Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q1 2023 Earnings Presentation
21 slides from Ryerson's earnings presentation, 2023
Slide 1: Ryerson Quarterly Release Presentation Q1 2023
Ryerson Quarterly Release Presentation 1 Q1 2023
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 2023 Highlights
Q1 2023 Highlights • Achieved Net Income attributable to Ryerson Holding Corporation of $47.3 million with Adjusted EBITDA1, excluding LIFO of $90.1 million • Earned Diluted EPS2 of $1.27 on revenue of $1.4 billion • Generated Operating Cash Flow of $80.4 million and Free Cash Flow of $52.6 million
Slide 4: Macro and Commodities
Macro and Commodities Commodity reset higher despite slowing macroeconomic conditions Commodity Prices Since Dec. 2017 U.S. Industrial Production 4.0 CRU HRC LME Nickel LME Aluminum 3.5 3.0 Prices Indexed to Dec. 2017 2.5 2.0 1.5 U.S. ISM Purchasing Managers Index 1.0 0.5 0.0 Jun-18 Sep-18 Jun-19 Se
Slide 5: Sequential Q1 2023 End-Market Trends
Sequential Q1 2023 End-Market Trends North American volumes experienced strong seasonal increase 2022 QoQ Volume Commentary Sales Mix1 Metal Fab and Machine Shop 25% Ryerson’s first quarter North American shipments reflected seasonally strong volumes, as most of Industrial Equipment 19% our end-mark
Slide 6: Q2 2023 Guidance
Q2 2023 Guidance Anticipate a solid Q2, driven by strong volumes and positive pricing momentum Diluted Earnings per Share Adj. EBITDA, Net Sales Net Income1 excl. LIFO $1.40 - 1.44B $46 - 49M $93 - 97M $5.10 $5.31 Second quarter revenue guidance of $1.40B to $1.44B $1.46 $1.48 $1.27 1.27 $1.32 assum
Slide 7: Q1 2023 Selected Financial and Operating Metrics
Q1 2023 Selected Financial and Operating Metrics Asset Management Inventory Days of Supply Cash Conversion Cycle The decrease in the Company’s cash conversion 79 77 cycle was driven by a sequential decrease in days of supply and excellent credit risk management Cash Flow Cash from operating activiti
Slide 8: Capital Allocation Plan
Capital Allocation Plan Strong free cash flow generation $95M in ’23E; Raised quarterly $70M for dividend to $0.18 modernization and per share for Q2’23 and Value-Add CAPEX DIVIDENDS M&A BUYBACKS Track record of $53M repurchased successful in ’23; Increased acquisitions authorization to supports $10
Slide 9: Capital Allocation Plan Update
Capital Allocation Plan Update Ryerson distributed its seventh quarterly cash dividend and completed ~$53.2M in share repurchases in the first quarter. On May 1, 2023, the Board of Directors approved a seventh dividend increase, raising the Company’s second quarter of 2023 dividend to $0.18 per shar
Slide 10: Q1 2023 Key Financial Metrics
Q1 2023 Key Financial Metrics Diluted Earnings Net Sales Gross Margin Net Income1 Debt per Share $1.4B 18.8% $47.3M $1.27 $395M +9.2% +610 bps +$71.4M +$1.92 +$28M QoQ QoQ QoQ QoQ QoQ Gross Margin, Adj. EBITDA Adjusted Diluted Tons Shipped Net Debt excl. LIFO excl. LIFO Earnings per Share 519k 19.1%
Slide 11: Intelligent Network of Service Centers
Intelligent Network of Service Centers • Diversified (metals mix, ~40k customers, ~75k products) • Availability, speed, ease, consistency • Hundreds of “virtual” locations • 24/7 e-commerce • Digitalized customer experience • Building the value chain of the future $1.4B $1.27 Net Sales Diluted Earni
Slide 12: Ryerson Family of Companies
RYERSON FAMILY OF COMPANIES a NS Gu G ex guy = 3) Z TURnet > TEXAS Spiengeesee Steel
Slide 13: Appendix
Appendix 13
Slide 14: Dividend Payments Trend Higher
Dividend Payments Trend Higher Stronger capital structure allows for greater returns to shareholders EPS Dividend Yield 1 Dividend per Share$0.180 $0.170 $10.21 $0.160 $0.150 $7.56 $0.125 1.8% $0.100 0.6% $0.085 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 2021 2022 1Yield for 2021 is based on actual p
Slide 15: Stronger Liquidity to Fund Operations and Investments
Stronger Liquidity to Fund Operations and Investments Liquidity remains strong and Net Debt at historic lows $507 $492 $426 $328 $351 • Leverage maintained at historic low of 0.8x $760 $894 $906 $909 $856 • Global liquidity decreased to $856M in Q1 ’23 from $909M in Q4 ’22 Q1 22 Q2 22 Q3 22 Q4 22 Q1
Slide 16: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 528 524 512 465 519 $3,312 $3,327 $3,014 $2,770 $2,709 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Gross Margin & Gross Margin, excl. LIFO Adj EBITDA, excl. LIFO & Net Income Margin %1
Slide 17: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Tons Sold (000's) 528 524 512 465 519 Net Sales 1,748.8 1,743.5 1,543.1 1,288.2 1,406.1 Gross Profit 410.1 465.9 271.0 163.1 264.2 Gross Margin 23.5% 26.7% 17.6% 12.7% 18.8% LIFO expense (income) 2.2 (73.8)
Slide 18: Non-GAAP Reconciliation: Adjusted Net Income
Non-GAAP Reconciliation: Adjusted Net Income (Dollars and shares in millions, except per share data) Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Net income (loss) attributable to Ryerson Holding Corporation1 $163.6 $196.4 $55.1 ($24.1) $47.3 Gain on sale of assets - (3.8) - - - Gain on bargain purchase - - (
Slide 19: Non-GAAP Reconciliation: Net Debt
Non-GAAP Reconciliation: Net Debt ($M) Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Total debt $551.3 $533.5 $476.9 $367.0 $395.1 Less: cash and cash equivalents ($44.7) ($41.4) ($50.9) ($39.2) ($43.7) Net Debt $506.6 $492.1 $426.0 $327.8 $351.4 TTM Adj. EBITDA, excl. LIFO $987.7 $1,014.5 $792.0 $582.0 $421.5
Slide 20: 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 21: Ryerson
RYERSON