Ryerson Reports Third Quarter Results
Ryerson Holding Corporation (NYSE: RYI) reported Q3 2020 revenues of $832 million, an increase of 7.7% sequentially, despite a 24.7% decline year-over-year. The company reduced net debt by over $100 million to $692 million, marking the lowest level in over a decade. Adjusted earnings per diluted share reached $0.31, compared to a loss of $0.64 in Q2 2020. However, a net loss of $39.9 million was recorded, influenced by a pension settlement charge. Cash flow from operations increased to $121 million, illustrating effective cash management. Ryerson did not provide guidance for Q4 2020 due to ongoing pandemic uncertainties.
- Revenues increased 8% sequentially to $832 million.
- Net debt reduced by over $100 million to $692 million, the lowest in 10 years.
- Adjusted earnings per share improved to $0.31 from a loss of $0.64 in Q2 2020.
- Generated $121 million in cash flow from operations, up from $103 million in Q2.
- Net loss of $39.9 million, or $1.05 per diluted share, down from $10.1 million net income in Q3 2019.
- Revenues down 24.7% year-over-year from $1.104 billion in Q3 2019.
- Average selling prices decreased by 8% compared to Q3 2019.
CHICAGO, Oct. 28, 2020 /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, 2020.
Q3 2020 Highlights:
- Successfully executing upon our dual mandate pandemic response plan to safeguard the health and safety of our employees and to preserve the liquidity and recovery capacity of the Company.
- Revenues increased 8 percent sequentially while operating expenses increased 1 percent sequentially.
- Inventory turns improved by 17.4 days, or 20 percent sequentially, and by 8.7 days or by 11 percent year-over-year.
- Generated
$121 million in cash flow from operations, up from$103 million in the second quarter, bringing year-to-date cash flows from operations to$297 million . - Reduced net debt by over
$100 million to$692 million as of September 30th, again achieving our lowest net debt level in over 10 years. - Announced the redemption of
$50 million of our Senior Secured Notes due 2028, the first exercise of one of our optional redemption terms secured during the refinancing of our 2022 Notes in July. - Further reduced our pension exposure through the annuitization of nearly
$100 million of pension liabilities, which is expected to yield approximately$8 million in economic savings on a net present value basis. - Achieved Adjusted EBITDA, excluding LIFO of
$31 million , an increase of$11 million compared to the second quarter on higher volumes, improved pricing, and effective expense management. - Generated loss per diluted share of
$1.05 , but achieved adjusted earnings per diluted share of$0.31 excluding one-time non-recurring and non-operating items.
$ in millions, tons in thousands except average selling prices and EPS | |||||||||||||||||||||||||||
Financial Highlights: | Q3 2020 | Q2 2020 | Q3 2019 | QoQ | YoY | YTD | YTD | YoY | |||||||||||||||||||
Tons Shipped | 489 | 462 | 598 | 5.8 | % | (18.2) | % | 1,517 | 1,840 | (17.6) | % | ||||||||||||||||
Revenues | $ | 831.5 | $ | 771.8 | $ | 1,104.4 | 7.7 | % | (24.7) | % | $ | 2,613.6 | $ | 3,540.1 | (26.2) | % | |||||||||||
Average selling prices | $ | 1,700 | $ | 1,671 | $ | 1,847 | 1.7 | % | (8.0) | % | $ | 1,723 | $ | 1,924 | (10.4) | % | |||||||||||
Gross Margin, excl. LIFO | 16.7 | % | 16.8 | % | 15.8 | % | (10 bps) | 90 bps | 17.0 | % | 16.5 | % | 50 bps | ||||||||||||||
Warehousing, delivery, general, & | $ | 125.4 | $ | 124.1 | $ | 165.6 | 1.0 | % | (24.3) | % | $ | 405.2 | $ | 493.9 | (18.0) | % | |||||||||||
As a percentage of revenue | 15.1 | % | 16.1 | % | 15.0 | % | (100 bps) | 10 bps | 15.5 | % | 14.0 | % | 160 bps | ||||||||||||||
Adjusted net income (loss) | $ | 11.9 | $ | (24.2) | $ | 9.2 | $ | 3.5 | $ | 56.3 | |||||||||||||||||
Diluted adjusted earnings (loss) per share | $ | 0.31 | $ | (0.64) | $ | 0.24 | $ | 0.09 | $ | 1.49 | |||||||||||||||||
Adj. EBITDA, excl. LIFO | $ | 31.4 | $ | 20.6 | $ | 29.5 | 52.4 | % | 6.4 | % | $ | 86.4 | $ | 143.2 | (39.7) | % | |||||||||||
As a percentage of revenue | 3.8 | % | 2.7 | % | 2.7 | % | 110 bps | 110 bps | 3.3 | % | 4.0 | % | (70 bps) | ||||||||||||||
Balance Sheet and Cash Flow Highlights: | |||||||||||||||||||||||||||
Net debt | $ | 692 | $ | 793 | $ | 1,017 | (12.7) | % | (31.9) | % | $ | 692 | $ | 1,017 | (31.9) | % | |||||||||||
Net debt / LTM Adj. EBITDA, excl. LIFO | 5.2 | x | 6.0 | x | 5.2 | x | (0.8) | x | — | 5.2 | x | 5.2 | x | — | |||||||||||||
Days of supply | 67.7 | 85.1 | 76.4 | (17.4) | (8.7) | 74.8 | 74.9 | (0.1) | |||||||||||||||||||
Net cash provided by operating activities | $ | 120.6 | $ | 103.3 | $ | 82.5 | $ | 17.3 | $ | 38.1 | $ | 296.7 | $ | 130.5 | $ | 166.2 | |||||||||||
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 my Ryerson teammates, our customers, our suppliers and all essential workers as we continue to cohere and persevere together through the ongoing COVID-19 pandemic despite the omnipresent challenges and uncertainties in our communities and throughout the world during this public health crisis and resultant adverse economic impacts. Let me take a moment to recognize and summarize what Ryerson accomplished during the third quarter against tough odds in furthering our advancement as an organization. First and foremost, we looked after the safety, health, and well-being of our employees, customers, suppliers, and communities. We continued our work in pursuit of greater opportunity and social justice with care, commitment, and shared purpose. And, we notably improved our overall financial condition through a series of important accomplishments. We refinanced our long-term debt and triggered our first optional redemption feature decreasing annual cash interest expense by approximately
Third Quarter Results
Ryerson achieved revenues of
In the third quarter of 2020, warehousing, delivery, selling, general, and administrative expenses remained largely flat on higher volumes, up by only
Net loss attributable to Ryerson Holding Corporation was
Nine Months Ended September 30, 2020, Financial Results
Revenues in the first nine months of 2020 were
Liquidity & Debt Management
Ryerson's strong and responsive working capital management was clearly illustrated in the third quarter as the Company decreased inventory days of supply in-line with the market environment to 68 days, compared to 85 days at the end of the second quarter and 76 days at the end of the third quarter of 2019. The Company's gap between the third quarter receivables and payables cycles also decreased sequentially, contributing to a cash conversion cycle of 70 days for the period, compared to 91 days for the second quarter and 80 days for the year-ago period.
Ryerson generated
Molly Kannan, Controller and Chief Accounting Officer, said, "In the third quarter of 2020, we continued to execute on our COVID-19 policies by managing working capital and operating expenses exceedingly well, generating significant cash from operating activities and reducing net debt to historic levels. Additionally, we were pleased to announce the redemption of
Outlook Commentary
Given the many pandemic induced uncertainties expected to continue through the balance of the year, the Company will not provide guidance for the fourth quarter ending December 31, 2020. We do note, however, that through the first several weeks of the fourth quarter, per day trends in revenue, gross margin, average selling prices, and volumes are moving higher relative to the third quarter as industrial metal commodity price drivers have improved along with restocking driven demand across a greater number of end markets.
Third Quarter 2020 Major Product Metrics | ||||||||||||||||||||||
Tons Shipped (thousands) | Average Selling Prices | |||||||||||||||||||||
Q3 2020 | Q2 2020 | Q3 2019 | Quarter-over- | Year-over- | Quarter-over- | Year-over- | ||||||||||||||||
Carbon Steel | 377 | 361 | 461 | 4.4 | % | (18.2) | % | (2.1) | % | (11.5) | % | |||||||||||
Aluminum | 49 | 40 | 59 | 22.5 | % | (16.9) | % | (0.4) | % | (9.5) | % | |||||||||||
Stainless Steel | 63 | 59 | 76 | 6.8 | % | (17.1) | % | 0.8 | % | (1.6) | % | |||||||||||
Net Sales (millions) | ||||||||||||||||||||||
Q3 2020 | Q2 2020 | Q3 2019 | Quarter-over- | Year-over- | ||||||||||||||||||
Carbon Steel | $ | 411 | $ | 402 | $ | 568 | 2.2 | % | (27.6) | % | ||||||||||||
Aluminum | $ | 194 | $ | 159 | $ | 258 | 22.0 | % | (24.8) | % | ||||||||||||
Stainless Steel | $ | 212 | $ | 197 | $ | 260 | 7.6 | % | (18.5) | % | ||||||||||||
First Nine Months 2020 Major Product Metrics | |||||||||||||
Tons Shipped (thousands) | Average Selling Prices | ||||||||||||
YTD 2020 | YTD 2019 | Year-over-year | Year-over-year | ||||||||||
Carbon Steel | 1,172 | 1,419 | (17.4) | % | (13.8) | % | |||||||
Aluminum | 141 | 178 | (20.8) | % | (10.1) | % | |||||||
Stainless Steel | 199 | 236 | (15.7) | % | (2.5) | % | |||||||
Net Sales (millions) | |||||||||||||
YTD 2020 | YTD 2019 | Year-over-year | |||||||||||
Carbon Steel | $ | 1,324 | $ | 1,859 | (28.8) | % | |||||||
Aluminum | $ | 573 | $ | 805 | (28.8) | % | |||||||
Stainless Steel | $ | 672 | $ | 817 | (17.7) | % | |||||||
Earnings Call Information
Ryerson will host a conference call to discuss its third quarter results Thursday, October 29, 2020 at 10 a.m. Eastern Time. Participants may access the conference call by dialing (866) 269-4260 (U.S. & Canada) / (856) 344-9206 (International) and using conference ID 5043925. 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 3,900 employees in approximately 100 locations. Visit Ryerson at www.ryerson.com.
Safe Harbor Provision
Certain statements made in this presentation 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; fluctuating metal prices; our substantial 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; impacts and implications of adverse health events, including the COVID-19 pandemic; work stoppages; obligations under certain employee retirement benefit plans; the ownership of a majority of our equity securities by a single investor group; 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, 2019, 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) | ||||||||||||||||||||||
2020 | 2019 | First Nine Months Ended | ||||||||||||||||||||
Third | Second | Third | September 30, | |||||||||||||||||||
Quarter | Quarter | Quarter | 2020 | 2019 | ||||||||||||||||||
NET SALES | $ | 831.5 | $ | 771.8 | $ | 1,104.4 | $ | 2,613.6 | $ | 3,540.1 | ||||||||||||
Cost of materials sold | 675.6 | 656.3 | 900.0 | 2,146.4 | 2,892.6 | |||||||||||||||||
Gross profit | 155.9 | 115.5 | 204.4 | 467.2 | 647.5 | |||||||||||||||||
Warehousing, delivery, selling, general, and | 125.4 | 124.1 | 165.6 | 405.2 | 493.9 | |||||||||||||||||
Gain on insurance settlement | — | — | (1.5) | — | (1.5) | |||||||||||||||||
Restructuring and other charges | 0.2 | 2.0 | 0.3 | 2.2 | 1.7 | |||||||||||||||||
OPERATING PROFIT (LOSS) | 30.3 | (10.6) | 40.0 | 59.8 | 153.4 | |||||||||||||||||
Other income and (expense), net (1) | (69.1) | (0.1) | (0.3) | (68.3) | (1.3) | |||||||||||||||||
Interest and other expense on debt | (20.2) | (19.3) | (23.2) | (61.2) | (71.0) | |||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (59.0) | (30.0) | 16.5 | (69.7) | 81.1 | |||||||||||||||||
Provision (benefit) for income taxes | (19.3) | (4.5) | 6.3 | (20.9) | 24.8 | |||||||||||||||||
NET INCOME (LOSS) | (39.7) | (25.5) | 10.2 | (48.8) | 56.3 | |||||||||||||||||
Less: Net income attributable to noncontrolling interest | 0.2 | 0.1 | 0.1 | 0.3 | 0.3 | |||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO | $ | (39.9) | $ | (25.6) | $ | 10.1 | $ | (49.1) | $ | 56.0 | ||||||||||||
EARNINGS (LOSS) PER SHARE | ||||||||||||||||||||||
Basic | $ | (1.05) | $ | (0.67) | $ | 0.27 | $ | (1.29) | $ | 1.49 | ||||||||||||
Diluted | $ | (1.05) | $ | (0.67) | $ | 0.27 | $ | (1.29) | $ | 1.48 | ||||||||||||
Shares outstanding - basic | 38.1 | 38.1 | 37.8 | 38.0 | 37.7 | |||||||||||||||||
Shares outstanding - diluted | 38.1 | 38.1 | 38.0 | 38.0 | 37.9 | |||||||||||||||||
Supplemental Data : | ||||||||||||||||||||||
Tons shipped (000) | 489 | 462 | 598 | 1,517 | 1,840 | |||||||||||||||||
Shipping days | 64 | 64 | 64 | 192 | 191 | |||||||||||||||||
Average selling price/ton | $ | 1,700 | $ | 1,671 | $ | 1,847 | $ | 1,723 | $ | 1,924 | ||||||||||||
Gross profit/ton | 319 | 250 | 342 | 308 | 352 | |||||||||||||||||
Operating profit (loss)/ton | 62 | (23) | 67 | 39 | 83 | |||||||||||||||||
LIFO expense (income) per ton | (35) | 31 | (49) | (15) | (34) | |||||||||||||||||
LIFO expense (income) | (16.9) | 14.1 | (29.6) | (23.0) | (62.6) | |||||||||||||||||
Depreciation and amortization expense | 13.6 | 13.6 | 15.6 | 40.5 | 44.3 | |||||||||||||||||
Cash flow provided by operating activities | 120.6 | 103.3 | 82.5 | 296.7 | 130.5 | |||||||||||||||||
Capital expenditures | (6.1) | (4.9) | (9.1) | (17.9) | (32.5) | |||||||||||||||||
(1) The third quarter and the first nine months of 2020 includes a | ||||||||||||||||||||||
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 | ||||||||||||||||||||||
Schedule 1 | |||||||||||||||||||||||||||
RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES | |||||||||||||||||||||||||||
Condensed Consolidated Balance Sheets | |||||||||||||||||||||||||||
(In millions, except shares) | |||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||
Assets | (unaudited) | ||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 121.8 | $ | 11.0 | |||||||||||||||||||||||
Restricted cash | 1.1 | 48.8 | |||||||||||||||||||||||||
Receivables, less provisions of | 396.5 | 425.1 | |||||||||||||||||||||||||
Inventories | 572.6 | 742.9 | |||||||||||||||||||||||||
Prepaid expenses and other current assets | 46.3 | 52.2 | |||||||||||||||||||||||||
Total current assets | 1,138.3 | 1,280.0 | |||||||||||||||||||||||||
Property, plant, and equipment, at cost | 814.6 | 806.5 | |||||||||||||||||||||||||
Less: accumulated depreciation | 392.9 | 366.8 | |||||||||||||||||||||||||
Property, plant, and equipment, net | 421.7 | 439.7 | |||||||||||||||||||||||||
Operating lease assets | 112.3 | 128.2 | |||||||||||||||||||||||||
Other intangible assets | 44.9 | 50.6 | |||||||||||||||||||||||||
Goodwill | 120.3 | 120.3 | |||||||||||||||||||||||||
Deferred charges and other assets | 2.6 | 2.7 | |||||||||||||||||||||||||
Total assets | $ | 1,840.1 | $ | 2,021.5 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||
Accounts payable | $ | 351.1 | $ | 311.5 | |||||||||||||||||||||||
Salaries, wages, and commissions | 36.0 | 35.3 | |||||||||||||||||||||||||
Other accrued liabilities | 54.7 | 68.0 | |||||||||||||||||||||||||
Short-term debt | 9.1 | 49.2 | |||||||||||||||||||||||||
Current portion of operating lease liabilities | 20.9 | 20.9 | |||||||||||||||||||||||||
Current portion of deferred employee benefits | 7.0 | 7.0 | |||||||||||||||||||||||||
Total current liabilities | 478.8 | 491.9 | |||||||||||||||||||||||||
Long-term debt | 804.9 | 932.6 | |||||||||||||||||||||||||
Deferred employee benefits | 249.7 | 217.5 | |||||||||||||||||||||||||
Noncurrent operating lease liabilities | 97.1 | 112.8 | |||||||||||||||||||||||||
Deferred income taxes | 56.6 | 65.2 | |||||||||||||||||||||||||
Other noncurrent liabilities | 21.3 | 22.9 | |||||||||||||||||||||||||
Total liabilities | 1,708.4 | 1,842.9 | |||||||||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||
Ryerson Holding Corporation stockholders' equity: | |||||||||||||||||||||||||||
Preferred stock, | — | — | |||||||||||||||||||||||||
Common stock, | 0.4 | 0.4 | |||||||||||||||||||||||||
Capital in excess of par value | 382.6 | 381.2 | |||||||||||||||||||||||||
Retained earnings | 50.5 | 99.6 | |||||||||||||||||||||||||
Treasury stock, at cost - Common stock of 212,500 shares in 2020 and 2019 | (6.6) | (6.6) | |||||||||||||||||||||||||
Accumulated other comprehensive loss | (301.2) | (302.0) | |||||||||||||||||||||||||
Total Ryerson Holding Corporation Stockholders' Equity | 125.7 | 172.6 | |||||||||||||||||||||||||
Noncontrolling interest | 6.0 | 6.0 | |||||||||||||||||||||||||
Total Equity | 131.7 | 178.6 | |||||||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,840.1 | $ | 2,021.5 | |||||||||||||||||||||||
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) | |||||||||||||||||||||||||||
2020 | 2019 | First Nine Months Ended | |||||||||||||||||||||||||
Third | Second | Third | September 30, | ||||||||||||||||||||||||
Quarter | Quarter | Quarter | 2020 | 2019 | |||||||||||||||||||||||
Net income (loss) attributable to Ryerson Holding Corporation | $ | (39.9) | $ | (25.6) | $ | 10.1 | $ | (49.1) | $ | 56.0 | |||||||||||||||||
Interest and other expense on debt | 20.2 | 19.3 | 23.2 | 61.2 | 71.0 | ||||||||||||||||||||||
Provision (benefit) for income taxes | (19.3) | (4.5) | 6.3 | (20.9) | 24.8 | ||||||||||||||||||||||
Depreciation and amortization expense | 13.6 | 13.6 | 15.6 | 40.5 | 44.3 | ||||||||||||||||||||||
EBITDA | $ | (25.4) | $ | 2.8 | $ | 55.2 | $ | 31.7 | $ | 196.1 | |||||||||||||||||
Gain on insurance settlement | — | — | (1.5) | — | (1.5) | ||||||||||||||||||||||
Reorganization | 4.8 | 3.8 | 4.0 | 9.4 | 6.9 | ||||||||||||||||||||||
Foreign currency transaction (gains) losses | (0.4) | 0.1 | 0.4 | (0.4) | 1.2 | ||||||||||||||||||||||
(Gain) loss on retirement of debt | 17.1 | (0.1) | — | 16.2 | 0.2 | ||||||||||||||||||||||
Pension settlement charge | 52.5 | — | — | 52.5 | — | ||||||||||||||||||||||
Purchase consideration and other transaction costs | — | — | 1.0 | 0.4 | 2.8 | ||||||||||||||||||||||
Other adjustments | (0.3) | (0.1) | — | (0.4) | 0.1 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 48.3 | $ | 6.5 | $ | 59.1 | $ | 109.4 | $ | 205.8 | |||||||||||||||||
Adjusted EBITDA | $ | 48.3 | $ | 6.5 | $ | 59.1 | $ | 109.4 | $ | 205.8 | |||||||||||||||||
LIFO expense (income) | (16.9) | 14.1 | (29.6) | (23.0) | (62.6) | ||||||||||||||||||||||
Adjusted EBITDA, excluding LIFO expense (income) | $ | 31.4 | $ | 20.6 | $ | 29.5 | $ | 86.4 | $ | 143.2 | |||||||||||||||||
Net sales | $ | 831.5 | $ | 771.8 | $ | 1,104.4 | $ | 2,613.6 | $ | 3,540.1 | |||||||||||||||||
Adjusted EBITDA, excluding LIFO expense (income), as a percentage of net sales | 3.8 | % | 2.7 | % | 2.7 | % | 3.3 | % | 4.0 | % | |||||||||||||||||
Gross profit | $ | 155.9 | $ | 115.5 | $ | 204.4 | $ | 467.2 | $ | 647.5 | |||||||||||||||||
Gross margin | 18.7 | % | 15.0 | % | 18.5 | % | 17.9 | % | 18.3 | % | |||||||||||||||||
Gross profit | $ | 155.9 | $ | 115.5 | $ | 204.4 | $ | 467.2 | $ | 647.5 | |||||||||||||||||
LIFO expense (income) | (16.9) | 14.1 | (29.6) | (23.0) | (62.6) | ||||||||||||||||||||||
Gross profit, excluding LIFO expense (income) | $ | 139.0 | $ | 129.6 | $ | 174.8 | $ | 444.2 | $ | 584.9 | |||||||||||||||||
Gross margin, excluding LIFO expense (income) | 16.7 | % | 16.8 | % | 15.8 | % | 17.0 | % | 16.5 | % | |||||||||||||||||
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 or loss on retirement of debt, pension settlement charge, purchase consideration and other transaction costs, 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 (income) 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) and Earnings (Loss) per Share to Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share | ||||||||||||||||||||
(Dollars and Shares in Millions, Except Per Share Data) | ||||||||||||||||||||
2020 | 2019 | First Nine Months Ended | ||||||||||||||||||
Third | Second | Third | September 30, | |||||||||||||||||
Quarter | Quarter | Quarter | 2020 | 2019 | ||||||||||||||||
Net income (loss) attributable to Ryerson Holding Corporation | $ | (39.9) | $ | (25.6) | $ | 10.1 | $ | (49.1) | $ | 56.0 | ||||||||||
Gain on insurance settlement | — | — | (1.5) | — | (1.5) | |||||||||||||||
Restructuring and other charges | 0.2 | 2.0 | 0.3 | 2.2 | 1.7 | |||||||||||||||
(Gain) loss on retirement of debt | 17.1 | (0.1) | — | 16.2 | 0.2 | |||||||||||||||
Pension settlement charge | 52.5 | — | — | 52.5 | — | |||||||||||||||
Provision (benefit) for income taxes | (18.0) | (0.5) | 0.3 | (18.3) | (0.1) | |||||||||||||||
Adjusted net income (loss) attributable to Ryerson Holding Corporation | $ | 11.9 | $ | (24.2) | $ | 9.2 | $ | 3.5 | $ | 56.3 | ||||||||||
Diluted adjusted earnings (loss) per share | $ | 0.31 | $ | (0.64) | $ | 0.24 | $ | 0.09 | $ | 1.49 | ||||||||||
Shares outstanding - diluted | 38.1 | 38.1 | 38.0 | 38.0 | 37.9 | |||||||||||||||
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) | ||||||||||||||||||||
Second | First Nine Months Ended | |||||||||||||||||||
Third Quarter | Quarter | September 30, | ||||||||||||||||||
2020 | 2019 | 2020 | 2020 | 2019 | ||||||||||||||||
Net cash provided by operating activities | $ | 120.6 | $ | 82.5 | $ | 103.3 | $ | 296.7 | $ | 130.5 | ||||||||||
Capital expenditures | (6.1) | (9.1) | (4.9) | (17.9) | (32.5) | |||||||||||||||
Proceeds from sales of property, plant, and equipment | — | 0.2 | 0.1 | 0.1 | 8.8 | |||||||||||||||
Free cash flow | $ | 114.5 | $ | 73.6 | $ | 98.5 | $ | 278.9 | $ | 106.8 | ||||||||||
Market capitalization | $ | 218.4 | $ | 322.3 | $ | 214.6 | $ | 218.4 | $ | 322.3 | ||||||||||
Free cash flow yield | 52.4 | % | 22.8 | % | 45.9 | % | 127.7 | % | 33.1 | % | ||||||||||
Note: Market capitalization is calculated using September 30, 2020, June 30, 2020, and September 30, 2019 stock prices and shares outstanding. | ||||||||||||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/ryerson-reports-third-quarter-results-301162270.html
SOURCE Ryerson Holding Corporation
FAQ
What were Ryerson's Q3 2020 revenues?
How much did Ryerson reduce its net debt by in Q3 2020?
What was Ryerson's adjusted earnings per share for Q3 2020?
Did Ryerson provide guidance for Q4 2020?
What was the net loss for Ryerson in Q3 2020?
