Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q3 2022 Earnings Presentation
24 slides from Ryerson's earnings presentation, 2022
Slide 1: Ryerson Quarterly Release Presentation
Ryerson Quarterly Release Presentation 1 Q3 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: Q3 2022 Highlights
Q3 2022 Highlights • Diluted EPS1 of $1.46 on $1.54 billion of revenue • Net Income of $55 million and Adjusted EBITDA, excluding LIFO2 of $79 million • Generated Operating Cash Flow of $152 million and Free Cash Flow3 of $124 million • Redeemed final $50 million outstanding 8.50% senior secured not
Slide 4: Macro & Commodities
Macro & Commodities Commodity indices reset lower driven by macro headwinds Commodity Prices Since Dec. 2017 4.0 CRU HRC LME Nickel LME Aluminum 3.5 3.0 Prices Indexed to Dec. 2017 2.5 2.0 U.S. ISM Purchasing Managers Index 1.5 1.0 0.5 0.0 Jun-18 Sep-18 Jun-19 Sep-19 Jun-20 Sep-20 Jun-21 Sep-21 Jun-
Slide 5: Debt Opportunistically Retired
Debt Opportunistically Retired Consistently driven down high-yield debt as part of financial transformation strategy Notes Outstanding, $M Trade Price, $ Recent Debt Retired $600 $115 • Q1 ’22 $63.1M repurchased via open- $500 market $400 $110 • Q2 ’22 $186.9M $300 repurchased via oversubscribed ten
Slide 6: Stronger Liquidity to Fund Operations and Investments
Stronger Liquidity to Fund Operations and Investments Sequential increase in Liquidity and decrease in Net Debt $633 $588 $507 $492 $426 • Global liquidity increased to $906M in Q3 ’22 from $894M in Q2 ‘22 $698 $741 $760 $894 $906 • Leverage maintained at historic low 0.5x Q3 21 Q4 21 Q1 22 Q2 22 Q3
Slide 7: Sequential Q3 2022 End-Market Trends
Sequential Q3 2022 End-Market Trends North American volumes impacted by most end-market deferred demand; partially offset by increases in Consumer Durables and HVAC 2021 QoQ Volume Commentary Sales Mix1 Due to slowing demand influenced by a Metal Fab and Machine Shop 27% combination of rising intere
Slide 8: Capital Allocation Plan
Capital Allocation Plan Strong free cash flow generation $100M in ’22 Raised dividend plan: $74M for to $0.16 modernization per share and Value-Add CAPEX DIVIDENDS M&A BUYBACKS Track record of $51M repurchased successful since ’21; acquisitions New $75M supports increases in authorization 4 key pill
Slide 9: Q4 2022 Guidance
Q4 2022 Guidance Anticipate a seasonally slower Q4 and pricing to trend lower on macroeconomic factors Diluted Earnings per Share Adj. EBITDA, Net Sales Net Income1 excl. LIFO $1.25 - 1.30B $27 - 29M $40 - 44M $5.10 $5.31 $4.17 4.27 Fourth quarter revenue guidance of $1.25B to $1.30B $3.25 $2.71 2.6
Slide 10: Q3 2022 Selected Financial & Operating Metrics
Q3 2022 Selected Financial & Operating Metrics Asset Management Inventory Days of Supply Cash Conversion Cycle The Company’s cash conversion cycle driven by a 83 83 sequential increase in days of supply Cash Flow Cash from operating activities Free Cash Flow Yield1 Third quarter cash flow generation
Slide 11: Exercising Optional Redemption Features
Exercising Optional Redemption Features Ryerson has driven down net debt and fixed cash commitments as part of its financial transformation strategy, significantly reducing annual interest payments Reduced Net Debt ($M) Reduced Interest 2016 2020 Q1 Q2 Q3 Refinance Refinance 2021 2022 2022 2022 N
Slide 12: Capital Allocation Plan Update
Capital Allocation Plan Update Ryerson distributed its fifth quarterly cash dividend and completed ~$0.9M in share repurchases. On November 2, 2022, the Board of Directors approved a fifth dividend increase, raising the Company’s fourth quarter dividend to $0.16 per share Q3 22 Allocation: $0.15 and
Slide 13: Dividend Payments Trend Higher
Dividend Payments Trend Higher Stronger capital structure allows for greater returns to shareholders EPS Dividend Yield Dividend per Share $11.52 $0.160 $0.150 $7.56 $0.125 1.8% $0.100 0.6% $0.080 $0.085 2021 2022F 1 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 1Dividend Yield based on projected annual divid
Slide 14: Q3 2022 Key Financial Metrics
Q3 2022 Key Financial Metrics Diluted Earnings per Net Sales Gross Margin Net Income1 Debt Share $1.54B 17.6% $55.1M $1.46 $476.9M -11.5% -910 bps -$141.3M -$3.64 -$56.6M QoQ QoQ QoQ QoQ QoQ Gross Margin, Adj. EBITDA Adjusted Diluted Tons Shipped Net Debt excl. LIFO excl. LIFO Earnings per Share 512
Slide 15: 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 16: Ryerson Family of Companies
RYERSON FAMILY OF COMPANIES > ; fay# insists SUNBELT- TURRET 2 TWreer @= = 9S7Eet STEEL Ws: — STEEL
Slide 17: Appendix
Appendix 17
Slide 18: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 519 474 528 524 512 $3,035 $3,236 $3,312 $3,327 $3,014 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Gross Margin & Gross Margin, excl. LIFO Adj EBITDA, excl. LIFO & Net Income Margin %1
Slide 19: Ryerson Book Value and Balance Sheet Transformation
Ryerson Book Value and Balance Sheet Transformation Fixed Cash Commitments $148 Leverage Ratio $136 $142 $133 8.0 21 22 $115 16 17 31 34 32 $88 6.0 31 37 15 $64 4.0 11 27 93 23 2.0 0.5x 89 85 88 62 10 51 31 - 2 2016 2017 2018 2019 2020 2021 Q2 2022 1 2016 2017 2018 2019 2020 2021 YTD 2022 Ryerson Av
Slide 20: Non-GAAP Reconciliation: Quarterly Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Quarterly Adjusted EBITDA, excl. LIFO ($M) Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Tons Sold (000's) 519 474 528 524 512 Net Sales 1,575.1 1,533.9 1,748.8 1,743.5 1,543.1 Warehousing, delivery, selling, general, and administrative expenses 180.2 180.9 175.3 182.9 186.5 Depreciati
Slide 21: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Q3 2022 reported net income1 of $55.1 million reflects a $0.6 million gain on bargain purchase and a $1.5 million loss on the early retirement of debt. Adjusted earnings were $55.8 million in Q3 2022 (Dollars and shares in millions, except per share data) Q3 '21 Q4
Slide 22: Non-GAAP Reconciliations: Net Debt
Non-GAAP Reconciliations: Net Debt (In millions) Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Total debt 672.6 639.3 551.3 533.5 476.9 Less: cash and cash equivalents (39.9) (51.2) (44.7) (41.4) (50.9) Net Debt $632.7 $588.1 $506.6 $492.1 $426.0 TTM Adj. EBITDA, excl. LIFO $ 655.5 $ 860.6 $ 987.7 $ 1,014.5 $
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, gain on bargain purchase, gain on sale of assets, lo
Slide 24: Ryerson
RYERSON