Ryerson Reports First Quarter 2023 Results.

CHICAGO: Ryerson Holding Corporation (NYSE: RYI), a leading value-added processor and distributor of industrial metals, today reported results for the first quarter ended March 31, 2023.

Highlights:

Achieved Net Income attributable to Ryerson Holding Corporation of $47.3 million with Adjusted EBITDA1, excluding LIFO of $90.1 million

Earned Diluted EPS2 of $1.27 on revenue of $1.4 billion

Generated Operating Cash Flow of $80.4 million and Free Cash Flow of $52.6 million

Maintained Net Leverage ratio at low end of target at 0.8x, debt of $395 million and net debt3 of $351 million as of March 31, 2023, compared to $367 million and $328 million, respectively, on December 31, 2022

Repurchased 1.5 million shares directly from an affiliate of Platinum Equity in a secondary public offering creating value for shareholders and contributing to free float increasing to 67%, as of March 31, 2023

Acquired value-added processor BLP Holdings, LLC

Announced second quarter 2023 dividend of $0.18 per share, a 5.9% increase from the prior quarter

Announced an increase and extension of the share repurchase program by approximately $80 million to $100 million through April 2025

$ in millions, except tons (in thousands), average selling prices, and earnings per share

Financial Highlights:

Q1 2023

Q1 2022

Q4 2022

YoY

QoQ

Revenue

$

1,406.1

$

1,748.8

$

1,288.2

(19.6)

%

9.2

%

Tons shipped

519

528

465

(1.7)

%

11.6

%

Average selling price/ton

$

2,709

$

3,312

$

2,770

(18.2)

%

(2.2)

%

Gross margin

18.8

%

23.5

%

12.7

%

-470 bps

610 bps

Gross margin, excl. LIFO

19.1

%

23.6

%

15.3

%

-450 bps

380 bps

Warehousing, delivery, selling, general, and administrative expenses

$

194.2

$

175.3

$

190.5

10.8

%

1.9

%

As a percentage of revenue

13.8

%

10.1

%

14.8

%

370 bps

-100 bps

Net income (loss) attributable to Ryerson Holding Corporation

$

47.3

$

163.6

$

(24.1)

(71.1)

%

(296.3)

%

Diluted earnings (loss) per share

$

1.27

$

4.17

$

(0.65)

$

(2.90)

$

1.92

Adjusted diluted earnings (loss) per share

$

1.27

$

4.27

$

(0.65)

$

(3.00)

$

1.92

Adj. EBITDA, excl. LIFO

$

90.1

$

250.6

$

28.7

(64.0)

%

213.9

%

Adj. EBITDA, excl. LIFO margin

6.4

%

14.3

%

2.2

%

-790 bps

420 bps

Balance Sheet and Cash Flow Highlights:

Total debt

$

395.1

$

551.3

$

367.0

(28.3)

%

7.7

%

Cash and cash equivalents

$

43.7

$

44.7

$

39.2

(2.2)

%

11.5

%

Net debt

$

351.4

$

506.6

$

327.8

(30.6)

%

7.2

%

Net debt / LTM Adj. EBITDA, excl. LIFO

0.8

x

0.5

x

0.6

x

0.3

x

0.2

x

Cash conversion cycle (days)

77.4

76.8

91.6

0.6

(14.2)

Net cash provided by (used in) operating activities

$

80.4

$

82.5

$

181.6

$

(2.1)

$

(101.2)

A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included below in this news release.

Management Commentary

Eddie Lehner, Ryerson's President and Chief Executive Officer, said, "I want to thank all of my Ryerson teammates for their dedicated efforts in the service of operating safely and productively during the quarter and I want to thank our customers for the opportunity to create and deliver great customer experiences. Ryerson produced good operating results during a period of better-than-expected composite demand and price...