Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q4 2020 Earnings Presentation
18 slides from Ryerson's earnings presentation, Feb 26, 2021
Slide 1: Ryerson Quarterly Release Presentation Q4 2020
Ryerson Quarterly Release Presentation Q4 2020 1
Slide 2: Important Information About Ryerson Holding Corporation
Important Information About Ryerson Holding Corporation These materials do not constitute an offer or solicitation to purchase or sell securities of Ryerson Holding Corporation (“Ryerson” or “the Company”) or its subsidiaries and no investment decision should be made based upon the information provi
Slide 3: Q4 2020 Highlights
Q4 2020 Highlights • Continued successfully executing upon our dual mandate pandemic response plan to safeguard the health and safety of our employees and to improve the liquidity and recovery capacity of the Company. • Redeemed $50 million in outstanding Senior Secured Notes due 2028 and ended the
Slide 4: Macro & Commodities
Macro & Commodities Tightened supply environment lifting prices while demand conditions show improvement Commodity Prices Since Dec. 2017 3.8 3.6 2.7 2.3 U.S. Industrial Production 1.8 0.7 1.0 0.4 0.3 1.8 CRU HRC (0.2)(0.8) (0.4)(0.8)(0.8) (0.2) (1.8) LME Nickel (3.2) (4.7) (4.7)(4.7) Prices Indexed
Slide 5: Sequential Q4 End-Market Trends
Sequential Q4 End-Market Trends Fourth quarter per day volume improvement across nearly all end-markets QoQ End-Market 2020 Commentary Volume Sales Mix Metal Fab and Machine Shop 25% Compared to the third quarter, Ryerson’s fourth quarter per day Industrial Equipment 18% shipments improved in nearly
Slide 6: Q4 2020 Key Financial Metrics
Q4 2020 Key Financial Metrics Realized significant accomplishments and improvements to the business in a pandemic year of adversities with enhanced recovery capacities Diluted Adjusted Cash from (used Gross Margin, Adj. EBITDA, excl. Net Sales Earnings (Loss) in) Operating excl. LIFO LIFO per Share
Slide 7: Best in Class Free Cash Flow Yield
Best in Class Free Cash Flow Yield Free cash flow yield compares favorably to the Composite S&P 500 Free Cash Flow Yield Annualized average figures 2015 - 2019 2020 Free cash flow $94M $252M Market capitalization $330M $518M Free cash flow yield 28% 49% Our improved operating profile led to a 28% av
Slide 8: Decreasing Net Debt with Secured Optionality
Decreasing Net Debt with Secured Optionality Ryerson has driven down net debt and fixed cash commitments as part of its transformation strategy and has begun to exercise the optional redemption terms secured in the July 2020 refinance Net Debt ($M) Reduced Principal & Interest 2012 2016 2020 Bond
Slide 9: Intelligently Connected Network of Service Centers
Intelligently Connected Network of Service Centers 179 Years 97 Locations 40,000 Customers 75,000 Products Focused on creating great customer experiences at Speed, Scale, & Consistency The Ryerson Customer 9 Experience Eco-System
Slide 10: Appendix
Appendix 10
Slide 11: Q4 2020 vs. Q3 2020 Financial Performance
Q4 2020 vs. Q3 2020 Financial Performance Adj. EBITDA, excl. LIFO $34M in Adj. EBITDA, $8.5M $23.4M $23.5M excl. LIFO is an increase quarter-over-quarter of $16.3M $2M driven by higher volumes, improved pricing, and expanded $0.9M gross margin, excl. LIFO. Expenses excl. D&A and one-time items were
Slide 12: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments Ryerson retained ample liquidity to fund operations throughout the COVID-19 crisis The Company retained ample liquidity throughout the fourth quarter due to strong Adj. EBITDA, excl. LIFO generation and excellent working capital management. This wa
Slide 13: Adjusted Net Income: Excluding non-recurring, non-operating items
Adjusted Net Income: Excluding non-recurring, non-operating items 2020 net loss was impacted by non-operating recognition events around our bond refinancing and legacy liability management actions which are wholly beneficial on a go-forward basis (Dollars and shares in millions, except per share dat
Slide 14: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 541 566 462 489 492 $1,777 $1,785 $1,671 $1,700 $1,734 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Gross Margin & Gross Margin, excl. LIFO Adjusted EBITDA, excl. LIFO Margin % Gross Mar
Slide 15: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Tons Sold (000's) 619 623 598 541 566 462 489 492 Net Sales 1,230.8 1,204.9 1,104.4 961.5 1,010.3 771.8 831.5 853.0 Gross Profit 231.3 211.8 204.4 180.4 195.8 115.5 155.9 153.9 Gross Pro
Slide 16: Non-GAAP Reconciliations: Expenses excl. D&A and One-Time Items
Non-GAAP Reconciliations: Expenses excl. D&A and One-Time Items and Net Debt (In millions) Q4 '18 Q4 '19 Q3 '20 Q4 '20 Total debt $1,153 $982 $814 $740 Less: cash and cash equivalents (23) (11) (122) (61) Less: restricted cash from sales of property, - (48) - - plant, and equipment Net debt $1,130 $
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation 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, loss on pension
Slide 18: Ryerson
RYERSON ®OOO