Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q4 2022 Earnings Presentation
25 slides from Ryerson's earnings presentation, Feb 22, 2023
Slide 1: Ryerson Quarterly Release Presentation Q4 2022
Ryerson Quarterly Release Presentation 1 Q4 2022
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 FY 2022 Highlights
Q4 and FY 2022 Highlights • Record full-year Net Income attributable to Ryerson Holding Corporation of $391.0 million with Adjusted EBITDA1, excluding LIFO of $582.0 million • Generated full-year revenue of $6.3 billion and fourth quarter revenue of $1.3 billion • Record full-year Diluted EPS2 of $1
Slide 4: FY 2022 Company Highlights Recap
FY 2022 Company Highlights Recap • Transformed the balance sheet with total debt declining to $367 million and net debt declining to $328 million, compared to $639 million and $588 million as of December 31, 2021 • Grew book value of equity1 by 64% to $893 million from $545 million in 2021 • Redeeme
Slide 5: Macro and Commodities
Macro and Commodities Commodity indices trending higher Commodity Prices Since Dec. 2017 U.S. Industrial Production 4.0 CRU HRC LME Nickel LME Aluminum 3.5 3.0 Prices Indexed to Dec. 2017 2.5 2.0 1.5 U.S. ISM Purchasing Managers Index 1.0 0.5 0.0 Jun-18 Sep-18 Jun-19 Sep-19 Jun-20 Sep-20 Jun-21 Sep-
Slide 6: Sequential Q4 2022 End-Market Trends
Sequential Q4 2022 End-Market Trends North American volumes experienced seasonal slowdown 2022 QoQ Volume Commentary Sales Mix1 Metal Fab and Machine Shop 25% Ryerson’s fourth quarter North American shipments reflected Industrial Equipment 19% the normal seasonal trend, as most of our end-markets sa
Slide 7: Q1 2023 Guidance
Q1 2023 Guidance Anticipate a sequentially higher Q1 from higher shipment volumes Diluted Earnings per Share Adj. EBITDA, Net Sales Net Income1 excl. LIFO $1.37 - 1.43B $36 - 39M $78 - 82M $5.10$5.31 $4.17$4.27 $2.71$2.68 First quarter revenue guidance of $1.37B to $1.43B $1.46$1.48 assumes: $1.02 •
Slide 8: Q4 2022 Selected Financial and Operating Metrics
Q4 2022 Selected Financial and Operating Metrics Asset Management Inventory Days of Supply Cash Conversion Cycle The increase in the Company’s cash conversion 90 92 cycle was driven by a sequential increase in days of supply Cash Flow Cash from operating activities Free Cash Flow Yield1 Fourth quart
Slide 9: Capital Allocation Plan Update
Capital Allocation Plan Update Ryerson distributed its sixth quarterly cash dividend and completed ~$0.9M in share repurchases in fourth quarter. On February 22, 2023, the Board of Directors approved a sixth dividend increase, raising the Company’s first quarter of 2023 dividend to $0.17 per share Q
Slide 10: Dividend Payments Trend Higher
Dividend Payments Trend Higher Stronger capital structure allows for greater returns to shareholders EPS Dividend Yield1 Dividend per Share $0.170 $10.21 $0.160 $0.150 $7.56 $0.125 1.8% $0.100 0.6% $0.080$0.085 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 2021 2022 1Yield for 2021 is based on actual pa
Slide 11: Q4 2022 Key Financial Metrics
Q4 2022 Key Financial Metrics Diluted Earnings Net Sales Gross Margin Net Income (Loss)1 Debt (Loss) per Share $1.3B 12.7% ($24.1M) ($0.65) $367M -16.5% -490 bps -$79.2M -$2.11 -$110M QoQ QoQ QoQ QoQ QoQ Adjusted Diluted Gross Margin, Adj. EBITDA Tons Shipped Earnings (Loss) per Net Debt excl. LIFO
Slide 12: FY 2022 Key Financial Metrics
FY 2022 Key Financial Metrics Diluted Earnings Net Sales Gross Margin Net Income1 Debt per Share $6.3B 20.7% $391.0M $10.21 $367M +11.4% +50 bps +$96.7M +$2.65 -$272M YoY YoY YoY YoY YoY Gross Margin, Adj. EBITDA Adjusted Diluted Tons Shipped Net Debt excl. LIFO excl. LIFO Earnings per Share 2,029k
Slide 13: Capital Allocation Plan
Capital Allocation Plan Strong free cash flow generation $105M in ’22 Raised quarterly $71M for dividend to $0.17 modernization and per share for Q1’23 and Value-Add CAPEX DIVIDENDS M&A BUYBACKS Track record of $50M repurchased successful in ’22; New $75M acquisitions authorization supports increase
Slide 14: 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 15: Ryerson Family of Companies
RYERSON FAMILY OF COMPANIES FANELIO fay + induces = TURRET
Slide 16: Appendix
Appendix 16
Slide 17: Debt Opportunistically Retired
Debt Opportunistically Retired Consistently driven down high-yield debt as part of financial transformation strategy Notes Outstanding, $M Trade Price, $ $600 $115 Recent Debt Retired • Q1 ’22 $63.1M repurchased via open- $500 market $400 $110 • Q2 ’22 $186.9M $300 repurchased via oversubscribed ten
Slide 18: Stronger Liquidity to Fund Operations and Investments
Stronger Liquidity to Fund Operations and Investments Sequential increase in Liquidity and decrease in Net Debt $588 $507 $492 • Global liquidity increased to $909M $426 $328 in Q4 ’22 from $906M in Q3 ’22 $741 $760 $894 $906 $909 • Leverage maintained at historic low range 0.6x Q4 21 Q1 22 Q2 22 Q3
Slide 19: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 474 528 524 512 465 $3,236 $3,312 $3,327 $3,014 $2,770 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Gross Margin & Gross Margin, excl. LIFO Adj EBITDA, excl. LIFO & Net Income Margin %1
Slide 20: Book Value and Balance Sheet Transformation
Book Value and Balance Sheet Transformation Fixed Cash Commitments $153 Leverage Ratio $136 $141 $129 26 8.0 17 21 $115 14 34 6.0 30 30 32 $88 37 $82 15 4.0 11 27 34 89 93 88 10 2.0 0.5x 85 62 51 38 - 2 2016 2017 2018 2019 2020 2021 Q3 2022 1 2016 2017 2018 2019 2020 2021 2022 Ryerson Avg. Competito
Slide 21: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Tons Sold (000's) 474 528 524 512 465 Net Sales 1,533.9 1,748.8 1,743.5 1,543.1 1,288.2 Gross Profit 327.3 410.1 465.9 271.0 163.1 Gross Margin 21.3% 23.5% 26.7% 17.6% 12.7% LIFO expense (income) 75.5 2.2 (7
Slide 22: Non-GAAP Reconciliation: Adjusted Net Income
Non-GAAP Reconciliation: Adjusted Net Income (Dollars and shares in millions, except per share data) Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Net income (loss) attributable to Ryerson Holding Corporation1 $106.4 $163.6 $196.4 $55.1 ($24.1) Gain on sale of assets (1.9) - (3.8) - - Gain on bargain purchase
Slide 23: Non-GAAP Reconciliation: Net Debt
Non-GAAP Reconciliation: Net Debt ($M) Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Total debt 639.3 551.3 533.5 476.9 367.0 Less: cash and cash equivalents (51.2) (44.7) (41.4) (50.9) (39.2) Net Debt $588.1 $506.6 $492.1 $426.0 $327.8 TTM Adj. EBITDA, excl. LIFO $ 860.6 $ 987.7 $ 1,014.5 $ 792.0 $ 582.0 Net
Slide 24: 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 25: Ryerson
RYERSON