Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q4 2023 Earnings Presentation
24 slides from Ryerson's earnings presentation, Feb 22, 2024
Slide 1: Ryerson Quarterly Release Presentation
Ryerson Quarterly Release Presentation 1 Q4 and Full-Year 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: Q4 and Full-Year 2023
Q4 and Full-Year 2023 • Achieved fourth quarter Net Income attributable to Ryerson Holding Corporation of $26 million and Adjusted EBITDA1, excluding LIFO of $26 million • Delivered fourth quarter Diluted Earnings Per Share of $0.74 on revenue of $1.1 billion • Generated fourth quarter Operating Cas
Slide 4: Global PMIs
Global PMIs World PMI remained in contraction territory in Q4, marking 16 consecutive months of contraction 4 Source: S&P Global, as of January 24, 2024 4
Slide 5: Macro and Commodities
Macro and Commodities Macroeconomic headwinds challenging commodity mix and slowing longer term emergent trends Commodity Prices Since Dec. 2017 U.S. Industrial Production 3.5 1.5 0.8 1.0 CRU HRC 0.6 3.0 0.2 0.4 0.2 0.2 0.1 0.1 LME Aluminum -0.4 2.5 LME Nickel (0.6) (0.9) 2.0 Dec-22 Mar-23 Jun-23 Se
Slide 6: Sequential Q4 2023 End-Market Trends
Sequential Q4 2023 End-Market Trends North American volumes experienced seasonal slowdown 2023 QoQ Volume Sales Mix1 Commentary Metal Fab and Machine Shop 25% Ryerson’s fourth quarter North American shipments reflected seasonal buying patterns as well as Industrial Equipment 17% easing customer dema
Slide 7: Value-Add Sales
Value-Add Sales Organic growth investments and acquisitions contributing to value-add sales growing to 18% 2.0% 2.0% 18.0% 14.0% 2 0 2 2 VALUE - AD D ACQ UI S I TI O NS O RG ANI C 2 0 2 3 VALUE - AD D 7 % G RO W TH % 7
Slide 8: Q1 2024 Guidance
Q1 2024 Guidance Anticipate seasonal pickup in Q1 volumes and pricing Diluted Earnings per Share Adj. EBITDA, Net Sales Net Income1 excl. LIFO $1.27 $1.27 $1.06 $1.06 $1.00 $1.00 $1.21 - 1.25B $8 - 11M $58 - 62M $0.74 $0.73 $0.29 First quarter revenue guidance of $1.21B to $1.25B assumes: 2 • Averag
Slide 9: Q4 2023 Selected Financial and Operating Metrics
Q4 2023 Selected Financial and Operating Metrics Asset Management The increase in the Company’s cash conversion Inventory Days of Supply Cash Conversion Cycle cycle was driven by an increase in inventory days 89 85 of supply on restocking and targeted service level objectives. Cash Flow Cash from Op
Slide 10: Liquidity and Leverage
Liquidity and Leverage Liquidity remained strong and Net Leverage within target range $366 $382 $351 • Net Leverage of 1.7x in Q4 ’23 within $328 $329 target leverage range of 0.5x to 2.0x $909 $856 $790 $807 $656 • Global liquidity remained strong at 1 $656M in Q4 ’23 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23
Slide 11: Capital Allocation Plan
Capital Allocation Plan Strong free cash flow generation $122M in ’23; Quarterly $110M in ’24E dividend raised Modernization and to $0.1875 and Value-Add per share for Q1’24 CAPEX DIVIDENDS M&A BUYBACKS Track record of $114M repurchased successful in ’23; $39M acquisitions remains of $100M authoriza
Slide 12: Capital Allocation Plan Update
Capital Allocation Plan Update Ryerson distributed its tenth quarterly cash dividend and completed ~$6.3M in share repurchases in the fourth quarter. On February 21, 2024, the Board of Directors approved a tenth consecutive dividend increase, raising the Company’s first quarter of 2024 dividend to $
Slide 13: Q4 2023 Key Financial Metrics
Q4 2023 Key Financial Metrics Diluted Earnings Net Sales Gross Margin Net Income1 Debt per Share $1.1B 22.2% $25.8M $0.74 $436M -10.8% +220 bps -$9.2M -$0.26 +$70M QoQ QoQ QoQ QoQ QoQ Gross Margin, Adj. EBITDA Adjusted Diluted Tons Shipped Net Debt excl. LIFO excl. LIFO Earnings per Share 450k 16.9%
Slide 14: FY 2023 Key Financial Metrics
FY 2023 Key Financial Metrics Diluted Earnings Net Sales Gross Margin Net Income1 Debt per Share $5.1B 20.0% $145.7M $4.10 $436M -19.2% -70 bps -$245.3M -$6.11 +$69M YoY YoY YoY YoY YoY Gross Margin, Adj. EBITDA Adjusted Diluted Tons Shipped Net Debt excl. LIFO excl. LIFO Earnings per Share 1,943k 1
Slide 15: 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 $5.1B $4.10 Net Sales Diluted Earni
Slide 16: Ryerson Family of Companies
RYERSON FAMILY OF COMPANIES TOOL STEEL CORPORATION < Wee & STEEL a STeel —
Slide 17: Appendix
Appendix 17
Slide 18: Dividend Payments
Dividend Payments Stronger capital structure allows for greater returns to shareholders EPS Dividend Yield 1 Dividend per Share 0.1875 0.1850 $10.21 0.1825 0.1800 0.1700 0.1600 0.1500 0.1250 $4.10 0.1000 1.8% 0.0850 0.0800 2.1% 2022 2023 1Yield for 2022 is based on closing share price as of December
Slide 19: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 465 519 496 478 450 $2,770 $2,709 $2,709 $2,608 $2,472 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Gross Margin & Gross Margin, excl. LIFO Adj EBITDA, excl. LIFO & Net Income Margin %1
Slide 20: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Tons Sold (000's) 465 519 496 478 450 Net Sales 1,288.2 1,406.1 1,343.5 1,246.7 1,112.4 Gross Profit 163.1 264.2 260.9 249.3 247.2 Gross Margin 12.7% 18.8% 19.4% 20.0% 22.2% LIFO expense (income) 34.6 4.0 (9
Slide 21: Non-GAAP Reconciliation: Adjusted Net Income
Non-GAAP Reconciliation: Adjusted Net Income (Dollars and shares in millions, except per share data) Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Net income (loss) attributable to Ryerson Holding Corporation ($24.1) $47.3 $37.6 $35.0 $25.8 Benefit plan curtailment gain - - - - (0.8) Provision for income taxes
Slide 22: Non-GAAP Reconciliation: Net Debt
Non-GAAP Reconciliation: Net Debt ($M) Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Total debt $367.0 $395.1 $396.1 $365.9 $436.5 Less: cash and cash equivalents ($39.2) ($43.7) ($30.0) ($37.4) ($54.3) Net Debt $327.8 $351.4 $366.1 $328.5 $382.2 TTM Adj. EBITDA, excl. LIFO $582.0 $421.5 $267.4 $233.9 $231.1 N
Slide 23: 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, benefit plan curtailment gain, purchase consideratio
Slide 24: RYERSON
RYERSON