CHICAGO, May 7, 2015 /PRNewswire/ -- Ryerson Holding
Corporation (NYSE: RYI), a leading distributor and processor of
metals, today reported results for the first quarter of 2015.
First Quarter 2015 Results
Revenues for the
first quarter of 2015 were $868.0
million, unchanged from the fourth quarter of 2014 and down
0.7 percent from the first quarter of 2014. Gross margin was 17.3
percent for the first quarter of 2015, compared to 16.4 percent for
the fourth quarter of 2014 and 16.9 percent in the year-ago
period. Gross margin, excluding LIFO was 15.9 percent in the
first quarter of 2015, compared to 16.4 percent for the fourth
quarter of 2014 and 17.9 percent for the first quarter of 2014. 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 down 0.6 percent sequentially, from the fourth quarter
of 2014 and down 1.2 percent year-over-year.
Operating profit was $33.6 million
for the first quarter of 2015, compared with $25.6 million in the fourth quarter of 2014 and
$29.9 million in the first quarter of
2014.
The net loss attributable to Ryerson Holding Corporation was
$2.5 million, or a loss of
$0.08 per share in the first quarter
of 2015, compared to net income attributable to Ryerson Holding
Corporation of $4.8 million in the
fourth quarter of 2014 and $1.6
million in the first quarter of 2014. In the first
quarter of 2015, the company took a non-cash charge of $12.3 million, or $0.23 per share after tax, to recognize the
decrease in value of its investment in A.
M. Castle & Co. Excluding the impairment charge on this
investment, earnings per share would have been $0.15 in the first quarter of 2015. A
reconciliation of net income attributable to Ryerson Holding
Corporation and earnings per share, excluding impairment charge on
assets to net loss attributable to Ryerson Holding Corporation is
included below in this news release. The company also repurchased
and retired $29.8 million principal
amount of its 2017 and 2018 Notes, resulting in a $0.8 million loss in the first quarter of
2015.
Adjusted EBITDA, excluding LIFO was $35.9
million for the first quarter of 2015, compared to
$40.1 million in the fourth quarter
of 2014 and $53.2 million in the
first 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.
During the first quarter of 2015, Ryerson reduced inventory by
$76 million, or 10 percent. As a
result of the company's working capital management, Ryerson
generated cash flow from operating activities of $101.6 million. Capital expenditures in the
quarter were $5.7 million.
"We continued to effectively manage areas within our control,
such as inventory and expenses," said Mike
Arnold, Ryerson's president and chief executive
officer. "As a result, we generated strong, counter-cyclical
cash flow. However, macro-conditions – with overall softening
of demand and supply exceeding demand across virtually all metal
products on a global basis – pressured our results in the
quarter."
"Continued deflationary pressure in metal prices resulted in
gross margin compression in the quarter, as average cost
inventories exceeded spot replacement costs," continued
Arnold. "We are aggressively managing inventories so we can
align our average cost inventory with current prices and expand
margins as we capture the benefits of our corporate transformation
and value-added strategy."
First Quarter 2015 Business Metrics
|
First
Quarter
2015
|
Fourth
Quarter
2014
|
First
Quarter
2014
|
Sequential Quarter
Change
|
Year-Over-Year
Change
|
|
Tons shipped (In
thousands)
|
476
|
471
|
506
|
1.1%
|
-5.9%
|
|
|
Average selling
price/ton
|
$1,824
|
$1,844
|
$1,728
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-1.1%
|
5.6%
|
|
Average
cost/ton
|
1,509
|
1,542
|
1,436
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-2.1%
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5.1%
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Average cost/ton,
excluding LIFO
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1,534
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1,541
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1,418
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-0.5%
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8.2%
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First Quarter 2015 Major Product Metrics
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|
Tons Shipped (Tons
in thousands)
|
Average Selling
Price per Ton Shipped
|
|
First Quarter
2015
|
Fourth Quarter
2014
|
First Quarter
2014
|
Sequential Quarter
Change
|
Year-Over-Year
Change
|
Sequential Quarter
Change
|
Year-Over-Year
Change
|
|
Carbon
steel
|
368
|
363
|
399
|
1.4%
|
-7.8%
|
-0.2%
|
1.4%
|
|
Aluminum
|
48
|
48
|
45
|
0.0%
|
6.7%
|
1.5%
|
5.3%
|
|
Stainless
Steel
|
57
|
57
|
60
|
0.0%
|
-5.0%
|
-3.8%
|
9.0%
|
|
|
Net Sales (Dollars
in millions)
|
|
First
Quarter
2015
|
Fourth Quarter
2014
|
First
Quarter
2014
|
Sequential Quarter
Change
|
Year-Over-Year
Change
|
|
Carbon
steel
|
$446
|
$441
|
$477
|
1.1%
|
-6.5%
|
|
Aluminum
|
201
|
198
|
179
|
1.5%
|
12.3%
|
|
Stainless
Steel
|
205
|
213
|
198
|
-3.8%
|
3.5%
|
Earnings Call Information
The company will host
a conference call to discuss its first quarter 2015 results on
Friday, May 8, at 10 a.m. Eastern Time. Participants may access the
conference call by dialing 888-670-2253 (U.S., Canada) and 913-312-1507 (International) and
using conference ID 9708795. 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 3,600
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.
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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)
|
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|
|
|
|
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|
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|
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|
|
Fourth
|
|
|
|
|
|
First
Quarter
|
|
Quarter
|
|
|
|
|
|
2015
|
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2014
|
|
2014
|
|
|
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|
NET SALES
|
|
$ 868.0
|
|
$ 874.4
|
|
$ 868.4
|
|
|
|
|
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|
|
|
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|
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Cost of materials
sold
|
|
718.0
|
|
726.7
|
|
726.2
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Gross
profit
|
|
150.0
|
|
147.7
|
|
142.2
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|
|
|
|
|
|
|
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Warehousing,
delivery, selling, general and administrative
|
|
116.4
|
|
117.8
|
|
117.1
|
|
Gain on sale of
assets
|
|
-
|
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-
|
|
(0.5)
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OPERATING
PROFIT
|
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33.6
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|
29.9
|
|
25.6
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Other income and
(expense), net
|
|
(11.3)
|
|
2.0
|
|
2.3
|
|
Interest and other
expense on debt
|
|
(25.3)
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|
(27.4)
|
|
(24.6)
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INCOME (LOSS) BEFORE
INCOME TAXES
|
|
(3.0)
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4.5
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3.3
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Provision (benefit)
for income taxes
|
|
(0.2)
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|
3.1
|
|
(1.4)
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NET INCOME
(LOSS)
|
|
(2.8)
|
|
1.4
|
|
4.7
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|
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|
|
|
|
|
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|
Less: Net loss
attributable to noncontrolling interest
|
|
(0.3)
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(0.2)
|
|
(0.1)
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NET INCOME (LOSS)
ATTRIBUTABLE TO RYERSON HOLDING CORPORATION
|
|
$ (2.5)
|
|
$
1.6
|
|
$
4.8
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|
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EARNINGS (LOSS) PER
SHARE
|
|
|
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|
|
|
|
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|
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|
|
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|
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Basic and
diluted
|
|
$ (0.08)
|
|
$ 0.08
|
|
$ 0.15
|
|
|
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|
|
|
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Shares outstanding -
basic and diluted
|
|
32.0
|
|
21.0
|
|
32.0
|
|
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Supplemental Data
:
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
Tons shipped
(000)
|
|
476
|
|
506
|
|
471
|
|
Shipping
days
|
|
63
|
|
63
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price/ton
|
|
$ 1,824
|
|
$ 1,728
|
|
$ 1,844
|
|
Gross
profit/ton
|
|
315
|
|
292
|
|
302
|
|
Operating
profit/ton
|
|
71
|
|
59
|
|
54
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
(income)/ton
|
|
(25)
|
|
18
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
(income)
|
|
$ (12.0)
|
|
$
9.2
|
|
$
0.3
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
11.1
|
|
10.8
|
|
11.6
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities
|
|
101.6
|
|
25.1
|
|
(38.6)
|
|
Capital
expenditures
|
|
(5.7)
|
|
(3.4)
|
|
(7.9)
|
|
|
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|
|
|
|
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|
See Schedule 1 for
EBITDA and Adjusted EBITDA reconciliation
|
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See Schedule 2 for
EPS reconciliation
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Schedule
1
|
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|
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
|
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(Dollars in
millions)
|
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|
Fourth
|
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|
First
Quarter
|
|
Quarter
|
|
|
|
|
|
2015
|
|
2014
|
|
2014
|
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|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Ryerson Holding Corporation
|
|
$ (2.5)
|
|
$
1.6
|
|
$
4.8
|
|
Interest and other
expense on debt
|
|
25.3
|
|
27.4
|
|
24.6
|
|
Provision (benefit)
for income taxes
|
|
(0.2)
|
|
3.1
|
|
(1.4)
|
|
Depreciation and
amortization expense
|
|
11.1
|
|
10.8
|
|
11.6
|
|
EBITDA
|
|
|
$ 33.7
|
|
$ 42.9
|
|
$
39.6
|
|
Gain on sale of
assets
|
|
-
|
|
-
|
|
(0.5)
|
|
Gain on insurance
settlement
|
|
-
|
|
-
|
|
(0.4)
|
|
Reorganization
|
|
1.5
|
|
1.0
|
|
2.3
|
|
Advisory services
fee
|
|
-
|
|
1.3
|
|
-
|
|
Foreign currency
transaction gains
|
|
(1.6)
|
|
(2.2)
|
|
(2.4)
|
|
Loss on retirement of
debt
|
|
0.5
|
|
-
|
|
-
|
|
Impairment charge on
assets
|
|
12.3
|
|
-
|
|
-
|
|
Purchase
consideration and other transaction costs
|
|
1.5
|
|
0.8
|
|
1.1
|
|
Other
adjustments
|
|
-
|
|
0.2
|
|
0.1
|
|
Adjusted
EBITDA
|
|
$ 47.9
|
|
$ 44.0
|
|
$
39.8
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$ 47.9
|
|
$ 44.0
|
|
$
39.8
|
|
LIFO expense
(income)
|
|
(12.0)
|
|
9.2
|
|
0.3
|
|
Adjusted EBITDA,
excluding LIFO expense (income)
|
|
$ 35.9
|
|
$ 53.2
|
|
$
40.1
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$ 868.0
|
|
$ 874.4
|
|
$
868.4
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
excluding LIFO expense (income), as a percentage of net
sales
|
|
4.1%
|
|
6.1%
|
|
4.6%
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$ 150.0
|
|
$ 147.7
|
|
$
142.2
|
|
LIFO expense
(income)
|
|
(12.0)
|
|
9.2
|
|
0.3
|
|
Gross profit,
excluding LIFO expense (income)
|
|
$ 138.0
|
|
$ 156.9
|
|
$
142.5
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin,
excluding LIFO expense (income)
|
|
15.9%
|
|
17.9%
|
|
16.4%
|
|
|
|
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
assets, 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
|
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|
Schedule
2
|
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
|
|
Reconciliation of Net
Income and Earnings per Share Excluding Impairment Charge on
Assets
|
|
|
|
(Dollars and Shares
in Millions, Except Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Ryerson Holding Corporation
|
|
$ (2.5)
|
|
|
|
|
|
|
|
|
|
|
|
Impairment charge on
assets
|
|
12.3
|
|
|
|
Benefit for income
taxes
|
|
(4.9)
|
|
|
|
Net income
attributable to Ryerson Holding Corporation, excluding impairment
charge on assets
|
|
|
|
|
|
$
4.9
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
excluding impairment charge on assets
|
|
$ 0.15
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
basic and diluted
|
|
32.0
|
|
|
|
|
|
Note:
|
Net Income and
Earnings per share excluding impairment charges on assets is
presented to provide a means of comparison to our prior periods
that do not include impairment charges on assets.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ryerson-announces-first-quarter-2015-results-300080005.html
SOURCE Ryerson Holding Corporation