CHICAGO, Nov. 2, 2016 /PRNewswire/ -- Ryerson Holding
Corporation (NYSE: RYI), a leading distributor and processor of
metals, today reported results for the third quarter of 2016.
"The Ryerson Team performed well in a challenging environment,"
said Ryerson's President and Chief Executive Officer Eddie Lehner. "While industrial metals demand
continued to contract year over year and decline sequentially more
than indicative historical trends, and spot carbon sheet index
pricing fell almost 20% in the quarter, Ryerson was able to
increase gross margin, net income, and earnings per share in the
third quarter compared to prior year. I want to thank our customers
for their continued support as we continue building a Ryerson known
for exceptional customer experiences. Despite an industrial
metals climate characterized by deflation and demand contraction,
under-investment in many of the world's largest economies, most
notably the U.S., is receiving the attention if not action it
deserves as the deleterious impacts of break-fix and haphazard
investment result in declining productivity and stagnation.
Over the longer term, the execution of our strategy centered upon
the elements of speed, scale, value-add, culture and analytics will
accrete value for all Ryerson stakeholders as investments in
productivity-enhancing machinery & equipment and infrastructure
are expected to return to required norms."
Third Quarter 2016 Results
Revenues were $735.1 million for
the third quarter of 2016, essentially unchanged from the second
quarter, as a 5.0 percent decline in tons shipped was partially
offset by a 4.5 percent increase in the average selling price per
ton.
Gross margin increased to 19.8 percent for the third quarter of
2016, compared to 19.0 percent for the year-ago period, and
decreased from 22.0 percent in the second quarter of 2016. Included
in cost of materials sold was net LIFO expense of $1.4 million for the third quarter of 2016,
compared to net LIFO income of $21.3
million for the third quarter of 2015 and $7.0 million for the second quarter of 2016.
Gross margin, excluding LIFO increased to 20.0 percent for the
third quarter of 2016, compared with 16.3 percent in the year-ago
period, and decreased from 21.1 percent in the second quarter of
2016. A reconciliation of gross margin, excluding LIFO to gross
margin is included below in this news release.
Warehousing, delivery, selling, general and administrative
expense in the third quarter of 2016 declined 3.3 percent year over
year and 3.5 percent sequentially reflecting the results of our
continued expense management and realized operational
efficiencies.
Net income attributable to Ryerson Holding Corporation increased
to $8.2 million, or $0.23 per diluted share, for the third quarter of
2016, compared to $6.7 million, or
$0.21 per diluted share, in the third
quarter of 2015 and $5.6 million, or
$0.17 per diluted share in the second
quarter of 2016. 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 $10.0 million, or
$0.28 per diluted share, for the
third quarter of 2016 compared to $6.5
million, or $0.20 per diluted
share, for the third quarter of 2015 and decreased from
$16.9 million, or $0.52 per diluted share, for the second quarter
of 2016. 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.
Balance Sheet Deleveraging and Working Capital
Management
In July 2016, Ryerson issued
5,000,000 shares of common stock at a public offering price of
$15.25 per share, with net proceeds
of $71.5 million being used to reduce
our debt balance. On October 15,
2016, Ryerson redeemed all remaining 11.25% Senior Notes due
2018, thereby extending our next significant debt maturities to
2020.
In the third quarter of 2016, Ryerson's inventory stood at 78
days of supply, compared to 77 days in the year ago period.
"Given the weaker demand experienced in the third quarter and
normal seasonal volume declines expected in the fourth quarter,
Ryerson expects to align inventories to demand to generate
counter-cyclical cash flows in the fourth quarter while providing
working capital optionality moving into the first quarter of 2017,"
stated Erich Schnaufer, Ryerson's
Chief Financial Officer.
First Nine Months 2016 Results
Revenues for the first nine months of 2016 were $2.2 billion, down 12.8 percent from the first
nine months of 2015, as a 0.5 percent increase in tons shipped was
more than offset by a 13.3 percent decline in the average selling
price per ton. Year to date, Ryerson shipment gains outpaced the
industry by a noticeable margin, as measured by the Metals Service
Center Institute (MSCI), which declined 6.9 percent through the
first nine months of 2016.
Net income attributable to Ryerson Holding Corporation increased
to $27.3 million, or $0.82 per diluted share, in the first nine months
of 2016 compared to $20.0 million, or
$0.62 per diluted share, for the same
period of 2015. Excluding restructuring and other charges,
impairment charges on assets, and gains or losses on retirement of
debt, net income attributable to Ryerson Holding Corporation
increased to $35.1 million, or
$1.05 per diluted share, in the first
nine months of 2016 compared to $28.9
million, or $0.90 for the same
period of 2015.
Adjusted EBITDA, excluding LIFO increased 49.8 percent to
$142.0 million in the first nine
months of 2016, compared to $94.8
million in the first nine months of 2015. 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.
Third Quarter 2016 Business Metrics
|
Third
Quarter
2016
|
Second
Quarter
2016
|
Third
Quarter
2015
|
Sequential
Quarter
Change
|
Year-Over-Year
Change
|
Tons shipped (In
thousands)
|
480
|
505
|
492
|
-5.0%
|
-2.4%
|
|
Average selling
price/ton
|
$1,531
|
$1,465
|
$1,606
|
4.5%
|
-4.7%
|
Average
cost/ton
|
1,228
|
1,142
|
1,301
|
7.5%
|
-5.6%
|
Average cost/ton,
excluding LIFO
|
1,225
|
1,156
|
1,344
|
6.0%
|
-8.9%
|
Third Quarter 2016 Major Product Metrics
|
Tons Shipped (Tons
in thousands)
|
Average Selling
Price per
Ton
Shipped
|
|
Third
Quarter
2016
|
Second
Quarter
2016
|
Third
Quarter
2015
|
Sequential
Quarter
Change
|
Year-
Over-
Year
Change
|
Sequential
Quarter
Change
|
Year-Over-
Year
Change
|
Carbon
steel
|
361
|
385
|
384
|
-6.2%
|
-6.0%
|
6.9%
|
-3.3%
|
Aluminum
|
48
|
50
|
49
|
-4.0%
|
-2.0%
|
0.1%
|
-9.1%
|
Stainless
steel
|
67
|
68
|
57
|
-1.5%
|
17.5%
|
2.6%
|
-13.0%
|
|
Net Sales (Dollars
in millions)
|
|
Third
Quarter
2016
|
Second
Quarter
2016
|
Third
Quarter
2015
|
Sequential
Quarter
Change
|
Year-Over-
Year
Change
|
Carbon
steel
|
$371
|
$370
|
$408
|
0.3%
|
-9.1%
|
Aluminum
|
171
|
178
|
192
|
-3.9%
|
-10.9%
|
Stainless
steel
|
180
|
178
|
176
|
1.1%
|
2.3%
|
Nine Months Ended
September 30 Business Metrics
|
|
|
Nine Months
Ended
September 30,
2016
|
Nine Months
Ended
September 30,
2015
|
Year-Over-Year
Change
|
Tons shipped (In
thousands)
|
1,463
|
1,456
|
0.5%
|
|
Average selling
price/ton
|
$1,488
|
$1,716
|
-13.3%
|
Average
cost/ton
|
1,176
|
1,396
|
-15.8%
|
Average cost/ton,
excluding LIFO
|
1,190
|
1,444
|
-17.6%
|
|
|
|
|
|
Nine Months Ended
September 30 Major Product Metrics
|
|
|
Tons Shipped (Tons
in thousands)
|
Average
Selling
Price per
Ton
Shipped
|
|
Nine Months
Ended
September 30,
2016
|
Nine Months
Ended
September 30,
2015
|
Year-
Over-Year
Change
|
Year-Over-Year
Change
|
Carbon
steel
|
1,112
|
1,127
|
-1.3%
|
-12.2%
|
Aluminum
|
145
|
148
|
-2.0%
|
-10.9%
|
Stainless
steel
|
198
|
175
|
13.1%
|
-19.8%
|
|
|
|
|
|
|
|
Sales (Dollars in
millions)
|
|
Nine Months
Ended
September 30,
2016
|
Nine Months
Ended
September 30,
2015
|
Year-Over-Year
Change
|
Carbon
steel
|
$1,089
|
$1,275
|
-14.6%
|
Aluminum
|
521
|
597
|
-12.7%
|
Stainless
steel
|
526
|
580
|
-9.3%
|
Earnings Call Information
The company will host a conference call to discuss its third
quarter 2016 results on Thursday, November
3, at 10 a.m. Eastern Daylight
Time. Participants may access the conference call by dialing
800-862-9098 (U.S., Canada) and
785-424-1051 (International) and using conference ID 6688203. 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, Canada, Mexico and China. The company serves a variety of
industries, including customers making products or equipment for
the 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 3,400 employees in around 100 locations. For more
information, visit Ryerson at www.ryerson.com.
Certain statements made in this presentation 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.
|
|
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|
|
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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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
First Nine Months
Ended
|
|
|
|
|
|
|
|
Third
|
|
Second
|
|
Third
|
|
September
30,
|
|
|
|
|
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
|
$ 735.1
|
|
$ 739.8
|
|
$ 790.0
|
|
$ 2,177.5
|
|
$ 2,498.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of materials
sold
|
|
589.7
|
|
576.8
|
|
639.7
|
|
1,721.5
|
|
2,032.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
145.4
|
|
163.0
|
|
150.3
|
|
456.0
|
|
466.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warehousing,
delivery, selling, general and administrative
|
|
109.1
|
|
113.1
|
|
112.8
|
|
331.5
|
|
343.4
|
|
|
|
Restructuring and
other charges
|
|
2.5
|
|
-
|
|
-
|
|
2.5
|
|
-
|
|
|
|
Impairment charges on
assets
|
|
-
|
|
-
|
|
0.5
|
|
-
|
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
33.8
|
|
49.9
|
|
37.0
|
|
122.0
|
|
120.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income and
(expense), net (1)
|
|
(0.2)
|
|
(18.3)
|
|
1.2
|
|
(13.2)
|
|
(10.7)
|
|
|
|
Interest and other
expense on debt
|
|
(23.6)
|
|
(21.9)
|
|
(25.4)
|
|
(67.5)
|
|
(74.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
10.0
|
|
9.7
|
|
12.8
|
|
41.3
|
|
35.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
1.6
|
|
4.3
|
|
6.1
|
|
14.0
|
|
16.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
8.4
|
|
5.4
|
|
6.7
|
|
27.3
|
|
19.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to noncontrolling interest
|
|
0.2
|
|
(0.2)
|
|
-
|
|
-
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO RYERSON HOLDING CORPORATION
|
|
$
8.2
|
|
$
5.6
|
|
$
6.7
|
|
$
27.3
|
|
$
20.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
|
$ 0.23
|
|
$ 0.17
|
|
$ 0.21
|
|
$ 0.82
|
|
$
0.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
basic
|
|
35.8
|
|
32.1
|
|
32.1
|
|
33.3
|
|
32.0
|
|
|
Shares outstanding -
diluted
|
|
36.0
|
|
32.2
|
|
32.1
|
|
33.4
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Supplemental Data
:
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons shipped
(000)
|
|
480
|
|
505
|
|
492
|
|
1,463
|
|
1,456
|
|
|
|
Shipping
days
|
|
64
|
|
64
|
|
64
|
|
192
|
|
191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price/ton
|
|
$ 1,531
|
|
$ 1,465
|
|
$ 1,606
|
|
$
1,488
|
|
$
1,716
|
|
|
|
Gross
profit/ton
|
|
303
|
|
323
|
|
305
|
|
312
|
|
320
|
|
|
|
Operating
profit/ton
|
|
70
|
|
99
|
|
75
|
|
83
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
(income), net per ton
|
|
3
|
|
(14)
|
|
(43)
|
|
(14)
|
|
(48)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
(income), net
|
|
$
1.4
|
|
$
(7.0)
|
|
$ (21.3)
|
|
$
(20.4)
|
|
$
(70.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
10.2
|
|
10.7
|
|
11.7
|
|
31.8
|
|
33.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities
|
|
(25.5)
|
|
(44.4)
|
|
29.7
|
|
(22.9)
|
|
192.6
|
|
|
|
Capital
expenditures
|
|
(6.4)
|
|
(7.9)
|
|
(9.6)
|
|
(19.7)
|
|
(22.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The second quarter
2016 includes a loss of $15.1 million on the repurchase of debt and
an other-than-temporary impairment charge of $2.8 million related
to our
|
|
investment in an
available-for-sale security. The first nine months 2016 include a
loss of $7.2 million on the repurchase of debt and an
other-than-temporary
|
|
impairment charge of
$2.8 million related to our investment in an available-for-sale
security. The first nine months of 2015 include an
other-than-temporary
|
|
impairment charge of
$12.3 million related to our investment in an available-for-sale
security.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
See Schedule 1 for
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Schedule 2 for
EBITDA and Adjusted EBITDA reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Schedule 3 for
EPS reconciliation.
|
|
|
|
|
|
|
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|
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|
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|
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|
|
Schedule
1
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
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|
|
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|
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|
Condensed
Consolidated Balance Sheets
|
(In millions, except
shares)
|
|
|
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|
|
|
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|
September
30,
|
December
31,
|
|
|
|
|
|
|
2016
|
2015
|
Assets
|
|
|
|
(unaudited)
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
73.2
|
$
63.2
|
|
|
Restricted
cash
|
1.0
|
1.2
|
|
|
Receivable, less
provision for allowances, claims and
doubtful accounts of
$5.2 in 2016 and 2015
|
360.1
|
305.7
|
|
|
Inventories
|
625.2
|
555.8
|
|
|
Prepaid expenses and
other current assets
|
27.4
|
32.8
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
1,086.9
|
958.7
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, at cost
|
667.3
|
654.5
|
|
Less: accumulated
depreciation
|
274.0
|
254.2
|
|
|
Property, plant and
equipment, net
|
393.3
|
400.3
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
12.5
|
31.8
|
|
Other intangible
assets
|
42.1
|
46.2
|
|
Goodwill
|
|
|
103.2
|
103.2
|
|
Deferred charges and
other assets
|
5.3
|
5.0
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
1,643.3
|
$
1,545.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
265.0
|
$
206.3
|
|
|
Salaries, wages and
commissions
|
35.5
|
26.3
|
|
|
Other accrued
liabilities
|
60.8
|
52.0
|
|
|
Short-term
debt
|
20.0
|
22.0
|
|
|
Current portion of
deferred employee benefits
|
9.2
|
9.1
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
390.5
|
315.7
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
957.9
|
1,001.5
|
|
Deferred employee
benefits
|
291.4
|
327.7
|
|
Taxes and other
credits
|
36.7
|
41.1
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
1,676.5
|
1,686.0
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
Redeemable
noncontrolling interest
|
(0.2)
|
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; 37,344,519
and 32,312,200 shares
issued at 2016 and 2015, respectively
|
0.4
|
0.3
|
|
|
|
Capital in excess of
par value
|
375.1
|
302.6
|
|
|
Accumulated
deficit
|
(103.6)
|
(130.9)
|
|
|
Treasury stock, at
cost - Common stock of 212,500 shares in 2016 and 2015
|
(6.6)
|
(6.6)
|
|
|
|
Accumulated other
comprehensive loss
|
(299.6)
|
(307.0)
|
|
|
|
|
|
|
|
|
|
|
|
Total Ryerson Holding
Corporation Stockholders' Equity (Deficit)
(34.3)
|
|
(141.6)
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
1.3
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity
(Deficit)
|
(33.0)
|
(140.9)
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$
1,643.3
|
$
1,545.2
|
|
|
|
|
|
|
|
|
|
|
|
Schedule
2
|
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
Reconciliations of
Net Income Attributable to Ryerson Holding Corporation to EBITDA
and Gross profit to Gross profit excluding LIFO
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
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|
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|
|
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|
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|
2016
|
|
2015
|
|
First Nine
Months Ended
|
|
|
|
|
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|
Third
|
|
Second
|
|
Third
|
|
September
30,
|
|
|
|
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Ryerson Holding Corporation
|
|
$
8.2
|
|
$
5.6
|
|
$
6.7
|
|
$
27.3
|
|
$
20.0
|
Interest and other
expense on debt
|
|
23.6
|
|
21.9
|
|
25.4
|
|
67.5
|
|
74.5
|
Provision for income
taxes
|
|
1.6
|
|
4.3
|
|
6.1
|
|
14.0
|
|
16.1
|
Depreciation and
amortization expense
|
|
10.2
|
|
10.7
|
|
11.7
|
|
31.8
|
|
33.9
|
EBITDA
|
|
|
$
43.6
|
|
$
42.5
|
|
$
49.9
|
|
$
140.6
|
|
$
144.5
|
Reorganization
|
|
|
3.0
|
|
1.8
|
|
1.3
|
|
6.1
|
|
5.0
|
Foreign currency
transaction (gains) losses
|
|
-
|
|
0.3
|
|
(0.1)
|
|
3.2
|
|
(1.2)
|
(Gain) loss on
retirement of debt
|
|
0.3
|
|
15.1
|
|
(1.0)
|
|
7.2
|
|
(0.3)
|
Impairment charges on
assets
|
|
-
|
|
2.8
|
|
0.5
|
|
2.8
|
|
14.2
|
Purchase
consideration and other transaction costs
|
|
0.1
|
|
0.4
|
|
0.5
|
|
2.0
|
|
3.1
|
Other
adjustments
|
|
0.4
|
|
0.1
|
|
(0.1)
|
|
0.5
|
|
(0.2)
|
Adjusted
EBITDA
|
|
|
$
47.4
|
|
$
63.0
|
|
$
51.0
|
|
$
162.4
|
|
$
165.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
$
47.4
|
|
$
63.0
|
|
$
51.0
|
|
$
162.4
|
|
$
165.1
|
LIFO expense
(income), net
|
|
1.4
|
|
(7.0)
|
|
(21.3)
|
|
(20.4)
|
|
(70.3)
|
Adjusted EBITDA,
excluding LIFO expense (income), net
|
|
$
48.8
|
|
$
56.0
|
|
$
29.7
|
|
$
142.0
|
|
$
94.8
|
|
|
|
|
|
|
|
|
|
|
|
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|
Net sales
|
|
|
$ 735.1
|
|
$ 739.8
|
|
$ 790.0
|
|
$
2,177.5
|
|
$
2,498.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
excluding LIFO expense (income), net, as a percentage of net
sales
|
6.6%
|
|
7.6%
|
|
3.8%
|
|
6.5%
|
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
$ 145.4
|
|
$ 163.0
|
|
$ 150.3
|
|
$
456.0
|
|
$
466.1
|
|
|
|
|
|
|
|
|
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|
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|
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|
Gross
margin
|
|
|
19.8%
|
|
22.0%
|
|
19.0%
|
|
20.9%
|
|
18.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
$ 145.4
|
|
$ 163.0
|
|
$ 150.3
|
|
$
456.0
|
|
$
466.1
|
LIFO expense
(income), net
|
|
1.4
|
|
(7.0)
|
|
(21.3)
|
|
(20.4)
|
|
(70.3)
|
Gross profit,
excluding LIFO expense (income), net
|
|
$ 146.8
|
|
$ 156.0
|
|
$ 129.0
|
|
$
435.6
|
|
$
395.8
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Gross margin,
excluding LIFO expense (income), net
|
|
20.0%
|
|
21.1%
|
|
16.3%
|
|
20.0%
|
|
15.8%
|
|
|
|
|
|
|
|
|
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|
|
|
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|
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.
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Schedule
3
|
|
|
|
RYERSON HOLDING
CORPORATION AND SUBSIDIARY COMPANIES
|
|
|
|
Reconciliation of Net
Income and Earnings 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)
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
First Nine Months
Ended
|
|
|
|
|
|
|
Third
|
|
Second
|
|
Third
|
|
September
30,
|
|
|
|
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Ryerson Holding Corporation
|
$
8.2
|
|
$ 5.6
|
|
$
6.7
|
|
$
27.3
|
|
$ 20.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
other charges
|
2.5
|
|
-
|
|
-
|
|
2.5
|
|
-
|
|
|
Impairment charges on
assets
|
-
|
|
2.8
|
|
0.5
|
|
2.8
|
|
14.2
|
|
|
(Gain) loss on
retirement of debt
|
0.3
|
|
15.1
|
|
(1.0)
|
|
7.2
|
|
(0.3)
|
|
|
Provision (benefit)
for income taxes
|
(1.0)
|
|
(6.6)
|
|
0.3
|
|
(4.7)
|
|
(5.0)
|
|
|
Net income
attributable to Ryerson Holding Corporation, excluding
restructuring and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
10.0
|
|
$
16.9
|
|
$
6.5
|
|
$
35.1
|
|
$
28.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
excluding restructuring and other charges, impairment
charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
0.28
|
|
$
0.53
|
|
$
0.20
|
|
$
1.05
|
|
$
0.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$
0.28
|
|
$
0.52
|
|
$
0.20
|
|
$
1.05
|
|
$
0.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
basic
|
35.8
|
|
32.1
|
|
32.1
|
|
33.3
|
|
32.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
diluted
|
36.0
|
|
32.2
|
|
32.1
|
|
33.4
|
|
32.1
|
|
|
|
|
|
|
|
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Note:
|
Net income and
Earnings 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 gains or losses on retirement of debt.
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ryerson-reports-third-quarter-2016-results-300356295.html
SOURCE Ryerson Holding Corporation