Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q3 2021 Earnings Presentation
22 slides from Ryerson's earnings presentation, 2021
Slide 1: Ryerson Quarterly Release Presentation Q3 2021
Ryerson Quarterly Release Presentation 1 Q3 2021
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 2021 Highlights
Q3 2021 Highlights • Achieved third quarter revenue of $1.6 billion • Generated earnings per diluted share of $1.27 and adjusted earnings per diluted share of $3.25 • Achieved record Adjusted EBITDA, excluding LIFO of $301 million • Achieved record gross margin of 23.1% and gross margin, excluding L
Slide 4: Macro & Commodities
Macro & Commodities Pricing conditions remain elevated while demand indicators show ongoing strength and a regathering of demand Commodity Prices Since Dec. 2017 U.S. Industrial Production 17.9 16.4 10.2 CRU HRC 6.9 5.7 4.6 3.1 LME Nickel 1.8 Prices Indexed to Dec. 2017 LME Aluminum (0.8) (0.8) (0.2
Slide 5: Sequential Q3 2021 End-Market Trends
Sequential Q3 2021 End-Market Trends North American per day volumes decreased in most end-markets quarter-over-quarter excluding oil & gas 2020 QoQ Volume Commentary Sales Mix Metal Fab and Machine Shop 25% Ryerson’s third quarter North American per day shipments reflected the broader industry trend
Slide 6: Fourth Quarter Guidance
Fourth Quarter Guidance Ryerson anticipates reporting a strong finish to 2021 with continued pricing growth Diluted Earnings per Share Net Sales Adj. EBITDA, excl. LIFO $1.5-1.6B $228-232M $3.25 $2.91 $2.43 Fourth quarter revenue guidance of $1.5B to $1.6B assumes sequential average selling price gr
Slide 7: Q3 2021 Selected Financial and Operating Metrics Update
Q3 2021 Selected Financial and Operating Metrics Update Asset Management Inventory Days of Supply Cash Conversion Cycle Ryerson intentionally invested in inventory in the third quarter to move back to desired service 78 68 levels and buy ahead of peak replacement cost. Cash Flow Free Cash Flow Free
Slide 8: Capital Allocation Plan Update
Capital Allocation Plan Update During the quarter, Ryerson distributed its first quarterly cash dividend to shareholders and completed ~$1M in share repurchases. On November 3rd, Ryerson’s Board of Directors approved a one-half cent dividend increase, raising the Company’s fourth quarter dividend to
Slide 9: Q3 2021 Key Financial Metrics
Q3 2021 Key Financial Metrics Record results, increased shareholder returns, significant further de-risking of the balance sheet; notable investments in value-added capabilities, our intelligent service center network and the customer experience Net Debt / Adj. Gross Margin, Adjusted Diluted Adj. EB
Slide 10: Exercising Optional Redemption Features
Exercising Optional Redemption Features Ryerson has driven down net debt and fixed cash commitments as part of its financial transformation strategy, significantly reducing annual interest payments Reduced Net Debt ($M) Reduced Interest 2012 2016 2020 Refinance Current Refinance Refinance Principa
Slide 11: Intelligently Connected Network of Service Centers
Intelligently Connected Network of Service Centers 179 Years ~100 Locations 40,000 Customers 75,000 Products Focused on creating great customer experiences at Speed, Scale, & Consistency The Ryerson Customer 11 Experience Eco-System
Slide 12: Appendix
Appendix 12
Slide 13: Q3 2021 vs. Q2 2021 Financial Performance
Q3 2021 vs. Q2 2021 Financial Performance Adj. EBITDA, excl. LIFO $256.2M $125.6M $301M in Adj. EBITDA, excl. LIFO is an increase $1.4M quarter-over-quarter of $104M driven by higher average selling prices. This $25.6 was partially offset by higher cost of goods sold $301.0M and lower volumes on $19
Slide 14: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments Ryerson’s North American availability remains strong Ryerson’s global liquidity decreased during the period from $890M as of June 30, 2021 to $698M as of September 30, 2021 as the Company applied proceeds from the sale- leaseback transactions to Se
Slide 15: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 489 492 543 559 519 $1,700 $1,734 $2,113 $2,538 $3,035 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Gross Margin & Gross Margin, excl. LIFO Adjusted EBITDA, excl. LIFO Margin % Gross Mar
Slide 16: Earnings & Operating Cash Flow per Diluted Share
Earnings & Operating Cash Flow per Diluted Share Ryerson again generated significant EPS in the third quarter of 2021 while effectively managing working capital 16 16
Slide 17: Ryerson EV-EBITA Multiple Re-Rating Still Lagging Results
Ryerson EV-EBITA Multiple Re-Rating Still Lagging Results, Performance and Intrinsic Value FIXED CASH COMMITMENTS Leverage Ratio $186 $19 6.0 2021F Includes $12M of $148 $142 deferred pension $136 5.0 $133 $21 contributions as allowed $67 $22 $16 $17 under the CARES Act 4.0 $34 $31 $31 $32 $88 $93 3
Slide 18: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Tons Sold (000's) 598 541 566 462 489 492 543 559 519 Net Sales 1,104.4 961.5 1,010.3 771.8 831.5 853.0 1,147.3 1,419.0 1,575.1 Gross Profit 204.4 180.4 195.8 115.5 155.9 153.9 19
Slide 19: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Q3 2021 net income includes a loss on retirement of debt related to our 2028 Senior Secured Notes partial redemption and a pension settlement charge related to our partial pension annuitization. Adjusting to remove these charges and the associated income taxes, Rye
Slide 20: 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 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 $M except Tons Sold & ASP Net Sales $771.8 $831.5 $853.0 $1,147.3 $1,419.0 $1,575.1 Warehousing, delivery, selling, general and administrative expenses $124.1 $125.4 $149.1 $171.8 $
Slide 21: 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 22: RYERSON
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