CHICAGO, March 16, 2015 /PRNewswire/ -- Ryerson
Holding Corporation (NYSE: RYI), a leading distributor and
processor of metals, today reported results for the fourth quarter
and full year 2014.
2014 Results
Revenues for 2014 were
$3.6 billion, an increase of 4.7
percent from 2013. Gross margin was 16.4 percent for 2014,
compared to 17.8 percent for 2013. However, gross margin,
excluding LIFO was 17.6 percent for 2014, compared to 16.9 percent
for 2013. A reconciliation of gross margin, excluding LIFO to
gross margin is included below in this news release.
Warehousing, delivery, selling, general and administrative
expense was up $29.1 million, or 6.1
percent, year-over-year, primarily due to expenses associated with
our Initial Public Offering (IPO) completed in the third
quarter. Excluding a $25.0
million charge to terminate the advisory services agreement
with Platinum Equity and $7.7 million
of compensation expense associated with the IPO, expenses were down
0.7 percent compared to 2013.
For 2014, net loss attributable to Ryerson Holding Corporation
was $25.7 million, or a loss of
$1.01 per share, compared to net
income attributable to Ryerson Holding Corporation of $127.3 million for 2013. In addition to the
$32.7 million of IPO-related expenses
noted above, the third quarter of 2014 included a $11.2 million expense related to the premium paid
to redeem a portion of the 11¼ percent Senior Notes due 2018, and a
$1.2 million non-cash charge to
write-off unamortized debt issuance costs related to the Note
redemption. Excluding the IPO-related and debt redemption expenses,
net of income taxes, net income attributable to Ryerson Holding
Corporation was $11.6 million, or
$0.46 per share, for 2014. 2013
results included a $124.2 million
reversal in the valuation allowance on deferred tax assets.
Adjusting for this item, net income attributable to Ryerson Holding
Corporation was $3.1 million for
2013. A reconciliation of expenses, net income, and earnings
per share, excluding IPO-related and debt redemption expenses and
reversal of the valuation adjustment to their comparable GAAP
financial measure is included below in this earnings
release.
Adjusted EBITDA, excluding LIFO was $217.5 million for 2014, an expansion of 28
percent compared to $169.6 million
for 2013. A reconciliation of Adjusted EBITDA, excluding LIFO
to net income attributable to Ryerson Holding Corporation is
included below in this news release.
"We showed year-over-year improvement in our key metrics for
2014, despite second half margin pressure driven by metal price
deflation, high metal import levels and high service center level
inventories," said Mike Arnold,
Ryerson's president and chief executive officer. "For the
year, we continued to effectively manage gross margins, expenses
and working capital. And, the company captured a steady
expansion in our targeted areas of processed plate and long
products. Based on Adjusted EBITDA, excluding LIFO, we had
one of our best performances in years."
Fourth Quarter 2014
For the fourth quarter of
2014, revenues of $868.4 million
increased 8.2 percent year-over-year from the fourth quarter of
2013 and declined 8.4 percent sequentially from the third quarter
of 2014.
Gross margin was 16.4 percent for the fourth quarter of 2014,
compared to 18.3 percent in the year-ago period and 15.8 percent in
the third quarter of 2014. Gross margin, excluding LIFO was 16.4
percent for the fourth quarter of 2014, compared to 17.5 percent in
the fourth quarter of 2013 and 17.8 percent in the third quarter of
2014. A reconciliation of gross margin, excluding LIFO to
gross margin is included below in this news release.
Fourth quarter 2014 warehousing, delivery, selling, general and
administrative expense was unchanged compared to the year-ago
period and down 24.0 percent sequentially. Excluding IPO-related
expenses of $32.7 million from the
third quarter of 2014, expense was down 3.5 percent
sequentially.
Net income attributable to Ryerson Holding Corporation was
$4.8 million, or $0.15 per share for the fourth quarter of 2014,
compared to $118.2 million in the
year-ago period and a net loss attributable to Ryerson Holding
Corporation of $34.7 million for the
third quarter of 2014. Excluding the IPO-related and debt
redemption expenses, net of income taxes, net income attributable
to Ryerson Holding Corporation was $2.6
million for the third quarter of 2014. Excluding the
$124.2 million reversal in the
valuation allowance on deferred tax assets, the net loss
attributable to Ryerson Holding Corporation would have been
$6.0 million for the fourth quarter
of 2013. A reconciliation of expenses, net income, and earnings per
share, excluding IPO-related and debt redemption expenses and
reversal of the valuation adjustment to their comparable GAAP
financial measure is included below in this earnings
release.
Adjusted EBITDA, excluding LIFO was $40.1
million for the fourth quarter of 2014, compared to
$41.5 million in the fourth quarter
of 2013 and $62.2 million in the
third quarter of 2014. A reconciliation of Adjusted EBITDA,
excluding LIFO to net income attributable to Ryerson Holding
Corporation is included below in this news release.
Fay Industries
At year-end 2014, Ryerson
completed the acquisition of Fay Industries, a privately-owned
metals service center company with annual revenue of
approximately $30 million. Fay brings extensive bar and
tube processing capabilities, advancing Ryerson's strategic focus
on value-added services. The combination also enhances Ryerson's
ability to serve industries including heavy equipment, mining, oil
and gas, and industrial maintenance and repair.
Pension Contributions
Ryerson contributed
$55 million to the company's pension
plans in 2014. Ryerson's 2015 pension contributions are
expected to be approximately $43
million.
Full-Year Business Metrics
|
2014
|
2013
|
Year-Over-Year
Change
|
|
Tons Shipped (In
thousands)
|
2,024
|
2,038
|
-0.7%
|
|
|
Average selling
price/ton
|
$1,790
|
$1,698
|
5.4%
|
|
Average
cost/ton
|
1,497
|
1,396
|
7.2%
|
|
Average
cost/ton, excluding LIFO
|
1,476
|
1,412
|
4.5%
|
Full-Year Major Product Metrics
|
Tons Shipped (Tons
in thousands)
|
Average Selling
Price per Ton Shipped
|
|
2014
|
2013
|
Year-Over-Year
Change
|
Year-Over-Year
Change
|
|
Carbon
steel
|
1,577
|
1,612
|
-2.2%
|
5.4%
|
|
Aluminum
|
194
|
182
|
6.6%
|
-0.4%
|
|
Stainless
steel
|
243
|
232
|
4.7%
|
3.9%
|
|
Net Sales (Dollars
in millions)
|
|
2014
|
2013
|
Year-Over-Year
Change
|
|
Carbon
steel
|
$1,900
|
$1,843
|
3.1%
|
|
Aluminum
|
779
|
734
|
6.1%
|
|
Stainless
steel
|
867
|
797
|
8.8%
|
Full-Year Tons Shipped
|
Year-over-year
change
|
|
U.S.
|
1.9%
|
|
Non-U.S.
|
-14.5%
|
Fourth Quarter 2014 Business Metrics
|
Fourth
Quarter
2014
|
Third
Quarter
2014
|
Fourth
Quarter
2013
|
Sequential Quarter
Change
|
Year-Over-Year
Change
|
|
Tons shipped (In
thousands)
|
471
|
518
|
479
|
-9.1%
|
-1.7%
|
|
|
Average selling
price/ton
|
$1,844
|
$1,830
|
$1,675
|
0.8%
|
10.1%
|
|
Average
cost/ton
|
1,542
|
1,541
|
1,368
|
0.1%
|
12.7%
|
|
Average cost/ton,
excluding LIFO
|
1,541
|
1,504
|
1,381
|
2.5%
|
11.6%
|
Fourth Quarter 2014 Major Product Metrics
|
|
Tons Shipped (Tons
in thousands)
|
Average Selling
Price per Ton Shipped
|
|
Fourth Quarter 2014
|
Third Quarter 2014
|
Fourth Quarter 2013
|
Sequential Quarter
Change
|
Year-Over-Year
Change
|
Sequential Quarter
Change
|
Year-Over-Year
Change
|
|
Carbon
steel
|
363
|
403
|
381
|
-9.9%
|
-4.7%
|
0.3%
|
5.9%
|
|
Aluminum
|
48
|
51
|
42
|
-5.9%
|
14.3%
|
1.1%
|
4.4%
|
|
Stainless
Steel
|
57
|
61
|
54
|
-6.6%
|
5.6%
|
-1.7%
|
12.1%
|
|
Net Sales (Dollars
in millions)
|
|
Fourth Quarter
2014
|
Third Quarter
2014
|
Fourth Quarter
2013
|
Sequential Quarter
Change
|
Year-Over-Year
Change
|
|
Carbon
steel
|
$441
|
$488
|
$437
|
-9.6%
|
0.9%
|
|
Aluminum
|
198
|
208
|
166
|
-4.8%
|
19.3%
|
|
Stainless
Steel
|
213
|
232
|
180
|
-8.2%
|
18.3%
|
Earnings Call Information
The company will host
a conference call to discuss its fourth quarter and full-year 2014
results on Tuesday, March 17, at
10 a.m. Eastern Time. Participants
may access the conference call by dialing 888-695-0614 (U.S.,
Canada) and 719-325-2456
(International) and using conference ID 8282096. The call will also
be broadcast live in the Investor Relations section of the
company's Internet site, ir.ryerson.com. A replay will be available
on the site for 90 days.
About Ryerson
Ryerson is a processor and
distributor of metals with operations in the United States, Mexico, Canada, China
and Brazil. The company serves a
variety of industries, including customers making products or
equipment for construction, packaging, oil and gas and truck
trailers. Founded in 1842, Ryerson is headquartered
in the United States and employs approximately 3,700
employees in more than 100 locations. For more information, visit
www.ryerson.com.
Certain statements made in this press release and other written
or oral statements made by or on behalf of the company constitute
"forward-looking statements" within the meaning of the federal
securities laws, including statements regarding our future
performance, as well as management's expectations, beliefs,
intentions, plans, estimates or projections relating to the
future. Such statements can be identified by the use of
forward-looking terminology such as "believes," "expects," "may,"
"estimates," "will," "should," "plans" or "anticipates" or the
negative thereof or other variations thereon or comparable
terminology, or by discussions of strategy. The company cautions
that any such forward-looking statements are not guarantees of
future performance and may involve significant risks and
uncertainties, and that actual results may vary materially from
those in the forward-looking statements as a result of various
factors. Among the factors that significantly impact the metals
distribution industry and our business are: the cyclicality of our
business; the highly competitive and fragmented market in which we
operate; fluctuating metal prices; our substantial indebtedness and
the covenants in instruments governing such indebtedness; the
integration of acquired operations; regulatory and other
operational risks associated with our operations located inside and
outside of the United States; work
stoppages; obligations regarding certain employee retirement
benefit plans; the ownership of a majority of our equity securities
by a single investor group; currency fluctuations; and
consolidation in the metals producer industry. Forward-looking
statements should, therefore, be considered in light of various
factors, including those set forth above and those set forth under
"Risk Factors" in our annual report on Form 10-K for the year ended
December 31, 2014 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
|
|
Year Ended
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Quarter
|
|
December
31,
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
|
|
$
868.4
|
|
$
802.5
|
|
$
947.9
|
|
$
3,622.2
|
|
$
3,460.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of materials
sold
|
|
726.2
|
|
655.3
|
|
798.4
|
|
3,028.4
|
|
2,843.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
142.2
|
|
147.2
|
|
149.5
|
|
593.8
|
|
616.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warehousing,
delivery, selling, general and administrative (1)
|
|
117.1
|
|
116.9
|
|
154.1
|
|
509.2
|
|
480.1
|
|
Restructuring and
other charges
|
|
-
|
|
(0.2)
|
|
-
|
|
-
|
|
1.9
|
|
Gain on sale of
assets
|
|
(0.5)
|
|
-
|
|
(1.3)
|
|
(1.8)
|
|
-
|
|
Impairment charges on
fixed assets and goodwill
|
|
-
|
|
1.2
|
|
-
|
|
-
|
|
10.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
(LOSS)
|
|
25.6
|
|
29.3
|
|
(3.3)
|
|
86.4
|
|
124.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income and
(expense), net (2)
|
|
2.3
|
|
(2.3)
|
|
(8.5)
|
|
(5.9)
|
|
(0.2)
|
|
Interest and other
expense on debt (3)
|
|
(24.6)
|
|
(27.2)
|
|
(27.9)
|
|
(107.4)
|
|
(110.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
|
3.3
|
|
(0.2)
|
|
(39.7)
|
|
(26.9)
|
|
13.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit for income
taxes
|
|
(1.4)
|
|
(118.2)
|
|
(4.9)
|
|
(0.7)
|
|
(112.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
|
4.7
|
|
118.0
|
|
(34.8)
|
|
(26.2)
|
|
126.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to noncontrolling interest
|
|
(0.1)
|
|
(0.2)
|
|
(0.1)
|
|
(0.5)
|
|
(1.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO RYERSON HOLDING
|
|
$
4.8
|
|
$
118.2
|
|
$
(34.7)
|
|
$
(25.7)
|
|
$
127.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
$
0.15
|
|
$
5.56
|
|
$
(1.26)
|
|
$
(1.01)
|
|
$
5.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
basic and diluted
|
|
32.0
|
|
21.2
|
|
27.5
|
|
25.4
|
|
21.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons shipped
(000)
|
|
|
471
|
|
479
|
|
518
|
|
2,024
|
|
2,038
|
|
Shipping
days
|
|
|
61
|
|
61
|
|
64
|
|
252
|
|
252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price/ton
|
|
$
1,844
|
|
$
1,675
|
|
$
1,830
|
|
$
1,790
|
|
$
1,698
|
|
Gross
profit/ton
|
|
|
302
|
|
307
|
|
289
|
|
293
|
|
302
|
|
Operating
profit/ton
|
|
|
54
|
|
61
|
|
(6)
|
|
43
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
(income)/ton
|
|
1
|
|
(13)
|
|
37
|
|
21
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
(income)
|
|
$
0.3
|
|
$
(6.4)
|
|
$
19.1
|
|
$
42.3
|
|
$
(33.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
11.6
|
|
11.9
|
|
11.6
|
|
45.6
|
|
46.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities
|
|
(38.6)
|
|
(39.9)
|
|
(44.2)
|
|
(73.3)
|
|
48.1
|
|
Capital
expenditures
|
|
|
(7.9)
|
|
(3.7)
|
|
(5.5)
|
|
(21.6)
|
|
(20.2)
|
|
|
(1)
|
The three month
period ended September 30, 2014 and the year ended December 31,
2014 include a $25.0 million charge to terminate the advisory
services agreement with Platinum
Equity Adviors, LLC in connection with our initial public offering
on August 13, 2014. The three month period ended September 30, 2014
and the year ended December 31,
2014 also include the recognition of $7.7 million of
transaction-related compensation expense associated with the
initial public offering.
|
|
|
|
(2)
|
The three month
period ended September 30, 2014 and the year ended December 31,
2014 include $11.2 million of expense related to the premium paid
to redeem $99.5 million of our
11.25% Senior Notes.
|
|
|
(3)
|
The three month
period ended September 30, 2014 and the year ended December 31,
2014 include a non-cash charge of $1.2 million to write-off
unamortized debt issuance costs
related to the redemption of our 11.25% Senior Notes.
|
|
|
|
See Schedule 1 for
EBITDA and Adjusted EBITDA reconciliation.
|
|
See Schedule 2 for
EPS reconciliation.
|
|
See Schedule 3 for
Net Income Attributable to Ryerson Holding
reconciliation.
|
|
|
|
Schedule
1
|
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
Reconciliations of
Net Income (Loss) Attributable to Ryerson Holding Corporation to
EBITDA and Gross profit to Gross profit exclduing
LIFO
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
|
|
Year Ended
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Quarter
|
|
December
31,
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Ryerson Holding Corporation
|
|
$
4.8
|
|
$
118.2
|
|
$
(34.7)
|
|
$
(25.7)
|
|
$
127.3
|
|
Interest and other
expense on debt
|
|
24.6
|
|
27.2
|
|
27.9
|
|
107.4
|
|
110.5
|
|
Benefit for income
taxes
|
|
|
(1.4)
|
|
(118.2)
|
|
(4.9)
|
|
(0.7)
|
|
(112.3)
|
|
Depreciation and
amortization expense
|
|
11.6
|
|
11.9
|
|
11.6
|
|
45.6
|
|
46.6
|
|
EBITDA
|
|
|
|
|
$
39.6
|
|
$
39.1
|
|
$
(0.1)
|
|
$
126.6
|
|
$
172.1
|
|
Gain on sale of
assets
|
|
|
(0.5)
|
|
-
|
|
(1.3)
|
|
(1.8)
|
|
-
|
|
Gain on insurance
settlement
|
|
(0.4)
|
|
-
|
|
-
|
|
(0.4)
|
|
-
|
|
Reorganization
|
|
|
2.3
|
|
3.0
|
|
1.7
|
|
5.4
|
|
11.5
|
|
Advisory services
fee
|
|
|
-
|
|
1.2
|
|
25.8
|
|
28.3
|
|
5.0
|
|
Foreign currency
transaction gains
|
|
(2.4)
|
|
(2.1)
|
|
(2.9)
|
|
(5.3)
|
|
(3.7)
|
|
Loss on retirement of
debt
|
|
-
|
|
-
|
|
11.2
|
|
11.2
|
|
-
|
|
Impairment charges on
fixed assets and goodwill
|
|
-
|
|
1.2
|
|
-
|
|
-
|
|
10.0
|
|
Purchase
consideration and other transaction costs
|
|
1.1
|
|
0.8
|
|
8.5
|
|
11.2
|
|
3.5
|
|
Other
adjustments
|
|
|
0.1
|
|
4.7
|
|
0.2
|
|
-
|
|
4.2
|
|
Adjusted
EBITDA
|
|
|
$
39.8
|
|
$
47.9
|
|
$
43.1
|
|
$
175.2
|
|
$
202.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
$
39.8
|
|
$
47.9
|
|
$
43.1
|
|
$
175.2
|
|
$
202.6
|
|
LIFO expense
(income)
|
|
|
0.3
|
|
(6.4)
|
|
19.1
|
|
42.3
|
|
(33.0)
|
|
Adjusted EBITDA,
excluding LIFO expense (income)
|
|
$
40.1
|
|
$
41.5
|
|
$
62.2
|
|
$
217.5
|
|
$
169.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
$
868.4
|
|
$
802.5
|
|
$
947.9
|
|
$
3,622.2
|
|
$
3,460.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
excluding LIFO expense (income), as a percentage of net
sales
|
|
|
|
|
|
|
|
|
|
|
|
4.6%
|
|
5.2%
|
|
6.6%
|
|
6.0%
|
|
4.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
$
142.2
|
|
$
147.2
|
|
$
149.5
|
|
$
593.8
|
|
$
616.6
|
|
LIFO expense
(income)
|
|
|
0.3
|
|
(6.4)
|
|
19.1
|
|
42.3
|
|
(33.0)
|
|
Gross profit,
excluding LIFO expense (income)
|
|
$
142.5
|
|
$
140.8
|
|
$
168.6
|
|
$
636.1
|
|
$
583.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin,
excluding LIFO expense (income)
|
|
16.4%
|
|
17.5%
|
|
17.8%
|
|
17.6%
|
|
16.9%
|
|
|
|
|
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, impairment charges on fixed
assets and goodwill, reorganization expenses and the payment of
management fees. 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 plus LIFO expense (or minus LIFO income), divided by
net sales. We have excluded LIFO expense (income) from the gross
margin and Adjusted EBITDA as a percentage of net sales metrics in
order to provide a means of comparison amongst our competitors who
may not use the same basis of accounting for inventories as we do.
Our definitions of EBITDA, Adjusted EBITDA, Adjusted EBITDA,
excluding LIFO expense (income), 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
2
|
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
|
|
|
|
|
|
Reconciliation of
Expenses, Net Income and Earnings per Share Excluding IPO-related
and Debt Redemption Charges
|
|
|
|
|
|
|
|
(Dollars and Shares
in Millions, Except Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Year Ended
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
December 31,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Ryerson Holding Corporation
|
|
$
(34.7)
|
|
$
(25.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPO-related and Debt
Redemption Charges to Exclude:
|
|
|
|
|
|
|
|
|
|
|
|
Advisory services
termination fee
|
|
$
25.0
|
|
$
25.0
|
|
|
|
|
|
|
|
Transaction-related
compensation expense
|
|
7.7
|
|
7.7
|
|
|
|
|
|
|
|
Loss on retirement of
debt
|
|
11.2
|
|
11.2
|
|
|
|
|
|
|
|
Write-off of
unamortized debt issuance costs
|
|
1.2
|
|
1.2
|
|
|
|
|
|
|
|
Total pre-tax
IPO-related and debt redemption charges
|
|
45.1
|
|
45.1
|
|
|
|
|
|
|
|
Benefit for income
taxes
|
|
|
7.8
|
|
7.8
|
|
|
|
|
|
|
|
Total net
charges
|
|
|
$
37.3
|
|
$
37.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Ryerson Holding Corporation, excluding IPO related
and debt redemption charges
|
|
|
|
|
|
|
|
|
|
|
|
$
2.6
|
|
$
11.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
excluding one-time charges IPO related and debt redemption
charges
|
|
$
0.09
|
|
$
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
basic and diluted
|
|
27.5
|
|
25.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warehousing,
delivery, selling, general and administrative expenses
|
|
$
154.1
|
|
$
509.2
|
|
|
|
|
|
|
|
Advisory services
termination fee
|
|
25.0
|
|
25.0
|
|
|
|
|
|
|
|
Transaction-related
compensation expense
|
|
7.7
|
|
7.7
|
|
|
|
|
|
|
|
Warehousing,
delivery, selling, general and administrative expenses, excluding
IPO-related expenses
|
|
|
|
|
|
|
|
|
|
|
|
$
121.4
|
|
$
476.5
|
|
|
|
|
|
|
|
|
|
Note:
|
Expenses, Net Income
and Earnings per share excluding IPO-related and debt redemption
charges is presented to provide a means of comparison to our prior
periods that do not include IPO-related and debt redemption
charges.
|
|
|
|
|
|
Schedule
3
|
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
|
|
|
|
|
|
Reconciliation of Net
Income Attributable to Ryerson Holding Corporation
|
|
|
|
|
|
|
|
Excluding Change in
Valuation Allowance
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Year Ended
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
December 31,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Ryerson Holding Corporation
|
|
$
118.2
|
|
$
127.3
|
|
|
|
|
|
|
|
Change in valuation
allowance
|
|
124.2
|
|
124.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Ryerson Holding Corporation, excluding IPO related
and debt redemption charges
|
|
|
|
|
|
|
|
|
|
|
|
$
(6.0)
|
|
$
3.1
|
|
|
|
|
|
|
|
|
Note:
|
Net Income
attributable to Ryerson Holding Corporation excluding the change in
valuation allowance is presented to provide a means of comparison
to other periods that do not include tax benefits from changes in
valuation allowance.
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ryerson-announces-2014-results-300051280.html
SOURCE Ryerson Holding Corporation