Quarterly results include strong cash flow
generation and expense management, and ninth consecutive increase
in the quarterly dividend. Business highlights include continued
progress integrating recent acquisitions, ongoing development and
implementation of organic growth projects, and customer experience
initiatives including University Park,
Illinois service center.
CHICAGO, Oct. 30,
2023 /PRNewswire/ -- Ryerson Holding
Corporation (NYSE: RYI), a leading value-added processor and
distributor of industrial metals, today reported results for the
third quarter ended September 30,
2023.
Highlights:
- Achieved Net Income attributable to Ryerson Holding Corporation
of $35.0 million and Adjusted
EBITDA1, excluding LIFO of $45.0
million
- Delivered Diluted Earnings Per Share of $1.00 on revenue of $1.25
billion
- Generated Operating Cash Flow of $79.3
million and Free Cash Flow of $56.9
million
- Maintained Net Leverage ratio within target range at 1.4x, debt
of $366 million and net
debt2 of $329 million as
of September 30, 2023
- Acquired Norlen Incorporated, a full-service value-added
processor, subsequent to quarter-end
- Announced fourth quarter 2023 dividend of $0.1850 per share, a 1.4% increase from the prior
quarter
|
$ in millions,
except tons (in thousands), average selling prices, and earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Highlights:
|
|
Q3
2023
|
|
Q3
2022
|
|
Q2
2023
|
|
YoY
|
|
QoQ
|
|
9MO
2023
|
|
9MO
2022
|
|
YoY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$1,246.7
|
|
$1,543.1
|
|
$1,343.5
|
|
(19.2) %
|
|
(7.2) %
|
|
$3,996.3
|
|
$5,035.4
|
|
(20.6) %
|
|
Tons shipped
|
|
478
|
|
512
|
|
496
|
|
(6.6) %
|
|
(3.6) %
|
|
1,493
|
|
1,564
|
|
(4.5) %
|
|
Average selling
price/ton
|
|
$2,608
|
|
$3,014
|
|
$2,709
|
|
(13.5) %
|
|
(3.7) %
|
|
$2,677
|
|
$3,220
|
|
(16.9) %
|
|
Gross
margin
|
|
20.0 %
|
|
17.6 %
|
|
19.4 %
|
|
240
bps
|
|
60
bps
|
|
19.4 %
|
|
22.8 %
|
|
-340
bps
|
|
Gross margin, excl.
LIFO
|
|
17.3 %
|
|
16.2 %
|
|
18.7 %
|
|
110
bps
|
|
-140
bps
|
|
18.4 %
|
|
20.9 %
|
|
-250
bps
|
|
Warehousing, delivery,
selling, general, and administrative expenses
|
|
$193.0
|
|
$186.5
|
|
$202.6
|
|
3.5 %
|
|
(4.7) %
|
|
$589.8
|
|
$544.7
|
|
8.3 %
|
|
As a percentage of
revenue
|
|
15.5 %
|
|
12.1 %
|
|
15.1 %
|
|
340
bps
|
|
40
bps
|
|
14.8 %
|
|
10.8 %
|
|
400
bps
|
|
Net income attributable
to Ryerson Holding Corporation
|
|
$35.0
|
|
$55.1
|
|
$37.6
|
|
(36.5) %
|
|
(6.9) %
|
|
$119.9
|
|
$415.1
|
|
(71.1) %
|
|
Diluted earnings per
share
|
|
$1.00
|
|
$1.46
|
|
$1.06
|
|
$(0.46)
|
|
$(0.06)
|
|
$3.34
|
|
$10.78
|
|
$(7.44)
|
|
Adjusted diluted
earnings per share
|
|
$1.00
|
|
$1.48
|
|
$1.06
|
|
$(0.48)
|
|
$(0.06)
|
|
$3.34
|
|
$11.11
|
|
$(7.77)
|
|
Adj. EBITDA, excl.
LIFO
|
|
$45.0
|
|
$78.5
|
|
$70.1
|
|
(42.7) %
|
|
(35.8) %
|
|
$205.2
|
|
$553.3
|
|
(62.9) %
|
|
Adj. EBITDA, excl.
LIFO margin
|
|
3.6 %
|
|
5.1 %
|
|
5.2 %
|
|
-150
bps
|
|
-160
bps
|
|
5.1 %
|
|
11.0 %
|
|
-590
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet and
Cash Flow Highlights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
$365.9
|
|
$476.9
|
|
$396.1
|
|
(23.3) %
|
|
(7.6) %
|
|
$365.9
|
|
$476.9
|
|
(23.3) %
|
|
Cash and cash
equivalents
|
|
$37.4
|
|
$50.9
|
|
$30.0
|
|
(26.5) %
|
|
24.7 %
|
|
$37.4
|
|
$50.9
|
|
(26.5) %
|
|
Net debt
|
|
$328.5
|
|
$426.0
|
|
$366.1
|
|
(22.9) %
|
|
(10.3) %
|
|
$328.5
|
|
$426.0
|
|
(22.9) %
|
|
Net debt / LTM Adj.
EBITDA, excl. LIFO
|
|
1.4x
|
|
0.5x
|
|
1.4x
|
|
0.9x
|
|
—
|
|
1.4x
|
|
0.5x
|
|
0.9x
|
|
Cash conversion cycle
(days)
|
|
78.3
|
|
83.4
|
|
76.1
|
|
(5.1)
|
|
2.2
|
|
77.6
|
|
78.7
|
|
(1.1)
|
|
Net cash provided by
operating activities
|
|
$79.3
|
|
$151.6
|
|
$115.3
|
|
$(72.3)
|
|
$(36.0)
|
|
$275.0
|
|
$319.6
|
|
$(44.6)
|
A reconciliation of non-GAAP financial measures to the
comparable GAAP measure is included below in this news
release.
Management Commentary
Eddie
Lehner, Ryerson's President and Chief Executive Officer,
said, "I want to thank all of my Ryerson teammates for their
continued efforts creating and sustaining a safe and productive
operating environment. Additionally, I want to thank our customers
for affording us the opportunity to contribute as an integral part
of their supply-chains, which we never take for granted.
Counter-cyclical conditions that emerged in the second quarter of
2023 continued to impact our industry during the third quarter,
highlighted by shifting consumer spending patterns, higher interest
rates, tightening credit conditions, decelerating manufacturing
activity, as well as global economic slowing particularly in
Europe and China. Prices across our product mix decreased
during the quarter, while lower transactional customer quoting
activity and reduced OEM customer order sizes put downward pressure
on average selling prices and compressed gross margins. Despite
unfavorable market conditions, we generated cash from operations
and working capital release, reduced net debt, reduced costs,
provided returns for shareholders, invested in growth through the
acquisition of Norlen Incorporated in early October, and continued
start-up activities at our new service centers in University Park, Illinois, Las Vegas, Nevada and the expansion of our
service center in Shelbyville,
Kentucky. While we navigated the cyclical headwinds during
the quarter, we continued to improve our operating model by
investing in systems technologies, expanding value-added
capabilities and implementing efficiencies to position our business
for long-term growth. As we look towards the fourth quarter and
into 2024, our current investments in our physical and digital
network position Ryerson well for both the next upturn and expected
longer-term secular growth drivers in North American manufacturing
activity."
Third Quarter Results
Ryerson generated net sales of
$1.2 billion in the third quarter of
2023, a decrease of 7.2% compared to the second quarter of
2023. Net sales during the period were influenced by
sequentially lower volumes and average selling prices, which
decreased 3.6% and 3.7%, respectively, compared to the second
quarter of 2023.
Gross margin expanded sequentially by 60 basis points to 20.0%
in the third quarter of 2023, compared to 19.4% in the second
quarter. Gross margins reflected LIFO income of $33.4 million, as the commodity price curves for
our metals products sales mix decreased.
Excluding the impact of LIFO, gross margin contracted 140 basis
points to 17.3% in the third quarter of 2023, compared to 18.7% in
the second quarter. The compression in gross margins, excluding
LIFO, was primarily driven by a decrease in prices across our
product mix coupled with continued above normal inventories in the
channel that put downward pressure on average selling prices.
Warehousing, delivery, selling, general and administrative expenses
decreased 4.7% to $193.0 million in
the third quarter, compared to $202.6
million in the second quarter, primarily driven by lower
variable expenses, lower accruals for personnel related expenses,
and lower professional fees, partially offset by higher
reorganization expenses related to an ERP systems implementation
and start-up costs associated with the University Park service center.
Net income attributable to Ryerson Holding Corporation for the
third quarter of 2023 was $35.0
million, or $1.00 per diluted
share, compared to net income of $37.6
million, or $1.06 per diluted
share in the previous quarter. Ryerson generated Adjusted EBITDA,
excluding LIFO of $45.0 million in
the third quarter of 2023, compared to the second quarter Adjusted
EBITDA, excluding LIFO of $70.1
million.
Liquidity & Debt Management
Ryerson generated
$79.3 million of cash from operations
in the third quarter of 2023, supported by net income attributable
to Ryerson Holding of $35.0 million and working capital release of
$15.1 million. The Company ended the
third quarter of 2023 with $366
million of debt and $329
million of net debt, a sequential decrease of $30 million and $37
million, respectively, compared to the second quarter.
Ryerson's leverage ratio as of the third quarter was 1.4x, which
remains unchanged from the previous quarter and within the
Company's target leverage range. Ryerson's global liquidity,
composed of cash and cash equivalents and availability on its
revolving credit facilities, was $807
million as of September 30,
2023.
Shareholder Return Activity
Dividends. During the third quarter of 2023, Ryerson
paid a quarterly dividend in the amount of $0.1825 per share, amounting to a cash return of
approximately $6.3 million. On
October 30, 2023, the Board of
Directors declared a quarterly cash dividend of $0.1850 per share of common stock, payable on
December 14, 2023, to stockholders of
record as of November 30,
2023.
Share Repurchase. Over the course of the third
quarter of 2023, the Company repurchased 133,094 shares for
$4.0 million in the open market.
Ryerson made these repurchases in accordance with its share
repurchase authorization, which allows the Company to acquire up to
an aggregate amount of $100.0 million
of the Company's common stock through April of 2025. As of
September 30, 2023, $45.7 million of the $100.0 million remained under the existing share
repurchase authorization. In total, Ryerson returned to
shareholders $10.3 million in the
third quarter of 2023.
Outlook Commentary
For the fourth quarter of 2023,
Ryerson expects normal industry seasonal demand conditions, with
customer shipments expected to decrease approximately 4% to 7%,
quarter-over-quarter. The Company anticipates fourth-quarter net
sales to be in the range of $1.00 to
$1.15 billion, with average selling
prices decreasing 3% to 5%. LIFO income in the fourth quarter of
2023 is expected to be $8 to
$12 million. We expect adjusted
EBITDA, excluding LIFO in the range of $28
million to $32 million and
earnings per diluted share in the range of $0.18 to $0.22.
|
Third Quarter 2023
Major Product Metrics
|
|
|
|
|
|
|
Net Sales
(millions)
|
|
|
Q3
2023
|
|
Q3
2022
|
|
|
Q2
2023
|
|
Year-over-year
|
Quarter-over-quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
Carbon Steel
|
$
|
647
|
$
|
834
|
|
$
|
683
|
|
(22.4) %
|
|
(5.3) %
|
|
|
Aluminum
|
$
|
273
|
$
|
315
|
|
$
|
297
|
|
(13.3) %
|
|
(8.1) %
|
|
|
Stainless
Steel
|
$
|
304
|
$
|
370
|
|
$
|
338
|
|
(17.8) %
|
|
(10.1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons Shipped
(thousands)
|
|
|
Q3
2023
|
|
Q3
2022
|
|
|
Q2
2023
|
|
Year-over-year
|
Quarter-over-quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
Carbon Steel
|
|
371
|
|
405
|
|
|
384
|
|
(8.4) %
|
|
(3.4) %
|
|
|
Aluminum
|
|
49
|
|
49
|
|
|
51
|
|
—
|
|
(3.9) %
|
|
|
Stainless
Steel
|
|
55
|
|
56
|
|
|
59
|
|
(1.8) %
|
|
(6.8) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Selling
Prices (per ton)
|
|
|
Q3
2023
|
|
Q3
2022
|
|
|
Q2
2023
|
|
Year-over-year
|
Quarter-over-quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
Carbon Steel
|
$
|
1,744
|
$
|
2,059
|
|
$
|
1,779
|
|
(15.3) %
|
|
(2.0) %
|
|
|
Aluminum
|
$
|
5,571
|
$
|
6,429
|
|
$
|
5,824
|
|
(13.3) %
|
|
(4.3) %
|
|
|
Stainless
Steel
|
$
|
5,527
|
$
|
6,607
|
|
$
|
5,729
|
|
(16.3) %
|
|
(3.5) %
|
|
|
First Nine Months
2023 Major Product Metrics
|
|
|
|
|
|
|
|
|
|
|
Net Sales
(millions)
|
|
|
|
|
YTD
2023
|
|
|
YTD
2022
|
Year-over-year
|
|
|
|
|
|
|
|
|
|
|
|
|
Carbon Steel
|
|
$
|
2,022
|
|
$
|
2,687
|
|
(24.7) %
|
|
|
Aluminum
|
|
|
$
|
880
|
|
$
|
966
|
|
(8.9) %
|
|
|
Stainless
Steel
|
|
$
|
1,020
|
|
$
|
1,312
|
|
(22.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons Shipped
(thousands)
|
|
|
|
|
YTD
2023
|
|
|
YTD
2022
|
Year-over-year
|
|
|
|
|
|
|
|
|
|
|
|
|
Carbon Steel
|
|
|
1,157
|
|
|
1,218
|
|
(5.0) %
|
|
|
Aluminum
|
|
|
|
152
|
|
|
150
|
|
1.3 %
|
|
|
Stainless
Steel
|
|
|
177
|
|
|
190
|
|
(6.8) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Selling
Prices (per ton)
|
|
|
|
|
YTD
2023
|
|
|
YTD
2022
|
Year-over-year
|
|
|
|
|
|
|
|
|
|
|
|
|
Carbon Steel
|
|
$
|
1,748
|
|
$
|
2,206
|
|
(20.8) %
|
|
|
Aluminum
|
|
|
$
|
5,789
|
|
$
|
6,440
|
|
(10.1) %
|
|
|
Stainless
Steel
|
|
$
|
5,763
|
|
$
|
6,905
|
|
(16.5) %
|
|
Earnings Call Information
Ryerson will host a
conference call to discuss third quarter 2023 financial results for
the period ended September 30, 2023,
on Tuesday, October 31, 2023, at
10 a.m. Eastern Time. The live online
broadcast will be available on the Company's investor relations
website, ir.ryerson.com. A replay will be available at the same
website for 90 days.
About Ryerson
Ryerson is a leading value-added
processor and distributor of industrial metals, with operations in
the United States, Canada, Mexico, and China. Founded in 1842, Ryerson has around
4,300 employees in approximately 100 locations. Visit Ryerson at
www.ryerson.com.
Notes:
1For EBITDA, Adjusted EBITDA and
Adjusted EBITDA excluding LIFO please see Schedule 2
2Net debt is defined as long term debt plus short term
debt less cash and cash equivalents and excludes restricted
cash
Legal Disclaimer
The contents herein are provided for
general information purposes only and do not constitute an offer to
sell or buy, or a solicitation of an offer to buy, any security
("Security") of the Company or its affiliates ("Ryerson") in any
jurisdiction. Ryerson does not intend to solicit, and is not
soliciting, any action with respect to any Security or any other
contractual relationship with Ryerson. Nothing in this release,
individually or taken in the aggregate, constitutes an offer of
securities for sale or buy, or a solicitation of an offer to buy,
any Security in the United States,
or to U.S. persons, or in any other jurisdiction in which such an
offer or solicitation is unlawful.
Safe Harbor Provision
Certain statements made in this
release and other written or oral statements made by or on behalf
of the Company constitute "forward-looking statements" within the
meaning of the federal securities laws, including statements
regarding our future performance, as well as management's
expectations, beliefs, intentions, plans, estimates, objectives, or
projections relating to the future. Such statements can be
identified by the use of forward-looking terminology such as
"objectives," "goals," "preliminary," "range," "believes,"
"expects," "may," "estimates," "will," "should," "plans," or
"anticipates" or the negative thereof or other variations thereon
or comparable terminology, or by discussions of strategy. The
Company cautions that any such forward-looking statements are not
guarantees of future performance and may involve significant risks
and uncertainties, and that actual results may vary materially from
those in the forward-looking statements as a result of various
factors. Among the factors that significantly impact our business
are: the cyclicality of our business; the highly competitive,
volatile, and fragmented metals industry in which we operate; the
impact of geopolitical events, including Russia's invasion of Ukraine and global trade sanctions;
fluctuating metal prices; our indebtedness and the covenants in
instruments governing such indebtedness; the integration of
acquired operations; regulatory and other operational risks
associated with our operations located inside and outside of
the United States; the ownership
of a significant portion of our equity securities by a single
investor group; work stoppages; obligations under certain employee
retirement benefit plans; currency fluctuations; and consolidation
in the metals industry. Forward-looking statements should,
therefore, be considered in light of various factors, including
those set forth above and those set forth under "Risk Factors" in
our annual report on Form 10-K for the year ended December 31, 2022, our quarterly report on Form
10-Q for the quarter ended September 30,
2023 and in our other filings with the Securities and
Exchange Commission. Moreover, we caution against placing undue
reliance on these statements, which speak only as of the date they
were made. The Company does not undertake any obligation to
publicly update or revise any forward-looking statements to reflect
future events or circumstances, new information or otherwise.
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
|
Selected Income and
Cash Flow Data - Unaudited
|
|
|
(Dollars and Shares
in Millions, except Per Share and Per Ton Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
First Nine Months
Ended
|
|
|
|
Third
|
|
|
Second
|
|
|
Third
|
|
|
September
30,
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
$
|
1,246.7
|
|
|
$
|
1,343.5
|
|
|
$
|
1,543.1
|
|
|
$
|
3,996.3
|
|
|
$
|
5,035.4
|
|
|
Cost of materials
sold
|
|
|
997.4
|
|
|
|
1,082.6
|
|
|
|
1,272.1
|
|
|
|
3,221.9
|
|
|
|
3,888.4
|
|
|
Gross profit
|
|
|
249.3
|
|
|
|
260.9
|
|
|
|
271.0
|
|
|
|
774.4
|
|
|
|
1,147.0
|
|
|
Warehousing, delivery,
selling, general, and administrative
|
|
|
193.0
|
|
|
|
202.6
|
|
|
|
186.5
|
|
|
|
589.8
|
|
|
|
544.7
|
|
|
Gain on sale of
assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3.8)
|
|
|
OPERATING
PROFIT
|
|
|
56.3
|
|
|
|
58.3
|
|
|
|
84.5
|
|
|
|
184.6
|
|
|
|
606.1
|
|
|
Other income and
(expense), net
|
|
|
1.2
|
|
|
|
(0.3)
|
|
|
|
(1.3)
|
|
|
|
0.8
|
|
|
|
(22.3)
|
|
|
Interest and other
expense on debt
|
|
|
(9.3)
|
|
|
|
(8.3)
|
|
|
|
(7.6)
|
|
|
|
(25.2)
|
|
|
|
(26.2)
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
|
48.2
|
|
|
|
49.7
|
|
|
|
75.6
|
|
|
|
160.2
|
|
|
|
557.6
|
|
|
Provision for income
taxes
|
|
|
12.9
|
|
|
|
12.1
|
|
|
|
20.5
|
|
|
|
39.8
|
|
|
|
142.3
|
|
|
NET INCOME
|
|
|
35.3
|
|
|
|
37.6
|
|
|
|
55.1
|
|
|
|
120.4
|
|
|
|
415.3
|
|
|
Less: Net income
attributable to noncontrolling interest
|
|
|
0.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.5
|
|
|
|
0.2
|
|
|
NET INCOME ATTRIBUTABLE
TO RYERSON HOLDING CORPORATION
|
|
$
|
35.0
|
|
|
$
|
37.6
|
|
|
$
|
55.1
|
|
|
$
|
119.9
|
|
|
$
|
415.1
|
|
|
EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.02
|
|
|
$
|
1.07
|
|
|
$
|
1.49
|
|
|
$
|
3.40
|
|
|
$
|
11.00
|
|
|
Diluted
|
|
$
|
1.00
|
|
|
$
|
1.06
|
|
|
$
|
1.46
|
|
|
$
|
3.34
|
|
|
$
|
10.78
|
|
|
Shares outstanding -
basic
|
|
|
34.3
|
|
|
|
35.0
|
|
|
|
37.1
|
|
|
|
35.2
|
|
|
|
37.7
|
|
|
Shares outstanding -
diluted
|
|
|
34.9
|
|
|
|
35.5
|
|
|
|
37.8
|
|
|
|
35.9
|
|
|
|
38.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share
|
|
$
|
0.1825
|
|
|
$
|
0.18
|
|
|
$
|
0.15
|
|
|
$
|
0.5325
|
|
|
$
|
0.375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons shipped
(000)
|
|
|
478
|
|
|
|
496
|
|
|
|
512
|
|
|
|
1,493
|
|
|
|
1,564
|
|
|
Shipping
days
|
|
|
63
|
|
|
|
64
|
|
|
|
64
|
|
|
|
191
|
|
|
|
191
|
|
|
Average selling
price/ton
|
|
$
|
2,608
|
|
|
$
|
2,709
|
|
|
$
|
3,014
|
|
|
$
|
2,677
|
|
|
$
|
3,220
|
|
|
Gross
profit/ton
|
|
|
522
|
|
|
|
526
|
|
|
|
529
|
|
|
|
519
|
|
|
|
733
|
|
|
Operating
profit/ton
|
|
|
118
|
|
|
|
118
|
|
|
|
165
|
|
|
|
124
|
|
|
|
388
|
|
|
LIFO income per
ton
|
|
|
(70)
|
|
|
|
(18)
|
|
|
|
(41)
|
|
|
|
(26)
|
|
|
|
(59)
|
|
|
LIFO income
|
|
|
(33.4)
|
|
|
|
(9.0)
|
|
|
|
(21.1)
|
|
|
|
(38.4)
|
|
|
|
(92.7)
|
|
|
Depreciation and
amortization expense
|
|
|
13.6
|
|
|
|
15.1
|
|
|
|
14.5
|
|
|
|
42.4
|
|
|
|
42.5
|
|
|
Cash flow provided by
operating activities
|
|
|
79.3
|
|
|
|
115.3
|
|
|
|
151.6
|
|
|
|
275.0
|
|
|
|
319.6
|
|
|
Capital
expenditures
|
|
|
(22.4)
|
|
|
|
(46.3)
|
|
|
|
(28.4)
|
|
|
|
(96.5)
|
|
|
|
(71.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Schedule 1 for
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Schedule 2 for
EBITDA and Adjusted EBITDA reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Schedule 3 for
Adjusted EPS reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Schedule 4 for
Free Cash Flow reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Schedule 5 for
Fourth Quarter 2023 Guidance reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule
1
|
|
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(In millions, except
shares)
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2023
|
|
|
2022
|
|
|
Assets
|
|
(unaudited)
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
37.4
|
|
|
$
|
39.2
|
|
|
Restricted
cash
|
|
|
1.1
|
|
|
|
1.3
|
|
|
Receivables, less
provisions of $2.6 at September 30, 2023 and $3.2 at December 31,
2022
|
|
|
545.0
|
|
|
|
514.4
|
|
|
Inventories
|
|
|
699.0
|
|
|
|
798.5
|
|
|
Prepaid expenses and
other current assets
|
|
|
76.0
|
|
|
|
88.2
|
|
|
Total current
assets
|
|
|
1,358.5
|
|
|
|
1,441.6
|
|
|
Property, plant, and
equipment, at cost
|
|
|
1,010.7
|
|
|
|
898.6
|
|
|
Less: accumulated
depreciation
|
|
|
466.7
|
|
|
|
440.2
|
|
|
Property, plant, and
equipment, net
|
|
|
544.0
|
|
|
|
458.4
|
|
|
Operating lease
assets
|
|
|
321.1
|
|
|
|
240.5
|
|
|
Other intangible
assets
|
|
|
60.4
|
|
|
|
50.9
|
|
|
Goodwill
|
|
|
136.2
|
|
|
|
129.2
|
|
|
Deferred charges and
other assets
|
|
|
14.0
|
|
|
|
13.7
|
|
|
Total
assets
|
|
$
|
2,434.2
|
|
|
$
|
2,334.3
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
478.2
|
|
|
$
|
438.4
|
|
|
Salaries, wages, and
commissions
|
|
|
43.8
|
|
|
|
67.3
|
|
|
Other accrued
liabilities
|
|
|
71.5
|
|
|
|
77.7
|
|
|
Short-term
debt
|
|
|
5.9
|
|
|
|
5.8
|
|
|
Current portion of
operating lease liabilities
|
|
|
29.4
|
|
|
|
25.2
|
|
|
Current portion of
deferred employee benefits
|
|
|
4.8
|
|
|
|
4.8
|
|
|
Total current
liabilities
|
|
|
633.6
|
|
|
|
619.2
|
|
|
Long-term
debt
|
|
|
360.0
|
|
|
|
361.2
|
|
|
Deferred employee
benefits
|
|
|
110.9
|
|
|
|
118.0
|
|
|
Noncurrent operating
lease liabilities
|
|
|
295.4
|
|
|
|
215.1
|
|
|
Deferred income
taxes
|
|
|
130.7
|
|
|
|
113.5
|
|
|
Other noncurrent
liabilities
|
|
|
12.5
|
|
|
|
14.3
|
|
|
Total
liabilities
|
|
|
1,543.1
|
|
|
|
1,441.3
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Ryerson Holding
Corporation stockholders' equity:
|
|
|
|
|
|
|
|
Preferred stock, $0.01
par value; 7,000,000 shares authorized and no shares issued
at
September 30, 2023 and
December 31, 2022
|
|
|
—
|
|
|
|
—
|
|
|
Common stock, $0.01
par value; 100,000,000 shares authorized; 39,449,759 and
39,059,198
shares issued at
September 30, 2023 and December 31, 2022, respectively
|
|
|
0.4
|
|
|
|
0.4
|
|
|
Capital in excess of
par value
|
|
|
407.8
|
|
|
|
397.7
|
|
|
Retained
earnings
|
|
|
793.8
|
|
|
|
692.5
|
|
|
Treasury stock, at
cost - Common stock of 5,193,820 shares at September 30, 2023
and
2,070,654 shares at
December 31, 2022, respectively
|
|
|
(172.9)
|
|
|
|
(61.1)
|
|
|
Accumulated other
comprehensive loss
|
|
|
(146.3)
|
|
|
|
(144.4)
|
|
|
Total Ryerson Holding
Corporation Stockholders' Equity
|
|
|
882.8
|
|
|
|
885.1
|
|
|
Noncontrolling
interest
|
|
|
8.3
|
|
|
|
7.9
|
|
|
Total
Equity
|
|
|
891.1
|
|
|
|
893.0
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
2,434.2
|
|
|
$
|
2,334.3
|
|
|
Schedule
2
|
|
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
|
Reconciliations of
Net Income Attributable to Ryerson Holding Corporation to EBITDA
and Gross profit to Gross profit excluding LIFO
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
First Nine Months
Ended
|
|
|
|
Third
|
|
|
Second
|
|
|
Third
|
|
|
September
30,
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Ryerson Holding Corporation
|
|
$
|
35.0
|
|
|
$
|
37.6
|
|
|
$
|
55.1
|
|
|
$
|
119.9
|
|
|
$
|
415.1
|
|
|
Interest and other
expense on debt
|
|
|
9.3
|
|
|
|
8.3
|
|
|
|
7.6
|
|
|
|
25.2
|
|
|
|
26.2
|
|
|
Provision for income
taxes
|
|
|
12.9
|
|
|
|
12.1
|
|
|
|
20.5
|
|
|
|
39.8
|
|
|
|
142.3
|
|
|
Depreciation and
amortization expense
|
|
|
13.6
|
|
|
|
15.1
|
|
|
|
14.5
|
|
|
|
42.4
|
|
|
|
42.5
|
|
|
EBITDA
|
|
$
|
70.8
|
|
|
$
|
73.1
|
|
|
$
|
97.7
|
|
|
$
|
227.3
|
|
|
$
|
626.1
|
|
|
Gain on bargain
purchase
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.6)
|
|
|
|
—
|
|
|
|
(0.6)
|
|
|
Gain on sale of
assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3.8)
|
|
|
Reorganization
|
|
|
8.0
|
|
|
|
4.9
|
|
|
|
0.6
|
|
|
|
14.7
|
|
|
|
1.6
|
|
|
Foreign currency
transaction (gains) losses
|
|
|
(0.8)
|
|
|
|
1.3
|
|
|
|
0.5
|
|
|
|
0.4
|
|
|
|
1.2
|
|
|
Loss on retirement of
debt
|
|
|
—
|
|
|
|
—
|
|
|
|
1.5
|
|
|
|
—
|
|
|
|
21.3
|
|
|
Purchase consideration
and other transaction costs
|
|
|
0.3
|
|
|
|
0.4
|
|
|
|
—
|
|
|
|
1.0
|
|
|
|
—
|
|
|
Other
adjustments
|
|
|
0.1
|
|
|
|
(0.6)
|
|
|
|
(0.1)
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
Adjusted
EBITDA
|
|
$
|
78.4
|
|
|
$
|
79.1
|
|
|
$
|
99.6
|
|
|
$
|
243.6
|
|
|
$
|
646.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
78.4
|
|
|
$
|
79.1
|
|
|
$
|
99.6
|
|
|
$
|
243.6
|
|
|
$
|
646.0
|
|
|
LIFO income
|
|
|
(33.4)
|
|
|
|
(9.0)
|
|
|
|
(21.1)
|
|
|
|
(38.4)
|
|
|
|
(92.7)
|
|
|
Adjusted EBITDA,
excluding LIFO income
|
|
$
|
45.0
|
|
|
$
|
70.1
|
|
|
$
|
78.5
|
|
|
$
|
205.2
|
|
|
$
|
553.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,246.7
|
|
|
$
|
1,343.5
|
|
|
$
|
1,543.1
|
|
|
$
|
3,996.3
|
|
|
$
|
5,035.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
excluding LIFO income, as a percentage of net sales
|
|
|
3.6
|
%
|
|
|
5.2
|
%
|
|
|
5.1
|
%
|
|
|
5.1
|
%
|
|
|
11.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
|
249.3
|
|
|
$
|
260.9
|
|
|
$
|
271.0
|
|
|
$
|
774.4
|
|
|
$
|
1,147.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
20.0
|
%
|
|
|
19.4
|
%
|
|
|
17.6
|
%
|
|
|
19.4
|
%
|
|
|
22.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
|
249.3
|
|
|
$
|
260.9
|
|
|
$
|
271.0
|
|
|
$
|
774.4
|
|
|
$
|
1,147.0
|
|
|
LIFO income
|
|
|
(33.4)
|
|
|
|
(9.0)
|
|
|
|
(21.1)
|
|
|
|
(38.4)
|
|
|
|
(92.7)
|
|
|
Gross profit, excluding
LIFO income
|
|
$
|
215.9
|
|
|
$
|
251.9
|
|
|
$
|
249.9
|
|
|
$
|
736.0
|
|
|
$
|
1,054.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin, excluding
LIFO income
|
|
|
17.3
|
%
|
|
|
18.7
|
%
|
|
|
16.2
|
%
|
|
|
18.4
|
%
|
|
|
20.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: EBITDA represents
net income before interest and other expense on debt, provision for
income taxes, depreciation, and amortization. Adjusted EBITDA gives
further effect to, among other things, reorganization expenses,
gain on sales of assets, loss on retirement of debt, and foreign
currency transaction gains and losses. We believe that the
presentation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA,
excluding LIFO expense (income), provides useful information to
investors regarding our operational performance because they
enhance an investor's overall understanding of our core financial
performance and provide a basis of comparison of results between
current, past, and future periods. We also disclose the metric
Adjusted EBITDA, excluding LIFO expense (income), to provide a
means of comparison amongst our competitors who may not use the
same basis of accounting for inventories. EBITDA, Adjusted EBITDA,
and Adjusted EBITDA, excluding LIFO expense (income), are three of
the primary metrics management uses for planning and forecasting in
future periods, including trending and analyzing the core operating
performance of our business without the effect of U.S. generally
accepted accounting principles, or GAAP, expenses, revenues, and
gains (losses) that are unrelated to the day to day performance of
our business. We also establish compensation programs for our
executive management and regional employees that are based upon the
achievement of pre-established EBITDA, Adjusted EBITDA, and
Adjusted EBITDA, excluding LIFO expense (income), targets. We also
use EBITDA, Adjusted EBITDA, and Adjusted EBITDA, excluding LIFO
expense (income), to benchmark our operating performance to that of
our competitors. EBITDA, Adjusted EBITDA, and Adjusted EBITDA,
excluding LIFO expense (income), do not represent, and should not
be used as a substitute for, net income or cash flows from
operations as determined in accordance with generally accepted
accounting principles, and neither EBITDA, Adjusted EBITDA, and
Adjusted EBITDA, excluding LIFO expense (income), is necessarily an
indication of whether cash flow will be sufficient to fund our cash
requirements. This release also presents gross margin, excluding
LIFO expense (income), which is calculated as gross profit minus
LIFO expense (income), divided by net sales. We have excluded LIFO
expense from gross margin and Adjusted EBITDA as a percentage of
net sales metrics in order to provide a means of comparison amongst
our competitors who may not use the same basis of accounting for
inventories as we do. Our definitions of EBITDA, Adjusted EBITDA,
Adjusted EBITDA, excluding LIFO expense (income), gross margin,
excluding LIFO expense, and Adjusted EBITDA, excluding LIFO expense
(income), as a percentage of sales may differ from that of other
companies.
|
|
|
Schedule
3
|
|
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
|
Reconciliation of
Net Income to Adjusted Net Income and Adjusted Earnings per
Share
|
|
|
(Dollars and Shares
in Millions, Except Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
First Nine Months
Ended
|
|
|
|
Third
|
|
|
Second
|
|
|
Third
|
|
|
September
30,
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Ryerson Holding Corporation
|
|
$
|
35.0
|
|
|
$
|
37.6
|
|
|
$
|
55.1
|
|
|
$
|
119.9
|
|
|
$
|
415.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on bargain
purchase
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.6)
|
|
|
|
—
|
|
|
|
(0.6)
|
|
|
Gain on sale of
assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3.8)
|
|
|
Loss on retirement of
debt
|
|
|
—
|
|
|
|
—
|
|
|
|
1.5
|
|
|
|
—
|
|
|
|
21.3
|
|
|
Benefit for income
taxes
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
(4.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to Ryerson Holding Corporation
|
|
$
|
35.0
|
|
|
$
|
37.6
|
|
|
$
|
55.8
|
|
|
$
|
119.9
|
|
|
$
|
427.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share
|
|
$
|
1.00
|
|
|
$
|
1.06
|
|
|
$
|
1.48
|
|
|
$
|
3.34
|
|
|
$
|
11.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
diluted
|
|
|
34.9
|
|
|
|
35.5
|
|
|
|
37.8
|
|
|
|
35.9
|
|
|
|
38.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Adjusted net
income and Adjusted earnings per share is presented to provide a
means of comparison with periods that do not include similar
adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule
4
|
|
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
|
Cash Flow from
Operations to Free Cash Flow Yield
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
First Nine Months
Ended
|
|
|
|
Third
|
|
|
Second
|
|
|
Third
|
|
|
September
30,
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
79.3
|
|
|
$
|
115.3
|
|
|
$
|
151.6
|
|
|
$
|
275.0
|
|
|
$
|
319.6
|
|
|
Capital
expenditures
|
|
|
(22.4)
|
|
|
|
(46.3)
|
|
|
|
(28.4)
|
|
|
|
(96.5)
|
|
|
|
(71.2)
|
|
|
Proceeds from sales of
property, plant, and equipment
|
|
|
—
|
|
|
|
0.1
|
|
|
|
0.8
|
|
|
|
0.1
|
|
|
|
8.0
|
|
|
Free cash
flow
|
|
$
|
56.9
|
|
|
$
|
69.1
|
|
|
$
|
124.0
|
|
|
$
|
178.6
|
|
|
$
|
256.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market
capitalization
|
|
$
|
996.5
|
|
|
$
|
1,491.8
|
|
|
$
|
952.9
|
|
|
$
|
996.5
|
|
|
$
|
952.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
yield
|
|
|
5.7
|
%
|
|
|
4.6
|
%
|
|
|
13.0
|
%
|
|
|
17.9
|
%
|
|
|
26.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Market
capitalization is calculated using September 30, 2023, June 30,
2023, and September 30, 2022 stock prices and shares
outstanding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule
5
|
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
Reconciliation of
Fourth Quarter 2023 Net Income Attributable to Ryerson Holding
Corporation to Adj. EBITDA, excl. LIFO Guidance
|
|
(Dollars in
Millions, except Per Share Data)
|
|
|
Fourth Quarter
2023
|
|
|
Low
|
|
High
|
|
Net income attributable
to Ryerson Holding Corporation
|
|
$7
|
|
$8
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$0.18
|
|
$0.22
|
|
|
|
|
|
|
Interest and other
expense on debt
|
|
9
|
|
8
|
|
Provision for income
taxes
|
|
3
|
|
3
|
|
Depreciation and
amortization expense
|
|
15
|
|
15
|
|
EBITDA
|
|
$34
|
|
$34
|
|
Adjustments
|
|
6
|
|
6
|
|
Adjusted
EBITDA
|
|
$40
|
|
$40
|
|
LIFO income
|
|
(12)
|
|
(8)
|
|
Adjusted EBITDA,
excluding LIFO
|
|
$28
|
|
$32
|
|
|
|
|
|
|
Note: See the note
within Schedule 2 for a description of EBITDA and Adjusted
EBITDA.
|
|
|
|
|
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SOURCE Ryerson Holding Corporation