CHICAGO, Jan. 12, 2017 /PRNewswire/ -- Ryerson
Holding Corporation (NYSE: RYI), a leading distributor and
processor of metals, today provided guidance for its fourth quarter
ending December 31, 2016. The
Company anticipates seasonally lower revenue for the fourth quarter
of 2016 compared to the third quarter of 2016 due to fewer shipping
days. The Company expects fourth quarter 2016 net loss
attributable to Ryerson Holding Corporation in the range of
$14 million to $11 million, which
includes LIFO expense, net in the range of $14 million to $17 million. Adjusted EBITDA,
excluding LIFO is expected to be in the range of $33 million to $36 million for the fourth quarter
of 2016. Ryerson reported fourth quarter 2015 net loss
attributable to Ryerson Holding Corporation of $21 million, which included LIFO expense, net of
$11 million. Adjusted EBITDA,
excluding LIFO was $14 million in the
fourth quarter of 2015. A reconciliation of Adjusted EBITDA,
excluding LIFO to net loss attributable to Ryerson Holding
Corporation is included below in this news release.
Ryerson's end market metrics as measured in shipments per day
showed sequential quarterly growth in construction equipment and
oil & gas equipment, while food processing and agricultural
equipment, HVAC, and commercial ground transportation sectors
experienced sequential quarterly demand declines.
Product pricing and material cost dynamics were driven by
hot-rolled carbon sheet price volatility that saw CRU price
deflation in the period from July through October of 20% followed
by CRU price inflation in November and December of 22%, thus
creating some expected margin compression in the quarter.
Current supply side conditions are favorable when viewed against
the year ago period. Current momentum indicators around
pricing are encouraging while demand trends are unfolding and too
early in the year to call.
Ryerson Holding Corporation's Fourth Quarter 2016 Conference
Call Details
Ryerson also announced that it will host a conference call to
discuss fourth quarter 2016 results on Tuesday, March 14 at 10
a.m. Eastern Time. The live online broadcast will be
available on the Company's investor relations website,
ir.ryerson.com. Ryerson will report earnings after the market
closes on Monday, March 13.
DATE:
|
Tuesday, March 14,
2017
|
TIME:
|
10:00 a.m. ET / 9:00
a.m. CT
|
DIAL-IN:
|
877-419-6590 (U.S.,
Canada) / 719-325-4845 (International)
|
CONFERENCE ID:
|
8006725
|
An online replay of the call will be posted on the investor
relations website, ir.ryerson.com, and remain available for 90
days.
Ryerson is a leading processor and distributor of metals, with
operations in the United States,
Canada, Mexico and China. Founded in 1842, Ryerson employs
around 3,400 employees in approximately 100 locations. Visit
Ryerson at www.ryerson.com.
Safe Harbor Provision
Certain statements made in this press release and other written
or oral statements made by or on behalf of the Company constitute
"forward-looking statements" within the meaning of the federal
securities laws, including statements regarding our future
performance, as well as management's expectations, beliefs,
intentions, plans, estimates or projections relating to the
future. Such statements can be identified by the use of
forward-looking terminology such as "believes," "expects," "may,"
"estimates," "will," "should," "plans" or "anticipates" or the
negative thereof or other variations thereon or comparable
terminology, or by discussions of strategy. The Company cautions
that any such forward-looking statements are not guarantees of
future performance and may involve significant risks and
uncertainties, and that actual results may vary materially from
those in the forward-looking statements as a result of various
factors. Among the factors that significantly impact the metals
distribution industry and our business are: the cyclicality of our
business; the highly competitive, volatile, and fragmented market
in which we operate; fluctuating metal prices; our substantial
indebtedness and the covenants in instruments governing such
indebtedness; the integration of acquired operations; regulatory
and other operational risks associated with our operations located
inside and outside of the United
States; work stoppages; obligations under certain employee
retirement benefit plans; the ownership of a majority of our equity
securities by a single investor group; currency fluctuations; and
consolidation in the metals producer industry. Forward-looking
statements should, therefore, be considered in light of various
factors, including those set forth above and those set forth under
"Risk Factors" in our annual report on Form 10-K for the year
ended December 31, 2015 and in our other filings with
the Securities and Exchange Commission. Moreover, we caution
against placing undue reliance on these statements, which speak
only as of the date they were made. The Company does not
undertake any obligation to publicly update or revise any
forward-looking statements to reflect future events or
circumstances, new information or otherwise.
Set forth below is a reconciliation of our anticipated net loss
attributable to Ryerson Holding Corporation to our Adjusted EBITDA
and our Adjusted EBITDA, excluding LIFO expense, net.
|
|
Range of
Estimates
|
|
|
(unaudited)
|
|
|
(in
millions)
|
|
|
Low
|
High
|
Net loss attributable
to Ryerson Holding Corporation
|
|
$ (14)
|
$ (11)
|
Interest and other
expense on debt
|
|
22
|
22
|
Benefit from income
taxes
|
|
(9)
|
(6)
|
Depreciation and
amortization expense
|
|
10
|
10
|
EBITDA
|
|
$
9
|
$ 15
|
Adjustments
|
|
7
|
7
|
Adjusted
EBITDA
|
|
$ 16
|
$ 22
|
LIFO expense,
net
|
|
17
|
14
|
Adjusted EBITDA,
excluding LIFO expense, net
|
|
$ 33
|
$ 36
|
|
|
|
|
EBITDA represents net income before interest and other expense
on debt, provision for income taxes, depreciation and amortization.
Adjusted EBITDA gives further effect to, among other things,
impairment charges on assets, reorganization expenses and foreign
currency transaction gains and losses. We believe that the
presentation of EBITDA, Adjusted EBITDA and Adjusted EBITDA,
excluding LIFO expense, net, 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, net, 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, net, 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, net, targets. We also use EBITDA,
Adjusted EBITDA and Adjusted EBITDA, excluding LIFO expense, net,
to benchmark our operating performance to that of our competitors.
EBITDA, Adjusted EBITDA and Adjusted EBITDA, excluding LIFO
expense, net 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, net, is necessarily an indication
of whether cash flow will be sufficient to fund our cash
requirements. Our definitions of EBITDA, Adjusted EBITDA, Adjusted
EBITDA, excluding LIFO expense, net, may differ from that of other
companies.
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SOURCE Ryerson Holding Corporation