Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q1 2024 Earnings Presentation
22 slides from Ryerson's earnings presentation, May 1, 2024
Slide 1: Ryerson Quarterly Release Presentation
Ryerson Quarterly Release Presentation 1 Q1 2024
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 2024 Highlights
Q1 2024 HIGHLIGHTS • Earned Revenue of $1.24 billion on 497,000 tons shipped and average selling price of $2,493 per ton. • Net Loss attributable to Ryerson Holding Corporation of $7.6 million with Adjusted EBITDA1, excluding LIFO of $40.2 million as counter-cyclical industry conditions persisted an
Slide 4: Capital Expenditures
CAPITAL EXPENDITURES Modernization Investment Cycle $22 $22 $23 $25 $38 $46 $26 $59 $105 $122 $110 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024F Capital Expenditures ($M) 4
Slide 5: Investing in the Business
INVESTING IN THE BUSINESS University Park – New CS&W HQ Shelbyville Expansion Centralia Pacific NW • 900,000 sq ft facility • State-of-the-art cut-to-length line • 214,000 sq ft facility • Significant automation and (CTL) and automated storage and • Advanced processing capabilities technological enh
Slide 6: Macro & Commodities
MACRO & COMMODITIES Commodity Prices Since Dec. 2017 3.5 CRU HRC 1.1 LME Aluminum 0.6 0.2 0.3 0.1 0 3.0 LME Nickel -0.4 (0.1) (0.2) (0.1) (0.2) (0.8) (0.7) 2.5 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 2.0 U.S. ISM Purchasing Managers Index 50.3 49.0 49.1 1.5 47.6 47.8 47.1 46.9 46.9 46.7 47.1 46.3 46.4 46
Slide 7: Sequential End-Market Trends
SEQUENTIAL END-MARKET TRENDS 2023 QoQ Volume Sales Mix1 Commentary Metal Fab and Machine Shop 25% Ryerson’s first quarter North Industrial Equipment American shipments reflected 17% seasonal buying patterns as well Commercial Ground Transportation as restocking customer demand 17% from industrial ma
Slide 8: Q2 2024 Guidance
Q2 2024 GUIDANCE Diluted Earnings per Share Adj. EBITDA, Net Sales Net Income1 excl. LIFO $1.25 - 1.29B $5 - 10M $47 - 53M $1.06 $1.06 $1.00 $1.00 $0.74 $0.73 $0.20 Second quarter revenue guidance of $1.25B to $1.29B ($0.22) ($0.18) assumes: • Average Selling Prices increase 0% to 1% Q2 2023 Q3 2023
Slide 9: Financial and Operating Metrics
FINANCIAL AND OPERATING METRICS Asset Management Inventory Days of Cash Conversion The Company’s cash conversion cycle decreased sequentially due to decreases in inventory days of supply Supply Cycle and days sales outstanding 85 76 Cash Flow Cash from Operating LTM Free Cash Flow First quarter cash
Slide 10: Liquidity and Leverage
LIQUIDITY AND LEVERAGE $455 • Net Leverage of 2.5x in Q1 ’24 above $382 target leverage range of 0.5x to 2.0x $366 $351 $329 • Global liquidity remained strong at $684M in Q1 ’24 $856 $790 $807 $656 $684 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Liquidity Net Debt $856 $807 44 $790 30 37 $684 46 $656 48 45 42 5
Slide 11: Capital Allocation Plan
CAPITAL ALLOCATION PLAN LTM free cash flow generation $22M in Q1’24; Quarterly $110M in ’24E dividend Modernization and of $0.1875 and Value-Add per share for Q2’24 CAPEX DIVIDENDS M&A BUYBACKS Track record of $1M repurchased in successful 1Q’24; $38M acquisitions remains of $100M authorization Supp
Slide 12: Capital Allocation Plan Update
CAPITAL ALLOCATION PLAN UPDATE $0.1875 and $1.0M per Share Share repurchases completed in Q1 Return of capital to investors 2024 Q2 2024 Announced: $0.1875 Ryerson’s dividend is enabled by a transformed balance sheet and continued per Share prioritization of shareholder returns as part Return of cap
Slide 13: Q1 2024 Key Financial Metrics
Q1 2024 KEY FINANCIAL METRICS Diluted Loss Net Sales Gross Margin Net Loss1 Debt per Share $1.2B 17.6% ($7.6)M ($0.22) $497M +11.4% -460 bps -$33.4M -$0.96 +$61M QoQ QoQ QoQ QoQ QoQ Gross Tons Adj. EBITDA Adjusted Diluted Margin, excl. Net Debt Shipped excl. LIFO Loss per Share LIFO 497k 17.6% $40.2
Slide 14: Intelligent Network
INTELLIGENT NETWORK • Diversified (metals mix, ~40k customers, ~75k products) • Availability, speed, ease, consistency • 110 facilities • Hundreds of “virtual” locations • 24/7 E-Commerce Platform • Relationship-centric customer experience • Building the value chain of the future 14
Slide 15: Ryerson Family of Companies
RYERSON FAMILY OF COMPANIES 2 (A L IP 2 ¢ [FANELLO <2 TWreer a STEEL f +>, = fay+ eee ee yo Riba “WS
Slide 16: Appendix
Appendix
Slide 17: Dividend Payments
DIVIDEND PAYMENTS Dividend per Share 1 EPS Dividend Yield $4.10 $0.1850 $0.1875 $0.1875 $0.1825 $0.18 $0.17 $0.16 $2.58 $0.15 $0.13 2.1% 2.2% $0.10 2023 TTM Q1'24 • Stronger capital structure allows for greater returns to shareholders 1Yield for 2023 is based on closing share price as of December 29
Slide 18: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS Tons Sold (000’s) Average Selling Price Per Ton 519 $2,709 $2,709 496 497 $2,608 478 $2,472 $2,493 450 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Gross Margin & Gross Margin, excl. LIFO Adj. EBITDA excl. LIFO & Net Income Margin %1
Slide 19: Non-GAAP Reconciliation: Adjusted EBITDA, Excl. LIFO
NON-GAAP RECONCILIATION: ADJUSTED EBITDA, EXCL. LIFO ($M) Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Tons Sold (000's) 519 496 478 450 497 Net Sales 1,406.1 1,343.5 1,246.7 1,112.4 1,239.2 Gross Profit 264.2 260.9 249.3 247.2 217.6 Gross Margin 18.8% 19.4% 20.0% 22.2% 17.6% LIFO expense (income) 4.0 (9.0) (
Slide 20: Non-GAAP Reconciliation: Adjusted Net Income
NON-GAAP RECONCILIATION: ADJUSTED NET INCOME (Dollars and shares in millions, except per share data) Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Net income (loss) attributable to Ryerson Holding Corporation $47.3 $37.6 $35.0 $25.8 ($7.6) Pension settlement loss - - - - 2.2 Benefit plan curtailment gain - - -
Slide 21: Non-GAAP Reconciliation: Net Debt
NON-GAAP RECONCILIATION: ADJUSTED NET INCOME ($M) Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Total debt $395.1 $396.1 $365.9 $436.5 $497.3 Less: cash and cash equivalents ($43.7) ($30.0) ($37.4) ($54.3) ($41.9) Net Debt $351.4 $366.1 $328.5 $382.2 $455.4 TTM Adj. EBITDA, excl. LIFO $421.5 $267.4 $233.9 $231
Slide 22: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Note: EBITDA represents net income (loss) before interest and other expense on debt, provision (benefit) for income taxes, depreciation, and amortization. Adjusted EBITDA gives further effect to, among other things, reorganization expenses, benefit plan curtailment gain, pens