% improved compared to 21.9% in the same quarter of 2023 and 21.3% in the fourth quarter of 2023.  The sequential improvement in margins was across all three of our business segments. During our 2024 first quarter we generated $85 million of cash from operating activities before non-cash working capital, invested $24 million of capital expenditures to further our internal growth initiatives and returned $39 million of capital to our shareholders through $24 million of dividends and $15 million of share buybacks. In the quarter, we generated $84 million in EBITDA as compared to $82 million in the fourth quarter of 2023.  The first quarter of 2024 was negatively impacted by $2 million in non-recurring expenses relating to the announced acquisition of seven service center locations from Samuel, Son & Co., Limited ("Samuel").  In addition, the mark-to-market on stock-based compensation did not have an impact in the first quarter of 2024 as compared to an expense of $7 million in the 2023 fourth quarter. Market ConditionsSteel prices declined during the mid-to-latter part of the 2024 first quarter prior to stabilizing in late March and into April.  Our metals service centers experienced 2% higher average selling prices for the first quarter of 2024 as compared to the fourth quarter of 2023, as we benefited from the higher price levels at the outset of the first quarter and our continued growth in value-added processing.  In addition, we shipped 4% higher volumes in the first quarter of 2024 as compared to the fourth quarter of 2023, due to the seasonal pick-up in demand.  Our energy field stores generated 12% higher revenues in the first quarter of 2024 as compared to the fourth quarter of 2023, as our business benefited from solid activity and growing market share, including the opening of two new energy field stores in the 2024 first quarter.  Steel distributors were negatively impacted in the quarter by overseas shipping issues, which delayed inbound product from the first quarter into the second quarter of 2024. Capital Investment Growth InitiativesIn the 2024 first quarter, we invested $24 million in capital expenditures, including: (i) $2 million for our greenfield facility in Saskatoon (Saskatchewan) that is scheduled to open in the summer of 2024, (ii) $3 million for the expansion of our Texarkana (Texas) facility that is scheduled to be complete in the fall of 2024, and (iii) $3 million for a flat and a tube laser in our Winnipeg (Manitoba) facility, both of which will be operational in the 2024 second quarter. On April 15, 2024, we provided an update regarding our previously announced acquisition of seven service centers located in Western Canada and the Northeastern U.S. from Samuel.  The Competition Bureau's review of the transaction is ongoing, and the Competition Bureau has advised us and Samuel that it has concerns related to a narrow segment of product in a specific geography.  We and Samuel continue to engage constructively with the Competition Bureau in an effort to bring this matter to a resolution.  As part of the ongoing dialogue, we and Samuel have made a timing commitment to the Competition Bureau that will allow the Competition Bureau to continue its investigation and advance the discussions.  Accordingly, the acquisition is no longer expected to close in the second quarter of 2024.  In addition, we continue to advance our integration planning initiatives in coordination with Samuel. Returning Capital to ShareholdersWe have adopted a flexible approach to returning capital to shareholders through: (i) our ongoing dividend; and (ii) share buybacks. In the 2024 first quarter, we paid dividends of $24 million or $0.40 per share.  As a result of our continued strong earnings and cash flow profile, we have declared a 5% increase in our quarterly dividend to $0.42 per share payable on June 14, 2024. In August 2023, we renewed our normal course issuer bid to purchase for cancellation up to 6.1 million of our common shares over 12 months.  In the 2024 first quarter, we purchased and cancelled 0.3 million shares for total consideration of $15 million.  In the period since the August 2022 normal course issuer bid was established, we purchased 3.5 million shares at an average price per share of $35.56 for total consideration of $124 million. Liquidity and Capital StructureDuring the 2024 first quarter, we generated $85 million of cash from operating activities before non-cash working capital and ended the quarter with total available liquidity of $956 million.  On May 2, 2024, we will redeem our 6% senior unsecured notes at par plus accrued and unpaid interest.  This redemption will reduce our interest expense while maintaining strong ongoing liquidity.  This redemption, in combination with our strong balance sheet, sets the stage for other debt structure improvements. OutlookOver the near term, we expect steel prices to stabilize and remain at price levels that are above historical averages, as a result of solid end market demand and expected discipline by North American steel mills.  Over the medium-term, we expect growth in North American steel consumption as a result of onshoring activities and infrastructure spending initiatives in both Canada and the U.S.  In addition, we are positioned to gain market share through our ongoing investment initiatives.  Our energy field stores are expected to continue to benefit from solid energy activity in 2024. Investor Conference CallThe Company will be holding an Investor Conference Call on Thursday, May 2, 2024, at 9:00 a.m. ET to review its 2024 first quarter results.  The dial-in telephone numbers for the call are 416-764-8688 (Toronto and International callers) and 1-888-390-0546 (U.S. and Canada).  Please dial in 10 minutes prior to the call to ensure that you get a line. A replay of the call will be available at 416-764-8677 (Toronto and International callers) and 1-888-390-0541 (U.S. and Canada) until midnight, ...