CHICAGO, June 28, 2018 /PRNewswire/ -- Ryerson
Holding Corporation (NYSE: RYI), a leading value-added
processor and distributor of industrial metals, today provided
guidance for its second quarter ending June
30, 2018. The Company anticipates revenue in the range of
$1,040 million to $1,050 million for the second quarter of 2018
compared to $941 million in the first
quarter of 2018 and $875 million in
the second quarter of 2017. Ryerson anticipates higher tons sold
and average selling prices compared to both the prior quarter and
prior year periods. The Company expects second quarter 2018 net
income attributable to Ryerson Holding Corporation in the range of
$14 million to $17 million, which includes LIFO expense of
$38 million to $41 million. Adjusted EBITDA, excluding LIFO is
expected to be in the range of $98
million to $101 million for
the second quarter of 2018. The Company reported net income
attributable to Ryerson Holding Corporation of $10 million for the first quarter of 2018 and
$1 million for the second quarter of
2017. Adjusted EBITDA, excluding LIFO was $62 million in the first quarter of 2018 and
$52 million in the second quarter of
2017. A reconciliation of Adjusted EBITDA, excluding LIFO to net
income attributable to Ryerson Holding Corporation is included
below in this news release.
Ryerson anticipates quarterly year-over-year volume growth in
nearly all end markets, most notably in commercial ground
transportation, consumer durable equipment, and industrial
equipment. Compared to the first quarter of 2018, Ryerson also
anticipates growth in almost all end markets as the Company
continues to execute well within improved industrial demand
conditions experienced thus far in 2018.
Ryerson continues to see improved pricing conditions in the
second quarter of 2018 as commodities appreciated compared to the
first quarter of 2018 and the manufacturing economy remains strong.
According to the Metal Service Center Institute, U.S. service
center volumes increased by 5.0 percent through May 2018 year-to-date compared to the prior year
period. U.S. industrial production, as measured by the Federal
Reserve, registered growth of 3.5 percent or higher from February
through May, supporting continued shipment strength for Ryerson.
Although imports have elevated in recent months, May steel imports
as reported by the U.S. Census Bureau suggest levels have started
to recede. Ryerson expects modest pricing increases in the third
quarter of 2018 as June 2018
commodity prices for CRU hot-rolled carbon steel, Midwest aluminum,
and the stainless 304 surcharge are trending above average second
quarter 2018 prices. Ryerson anticipates average inventory costs to
rise in the third quarter of 2018 as gross margins stabilize.
However, Ryerson believes that end market demand will remain
stronger than historical averages for the second half of 2018 due
to inventory dislocations caused by trade actions and improved U.S.
industrial demand.
Ryerson Holding Corporation's Second Quarter 2018 Conference
Call Details
Ryerson will host a conference call to discuss second quarter
2018 results on Thursday, August 2,
at 10 a.m. Eastern Time. The live
online broadcast will be available on the Company's investor
relations website, ir.ryerson.com. Ryerson will report earnings
after the market closes on Wednesday, August
1.
DATE:
|
Thursday, August 2,
2018
|
TIME:
|
10:00 a.m. ET / 9:00
a.m. CT
|
DIAL-IN:
|
833-241-7253
(Domestic) / 647-689-4217 (International)
|
CONFERENCE
ID:
|
1298503
|
An online replay of the call will be posted on the investor
relations website, ir.ryerson.com, and remain available for 90
days.
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
3,700 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, 2017, 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.
Set forth below is a reconciliation of our anticipated net
income attributable to Ryerson Holding Corporation to our Adjusted
EBITDA and our Adjusted EBITDA, excluding LIFO expense.
|
|
|
|
|
|
Range of
Estimates
|
|
|
(unaudited)
|
|
|
(in
millions)
|
|
|
Low
|
High
|
Net income
attributable to Ryerson Holding Corporation
|
|
$
14
|
$
17
|
Interest and other
expense on debt
|
|
24
|
24
|
Provision for income
taxes
|
|
5
|
7
|
Depreciation and
amortization expense
|
|
12
|
12
|
EBITDA
|
|
$
55
|
$
60
|
Adjustments
|
|
2
|
3
|
Adjusted
EBITDA
|
|
$
57
|
$
63
|
LIFO
expense
|
|
41
|
38
|
Adjusted EBITDA,
excluding LIFO expense
|
|
$
98
|
$
101
|
|
|
|
|
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, 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, to provide a means of comparison among our
competitors who may not use the same basis of accounting for
inventories. EBITDA, Adjusted EBITDA, and Adjusted EBITDA,
excluding LIFO expense, 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, targets. We also use EBITDA, Adjusted
EBITDA, and Adjusted EBITDA, excluding LIFO expense, to benchmark
our operating performance to that of our competitors. EBITDA,
Adjusted EBITDA, and Adjusted EBITDA, excluding LIFO expense, 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, is
necessarily an indication of whether cash flow will be sufficient
to fund our cash requirements. Our definitions of EBITDA, Adjusted
EBITDA, and Adjusted EBITDA, excluding LIFO expense, may differ
from that of other companies.
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SOURCE Ryerson Holding Corporation