Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q3 2019 Earnings Presentation
16 slides from Ryerson's earnings presentation, 2019
Slide 1: Ryerson Quarterly Release Presentation Q3 2019
Ryerson Quarterly Release Presentation Q3 2019 1
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”) and no investment decision should be made based upon the information provided herein. Ryerson
Slide 3: 2019 Financial Metrics
2019 Financial Metrics Market share gain and strong free cash flow generation Cash from Gross Margin, Diluted Adjusted Adj. EBITDA, excl. Net Sales Operating excl. LIFO Earnings per Share LIFO Activities Third Quarter $1.1B 15.8% $0.24 $30M $83M -12% vs. Q3’18 -340 bps vs. Q3’18 +$0.07 vs. Q3’18 -$5
Slide 4: Third Quarter 2019 Pro Forma Gross Margin, excl. LIFO vs. Actual Performance
Third Quarter 2019 Pro Forma Gross Margin, excl. LIFO vs. Actual Performance Gross Margin, excl. LIFO Hedging losses and continued margin contraction, as well as inventory holding losses that were in-line with CRU hot-rolled price deflation decreased gross margin, excluding LIFO by a total of 170 ba
Slide 5: Third Quarter 2019 Year-over-Year Financial Performance
Third Quarter 2019 Year-over-Year Financial Performance Adj. EBITDA, excl. LIFO $30M in Adj. EBITDA, excl. LIFO is a decrease year- over-year due to compressed volume, margin, and pricing, which were affected by commodity headwinds, softening industrial conditions, and normal seasonal patterns. Thes
Slide 6: Year-to-Date 2019 Financial Performance
Year-to-Date 2019 Financial Performance Adj. EBITDA, excl. LIFO $143M of Adj. EBITDA, excl. LIFO for the first nine months of 2019 constitutes a decrease compared to the first nine months of 2018 due to contracted volumes and margins, partially offset by improved pricing and expenses year-over-year.
Slide 7: Next Phase Financial Targets: Year-to-Date 2019 Performance
Next Phase Financial Targets: Year-to-Date 2019 Performance $194M 5.5% 16.5% 5.2x Net Leverage, LTM Adj. EBITDA, Gross Margins, excl. U.S. Market Share LTM Adj. EBITDA, excl. LIFO LIFO excl. LIFO / Net Debt Target: $350M to $400M Target: 6.0% Target: 20.0% Target: 2.0x Targets are based on 3-year wi
Slide 8: Improved Book Value of Equity
Improved Book Value of Equity Significant Turnaround From an Equity Deficit to a Positive Equity Balance Book Value of Equity ($M) 8 8
Slide 9: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments Ryerson has significant liquidity to fund operations and pursue strategic investments ($M) 9 9
Slide 10: End-Market Performance
End-Market Performance Q3 2019 YTD Tons Shipped and Sales Mix by End Market Q3 ‘19 YTD vs. Q3 ’18 2018 Commentary & YTD Volume Growth Q4 2019 Outlook Sales Mix Metal Fab and Machine Shop 22% Year-over-year volume growth in HVAC and Industrial Equipment 18% Commercial Ground Transportation sectors ha
Slide 11: Appendix
Appendix 11
Slide 12: Non-GAAP Reconciliation
Non-GAAP Reconciliation EBITDA represents net income before interest and other expense on debt, provision (benefit) for income taxes, depreciation, and amortization. Adjusted EBITDA gives further effect to, among other things, impairment charges on assets, reorganization expenses, gain on bargain pu
Slide 13: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 622 577 619 623 598 $2,010 $2,010 $1,988 $1,934 $1,847 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Gross Margin & Gross Margin, excl. LIFO Adjusted EBITDA, excl. LIFO Margin % & Purchas
Slide 14: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Tons Sold (000's) 622 577 619 623 598 Net Sales 1,250.0 1,160.0 1,230.8 1,204.9 1,104.4 Gross Profit 208.2 199.7 231.3 211.8 204.4 Gross Profit per Ton 335 346 374 340 342 Gross Margin 16.7% 17.2% 18.8% 17.6
Slide 15: Non-GAAP Reconciliation: Adjusted Net Income
Non-GAAP Reconciliation: Adjusted Net Income (Dollars and shares in millions, except per share data) Q3 '19 Q2 '19 Q3 '18 Q3 '19 YTD Q3 '18 YTD Net income attributable to Ryerson Holding Corporation $10.1 $16.4 $77.5 $56.0 $105.4 Gain on bargain purchase - - (73.2) - (73.2) Gain on insurance settlem
Slide 16: Ryerson
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