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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|
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 :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
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|
|
|
|
|
|
See Schedule 2 for EBITDA and Adjusted EBITDA reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Schedule 3 for EPS reconciliation.
|
|
|
|
|
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|
|
Schedule 1
|
RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
|
(In millions, except shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin, excluding LIFO expense (income), net
|
|
20.0%
|
|
21.1%
|
|
16.3%
|
|
20.0%
|
|
15.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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