Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q3 2021 Earnings Presentation
22 slides from Ryerson's earnings presentation, Nov 3, 2021
Slide 1: Ryerson Quarterly Release Presentation Q3 2021
, “ls @ J <4 Exhibit 99.2 Ryerson Quarterly Release Presentation Q3 2021
Slide 2: Important Information About Ryerson Holding Corporation
31 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 pr
Slide 3: Q3 2021 Highlights
Q3 2021 Highlights Achieved third quarter revenue of $1.6 billion Generated earnings per diluted share of $1.27 and adjusted earnings per diluted share of $3.25 Achieved record Adjusted EBITDA, excluding LIFO of $301 million Achieved record gross margin of 23.1% and gross margin, excluding LIFO of 2
Slide 4: Macro & Commodities
Macro & Commodities 4 Pricing conditions remain elevated while demand indicators show ongoing strength and a regathering of demand Sources: Bloomberg: prices through Sep 30, 2021; Federal Reserve, Industrial Production Index monthly year-over-year change; Bloomberg, U.S. Manufacturing PMI Commodity
Slide 5: Sequential Q3 2021 End-Market Trends
Sequential Q3 2021 End-Market Trends 5 North American per day volumes decreased in most end-markets quarter-over-quarter excluding oil & gas *Excludes Other Industry Sectors which represent approximately 4% of Ryerson sales mix **Sales product mix based on 2020 results as disclosed in Ryerson’s Annu
Slide 6: Fourth Quarter Guidance
Fourth Quarter Guidance Fourth quarter revenue guidance of $1.5B to $1.6B assumes sequential average selling price growth of 5% to 7% with shipments down 7% to 9% affected by normal seasonality and continued supply chain constraints in customer end-markets. 6 Ryerson anticipates reporting a strong f
Slide 7: Q3 2021 Selected Financial and Operating Metrics Update
7 Q3 2021 Selected Financial and Operating Metrics Update Capital Investment Investing in speed, value-add, automation and digitalization Expense Management Compared to Q2 2021 Expense leverage increased quarter-over-quarter Asset Management Third quarter use of operating cash flow was driven by inv
Slide 8: Capital Allocation Plan Update
Capital Allocation Plan Update 8 During the quarter, Ryerson distributed its first quarterly cash dividend to shareholders and completed ~$1M in share repurchases. On November 3rd, Ryerson’s Board of Directors approved a one-half cent dividend increase, raising the Company’s fourth quarter dividend
Slide 9: Q3 2021 Key Financial Metrics
A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included in the Appendix. See Ryerson’s 8-K filed on November 3, 2021. 9 Third Quarter Q3 2021 Key Financial Metrics Record results, increased shareholder returns, significant further de-risking of the balance sheet; n
Slide 10: Exercising Optional Redemption Features
Exercising Optional Redemption Features 10 Ryerson has driven down net debt and fixed cash commitments as part of its financial transformation strategy, significantly reducing annual interest payments In the third quarter, Ryerson redeemed $100M of its 2028 Senior Secured Notes at a price of 104% ut
Slide 11: The Ryerson Customer Experience Eco-System
~100 Locations 179 Years 40,000Customers 75,000 Products Focused on creating great customer experiences at Speed, Scale, & Consistency The Ryerson Customer Experience Eco-System Intelligently Connected Network of Service Centers
Slide 12: Appendix
Appendix
Slide 13: Q3 2021 vs. Q2 2021 Financial Performance
13 19.6% increase in average selling price 29.6% gross margin, excl. LIFO, +410bps Adj. EBITDA, excl. LIFO 7.2% decrease 0.9% increase in expenses excl. D&A and one-time items $301M in Adj. EBITDA, excl. LIFO is an increase quarter-over-quarter of $104M driven by higher average selling prices. This
Slide 14: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments 14 Ryerson’s North American availability remains strong Ryerson’s global liquidity decreased during the period from $890M as of June 30, 2021 to $698M as of September 30, 2021 as the Company applied proceeds from the sale-leaseback transactions to
Slide 15: Quarterly Financial Highlights
Quarterly Financial Highlights A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included in this Appendix. Tons Sold (000’s) Average Selling Price Per Ton Adjusted EBITDA, excl. LIFO Margin % 15 Gross Margin & Gross Margin, excl. LIFO
Slide 16: Earnings & Operating Cash Flow per Diluted Share
Earnings & Operating Cash Flow per Diluted Share 16 Ryerson again generated significant EPS in the third quarter of 2021 while effectively managing working capital
Slide 17: Ryerson EV-EBITA Multiple Re-Rating Still Lagging Results
17 Ryerson EV-EBITA Multiple Re-Rating Still Lagging Results, Performance and Intrinsic Value *Avg. Competitor includes Klockner, Olympic, Reliance and Russel. 2021 Q3 TTM includes Q3 data for those who have reported (Reliance & Klockner), and Q2 TTM data for the rest. 2021F Includes $12M of deferre
Slide 18: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
18 Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO Net income includes a vacation accrual adjustment of $11M in Q4 2019.
Slide 19: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation 19 Q3 2021 net income includes a loss on retirement of debt related to our 2028 Senior Secured Notes partial redemption and a pension settlement charge related to our partial pension annuitization. Adjusting to remove these charges and the associated income taxes,
Slide 20: Non-GAAP Reconciliations: Expenses excl. D&A and Net Debt
Non-GAAP Reconciliations: Expenses excl. D&A and One-Time Items and Net Debt 20
Slide 21: EBITDA and Adjusted EBITDA definitions note
31 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 of debt, loss on pensi
Slide 22: Ryerson
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