CHICAGO, March 5, 2018 /PRNewswire/ -- Ryerson
Holding Corporation (NYSE: RYI), a leading value-added
processor and distributor of industrial metals, today reported
results for the fourth quarter and full-year ended December 31, 2017.
Eddie Lehner, Ryerson's President
and Chief Executive Officer said, "First, thank you to our
customers for your business which we never take for granted, and
thank you to all of my Ryerson teammates for continually striving
to create a better Ryerson. Ryerson made progress in 2017 on a
number of important fronts while further positioning the Company
for greater performance in the years to come. In 2017, we grew
market share while generating favorable expense leverage and
improving working capital efficiency. We continued to add more
processing capabilities to our service center network, welcoming
The Laserflex Corporation and Guy Metals, Inc. to the company while
making growth investments in value added processing capabilities
and intelligent systems design and implementation. Ryerson is
well positioned to capitalize on the stronger market conditions we
have seen so far in 2018, as we continue to scale and advance our
business model centered on an intelligent network of interconnected
service centers delivering customer solutions and great customer
experiences, with an iconic industrial brand more than 175 years in
the making."
2017 Results
Revenues were $3.4 billion in
2017, up 17.7 percent from 2016, as the average selling price per
ton increased by 11.9 percent and tons sold increased by 5.1
percent.
Gross margin decreased to 17.3 percent in 2017, compared to 20.0
percent in 2016. Included in cost of materials sold was net LIFO
expense of $19.9 million in 2017 and
LIFO income, net of $6.6 million in
2016. Gross margin, excluding LIFO decreased to 17.9 percent in
2017, compared with 19.7 percent in 2016. Gross margin compression
was driven by procured metal costs that outpaced pricing power in
the industry primarily due to the level of imports in the market
and in-year volatility of nickel and chrome, as well as some
relative mix shift to sheet products, aluminum and stainless in
particular, where demand was stronger than in long and plate
products during 2017. A reconciliation of gross margin, excluding
LIFO to gross margin is included below in this news release.
Warehousing, delivery, selling, general, and administrative
expense increased by $36.1 million,
or 8.3 percent in 2017, compared to the year-ago period, driven by
higher variable costs as our tons sold increased. Warehousing,
delivery, selling, general, and administrative expenses as a
percentage of sales declined to 14.0 percent in 2017 compared to
15.3 percent in 2016, demonstrating the company's ability to
realize expense leverage with higher shipped volumes, even with an
environment of rising input and operating costs.
Net income attributable to Ryerson Holding Corporation was
$17.1 million, or $0.46 per diluted share, in 2017, compared to
$18.7 million, or $0.54 per diluted share, in 2016. Excluding
benefits from income tax reform, restructuring and other charges,
impairment charges on assets, and losses on the retirement of debt,
net income attributable to Ryerson Holding Corporation was
$13.8 million, or $0.37 per diluted share, in 2017 compared to
$28.0 million, or $0.81 per diluted share, in 2016.
Adjusted EBITDA, excluding LIFO increased 3.4 percent to
$184.1 million in 2017, compared to
$178.0 million in 2016.
Reconciliations of Adjusted EBITDA, excluding LIFO and net income
attributable to Ryerson Holding Corporation and earnings per share,
excluding benefits from income tax reform, restructuring and other
charges, impairment charges on assets, and losses on retirement of
debt to net income attributable to Ryerson Holding Corporation, are
included below in this news release.
Working Capital and Liquidity Management
In 2017, Ryerson's inventory balance stood at 71 days of supply
compared to 76 days in the year-ago period. Erich Schnaufer, Ryerson's Chief Financial
Officer, said, "Ryerson did an exceptional job of reducing
inventory levels by five days in 2017. Structural improvements in
asset management provided Ryerson greater optionality to invest in
value-added growth acquisitions, such as The Laserflex Corporation,
a metal fabricator specializing in laser cutting and welding
services, and Guy Metals, Inc., a processor and polisher of
stainless steel products. We also made targeted investments in
value-added processing equipment throughout the year while
continuing to maintain ample liquidity."
Additionally, Ryerson reduced its pension liability in
2017, which decreased from $216
million in 2016 to $165
million in 2017 driven by higher returns on plan assets and
lower benefit obligations.
As of December 31, 2017,
borrowings were $384 million on our
primary revolving credit facility with additional availability of
$264 million. Including cash,
marketable securities, and availability from foreign sources,
Ryerson's total liquidity was $338
million compared to $301
million in 2016.
Cash used in operating activities was $2.1 million in 2017, driven by increases in
working capital that supported a 17.7 percent increase in
revenue for the year. Ryerson generated $91
million from operating activities in the fourth quarter of
2017, as the Company reduced its working capital investment
consistent with demand expectations in the period. Ryerson
generated cash of $25 million from
operating activities in 2016 and $48
million from operating activities in the fourth quarter of
2016.
Fourth Quarter 2017 Results
Revenues were $810.6 million for
the fourth quarter of 2017, up 18.8 percent from the year-ago
period. The average selling price per ton increased 11.3 percent,
and tons shipped increased 6.8 percent from the fourth quarter of
2016.
Gross margin was 16.8 percent for the fourth quarter of 2017,
consistent with both the third quarter of 2017 and the fourth
quarter of 2016. Included in cost of materials sold was net LIFO
expense of $8.1 million for the
fourth quarter of 2017, net LIFO income of $1.7 million for the third quarter of 2017, and
net LIFO expense of $13.8 million for
the fourth quarter of 2016. Gross margin, excluding LIFO increased
to 17.8 percent for the fourth quarter of 2017, compared with 16.6
percent in the third quarter of 2017. Compared to the year-ago
period, gross margin, excluding LIFO decreased by 100 basis points
from 18.8 percent. A reconciliation of gross margin to gross
margin, excluding LIFO is included below in this news
release.
Warehousing, delivery, selling, general, and administrative
expense were $119.3 million for the
fourth quarter of 2017 compared to $104.9
million in the year-ago period. Warehousing, delivery,
selling, general, and administrative expenses as a percentage of
sales declined to 14.7 percent in the fourth quarter of 2017
compared to 15.4 percent in the year-ago period showing the
company's continued ability to successfully manage expenses and
reap the rewards of realized expense leverage.
Net income attributable to Ryerson Holding Corporation was zero
in the fourth quarter of 2017, compared to a net loss of
$8.6 million, or $0.23 per diluted share, in the fourth quarter of
2016. The enactment of the Tax Cuts and Jobs Act (Tax Reform) in
December 2017 resulted in a one-time
income tax benefit of $3.4 million in
the fourth quarter of 2017. The Tax Reform primarily impacted the
valuation of Ryerson's deferred tax assets and liabilities, as well
as imposed a one-time transition tax on foreign earnings. Excluding
benefits from income tax reform, restructuring and other charges,
impairment charges on assets, and losses on the retirement of debt,
the net loss attributable to Ryerson Holding Corporation in the
fourth quarter of 2017 was $3.4
million, $0.09 per diluted
share, compared to a loss of $7.1
million, or $0.19 per diluted
share in the fourth quarter of 2016.
Adjusted EBITDA, excluding LIFO was $40.6
million in the fourth quarter of 2017, higher than both the
third quarter of 2017 and fourth quarter of 2016 balances of
$37.7 million and $36.0 million, respectively. 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.
Outlook Commentary
Ryerson continues to assess the impact of the Tax Reform and
currently expects its effective tax rate for the full year of 2018
to be in the range of 26 percent to 27 percent. The Company
expects to receive AMT credit refunds of $30
million in total with $15
million expected in 2019 and the remainder going forward.
Given the substantial changes to the Internal Revenue Code, the
estimated financial impacts for the fourth quarter and the
full-year 2017 are subject to further analysis, which could result
in changes to these estimates in 2018.
Global supply and demand fundamentals appear stronger in 2018 as
a weaker U.S. dollar, lower domestic import levels, and supply-side
reforms in China seem to support
stronger pricing conditions in the U.S. Industrial metals commodity
prices for CRU carbon coil and plate products, London Metal
Exchange nickel, a key component of stainless products, and Midwest
Aluminum all continued to trend higher in the first months of 2018
compared to the fourth quarter of 2017, and should lend further
support and stabilization to average industry selling prices.
Demand remained positive for most of our key end markets compared
to last year, and Ryerson expects these conditions to continue for
at least the first half of 2018. Given the supply and demand
factors discussed, Ryerson expects further margin expansion in the
first quarter 2018 compared to the fourth quarter of 2017.
On March 1, 2018, President Trump
announced a 25 percent tariff on all imported steel products and 10
percent tariff on all imported aluminum products for an indefinite
amount of time under Section 232 of the Trade Expansion Act. If
formally enacted later this week as expected, we anticipate these
actions to have an upward bias on pricing conditions for metal
products in the U.S. for at least the first half of 2018. Ryerson
supports fair trade practices that create a level playing field for
suppliers, distributors, and metal end-users. For over 175 years
Ryerson has worked with its customers through all seasons and
cycles to deliver the best possible customer experiences to the
market place. As enacted trade policy plays out in the months and
potentially years ahead, we will exhaust every effort to provide
supply chain continuity and solutions that add value for our
customers.
Fourth Quarter
2017 Business Metrics
|
|
|
Fourth
Quarter
2017
|
Third
Quarter
2017
|
Fourth
Quarter
2016
|
Sequential
Quarter
Change
|
Year-Over-Year
Change
|
Tons shipped (In
thousands)
|
470
|
515
|
440
|
-8.7%
|
6.8%
|
|
Average selling
price/ton
|
$1,725
|
$1,678
|
$1,550
|
2.8%
|
11.3%
|
Average
cost/ton
|
1,435
|
1,396
|
1,290
|
2.8%
|
11.2%
|
Average cost/ton,
excluding LIFO
|
1,418
|
1,399
|
1,259
|
1.4%
|
12.6%
|
Fourth Quarter
2017 Major Product Metrics
|
|
|
Tons Shipped (Tons
in thousands)
|
Average Selling
Price per Ton Shipped
|
|
Fourth
Quarter
2017
|
Third Quarter
2017
|
Fourth Quarter
2016
|
Sequential Quarter
Change
|
Year-Over-Year
Change
|
Sequential Quarter
Change
|
Year-Over-Year
Change
|
Carbon
steel
|
355
|
387
|
332
|
-8.3%
|
6.9%
|
1.1%
|
10.0%
|
Aluminum
|
49
|
53
|
43
|
-7.5%
|
14.0%
|
3.2%
|
8.1%
|
Stainless
steel
|
65
|
73
|
64
|
-11.0%
|
1.6%
|
6.1%
|
16.7%
|
|
Net Sales (Dollars
in millions)
|
|
Fourth
Quarter
2017
|
Third
Quarter
2017
|
Fourth
Quarter
2016
|
Sequential
Quarter
Change
|
Year-Over-
Year
Change
|
Carbon
steel
|
$407
|
$439
|
$346
|
-7.3%
|
17.6%
|
Aluminum
|
186
|
195
|
151
|
-4.6%
|
23.2%
|
Stainless
steel
|
205
|
217
|
173
|
-5.5%
|
18.5%
|
Twelve Months
Ended December 31 Business Metrics
|
|
|
Twelve Months Ended
December 31, 2017
|
Twelve Months Ended
December 31, 2016
|
Year-Over-Year
Change
|
Tons shipped (In
thousands)
|
2,000
|
1,903
|
5.1%
|
|
Average selling
price/ton
|
$1,682
|
$1,503
|
11.9%
|
Average
cost/ton
|
1,391
|
1,203
|
15.6%
|
Average cost/ton,
excluding LIFO
|
1,381
|
1,206
|
14.5%
|
|
|
|
|
|
Twelve Months
Ended December 31 Major Product Metrics
|
|
|
Tons Shipped (Tons
in thousands)
|
Average Selling
Price per Ton
Shipped
|
|
Twelve Months Ended
December 31, 2017
|
Twelve Months Ended
December 31, 2016
|
Year-Over-Year
Change
|
Year-Over-Year
Change
|
Carbon
steel
|
1,505
|
1,443
|
4.3%
|
13.6%
|
Aluminum
|
204
|
189
|
7.9%
|
3.4%
|
Stainless
steel
|
283
|
262
|
8.0%
|
14.5%
|
|
|
|
|
|
|
|
Sales (Dollars in
millions)
|
|
Twelve Months
Ended
December 31,
2017
|
Twelve Months
Ended
December 31,
2016
|
Year-Over-Year
Change
|
Carbon
steel
|
$1,696
|
$1,432
|
18.4%
|
Aluminum
|
752
|
674
|
11.6%
|
Stainless
steel
|
866
|
700
|
23.7%
|
Earnings Call Information
Ryerson will host a conference call to discuss its fourth
quarter 2017 results Tuesday, March 6,
2018 at 10 a.m. Eastern Time.
Participants may access the conference call by dialing 833-241-7253
(Domestic) or 647-689-4217 (International) and using conference ID
5372519. The live online broadcast will be available on the
Company's investor relations website, ir.ryerson.com. A replay will
be available at the same website for 90 days.
About Ryerson
Ryerson is a leading value-added processor and distributor of
industrial metals, with operations in the
United States, Canada,
Mexico, and China. Founded in 1842, Ryerson employs around
3,600 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, 2017, 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,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
|
|
$
810.6
|
|
$
682.2
|
|
$
864.2
|
|
$
3,364.7
|
|
$
2,859.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of materials
sold
|
|
674.1
|
|
567.6
|
|
719.2
|
|
2,782.2
|
|
2,289.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
136.5
|
|
114.6
|
|
145.0
|
|
582.5
|
|
570.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warehousing,
delivery, selling, general, and administrative
|
|
119.3
|
|
104.9
|
|
119.2
|
|
472.5
|
|
436.4
|
|
Restructuring and
other charges
|
|
-
|
|
(1.5)
|
|
-
|
|
-
|
|
1.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
17.2
|
|
11.2
|
|
25.8
|
|
110.0
|
|
133.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income and
(expense), net (1)
|
|
(0.3)
|
|
(4.0)
|
|
(1.4)
|
|
(2.3)
|
|
(17.2)
|
|
Interest and other
expense on debt
|
|
(23.2)
|
|
(22.4)
|
|
(23.2)
|
|
(91.0)
|
|
(89.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
|
(6.3)
|
|
(15.2)
|
|
1.2
|
|
16.7
|
|
26.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
(6.6)
|
|
(6.8)
|
|
(0.7)
|
|
(1.3)
|
|
7.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
|
0.3
|
|
(8.4)
|
|
1.9
|
|
18.0
|
|
18.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interest
|
|
0.3
|
|
0.2
|
|
0.2
|
|
0.9
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO RYERSON HOLDING CORPORATION
|
|
$
-
|
|
$
(8.6)
|
|
$
1.7
|
|
$
17.1
|
|
$
18.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
-
|
|
$
(0.23)
|
|
$
0.05
|
|
$
0.46
|
|
$
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$
-
|
|
$
(0.23)
|
|
$
0.05
|
|
$
0.46
|
|
$
0.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
basic
|
|
37.2
|
|
37.1
|
|
37.2
|
|
37.2
|
|
34.3
|
Shares outstanding -
diluted
|
|
37.2
|
|
37.1
|
|
37.3
|
|
37.3
|
|
34.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons shipped
(000)
|
|
|
470
|
|
440
|
|
515
|
|
2,000
|
|
1,903
|
|
Shipping
days
|
|
|
60
|
|
60
|
|
63
|
|
251
|
|
252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price/ton
|
|
$
1,725
|
|
$
1,550
|
|
$
1,678
|
|
$
1,682
|
|
$
1,503
|
|
Gross
profit/ton
|
|
|
290
|
|
260
|
|
282
|
|
291
|
|
300
|
|
Operating
profit/ton
|
|
|
37
|
|
25
|
|
50
|
|
55
|
|
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
(income), net per ton
|
|
17
|
|
31
|
|
(3)
|
|
10
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
(income), net
|
|
$
8.1
|
|
$
13.8
|
|
$
(1.7)
|
|
$
19.9
|
|
$
(6.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
13.0
|
|
10.7
|
|
11.9
|
|
47.1
|
|
42.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow provided by
(used in) operating activities
|
|
91.2
|
|
47.8
|
|
(12.2)
|
|
(2.1)
|
|
24.9
|
|
Capital
expenditures
|
|
|
(9.3)
|
|
(3.3)
|
|
(5.6)
|
|
(25.1)
|
|
(23.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
77.4
|
|
$
80.7
|
|
|
|
Restricted
cash
|
|
|
1.1
|
|
1.0
|
|
|
|
Receivable, less
provision for allowances, claims and
|
|
|
|
|
|
|
|
|
doubtful accounts of
$4.9 in 2017 and $4.6 in 2016
|
|
376.3
|
|
326.0
|
|
|
|
Inventories
|
|
|
616.5
|
|
563.4
|
|
|
|
Prepaid expenses and
other current assets
|
|
32.6
|
|
26.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
1,103.9
|
|
997.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, at cost
|
|
742.7
|
|
668.7
|
|
|
Less: accumulated
depreciation
|
|
319.8
|
|
280.5
|
|
|
|
Property, plant and
equipment, net
|
|
422.9
|
|
388.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
17.9
|
|
24.4
|
|
|
Other intangible
assets
|
|
46.9
|
|
40.8
|
|
|
Goodwill
|
|
|
|
115.3
|
|
103.2
|
|
|
Deferred charges and
other assets
|
|
5.0
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
$
1,711.9
|
|
$
1,558.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$
275.0
|
|
$
230.4
|
|
|
|
Salaries, wages and
commissions
|
|
40.3
|
|
36.8
|
|
|
|
Other accrued
liabilities
|
|
58.4
|
|
37.7
|
|
|
|
Short-term
debt
|
|
|
21.3
|
|
19.2
|
|
|
|
Current portion of
deferred employee benefits
|
|
7.7
|
|
8.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
402.7
|
|
332.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
1,024.4
|
|
944.3
|
|
|
Deferred employee
benefits
|
|
243.5
|
|
298.8
|
|
|
Other noncurrent
liabilities
|
|
48.7
|
|
32.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,719.3
|
|
1,608.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
Ryerson Holding
Corporation stockholders' equity (deficit):
|
|
|
|
|
|
|
|
Preferred stock,
$0.01 par value; 7,000,000 shares authorized
|
|
|
|
|
|
|
|
|
and no shares issued
at 2017 and 2016
|
|
-
|
|
-
|
|
|
|
Common stock, $0.01
par value; 100,000,000 shares authorized; 37,421,081
|
|
|
|
|
|
|
|
|
and 37,345,117 shares
issued at 2017 and 2016, respectively
|
|
0.4
|
|
0.4
|
|
|
|
Capital in excess of
par value
|
|
377.6
|
|
375.4
|
|
|
|
Accumulated
deficit
|
|
(95.1)
|
|
(112.2)
|
|
|
|
Treasury stock, at
cost - Common stock of 212,500 shares in 2017 and 2016
|
|
(6.6)
|
|
(6.6)
|
|
|
|
Accumulated other
comprehensive loss
|
|
(286.3)
|
|
(307.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Ryerson Holding
Corporation Stockholders' Equity (Deficit)
|
|
(10.0)
|
|
(50.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
|
2.6
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity
(Deficit)
|
|
(7.4)
|
|
(49.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
1,711.9
|
|
$
1,558.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Ryerson Holding Corporation
|
|
$
-
|
|
$
(8.6)
|
|
$
1.7
|
|
$
17.1
|
|
$
18.7
|
Interest and other
expense on debt
|
|
23.2
|
|
22.4
|
|
23.2
|
|
91.0
|
|
89.9
|
Provision (benefit)
for income taxes
|
|
(6.6)
|
|
(6.8)
|
|
(0.7)
|
|
(1.3)
|
|
7.2
|
Depreciation and
amortization expense
|
|
13.0
|
|
10.7
|
|
11.9
|
|
47.1
|
|
42.5
|
EBITDA
|
|
|
|
|
$
29.6
|
|
$
17.7
|
|
$
36.1
|
|
$
153.9
|
|
$
158.3
|
Reorganization
|
|
|
1.3
|
|
0.5
|
|
0.9
|
|
4.1
|
|
6.6
|
Foreign currency
transaction losses
|
|
0.2
|
|
0.7
|
|
1.4
|
|
2.0
|
|
3.9
|
Loss on retirement of
debt
|
|
-
|
|
1.5
|
|
-
|
|
-
|
|
8.7
|
Impairment charges on
assets
|
|
-
|
|
2.4
|
|
-
|
|
0.2
|
|
5.2
|
Purchase
consideration and other transaction costs
|
|
1.3
|
|
(0.5)
|
|
1.0
|
|
3.9
|
|
1.5
|
Other
adjustments
|
|
|
0.1
|
|
(0.1)
|
|
-
|
|
0.1
|
|
0.4
|
Adjusted
EBITDA
|
|
|
$
32.5
|
|
$
22.2
|
|
$
39.4
|
|
$
164.2
|
|
$
184.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
$
32.5
|
|
$
22.2
|
|
$
39.4
|
|
$
164.2
|
|
$
184.6
|
LIFO expense
(income), net
|
|
8.1
|
|
13.8
|
|
(1.7)
|
|
19.9
|
|
(6.6)
|
Adjusted EBITDA,
excluding LIFO expense (income), net
|
|
$
40.6
|
|
$
36.0
|
|
$
37.7
|
|
$
184.1
|
|
$
178.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
$
810.6
|
|
$
682.2
|
|
$
864.2
|
|
$
3,364.7
|
|
$
2,859.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
excluding LIFO expense (income), net, as a percentage of net
sales
|
5.0%
|
|
5.3%
|
|
4.4%
|
|
5.5%
|
|
6.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
$
136.5
|
|
$
114.6
|
|
$
145.0
|
|
$
582.5
|
|
$
570.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
16.8%
|
|
16.8%
|
|
16.8%
|
|
17.3%
|
|
20.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
$
136.5
|
|
$
114.6
|
|
$
145.0
|
|
$
582.5
|
|
$
570.6
|
LIFO expense
(income), net
|
|
8.1
|
|
13.8
|
|
(1.7)
|
|
19.9
|
|
(6.6)
|
Gross profit,
excluding LIFO expense (income), net
|
|
$
144.6
|
|
$
128.4
|
|
$
143.3
|
|
$
602.4
|
|
$
564.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin,
excluding LIFO expense (income), net
|
|
17.8%
|
|
18.8%
|
|
16.6%
|
|
17.9%
|
|
19.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, Loss on Retirement of Debt, and Benefit from Income Tax
Reform
|
|
|
|
|
|
(Dollars and Shares
in Millions, Except Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
|
|
Year Ended
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Quarter
|
|
December
31,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Ryerson Holding Corporation
|
|
$
-
|
|
$
(8.6)
|
|
$
1.7
|
|
$
17.1
|
|
$
18.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
other charges
|
|
-
|
|
(1.5)
|
|
-
|
|
-
|
|
1.0
|
Impairment charges on
assets
|
|
-
|
|
2.4
|
|
-
|
|
0.2
|
|
5.2
|
Loss on retirement of
debt
|
|
-
|
|
1.5
|
|
-
|
|
-
|
|
8.7
|
Benefit from income
tax reform
|
|
(3.4)
|
|
-
|
|
-
|
|
(3.4)
|
|
-
|
Benefit for income
taxes
|
|
|
-
|
|
(0.9)
|
|
-
|
|
(0.1)
|
|
(5.6)
|
Net income (loss)
attributable to Ryerson Holding Corporation, excluding
|
|
|
|
|
|
|
|
|
|
|
|
restructuring and
other charges, impairment charges on assets, loss
|
|
|
|
|
|
|
|
|
|
|
|
on retirement of
debt, and benefit from income tax reform
|
|
$
(3.4)
|
|
$
(7.1)
|
|
$
1.7
|
|
$
13.8
|
|
$
28.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share, excluding restructuring and other charges,
impairment
|
|
|
|
|
|
|
|
|
|
|
|
impairment charges on
assets, loss on retirement of debt,
|
|
|
|
|
|
|
|
|
|
|
|
and benefit from
income tax reform
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
(0.09)
|
|
$
(0.19)
|
|
$
0.05
|
|
$
0.37
|
|
$
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$
(0.09)
|
|
$
(0.19)
|
|
$
0.05
|
|
$
0.37
|
|
$
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
basic
|
|
37.2
|
|
37.1
|
|
37.2
|
|
37.2
|
|
34.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
diluted
|
|
37.2
|
|
37.1
|
|
37.3
|
|
37.3
|
|
34.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
Net income (loss) and
Earnings (loss) per share excluding restructuring and other
charges, impairment charges on assets, loss on retirement of debt,
and benefit from income tax reform is presented to provide a means
of comparison with periods that do not include restructuring and
other charges, impairment charges on assets, loss on retirement of
debt, and benefit from income tax reform.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/ryerson-reports-fourth-quarter-and-full-year-2017-results-300608445.html
SOURCE Ryerson Holding Corporation