Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q4 2021 Earnings Presentation
21 slides from Ryerson's earnings presentation, Feb 23, 2022
Slide 1: Ryerson Quarterly Release Presentation Q4 2021
Ryerson Quarterly Release Presentation 1 Q4 2021
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 2021 and FY 2021 Highlights
Q4 2021 and FY 2021 Highlights • Full-year record net income1 of $294.3M and record Adj. EBITDA, excluding LIFO of $860.6M • Achieved fourth quarter diluted EPS of $2.71 and full-year 2021 diluted EPS of $7.56 • Fourth quarter net income1 of $106.4M and fourth quarter Adj. EBITDA, excluding LIFO of
Slide 4: Macro & Commodities
Macro & Commodities Carbon steel declined, bright metals remain elevated while demand indicators show ongoing strength U.S. Industrial Production Commodity Prices Since Dec. 2017 17.9 16.4 10.2 6.6 5.3 CRU HRC 1.8 4.6 4.8 5.0 3.7 4.1 3.1 LME Nickel (0.8)(0.8)(0.2) LME Aluminum (4.7) (7.0)(6.6)(6.6)
Slide 5: Sequential Q4 2021 End-Market Trends
Sequential Q4 2021 End-Market Trends North American per day volumes decreased in most end-markets quarter-over-quarter excluding HVAC and oil & gas 2021 QoQ Volume Commentary Sales Mix Metal Fab and Machine Shop 27% Ryerson’s fourth quarter North American per day shipments reflected Industrial Equip
Slide 6: Q1 2022 Guidance
Q1 2022 Guidance Ryerson anticipates a solid start to 2022 with increased end-market demand Adj. EBITDA, Diluted Earnings per Share2 Net Sales Net Income1 excl. LIFO $1.55-1.65B $148-154M $195-205M $3.86 First quarter revenue guidance of $1.55B to $1.65B assumes $3.25 sequential average selling pric
Slide 7: Q4 2021 Selected Financial & Operating Metrics Update
Q4 2021 Selected Financial & Operating Metrics Update Asset Management Inventory Days of Supply Cash Conversion Cycle The Company’s cash conversion cycle reflects an 88 84 increase in days of supply as mill lead times declined and past due inventory was delivered. Cash Flow Cash from operating activ
Slide 8: Capital Allocation Plan Update
Capital Allocation Plan Update During the quarter, Ryerson distributed its second quarterly cash dividend to shareholders and completed ~$1M in share repurchases. On February 17, 2022 the Board of Directors approved a second dividend increase, raising the Company’s first quarter dividend to $0.10 pe
Slide 9: Q4 2021 Key Financial Metrics
Q4 2021 Key Financial Metrics Record fourth quarter results driven by excellent execution and debt reduction Diluted Earnings Net Sales Gross Margin Net Income1 Debt per Share $1.5B 21.3% $106M $2.71 $639M -3% QoQ -180 bps QoQ +$57M QoQ +$1.44 QoQ -$33M QoQ Gross Margin, Adj. EBITDA Diluted Adjusted
Slide 10: 2021 Key Financial Metrics
2021 Key Financial Metrics Record annual results driven by excellent execution and debt reduction Diluted Earnings Net Sales Gross Margin Net Income1 Debt per Share $5.7B 20.2% $294M $7.56 $639M +64% YoY +230 bps YoY +$360M YoY +$9.29 YoY -$101M YoY Gross Margin, Adj. EBITDA Diluted Adjusted Tons Sh
Slide 11: Exercising Optional Redemption Features
Exercising Optional Redemption Features Ryerson has driven down net debt and fixed cash commitments as part of its financial transformation strategy, significantly reducing annual interest payments Reduced Net Debt ($M) Reduced Interest 2012 2016 2020 Refinance 2021 Refinance Refinance Principal Amo
Slide 12: Intelligent Network of Industrial Metals Service Centers
Intelligent Network of Industrial Metals Service Centers Great customer experiences at speed, scale and consistency • Say “yes” culture • ~100 company-operated locations • Hundreds of “virtual” locations • Dedicated logistics network • Availability, speed, ease, consistency • Advanced value-add • Di
Slide 13: Appendix
Appendix 13
Slide 14: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments Ryerson’s North American availability remains strong 890 150 741 38 698 51 22 40 20 20 583 43 31 Ryerson’s global liquidity increased during 373 the period from $698M as of September 30, 61 680 638 670 2021 to $741M as of December 31, 2021. 35 509
Slide 15: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 492 543 559 519 474 $1,734 $2,113 $2,538 $3,035 $3,236 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Gross Margin & Gross Margin, excl. LIFO Adj EBITDA, excl. LIFO & Net Income Margin %1
Slide 16: Ryerson EV/EBITDA Multiple Re-Rating Still Lagging Results
Ryerson EV/EBITDA Multiple Re-Rating Still Lagging Results, Performance and Intrinsic Value Fixed Cash Commitments 2021 includes $12M of Leverage Ratio deferred pension $186 contributions as allowed 6.0 19 under the CARES Act $148 $142 5.0 $136 $133 21 67 16 17 22 $115 4.0 31 34 32 $88 31 37 3.0 15
Slide 17: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Tons Sold (000's) 566 462 489 492 543 559 519 474 Net Sales 1,010.3 771.8 831.5 853.0 1,147.3 1,419.0 1,575.1 1,533.9 Gross Profit 195.8 115.5 155.9 153.9 197.9 257.0 364.6 327.3 Gross P
Slide 18: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation 2021 net income includes a gain on sale of assets related to the sale-leaseback transaction completed in the second quarter, a loss on retirement of debt related to our 2028 Senior Secured Notes partial redemption and a pension settlement charge related to our part
Slide 19: Non-GAAP Reconciliations: Expenses excl. D&A and one-time Items and Net Debt
Non-GAAP Reconciliations: Expenses excl. D&A and one-time Items and Net Debt Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 $M except Tons Sold & ASP Net Sales $853.0 $1,147.3 $1,419.0 $1,575.1 $1,533.9 Warehousing, delivery, selling, general and administrative expenses $149.1 $171.8 $178.3 $180.2 $180.9 Deprec
Slide 20: 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 on sale of assets, gain or loss on retirement o
Slide 21: Ryerson
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