Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q3 2024 Earnings Presentation
23 slides from Ryerson's earnings presentation, Oct 30, 2024
Slide 1: Ryerson Quarterly Release Presentation Q3 2024
Ryerson Quarterly Release Presentation Q3 2024 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”) or its subsidiaries and no investment decision should be made based upon the information provi
Slide 3: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS • Generated $1.13 billion of revenue from 485,000 tons shipped and average selling price of $2,323 per ton • Incurred Net Loss attributable to Ryerson Holding Corporation of $6.6 million, or Diluted Loss Per Share of $0.20 and Adjusted EBITDA1, excluding LIFO of $21.0 million as c
Slide 4: University Park Productivity
UNIVERSITY PARK PRODUCTIVITY Productivity CS&W Kedzie CS&W University Park 1.4x 1.2x Investment Thesis 1.0x Ryerson Average 0.8x 0.6x 0.4x 0.2x 0.0x 2023 1Q24 2Q24 3Q24 4Q24E Productivity is measured in lines per hour 4
Slide 5: Next Phase Target Sequence
NEXT PHASE TARGET SEQUENCE PHASE 1 PHASE 2 PHASE 3 De-lever Invest in modernization and Market Share from high-yield debt automation Expansion vs MSCI Monetize Optimize network to Margin Accretion legacy assets increase efficient operating led by value-added and leverage transactional sales Re-ori
Slide 6: Macro & Commodities
MACRO & COMMODITIES Commodity Prices Since Dec. 2017 U.S. Industrial Production 3.5 CRU HRC 0.8 0.8 LME Aluminum 0.1 3.0 LME Nickel (0.2) (0.2) (0.1) (0.2) (0.3) (0.5) (0.6) (0.8) (0.8) 2.5 (1.2) Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 2.0 1.5 1.0 Futures 0.5 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec
Slide 7: Sequential End-Market Trends
SEQUENTIAL END-MARKET TRENDS 2023 QoQ Volume Sales Mix1 Commentary Ryerson’s third quarter North Metal Fab and Machine Shop 25% American shipments reflected Industrial Equipment seasonal slowdown in 17% customer buying patterns as Commercial Ground Transportation well as slowdown in demand 17% from
Slide 8: Q4 2024 Guidance
Q4 2024 GUIDANCE Diluted Earnings (loss) per Share Adj. EBITDA, Net Sales Net Loss1 excl. LIFO $1.00 - 1.04B $(17) – (16)M $10 - 12M $0.74 $0.73 $0.29 $0.33 ($0.22) (0.18) ($0.20) ($0.20) Fourth quarter revenue guidance of $1.00B to $1.04B assumes: ($0.50) • Average Selling Prices between (1%) to 1%
Slide 9: Financial and Operating Metrics
FINANCIAL AND OPERATING METRICS Asset Management Inventory Days of Cash Conversion The Company’s cash conversion cycle increased Supply Cycle sequentially due to an increase in days of sales outstanding and a decrease in days payables outstanding, 80 79 partially offset by a decrease in inventory da
Slide 10: Liquidity and Leverage
LIQUIDITY AND LEVERAGE • Net Leverage of 3.8x in Q3 ’24 above target leverage range of 0.5x to 2.0x $497 $487 $382 $455 $329 • Global liquidity remained strong at $491M $807 $656 $684 $585 $491 in Q3 ’24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Liquidity Net Debt $807 37 $656 $684 45 $585 54 42 $491 42 45 28 4
Slide 11: Capital Allocation Plan
CAPITAL ALLOCATION PLAN LTM1 free cash flow generation $32M in Q3’24; Quarterly $110M in ’24E dividend Modernization and of $0.1875 and Value-Add per share for Q4’24 CAPEX DIVIDENDS M&A BUYBACKS Track record of $36M repurchased successful in Q3’24; $38M acquisitions remaining in authorization Suppor
Slide 12: Shareholder Returns
SHAREHOLDER RETURNS $0.1875 and $36.0M per Share Share repurchases completed in Return of capital to investors Q3 2024 Q4 2024 Announced: $0.1875 Ryerson’s dividend is enabled by a transformed balance sheet and per Share continued prioritization of Return of capital to investors shareholder returns
Slide 13: Q3 2024 Key Financial Metrics
Q3 2024 KEY FINANCIAL METRICS Diluted Loss Net Sales Gross Margin Net Loss1 Debt per Share $1.1B 17.9% ($6.6)M ($0.20) $522M (8.1%) -30 bps ($16.5M) ($0.49) ($3M) QoQ QoQ QoQ QoQ QoQ Gross Tons Adj. EBITDA Adjusted Diluted Margin, excl. Net Debt Shipped excl. LIFO Loss per Share LIFO 485k 16.3% $21.
Slide 14: Intelligent Network
INTELLIGENT NETWORK • Diversified (metals mix, ~40k customers, ~75k products) • Availability, speed, ease, consistency • Over 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: Launched Ryerson.com 3.0
LAUNCHED RYERSON.COM 3.0 • Investing in digitalization to improve the customer experience 15
Slide 16: Ryerson Family of Companies
RYERSON FAMILY OF COMPANIES S z- Hucison G W |P Frere aia ‘@ sUNBETT. : : mp 7 < Ne & sta ©, ies oe (A, BLP Xx FARELIO. fay since GUY
Slide 17: Appendix
Appendix
Slide 18: 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 19: Dividend Payments
DIVIDEND PAYMENTS 1 EPS Dividend Yield 2 Dividend per Share $4.10 $0.1850 $0.1875$0.1875 $0.1875$0.1875 $0.1825 $0.18 3.8% $0.17 2.1% $0.16 $0.61 $0.15 2023 TTM Q3'24 Q3-22Q4-22Q1-23Q2-23Q3-23Q4-23Q1-24Q2-24Q3-24Q4-24 • Stronger capital structure allows for greater returns to shareholders 1EPS is Di
Slide 20: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS Tons Sold (000’s) Average Selling Price Per Ton 497 508 $2,608 478 485 $2,472 $2,493 450 $2,412 $2,323 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Gross Margin & Gross Margin, excl. LIFO Adj. EBITDA excl. LIFO & Net Income (Loss) Mar
Slide 21: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
NON-GAAP RECONCILIATION: ADJUSTED EBITDA, EXCL. LIFO ($M) Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Tons Sold (000's) 478 450 497 508 485 Net Sales 1,246.7 1,112.4 1,239.2 1,225.5 1,126.6 Gross Profit 249.3 247.2 217.6 223.5 202.0 Gross Margin 20.0% 22.2% 17.6% 18.2% 17.9% LIFO expense (income) (33.4) (59.
Slide 22: Non-GAAP Reconciliation: Adjusted Net Income (Loss)
NON-GAAP RECONCILIATION: ADJUSTED NET INCOME (LOSS) (Dollars and shares in millions, except per share data) Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Net income (loss) attributable to Ryerson Holding Corporation $35.0 $25.8 ($7.6) $9.9 ($6.6) Restructuring and other charges - - - 1.7 1.1 Gain on insurance
Slide 23: Non-GAAP Reconciliation: Net Debt
NON-GAAP RECONCILIATION: NET DEBT ($M) Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Total debt $365.9 $436.5 $497.3 $525.4 $522.1 Less: cash and cash equivalents ($37.4) ($54.3) ($41.9) ($28.0) ($35.0) Net Debt $328.5 $382.2 $455.4 $497.4 $487.1 TTM Adj. EBITDA, excl. LIFO $233.9 $231.1 $181.2 $153.7 $129.7 N