Ryerson Reports Second Quarter 2024 Results

Rhea-AI Summary

Ryerson Holding (NYSE: RYI) reported Q2 2024 results with net income of $9.9 million and Adjusted EBITDA of $42.6 million. Key highlights include:

- Revenue of $1.23 billion from 508,000 tons shipped
- Diluted EPS of $0.29
- Reduced operating expenses by $17.8 million
- Returned $20.4 million to shareholders through share repurchases and dividends
- Increased share repurchase authorization by $50 million
- Announced Q3 2024 dividend of $0.1875 per share

The company faced challenges from a compressed pricing environment and declining industry demand but saw improvements in tons sold, reduced expenses, and inventory levels. Ryerson updated its annualized cost reduction expectations to $60 million from $40 million previously announced.

Positive

• Net income of $9.9 million, compared to a net loss in Q1 2024
• Adjusted EBITDA, excluding LIFO, increased to $42.6 million from $40.2 million in Q1 2024
• Reduced operating expenses by $17.8 million compared to Q1 2024
• Increased share repurchase authorization by $50 million
• Updated annualized cost reduction expectations to $60 million from $40 million
• Returned $20.4 million to shareholders through share repurchases and dividends

Negative

• Revenue decreased 1.1% compared to Q1 2024
• Average selling price decreased 3.2% compared to Q1 2024
• Net debt increased to $497.4 million from $455.4 million in Q1 2024
• Net leverage ratio increased to 3.2x, above the company's target range of 0.5x - 2.0x
• Global liquidity decreased to $585 million from $684 million in Q1 2024

Insights

Financial Analyst

Ryerson's Q2 2024 results present a mixed picture. While the company managed to return to profitability with $9.9 million in net income, this represents a significant 73.7% year-over-year decline. The revenue of $1.23 billion shows a slight decrease of 1.1% from Q1 2024 and 8.8% from Q2 2023, indicating ongoing market challenges.

Positively, Ryerson has made progress on cost reduction, reducing operating expenses by $17.8 million compared to Q1 2024. The company has also increased its annualized cost reduction target to $60 million from the previously announced $40 million, which could help improve profitability in the coming quarters.

However, the company's net debt increased to $497 million, up from $455 million in Q1 2024. The net debt to LTM Adjusted EBITDA ratio of 3.2x is above Ryerson's target range of 0.5x - 2.0x, which may be a concern for investors.

Looking ahead, Ryerson's Q3 2024 outlook suggests continued challenges, with expected decreases in customer shipments and average selling prices. The projected earnings per diluted share range of $0.01 to $0.10 indicates potential pressure on profitability.

Overall, while Ryerson is making efforts to optimize operations and reduce costs, the company faces headwinds from a compressed pricing environment and declining industry demand, particularly in industrial manufacturing and consumer end-markets.

Market Research Analyst

Ryerson's Q2 2024 results reflect broader trends in the industrial metals sector. The company's performance is indicative of a challenging macroeconomic environment, with notable declines in aluminum, nickel and carbon steel commodity indexes.

The 2.2% increase in tons shipped suggests some resilience in demand, but this was offset by a 3.2% decrease in average selling prices. This pricing pressure is likely to continue, with Ryerson projecting a further 3% to 5% decrease in average selling prices for Q3 2024.

Interestingly, Ryerson's product mix shows varying performance:

• Carbon steel sales increased by 1.7% quarter-over-quarter
• Aluminum sales decreased by 1.1%
• Stainless steel sales saw a more significant decline of 6.7%

This divergence may indicate shifting demand patterns across different industrial sectors.

The company's focus on cost reduction and operational efficiency, including the ramp-up of its University Park, IL service center and the modernization of its Shelbyville, KY facility, demonstrates a strategic response to market pressures. However, the projected decrease in customer shipments for Q3 2024 suggests that demand challenges may persist in the near term.

Overall, Ryerson's results and outlook provide valuable insights into the current state and near-term prospects of the industrial metals market, indicating a period of adjustment to economic headwinds.

Quarterly business highlights include ramp-up of operations at University Park, IL service center, expansion and modernization of the Shelbyville, KY service center, and progress on cost savings across the network

CHICAGO, July 30, 2024 /PRNewswire/ -- Ryerson Holding Corporation (NYSE: RYI), a leading value-added processor and distributor of industrial metals, today reported results for the second quarter ended June 30, 2024.

Highlights: 

• Delivered Net Income attributable to Ryerson Holding Corporation of $9.9 million and Adjusted EBITDA¹, excluding LIFO of $42.6 million
• Earned diluted EPS² of $0.29 on $1.23 billion of revenue from 508,000 tons shipped and average selling price of $2,412 per ton
• Reduced operating expenses³ by $17.8 million, compared to the first quarter of 2024, as part of previously announced cost reductions. Annualized cost reduction expectations updated to savings of approximately $60 million from previously announced $40 million
• Reduced inventory by $107.1 million on a FIFO cost basis⁴, compared to the first quarter of 2024
• Returned $20.4 million to shareholders during the quarter, comprised of $14.0 million in share repurchases and $6.4 million in dividends
• Ended the quarter with debt of $525 million and net debt⁵ of $497 million as of June 30, 2024, compared to $497 million and $455 million, respectively, on March 31, 2024
• Increased share repurchase authorization by $50 million and extended maturity of authorization to April 2026
• Announced third quarter 2024 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.

$ in millions, except tons (in thousands), average selling prices, and earnings per share
Financial Highlights:		Q2 2024		Q1 2024		Q2 2023		YoY		QoQ		1H 2024		1H 2023		YoY
Revenue		$1,225.5		$1,239.2		$1,343.5		(1.1) %		(8.8) %		$2,464.7		$2,749.6		(10.4) %
Tons shipped		508		497		496		2.2 %		2.4 %		1,005		1,015		(1.0) %
Average selling price/ton		$2,412		$2,493		$2,709		(3.2) %		(11.0) %		$2,452		$2,709		(9.5) %
Gross margin		18.2 %		17.6 %		19.4 %		60 bps		-120 bps		17.9 %		19.1 %		-120 bps
Gross margin, excl. LIFO		17.4 %		17.6 %		18.7 %		-20 bps		-130 bps		17.5 %		18.9 %		-140 bps
Warehousing, delivery, selling, general, and administrative expenses		$199.0		$216.8		$202.6		(8.2) %		(1.8) %		$415.8		$396.8		4.8 %
As a percentage of revenue		16.2 %		17.5 %		15.1 %		-130 bps		110 bps		16.9 %		14.4 %		250 bps
Net income (loss) attributable to Ryerson Holding Corporation		$9.9		$(7.6)		$37.6		230.3 %		(73.7) %		$2.3		$84.9		(97.3) %
Diluted earnings (loss) per share		$0.29		$(0.22)		$1.06		$0.51		$(0.77)		$0.07		$2.33		$(2.26)
Adjusted diluted earnings (loss) per share		$0.33		$(0.18)		$1.06		$0.51		$(0.73)		$0.14		$2.33		$(2.19)
Adj. EBITDA, excl. LIFO		$42.6		$40.2		$70.1		6.0 %		(39.2) %		$82.8		$160.2		(48.3) %
Adj. EBITDA, excl. LIFO margin		3.5 %		3.2 %		5.2 %		30 bps		-170 bps		3.4 %		5.8 %		-240 bps
Balance Sheet and Cash Flow Highlights:
Total debt		$525.4		$497.3		$396.1		5.7 %		32.6 %		$525.4		$396.1		32.6 %
Cash and cash equivalents		$28.0		$41.9		$30.0		(33.2) %		(6.7) %		$28.0		$30.0		(6.7) %
Net debt		$497.4		$455.4		$366.1		9.2 %		35.9 %		$497.4		$366.1		35.9 %
Net debt / LTM Adj. EBITDA, excl. LIFO		3.2x		2.5x		1.4x		0.7x		1.8x		3.2x		1.4x		1.8x
Cash conversion cycle (days)		77.6		75.6		76.1		2.0		1.5		76.5		77.2		(0.7)
Net cash provided by (used in) operating activities		$25.9		$(47.8)		$115.3		$73.7		$(89.4)		$(21.9)		$195.7		$(217.6)

 

Management Commentary
Eddie Lehner, Ryerson's President, Chief Executive Officer, and Director, said, "I want to thank all of my Ryerson teammates for striving to create a better Ryerson that delivers the industry's best customer experience safely, enjoyably, and productively. Over the second quarter we managed through a compressed pricing and declining industry demand environment that intensified in late-May through the end of the quarter marked by a continued slowdown in various industrial manufacturing and consumer end-markets as well as notable declines in aluminum, nickel, and carbon steel commodity indexes. Despite these challenges, our overall business performance improved as we saw an increase in tons sold, reduced variable and structural expenses, reduced our inventory levels, and returned to generating operating cash flow and free cash flow. We did this while transitioning to an optimization phase as we complete a record three-year investment cycle, highlighted this quarter by the start-up of our state-of-the-art 900,000 square foot University Park, IL service center, ongoing assimilation of the ERP-conversion in our southern network of service centers, our launch of Ryerson's redesigned e-commerce platform at www.ryerson.com, as well as nearing the final stage of equipment installation for our Shelbyville, KY processing center modernization and expansion that is slated to start-up in the first quarter of 2025. During the quarter, we grew our book value per share, repurchased 647,330 shares of Ryerson common stock, and paid a quarterly dividend of $0.1875. For the remainder of 2024, we are targeting approximately $60 million in annualized cost savings, updated from our previous $40 million target, primarily through the realization of greater efficiencies within our network. As we navigate through the second half of 2024, Ryerson is planning, preparing, and executing on the strategic growth plan for our business through the optimization of our operating model despite the persistence of what has turned out to be an extended industry counter-cycle. Looking at the bigger picture, it has been just about ten-years since Ryerson closed its Initial Public Offering ("IPO") on August 13, 2014.  I would kindly ask interested stakeholders to view the first page of this quarter's investor presentation deck. When we stack up all the days since our IPO and look at all we have accomplished over the past ten years, it is an important reminder that there is no sustainable progress without some pain and discomfort. As I look at the strength of our company, the significant investments made to our next-gen operating model, the value of our assets, and the culture of our people and organization, I couldn't be more optimistic about the next ten years."

Announcement – Ryerson's Chief Operating Officer, Mike Burbach to retire at year-end of 2024
After more than 40 years of driving excellence, Mike Burbach will retire from his position as Chief Operating Officer ("COO"), effective December 31, 2024. Mike has served as COO since April 2, 2021, and has been pivotal to the company's operational and financial success. Eddie Lehner, Ryerson's President, Chief Executive Officer, and Director, said, "Mike has been a tremendous asset to our organization and will be missed by all those who know him and have had the pleasure to work him throughout his remarkable career – he is truly a pillar of the metals service industry and is well respected not just within Ryerson, but the entire industry. He has always been a steady hand and partner at the till, helping navigate the ebbs, flows, highs, and lows of this dynamic industry." Mr. Lehner continued, "Mike has been a mentor, leader, partner, role model, friend, and Ryerson "All-Time Great." I am delighted that Mike is spending some more time with us in transition, and I wish Mike, Anne, and their 5 grandkids the best of everything in retirement!"

Second Quarter Results
Ryerson generated net sales of $1.23 billion in the second quarter of 2024, a decrease of 1.1%, compared to the first quarter of 2024. Revenue performance during the quarter benefitted from seasonal volume demand which increased 2.2%, but was offset by average selling prices decreasing 3.2%, which was below our guidance expectations.

Gross margin expanded sequentially by 60 basis points to 18.2% in the second quarter of 2024, compared to 17.6% in the first quarter of 2024, primarily driven by $10 million in LIFO income recorded in the second quarter of 2024 compared to LIFO expense of $1 million recorded in the first quarter of 2024. Due to a decline in metals futures prices, in the second quarter of 2024, LIFO income of $10 million was greater than our guidance expectations of a LIFO expense of $1 million. Excluding the impact of LIFO, gross margin contracted 20 basis points to 17.4% in the second quarter of 2024, compared to 17.6% in the first quarter. Gross margins for our product mix experienced compression in the second quarter of 2024 due to average selling prices for our carbon, aluminum, and stainless-steel products declining at a greater rate than our costs of goods sold.

Warehousing, delivery, selling, general and administrative expenses decreased 8.2%, or $17.8 million, to $199.0 million in the second quarter of 2024, compared to $216.8 million in the first quarter of 2024. Decreases in expenses were strongest in personnel-related expenses, operating expenses, and the reduction in start-up costs related to our University Park, IL service center, as well as a reduction in the costs related to our network ERP integration.

Net Income Attributable to Ryerson Holding Corporation for the second quarter of 2024 was $9.9 million, or $0.29 per diluted share, compared to a net loss of $7.6 million, or $0.22 per diluted share in the previous quarter. Ryerson generated Adjusted EBITDA, excluding LIFO, of $42.6 million in the second quarter of 2024, compared to the first quarter of 2024 Adjusted EBITDA, excluding LIFO of $40.2 million.

Liquidity & Debt Management
Ryerson generated $25.9 million of operating cash flow in the second quarter of 2024 due to net income of $10.3 million. The Company ended the second quarter of 2024 with $525 million of debt and $497 million of net debt, sequential increases of $28 million and $42 million, respectively, compared to the first quarter of 2024. Ryerson's net leverage ratio as of the second quarter of 2024 was 3.2x, above the Company's target leverage range of 0.5x – 2.0x, but still well below Ryerson's prior 10-year average. Ryerson's global liquidity, composed of cash and cash equivalents and availability on its revolving credit facilities, decreased to $585 million as of June 30, 2024, compared to $684 million as of March 31, 2024.

Shareholder Return Activity

Dividends. On July 30, 2024, the Board of Directors declared a quarterly cash dividend of $0.1875 per share of common stock, payable on September 19, 2024, to stockholders of record as of September 5, 2024, unchanged from the prior quarter. During the second quarter of 2024, Ryerson paid a quarterly dividend of $0.1875 per share, amounting to a cash return of approximately $6.4 million. 

Share Repurchases and Authorization. Ryerson repurchased 647,330 shares for $14.0 million in the open market during the second quarter of 2024. Ryerson made these repurchases in accordance with its share repurchase authorization, which allows the Company to acquire up to an aggregate amount of $100.0 million of the Company's common stock through April of 2025. As of June 30, 2024, $24.3 million of the $100.0 million remained under the existing authorization. On July 30, 2024, the Board of Directors approved a $50 million increase to the Company's share repurchase authorization and extended the authorization to April 2026.

Outlook Commentary
For the third quarter of 2024, Ryerson expects customer shipments to decrease 2% to 4%, quarter-over-quarter. The Company anticipates third-quarter net sales to be in the range of $1.12 billion to $1.16 billion, with average selling prices decreasing 3% to 5%. LIFO income in the third quarter of 2024 is expected to be $12 million. We expect adjusted EBITDA, excluding LIFO in the range of $21 million to $25 million and earnings per diluted share in the range of $0.01 to $0.10.

 

Second Quarter 2024 Major Product Metrics
	Net Sales (millions)
		Q2 2024				Q1 2024					Q2 2023				Quarter-over-quarter		Year-over-year
Carbon Steel	$	656			$	645				$	683				1.7 %		(4.0) %
Aluminum	$	273			$	276				$	297				(1.1) %		(8.1) %
Stainless Steel	$	277			$	297				$	338				(6.7) %		(18.0) %
	Tons Shipped (thousands)
		Q2 2024				Q1 2024					Q2 2023				Quarter-over-quarter		Year-over-year
Carbon Steel		395				385					384				2.6 %		2.9 %
Aluminum		52				50					51				4.0 %		2.0 %
Stainless Steel		58				61					59				(4.9) %		(1.7) %
	Average Selling Prices (per ton)
		Q2 2024				Q1 2024					Q2 2023				Quarter-over-quarter		Year-over-year
Carbon Steel	$		1,661		$		1,675			$		1,779			(0.9) %		(6.6) %
Aluminum	$		5,250		$		5,520			$		5,824			(4.9) %		(9.8) %
Stainless Steel	$		4,776		$		4,869			$		5,729			(1.9) %		(16.6) %

 

First Half 2024 Major Product Metrics
				Net Sales (millions)
				2024					2023			Year-over-year
Carbon Steel			$		1,301			$		1,375			(5.4) %
Aluminum			$		549			$		607			(9.6) %
Stainless Steel			$		574			$		716			(19.8) %
				Tons Shipped (thousands)
				2024					2023			Year-over-year
Carbon Steel					780					786			(0.8) %
Aluminum				102					103				(1.0) %
Stainless Steel				119					122				(2.5) %
				Average Selling Prices (per ton)
				2024					2023			Year-over-year
Carbon Steel			$		1,668			$		1,749			(4.7) %
Aluminum			$		5,382			$		5,893			(8.7) %
Stainless Steel			$		4,824			$		5,869			(17.8) %

 

Earnings Call Information
Ryerson will host a conference call to discuss second quarter 2024 financial results for the period ended June 30, 2024, on Wednesday, July 31, 2024, 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 around 4,400 employees and over 110 locations. Visit Ryerson at www.ryerson.com. 

Notes:
¹For EBITDA, Adjusted EBITDA and Adjusted EBITDA excluding LIFO please see Schedule 2
²Diluted EPS is Diluted earnings per share
³Operating expenses are Warehousing, delivery, selling, general, and administrative expenses
⁴FIFO cost basis is inventory cost excluding LIFO
⁵Net debt is defined as long term debt plus short term debt less cash and cash equivalents and excludes restricted cash

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.

 

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)
		2024								2023				First Six Months Ended
		Second				First				Second				June 30,
		Quarter				Quarter				Quarter				2024				2023
NET SALES		$	1,225.5			$	1,239.2			$	1,343.5			$	2,464.7			$	2,749.6
Cost of materials sold			1,002.0				1,021.6				1,082.6				2,023.6				2,224.5
Gross profit			223.5				217.6				260.9				441.1				525.1
Warehousing, delivery, selling, general, and administrative			199.0				216.8				202.6				415.8				396.8
Restructuring and other charges			1.7				—				—				1.7				—
OPERATING PROFIT			22.8				0.8				58.3				23.6				128.3
Other income and (expense), net			1.8				(0.2)				(0.3)				1.6				(0.4
Interest and other expense on debt			(11.3)				(10.1)				(8.3)				(21.4)				(15.9
INCOME (LOSS) BEFORE INCOME TAXES			13.3				(9.5)				49.7				3.8				112.0
Provision (benefit) for income taxes			3.0				(2.1)				12.1				0.9				26.9
NET INCOME (LOSS)			10.3				(7.4)				37.6				2.9				85.1
Less: Net income attributable to noncontrolling interest			0.4				0.2				—				0.6				0.2
NET INCOME (LOSS) ATTRIBUTABLE TO RYERSON HOLDING CORPORATION		$	9.9			$	(7.6)			$	37.6			$	2.3			$	84.9
EARNINGS (LOSS) PER SHARE
Basic		$	0.29			$	(0.22)			$	1.07			$	0.07			$	2.38
Diluted		$	0.29			$	(0.22)			$	1.06			$	0.07			$	2.33
Shares outstanding - basic			34.2				34.0				35.0				34.1				35.7
Shares outstanding - diluted			34.4				34.0				35.5				34.6				36.3
Dividends declared per share		$	0.1875			$	0.1875			$	0.180			$	0.375			$	0.350
Supplemental Data :
Tons shipped  (000)			508				497				496				1,005				1,015
Shipping days			64				64				64				128				128
Average selling price/ton		$	2,412			$	2,493			$	2,709			$	2,452			$	2,709
Gross profit/ton			440				438				526				439				517
Operating profit/ton			45				2				118				23				126
LIFO expense (income) per ton			(20)				2				(18)				(9)				(5
LIFO expense (income)			(10.0)				1.0				(9.0)				(9.0)				(5.0
Depreciation and amortization expense			18.0				17.4				15.1				35.4				28.8
Cash flow provided by (used in) operating activities			25.9				(47.8)				115.3				(21.9)				195.7
Capital expenditures			(22.7)				(21.8)				(46.3)				(44.5)				(74.1
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 Third Quarter 2024 Guidance reconciliation

 

Schedule 1
RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES
Condensed Consolidated Balance Sheets
(In millions, except shares)
		June 30,				December 31,
		2024				2023
Assets		(unaudited)
Current assets:
Cash and cash equivalents		$	28.0			$	54.3
Restricted cash			1.2				1.1
Receivables, less provisions of $3.2 at June 30, 2024 and $1.7 at December 31, 2023			529.0				467.7
Inventories			744.1				782.5
Prepaid expenses and other current assets			86.8				77.8
Total current assets			1,389.1				1,383.4
Property, plant, and equipment, at cost			1,098.8				1,071.5
Less: accumulated depreciation			495.4				481.9
Property, plant, and equipment, net			603.4				589.6
Operating lease assets			351.9				349.4
Other intangible assets			68.7				73.7
Goodwill			161.0				157.8
Deferred charges and other assets			17.1				15.7
Total assets		$	2,591.2			$	2,569.6
Liabilities
Current liabilities:
Accounts payable		$	439.3			$	463.4
Salaries, wages, and commissions			38.8				51.9
Other accrued liabilities			69.3				75.9
Short-term debt			1.4				8.2
Current portion of operating lease liabilities			30.2				30.5
Current portion of deferred employee benefits			4.0				4.0
Total current liabilities			583.0				633.9
Long-term debt			524.0				428.3
Deferred employee benefits			102.8				106.7
Noncurrent operating lease liabilities			341.8				336.8
Deferred income taxes			139.3				135.5
Other noncurrent liabilities			13.9				13.9
Total liabilities			1,704.8				1,655.1
Commitments and contingencies
Equity
Ryerson Holding Corporation stockholders' equity:
Preferred stock, $0.01 par value; 7,000,000 shares authorized and no shares issued at June 30, 2024 and December 31, 2023			—				—
Common stock, $0.01 par value; 100,000,000 shares authorized; 39,894,144 and 39,450,659 shares issued at June 30, 2024 and December 31, 2023, respectively			0.4				0.4
Capital in excess of par value			419.3				411.6
Retained earnings			802.6				813.2
Treasury stock, at cost - Common stock of 6,201,965 shares at June 30, 2024 and 5,413,434 shares at December 31, 2023			(198.1)				(179.3
Accumulated other comprehensive loss			(146.3)				(140.0
Total Ryerson Holding Corporation Stockholders' Equity			877.9				905.9
Noncontrolling interest			8.5				8.6
Total Equity			886.4				914.5
Total Liabilities and Stockholders' Equity		$	2,591.2			$	2,569.6

 

Schedule 2
RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES
Reconciliations of Net Income (loss) Attributable toRyerson Holding Corporation to EBITDA and Gross profit to Gross profit excluding LIFO
(Dollars in millions)
		2024								2023				First Six Months Ended
		Second				First				Second				June 30,
		Quarter				Quarter				Quarter				2024				2023
Net income (loss) attributable to Ryerson Holding Corporation		$	9.9			$	(7.6)			$	37.6			$	2.3			$	84.9
Interest and other expense on debt			11.3				10.1				8.3				21.4				15.9
Provision (benefit) for income taxes			3.0				(2.1)				12.1				0.9				26.9
Depreciation and amortization expense			18.0				17.4				15.1				35.4				28.8
EBITDA		$	42.2			$	17.8			$	73.1			$	60.0			$	156.5
Reorganization			12.7				20.1				4.9				32.8				6.7
Pension settlement loss			—				2.2				—				2.2				—
Benefit plan curtailment gain			—				(0.3)				—				(0.3)				—
Foreign currency transaction (gains) losses			(0.4)				(1.2)				1.3				(1.6)				1.2
Purchase consideration and other transaction costs (credits)			(1.1)				0.1				0.4				(1.0)				0.7
Other adjustments			(0.8)				0.5				(0.6)				(0.3)				0.1
Adjusted EBITDA		$	52.6			$	39.2			$	79.1			$	91.8			$	165.2
Adjusted EBITDA		$	52.6			$	39.2			$	79.1			$	91.8			$	165.2
LIFO expense (income)			(10.0)				1.0				(9.0)				(9.0)				(5.0
Adjusted EBITDA, excluding LIFO expense (income)		$	42.6			$	40.2			$	70.1			$	82.8			$	160.2
Net sales		$	1,225.5			$	1,239.2			$	1,343.5			$	2,464.7			$	2,749.6
Adjusted EBITDA, excluding LIFO expense (income), as a percentage of net sales			3.5	%			3.2	%			5.2	%			3.4	%			5.8
Gross profit		$	223.5			$	217.6			$	260.9			$	441.1			$	525.1
Gross margin			18.2	%			17.6	%			19.4	%			17.9	%			19.1
Gross profit		$	223.5			$	217.6			$	260.9			$	441.1			$	525.1
LIFO expense (income)			(10.0)				1.0				(9.0)				(9.0)				(5.0
Gross profit, excluding LIFO expense (income)		$	213.5			$	218.6			$	251.9			$	432.1			$	520.1
Gross margin, excluding LIFO expense (income)			17.4	%			17.6	%			18.7	%			17.5	%			18.9
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, reorganization expenses, gain on sales of assets, pension settlement loss, benefit plan curtailment gain, 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 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 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)
		2024								2023				First Six Months Ended
		Second				First				Second				June 30,
		Quarter				Quarter				Quarter				2024				2023
Net income (loss) attributable to Ryerson Holding Corporation		$	9.9			$	(7.6)			$	37.6			$	2.3			$	84.9
Restructuring and other charges			1.7				—				—				1.7				—
Pension settlement loss			—				2.2				—				2.2				—
Benefit plan curtailment gain			—				(0.3)				—				(0.3)				—
Benefit for income taxes			(0.4)				(0.5)				—				(0.9)				—
Adjusted net income (loss) attributable to Ryerson Holding Corporation		$	11.2			$	(6.2)			$	37.6			$	5.0			$	84.9
Adjusted diluted earnings (loss) per share		$	0.33			$	(0.18)			$	1.06			$	0.14			$	2.33
Shares outstanding - diluted			34.4				34.0				35.5				34.6				36.3
Note: Adjusted net income (loss) and Adjusted earnings (loss) per share is presented to provide a means of comparison with periods that do not include similar adjustments
Schedule 4
RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES
Cash Flow from Operations to Free Cash Flow Yield
(Dollars in Millions)
		2024								2023				First Six Months Ended
		Second				First				Second				June 30,
		Quarter				Quarter				Quarter				2024				2023
Net cash provided by (used in) operating activities		$	25.9			$	(47.8)			$	115.3			$	(21.9)			$	195.7
Capital expenditures			(22.7)				(21.8)				(46.3)				(44.5)				(74.1
Proceeds from sales of property, plant, and equipment			0.1				1.4				0.1				1.5				0.1
Free cash flow		$	3.3			$	(68.2)			$	69.1			$	(64.9)			$	121.7
Market capitalization		$	657.0			$	1,150.1			$	1,491.8			$	657.0			$	1,491.8
Free cash flow yield			0.5	%			(5.9)	%			4.6	%			(9.9)	%			8.2
Note: Market capitalization is calculated using June 30, 2024, March 31, 2024, and June 30, 2023 stock prices and shares outstanding

 

Schedule 5
RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES
Reconciliation of Third Quarter 2024 Net Income Attributable to Ryerson Holding Corporation toAdj. EBITDA, excl. LIFO Guidance
(Dollars in Millions, except Per Share Data)
		Third Quarter 2024
		Low				High
Net income attributable to Ryerson Holding Corporation		$	—			$	3
Diluted earnings per share		$	0.01			$	0.10
Interest and other expense on debt			12				12
Provision for income taxes			—				1
Depreciation and amortization expense			18				18
EBITDA		$	28			$	32
Adjustments			5				5
Adjusted EBITDA		$	33			$	37
LIFO income			(12)				(12)
Adjusted EBITDA, excluding LIFO income		$	21			$	25
Note: See the note within Schedule 2 for a description of EBITDA and Adjusted EBITDA

 

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SOURCE Ryerson Holding Corporation

FAQ

What was Ryerson's (RYI) net income for Q2 2024?

Ryerson (RYI) reported a net income of $9.9 million for Q2 2024.

How much did Ryerson (RYI) return to shareholders in Q2 2024?

Ryerson (RYI) returned $20.4 million to shareholders in Q2 2024, consisting of $14.0 million in share repurchases and $6.4 million in dividends.

What is Ryerson's (RYI) updated cost reduction target for 2024?

Ryerson (RYI) updated its annualized cost reduction expectations to approximately $60 million for 2024, increased from the previously announced $40 million target.

What is Ryerson's (RYI) Q3 2024 dividend amount?

Ryerson (RYI) announced a Q3 2024 dividend of $0.1875 per share.

How much did Ryerson (RYI) increase its share repurchase authorization by in July 2024?

Ryerson (RYI) increased its share repurchase authorization by $50 million in July 2024.