Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q2 2021 Earnings Presentation
21 slides from Ryerson's earnings presentation, August 2021
Slide 1: Ryerson Quarterly Release Presentation
Ryerson Quarterly Release Presentation 1 Q2 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: Q2 2021 Highlights
Q2 2021 Highlights • Generated second quarter revenues of $1.4 billion • Generated earnings per diluted share of $2.91 • Achieved record Adjusted EBITDA , excluding LIFO of $197 million • Reduced net debt to $563 million and achieved leverage ratio of 1.5x, within long-term target range • Net cash c
Slide 4: New Capital Allocation Plan
New Capital Allocation Plan On August 4th, Ryerson announced the initiation of a quarterly cash dividend of $0.08 per share, or $0.32 annually*, to be paid on September 16th to shareholders as of August 16th. Ryerson also announced its authorization to repurchase $50M in outstanding shares over the
Slide 5: Macro & Commodities
Macro & Commodities Pricing conditions remain elevated while demand indicators continue to show strength Commodity Prices Since Dec. 2017 U.S. Industrial Production 17.5 16.1 9.8 CRU HRC 1.5 LME Nickel Prices Indexed to Dec. 2017 2.6 LME Aluminum (0.8) (0.8) (0.2) (1.7) (3.3) (4.7) (4.7) (4.7) (4.9)
Slide 6: Sequential Q2 2021 End-Market Trends
Sequential Q2 2021 End-Market Trends Q2 North American per day volume improvement strongest in industrial equipment, ground transportation and food & agriculture sectors 2020 QoQ Volume Commentary Sales Mix Metal Fab and Machine Shop 25% Shipments improved in our industrial equipment, commercial gro
Slide 7: Third Quarter Guidance
Third Quarter Guidance Ryerson anticipates reporting another strong quarter with continued revenue growth Diluted Earnings per Share Net Sales Adj. EBITDA, excl. LIFO $1.5-1.6B $208-212M +6-13% vs. Q2 ’21 +$11-15M vs. Q2 ‘21 $2.91 Third quarter revenue guidance of $1.5B to 1.6B assumes $1.68 sequent
Slide 8: Q2 2021 Selected Financial and Operating Metrics Update
Q2 2021 Selected Financial and Operating Metrics Update Asset Management Inventory Days of Supply Cash Conversion Cycle Ryerson’s cash conversion cycle remains at a 63 55 historically low level Cash Flow Free Cash Flow Free Cash Flow Yield Strong free cash flow generation driven by $126M 23% proceed
Slide 9: Exercising Optional Redemption Features
Exercising Optional Redemption Features Ryerson has driven down net debt and fixed cash commitments as part of its financial transformation strategy significantly reducing annual interest payments Reduced Net Debt ($M) Reduced Interest 2012 2016 2020 Refinance Current Refinance Refinance Principal
Slide 10: Q2 2021 Key Financial Metrics
Q2 2021 Key Financial Metrics Record results, significant leverage reductions ongoing, legacy liability de-risking continuing, dividend and share repurchase plans established Net Debt / Adj. Gross Margin, Adjusted Diluted Adj. EBITDA, excl. Net Sales EBITDA, excl. excl. LIFO Earnings per Share LIFO
Slide 11: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments Ryerson’s North American availability increased significantly again in the second quarter Ryerson’s global liquidity rose during the period from $583M as of March 31, 2021 to $890M as of June 30, 2021 driven by rising Adjusted EBITDA, excluding LIF
Slide 12: Intelligently Connected Network of Service Centers
Intelligently Connected Network of Service Centers 179 Years 97 Locations 40,000 Customers 75,000 Products Focused on creating great customer experiences at Speed, Scale, & Consistency The Ryerson Customer 12 Experience Eco-System
Slide 13: Appendix
Appendix 13
Slide 14: Q2 2021 vs. Q1 2021 Financial Performance
Q2 2021 vs. Q1 2021 Financial Performance Adj. EBITDA, excl. LIFO $239.8M $167.5M $197M in Adj. EBITDA, excl. LIFO is an increase quarter-over-quarter of $74M driven by higher average selling prices and $6.3M volumes. This was partially offset by higher cost of $7.9M goods sold and higher $197.4M ex
Slide 15: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 462 489 492 543 559 $1,671 $1,700 $1,734 $2,113 $2,538 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Gross Margin & Gross Margin, excl. LIFO Adjusted EBITDA, excl. LIFO Margin % Gross Mar
Slide 16: Earnings & Operating Cash Flow per Diluted Share
Earnings & Operating Cash Flow per Diluted Share Ryerson generated significant EPS in the second quarter of 2021 while using less cash flow from operations compared to the third quarter of 2018 which is a relevant comparison from the last cyclical upturn of 2016-2018. 16 16
Slide 17: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Tons Sold (000's) 623 598 541 566 462 489 492 543 559 Net Sales 1,204.9 1,104.4 961.5 1,010.3 771.8 831.5 853.0 1,147.3 1,419.0 Gross Profit 211.8 204.4 180.4 195.8 115.5 155.9 15
Slide 18: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Q2 2021 net income includes a gain of $87.4M related to property sales. Adjusting to remove this gain and the associated income taxes, Ryerson generated net income of $47.9M, or $1.24 per diluted share. (Dollars and shares in millions, except per share data) Q2 '20
Slide 19: 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 Ryerson Holding Corporation Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 $M except Tons Sold & ASP Net Sales $1,010.4 $771.8 $831.5 $853.0 $1,147.3 $1,419.0 Warehousing, delivery, selling, general and administrative expenses $
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 sale of assets, gain or loss on retirement o
Slide 21: RYERSON
RYERSON ®OOO