UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 6, 2020

 

Ryerson Holding Corporation

(Exact name of registrant as specified in its charter)

 

Delaware

(State or other jurisdiction of incorporation)

001-34735

(Commission File Number)

26-1251524

(I.R.S. Employer Identification No.)

227 W. Monroe St., 27th Floor, Chicago, IL 60606

(Address of principal executive offices and zip code)

(312) 292-5000

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value, 100,000,000 shares authorized

RYI

New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

      Emerging growth company      

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   

 

 



Item 2.02.   Results of Operations and Financial Condition.

The information contained within Item 2.02 of this Form 8-K and the Exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

On May 6, 2020, Ryerson Holding Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2020. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

Item 9.01.

Financial Statements and Exhibits.

d) Exhibits

The following exhibits are furnished with this report:

 

 

 

 

Exhibit
Number

 

Exhibit Title or Description

99.1

 

Ryerson Holding Corporation press release dated May 6, 2020.

 

 



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: May 6, 2020

 

 

 

 

RYERSON HOLDING CORPORATION

 

 

By:

 

/s/ Molly D. Kannan

Name:

 

Molly D. Kannan

Title:

 

Interim Principal Financial Officer, Chief Accounting Officer and Corporate Controller

 

ryi-ex991_6.htm

Exhibit 99.1

 

Ryerson Reports First Quarter Results

Generated strong cash flows from operating activities, reduced net debt

and maintained strong liquidity amidst onset of COVID-19 pandemic

 

CHICAGO – May 6, 2020 – Ryerson Holding Corporation (NYSE: RYI), a leading value-added processor and distributor of industrial metals, today reported results for the first quarter ended March 31, 2020.

 

Q1 2020 Highlights:

Achieved Adjusted EBITDA, excluding LIFO of $34 million, within guidance range articulated in fourth quarter release

Continued to operate as an essential business while rapidly implementing our comprehensive COVID-19 response focused on the health and safety of employees as well as liquidity and recovery capacity

Generated $73 million in cash flow from operations while maintaining strong liquidity and access to cash amidst heightened COVID-19 driven market volatility

CS&W’s transformation tracked to plan with Adjusted EBITDA, excluding LIFO of $3 million in the quarter

Improved debt profile, reduced interest cost and the weighted average cost of debt capital by repurchasing $55 million of Senior Secured Notes and decreasing net debt by $30 million

 

$ in millions, tons in thousands except

average selling prices and EPS

 

 

 

 

 

 

 

 

 

Financial Highlights:

Q1 2020

 

Q1 2019

 

Q4 2019

 

 

YoY

 

QoQ

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tons Shipped

 

566

 

 

619

 

 

541

 

 

 

(8.6

%)

 

4.6

%

Revenues

$

1,010

 

$

1,231

 

$

962

 

 

 

(17.9

%)

 

5.1

%

Average selling prices

$

1,785

 

$

1,988

 

$

1,777

 

 

 

(10.2

%)

 

0.5

%

Gross Margin, excl. LIFO

 

17.4

%

 

17.2

%

 

18.1

%

 

20 bps

 

-70 bps

 

Warehousing, delivery, general, & administrative expenses

$

156

 

$

164

 

$

143

 

 

 

(4.9

%)

 

9.0

%

As a percentage of revenue

 

15.4

%

 

13.3

%

 

14.9

%

 

210 bps

 

50 bps

 

Adjusted net income

$

16

 

$

30

 

$

12

 

 

 

(47.2

%)

 

36.2

%

Diluted adjusted earnings per share

$

0.41

 

$

0.79

 

$

0.30

 

 

 

(48.1

%)

 

36.7

%

Adj. EBITDA, excl. LIFO

$

34

 

$

63

 

$

47

 

 

 

(45.4

%)

 

(26.7

%)

As a percentage of revenue

 

3.4

%

 

5.1

%

 

4.9

%

 

-170 bps

 

-150 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet and Cash Flow Highlights:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net debt

$

893

 

$

1,135

 

$

923

 

 

 

(21.3

%)

 

(3.3

%)

Net debt / LTM Adj. EBITDA, excl. LIFO

 

5.5

x

 

3.7

x

 

4.9

x

 

 

1.8

x

 

0.6

x

Days of supply

 

74

 

 

75

 

 

84

 

 

 

(1

)

 

(10

)

Net cash provided by operating activities

$

72.8

 

$

(18.5

)

$

62.6

 

 

$

91.3

 

$

10.2

 

A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included below in this news release.

 

Management Commentary

Eddie Lehner, President and Chief Executive Officer of Ryerson said, “I want to begin by first thanking all of the COVID-19 pandemic frontline workers who are tirelessly responding to the pandemic with tremendous grace and courage as they treat, care for and comfort the afflicted. I next want to thank, in these unparalleled and trying times, my Ryerson colleagues who understand the shared sacrifice required during this crisis and who have risen to the challenges imposed by the virus with grit, determination and solidarity. During the era of COVID-19, we are working in common cause and with great appreciation for our customers and suppliers as we strengthen these vital relationships and work through the complications of an economic shutdown without precedent. As an “essential business,” we are privileged and honored to be an integral part of supply chains that are providing life-saving and essential products and services that are supporting the critical and ongoing needs of society


and the economy. As we work through the acute shocks caused by the pandemic, there are three distinct periods to address: BCV (Before the Coronavirus), DCV (During the Coronavirus) and ACV (After the Coronavirus). Turning to our first quarter performance, which began BCV, we delivered commendable results during a quarter that felt like three different years compressed into three months. January started slowly given demand weakness within key original equipment manufacturer, or OEM, verticals. Then, the pandemic tidal wave which gripped China in January and February exponentially spread and paralyzed North America in March. Distilling the first quarter reflective of BCV and DCV, we prepared our organization and implemented plans, policies and practices to safeguard the health and safety of our workforce. Safety performance was excellent throughout Ryerson in the quarter, as was COVID-19 adaptiveness and responsiveness. Our operations team delivered great customer experiences safely as Ryerson operated as an essential business and our operators shone brilliantly given the challenges posed by the global and national health emergency. Ryerson executed upon organizational priorities during the quarter by repurchasing $55 million of our Senior Secured Notes at an average price below par, decreasing net debt and cash interest expense, generating significant cash flow from operating activities, and continuing to build net book value of equity. At the same time, the turnaround progress at Central Steel & Wire, or CS&W, was demonstrated in the company’s first quarter results, as carbon margins recovered to mid-cycle levels and additional post-acquisition synergies were realized. For Ryerson overall, transactional business was better than OEM program business and carbon gross margins were stronger than aluminum and stainless margins. Also affecting gross margins and Adjusted EBITDA, excluding LIFO was a mark-to-market customer hedging loss of $4.9 million, which negatively impacted gross margins, excluding LIFO by 50 basis points in the first quarter. However, this hedging loss is expected to be recovered as the physical metal ships in succeeding periods. All in all, our ability to adapt quickly to pandemic induced events and to execute DCV plans effectively is a tribute to our organization, our customers and suppliers in recognizing with clarity the gravity of circumstances created by COVID-19. Please know that our work continues indefatigably as we manage through the crisis and take the actions necessary to serve our dual mandate of safeguarding the health and safety of our employees while preserving liquidity and recovery capacity through the crisis interval and aftermath knowing that the duration of the virus and its impacts remain unknown. With respect to ACV, we remain hopeful and determined that as we collectively accelerate learnings about the virus and continue building virus response infrastructure to combat and eventually eradicate the virus, we will see societal and economic conditions normalize to the better side of current projections. We look forward to seeing all of you safe and well as we all work in common cause toward better and easier times.”

First Quarter Results

Ryerson achieved revenues of $1.01 billion in the first quarter of 2020, a decrease of 17.9 percent compared to $1.23 billion for the same period last year, with average selling prices down 10.2 percent and tons shipped down 8.6 percent. Gross margin expanded to 19.4 percent, compared to 18.8 percent in both the first and fourth quarters of 2019. Included in first quarter 2020 cost of materials sold was LIFO income of $20.2 million, compared to LIFO income of $6.5 million in the fourth quarter of 2019, and LIFO income of $20.1 million in the first quarter of 2019. Excluding LIFO, gross margin was 17.4 percent in the first quarter of 2020 compared to 18.1 percent in the fourth quarter of 2019, and 17.2 percent in the first quarter of 2019. A reconciliation of gross margin, excluding LIFO to gross margin is included below in this news release.

In the first quarter of 2020, Ryerson reduced warehousing, delivery, selling, general, and administrative expense by $8.0 million, or 4.9 percent compared to the year-ago period, driven by reductions in staffing related expenses. Warehousing, delivery, selling, general, and administrative expenses as a percentage of sales rose by 210 basis points year-over-year as revenue declines ran ahead of expense take-outs given COVID-19 impacts that subverted 2020 BCV business plan expectations around price and demand.

Net income attributable to Ryerson Holding Corporation was $16.4 million, or $0.43 per diluted share, in the first quarter of 2020 compared to $29.5 million, or $0.78 per diluted share, in the prior year period. Adjusted net income attributable to Ryerson Holding Corporation, excluding restructuring and other charges, gain or loss on retirement of debt, and the associated income taxes on these items, was $15.8 million for the first quarter of 2020, or $0.41 per diluted share compared to $29.9 million, or $0.79 per diluted share, in the prior year period. Ryerson achieved Adjusted EBITDA, excluding LIFO of $34.4 million in the first quarter of 2020, a decrease of $28.6 million compared to the first quarter of 2019, and a decrease of $12.5 million compared to the fourth quarter of 2019. A reconciliation of Adjusted net income to net income attributable to Ryerson Holding Corporation and Adjusted EBITDA, excluding LIFO to net income attributable to Ryerson Holding Corporation is included below in this news release.


Liquidity & Debt Management

At the end of the first quarter of 2020, Ryerson had 74 days of supply in inventory, down from 84 days at the end of the fourth quarter. On a same-store basis excluding CS&W, Ryerson had 72 days of inventory supply in the first quarter, compared to 81 days at the end of the fourth quarter. Working capital management in the quarter was excellent. Ryerson will continue working with customers and suppliers to bring inventories in-line with expected sharp demand declines as it moves through the second quarter while managing accounts receivable and accounts payable risk given current stresses throughout the supply chain.

Ryerson generated $72.8 million in cash from operating activities in the first quarter of 2020, compared to a use of $18.5 million in the year-ago period. Ryerson also repurchased $54.6 million of its outstanding Senior Secured Notes at an average price of $98.5. The repurchase transactions were funded through a combination of restricted cash, which is a portion of the proceeds generated through the sale-leaseback transaction completed in the fourth quarter of 2019, and the company’s unrestricted operating cash flows. As of March 31, 2020, Ryerson retained total liquidity of $396 million, compared to $439 million as of December 31, 2019.

Corporate Controller and Chief Accounting Officer Molly Kannan said, “During the first quarter, Ryerson generated significant counter-cyclical cash flow and continued to deleverage the balance sheet through repurchasing approximately $55 million of outstanding Senior Secured Notes at a discount to par value, which is expected to result in annualized interest expense savings of approximately $6.1 million. At the same time, we reduced our net debt by $30 million compared to the fourth quarter of 2019. In response to COVID-19, we are carefully monitoring our liquidity and projected working capital requirements by actively managing our receivables and payables cycles and decreasing inventory purchases and warehousing, delivery, selling, general and administrative expenses in-line with demand.”

Outlook Commentary

At this point in the second quarter, demand conditions have been impacted by temporary customer closures in-line with stay-at-home orders and virus driven demand shocks. North American April shipments trended 25 percent below March levels while the pricing environment has held up better than anticipated given faster than historical supply side responses to decreased demand as well as commodity prices that were already below their historical ten-year averages going into the pandemic.  

Due to the macroeconomic uncertainty stemming from the coronavirus pandemic and overall lack of visibility into future demand trends, metal pricing and market conditions in the end-markets in which Ryerson operates, the Company will not provide guidance for the second quarter ending June 30, 2020.

Same-store Key Financial Metrics Reconciliation

 

 

 

 

 

 

 

 

 

 

First Quarter 2020

 

$ in millions, tons in thousands

Central Steel & Wire Company

 

Ryerson Same-store

 

Ryerson Holding Corporation

 

 

 

 

 

 

 

 

 

 

 

Tons Shipped

 

76

 

 

490

 

 

566

 

Revenues

$

123

 

$

887

 

$

1,010

 

Gross Margin, excl. LIFO

 

22.9

%

 

16.6

%

 

17.4

%

Warehousing, delivery, general, & administrative expenses

$

27

 

$

129

 

$

156

 

As a percentage of revenue

 

22.0

%

 

14.5

%

 

15.4

%

Adj. EBITDA, excl. LIFO

$

3

 

$

31

 

$

34

 

As a percentage of revenue

 

2.3

%

 

3.6

%

 

3.4

%


 

First Quarter 2020 Major Product Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tons Shipped (thousands)

 

 

Average Selling Prices

 

 

Q1 2020

 

Q1 2019

 

Q4 2019

 

Year-over-year

 

Quarter-over-quarter

 

 

Year-over-year

 

Quarter-over-quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carbon Steel

 

434

 

 

474

 

 

421

 

 

(8.4

%)

 

3.1

%

 

 

(15.1

%)

 

0.8

%

Aluminum

 

52

 

 

59

 

 

50

 

 

(11.9

%)

 

4.0

%

 

 

(8.6

%)

 

(0.7

%)

Stainless Steel

 

77

 

 

80

 

 

67

 

 

(3.8

%)

 

14.9

%

 

 

(1.7

%)

 

(5.4

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales (millions)

 

 

 

 

 

 

 

 

 

Q1 2020

 

Q1 2019

 

Q4 2019

 

Year-over-year

 

Quarter-over-quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carbon Steel

$

511

 

$

657

 

$

492

 

 

(22.2

%)

 

3.9

%

 

 

 

 

 

 

 

Aluminum

$

220

 

$

273

 

$

213

 

 

(19.4

%)

 

3.3

%

 

 

 

 

 

 

 

Stainless Steel

$

263

 

$

278

 

$

242

 

 

(5.4

%)

 

8.7

%

 

 

 

 

 

 

 

 

Earnings Call Information

Ryerson will host a conference call to discuss its first quarter results Thursday, May 7, 2020 at 10 a.m. Eastern Time. Participants may access the conference call by dialing 833-241-7253 (Domestic) or 647-689-4217 (International) and using conference ID 5562325. The live online broadcast will be available on the Company’s investor relations website, ir.ryerson.com. A replay will be available at the same website for 90 days.

About Ryerson

Ryerson is a leading value-added processor and distributor of industrial metals, with operations in the United States, Canada, Mexico, and China. Founded in 1842, Ryerson has around 4,400 employees in approximately 100 locations. Visit Ryerson at www.ryerson.com.

Safe Harbor Provision

Certain statements made in this presentation and other written or oral statements made by or on behalf of the Company constitute "forward-looking statements" within the meaning of the federal securities laws, including statements regarding our future performance, as well as management's expectations, beliefs, intentions, plans, estimates, objectives, or projections relating to the future. Such statements can be identified by the use of forward-looking terminology such as “objectives,” “goals,” “preliminary,” “range,” "believes," "expects," "may," "estimates," "will," "should," "plans," or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy. The Company cautions that any such forward-looking statements are not guarantees of future performance and may involve significant risks and uncertainties, and that actual results may vary materially from those in the forward-looking statements as a result of various factors. Among the factors that significantly impact our business are: the cyclicality of our business; the highly competitive, volatile, and fragmented metals industry in which we operate; fluctuating metal prices; our substantial indebtedness and the covenants in instruments governing such indebtedness; the integration of acquired operations; regulatory and other operational risks associated with our operations located inside and outside of the United States; impacts and implications of adverse health events, including the COVID-19 pandemic; work stoppages; obligations under certain employee retirement benefit plans; the ownership of a majority of our equity securities by a single investor group; currency fluctuations; and consolidation in the metals industry. Forward-looking statements should, therefore, be considered in light of various factors, including those set forth above and those set forth under "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2019, and in our other filings with the Securities and Exchange Commission. Moreover, we caution against placing undue reliance on these statements, which speak only as of the date they were made. The Company does not


undertake any obligation to publicly update or revise any forward-looking statements to reflect future events or circumstances, new information or otherwise.

 

Media and Investor Contact:

Justine Carlson

312.292.5130

investorinfo@ryerson.com


RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES

 

Selected Income and Cash Flow Data - Unaudited

 

(Dollars and Shares in Millions, except Per Share and Per Ton Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth

 

 

 

First Quarter

 

 

Quarter

 

 

 

2020

 

 

2019

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET SALES

 

$

1,010.3

 

 

$

1,230.8

 

 

$

961.5

 

Cost of materials sold

 

 

814.5

 

 

 

999.5

 

 

 

781.1

 

Gross profit

 

 

195.8

 

 

 

231.3

 

 

 

180.4

 

Warehousing, delivery, selling, general, and administrative

 

 

155.7

 

 

 

163.7

 

 

 

142.9

 

Gain on sale of assets (1)

 

 

 

 

 

 

 

 

(20.6

)

Restructuring and other charges

 

 

 

 

 

0.3

 

 

 

0.7

 

OPERATING PROFIT

 

 

40.1

 

 

 

67.3

 

 

 

57.4

 

Other income and (expense), net

 

 

0.9

 

 

 

(0.8

)

 

 

(1.1

)

Interest and other expense on debt

 

 

(21.7

)

 

 

(23.9

)

 

 

(22.2

)

INCOME BEFORE INCOME TAXES

 

 

19.3

 

 

 

42.6

 

 

 

34.1

 

Provision for income taxes

 

 

2.9

 

 

 

13.0

 

 

 

7.7

 

NET INCOME

 

 

16.4

 

 

 

29.6

 

 

 

26.4

 

Less: Net income attributable to noncontrolling interest

 

 

 

 

 

0.1

 

 

 

 

NET INCOME ATTRIBUTABLE TO RYERSON HOLDING CORPORATION

 

$

16.4

 

 

$

29.5

 

 

$

26.4

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.43

 

 

$

0.79

 

 

$

0.70

 

Diluted

 

$

0.43

 

 

$

0.78

 

 

$

0.69

 

Shares outstanding - basic

 

 

37.8

 

 

 

37.4

 

 

 

37.8

 

Shares outstanding - diluted

 

 

38.2

 

 

 

37.8

 

 

 

38.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data :

 

 

 

 

 

 

 

 

 

 

 

 

Tons shipped  (000)

 

 

566

 

 

 

619

 

 

 

541

 

Shipping days

 

 

64

 

 

 

63

 

 

 

61

 

Average selling price/ton

 

$

1,785

 

 

$

1,988

 

 

$

1,777

 

Gross profit/ton

 

 

346

 

 

 

374

 

 

 

333

 

Operating profit/ton

 

 

71

 

 

 

109

 

 

 

106

 

LIFO income per ton

 

 

(36

)

 

 

(32

)

 

 

(12

)

LIFO income

 

 

(20.2

)

 

 

(20.1

)

 

 

(6.5

)

Depreciation and amortization expense

 

 

13.3

 

 

 

14.2

 

 

 

14.1

 

Cash flow provided by (used in) operating activities

 

 

72.8

 

 

 

(18.5

)

 

 

62.6

 

Capital expenditures

 

 

(6.9

)

 

 

(11.3

)

 

 

(13.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  In the fourth quarter of 2019, we recorded a $20.6 million gain on the sale and leaseback of a group of properties located in Arizona, Arkansas, Georgia, New York, Ohio, Texas, Virginia, and Washington with net proceeds of approximately $61.5 million.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Schedule 1 for Condensed Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

See Schedule 2 for EBITDA and Adjusted EBITDA reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

See Schedule 3 for Adjusted EPS reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

See Schedule 4 for Free Cash Flow reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 



Schedule 1

 

RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES

 

Condensed Consolidated Balance Sheets

 

(In millions, except shares and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Assets

 

(unaudited)

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

188.3

 

 

$

11.0

 

Restricted cash

 

 

16.4

 

 

 

48.8

 

Receivables, less provisions of $3.5 in 2020 and in 2019

 

 

490.7

 

 

 

425.1

 

Inventories

 

 

742.8

 

 

 

742.9

 

Prepaid expenses and other current assets

 

 

54.2

 

 

 

52.2

 

Total current assets

 

 

1,492.4

 

 

 

1,280.0

 

Property, plant, and equipment, at cost

 

 

808.2

 

 

 

806.5

 

Less: accumulated depreciation

 

 

374.5

 

 

 

366.8

 

Property, plant, and equipment, net

 

 

433.7

 

 

 

439.7

 

Operating lease assets

 

 

121.5

 

 

 

128.2

 

Other intangible assets

 

 

48.7

 

 

 

50.6

 

Goodwill

 

 

120.3

 

 

 

120.3

 

Deferred charges and other assets

 

 

2.7

 

 

 

2.7

 

Total assets

 

$

2,219.3

 

 

$

2,021.5

 

Liabilities

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

377.5

 

 

$

311.5

 

Salaries, wages, and commissions

 

 

29.9

 

 

 

35.3

 

Other accrued liabilities

 

 

83.7

 

 

 

68.0

 

Short-term debt

 

 

31.3

 

 

 

49.2

 

Current portion of operating lease liabilities

 

 

21.2

 

 

 

20.9

 

Current portion of deferred employee benefits

 

 

6.9

 

 

 

7.0

 

Total current liabilities

 

 

550.5

 

 

 

491.9

 

Long-term debt

 

 

1,064.8

 

 

 

932.6

 

Deferred employee benefits

 

 

206.4

 

 

 

217.5

 

Noncurrent operating lease liabilities

 

 

106.2

 

 

 

112.8

 

Deferred income taxes

 

 

79.5

 

 

 

65.2

 

Other noncurrent liabilities

 

 

26.5

 

 

 

22.9

 

Total liabilities

 

 

2,033.9

 

 

 

1,842.9

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Ryerson Holding Corporation stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value; 7,000,000 shares authorized and no shares issued at 2020 and 2019

 

 

 

 

 

 

Common stock, $0.01 par value; 100,000,000 shares authorized; 37,996,261 shares issued at 2020 and 2019

 

 

0.4

 

 

 

0.4

 

Capital in excess of par value

 

 

381.8

 

 

 

381.2

 

Retained earnings

 

 

116.0

 

 

 

99.6

 

Treasury stock, at cost - Common stock of 212,500 shares in 2020 and 2019

 

 

(6.6

)

 

 

(6.6

)

Accumulated other comprehensive loss

 

 

(312.2

)

 

 

(302.0

)

Total Ryerson Holding Corporation Stockholders' Equity

 

 

179.4

 

 

 

172.6

 

Noncontrolling interest

 

 

6.0

 

 

 

6.0

 

Total Equity

 

 

185.4

 

 

 

178.6

 

Total Liabilities and Stockholders' Equity

 

$

2,219.3

 

 

$

2,021.5

 


Schedule 2

 

RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES

 

Reconciliations of Net Income Attributable to Ryerson Holding Corporation to EBITDA and Gross profit to Gross profit excluding LIFO

 

(Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth

 

 

 

First Quarter

 

 

Quarter

 

 

 

2020

 

 

2019

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ryerson Holding Corporation

 

$

16.4

 

 

$

29.5

 

 

$

26.4

 

Interest and other expense on debt

 

 

21.7

 

 

 

23.9

 

 

 

22.2

 

Provision for income taxes

 

 

2.9

 

 

 

13.0

 

 

 

7.7

 

Depreciation and amortization expense

 

 

13.3

 

 

 

14.2

 

 

 

14.1

 

EBITDA

 

$

54.3

 

 

$

80.6

 

 

$

70.4

 

Gain on sale of assets

 

 

 

 

 

 

 

 

(20.6

)

Reorganization

 

 

0.8

 

 

 

0.9

 

 

 

2.4

 

Foreign currency transaction (gains) losses

 

 

(0.1

)

 

 

0.6

 

 

 

(0.1

)

(Gain) loss on retirement of debt

 

 

(0.8

)

 

 

0.2

 

 

 

 

Purchase consideration and other transaction costs

 

 

0.4

 

 

 

0.9

 

 

 

1.3

 

Other adjustments

 

 

 

 

 

(0.1

)

 

 

 

Adjusted EBITDA

 

$

54.6

 

 

$

83.1

 

 

$

53.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

54.6

 

 

$

83.1

 

 

$

53.4

 

LIFO income

 

 

(20.2

)

 

 

(20.1

)

 

 

(6.5

)

Adjusted EBITDA, excluding LIFO income

 

$

34.4

 

 

$

63.0

 

 

$

46.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,010.3

 

 

$

1,230.8

 

 

$

961.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA, excluding LIFO income, as a percentage of net sales

 

 

3.4

%

 

 

5.1

%

 

 

4.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

195.8

 

 

$

231.3

 

 

$

180.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

19.4

%

 

 

18.8

%

 

 

18.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

195.8

 

 

$

231.3

 

 

$

180.4

 

LIFO income

 

 

(20.2

)

 

 

(20.1

)

 

 

(6.5

)

Gross profit, excluding LIFO income

 

$

175.6

 

 

$

211.2

 

 

$

173.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin, excluding LIFO income

 

 

17.4

%

 

 

17.2

%

 

 

18.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 


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, gain on the sale of assets, impairment charges on assets, reorganization expenses, gain or loss on retirement of debt, and foreign currency transaction gains and losses. We believe that the presentation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA, excluding LIFO income, provides useful information to investors regarding our operational performance because they enhance an investors overall understanding of our core financial performance and provide a basis of comparison of results between current, past, and future periods. We also disclose the metric Adjusted EBITDA, excluding LIFO income, to provide a means of comparison amongst our competitors who may not use the same basis of accounting for inventories. EBITDA, Adjusted EBITDA, and Adjusted EBITDA, excluding LIFO income, are three of the primary metrics management uses for planning and forecasting in future periods, including trending and analyzing the core operating performance of our business without the effect of U.S. generally accepted accounting principles, or GAAP, expenses, revenues, and gains (losses) that are unrelated to the day to day performance of our business. We also establish compensation programs for our executive management and regional employees that are based upon the achievement of pre-established EBITDA, Adjusted EBITDA, and Adjusted EBITDA, excluding LIFO income, targets. We also use EBITDA, Adjusted EBITDA, and Adjusted EBITDA, excluding LIFO income, to benchmark our operating performance to that of our competitors. EBITDA, Adjusted EBITDA, and Adjusted EBITDA, excluding LIFO income, do not represent, and should not be used as a substitute for, net income or cash flows from operations as determined in accordance with generally accepted accounting principles, and neither EBITDA, Adjusted EBITDA, and Adjusted EBITDA, excluding LIFO income, is necessarily an indication of whether cash flow will be sufficient to fund our cash requirements. This release also presents gross margin, excluding LIFO income, which is calculated as gross profit minus LIFO income, divided by net sales. We have excluded LIFO income from gross margin and Adjusted EBITDA as a percentage of net sales metrics in order to provide a means of comparison amongst our competitors who may not use the same basis of accounting for inventories as we do. Our definitions of EBITDA, Adjusted EBITDA, Adjusted EBITDA, excluding LIFO income, gross margin, excluding LIFO income, and Adjusted EBITDA, excluding LIFO income, as a percentage of sales may differ from that of other companies.

 

 



Schedule 3

 

RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES

 

Reconciliation of Net Income and Earnings per Share to Adjusted Net Income and Adjusted Earnings per Share

 

(Dollars and Shares in Millions, Except Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth

 

 

 

First Quarter

 

 

Quarter

 

 

 

2020

 

 

2019

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 retirement of debt

 

 

(0.8

)

 

 

0.2

 

 

 

 

Provision (benefit) for income taxes

 

 

0.2

 

 

 

(0.1

)

 

 

5.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income attributable to Ryerson Holding Corporation

 

$

15.8

 

 

$

29.9

 

 

$

11.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted adjusted earnings per share

 

$

0.41

 

 

$

0.79

 

 

$

0.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding - diluted

 

 

38.2

 

 

 

37.8

 

 

 

38.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: Adjusted net income and Adjusted earnings per share is presented to provide a means of comparison with periods that do not include similar adjustments.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule 4

 

RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES

 

Cash Flow from Operations to Free Cash Flow Yield

 

(Dollars in Millions)

 

 

 

 

 

 

 

 

 

 

 

Fourth

 

 

 

First Quarter

 

 

Quarter

 

 

 

2020

 

 

2019

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

72.8

 

 

$

(18.5

)

 

$

62.6

 

Capital expenditures

 

 

(6.9

)

 

 

(11.3

)

 

 

(13.3

)

Proceeds from sales of property, plant, and equipment

 

 

 

 

 

8.5

 

 

 

61.6

 

Free cash flow

 

$

65.9

 

 

$

(21.3

)

 

$

110.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market capitalization

 

$

201.0

 

 

$

320.6

 

 

$

447.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow yield

 

 

32.8

%

 

 

(6.6

%)

 

 

24.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: Market capitalization is calculated using March 31, 2020, December 31, 2019, and March 31, 2019 stock prices and shares outstanding.