CHICAGO, March 13, 2017 /PRNewswire/ -- Ryerson
Holding Corporation (NYSE: RYI), a leading distributor and
value-added processor of industrial metals, today reported results
for the fourth quarter and full-year ended December 31, 2016.
Eddie Lehner, Ryerson's President
and Chief Executive Officer said, "I want to send a resounding
thank you to our customers for giving us the opportunity to earn
their business and support their growth. I also want to thank the
Ryerson Team for a job well done in navigating through persistent
demand contraction and selling price deflation through the first
half of 2016. Our improved financial performance is the
result of our passion for the customer experience, as we continue
our company transformation as an intelligent network of service
centers whose common core is built around speed, scale, value-add,
culture, and analytics. During 2016 Ryerson increased market share,
expanded gross margins, reduced costs, reduced interest expense,
grew net income and EBITDA, improved working capital efficiency,
reduced debt, and strengthened our capital structure, a list worthy
of repeating on an annual basis."
2016 Results
Revenues were $2.9 billion in
2016, down 9.7 percent from 2015, as average selling price per ton
declined by 10.0 percent.
Gross margin increased to 20.0 percent in 2016, compared to 17.9
percent in 2015. Included in cost of materials sold was net LIFO
income of $6.6 million in 2016 and
$59.5 million in 2015. Gross margin,
excluding LIFO increased to 19.7 percent in 2016, compared with
16.0 percent in 2015. A reconciliation of gross margin, excluding
LIFO to gross margin is included below in this news release.
Warehousing, delivery, selling, general and administrative
expense declined by $14.4 million, or
3.2 percent in 2016, compared to the year-ago period, reflecting
continued expense management and operational efficiencies.
Net income attributable to Ryerson Holding Corporation improved
to $18.7 million, or $0.54 per diluted share, in 2016, compared with a
loss of $0.5 million, or $0.02 per diluted share, in 2015. Excluding
restructuring and other charges, impairment charges on assets, and
gains or losses on the retirement of debt, net income attributable
to Ryerson Holding Corporation increased to $28.0 million, or $0.81 per diluted share, in 2016 compared to
$16.1 million, or $0.50 per diluted share, in 2015. A
reconciliation of net income attributable to Ryerson Holding
Corporation and earnings per share, excluding restructuring and
other charges, impairment charges on assets and gains or losses on
retirement of debt is included below in this news release.
Adjusted EBITDA, excluding LIFO increased 63.3 percent to
$178.0 million in 2016, compared to
$109.0 million in 2015.
Reconciliations of Adjusted EBITDA, excluding LIFO and net income
attributable to Ryerson Holding Corporation are included below in
this news release.
Balance Sheet Deleveraging and Working Capital
Management
In 2016, Ryerson issued $650
million of Senior Secured Notes due 2022, issued common
stock with net proceeds of $71.5
million used to further pay down debt, and amended its
credit facility, thereby extending the maturity date to
November 2021. "We've significantly
improved our capital structure by reducing our debt by $279 million, or 22.4 percent, since 2014," said
Erich Schnaufer, Ryerson's Chief
Financial Officer.
In 2016, Ryerson's inventory balance stood at 76 days of supply
compared to 80 days in the year-ago period. "Our continued
industry-leading working capital management provides financial
flexibility and allows us to effectively adapt in volatile metal
pricing environments," continued Schnaufer.
Fourth Quarter 2016 Results
Revenues were $682.2 million for
the fourth quarter of 2016, up 2.0 percent from the year-ago
period. Tons shipped per day increased 1.4 percent with one fewer
shipping day in the fourth quarter of 2016, and the average selling
price per ton increased 2.2 percent from the fourth quarter of
2015.
Gross margin increased to 16.8 percent for the fourth quarter of
2016, compared to 15.2 percent for the year-ago period. Included in
cost of materials sold was net LIFO expense of $13.8 million for the fourth quarter of 2016 and
$10.8 million for the fourth quarter
of 2015. Gross margin, excluding LIFO increased to 18.8 percent for
the fourth quarter of 2016, compared with 16.8 percent for the
year-ago period. A reconciliation of gross margin to gross margin,
excluding LIFO is included below in this news
release.
Warehousing, delivery, selling, general and administrative
expense declined by $2.5 million, or
2.3 percent, for the fourth quarter of 2016 compared to the
year-ago period, reflecting continued progress on expense
management and operational efficiencies.
The net loss attributable to Ryerson Holding Corporation was
$8.6 million, or $0.23 per diluted share, for the fourth quarter
of 2016, compared to a net loss of $20.5
million, or $0.64 per diluted
share, in the fourth quarter of 2015. Excluding restructuring and
other charges, impairment charges on assets, and gains or losses on
the retirement of debt, the net loss attributable to Ryerson
Holding Corporation was $7.1 million,
or $0.19 per diluted share,
for the fourth quarter of 2016, compared to a loss of
$12.9 million, or $0.40 per diluted share, in the fourth quarter of
2015.
Adjusted EBITDA, excluding LIFO was $36.0
million in the fourth quarter of 2016, compared to
$14.2 million in the year-ago period.
Reconciliations of Adjusted EBITDA, excluding LIFO and net income
attributable to Ryerson Holding Corporation and earnings per share,
excluding restructuring and other charges, impairment charges on
assets, and gains or losses on retirement of debt to net income
attributable to Ryerson Holding Corporation are included below in
this news release.
2017 Acquisitions
In January 2017, Ryerson announced
the acquisition of The Laserflex Corporation, a metal fabricator
specializing in laser fabrication and welding services, with annual
revenue of approximately $25 million.
In addition, Ryerson announced a second acquisition in February 2017 of Guy Metals, Inc., a metal
service center processing stainless and nickel alloy products, with
annual revenue of approximately $35
million. "The acquisition of these competitively
differentiated companies that offer industry-leading fabrication,
polishing, and processing capabilities perfectly aligns with our
transformational strategy. These organizations are well matched to
our common core of speed, scale, value-add, culture, and analytics.
We are excited to add their products and capabilities across
our North American service center network," said
Lehner.
2017 Commentary
Ryerson intends to issue first quarter 2017 guidance in early
April after LIFO and LCM reserve outcomes can be more accurately
estimated given significant increases in industrial metals prices
over the past four months. Qualitatively, demand has improved
in oil & gas most notably while other end markets in aggregate
are showing modest if unspectacular improvement. The better
story thus far is supply side stabilization as policy lines have
drawn a playing field in which prices are better supported as we
move through the quarter.
|
Fourth Quarter
2016 Business Metrics
|
|
|
Fourth
Quarter
2016
|
Third
Quarter
2016
|
Fourth
Quarter
2015
|
Sequential
Quarter Change
|
Year-Over-Year
Change
|
|
Tons shipped (In
thousands)
|
440
|
480
|
441
|
-8.3%
|
-0.2%
|
|
|
Average selling
price/ton
|
$1,550
|
$1,531
|
$1,517
|
1.2%
|
2.2%
|
|
Average
cost/ton
|
1,290
|
1,228
|
1,287
|
5.0%
|
0.2%
|
|
Average cost/ton,
excluding LIFO
|
1,259
|
1,225
|
1,263
|
2.8%
|
-0.3%
|
|
Fourth Quarter
2016 Major Product Metrics
|
|
|
Tons Shipped (Tons
in thousands)
|
Average Selling
Price per
Ton Shipped
|
|
Fourth
Quarter
2016
|
Third
Quarter
2016
|
Fourth
Quarter
2015
|
Sequential
Quarter
Change
|
Year-
Over-
Year
Change
|
Sequential
Quarter
Change
|
Year-Over-
Year Change
|
|
Carbon
steel
|
332
|
361
|
343
|
-8.0%
|
-3.2%
|
1.4%
|
3.3%
|
|
Aluminum
|
43
|
48
|
42
|
-10.4%
|
2.4%
|
-1.4%
|
-6.7%
|
|
Stainless
steel
|
64
|
67
|
54
|
-4.5%
|
18.5%
|
0.6%
|
-4.0%
|
|
Net Sales (Dollars
in millions)
|
|
Fourth
Quarter
2016
|
Third
Quarter
2016
|
Fourth
Quarter
2015
|
Sequential
Quarter
Change
|
Year-Over-
Year
Change
|
|
Carbon
steel
|
$346
|
$371
|
$346
|
-6.7%
|
-
|
|
Aluminum
|
151
|
171
|
158
|
-11.7%
|
-4.4%
|
|
Stainless
steel
|
173
|
180
|
152
|
-3.9%
|
13.8%
|
|
Twelve Months
Ended December 31 Business Metrics
|
|
Twelve Months
Ended
December 31, 2016
|
Twelve Months
Ended
December 31, 2015
|
Year-Over-Year
Change
|
|
Tons shipped (In
thousands)
|
1,903
|
1,897
|
0.3%
|
|
|
Average selling
price/ton
|
$1,503
|
$1,670
|
-10.0%
|
|
Average
cost/ton
|
1,203
|
1,371
|
-12.3%
|
|
Average cost/ton,
excluding LIFO
|
1,206
|
1,402
|
-14.0%
|
|
|
|
|
|
|
Twelve Months
Ended December 31 Major Product Metrics
|
|
Tons Shipped (Tons
in thousands)
|
Average
Selling
Price per Ton
Shipped
|
|
Twelve Months
Ended
December 31, 2016
|
Twelve Months
Ended
December 31, 2015
|
Year-
Over-Year
Change
|
Year-Over-Year
Change
|
|
Carbon
steel
|
1,443
|
1,471
|
-1.9%
|
-9.9%
|
|
Aluminum
|
189
|
190
|
-0.5%
|
-10.3%
|
|
Stainless
steel
|
262
|
228
|
14.9%
|
-16.8%
|
|
|
|
|
|
|
|
Sales (Dollars in
millions)
|
|
Twelve Months
Ended
December 31, 2016
|
Twelve Months
Ended
December 31, 2015
|
Year-Over-Year
Change
|
|
Carbon
steel
|
$1,432
|
$1,621
|
-11.7%
|
|
Aluminum
|
674
|
755
|
-10.7%
|
|
Stainless
steel
|
700
|
732
|
-4.4%
|
Earnings Call Information
Ryerson will host a conference call to discuss its fourth
quarter 2016 results Tuesday, March
14, at 10 a.m. Eastern Time.
Participants may access the conference call by dialing 877-419-6590
(U.S., Canada) and 719-325-4845
(International) and using conference ID 8006725. The call will also
be broadcast live in the Investor Relations section of Ryerson's
internet site, ir.ryerson.com. A replay will be available at the
same website for 90 days.
About Ryerson
Ryerson is a leading distributor and value-added processor of
industrial metals with operations in the
United States, Canada,
Mexico, and China. Ryerson serves a variety of industries,
including customers making products or equipment for commercial
ground transportation, metal fabrication and machine shops,
industrial, consumer durable, HVAC, construction, food processing
and agriculture, as well as oil & gas. Founded in 1842, Ryerson
is headquartered in the United States and has
approximately 3,500 employees in around 100 locations. For more
information, visit Ryerson at www.ryerson.com.
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, 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, 2016, 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,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
|
|
$
682.2
|
|
$
668.8
|
|
$ 735.1
|
|
$ 2,859.7
|
|
$
3,167.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of materials
sold
|
|
567.6
|
|
567.2
|
|
589.7
|
|
2,289.1
|
|
2,599.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
114.6
|
|
101.6
|
|
145.4
|
|
570.6
|
|
567.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warehousing,
delivery, selling, general and administrative
|
|
104.9
|
|
107.4
|
|
109.1
|
|
436.4
|
|
450.8
|
|
Restructuring and
other charges
|
|
(1.5)
|
|
2.5
|
|
2.5
|
|
1.0
|
|
2.5
|
|
Gain on sale of
assets
|
|
-
|
|
(1.9)
|
|
-
|
|
-
|
|
(1.9)
|
|
Impairment charges on
assets
|
|
-
|
|
5.8
|
|
-
|
|
-
|
|
7.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
(LOSS)
|
|
11.2
|
|
(12.2)
|
|
33.8
|
|
133.2
|
|
108.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income and
(expense), net (1)
|
|
(4.0)
|
|
0.3
|
|
(0.2)
|
|
(17.2)
|
|
(10.4)
|
|
Interest and other
expense on debt (2)
|
|
(22.4)
|
|
(21.8)
|
|
(23.6)
|
|
(89.9)
|
|
(96.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
|
(15.2)
|
|
(33.7)
|
|
10.0
|
|
26.1
|
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
(6.8)
|
|
(12.4)
|
|
1.6
|
|
7.2
|
|
3.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
|
(8.4)
|
|
(21.3)
|
|
8.4
|
|
18.9
|
|
(1.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to noncontrolling interest
|
|
0.2
|
|
(0.8)
|
|
0.2
|
|
0.2
|
|
(1.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO RYERSON HOLDING CORPORATION
|
|
$
(8.6)
|
|
$
(20.5)
|
|
$
8.2
|
|
$
18.7
|
|
$
(0.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
(0.23)
|
|
$
(0.64)
|
|
$
0.23
|
|
$
0.55
|
|
$
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$
(0.23)
|
|
$
(0.64)
|
|
$
0.23
|
|
$
0.54
|
|
$
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding - basic
|
|
37.1
|
|
32.1
|
|
35.8
|
|
34.3
|
|
32.1
|
|
Shares outstanding -
diluted
|
|
37.1
|
|
32.1
|
|
36.0
|
|
34.4
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons shipped
(000)
|
|
440
|
|
441
|
|
480
|
|
1,903
|
|
1,897
|
|
Shipping
days
|
|
|
60
|
|
61
|
|
64
|
|
252
|
|
252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price/ton
|
|
$
1,550
|
|
$
1,517
|
|
$ 1,531
|
|
$
1,503
|
|
$
1,670
|
|
Gross
profit/ton
|
|
|
260
|
|
230
|
|
303
|
|
300
|
|
299
|
|
Operating profit
(loss)/ton
|
|
25
|
|
(28)
|
|
70
|
|
70
|
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
(income), net per ton
|
|
31
|
|
24
|
|
3
|
|
(3)
|
|
(31)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
(income), net
|
|
$
13.8
|
|
$
10.8
|
|
$
1.4
|
|
$
(6.6)
|
|
$
(59.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
10.7
|
|
9.8
|
|
10.2
|
|
42.5
|
|
43.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow provided by
(used in) operating activities
|
|
48.3
|
|
66.5
|
|
(25.5)
|
|
25.4
|
|
259.1
|
|
Capital
expenditures
|
|
(3.3)
|
|
-
|
|
(6.4)
|
|
(23.0)
|
|
(22.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The fourth quarter
2016 includes an other-than-temporary impairment charge of $1.9
million related to our investment in an available-for-sale security
and a loss of $1.5 million on the
repurchase of debt. The year ended December 31, 2016 includes a
loss of $8.7 million on the repurchase of debt and an other-than-temporary impairment charge of $4.7
million related to our investment in an available-for-sale
security. The year ended December 31, 2015 includes an other-than temporary impairment charge of
$12.3 million related to our investment in an available-for-sale
security.
|
|
(2)
|
The year ended
December 31, 2015 includes a $2.9 million write off of debt
issuance costs associated with our prior credit facility upon
entering into a new revolving credit
facility on July 24, 2015.
|
|
|
|
|
|
See Schedule 1 for
Condensed Consolidated Balance Sheets
|
|
See Schedule 2 for
EBITDA and Adjusted EBITDA reconciliation.
|
|
See Schedule 3 for
EPS reconciliation.
|
|
Schedule 1
|
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
|
Condensed
Consolidated Balance Sheets
|
|
(In millions, except
shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
80.7
|
|
$
63.2
|
|
|
Restricted
cash
|
|
1.0
|
|
1.2
|
|
|
Receivable, less provision for allowances, claims
and
doubtful accounts of
$4.6 in 2016 and $5.2 in 2015
|
|
326.0
|
|
305.7
|
|
|
Inventories
|
|
|
563.4
|
|
555.8
|
|
|
Prepaid expenses and
other current assets
|
|
26.7
|
|
32.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
997.8
|
|
958.7
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, at cost
|
|
668.7
|
|
654.5
|
|
Less: accumulated
depreciation
|
|
280.5
|
|
254.2
|
|
|
Property, plant and
equipment, net
|
|
388.2
|
|
400.3
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
24.4
|
|
31.8
|
|
Other intangible
assets
|
|
40.8
|
|
46.2
|
|
Goodwill
|
|
|
|
103.2
|
|
103.2
|
|
Deferred charges and
other assets
|
|
4.3
|
|
5.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
1,558.7
|
|
$
1,545.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
230.4
|
|
$
206.3
|
|
|
Salaries, wages and
commissions
|
|
36.8
|
|
26.3
|
|
|
Other accrued
liabilities
|
|
37.7
|
|
52.0
|
|
|
Short-term
debt
|
|
19.2
|
|
22.0
|
|
|
Current portion of
deferred employee benefits
|
|
8.3
|
|
9.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
332.4
|
|
315.7
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
944.3
|
|
1,001.5
|
|
Deferred employee
benefits
|
|
298.8
|
|
327.7
|
|
Taxes and other
credits
|
|
32.5
|
|
41.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,608.0
|
|
1,686.0
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
-
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Ryerson Holding
Corporation stockholders' equity (deficit):
|
|
|
|
|
|
|
Preferred stock, $0.01 par value; 7,000,000 shares
authorized and no shares issued at 2016 and 2015
|
|
-
|
|
-
|
|
|
Common stock, $0.01 par value; 100,000,000 shares
authorized; 37,345,117 and 32,312,200 shares issued at 2016
and 2015, respectively
|
|
0.4
|
|
0.3
|
|
|
Capital in excess of
par value
|
|
375.4
|
|
302.6
|
|
|
Accumulated
deficit
|
|
(112.2)
|
|
(130.9)
|
|
|
Treasury stock, at
cost - Common stock of 212,500 shares in 2016 and 2015
|
(6.6)
|
|
(6.6)
|
|
|
Accumulated other
comprehensive loss
|
|
(307.8)
|
|
(307.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Ryerson Holding
Corporation Stockholders' Equity (Deficit)
|
|
(50.8)
|
|
(141.6)
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
|
1.5
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity
(Deficit)
|
|
(49.3)
|
|
(140.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
1,558.7
|
|
$
1,545.2
|
|
Schedule 2
|
|
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
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
|
|
Year Ended
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Quarter
|
|
December
31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Ryerson Holding Corporation
|
|
$
(8.6)
|
|
$
(20.5)
|
|
$
8.2
|
|
$
18.7
|
|
$
(0.5)
|
|
Interest and other
expense on debt
|
|
22.4
|
|
21.8
|
|
23.6
|
|
89.9
|
|
96.3
|
|
Provision (benefit)
for income taxes
|
|
(6.8)
|
|
(12.4)
|
|
1.6
|
|
7.2
|
|
3.7
|
|
Depreciation and
amortization expense
|
|
10.7
|
|
9.8
|
|
10.2
|
|
42.5
|
|
43.7
|
|
EBITDA
|
|
|
|
|
$
17.7
|
|
$
(1.3)
|
|
$
43.6
|
|
$
158.3
|
|
$
143.2
|
|
Gain on sale of
assets
|
|
|
-
|
|
(1.9)
|
|
-
|
|
-
|
|
(1.9)
|
|
Gain on insurance
settlement
|
|
-
|
|
(0.5)
|
|
-
|
|
-
|
|
(0.5)
|
|
Gain on litigation
settlement
|
|
-
|
|
(3.9)
|
|
-
|
|
-
|
|
(3.9)
|
|
Reorganization
|
|
|
0.5
|
|
4.7
|
|
3.0
|
|
6.6
|
|
9.7
|
|
Foreign currency
transaction (gains) losses
|
|
0.7
|
|
(0.3)
|
|
-
|
|
3.9
|
|
(1.5)
|
|
(Gain) loss on
retirement of debt
|
|
1.5
|
|
-
|
|
0.3
|
|
8.7
|
|
(0.3)
|
|
Impairment charges on
assets
|
|
2.4
|
|
5.8
|
|
-
|
|
5.2
|
|
20.0
|
|
Purchase
consideration and other transaction costs
|
|
(0.5)
|
|
0.6
|
|
0.1
|
|
1.5
|
|
3.7
|
|
Other
adjustments
|
|
|
(0.1)
|
|
0.2
|
|
0.4
|
|
0.4
|
|
-
|
|
Adjusted
EBITDA
|
|
|
$
22.2
|
|
$
3.4
|
|
$
47.4
|
|
$
184.6
|
|
$
168.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
$
22.2
|
|
$
3.4
|
|
$
47.4
|
|
$
184.6
|
|
$
168.5
|
|
LIFO expense
(income), net
|
|
13.8
|
|
10.8
|
|
1.4
|
|
(6.6)
|
|
(59.5)
|
|
Adjusted EBITDA,
excluding LIFO expense (income), net
|
|
$
36.0
|
|
$
14.2
|
|
$
48.8
|
|
$
178.0
|
|
$
109.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
$
682.2
|
|
$
668.8
|
|
$ 735.1
|
|
$ 2,859.7
|
|
$
3,167.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
excluding LIFO expense (income), net, as a percentage of net
sales
|
5.3%
|
|
2.1%
|
|
6.6%
|
|
6.2%
|
|
3.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
$
114.6
|
|
$
101.6
|
|
$ 145.4
|
|
$
570.6
|
|
$
567.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
16.8%
|
|
15.2%
|
|
19.8%
|
|
20.0%
|
|
17.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
$
114.6
|
|
$
101.6
|
|
$ 145.4
|
|
$
570.6
|
|
$
567.7
|
|
LIFO expense
(income), net
|
|
13.8
|
|
10.8
|
|
1.4
|
|
(6.6)
|
|
(59.5)
|
|
Gross profit,
excluding LIFO expense (income), net
|
|
$
128.4
|
|
$
112.4
|
|
$ 146.8
|
|
$
564.0
|
|
$
508.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin,
excluding LIFO expense (income), net
|
|
18.8%
|
|
16.8%
|
|
20.0%
|
|
19.7%
|
|
16.0%
|
|
|
|
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 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. This release also presents gross
margin, excluding LIFO expense (income), net, which is calculated
as gross profit plus LIFO expense (or minus LIFO income), net,
divided by net sales. We have excluded LIFO expense (income), net
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), net, gross
margin, excluding LIFO expense (income), net, and Adjusted EBITDA,
excluding LIFO expense (income), net, 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) and Earnings (Loss) per Share Excluding Restructuring
and Other
|
|
Charges, Impairment
Charges on Assets and (Gain) Loss on Retirement of Debt
|
|
(Dollars and Shares
in Millions, Except Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
|
|
Year Ended
|
|
|
Fourth
Quarter
|
|
Quarter
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Ryerson Holding Corporation
|
|
$
(8.6)
|
|
$
(20.5)
|
|
$
8.2
|
|
$
18.7
|
|
$
(0.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
other charges
|
|
(1.5)
|
|
2.5
|
|
2.5
|
|
1.0
|
|
2.5
|
|
Impairment charges on
assets
|
|
2.4
|
|
5.8
|
|
-
|
|
5.2
|
|
20.0
|
|
(Gain) loss on
retirement of debt
|
|
1.5
|
|
-
|
|
0.3
|
|
8.7
|
|
(0.3)
|
|
Benefit for income
taxes
|
|
(0.9)
|
|
(0.7)
|
|
(1.0)
|
|
(5.6)
|
|
(5.6)
|
|
Net income (loss)
attributable to Ryerson Holding Corporation, excluding
restructuring and other charges, impairment charges on assets
and(gain) loss on retirement of debt
|
|
$
(7.1)
|
|
$
(12.9)
|
|
$
10.0
|
|
$
28.0
|
|
$
16.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share, excluding restructuring and other charges, impairment
charges on assets and (gain) loss on retirement of debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
(0.19)
|
|
$
(0.40)
|
|
$
0.28
|
|
$
0.82
|
|
$
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$
(0.19)
|
|
$
(0.40)
|
|
$
0.28
|
|
$
0.81
|
|
$
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
basic
|
|
37.1
|
|
32.1
|
|
35.8
|
|
34.3
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
diluted
|
|
37.1
|
|
32.1
|
|
36.0
|
|
34.4
|
|
32.1
|
|
|
|
Note:
|
Net income (loss) and
Earnings (loss) per share excluding restructuring and other
charges, impairment charges on assets and (gain) loss on retirement
of debt is presented to provide a means of comparison with periods
that do not include restructuring and other charges, impairment
charges on assets and (gain) loss on retirement of debt.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ryerson-reports-fourth-quarter-and-full-year-2016-results-300422851.html
SOURCE Ryerson Holding Corporation