Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q1 2020 Earnings Presentation
20 slides from Ryerson's earnings presentation, May 8, 2020
Slide 1: Ryerson Quarterly Release Presentation Q1 2020
Ryerson Quarterly Release Presentation Q1 2020 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”) and no investment decision should be made based upon the information provided herein. Ryerson
Slide 3: Q1 2020 Key Financial Metrics
Q1 2020 Key Financial Metrics Generated strong cash from operating activities, reduced net debt, and maintained strong liquidity amidst COVID-19 pandemic Cash from Gross Margin, Diluted Adjusted Adj. EBITDA, excl. Net Sales Operating excl. LIFO Earnings per Share LIFO Activities First Quarter $1.0B
Slide 4: Q1 2020 vs. Q1 2019 Financial Performance
Q1 2020 vs. Q1 2019 Financial Performance Adj. EBITDA, excl. LIFO $34M in Adj. EBITDA, excl. LIFO is a decrease year- $7M over-year of $29M, but $63M ($18M) $98M within our guidance range. $34M 2020 started out with weaker than anticipated Q1 '19 ADJ. VOLUME PRICING COGS EXPENSE Q1 '20 ADJ. volumes
Slide 5: COVID-19 Response: Dual Mandate
COVID-19 Response: Dual Mandate Health & Safety Liquidity & Recovery Capacity •COVID-19 Task Force commissioned and operating •Drew on our credit facility to increase North American •Sanitation best practices implemented in facilities cash balance to $185M •Social distancing/workspace distancing •Wo
Slide 6: Pandemic Recovery – Base Case
Pandemic Recovery – Base Case Morgan Stanley’s projected timeline and milestones for a return to work in the U.S. Act./est. new cases, U.S., non-cumulative “We believe the path to reopening the economy will likely take time. It will require turning on and off various forms of social distancing and w
Slide 7: CS&W Transformation: Q1 2020 vs. Q1 2019
CS&W Transformation: Q1 2020 vs. Q1 2019 First quarter results illustrate the year-over-year progression of management’s turnaround strategies as margins have expanded, expenses have declined, inventory levels have decreased, and the company achieved Adj. EBITDA, excl. LIFO of $3M in the first quart
Slide 8: Improved Book Value of Equity
Improved Book Value of Equity Continuing to build upon a significant equity turnaround Book Value of Equity ($M) 8 8
Slide 9: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments Ryerson has ample liquidity to fund operations throughout the COVID-19 crisis ($M) • Liquidity decreased quarter-over- quarter in Q1 ‘20 due to our opportunistic repurchase of $55M in Senior Secured Notes at an average discount to par of $98.5. • I
Slide 10: Current Asset Coverage
Current Asset Coverage Ryerson’s collateral and asset profile is much stronger compared to previous years As of June 30, 2012 ($M) As of March 31, 2016 ($M) As of March 31, 2020 ($M) 1.6x 1.6x 2.0x Collateral Coverage Collateral Coverage Collateral Coverage Total Assets Total Assets $2,219 $2,064 Ca
Slide 11: End-Market Summary
End-Market Summary • Greater exposure to commercial ground transportation, consumer durables and Industrial Metal Equipment machinery and equipment compared to Fabrication and Machine 18% aerospace, automotive and in-place construction Shop 23% tipped demand to the downside at the start of the year
Slide 12: Ryerson at a glance: years, locations, customers
178 Years 100+ Locations 40,000 Customers 70,000 Products Focused on creating great customer experiences with Speed, Scale, & Growth 12
Slide 13: Appendix
Appendix 13
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation EBITDA represents net income before interest and other expense on debt, provision (benefit) for income taxes, depreciation, and amortization. Adjusted EBITDA gives further effect to, among other things, gain on the sale of assets, impairment charges on assets, reorganization
Slide 15: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 619 623 598 541 566 $1,988 $1,934 $1,847 $1,777 $1,785 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Gross Margin & Gross Margin, excl. LIFO Adjusted EBITDA, excl. LIFO Margin % Gross Mar
Slide 16: Annual Financial Highlights
Annual Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 2,024 1,897 1,903 2,000 2,268 2,381 $1,790 $1,670 $1,503 $1,682 $1,944 $1,891 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Gross Margin & Gross Margin, excl. LIFO Adjusted EBITDA, excl. LIFO Margin % Gross Mar
Slide 17: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Tons Sold (000's) 619 623 598 541 566 Net Sales 1,230.8 1,204.9 1,104.4 961.5 1,010.3 Gross Profit 231.3 211.8 204.4 180.4 195.8 Gross Profit per Ton 374 340 342 333 346 Gross Margin 18.8% 17.6% 18.5% 18.8%
Slide 18: Non-GAAP Reconciliation: Annual
Non-GAAP Reconciliation: Annual ($M) 2014 2015 2016 2017 2018 2019 Tons Sold (000's) 2,024 1,897 1,903 2,000 2,268 2,381 Net Sales 3,622.2 3,167.2 2,859.7 3,364.7 4,408.4 4,501.6 Gross Profit 593.8 567.7 570.6 582.5 758.1 827.9 Gross Profit per Ton 293 299 300 291 334 348 Gross Margin 16.4% 17.9% 20
Slide 19: Non-GAAP Reconciliations: Adjusted Net Income & Net Debt
Non-GAAP Reconciliations: Adjusted Net Income & Net Debt (Dollars and shares in millions, except per share data) Q1 '20 Q1 '19 Q4 '19 Net income attributable to Ryerson Holding Corporation $16.4 $29.5 $26.4 Gain on sale of assets - - (20.6) Restructuring and other charges - 0.3 0.7 (Gain) loss on re
Slide 20: Ryerson
RYERSON ®©OOOO