CHICAGO, Nov. 7, 2017 /PRNewswire/ -- Ryerson Holding
Corporation (NYSE: RYI), a leading value-added processor and
distributor of industrial metals, today reported results for the
third quarter ended September 30,
2017.
Eddie Lehner, Ryerson's President
and Chief Executive Officer, said, "As Ryerson celebrates our
175th anniversary as an iconic industrial metals
distribution and processing company on November 19th, we thank every customer we have
had the privilege to serve since 1842. We look forward to
providing excellent customer experiences for many years to come.
Within Ryerson, we are making meaningful progress across all facets
of our strategic plan, and we see
encouraging macroeconomic growth trends within the
manufacturing sector and improving metal
supply pricing dynamics. As expected and noted in our
third quarter guidance, soft demand in July, margin compression
troughs in August, and business interruptions in September were a
drag on earnings. Irrespective of these
conditions, we continued to grow our market share compared
to MSCI industry metrics and
maintained industry-leading expense and working capital ratios.
Moving beyond the inverted margin
outcomes driven by supply side distortions in commodity prices,
wide domestic to international
price spreads and metal import surges that
characterized the third quarter, we move into the fourth quarter, observing improving industry fundamentals
around supply, demand, and pricing."
Third Quarter 2017 Financial Results
Revenues were $864.2 million for
the third quarter of 2017, down 1.3 percent from the second quarter
of 2017 and up 17.6 percent from the year-ago quarter. Tons sold
decreased by 0.6 percent in the third quarter of 2017 compared to
the prior quarter and increased 7.3
percent compared to the year-ago period. Additionally, average
selling prices per ton decreased 0.7 percent in the current quarter
compared to the prior quarter but increased 9.6 percent compared to
the third quarter of 2016.
Ryerson's gross margin was 16.8 percent for the third quarter of
2017, compared to 16.0 percent in the second quarter of 2017 and
19.8 percent in the year-ago period. Included in cost of materials
sold was LIFO income of $1.7 million
for the current quarter, compared to LIFO expense of $14.2 million for the second quarter of 2017 and
net LIFO expense of $1.4 million in
the third quarter of 2016. Gross margin, excluding LIFO decreased
to 16.6 percent for the third quarter of 2017, compared to 17.7
percent in the second quarter of 2017 and 20.0 percent in the
year-ago period. Average inventory costs rose while Ryerson's
average selling prices fell in the third quarter of 2017 leading to
margin compression. A reconciliation of gross margin to gross
margin, excluding LIFO is included below in this news release.
Warehousing, delivery, selling, general and administrative
expense increased by $2.5 million, or
2.1 percent for the third quarter of 2017 compared to the second
quarter of 2017. Compared to the year-ago period, expenses
increased by $10.1 million, or 9.3
percent. Ryerson demonstrated expense leverage in the third quarter
of 2017 as warehousing, delivery, selling, general and
administrative expenses declined to 13.8 percent of sales, even
with negative impacts from hurricanes and Canada's SAP conversion, compared to 14.8
percent in third quarter of 2016.
Net income attributable to Ryerson Holding Corporation was
$1.7 million, or $0.05 per diluted share, for the third quarter of
2017, compared to net income of $0.6
million, or $0.02 per diluted
share, in the second quarter of 2017, and $8.2 million, or $0.23 per diluted share, in the third quarter of
2016. Excluding restructuring and other charges and loss on
retirement of debt, net income attributable to Ryerson Holding
Corporation in the third quarter of 2016 was $10.0 million, or $0.28 per diluted share.
Adjusted EBITDA, excluding LIFO was $37.7
million in the third quarter of 2017, compared to
$51.5 million in the prior quarter
and $48.8 million in the year-ago
period. Reconciliations of Adjusted EBITDA, excluding LIFO and net
income attributable to Ryerson Holding Corporation and earnings per
share, excluding restructuring and other charges, impairment
charges on assets, and losses on retirement of debt to net income
attributable to Ryerson Holding
Corporation, are included below in
this news release.
Nine Months Ended September 30,
2017, Financial Results
Revenues for the first nine months of 2017 were $2.6 billion, up 17.3 percent from the first nine
months of 2016, as tons shipped increased 4.6 percent and average
selling prices per ton increased 12.2 percent. Year-to-date,
Ryerson shipments have outpaced the industry as measured by MSCI,
which grew 3.0 percent through the first nine months of 2017.
Net income attributable to Ryerson Holding Corporation was
$17.1 million, or $0.46 per diluted share, in the first nine months
of 2017 compared to $27.3 million, or
$0.82 per diluted share, for the same
period of 2016. Excluding restructuring and other charges,
impairment charges on assets, and losses on retirement of debt, net
income attributable to Ryerson Holding Corporation was $35.1 million, or $1.05 per diluted share, in the first nine months
of 2016.
Adjusted EBITDA, excluding LIFO increased 1.1 percent to
$143.5 million in the first nine
months of 2017 compared to $142.0
million in the first nine months of 2016. Reconciliations of
Adjusted EBITDA, excluding LIFO and net income attributable to
Ryerson Holding Corporation and earnings per share, excluding
restructuring and other charges, impairment charges on assets, and
losses on retirement of debt to net income attributable to
Ryerson Holding Corporation, are included below in this news
release.
Working Capital and Liquidity Management
In the third quarter of 2017, Ryerson's inventory balance stood
at 74 days of supply compared to 69 days in the second quarter of
2017 and 78 days in the year-ago period. Additionally, Ryerson
maintained abundant liquidity to finance growth in the third
quarter of 2017. As of September 30,
2017, borrowings were $385
million on our primary revolving credit facility with
additional availability of $291
million. Including cash, marketable securities, and
availability from foreign sources, Ryerson's total liquidity was
$355 million compared to $326 million in the second quarter of 2017.
Cash used in operating activities increased to $93 million for the first nine months of 2017
compared to $23 million in the first
nine months of 2016, primarily due to higher valued inventory and
receivables. Erich Schnaufer,
Ryerson's Chief Financial Officer,
said, "Given the normal seasonal volume declines expected in the
fourth quarter compared to the third quarter, Ryerson expects to
align inventories to demand to generate cash flows in the fourth
quarter."
Fourth Quarter 2017 Commentary
Global supply and demand fundamentals appear stronger heading
into the fourth quarter compared to the first nine months of 2017,
as supply-side reforms in China, a
weaker U.S. dollar, and lower domestic import levels support
stronger pricing conditions in the U.S. Additionally, chrome
pricing resets and recent resurgent nickel prices, along with
recent mill carbon hot-rolled coil price increases, should lend further support
and stabilization to average industry selling prices. Demand
remains positive for most of our key end markets compared to last
year, and Ryerson anticipates these conditions to continue into the
fourth quarter, offset by normal seasonal declines with fewer
shipping days and winter holiday seasonality. Given the supply and
demand factors discussed, Ryerson anticipates margins to expand
into the fourth quarter 2017.
Third Quarter 2017
Business Metrics
|
|
|
Third
Quarter 2017
|
Second
Quarter
2017
|
Third
Quarter
2016
|
Sequential
Quarter Change
|
Year-Over-Year
Change
|
Tons shipped (In
thousands)
|
515
|
518
|
480
|
-0.6%
|
7.3%
|
|
Average selling
price/ton
|
$1,678
|
$1,690
|
$1,531
|
-0.7%
|
9.6%
|
Average
cost/ton
|
1,396
|
1,419
|
1,228
|
-1.6%
|
13.7%
|
Average cost/ton,
excluding LIFO
|
1,399
|
1,392
|
1,225
|
0.5%
|
14.2%
|
Third Quarter 2017
Major Product Metrics
|
|
|
Tons Shipped (Tons
in thousands)
|
Average Selling
Price per
Ton Shipped
|
|
Third Quarter
2017
|
Second
Quarter
2017
|
Third
Quarter
2016
|
Sequential
Quarter
Change
|
Year-
Over-
Year
Change
|
Sequential
Quarter
Change
|
Year-Over-
Year Change
|
Carbon
steel
|
387
|
390
|
361
|
-0.8%
|
7.2%
|
-0.1%
|
10.4%
|
Aluminum
|
53
|
52
|
48
|
1.9%
|
10.4%
|
0.2%
|
3.3%
|
Stainless
steel
|
73
|
74
|
67
|
-1.4%
|
9.0%
|
-3.9%
|
10.6%
|
|
Net Sales (Dollars
in millions)
|
|
Third
Quarter
2017
|
Second
Quarter
2017
|
Third
Quarter
2016
|
Sequential
Quarter
Change
|
Year-Over- Year
Change
|
Carbon
steel
|
$439
|
$443
|
$371
|
-0.9%
|
18.3%
|
Aluminum
|
195
|
191
|
171
|
2.1%
|
14.0%
|
Stainless
steel
|
217
|
229
|
180
|
-5.2%
|
20.6%
|
Nine Months Ended
September 30, 2017, Business Metrics
|
|
|
Nine Months Ended
September 30, 2017
|
Nine Months Ended
September 30, 2016
|
Year-Over-Year
Change
|
Tons shipped (In
thousands)
|
1,530
|
1,463
|
4.6%
|
|
Average selling
price/ton
|
$1,669
|
$1,488
|
12.2%
|
Average
cost/ton
|
1,377
|
1,176
|
17.1%
|
Average cost/ton,
excluding LIFO
|
1,369
|
1,190
|
15.0%
|
|
|
|
|
|
Nine Months Ended
September 30, 2017, Major Product
Metrics
|
|
|
Tons Shipped (Tons
in thousands)
|
Average
Selling
Price per Ton
Shipped
|
|
Nine Months Ended
September 30, 2017
|
Nine Months Ended
September 30, 2016
|
Year-Over-Year
Change
|
Year-Over-Year
Change
|
Carbon
steel
|
1,151
|
1,112
|
3.5%
|
14.4%
|
Aluminum
|
155
|
145
|
6.9%
|
1.6%
|
Stainless
steel
|
218
|
198
|
10.1%
|
14.3%
|
|
|
|
|
|
|
|
Sales (Dollars in
millions)
|
|
Nine Months Ended
September 30, 2017
|
Nine Months Ended
September 30, 2016
|
Year-Over-Year Change
|
Carbon
steel
|
$1,289
|
$1,089
|
18.4%
|
Aluminum
|
566
|
521
|
8.6%
|
Stainless
steel
|
662
|
526
|
25.9%
|
Earnings Call Information
Ryerson will host a conference call to discuss its third quarter
2017 results Wednesday, November 8,
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 88577582.
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 employs around
3,600 employees in approximately 100 locations. Visit Ryerson at
www.ryerson.com.
Safe Harbor Provision
Certain statements made in this press release 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, or projections relating to the
future. Such statements can be identified by the use of
forward-looking terminology such as "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 the metals
distribution industry and our business are: the cyclicality of our
business; the highly competitive, volatile, and fragmented market
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; 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 producer 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, 2016, 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.
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
First Nine Months
Ended
|
|
|
|
|
|
|
|
Third
|
|
Second
|
|
Third
|
|
September
30,
|
|
|
|
|
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
|
|
$
864.2
|
|
$
875.4
|
|
$ 735.1
|
|
$
2,554.1
|
|
$
2,177.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of materials
sold
|
|
719.2
|
|
735.0
|
|
589.7
|
|
2,108.1
|
|
1,721.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
145.0
|
|
140.4
|
|
145.4
|
|
446.0
|
|
456.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warehousing,
delivery, selling, general and administrative
|
|
119.2
|
|
116.7
|
|
109.1
|
|
353.2
|
|
331.5
|
|
Restructuring and
other charges
|
|
-
|
|
-
|
|
2.5
|
|
-
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
25.8
|
|
23.7
|
|
33.8
|
|
92.8
|
|
122.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income and
(expense), net (1)
|
|
(1.4)
|
|
(0.9)
|
|
(0.2)
|
|
(2.0)
|
|
(13.2)
|
|
Interest and other
expense on debt
|
|
(23.2)
|
|
(22.8)
|
|
(23.6)
|
|
(67.8)
|
|
(67.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
1.2
|
|
-
|
|
10.0
|
|
23.0
|
|
41.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
(0.7)
|
|
(0.8)
|
|
1.6
|
|
5.3
|
|
14.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
|
1.9
|
|
0.8
|
|
8.4
|
|
17.7
|
|
27.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interest
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.6
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO RYERSON HOLDING CORPORATION
|
|
$
1.7
|
|
$
0.6
|
|
$
8.2
|
|
$
17.1
|
|
$
27.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
0.05
|
|
$
0.02
|
|
$
0.23
|
|
$
0.46
|
|
$
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
basic
|
|
37.2
|
|
37.2
|
|
35.8
|
|
37.2
|
|
33.3
|
Shares outstanding -
diluted
|
|
37.3
|
|
37.3
|
|
36.0
|
|
37.3
|
|
33.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons shipped
(000)
|
|
|
515
|
|
518
|
|
480
|
|
1,530
|
|
1,463
|
|
Shipping
days
|
|
|
63
|
|
64
|
|
64
|
|
191
|
|
192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price/ton
|
|
$
1,678
|
|
$
1,690
|
|
$ 1,531
|
|
$
1,669
|
|
$
1,488
|
|
Gross
profit/ton
|
|
|
282
|
|
271
|
|
303
|
|
292
|
|
312
|
|
Operating
profit/ton
|
|
|
50
|
|
46
|
|
70
|
|
61
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
(income), net per ton
|
|
(3)
|
|
27
|
|
3
|
|
8
|
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
(income), net
|
|
$
(1.7)
|
|
$
14.2
|
|
$
1.4
|
|
$
11.8
|
|
$
(20.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
11.9
|
|
11.5
|
|
10.2
|
|
34.1
|
|
31.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities
|
|
(12.2)
|
|
(48.6)
|
|
(25.5)
|
|
(93.3)
|
|
(22.9)
|
|
Capital
expenditures
|
|
|
(5.6)
|
|
(6.2)
|
|
(6.4)
|
|
(15.8)
|
|
(19.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The first nine months
of 2016 includes a loss of $7.2 million on the repurchase of debt
and an other-than-temporary impairment charge of $2.8 million
related to our investment in an available-for-sale
security.
|
|
|
|
See Schedule 1 for
Condensed Consolidated Balance Sheets
|
|
See Schedule 2 for
EBITDA and Adjusted EBITDA reconciliation
|
|
See Schedule 3 for
EPS reconciliation.
|
Schedule
1
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
(In millions, except
shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
Assets
|
|
|
|
|
(unaudited)
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
73.6
|
|
$
80.7
|
|
|
Restricted
cash
|
|
|
1.3
|
|
1.0
|
|
|
Receivable, less
provision for allowances, claims and
doubtful accounts of
$5.6 in 2017 and $4.6 in 2016
|
|
425.4
|
|
326.0
|
|
|
Inventories
|
|
|
691.7
|
|
563.4
|
|
|
Prepaid expenses and
other current assets
|
|
30.7
|
|
26.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
1,222.7
|
|
997.8
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, at cost
|
|
727.6
|
|
668.7
|
|
Less: accumulated
depreciation
|
|
309.7
|
|
280.5
|
|
|
Property, plant and
equipment, net
|
|
417.9
|
|
388.2
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
8.6
|
|
24.4
|
|
Other intangible
assets
|
|
48.5
|
|
40.8
|
|
Goodwill
|
|
|
|
115.3
|
|
103.2
|
|
Deferred charges and
other assets
|
|
4.3
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
$
1,817.3
|
|
$
1,558.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$
362.5
|
|
$
230.4
|
|
|
Salaries, wages and
commissions
|
|
38.0
|
|
36.8
|
|
|
Other accrued
liabilities
|
|
62.0
|
|
37.7
|
|
|
Short-term
debt
|
|
|
20.2
|
|
19.2
|
|
|
Current portion of
deferred employee benefits
|
|
8.3
|
|
8.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
491.0
|
|
332.4
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
1,021.4
|
|
944.3
|
|
Deferred employee
benefits
|
|
261.1
|
|
298.8
|
|
Other noncurrent
liabilities
|
|
58.2
|
|
32.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,831.7
|
|
1,608.0
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Ryerson Holding
Corporation stockholders' equity (deficit):
|
|
|
|
|
|
|
Preferred stock,
$0.01 par value; 7,000,000 shares authorized and no shares
issued at 2017 and 2016
|
|
-
|
|
-
|
|
|
Common stock, $0.01
par value; 100,000,000 shares authorized; 37,421,081 and
37,345,117 shares issued at 2017 and 2016, respectively
|
|
0.4
|
|
0.4
|
|
|
Capital in excess of
par value
|
|
376.9
|
|
375.4
|
|
|
Accumulated
deficit
|
|
(95.1)
|
|
(112.2)
|
|
|
Treasury stock, at
cost - Common stock of 212,500 shares in 2017 and 2016
|
|
(6.6)
|
|
(6.6)
|
|
|
Accumulated other
comprehensive loss
|
|
(292.4)
|
|
(307.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Ryerson Holding
Corporation Stockholders' Equity (Deficit)
|
|
(16.8)
|
|
(50.8)
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
|
2.4
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity
(Deficit)
|
|
(14.4)
|
|
(49.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
1,817.3
|
|
$
1,558.7
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
First Nine Months
Ended
|
|
|
|
|
|
|
|
Third
|
|
Second
|
|
Third
|
|
September
30,
|
|
|
|
|
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Ryerson Holding Corporation
|
|
$
1.7
|
|
$
0.6
|
|
$
8.2
|
|
$
17.1
|
|
$
27.3
|
Interest and other
expense on debt
|
|
23.2
|
|
22.8
|
|
23.6
|
|
67.8
|
|
67.5
|
Provision (benefit)
for income taxes
|
|
(0.7)
|
|
(0.8)
|
|
1.6
|
|
5.3
|
|
14.0
|
Depreciation and
amortization expense
|
|
11.9
|
|
11.5
|
|
10.2
|
|
34.1
|
|
31.8
|
EBITDA
|
|
|
|
|
$
36.1
|
|
$
34.1
|
|
$
43.6
|
|
$
124.3
|
|
$
140.6
|
Reorganization
|
|
|
0.9
|
|
1.4
|
|
3.0
|
|
2.8
|
|
6.1
|
Foreign currency
transaction losses
|
|
1.4
|
|
0.7
|
|
-
|
|
1.8
|
|
3.2
|
Loss on retirement of
debt
|
|
-
|
|
-
|
|
0.3
|
|
-
|
|
7.2
|
Impairment charges on
assets
|
|
-
|
|
0.2
|
|
-
|
|
0.2
|
|
2.8
|
Purchase
consideration and other transaction costs
|
|
1.0
|
|
0.9
|
|
0.1
|
|
2.6
|
|
2.0
|
Other
adjustments
|
|
|
-
|
|
-
|
|
0.4
|
|
-
|
|
0.5
|
Adjusted
EBITDA
|
|
|
$
39.4
|
|
$
37.3
|
|
$
47.4
|
|
$
131.7
|
|
$
162.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
$
39.4
|
|
$
37.3
|
|
$
47.4
|
|
$
131.7
|
|
$
162.4
|
LIFO expense
(income), net
|
|
(1.7)
|
|
14.2
|
|
1.4
|
|
11.8
|
|
(20.4)
|
Adjusted EBITDA,
excluding LIFO expense (income), net
|
|
$
37.7
|
|
$
51.5
|
|
$
48.8
|
|
$
143.5
|
|
$
142.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
$
864.2
|
|
$
875.4
|
|
$ 735.1
|
|
$
2,554.1
|
|
$
2,177.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
excluding LIFO expense (income), net, as a percentage of net
sales
|
4.4%
|
|
5.9%
|
|
6.6%
|
|
5.6%
|
|
6.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
$
145.0
|
|
$
140.4
|
|
$ 145.4
|
|
$
446.0
|
|
$
456.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
16.8%
|
|
16.0%
|
|
19.8%
|
|
17.5%
|
|
20.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
$
145.0
|
|
$
140.4
|
|
$ 145.4
|
|
$
446.0
|
|
$
456.0
|
LIFO expense
(income), net
|
|
(1.7)
|
|
14.2
|
|
1.4
|
|
11.8
|
|
(20.4)
|
Gross profit,
excluding LIFO expense (income), net
|
|
$
143.3
|
|
$
154.6
|
|
$ 146.8
|
|
$
457.8
|
|
$
435.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin,
excluding LIFO expense (income), net
|
|
16.6%
|
|
17.7%
|
|
20.0%
|
|
17.9%
|
|
20.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, impairment charges on
assets, reorganization expenses and foreign currency transaction
gains and losses. We believe that the presentation of EBITDA,
Adjusted EBITDA and Adjusted EBITDA, excluding LIFO expense
(income), net, provides useful information to investors regarding
our operational performance because they enhance an investor's
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 expense (income), net, 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 expense (income), net, 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 expense (income), net, targets. We also use
EBITDA, Adjusted EBITDA and Adjusted EBITDA, excluding LIFO expense
(income), net, to benchmark our operating performance to that of
our competitors. EBITDA, Adjusted EBITDA and Adjusted EBITDA,
excluding LIFO expense (income), net 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 expense (income), net, is
necessarily an indication of whether cash flow will be sufficient
to fund our cash requirements. This release also presents gross
margin, excluding LIFO expense (income), net, which is calculated
as gross profit plus LIFO expense (or minus LIFO income), net,
divided by net sales. We have excluded LIFO expense (income), net
from the 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 expense (income), net, gross
margin, excluding LIFO expense (income), net, and Adjusted EBITDA,
excluding LIFO expense (income), net, 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 Excluding Restructuring and
Other
|
|
|
|
|
|
|
Charges, Impairment
Charges on Assets and Loss on Retirement of Debt
|
|
|
|
|
|
|
(Dollars and Shares
in Millions, Except Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
First Nine Months
Ended
|
|
|
|
|
|
|
|
Third
|
|
Second
|
|
Third
|
|
September
30,
|
|
|
|
|
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Ryerson Holding Corporation
|
|
$
1.7
|
|
$
0.6
|
|
$
8.2
|
|
$
17.1
|
|
$
27.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
other charges
|
|
-
|
|
-
|
|
2.5
|
|
-
|
|
2.5
|
Impairment charges on
assets
|
|
-
|
|
0.2
|
|
-
|
|
0.2
|
|
2.8
|
Loss on retirement of
debt
|
|
-
|
|
-
|
|
0.3
|
|
-
|
|
7.2
|
Benefit for income
taxes
|
|
|
-
|
|
(0.1)
|
|
(1.0)
|
|
(0.1)
|
|
(4.7)
|
Net income
attributable to Ryerson Holding Corporation, excluding
restructuring and other charges, impairment charges on assets
and
loss on
retirement of debt
|
|
$
1.7
|
|
$
0.7
|
|
$
10.0
|
|
$
17.2
|
|
$
35.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
excluding restructuring and other charges, impairment
charges
on assets and loss on
retirement of debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
0.05
|
|
$
0.02
|
|
$
0.28
|
|
$
0.46
|
|
$
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$
0.05
|
|
$
0.02
|
|
$
0.28
|
|
$
0.46
|
|
$
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
basic
|
|
37.2
|
|
37.2
|
|
35.8
|
|
37.2
|
|
33.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
diluted
|
|
37.3
|
|
37.3
|
|
36.0
|
|
37.3
|
|
33.4
|
|
|
Note:
|
Net income and
Earnings per share excluding restructuring and other charges,
impairment charges on assets and loss on retirement of debt is
presented to provide a means of comparison with periods that do not
include restructuring and other charges, impairment charges on
assets and losses on retirement of debt.
|
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SOURCE Ryerson Holding Corporation