CHICAGO, Sept. 30, 2016 /PRNewswire/ -- Ryerson Holding
Corporation (NYSE: RYI), a leading distributor and processor of
metals, today provided guidance for its third quarter ending
September 30, 2016. The Company
expects third quarter 2016 net income attributable to Ryerson
Holding Corporation in the range of $8
million to $12 million and Adjusted EBITDA, excluding LIFO
in the range of $46 million to $50
million. Ryerson reported third quarter 2015 net
income attributable to Ryerson Holding Corporation of $7 million and Adjusted EBITDA, excluding LIFO of
$30 million. A reconciliation
of Adjusted EBITDA, excluding LIFO to net income attributable to
Ryerson Holding Corporation is included below in this news
release.
The Company anticipates revenue for the third quarter of 2016 to
be flat with the second quarter of 2016, with higher average
selling prices offset by lower sequential shipments. Spot hot
rolled coil steel prices are down 25% from their peak levels in the
second quarter, and spot carbon plate prices are nearing parity
with hot rolled coil prices. Steel mill lead times have
shortened across all carbon steel categories, consistent with
slowing demand evidenced so far during the third quarter.
With respect to specific end markets, food processing equipment and
consumer durables are demonstrating sequential quarterly demand
strength while oil & gas, commercial ground transportation,
agricultural equipment, metal fabrication and machine shops are
showing sequential quarterly demand weakness. Construction
equipment sequential quarterly demand is neutral.
Ryerson Holding Corporation's Third Quarter 2016 Conference
Call Details
Ryerson also announced that it will host a conference call to
discuss third quarter 2016 results on Thursday, November 3 at 10
a.m. Eastern Daylight 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 Wednesday, November 2.
DATE:
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Thursday, November 3,
2016
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TIME:
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10:00 a.m. EDT / 9:00
a.m. CDT
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DIAL-IN:
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800-862-9098 (U.S.,
Canada) / 785-424-1051 (International)
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CONFERENCE
ID:
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6688203
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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 filing 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 income attributable to
Ryerson Holding Corporation to our Adjusted EBITDA and our Adjusted
EBITDA, excluding LIFO expense (income), net.
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Range of
Estimates
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(unaudited)
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(in
millions)
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Low
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High
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Net income
attributable to Ryerson Holding Corporation
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$8
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$12
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Interest and other
expense on debt
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23
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23
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Provision for income
taxes
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4
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8
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Depreciation and
amortization expense
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10
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10
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EBITDA
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$45
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$53
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Reorganization
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3
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3
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Adjusted
EBITDA
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$48
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$56
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LIFO expense
(income), net
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(2)
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(6)
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Adjusted EBITDA,
excluding LIFO expense (income), net
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$46
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$50
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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
(income), 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 (income), 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 (income), 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 (income), net, targets. We also use
EBITDA, Adjusted EBITDA and Adjusted EBITDA, excluding LIFO expense
(income), net, to benchmark our operating performance to that of
our competitors. EBITDA, Adjusted EBITDA and Adjusted EBITDA,
excluding LIFO expense (income), 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 (income), net, is
necessarily an indication of whether cash flow will be sufficient
to fund our cash requirements. Our definitions of EBITDA,
Adjusted EBITDA, and Adjusted EBITDA, excluding LIFO expense
(income), net may differ from that of other companies.
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SOURCE Ryerson Holding Corporation