Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q3 2023 Earnings Presentation
21 slides from Ryerson's earnings presentation, Nov 2, 2023
Slide 1: Ryerson Quarterly Release Presentation
Ryerson Quarterly Release Presentation 1 Q3 2023
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: Q3 2023 Highlights
Q3 2023 Highlights • Achieved Net Income attributable to Ryerson Holding Corporation of $35.0 million and Adjusted EBITDA1, excluding LIFO of $45.0 million • Delivered Diluted Earnings Per Share of $1.00 on revenue of $1.25 billion • Generated Operating Cash Flow of $79.3 million and Free Cash Flow
Slide 4: Macro and Commodities
Macro and Commodities Commodity mix facing counter-cyclical conditions Commodity Prices Since Dec. 2017 U.S. Industrial Production 4.0 CRU HRC LME Nickel LME Aluminum 4.5 3.5 3.1 1.9 1.5 3.0 Prices Indexed to Dec. 2017 0.6 0.8 0.2 0.4 0.2 0.2 0.1 0.1 -0.4 2.5 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 2.0 1
Slide 5: Sequential Q3 2023 End-Market Trends
Sequential Q3 2023 End-Market Trends North American volumes experienced softening demand 2022 QoQ Volume Commentary Sales Mix1 Ryerson’s third quarter North American Metal Fab and Machine Shop 25% shipments reflected easing customer demand, which was influenced by an Industrial Equipment 19% uncerta
Slide 6: Q4 2023 Guidance
Q4 2023 Guidance Anticipate normal seasonality in Q4 volumes with pricing easing Diluted Earnings per Share Adj. EBITDA, Net Sales Net Income1 excl. LIFO $1.00 - 1.15B $7 - 8M $28 - 32M $1.27 1.27 $1.06 $1.06 $1.00 $1.00 $0.20 Fourth quarter revenue guidance of $1.00B to $1.15B assumes: ($0.65) ($0.
Slide 7: Q3 2023 Selected Financial and Operating Metrics
Q3 2023 Selected Financial and Operating Metrics Asset Management Inventory Days of Supply Cash Conversion Cycle The increase in the Company’s cash conversion cycle was driven by increase in inventory days of 83 78 supply Cash Flow Cash from operating activities TTM Free Cash Flow Yield1 Third quart
Slide 8: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments Liquidity remained strong and Net Debt within target range $426 $366 • Net Leverage of 1.4x in Q3 ‘23 within $351 $328 target leverage range of 0.5x to 2.0x $329 $906 $909 $856 $790 $807 • Global liquidity remained strong at $807M in Q2 ’23 Q3 22 Q
Slide 9: Capital Allocation Plan
Capital Allocation Plan Strong free cash flow generation $125M in ’23E; Raised quarterly $100M for dividend to modernization and $0.1850 and Value-Add per share for Q4’23 CAPEX DIVIDENDS M&A BUYBACKS Track record of $108M repurchased successful in ’23; $46M acquisitions remains of $100M authorizatio
Slide 10: Capital Allocation Plan Update
Capital Allocation Plan Update Ryerson distributed its ninth quarterly cash dividend and completed ~$4.0M in share repurchases in the third quarter. On October 30, 2023, the Board of Directors approved a ninth consecutive dividend increase, raising the Company’s fourth quarter of 2023 dividend to $0
Slide 11: Q3 2023 Key Financial Metrics
Q3 2023 Key Financial Metrics Diluted Earnings Net Sales Gross Margin Net Income1 Debt per Share $1.2B 20.0% $35.0M $1.00 $366M -7.2% +60 bps -$2.6M -$0.06 -$30M QoQ QoQ QoQ QoQ QoQ Gross Margin, Adj. EBITDA Adjusted Diluted Tons Shipped Net Debt excl. LIFO excl. LIFO Earnings per Share 478k 17.3% $
Slide 12: Intelligent Network of Service Centers
Intelligent Network of Service Centers • Diversified (metals mix, ~40k customers, ~75k products) • Availability, speed, ease, consistency • Hundreds of “virtual” locations • 24/7 e-commerce • Digitalized customer experience • Building the value chain of the future $1.2B $1.00 Net Sales Diluted Earni
Slide 13: Ryerson Family of Companies
RYERSON FAMILY OF COMPANIES A BLP x Gye” Ve ‘@ + Zz SUNBEtT- & STEEL = yy Te
Slide 14: Appendix
Appendix 14
Slide 15: Dividend Payments Trend Higher
Dividend Payments Trend Higher Stronger capital structure allows for greater returns to shareholders EPS Dividend Yield 1 Dividend per Share $0.185 $10.21 $0.1825 $0.180 $0.170 $0.160 $0.150 $0.125 $0.100 1.8% $3.34 $0.085 2.4% 2022 YTD 2023 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 1Yie
Slide 16: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 512 465 519 496 478 $3,014 $2,770 $2,709 $2,709 $2,608 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Gross Margin & Gross Margin, excl. LIFO Adj EBITDA, excl. LIFO & Net Income Margin %1
Slide 17: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Tons Sold (000's) 512 465 519 496 478 Net Sales 1,543.1 1,288.2 1,406.1 1,343.5 1,246.7 Gross Profit 271.0 163.1 264.2 260.9 249.3 Gross Margin 17.6% 12.7% 18.8% 19.4% 20.0% LIFO expense (income) (21.1) 34.6
Slide 18: Non-GAAP Reconciliation: Adjusted Net Income
Non-GAAP Reconciliation: Adjusted Net Income (Dollars and shares in millions, except per share data) Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Net income (loss) attributable to Ryerson Holding Corporation $55.1 ($24.1) $47.3 $37.6 $35.0 Gain on bargain purchase (0.6) - - - - Loss on retirement of debt 1.5
Slide 19: Non-GAAP Reconciliation: Net Debt
Non-GAAP Reconciliation: Net Debt ($M) Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Total debt $476.9 $367.0 $395.1 $396.1 $365.9 Less: cash and cash equivalents ($50.9) ($39.2) ($43.7) ($30.0) ($37.4) Net Debt $426.0 $327.8 $351.4 $366.1 $328.5 TTM Adj. EBITDA, excl. LIFO $792.0 $582.0 $421.5 $267.4 $233.9 N
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 bargain purchase, gain on sale of assets, lo
Slide 21: Ryerson
RYERSON