Ryerson Reports Third Quarter 2024 Results

PR Newswire
10 min read

In This Article:

Quarterly business highlights include operating cash flow of $134.6 million, Central Steel & Wire's University Park, IL distribution hub and service center open house, progress on expansion and modernization of the Shelbyville, KY non-ferrous processing center, closing of the Production Metals acquisition and entry into aerospace, defense, and semiconductor metals markets, and ongoing cost-reduction work across our North America service center network  

CHICAGO, Oct. 29, 2024 /PRNewswire/ -- Ryerson Holding Corporation (NYSE: RYI), a leading value-added processor and distributor of industrial metals, today reported results for the third quarter ended September 30, 2024.

Ryerson Logo
Ryerson Logo

Highlights:

  • Generated $1.13 billion of revenue from 485,000 tons shipped and average selling price of $2,323 per ton

  • Incurred Net Loss attributable to Ryerson Holding Corporation of $6.6 million, or Diluted Loss Per Share of $0.20 and Adjusted EBITDA1, excluding LIFO of $21.0 million as counter-cyclical and seasonal bottoming continues

  • Generated Operating Cash Flow of $134.6 million and Free Cash Flow of $103.4 million

  • Reduced inventory by $80.8 million on a FIFO cost basis2, compared to the second quarter of 2024

  • Returned $42.0 million to shareholders during the quarter, comprised of $36.0 million in share repurchases and $6.0 million in dividends

  • Ended the quarter with debt of $522 million and net debt3 of $487 million as of September 30, 2024, compared to $525 million and $497 million, respectively, on June 30, 2024

  • Progressing well towards $60 million of annualized cost reduction expectations from operating expenses4

  • Acquired Production Metals, a value-added processor of aluminum, stainless, and specialty steel

  • Hosted open house at Central Steel & Wire's University Park, IL distribution hub and service center for customers, suppliers, vendors, investors, and employees

  • Declared a fourth-quarter 2024 dividend of $0.1875 per share

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

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




















Financial Highlights:


Q3 2024


Q2 2024


Q3 2023


QoQ


YoY


9MO 2024


9MO 2023


YoY


















Revenue


$1,126.6


$1,225.5


$1,246.7


(8.1) %


(9.6) %


$3,591.3


$3,996.3


(10.1) %

Tons shipped


485


508


478


(4.5) %


1.5 %


1,490


1,493


(0.2) %

Average selling price/ton


$2,323


$2,412


$2,608


(3.7) %


(10.9) %


$2,410


$2,677


(10.0) %

Gross margin


17.9 %


18.2 %


20.0 %


-30 bps


-210 bps


17.9 %


19.4 %


-150 bps

Gross margin, excl. LIFO


16.3 %


17.4 %


17.3 %


-110 bps


-100 bps


17.2 %


18.4 %


-120 bps

Warehousing, delivery, selling, general, and
administrative expenses


$196.9


$199.0


$193.0


(1.1) %


2.0 %


$612.7


$589.8


3.9 %

As a percentage of revenue


17.5 %


16.2 %


15.5 %


130 bps


200 bps


17.1 %


14.8 %


230 bps

Net income (loss) attributable to Ryerson Holding Corporation


$(6.6)


$9.9


$35.0


(166.7) %


(118.9) %


$(4.3)


$119.9


(103.6) %

Diluted earnings (loss) per share


$(0.20)


$0.29


$1.00


$(0.49)


$(1.20)


$(0.13)


$3.34


$(3.47)

Adjusted diluted earnings (loss) per share


$(0.20)


$0.33


$1.00


$(0.53)


$(1.20)


$(0.05)


$3.34


$(3.39)

Adj. EBITDA, excl. LIFO


$21.0


$42.6


$45.0


(50.7) %


(53.3) %


$103.8


$205.2


(49.4) %

Adj. EBITDA, excl. LIFO margin


1.9 %


3.5 %


3.6 %


-160 bps


-170 bps


2.9 %


5.1 %


-220 bps


















Balance Sheet and Cash Flow Highlights:

















Total debt


$522.1


$525.4


$365.9


(0.6) %


42.7 %


$522.1


$365.9


42.7 %

Cash and cash equivalents


$35.0


$28.0


$37.4


25.0 %


(6.4) %


$35.0


$37.4


(6.4) %

Net debt


$487.1


$497.4


$328.5


(2.1) %


48.3 %


$487.1


$328.5


48.3 %

Net debt / LTM Adj. EBITDA, excl. LIFO


3.8x


3.2x


1.4x


0.6x


2.4x


3.8x


1.4x


2.4x

Cash conversion cycle (days)


79.3


77.6


78.3


1.7


1.0


76.5


77.6


(1.1)

Net cash provided by operating activities


$134.6


$25.9


$79.3


$108.7


$55.3


$112.7


$275.0


$(162.3)

Management Commentary
Eddie Lehner, Ryerson's President, Chief Executive Officer, and Director, said, "I want to thank all my Ryerson teammates for working safely while striving to create an always improving Ryerson that delivers the industry's best customer experience safely, enjoyably, and productively. Two things can be true at the same time: 1) the industry is experiencing a cyclical bottoming marked by twenty-four months of moving average demand and price contraction; and 2) Ryerson's record investments in systems, capital expenditures, and acquisitions over this same period are positioning the company well for the next cyclical upturn. Over the third quarter we managed the business effectively through a contractionary industrial metals and manufacturing environment that produced compressed margins, most notably in carbon steels and across the commodity spectrum with lagging OEM customer contract price resets. Despite these challenges, we experienced improvements in key performance indicators including cash flow, expense and working capital management, and most importantly, we are seeing investment related growth pains and disruptions across our network beginning to subside as we move through the balance of 2024 with budding optimism for 2025. Ryerson has emerged more efficient and better through every previous counter-cycle and, looking forward, our optimization phase will bring together a greatly modernized service center network, enhanced value-added capabilities, across a digitally enabled enterprise to provide Ryerson's best-ever customer experience while setting the table for realization of our next stage financial targets."

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