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Ryerson Reports Third Quarter 2024 Results

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Ryerson Holding (NYSE: RYI) reported Q3 2024 results with revenue of $1.13 billion from 485,000 tons shipped. The company incurred a net loss of $6.6 million, or $0.20 per diluted share. Key highlights include $134.6 million in operating cash flow and $103.4 million in free cash flow. The company returned $42.0 million to shareholders through share repurchases ($36.0 million) and dividends ($6.0 million). Ryerson reduced inventory by $80.8 million and ended the quarter with debt of $522 million and net debt of $487 million.

Ryerson Holding (NYSE: RYI) ha riportato i risultati del terzo trimestre 2024 con un fatturato di 1,13 miliardi di dollari derivante da 485.000 tonnellate spedite. L'azienda ha subito una perdita netta di 6,6 milioni di dollari, ovvero 0,20 dollari per azione diluita. I punti salienti includono un flusso di cassa operativo di 134,6 milioni di dollari e un flusso di cassa libero di 103,4 milioni di dollari. L'azienda ha restituito 42,0 milioni di dollari agli azionisti attraverso riacquisti di azioni (36,0 milioni di dollari) e dividendi (6,0 milioni di dollari). Ryerson ha ridotto l'inventario di 80,8 milioni di dollari e ha concluso il trimestre con un debito di 522 milioni di dollari e un debito netto di 487 milioni di dollari.

Ryerson Holding (NYSE: RYI) informó los resultados del tercer trimestre de 2024 con ingresos de 1,13 mil millones de dólares provenientes de 485,000 toneladas enviadas. La empresa tuvo una pérdida neta de 6,6 millones de dólares, o 0,20 dólares por acción diluida. Los aspectos destacados incluyen un flujo de efectivo operativo de 134,6 millones de dólares y un flujo de efectivo libre de 103,4 millones de dólares. La compañía devolvió 42,0 millones de dólares a los accionistas a través de recompra de acciones (36,0 millones de dólares) y dividendos (6,0 millones de dólares). Ryerson redujo su inventario en 80,8 millones de dólares y finalizó el trimestre con una deuda de 522 millones de dólares y una deuda neta de 487 millones de dólares.

라이어슨 홀딩 (NYSE: RYI)는 2024년 3분기 실적을 보고하며 11억 3천만 달러의 수익을 485,000톤의 출하량에서 달성했습니다. 회사는 660만 달러의 순손실을 기록했으며, 희석 주당 0.20달러에 해당합니다. 주요 하이라이트로는 1억 3천460만 달러의 운영 현금 흐름과 1억 340만 달러의 자유 현금 흐름이 있습니다. 회사는 자사주 매입(3,600만 달러)과 배당금(600만 달러)을 통해 주주에게 4,200만 달러를 반환했습니다. 라이어슨은 재고를 8천080만 달러 줄였으며, 분기를 마감할 때 부채가 5억 2천200만 달러와 순부채가 4억 8천700만 달러였습니다.

Ryerson Holding (NYSE: RYI) a rapporté les résultats du troisième trimestre 2024 avec un chiffre d'affaires de 1,13 milliard de dollars provenant de 485 000 tonnes expédiées. L'entreprise a enregistré une perte nette de 6,6 millions de dollars, soit 0,20 dollar par action diluée. Les points forts incluent un flux de trésorerie opérationnel de 134,6 millions de dollars et un flux de trésorerie libre de 103,4 millions de dollars. L'entreprise a restitué 42,0 millions de dollars aux actionnaires par le biais de rachats d'actions (36,0 millions de dollars) et de dividendes (6,0 millions de dollars). Ryerson a réduit son inventaire de 80,8 millions de dollars et a terminé le trimestre avec une dette de 522 millions de dollars et une dette nette de 487 millions de dollars.

Ryerson Holding (NYSE: RYI) berichtete über die Ergebnisse des dritten Quartals 2024 mit einem Umsatz von 1,13 Milliarden US-Dollar aus 485.000 verschifften Tonnen. Das Unternehmen erlitt einen Nettoverlust von 6,6 Millionen US-Dollar, was 0,20 US-Dollar pro verwässerter Aktie entspricht. Zu den wichtigsten Highlights gehören ein operativer Cashflow von 134,6 Millionen US-Dollar und ein freier Cashflow von 103,4 Millionen US-Dollar. Das Unternehmen gab 42,0 Millionen US-Dollar an die Aktionäre zurück, durch Aktienrückkäufe (36,0 Millionen US-Dollar) und Dividenden (6,0 Millionen US-Dollar). Ryerson reduzierte den Bestand um 80,8 Millionen US-Dollar und schloss das Quartal mit einer Verschuldung von 522 Millionen US-Dollar und einer Nettoverschuldung von 487 Millionen US-Dollar ab.

Positive
  • Generated strong operating cash flow of $134.6 million
  • Reduced inventory by $80.8 million
  • Returned $42.0 million to shareholders
  • Decreased total debt by $3 million quarter-over-quarter
Negative
  • Net loss of $6.6 million compared to $9.9 million profit in Q2 2024
  • Revenue decreased 8.1% quarter-over-quarter to $1.13 billion
  • Gross margin contracted to 17.9% from 18.2% in Q2 2024
  • Net leverage ratio increased to 3.8x, above target range of 0.5x-2.0x

Insights

The Q3 2024 results reveal significant challenges, with revenue declining 8.1% quarter-over-quarter to $1.13 billion and a net loss of $6.6 million. Key concerns include margin compression, with gross margins contracting 30 basis points to 17.9% and elevated net leverage at 3.8x, above the target range of 0.5x-2.0x.

However, there are positive indicators: strong operating cash flow of $134.6 million, successful working capital management with $129 million release and continued shareholder returns through dividends ($6.0 million) and share repurchases ($36.0 million). The company's cost reduction initiatives targeting $60 million in annualized savings show promise.

The outlook suggests continued pressure, with Q4 shipments expected to decrease 8-10% and projected loss per share of $0.47-0.53. The acquisition of Production Metals and facility modernization efforts position the company for future growth, though near-term headwinds persist.

Quarterly business highlights include operating cash flow of $134.6 million, Central Steel & Wire's University Park, IL distribution hub and service center open house, progress on expansion and modernization of the Shelbyville, KY non-ferrous processing center, closing of the Production Metals acquisition and entry into aerospace, defense, and semiconductor metals markets, and ongoing cost-reduction work across our North America service center network  

CHICAGO, Oct. 29, 2024 /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, 2024.

Highlights: 

  • Generated $1.13 billion of revenue from 485,000 tons shipped and average selling price of $2,323 per ton
  • Incurred Net Loss attributable to Ryerson Holding Corporation of $6.6 million, or Diluted Loss Per Share of $0.20 and Adjusted EBITDA1, excluding LIFO of $21.0 million as counter-cyclical and seasonal bottoming continues
  • Generated Operating Cash Flow of $134.6 million and Free Cash Flow of $103.4 million
  • Reduced inventory by $80.8 million on a FIFO cost basis2, compared to the second quarter of 2024
  • Returned $42.0 million to shareholders during the quarter, comprised of $36.0 million in share repurchases and $6.0 million in dividends
  • Ended the quarter with debt of $522 million and net debt3 of $487 million as of September 30, 2024, compared to $525 million and $497 million, respectively, on June 30, 2024
  • Progressing well towards $60 million of annualized cost reduction expectations from operating expenses4
  • Acquired Production Metals, a value-added processor of aluminum, stainless, and specialty steel
  • Hosted open house at Central Steel & Wire's University Park, IL distribution hub and service center for customers, suppliers, vendors, investors, and employees
  • Declared a fourth-quarter 2024 dividend of $0.1875 per share

 A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included below in this news release.

$ in millions, except tons (in thousands), average selling prices, and earnings per share




















Financial Highlights:


Q3 2024


Q2 2024


Q3 2023


QoQ


YoY


9MO 2024


9MO 2023


YoY


















Revenue


$1,126.6


$1,225.5


$1,246.7


(8.1) %


(9.6) %


$3,591.3


$3,996.3


(10.1) %

Tons shipped


485


508


478


(4.5) %


1.5 %


1,490


1,493


(0.2) %

Average selling price/ton


$2,323


$2,412


$2,608


(3.7) %


(10.9) %


$2,410


$2,677


(10.0) %

Gross margin


17.9 %


18.2 %


20.0 %


-30 bps


-210 bps


17.9 %


19.4 %


-150 bps

Gross margin, excl. LIFO


16.3 %


17.4 %


17.3 %


-110 bps


-100 bps


17.2 %


18.4 %


-120 bps

Warehousing, delivery, selling, general, and
administrative expenses


$196.9


$199.0


$193.0


(1.1) %


2.0 %


$612.7


$589.8


3.9 %

As a percentage of revenue


17.5 %


16.2 %


15.5 %


130 bps


200 bps


17.1 %


14.8 %


230 bps

Net income (loss) attributable to Ryerson Holding Corporation


$(6.6)


$9.9


$35.0


(166.7) %


(118.9) %


$(4.3)


$119.9


(103.6) %

Diluted earnings (loss) per share


$(0.20)


$0.29


$1.00


$(0.49)


$(1.20)


$(0.13)


$3.34


$(3.47)

Adjusted diluted earnings (loss) per share


$(0.20)


$0.33


$1.00


$(0.53)


$(1.20)


$(0.05)


$3.34


$(3.39)

Adj. EBITDA, excl. LIFO


$21.0


$42.6


$45.0


(50.7) %


(53.3) %


$103.8


$205.2


(49.4) %

Adj. EBITDA, excl. LIFO margin


1.9 %


3.5 %


3.6 %


-160 bps


-170 bps


2.9 %


5.1 %


-220 bps


















Balance Sheet and Cash Flow Highlights:

















Total debt


$522.1


$525.4


$365.9


(0.6) %


42.7 %


$522.1


$365.9


42.7 %

Cash and cash equivalents


$35.0


$28.0


$37.4


25.0 %


(6.4) %


$35.0


$37.4


(6.4) %

Net debt


$487.1


$497.4


$328.5


(2.1) %


48.3 %


$487.1


$328.5


48.3 %

Net debt / LTM Adj. EBITDA, excl. LIFO


3.8x


3.2x


1.4x


0.6x


2.4x


3.8x


1.4x


2.4x

Cash conversion cycle (days)


79.3


77.6


78.3


1.7


1.0


76.5


77.6


(1.1)

Net cash provided by operating activities


$134.6


$25.9


$79.3


$108.7


$55.3


$112.7


$275.0


$(162.3)

Management Commentary
Eddie Lehner, Ryerson's President, Chief Executive Officer, and Director, said, "I want to thank all my Ryerson teammates for working safely while striving to create an always improving Ryerson that delivers the industry's best customer experience safely, enjoyably, and productively. Two things can be true at the same time: 1) the industry is experiencing a cyclical bottoming marked by twenty-four months of moving average demand and price contraction; and 2) Ryerson's record investments in systems, capital expenditures, and acquisitions over this same period are positioning the company well for the next cyclical upturn. Over the third quarter we managed the business effectively through a contractionary industrial metals and manufacturing environment that produced compressed margins, most notably in carbon steels and across the commodity spectrum with lagging OEM customer contract price resets. Despite these challenges, we experienced improvements in key performance indicators including cash flow, expense and working capital management, and most importantly, we are seeing investment related growth pains and disruptions across our network beginning to subside as we move through the balance of 2024 with budding optimism for 2025. Ryerson has emerged more efficient and better through every previous counter-cycle and, looking forward, our optimization phase will bring together a greatly modernized service center network, enhanced value-added capabilities, across a digitally enabled enterprise to provide Ryerson's best-ever customer experience while setting the table for realization of our next stage financial targets."

Third Quarter Results
Ryerson generated net sales of $1.13 billion in the third quarter of 2024, a decrease of 8.1%, compared to the second quarter of 2024, and within our guidance expectations. Revenue performance during the quarter was impacted by seasonal and weather impacted volume declines of 4.5%, in addition to average selling prices decreasing 3.7%.

Gross margin contracted sequentially by 30 basis points to 17.9% in the third quarter of 2024, compared to 18.2% in the second quarter of 2024. Due to further declines in inventory costs, in the third quarter of 2024, LIFO income of $18 million was greater than our guidance expectations of LIFO income of $12 million. Excluding the impact of LIFO, gross margin contracted 110 basis points to 16.3% in the third quarter of 2024, compared to 17.4% in the second quarter. Gross margins continued to be under pressure in the quarter as demand conditions saw continuing contraction and selling price declines continued to outpace the decline in our average inventory costs.

Warehousing, delivery, selling, general and administrative expenses decreased 1.1%, or $2.1 million, to $196.9 million in the third quarter of 2024, compared to $199.0 million in the second quarter of 2024. Cost reductions were noted in personnel-related expenses, operating expenses, and general administrative expenses. Decreases in expenses were partially offset by increases in start-up, pre-operating, and reorganization expenses associated with Ryerson investments in capital expenditures and acquisitions.

Net Loss Attributable to Ryerson Holding Corporation for the third quarter of 2024 was $6.6 million, or $0.20 per diluted share, compared to net income of $9.9 million, or $0.29 per diluted share in the previous quarter. Ryerson generated Adjusted EBITDA, excluding LIFO, of $21.0 million in the third quarter of 2024, compared to the second quarter of 2024 Adjusted EBITDA, excluding LIFO of $42.6 million.

Liquidity & Debt Management
Ryerson generated $134.6 million of operating cash flow in the third quarter of 2024 due to a working capital release of $129 million. The Company ended the third quarter of 2024 with $522 million of debt and $487 million of net debt, sequential decreases of $3 million and $10 million, respectively, compared to the second quarter of 2024. Ryerson's net leverage ratio as of the third quarter of 2024 was 3.8x above the Company's target leverage range of 0.5x – 2.0x, but still well below Ryerson's prior 10-year average. Ryerson's global liquidity, composed of cash and cash equivalents and availability on its revolving credit facilities, decreased to $491 million as of September 30, 2024, compared to $585 million as of June 30, 2024.

Shareholder Return Activity

Dividends. On October 29, 2024, the Board of Directors declared a quarterly cash dividend of $0.1875 per share of common stock, payable on December 19, 2024, to stockholders of record as of December 5, 2024, unchanged from the prior quarter. During the third quarter of 2024, Ryerson's quarterly dividend amounted to a cash return of approximately $6.0 million

Share Repurchases and Authorization. Ryerson repurchased 1,849,017 shares for $36.0 million in the open market during the third quarter of 2024. Ryerson made these repurchases in accordance with its share repurchase authorization. As of September 30, 2024, $38.4 million remained under the existing authorization.

Outlook Commentary
For the fourth quarter of 2024, Ryerson expects customer shipments to seasonally and counter-cyclically decrease 8% to 10%, quarter-over-quarter. The Company anticipates fourth-quarter net sales to be in the range of $1.00 billion to $1.04 billion, with average selling prices between decreasing 1% to increasing 1%. LIFO income in the fourth quarter of 2024 is expected to be $10 million. We expect adjusted EBITDA, excluding LIFO in the range of $10 million to $12 million and loss per diluted share in the range of $0.53 to $0.47

Sales by Product Metrics
As we continue to integrate our acquisitions of the past eight quarters into our systems and processes, we have refined our methodology for allocating their net sales and tons to our major product categories. As such, in addition to the third quarter and the first nine months of 2024 product metrics provided here under the refined methodology, we are providing updated sales by product information from the first quarter of 2023 to the second quarter of 2024 to provide comparable numbers. We note that consolidated net sales, tons shipped, and average selling price per ton as previously reported are unchanged and that the updates below are only at the product level. 

Third Quarter 2024 Major Product Metrics







Net Sales (millions)



Q3 2024


Q2 2024



Q3 2023


Quarter-over-

quarter

Year-over-year












Carbon Steel

$

585

$

644


$

642


(9.2) %


(8.9) %


Aluminum

$

250

$

277


$

276


(9.7) %


(9.4) %


Stainless Steel

$

276

$

286


$

308


(3.5) %


(10.4) %
















Tons Shipped (thousands)



Q3 2024


Q2 2024



Q3 2023


Quarter-over-

quarter

Year-over-year












Carbon Steel


382


397



371


(3.8) %


3.0 %


Aluminum


44


49



48


(10.2) %


(8.3) %


Stainless Steel


58


59



57


(1.7) %


1.8 %
















Average Selling Prices (per ton)



Q3 2024


Q2 2024



Q3 2023


Quarter-over-

quarter

Year-over-year












Carbon Steel

$

1,531

$

1,622


$

1,730


(5.6) %


(11.5) %


Aluminum

$

5,682

$

5,653


$

5,750


0.5 %


(1.2) %


Stainless Steel

$

4,759

$

4,847


$

5,404


(1.8) %


(11.9) %


 

First Nine Months 2024 Major Product Metrics











Net Sales (millions)





2024



2023

Year-over-year












Carbon Steel


$

1,873


$

2,007


(6.7) %


Aluminum



$

806


$

889


(9.3) %


Stainless Steel


$

859


$

1,031


(16.7) %

















Tons Shipped (thousands)





2024



2023

Year-over-year












Carbon Steel



1,163



1,156


0.6 %


Aluminum




143



151


(5.3) %


Stainless Steel



178



179


(0.6) %

















Average Selling Prices (per ton)





2024



2023

Year-over-year












Carbon Steel


$

1,610


$

1,736


(7.2) %


Aluminum



$

5,636


$

5,887


(4.3) %


Stainless Steel


$

4,826


$

5,760


(16.2) %


 

Restated Major Product Metrics







































Net Sales (millions)



Q1 2023


Q2 2023


1H 2023


Q3 2023



9MO 2023


Q4 2023


2023


Q1 2024


Q2 2024


1H 2024























Carbon Steel

$

687

$

678

$

1,365

$

642


$

2,007

$

574

$

2,581

$

644

$

644

$

1,288

Aluminum

$

313

$

300

$

613

$

276


$

889

$

244

$

1,133

$

279

$

277

$

556

Stainless Steel

$

381

$

342

$

723

$

308


$

1,031

$

275

$

1,306

$

297

$

286

$

583
























Tons Shipped (thousands)



Q1 2023


Q2 2023


1H 2023


Q3 2023



9MO 2023


Q4 2023


2023


Q1 2024


Q2 2024


1H 2024























Carbon Steel


401


384


785


371



1,156


352


1,508


384


397


781

Aluminum


52


51


103


48



151


43


194


50


49


99

Stainless Steel


64


58


122


57



179


52


231


61


59


120
























Average Selling Prices (per ton)



Q1 2023


Q2 2023


1H 2023


Q3 2023



9MO 2023


Q4 2023


2023


Q1 2024


Q2 2024


1H 2024























Carbon Steel

$

1,713

$

1,766

$

1,739

$

1,730


$

1,736

$

1,631

$

1,712

$

1,677

$

1,622

$

1,649

Aluminum

$

6,019

$

5,882

$

5,951

$

5,750


$

5,887

$

5,674

$

5,840

$

5,580

$

5,653

$

5,616

Stainless Steel

$

5,953

$

5,897

$

5,926

$

5,404


$

5,760

$

5,288

$

5,654

$

4,869

$

4,847

$

4,858

Earnings Call Information
Ryerson will host a conference call to discuss third quarter 2024 financial results for the period ended September 30, 2024, on Wednesday, October 30, 2024, 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 and over 110 locations. Visit Ryerson at www.ryerson.com.

Notes:
1For EBITDA, Adjusted EBITDA and Adjusted EBITDA excluding LIFO please see Schedule 2
2FIFO cost basis is inventory cost excluding LIFO
3Net debt is defined as long term debt plus short term debt less cash and cash equivalents and excludes restricted cash
4Operating expenses are Warehousing, delivery, selling, general, and administrative expenses

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; 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 influence of a single investor group over our policies and procedures; 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 most recent our annual report on Form 10-K 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)




















2024



2023



First Nine Months Ended




Third



Second



Third



September 30,




Quarter



Quarter



Quarter



2024



2023


















NET SALES


$

1,126.6



$

1,225.5



$

1,246.7



$

3,591.3



$

3,996.3


Cost of materials sold



924.6




1,002.0




997.4




2,948.2




3,221.9


Gross profit



202.0




223.5




249.3




643.1




774.4


Warehousing, delivery, selling, general, and administrative



196.9




199.0




193.0




612.7




589.8


Gain on insurance settlement



(1.3)










(1.3)





Restructuring and other charges



1.1




1.7







2.8





OPERATING PROFIT



5.3




22.8




56.3




28.9




184.6


Other income and (expense), net



(0.2)




1.8




1.2




1.4




0.8


Interest and other expense on debt



(11.5)




(11.3)




(9.3)




(32.9)




(25.2)


INCOME (LOSS) BEFORE INCOME TAXES



(6.4)




13.3




48.2




(2.6)




160.2


Provision (benefit) for income taxes



(0.4)




3.0




12.9




0.5




39.8


NET INCOME (LOSS)



(6.0)




10.3




35.3




(3.1)




120.4


Less: Net income attributable to noncontrolling interest



0.6




0.4




0.3




1.2




0.5


NET INCOME (LOSS) ATTRIBUTABLE TO RYERSON HOLDING CORPORATION


$

(6.6)



$

9.9



$

35.0



$

(4.3)



$

119.9


EARNINGS (LOSS) PER SHARE
















Basic


$

(0.20)



$

0.29



$

1.02



$

(0.13)



$

3.40


Diluted


$

(0.20)



$

0.29



$

1.00



$

(0.13)



$

3.34


Shares outstanding - basic



32.7




34.2




34.3




33.6




35.2


Shares outstanding - diluted



32.7




34.4




34.9




33.6




35.9


















Dividends declared per share


$

0.1875



$

0.1875



$

0.1825



$

0.5625



$

0.5325


















Supplemental Data :
















Tons shipped  (000)



485




508




478




1,490




1,493


Shipping days



64




64




63




192




191


Average selling price/ton


$

2,323



$

2,412



$

2,608



$

2,410



$

2,677


Gross profit/ton



416




440




522




432




519


Operating profit/ton



11




45




118




19




124


LIFO income per ton



(37)




(20)




(70)




(18)




(26)


LIFO income



(18.1)




(10.0)




(33.4)




(27.1)




(38.4)


Depreciation and amortization expense



19.5




18.0




13.6




54.9




42.4


Cash flow provided by operating activities



134.6




25.9




79.3




112.7




275.0


Capital expenditures



(31.6)




(22.7)




(22.4)




(76.1)




(96.5)


















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 2024 Guidance reconciliation











 

Schedule 1

RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Balance Sheets

(In millions, except shares)








September 30,


December 31,



2024


2023

Assets


(unaudited)



Current assets:





Cash and cash equivalents


$35.0


$54.3

Restricted cash


1.8


1.1

Receivables, less provisions of $3.0 at September 30, 2024 and $1.7 at December 31, 2023


499.7


467.7

Inventories


681.4


782.5

Prepaid expenses and other current assets


83.5


77.8

Total current assets


1,301.4


1,383.4

Property, plant, and equipment, at cost


1,134.8


1,071.5

Less: accumulated depreciation


499.7


481.9

Property, plant, and equipment, net


635.1


589.6

Operating lease assets


348.4


349.4

Other intangible assets


71.0


73.7

Goodwill


160.2


157.8

Deferred charges and other assets


17.2


15.7

Total assets


$2,533.3


$2,569.6

Liabilities





Current liabilities:





Accounts payable


$443.9


$463.4

Salaries, wages, and commissions


35.7


51.9

Other accrued liabilities


68.0


75.9

Short-term debt


1.8


8.2

Current portion of operating lease liabilities


31.7


30.5

Current portion of deferred employee benefits


4.0


4.0

Total current liabilities


585.1


633.9

Long-term debt


520.3


428.3

Deferred employee benefits


97.4


106.7

Noncurrent operating lease liabilities


338.0


336.8

Deferred income taxes


135.8


135.5

Other noncurrent liabilities


14.7


13.9

Total liabilities


1,691.3


1,655.1

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, 2024 and December 31, 2023



Common stock, $0.01 par value; 100,000,000 shares authorized; 39,896,148 and 39,450,659

shares issued at September 30, 2024 and December 31, 2023, respectively


0.4


0.4

Capital in excess of par value


422.7


411.6

Retained earnings


789.9


813.2

Treasury stock, at cost - Common stock of 8,051,226 shares at September 30, 2024 and 5,413,434

shares at December 31, 2023


(234.4)


(179.3)

Accumulated other comprehensive loss


(145.7)


(140.0)

Total Ryerson Holding Corporation Stockholders' Equity


832.9


905.9

Noncontrolling interest


9.1


8.6

Total Equity


842.0


914.5

Total Liabilities and Stockholders' Equity


$2,533.3


$2,569.6

 

Schedule 2


RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES


Reconciliations of Net Income (Loss) Attributable to Ryerson Holding Corporation to EBITDA and Gross profit to Gross profit excluding LIFO


(Dollars in millions)




















2024



2023



First Nine Months Ended




Third



Second



Third



September 30,




Quarter



Quarter



Quarter



2024



2023


















Net income (loss) attributable to Ryerson Holding Corporation


$

(6.6)



$

9.9



$

35.0



$

(4.3)



$

119.9


Interest and other expense on debt



11.5




11.3




9.3




32.9




25.2


Provision (benefit) for income taxes



(0.4)




3.0




12.9




0.5




39.8


Depreciation and amortization expense



19.5




18.0




13.6




54.9




42.4


EBITDA


$

24.0



$

42.2



$

70.8



$

84.0



$

227.3


Gain on insurance settlement



(1.3)










(1.3)





Reorganization



15.8




12.7




8.0




48.6




14.7


Pension settlement loss












2.2





Benefit plan curtailment gain












(0.3)





Foreign currency transaction (gains) losses



0.6




(0.4)




(0.8)




(1.0)




0.4


Purchase consideration and other transaction costs (credits)



(0.4)




(1.1)




0.3




(1.4)




1.0


Other adjustments



0.4




(0.8)




0.1




0.1




0.2


Adjusted EBITDA


$

39.1



$

52.6



$

78.4



$

130.9



$

243.6


















Adjusted EBITDA


$

39.1



$

52.6



$

78.4



$

130.9



$

243.6


LIFO income



(18.1)




(10.0)




(33.4)




(27.1)




(38.4)


Adjusted EBITDA, excluding LIFO income


$

21.0



$

42.6



$

45.0



$

103.8



$

205.2


















Net sales


$

1,126.6



$

1,225.5



$

1,246.7



$

3,591.3



$

3,996.3


















Adjusted EBITDA, excluding LIFO income, as a percentage of net sales



1.9

%



3.5

%



3.6

%



2.9

%



5.1

%

















Gross profit


$

202.0



$

223.5



$

249.3



$

643.1



$

774.4


















Gross margin



17.9

%



18.2

%



20.0

%



17.9

%



19.4

%

















Gross profit


$

202.0



$

223.5



$

249.3



$

643.1



$

774.4


LIFO income



(18.1)




(10.0)




(33.4)




(27.1)




(38.4)


Gross profit, excluding LIFO income


$

183.9



$

213.5



$

215.9



$

616.0



$

736.0


















Gross margin, excluding LIFO income



16.3

%



17.4

%



17.3

%



17.2

%



18.4

%

















Note: EBITDA represents net income (loss) before interest and other expense on debt, provision (benefit) for income taxes, depreciation, and amortization. Adjusted EBITDA gives further effect to, among other things, reorganization expenses, gain on insurance settlement, pension settlement loss, benefit plan curtailment gain, 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 (income), 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 (Loss) to Adjusted Net Income (Loss) and Adjusted Earnings (Loss) per Share


(Dollars and Shares in Millions, Except Per Share Data)




















2024



2023



First Nine Months Ended




Third



Second



Third



September 30,




Quarter



Quarter



Quarter



2024



2023


















Net income (loss) attributable to Ryerson Holding Corporation


$

(6.6)



$

9.9



$

35.0



$

(4.3)



$

119.9


















Gain on insurance settlement



(1.3)










(1.3)





Restructuring and other charges



1.1




1.7







2.8





Pension settlement loss












2.2





Benefit plan curtailment gain












(0.3)





Provision (benefit) for income taxes



0.1




(0.4)







(0.8)





















Adjusted net income (loss) attributable to Ryerson Holding Corporation


$

(6.7)



$

11.2



$

35.0



$

(1.7)



$

119.9


















Adjusted diluted earnings (loss) per share


$

(0.20)



$

0.33



$

1.00



$

(0.05)



$

3.34


















Shares outstanding - diluted



32.7




34.4




34.9




33.6




35.9


















Note: Adjusted net income (loss) and Adjusted earnings (loss) 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)




















2024



2023



First Nine Months Ended




Third



Second



Third



September 30,




Quarter



Quarter



Quarter



2024



2023


















Net cash provided by operating activities


$

134.6



$

25.9



$

79.3



$

112.7



$

275.0


Capital expenditures



(31.6)




(22.7)




(22.4)




(76.1)




(96.5)


Proceeds from sales of property, plant, and equipment



0.4




0.1







1.9




0.1


Free cash flow


$

103.4



$

3.3



$

56.9



$

38.5



$

178.6


















Market capitalization


$

634.0



$

657.0



$

996.5



$

634.0



$

996.5


















Free cash flow yield



16.3

%



0.5

%



5.7

%



6.1

%



17.9

%

















Note: Market capitalization is calculated using September 30, 2024, June 30, 2024, and September 30, 2023 stock prices and shares outstanding.





 

Schedule 5

RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES

Reconciliation of Fourth Quarter 2024 Net Income Attributable to Ryerson Holding Corporation to Adj. EBITDA, excl. LIFO Guidance

(Dollars in Millions, except Per Share Data)



Fourth Quarter 2024



Low


High

Net loss attributable to Ryerson Holding Corporation


$(17)


$(16)






Diluted loss per share


$(0.53)


$(0.47)






Interest and other expense on debt


10


10

Benefit for income taxes


(6)


(5)

Depreciation and amortization expense


19


19

EBITDA


$6


$8

Adjustments


14


14

Adjusted EBITDA


$20


$22

LIFO income


(10)


(10)

Adjusted EBITDA, excluding LIFO


$10


$12






Note: See the note within Schedule 2 for a description of EBITDA and Adjusted EBITDA.





 

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SOURCE Ryerson Holding Corporation

FAQ

What was Ryerson's (RYI) revenue in Q3 2024?

Ryerson (RYI) generated revenue of $1.13 billion in Q3 2024, representing an 8.1% decrease from Q2 2024.

How much cash did Ryerson (RYI) return to shareholders in Q3 2024?

Ryerson (RYI) returned $42.0 million to shareholders in Q3 2024, consisting of $36.0 million in share repurchases and $6.0 million in dividends.

What was Ryerson's (RYI) net income/loss for Q3 2024?

Ryerson (RYI) reported a net loss of $6.6 million, or $0.20 per diluted share, in Q3 2024.

RYERSON HOLDING CORPORATION

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Metal Fabrication
Wholesale-metals Service Centers & Offices
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United States of America
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