0001481582false00014815822025-02-202025-02-20
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
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Date of Report (Date of earliest event reported): February 20, 2025 |
Ryerson Holding Corporation
(Exact name of Registrant as Specified in Its Charter)
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Delaware |
001-34735 |
26-1251524 |
(State or Other Jurisdiction
of Incorporation) |
(Commission File Number) |
(IRS Employer
Identification No.) |
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227 W. Monroe St. 27th Floor |
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Chicago, Illinois |
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60606 |
(Address of Principal Executive Offices) |
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(Zip Code) |
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Registrant’s Telephone Number, Including Area Code: (312) 292-5000 |
(Former Name or Former Address, if Changed Since Last Report)
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:
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Title of each class
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Trading
Symbol(s) |
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Name of each exchange on which registered
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Common Stock, $0.01 par value, 100,000,000 shares authorized |
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RYI |
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The 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 Exhibit 99.1 and Exhibit 99.2 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 February 20, 2025, Ryerson Holding Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended December 31, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The Company also provided a presentation as a supplement to its press release. A copy of the presentation is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
d) Exhibits
The following exhibits are being furnished or filed, as applicable, with this Current Report on Form 8-K:
SIGNATURES
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.
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RYERSON HOLDING CORPORATION |
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Date: |
February 20, 2025 |
By: |
/s/ James. J. Claussen |
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Executive Vice President and Chief Financial Officer |
Exhibit 99.1
Ryerson Reports Fourth Quarter and Full-Year 2024 Results
Quarterly business highlights include strong operating cash flow generation of $92.2 million, continued modernization of the Shelbyville, KY non-ferrous processing center, and progress scaling and optimizing newly placed-in-service assets across our North America service center network
CHICAGO – February 20, 2025 – Ryerson Holding Corporation (NYSE: RYI), a leading value-added processor and distributor of industrial metals, today reported results for the fourth quarter and year ended December 31, 2024.
Highlights:
•Generated fourth quarter revenue of $1.01 billion on 447,000 tons shipped at an average selling price of $2,254 per ton
•Incurred Net Loss attributable to Ryerson Holding Corporation of $4.3 million, or Diluted Loss Per Share of $0.13 and Adjusted EBITDA1, excluding LIFO of $10.3 million
•Generated Fourth Quarter Operating Cash Flow of $92.2 million and Free Cash Flow of $68.9 million. Generated Full-Year 2024 Operating Cash Flow of $204.9 million and Free Cash Flow of $107.4 million
•Ended the quarter with debt of $468 million and net debt2 of $440 million as of December 31, 2024, compared to $522 million and $487 million, respectively, on September 30, 2024
•Achieved target of $60 million in annualized operating expense reduction3
•Continued start-up, commissioning and operationalizing of major capex projects at our service centers located in Shelbyville, KY, Norcross, GA, Dallas, TX, and Los Angeles, CA
•Declared a first-quarter 2025 dividend of $0.1875 per share
A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included below in this news release.
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$ in millions, except tons (in thousands), average selling prices, and earnings per share |
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Financial Highlights: |
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Q4 2024 |
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Q3 2024 |
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Q4 2023 |
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QoQ |
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YoY |
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2024 |
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2023 |
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YoY |
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Revenue |
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$1,007.4 |
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$1,126.6 |
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$1,112.4 |
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(10.6)% |
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(9.4)% |
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$4,598.7 |
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$5,108.7 |
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(10.0)% |
Tons shipped |
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447 |
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485 |
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450 |
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(7.8)% |
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(0.7)% |
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1,937 |
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1,943 |
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(0.3)% |
Average selling price/ton |
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$2,254 |
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$2,323 |
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$2,472 |
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(3.0)% |
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(8.8)% |
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$2,374 |
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$2,629 |
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(9.7)% |
Gross margin |
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19.0% |
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17.9% |
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22.2% |
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110 bps |
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-320 bps |
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18.1% |
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20.0% |
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-190 bps |
Gross margin, excl. LIFO |
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16.4% |
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16.3% |
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16.9% |
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10 bps |
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-50 bps |
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17.0% |
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18.1% |
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-110 bps |
Warehousing, delivery, selling, general, and administrative expenses |
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$188.5 |
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$196.9 |
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$203.7 |
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(4.3)% |
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(7.5)% |
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$801.2 |
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$793.5 |
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1.0% |
As a percentage of revenue |
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18.7% |
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17.5% |
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18.3% |
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120 bps |
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40 bps |
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17.4% |
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15.5% |
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190 bps |
Net income (loss) attributable to Ryerson Holding Corporation |
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$(4.3) |
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$(6.6) |
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$25.8 |
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(34.8)% |
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(116.7)% |
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$(8.6) |
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$145.7 |
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(105.9)% |
Diluted earnings (loss) per share |
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$(0.13) |
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$(0.20) |
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$0.74 |
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$0.07 |
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$(0.87) |
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$(0.26) |
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$4.10 |
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$(4.36) |
Adjusted diluted earnings (loss) per share |
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$(0.14) |
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$(0.20) |
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$0.73 |
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$0.06 |
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$(0.87) |
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$(0.18) |
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$4.08 |
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$(4.26) |
Adj. EBITDA, excl. LIFO |
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$10.3 |
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$21.0 |
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$25.9 |
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(51.0)% |
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(60.2)% |
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$114.1 |
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$231.1 |
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(50.6)% |
Adj. EBITDA, excl. LIFO margin |
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1.0% |
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1.9% |
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2.3% |
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-90 bps |
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-130 bps |
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2.5% |
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4.5% |
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-200 bps |
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Balance Sheet and Cash Flow Highlights: |
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Total debt |
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$467.4 |
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$522.1 |
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$436.5 |
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(10.5)% |
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7.1% |
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$467.4 |
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$436.5 |
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7.1% |
Cash and cash equivalents |
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$27.7 |
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$35.0 |
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$54.3 |
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(20.9)% |
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(49.0)% |
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$27.7 |
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$54.3 |
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(49.0)% |
Net debt |
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$439.7 |
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$487.1 |
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$382.2 |
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(9.7)% |
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15.0% |
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$439.7 |
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$382.2 |
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15.0% |
Net debt / LTM Adj. EBITDA, excl. LIFO |
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3.9x |
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3.8x |
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1.7x |
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0.1x |
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2.2x |
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3.9x |
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1.7x |
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2.2x |
Cash conversion cycle (days) |
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78.6 |
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79.3 |
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84.6 |
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(0.7) |
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(6.0) |
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76.7 |
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79.3 |
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(2.6) |
Net cash provided by operating activities |
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$92.2 |
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$134.6 |
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$90.1 |
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$(42.4) |
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$2.1 |
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$204.9 |
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$365.1 |
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$(160.2) |
Management Commentary
Eddie Lehner, Ryerson’s President, Chief Executive Officer & Director, said, “I want to thank all of my Ryerson teammates for working safely during the quarter while supporting our ongoing investments toward further improving Ryerson’s operating model and customer experience. In 2024, Ryerson accomplished two important milestones of our growth and our network optimization strategy. First, Ryerson made important strides in bringing major capex projects online, highlighted by the opening of our 900,000 square foot service center in University Park, IL, and start-up of our service center modernization project in Shelbyville, KY, the launch of our revamped e-commerce platform at www.ryerson.com, and further end-market diversification through the acquisition of Production Metals, LLC to name a few. Second, Ryerson launched its ‘integration and optimization’ phase, which contributed to realizing $60 million in annualized expense reductions while further weaving capex, systems, and acquisition investments made over the past three years into a cohesive intelligent service center network. Ryerson achieved these operational milestones while navigating through a counter-cyclical environment, marked by depressed demand, decreasing prices, and ongoing margin compression across stainless, carbon, and aluminum commodity bellwethers. Despite the difficult macro-metals and manufacturing environment, Ryerson gained market share across our metal mix, reduced same-store costs, and got back to good working capital management execution. During the fourth quarter, Ryerson met its guidance expectations on sales and Adjusted EBITDA, excluding LIFO, while exceeding guidance on earnings per share and generating $92.2 million in operating cash flow. During 2024, we generated $205 million in operating cash flow, primarily driven by improved working capital management, and returned $75.8 million to shareholders in the form of dividends and share repurchases. Looking ahead to the first quarter and 2025, after a slow start to the year marked by the carry-over from an unusually slow holiday season and weather disruptions, we are encouraged by quoting and order trends which have improved notably since mid-January. The timing of these improvements in business conditions, should they sustain, along with a strong dose of Ryerson self-help, should intersect well with the ongoing operationalization of investments we have made in the business over the past three years to improve earnings and the quality of those earnings through the cycle.
Fourth Quarter and Full-Year Results
Ryerson generated net sales of $1.01 billion in the fourth quarter of 2024, a decrease of 10.6%, compared to the third quarter of 2024, and within our guidance expectations. Revenue performance during the quarter was influenced by slightly better-than-expected seasonal volume declines of 7.8% and lower than expected average selling prices, which fell by 3.0%.
Gross margin expanded sequentially by 110 basis points to 19.0% in the fourth quarter of 2024, compared to 17.9% in the third quarter of 2024. Due to further declines in inventory costs in the fourth quarter of 2024, LIFO income of $25 million exceeded guidance expectations of LIFO income of $10 million. Excluding the impact of LIFO, gross margin expanded 10 basis points to 16.4% in the fourth quarter of 2024, compared to 16.3% in the third quarter. Gross margin expansion in the quarter resulted from the decline in average inventory costs outpacing the decline in average selling prices.
Warehousing, delivery, selling, general, and administrative expenses decreased 4.3%, or $8.4 million, to $188.5 million in the fourth quarter of 2024, compared to $196.9 million in the third quarter of 2024. Cost reductions were noted in personnel-related expenses, operating expenses, and delivery expenses. Decreases in overall expenses were partially offset by increases in professional fees as well as increases in depreciation & amortization expense from our capital spending on major projects.
Net Loss Attributable to Ryerson Holding Corporation for the fourth quarter of 2024 was $4.3 million, or $0.13 per diluted share, compared to net loss of $6.6 million, or $0.20 per diluted share, in the previous quarter. Ryerson generated Adjusted EBITDA, excluding LIFO of $10.3 million in the fourth quarter of 2024, compared to the third quarter of 2024 Adjusted EBITDA, excluding LIFO of $21.0 million.
Ryerson generated net sales of $4.6 billion for the full-year 2024, a decrease of 10.0% compared to full-year 2023 sales of $5.1 billion. Revenue performance for the year was influenced by 9.7% lower average selling prices and 0.3% lower tons shipped.
Gross margin contracted by 190 basis points for the full-year 2024 to 18.1% compared to 20.0% for 2023. Driven by declines in metals commodities prices, decreases in inventory costs over the year generated LIFO income of $52.5 million in 2024, which was 46.3%, or $45.2 million, lower in 2024 compared to 2023. Excluding the impact of LIFO, full-year 2024 gross margin contracted 110 basis points to 17.0% compared with 18.1% for 2023. Gross margin, excluding the impact of LIFO, contraction in 2024 was driven by average selling prices, which decreased 9.7% year-over-year, outpacing the decline in cost of materials sold.
Warehousing, delivery, selling, general, and administrative expenses increased 1.0%, or $7.7 million, to $801.2 million for the full-year 2024, compared to $793.5 million for 2023, driven by the addition of expenses associated with companies acquired during 2023 and 2024. These increases were partially offset by decreases in personnel-related expenses, operating expenses, and delivery expenses.
Net Loss Attributable to Ryerson Holding Corporation for the full-year 2024 was $8.6 million, or $0.26 per diluted share, compared to net income of $145.7 million, or $4.10 per diluted share, in 2023. Ryerson generated Adjusted EBITDA, excluding LIFO of $114.1 million in 2024, compared to $231.1 million in 2023.
Liquidity & Debt Management
Ryerson generated operating cash flow of $92.2 million in the fourth quarter of 2024 due to a working capital release of $71 million. The Company ended the fourth quarter of 2024 with debt of $468 million and net debt of $440 million, sequential decreases of $54 million and $47 million, respectively, compared to the third quarter of 2024. For the full-year 2024, Ryerson generated operating cash flow of $204.9 million, partially attributable to a working capital release of $154 million. Ryerson’s net leverage ratio of 3.9x, as of the fourth quarter of 2024, was above the Company’s target leverage range of 0.5x – 2.0x, but below Ryerson’s prior 10-year average of 4.2x. Ryerson’s global liquidity, composed of cash and cash equivalents and availability on its revolving credit facilities, decreased to $451 million as of December 31, 2024, compared to $491 million as of September 30, 2024, due to a decline in inventory values as metals commodity prices for our product mix receded during 2024.
Shareholder Return Activity
Dividends. On February 20, 2025, the Board of Directors declared a quarterly cash dividend of $0.1875 per share of common stock, payable on March 20, 2025, to stockholders of record as of March 6, 2025. During the fourth quarter of 2024, Ryerson’s quarterly dividend amounted to a cash return of approximately $6.0 million. For the full-year 2024, Ryerson returned $24.8 million to shareholders through its dividend program.
Share Repurchases and Authorization. Ryerson did not repurchase shares during the fourth quarter of 2024. Over the full-year 2024, Ryerson repurchased 2,526,467 shares for $51.0 million. Ryerson acquired stock in the open market in accordance with Ryerson’s share repurchase authorization. As of December 31, 2024, $38.4 million remained under the existing authorization.
Outlook Commentary
For the first quarter of 2025, Ryerson expects customer shipments to increase 11% to 13% quarter-over-quarter due to seasonality, improved company driven transactional activity, and restocking. The Company anticipates first quarter net sales to be in the range of $1.12 billion to $1.15 billion, with average selling prices increasing 0% to 2%. LIFO expense in the first quarter of 2025 is expected to be between $6 million to 8 million. We expect adjusted EBITDA, excluding LIFO in the range of $28 million to $32 million on lagging price margin resets and loss per diluted share in the range of $0.27 to $0.20.
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Fourth Quarter 2024 Major Product Metrics |
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Net Sales (millions) |
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Q4 2024 |
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Q3 2024 |
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Q4 2023 |
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Quarter-over-quarter |
Year-over-year |
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Carbon Steel |
$ |
510 |
$ |
585 |
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$ |
574 |
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(12.8)% |
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(11.1)% |
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Aluminum |
$ |
236 |
$ |
250 |
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$ |
244 |
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(5.6)% |
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(3.3)% |
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Stainless Steel |
$ |
248 |
$ |
276 |
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$ |
275 |
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(10.1)% |
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(9.8)% |
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Tons Shipped (thousands) |
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Q4 2024 |
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Q3 2024 |
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Q4 2023 |
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Quarter-over-quarter |
Year-over-year |
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Carbon Steel |
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353 |
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382 |
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352 |
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(7.6)% |
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0.3% |
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Aluminum |
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42 |
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44 |
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43 |
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(4.5)% |
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(2.3)% |
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Stainless Steel |
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52 |
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58 |
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52 |
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(9.7)% |
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0.8% |
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Average Selling Prices (per ton) |
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Q4 2024 |
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Q3 2024 |
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Q4 2023 |
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Quarter-over-quarter |
Year-over-year |
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Carbon Steel |
$ |
1,445 |
$ |
1,531 |
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$ |
1,631 |
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(5.7)% |
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(11.4)% |
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Aluminum |
$ |
5,619 |
$ |
5,682 |
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$ |
5,674 |
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(1.1)% |
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(1.0)% |
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Stainless Steel |
$ |
4,733 |
$ |
4,759 |
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$ |
5,288 |
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(0.5)% |
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(10.5)% |
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Full Year 2024 Major Product Metrics |
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Net Sales (millions) |
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2024 |
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2023 |
Year-over-year |
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Carbon Steel |
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$ |
2,383 |
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$ |
2,581 |
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(7.7)% |
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Aluminum |
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$ |
1,042 |
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$ |
1,133 |
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(8.0)% |
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Stainless Steel |
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$ |
1,107 |
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$ |
1,306 |
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(15.2)% |
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Tons Shipped (thousands) |
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2024 |
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2023 |
Year-over-year |
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Carbon Steel |
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1,516 |
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1,508 |
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0.5% |
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Aluminum |
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185 |
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194 |
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(4.6)% |
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Stainless Steel |
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230 |
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231 |
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(0.3)% |
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Average Selling Prices (per ton) |
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2024 |
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2023 |
Year-over-year |
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Carbon Steel |
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$ |
1,572 |
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$ |
1,712 |
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(8.2)% |
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Aluminum |
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$ |
5,632 |
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$ |
5,840 |
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(3.6)% |
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Stainless Steel |
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$ |
4,805 |
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$ |
5,654 |
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(15.0)% |
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Earnings Call Information
Ryerson will host a conference call to discuss fourth quarter and full-year 2024 financial results for the period ended December 31, 2024, on Friday, February 21, 2025, at 10 a.m. Eastern Time. 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 approximately 4,200 employees and over 110 locations. Visit Ryerson at www.ryerson.com.
Manager – Investor Relations:
Pratham Dear
312.292.5033
investorinfo@ryerson.com
Notes:
1For EBITDA, Adjusted EBITDA and Adjusted EBITDA excluding LIFO please see Schedule 2
2Net debt is defined as long term debt plus short term debt less cash and cash equivalents and excludes restricted cash
3Operating expenses are Warehousing, delivery, selling, general, and administrative expenses
Legal Disclaimer
The contents herein are provided for general information purposes only and do not constitute an offer to sell or buy, or a solicitation of an offer to buy, any security (“Security”) of the Company or its affiliates (“Ryerson”) in any jurisdiction. Ryerson does not intend to solicit, and is not soliciting, any action with respect to any Security or any other contractual relationship with Ryerson. Nothing in this release, individually or taken in the aggregate, constitutes an offer of securities for sale or buy, or a solicitation of an offer to buy, any Security in the United States, or to U.S. persons, or in any other jurisdiction in which such an offer or solicitation is unlawful.
Safe Harbor Provision
Certain statements made in this 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, 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; the impact of geopolitical events; fluctuating metal prices; our 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; the influence of a single investor group over our policies and procedures; work stoppages; obligations under certain employee retirement benefit plans; 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 most recent our annual report on Form 10-K 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.
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third |
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
|
Quarter |
|
|
Year Ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
$ |
1,007.4 |
|
|
$ |
1,112.4 |
|
|
$ |
1,126.6 |
|
|
$ |
4,598.7 |
|
|
$ |
5,108.7 |
|
Cost of materials sold |
|
|
816.3 |
|
|
|
865.2 |
|
|
|
924.6 |
|
|
|
3,764.5 |
|
|
|
4,087.1 |
|
Gross profit |
|
|
191.1 |
|
|
|
247.2 |
|
|
|
202.0 |
|
|
|
834.2 |
|
|
|
1,021.6 |
|
Warehousing, delivery, selling, general, and administrative |
|
|
188.5 |
|
|
|
203.7 |
|
|
|
196.9 |
|
|
|
801.2 |
|
|
|
793.5 |
|
Gain on insurance settlement |
|
|
(0.3 |
) |
|
|
— |
|
|
|
(1.3 |
) |
|
|
(1.6 |
) |
|
|
— |
|
Restructuring and other charges |
|
|
0.3 |
|
|
|
— |
|
|
|
1.1 |
|
|
|
3.1 |
|
|
|
— |
|
OPERATING PROFIT |
|
|
2.6 |
|
|
|
43.5 |
|
|
|
5.3 |
|
|
|
31.5 |
|
|
|
228.1 |
|
Other income and (expense), net |
|
|
2.7 |
|
|
|
(0.5 |
) |
|
|
(0.2 |
) |
|
|
4.1 |
|
|
|
0.3 |
|
Interest and other expense on debt |
|
|
(10.1 |
) |
|
|
(9.5 |
) |
|
|
(11.5 |
) |
|
|
(43.0 |
) |
|
|
(34.7 |
) |
INCOME (LOSS) BEFORE INCOME TAXES |
|
|
(4.8 |
) |
|
|
33.5 |
|
|
|
(6.4 |
) |
|
|
(7.4 |
) |
|
|
193.7 |
|
Provision (benefit) for income taxes |
|
|
(0.6 |
) |
|
|
7.5 |
|
|
|
(0.4 |
) |
|
|
(0.1 |
) |
|
|
47.3 |
|
NET INCOME (LOSS) |
|
|
(4.2 |
) |
|
|
26.0 |
|
|
|
(6.0 |
) |
|
|
(7.3 |
) |
|
|
146.4 |
|
Less: Net income attributable to noncontrolling interest |
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.6 |
|
|
|
1.3 |
|
|
|
0.7 |
|
NET INCOME (LOSS) ATTRIBUTABLE TO RYERSON HOLDING CORPORATION |
|
$ |
(4.3 |
) |
|
$ |
25.8 |
|
|
$ |
(6.6 |
) |
|
$ |
(8.6 |
) |
|
$ |
145.7 |
|
EARNINGS (LOSS) PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.13 |
) |
|
$ |
0.76 |
|
|
$ |
(0.20 |
) |
|
$ |
(0.26 |
) |
|
$ |
4.17 |
|
Diluted |
|
$ |
(0.13 |
) |
|
$ |
0.74 |
|
|
$ |
(0.20 |
) |
|
$ |
(0.26 |
) |
|
$ |
4.10 |
|
Shares outstanding - basic |
|
|
31.8 |
|
|
|
34.1 |
|
|
|
32.7 |
|
|
|
33.2 |
|
|
|
35.0 |
|
Shares outstanding - diluted |
|
|
31.8 |
|
|
|
34.7 |
|
|
|
32.7 |
|
|
|
33.2 |
|
|
|
35.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share |
|
$ |
0.1875 |
|
|
$ |
0.1850 |
|
|
$ |
0.1875 |
|
|
$ |
0.7500 |
|
|
$ |
0.7175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons shipped (000) |
|
|
447 |
|
|
|
450 |
|
|
|
485 |
|
|
|
1,937 |
|
|
|
1,943 |
|
Shipping days |
|
|
61 |
|
|
|
60 |
|
|
|
64 |
|
|
|
253 |
|
|
|
251 |
|
Average selling price/ton |
|
$ |
2,254 |
|
|
$ |
2,472 |
|
|
$ |
2,323 |
|
|
$ |
2,374 |
|
|
$ |
2,629 |
|
Gross profit/ton |
|
|
428 |
|
|
|
549 |
|
|
|
416 |
|
|
|
431 |
|
|
|
526 |
|
Operating profit/ton |
|
|
6 |
|
|
|
97 |
|
|
|
11 |
|
|
|
16 |
|
|
|
117 |
|
LIFO income per ton |
|
|
(57 |
) |
|
|
(132 |
) |
|
|
(37 |
) |
|
|
(27 |
) |
|
|
(50 |
) |
LIFO income |
|
|
(25.4 |
) |
|
|
(59.3 |
) |
|
|
(18.1 |
) |
|
|
(52.5 |
) |
|
|
(97.7 |
) |
Depreciation and amortization expense |
|
|
22.7 |
|
|
|
20.1 |
|
|
|
19.5 |
|
|
|
77.6 |
|
|
|
62.5 |
|
Cash flow provided by operating activities |
|
|
92.2 |
|
|
|
90.1 |
|
|
|
134.6 |
|
|
|
204.9 |
|
|
|
365.1 |
|
Capital expenditures |
|
|
(23.5 |
) |
|
|
(25.4 |
) |
|
|
(31.6 |
) |
|
|
(99.6 |
) |
|
|
(121.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
See Schedule 5 for First Quarter 2025 Guidance reconciliation |
|
|
|
|
|
|
Schedule 1 |
RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES |
Condensed Consolidated Balance Sheets |
(In millions, except shares) |
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$27.7 |
|
$54.3 |
Restricted cash |
|
1.6 |
|
1.1 |
Receivables, less provisions of $2.5 at December 31, 2024 and $1.7 at December 31, 2023 |
|
425.6 |
|
467.7 |
Inventories |
|
684.6 |
|
782.5 |
Prepaid expenses and other current assets |
|
68.1 |
|
77.8 |
Total current assets |
|
1,207.6 |
|
1,383.4 |
Property, plant, and equipment, at cost |
|
1,152.0 |
|
1,071.5 |
Less: accumulated depreciation |
|
515.3 |
|
481.9 |
Property, plant, and equipment, net |
|
636.7 |
|
589.6 |
Operating lease assets |
|
344.6 |
|
349.4 |
Other intangible assets |
|
68.3 |
|
73.7 |
Goodwill |
|
161.8 |
|
157.8 |
Deferred charges and other assets |
|
20.5 |
|
15.7 |
Total assets |
|
$2,439.5 |
|
$2,569.6 |
Liabilities |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$440.8 |
|
$463.4 |
Salaries, wages, and commissions |
|
35.7 |
|
51.9 |
Other accrued liabilities |
|
67.1 |
|
75.9 |
Short-term debt |
|
0.7 |
|
8.2 |
Current portion of operating lease liabilities |
|
32.1 |
|
30.5 |
Current portion of deferred employee benefits |
|
3.7 |
|
4.0 |
Total current liabilities |
|
580.1 |
|
633.9 |
Long-term debt |
|
466.7 |
|
428.3 |
Deferred employee benefits |
|
90.9 |
|
106.7 |
Noncurrent operating lease liabilities |
|
334.6 |
|
336.8 |
Deferred income taxes |
|
129.0 |
|
135.5 |
Other noncurrent liabilities |
|
13.7 |
|
13.9 |
Total liabilities |
|
1,615.0 |
|
1,655.1 |
Commitments and contingencies |
|
|
|
|
Equity |
|
|
|
|
Ryerson Holding Corporation stockholders' equity: |
|
|
|
|
Preferred stock, $0.01 par value; 7,000,000 shares authorized; no shares issued and outstanding at December 31, 2024 and December 31, 2023 |
|
— |
|
— |
Common stock, $0.01 par value; 100,000,000 shares authorized; 39,899,093 and 39,450,659 shares issued at December 31, 2024 and December 31, 2023, respectively |
|
0.4 |
|
0.4 |
Capital in excess of par value |
|
423.5 |
|
411.6 |
Retained earnings |
|
779.6 |
|
813.2 |
Treasury stock, at cost - Common stock of 8,051,226 shares at December 31, 2024 and 5,413,434 shares at December 31, 2023 |
|
(234.4) |
|
(179.3) |
Accumulated other comprehensive loss |
|
(153.8) |
|
(140.0) |
Total Ryerson Holding Corporation Stockholders' Equity |
|
815.3 |
|
905.9 |
Noncontrolling interest |
|
9.2 |
|
8.6 |
Total Equity |
|
824.5 |
|
914.5 |
Total Liabilities and Stockholders' Equity |
|
$2,439.5 |
|
$2,569.6 |
|
|
|
|
|
|
|
|
|
|
|
Schedule 2 |
RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES |
Reconciliations of Net Income (Loss) Attributable to Ryerson Holding Corporation to EBITDA and Gross profit to Gross profit excluding LIFO |
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third |
|
|
|
|
|
|
Fourth Quarter |
|
Quarter |
|
Year Ended December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Ryerson Holding Corporation |
|
$(4.3) |
|
$25.8 |
|
$(6.6) |
|
$(8.6) |
|
$145.7 |
Interest and other expense on debt |
|
10.1 |
|
9.5 |
|
11.5 |
|
43.0 |
|
34.7 |
Provision (benefit) for income taxes |
|
(0.6) |
|
7.5 |
|
(0.4) |
|
(0.1) |
|
47.3 |
Depreciation and amortization expense |
|
22.7 |
|
20.1 |
|
19.5 |
|
77.6 |
|
62.5 |
EBITDA |
|
$27.9 |
|
$62.9 |
|
$24.0 |
|
$111.9 |
|
$290.2 |
Gain on insurance settlement |
|
(0.3) |
|
— |
|
(1.3) |
|
(1.6) |
|
— |
Reorganization |
|
9.5 |
|
21.0 |
|
15.8 |
|
58.1 |
|
35.7 |
Pension settlement (gain) loss |
|
(0.1) |
|
— |
|
— |
|
2.1 |
|
— |
Benefit plan curtailment gain |
|
— |
|
(0.8) |
|
— |
|
(0.3) |
|
(0.8) |
Foreign currency transaction (gains) losses |
|
(3.2) |
|
0.7 |
|
0.6 |
|
(4.2) |
|
1.1 |
Purchase consideration and other transaction costs (credits) |
|
0.6 |
|
0.5 |
|
(0.4) |
|
(0.8) |
|
1.5 |
Other adjustments |
|
1.3 |
|
0.9 |
|
0.4 |
|
1.4 |
|
1.1 |
Adjusted EBITDA |
|
$35.7 |
|
$85.2 |
|
$39.1 |
|
$166.6 |
|
$328.8 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$35.7 |
|
$85.2 |
|
$39.1 |
|
$166.6 |
|
$328.8 |
LIFO income |
|
(25.4) |
|
(59.3) |
|
(18.1) |
|
(52.5) |
|
(97.7) |
Adjusted EBITDA, excluding LIFO income |
|
$10.3 |
|
$25.9 |
|
$21.0 |
|
$114.1 |
|
$231.1 |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$1,007.4 |
|
$1,112.4 |
|
$1,126.6 |
|
$4,598.7 |
|
$5,108.7 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA, excluding LIFO income, as a percentage of net sales |
|
1.0% |
|
2.3% |
|
1.9% |
|
2.5% |
|
4.5% |
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$191.1 |
|
$247.2 |
|
$202.0 |
|
$834.2 |
|
$1,021.6 |
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
19.0% |
|
22.2% |
|
17.9% |
|
18.1% |
|
20.0% |
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$191.1 |
|
$247.2 |
|
$202.0 |
|
$834.2 |
|
$1,021.6 |
LIFO income |
|
(25.4) |
|
(59.3) |
|
(18.1) |
|
(52.5) |
|
(97.7) |
Gross profit, excluding LIFO income |
|
$165.7 |
|
$187.9 |
|
$183.9 |
|
$781.7 |
|
$923.9 |
|
|
|
|
|
|
|
|
|
|
|
Gross margin, excluding LIFO income |
|
16.4% |
|
16.9% |
|
16.3% |
|
17.0% |
|
18.1% |
|
|
|
|
|
|
|
|
|
|
|
|
Note: EBITDA represents net income (loss) before interest and other expense on debt, provision (benefit) for income taxes, depreciation, and amortization. Adjusted EBITDA gives further effect to, among other things, gain on insurance settlement, reorganization expenses, pension settlement (gain) loss, benefit plan curtailment gain, purchase consideration and other transaction costs (credits), and foreign currency transaction gains and losses. We believe that the presentation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA, excluding LIFO expense (income), 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), 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), 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), targets. We also use EBITDA, Adjusted EBITDA, and Adjusted EBITDA, excluding LIFO expense (income), to benchmark our operating performance to that of our competitors. EBITDA, Adjusted EBITDA, and Adjusted EBITDA, excluding LIFO expense (income), do not represent, and should not be used as a substitute for, net income (loss) 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), 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), which is calculated as gross profit minus LIFO expense (income), divided by net sales. We have excluded LIFO expense (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 expense (income), gross margin, excluding LIFO expense (income), and Adjusted EBITDA, excluding LIFO expense (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 (Loss) to Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share |
(Dollars and Shares in Millions, Except Per Share Data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third |
|
|
|
|
|
|
Fourth Quarter |
|
Quarter |
|
Year Ended December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Ryerson Holding Corporation |
|
$(4.3) |
|
$25.8 |
|
$(6.6) |
|
$(8.6) |
|
$145.7 |
|
|
|
|
|
|
|
|
|
|
|
Gain on insurance settlement |
|
(0.3) |
|
— |
|
(1.3) |
|
(1.6) |
|
— |
Restructuring and other charges |
|
0.3 |
|
— |
|
1.1 |
|
3.1 |
|
— |
Pension settlement (gain) loss |
|
(0.1) |
|
— |
|
— |
|
2.1 |
|
— |
Benefit plan curtailment gain |
|
— |
|
(0.8) |
|
— |
|
(0.3) |
|
(0.8) |
Provision (benefit) for income taxes |
|
— |
|
0.2 |
|
0.1 |
|
(0.8) |
|
0.2 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) attributable to Ryerson Holding Corporation |
|
$(4.4) |
|
$25.2 |
|
$(6.7) |
|
$(6.1) |
|
$145.1 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings (loss) per share |
|
$(0.14) |
|
$0.73 |
|
$(0.20) |
|
$(0.18) |
|
$4.08 |
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding - diluted |
|
31.8 |
|
34.7 |
|
32.7 |
|
33.2 |
|
35.6 |
|
|
|
|
|
|
|
|
|
|
|
Note: Adjusted net income (loss) and Adjusted diluted earnings (loss) per share is presented to provide a means of comparison with periods that do not include similar adjustments. |
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Schedule 4 |
RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES |
Cash Flow from Operations to Free Cash Flow Yield |
(Dollars in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third |
|
|
|
|
|
|
Fourth Quarter |
|
Quarter |
|
Year Ended December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$92.2 |
|
$90.1 |
|
$134.6 |
|
$204.9 |
|
$365.1 |
Capital expenditures |
|
(23.5) |
|
(25.4) |
|
(31.6) |
|
(99.6) |
|
(121.9) |
Proceeds from sales of property, plant, and equipment |
|
0.2 |
|
0.4 |
|
0.4 |
|
2.1 |
|
0.5 |
Free cash flow |
|
$68.9 |
|
$65.1 |
|
$103.4 |
|
$107.4 |
|
$243.7 |
|
|
|
|
|
|
|
|
|
|
|
Market capitalization |
|
$589.5 |
|
$1,180.4 |
|
$634.0 |
|
$589.5 |
|
$1,180.4 |
|
|
|
|
|
|
|
|
|
|
|
Free cash flow yield |
|
11.7% |
|
5.5% |
|
16.3% |
|
18.2% |
|
20.6% |
|
|
|
|
|
|
|
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|
|
Note: Market capitalization is calculated using December 31, 2024, September 30, 2024, and December 31, 2023 stock prices and shares outstanding. |
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Schedule 5 |
RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES |
Reconciliation of First Quarter 2025 Net Income Attributable to Ryerson Holding Corporation to Adj. EBITDA, excl. LIFO Guidance |
(Dollars in Millions, except Per Share Data) |
|
|
First Quarter 2025 |
|
|
Low |
|
High |
Net loss attributable to Ryerson Holding Corporation |
|
$(9) |
|
$(8) |
|
|
|
|
|
Diluted loss per share |
|
$(0.27) |
|
$(0.20) |
|
|
|
|
|
Interest and other expense on debt |
|
9 |
|
9 |
Benefit for income taxes |
|
(3) |
|
(2) |
Depreciation and amortization expense |
|
19 |
|
19 |
EBITDA |
|
$16 |
|
$18 |
Adjustments |
|
6 |
|
6 |
Adjusted EBITDA |
|
$22 |
|
$24 |
LIFO expense |
|
6 |
|
8 |
Adjusted EBITDA, excluding LIFO |
|
$28 |
|
$32 |
|
|
|
|
|
Note: See the note within Schedule 2 for a description of EBITDA and Adjusted EBITDA. |
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|
Ryerson Quarterly Release Presentation Q4 2024 Exhibit 99.2
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 provided herein. Ryerson strongly urges you to review its filings with the Securities and Exchange Commission, which can be found at https://ir.ryerson.com/financials/sec-filings/default.aspx. This site also provides additional information about Ryerson. Safe Harbor Provision Certain statements made in this 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, 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; the impact of geopolitical events; fluctuating metal prices; our 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; the influence of a single investor group over our policies and procedures; work stoppages; obligations under certain employee retirement benefit plans; 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 most recent annual report on Form 10-K for the year ended December 31, 2024, 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. Non-GAAP Measures Certain measures contained in these slides or the related presentation are not measures calculated in accordance with generally accepted accounting principles (“GAAP”). They should not be considered a replacement for GAAP results. Non-GAAP financial measures appearing in these slides are identified in the footnotes. A reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures is included in the Appendix.
Generated fourth quarter revenue of $1.01 billion on 447,000 tons shipped at an average selling price of $2,254 per ton Incurred Net Loss attributable to Ryerson Holding Corporation of $4.3 million, or Diluted Loss Per Share of $0.13 and Adjusted EBITDA1, excluding LIFO of $10.3 million Generated Fourth Quarter Operating Cash Flow of $92.2 million and Free Cash Flow of $68.9 million. Generated Full-Year 2024 Operating Cash Flow of $204.9 million and Free Cash Flow of $107.4 million Ended the quarter with debt of $468 million and net debt2 of $440 million as of December 31, 2024, compared to $522 million and $487 million, respectively, on September 30, 2024 Achieved target of $60 million annualized operating expenses reduction, compared to the first quarter of 20243 Continued start-up, commissioning and operationalizing of major capex projects at our service centers located in Shelbyville, KY, Norcross, GA, Dallas, TX, and Los Angeles, CA Declared a first quarter 2025 dividend of $0.1875 per share Q4 2024 Highlights 1For EBITDA, Adjusted EBITDA and Adj EBITDA excluding LIFO please see Appendix; 2Net Debt is defined as Long Term Debt plus Short-Term Debt less Cash and Cash Equivalents and excludes Restricted Cash 3Operating Expenses defined as Warehousing, delivery, selling, general, and administrative expenses;
reversing an investment deficit 1Adjusted Net Capex Does not include the impact of significant sale-leaseback transactions in 2019 and 2021 +$149M vs Depreciation ($136M) vs Depreciation Adj. Net Capex vs Depreciation 1 1
University Park – New CS&W HQ 900,000 sq ft facility Significant automation and technological enhancements Investing IN the Business West Shelbyville expansion State-of-the-art cut-to-length line (CTL) and automated storage and retrieval system for sheet products Centralia Pacific NW 214,000 sq ft facility Advanced processing capabilities for sheet, plate, and long products Ryerson.com 3.0 Hub targeting transactional sales Atlanta Tube Laser Center Expanded tube processing facility ERP Integration Progress Opened cross-selling opportunities
Next Phase Target sequence PHASE 1 PHASE 2 PHASE 3 Invest in modernization and automation. Cure legacy investment deficit Integrate North American service center network through common digital and ERP platforms Optimize network to increase efficient operating leverage and improve the customer experience De-lever high-yield debt Monetize legacy assets Re-orient focus toward public shareholders Market share Gains vs MSCI Margin accretion led by value-added and transactional sales growth, and supply chain and cost to serve efficiencies Next phase targets $350 - $400M thru-the-cycle Adjusted EBITDA
University Park Productivity Productivity is measured in lines per hour Productivity Ryerson Average CS&W Kedzie (Legacy location) CS&W University Park (New Location) Investment Thesis 1.4x 1.2x 1.0x 0.8x 0.6x 0.4x 0.2x 0.0x
Strategy is to achieve non-ferrous franchise growth driven by Bright Metals Sheet Products Hub and greater service offering from acquisitions and capex investments Bright metals Constellation Strategy Piece Value-Add Polishing Food Dairy Pharmaceutical Beverage 2017 2021 2023 Q4 2024 OTK Calvert NAS Ghent Arconic IN Commonwealth Aluminum RYI Shelbyville Aluminum Dynamics Arconic TN Texarkana Aluminum 1 – 4 hours away from 4 major Aluminum and Stainless producers 7 - 9 hours away from 3 major Aluminum and Stainless producers Guy Metals Specialty Metals Processing TSA Processing Shelbyville, KY Service Center Value-Add Finishing Aerospace & Defense Medical Nuclear Value-Add Tolling Oil & Gas Construction Ships Water treatment Distribution Cut-to-length Metal Fab Machinery Equipment Ground Transport Shelbyville, KY expansion Target IRR = ~35% Process Markets Type
Commodity prices since Dec. 2017 U.S. Industrial Production U.S. ISM Purchasing Managers Index Futures pricing inflecting upwards; Demand environment contractionary in 4Q24 1Sources: Bloomberg: prices through December 31, 2024; Futures prices as of February 10, 2025; Bloomberg, US Industrial Production Index Month YoY Change; Bloomberg, U.S. Manufacturing PMI Macro & commodities Futures
12024 Sales Mix by tons Excludes Other Industry Sectors which represent approximately 4% of Ryerson sales mix; Sales Mix based on 2024 results as disclosed in Ryerson’s Annual Report on Form 10-K for the year ended December 31, 2024 Metal Fab and Machine Shop Industrial Equipment Commercial Ground Transportation Food & Ag Consumer Durable Construction Equipment HVAC Oil & Gas 2024 Sales Mix1 Commentary FY volume change 23% 16% 18% 9% 9% 9% 8% 4% Ryerson’s fourth quarter shipments reflected a seasonal slowdown in customer buying patterns as well as a slowdown in demand from transportation, consumer and industrial manufacturing sectors Ryerson’s 2024 shipments were slightly lower than 2023, with decreases in the transportation sector partially offset by increases in consumer and industrial manufacturing sectors Sequential end-market trends
Anticipate seasonal restocking demand leading Q1 volume and pricing recovery 1Net Income (Loss) attributable to Ryerson Holding Corporation; 2Diluted EPS (loss) of ($0.24) represents the midpoint of our ($0.27) – ($0.20) guidance range. See Ryerson’s 8-K filed on February 20, 2025 Net sales Net Income (Loss)1 Adj. EBITDA, excl. LIFO $1.12 - 1.15B $(9) – (8)M $28 - 32M First quarter revenue guidance of $1.12B to $1.15B assumes: Shipments increase 11% to 13% Average Selling Prices increase 0 to 2% Diluted Earnings (loss) per Share Q1 2025 Guidance 2
1LTM Free Cash Flow Yield is calculated based on Last Twelve Months free cash flow divided by period-end market capitalization. LTM Free Cash Flow of $107.4M and market cap on 12/31/24 of $589.5 Capital Investment Expense Management Compared to Q3 2024 Inventory Days of Supply Cash Conversion Cycle 85 79 Asset Management Cash Flow Service Center modernization investments in new service centers, expanded service centers and value-added capex Fourth quarter operating cash flow generation driven by working capital release The Company’s cash conversion cycle decreased sequentially due to an increase in days payables outstanding, partially offset by an increase in inventory days of supply Cash from Operating activities LTM Free Cash Flow Yield1 $92.2 18.2% Q4 2024 Investment FY 2024 $24M $100M Expense Expense/Sales ($8.4M) +120bps Expenses decreased $8.4M, or 4.3%, compared to Q3 2024 driven by lower expenses from personnel, operations, and delivery expenses. Decreases were partially offset by cost increases from professional fees and Depreciation & Amortization from projects placed in service. Q4 2024 performance metrics
A reconciliation of Net Debt as well as other non-GAAP financial measures to comparable GAAP measures is included in the Appendix. See Ryerson’s 8-K filed on February 20, 2025 Net Leverage of 3.9x in Q4 ’24 above target range of 0.5x to 2.0x Global liquidity remained strong at $451M in Q4 ’24 at December 31, 2024 Cash and Cash Equivalents Foreign Availability North American Availability Liquidity and leverage
Capital allocation plan 1LTM is Last Twelve Months LTM1 free cash flow generation $100M in ’24; $50M in ‘25E Modernization and and Value-Add Quarterly dividend of $0.1875 per share for Q1’25 Track record of successful acquisitions $51M repurchased in ’24; $38M remaining in authorization Supports key pillars of Capital Allocation CAPEX M&A DIVIDENDS BUYBACKS
shareholder returns $0.1875 per Share Return of capital to investors and $51.0M Share repurchases completed in FY 2024 Q1 2025 announced: Ryerson’s dividend is enabled by a transformed balance sheet and continued prioritization of shareholder returns as part of a balanced capital allocation strategy $0.1875 per Share Return of capital to investors
Q4 2024 key financial metrics 1 Net Loss attributable to Ryerson Holding Corporation; A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included in the Appendix. See Ryerson’s 8-K filed on February 20, 2025. Net Sales Gross Margin Net Loss1 Diluted Loss per Share Debt $1.0B 19.0% ($4.3)M ($0.13) $468M (10.6%) QoQ +110 bps QoQ $2.3M QoQ +$0.07 QoQ ($54M) QoQ Tons Shipped Gross Margin, excl. LIFO Adj. EBITDA excl. LIFO Adjusted Diluted Loss per Share Net Debt 447k 16.4% $10.3M ($0.14) $440M (7.8%) QoQ +10 bps QoQ ($10.7M) QoQ $0.06 QoQ (47M) QoQ
FY 2024 key financial metrics 1Net Loss attributable to Ryerson Holding Corporation; A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included in the Appendix. See Ryerson’s 8-K filed on February 20, 2025. Net Sales Gross Margin Net Loss1 Diluted Loss per Share Debt $4.6B 18.1% ($8.6)M ($0.26) $468M (10.0%) YoY -190 bps YoY ($154.3M) YoY ($4.36) YoY $32M YoY Tons Shipped Gross Margin, excl. LIFO Adj. EBITDA excl. LIFO Adjusted Diluted Loss per Share Net Debt 1.9M 17.0% $114.1M ($0.18) $440M (0.3%) YoY -110 bps YoY ($117.0M) YoY ($4.26) YoY 58M YoY
Diversified (metals mix, ~40k customers, ~75k products) Availability, speed, ease, consistency Over 110 facilities Hundreds of “virtual” locations 24/7 E-Commerce Platform Relationship-centric customer experience Building the value chain of the future Intelligent Network 18
Appendix
Ryerson.com 3.0 Investing in digitalization to improve the customer experience 21
Stronger capital structure allows for sustainable returns to shareholders Dividend payments 1EPS is Diluted EPS; 2Yield for 2023 is based on closing share price as of December 29, 2023, of $34.68. Yield for 2024 is based on closing share price as of December 31, 2024, of $18.51. Dividend per Share 1 2 22
Quarterly financial highlights 1 Net Loss attributable to Ryerson Holding Corporation; A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included in this Appendix Average Selling Price Per Ton Gross Margin & Gross Margin, excl. LIFO Tons Sold (000’s) Adj. EBITDA excl. LIFO & Net Income (Loss) Margin % 1 23 1 1
10 Year progress Net PP&E Book Value of Equity Pension Liability Net Debt2 Improved Operating Model Balance Sheet Transformation Improved Capital Allocation 1For EBITDA, Adjusted EBITDA and Adj EBITDA excluding LIFO please see Appendix; 10-year view represents 2015 - 2024; 2Net debt is defined as long term debt plus short term debt less cash and cash equivalents and excludes restricted cash Adj. EBITDA ex. LIFO1 10-Year Total $2.9B Annual Average $288M Cash from Operations 10-Year Total $1.9B Annual Average $192M 10-Year Total Investment Capex $567M Acquisitions $482M 10-Year Total Shareholder Return Dividends $76M Repurchase $217M Share Repurchases 2021- 2024 Shares Bought (8M) Shares at IPO 32M Shares at YE ’24 32M ; 24 ▼$731M ▼$224M ▲$209M ▲$950M ▲$29.5/share
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO 25
Non-GAAP Reconciliation: Adjusted Net Income (loss) 26
Non-GAAP Reconciliation: Net Debt 27
Non-GAAP Reconciliation
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