CHICAGO, April 3, 2018 /PRNewswire/ -- Ryerson
Holding Corporation (NYSE: RYI), a leading value-added
processor and distributor of industrial metals, today provided
guidance for its first quarter ending March
31, 2018. The Company anticipates revenue in the range of
$930 million to $950 million for the first quarter of 2018
compared to $811 million in the
fourth quarter of 2017 and $815
million in the first 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 first
quarter 2018 net income attributable to Ryerson Holding Corporation
in the range of $7 million to
$10 million, which includes LIFO
expense of $12 million to
$15 million. Adjusted EBITDA,
excluding LIFO is expected to be in the range of $60 million to $63
million for the first quarter of 2018. The Company reported
no net income attributable to Ryerson Holding Corporation for the
fourth quarter of 2017 and $15
million in the first quarter of 2017. Adjusted EBITDA,
excluding LIFO was $41 million in the
fourth quarter of 2017 and $54
million in the first 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 experienced quarterly year-over-year volume growth in
nearly all end markets, most notably in commercial ground
transportation, HVAC, and oil & gas. Compared to the fourth
quarter of 2017, Ryerson's end markets as measured in shipments per
day also showed growth in most sectors as the Company capitalized
on stronger industrial demand during the period.
Ryerson continued to see improved demand and pricing conditions
in the first quarter of 2018. According to the Metal Service Center
Institute, U.S. service center volumes increased by 4.7 percent
through February 2018 year-to-date
compared to the prior year period. U.S. industrial production, as
measured by the Federal Reserve, increased to a five-year high of
4.4 percent in February 2018.
Additionally, U.S. durable goods shipments exceeded inventory
growth for a second consecutive month in February 2018, which indicates U.S. industrial
production should remain strong in the near-term. Ryerson expects
it will benefit from any continued increase in demand in at least
the first half of 2018 compared to 2017, further aided by tight
supply given lower import levels. Compared to the fourth quarter of
2017, industrial metal commodity prices were higher in the first
quarter 2018 for CRU hot-rolled carbon steel and Midwest aluminum,
and the stainless 304 surcharge was higher in March 2018, signaling stronger average selling
prices for Ryerson heading into the second quarter of 2018.
Ryerson Holding Corporation's First Quarter 2018 Conference
Call Details
Ryerson will host a conference call to discuss first quarter
2018 results on Thursday, May 3, 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, May
2.
DATE:
|
Thursday, May 3,
2018
|
TIME:
|
10:00 a.m. ET / 9:00
a.m. CT
|
DIAL-IN:
|
833-241-7253
(Domestic) / 647-689-4217 (International)
|
CONFERENCE
ID:
|
3988376
|
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
3,600 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, 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
|
|
$ 7
|
$ 10
|
Interest and other
expense on debt
|
|
23
|
23
|
Provision for income
taxes
|
|
3
|
5
|
Depreciation and
amortization expense
|
|
11
|
11
|
EBITDA
|
|
$ 44
|
$ 49
|
Adjustments
|
|
1
|
2
|
Adjusted
EBITDA
|
|
$ 45
|
$ 51
|
LIFO
expense
|
|
15
|
12
|
Adjusted EBITDA,
excluding LIFO expense
|
|
$ 60
|
$ 63
|
|
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