Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q1 2022 Earnings Presentation
20 slides from Ryerson's earnings presentation, May 4, 2022
Slide 1: Ryerson Quarterly Release Presentation
Ryerson Quarterly Release Presentation 1 Q1 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: Q1 2022 Highlights
Q1 2022 Highlights • Record revenue of $1.75 billion on sequential volume increase of 11.4% • Record diluted EPS of $4.17 and adjusted diluted EPS of $4.27 • Net Income1 of $163.6 million and Adjusted EBITDA, excluding LIFO of $250.6 million • Reduced leverage ratio2 to 0.5x with $551 million in deb
Slide 4: Macro & Commodities
Macro & Commodities Carbon steel inflected, bright metals remain elevated while demand indicators show ongoing strength U.S. Industrial Production 17.9 Commodity Prices Since Dec. 2017 16.4 10.2 6.6 5.4 7.5 4.5 4.7 5.0 3.4 3.6 5.5 CRU HRC 1.8 3.1 LME Nickel (0.8)(0.8)(0.2) (1.7) (4.7) (4.7)(3.3) (4.
Slide 5: Sequential Q1 2022 End-Market Trends
Sequential Q1 2022 End-Market Trends North American volumes increased in most end-markets quarter-over-quarter 2021 QoQ Volume Commentary Sales Mix Metal Fab and Machine Shop 27% While near-term supply constraints and COVID-related issues persisted into the Industrial Equipment 18% first quarter of
Slide 6: Q2 2022 Guidance
Q2 2022 Guidance Ryerson anticipates a solid continuation to 2022 with increased end-market demand Adj. EBITDA, Net Sales Net Income1 Diluted Earnings per Share 2 excl. LIFO $1.75-1.80B $168-176M $250-260M $4.17 4.27 $4.39 $3.25 Second quarter revenue guidance of $1.75B to $1.80B $2.91 $2.71 2.68 as
Slide 7: Exercising Optional Redemption Features
Exercising Optional Redemption Features Ryerson has driven down net debt and fixed cash commitments as part of its financial transformation strategy, significantly reducing annual interest payments Reduced Net Debt ($M) Reduced Interest 2016 2020 Refinance Refinance 2021 Q1 2022 $1,130 $923 $679 $5
Slide 8: Q1 2022 Selected Financial & Operating Metrics Update
Q1 2022 Selected Financial & Operating Metrics Update Asset Management Inventory Days of Supply Cash Conversion Cycle The Company’s cash conversion cycle reflects a 77 77 decrease in days of supply Cash Flow Cash from operating activities Free Cash Flow Yield2 First quarter cash flow generation was
Slide 9: Capital Allocation Plan Update
Capital Allocation Plan Update Ryerson distributed its third quarterly cash dividend and completed $0.5M in share repurchases. On May 4, 2022 the Board of Directors approved a third dividend increase, raising the Company’s second quarter dividend to $0.125 per share Q1 22 Allocation: $0.100 and $0.5
Slide 10: Q1 2022 Key Financial Metrics
Q1 2022 Key Financial Metrics Outstanding quarterly results bolstered by supportive global metals pricing and recovering North American demand Diluted Earnings Net Sales Gross Margin Net Income1 Debt per Share $1.75B 23.5% $164M $4.17 $551M +14% QoQ +220 bps QoQ +$57M QoQ +$1.46 QoQ -$88M QoQ Gross
Slide 11: 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 12: Appendix
Appendix 12
Slide 13: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments Ryerson’s North American availability remains strong 890 150 741 760 698 45 38 51 583 40 24 22 20 43 20 31 Ryerson’s global liquidity increased during 680 638 670 691 the period from $741M as of December 31, 509 2021 to $760M as of March 31, 2022.
Slide 14: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 543 559 519 474 528 $2,113 $2,538 $3,035 $3,236 $3,312 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Gross Margin & Gross Margin, excl. LIFO Adj EBITDA, excl. LIFO & Net Income 1 Margin G
Slide 15: Ryerson EV/EBITDA Multiple Re-Rating Still Lagging Results
Ryerson EV/EBITDA Multiple Re-Rating Still Lagging Results $186 Fixed Cash Commitments 2021 includes $12M of Leverage Ratio 19 deferred pension $148 contributions as allowed 6.0 $136 $133 $142 under the CARES Act 21 67 16 17 22 $115 4.0 34 31 31 32 $88 37 15 2.0 11 27 100 89 85 93 88 $28 - 62 51 7 5
Slide 16: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Tons Sold (000's) 543 559 519 474 528 Net Sales 1,147.3 1,419.0 1,575.1 1,533.9 1,748.8 Gross Profit 197.9 257.0 364.6 327.3 410.1 Gross Profit per Ton 364 460 703 691 777 Gross Margin 17.2% 18.1% 23.1% 21.3
Slide 17: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Q1 2022 reported net income of $163.6 million reflects a $5.3 million cash loss on the early retirement of debt. Excluding this tax effected impact of $3.9 million, adjusted earnings were $167.5 million in Q1 2022 (Dollars and shares in millions, except per share d
Slide 18: Non-GAAP Reconciliations: Expenses excl. D&A and one-time Items and Net Debt
Non-GAAP Reconciliations: Expenses excl. D&A and one-time Items and Net Debt Ryerson Holding Corporation $M except Tons Sold & ASP Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Net Sales $1,147.3 $1,419.0 $1,575.1 $1,533.9 $1,748.8 Warehousing, delivery, selling, general and administrative expenses $171.8 $178
Slide 19: 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 sale of assets, gain or loss on retirement o
Slide 20: RYERSON
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