Ryerson Announces First Quarter 2015 Results
05/13/2015 - Ryerson generates strong cash flow in a difficult metals environment.
Ryerson Holding Corporation (NYSE: RYI), a leading distributor and processor of metals, today reported results for the first quarter of 2015.
First Quarter 2015 Results
Revenues for the first quarter of 2015 were $868.0 million, unchanged from the fourth quarter of 2014 and down 0.7 percent from the first quarter of 2014. Gross margin was 17.3 percent for the first quarter of 2015, compared to 16.4 percent for the fourth quarter of 2014 and 16.9 percent in the year-ago period. Gross margin, excluding LIFO was 15.9 percent in the first quarter of 2015, compared to 16.4 percent for the fourth quarter of 2014 and 17.9 percent for the first quarter of 2014. A reconciliation of gross margin, excluding LIFO to gross margin is included below in this news release.
Warehousing, delivery, selling, general and administrative expense was down 0.6 percent sequentially, from the fourth quarter of 2014 and down 1.2 percent year-over-year.
Operating profit was $33.6 million for the first quarter of 2015, compared with $25.6 million in the fourth quarter of 2014 and $29.9 million in the first quarter of 2014.
The net loss attributable to Ryerson Holding Corporation was $2.5 million, or a loss of $0.08 per share in the first quarter of 2015, compared to net income attributable to Ryerson Holding Corporation of $4.8 million in the fourth quarter of 2014 and $1.6 million in the first quarter of 2014. In the first quarter of 2015, the company took a non-cash charge of $12.3 million, or $0.23 per share after tax, to recognize the decrease in value of its investment in A. M. Castle & Co. Excluding the impairment charge on this investment, earnings per share would have been $0.15 in the first quarter of 2015. A reconciliation of net income attributable to Ryerson Holding Corporation and earnings per share, excluding impairment charge on assets to net loss attributable to Ryerson Holding Corporation is included below in this news release. The company also repurchased and retired $29.8 million principal amount of its 2017 and 2018 Notes, resulting in a $0.8 million loss in the first quarter of 2015.
Adjusted EBITDA, excluding LIFO was $35.9 million for the first quarter of 2015, compared to $40.1 million in the fourth quarter of 2014 and $53.2 million in the first quarter of 2014. A reconciliation of Adjusted EBITDA, excluding LIFO to net income attributable to Ryerson Holding Corporation is included below in this news release.
During the first quarter of 2015, Ryerson reduced inventory by $76 million, or 10 percent. As a result of the company's working capital management, Ryerson generated cash flow from operating activities of $101.6 million. Capital expenditures in the quarter were $5.7 million.
"We continued to effectively manage areas within our control, such as inventory and expenses," said Mike Arnold, Ryerson's president and chief executive officer. "As a result, we generated strong, counter-cyclical cash flow. However, macro-conditions – with overall softening of demand and supply exceeding demand across virtually all metal products on a global basis – pressured our results in the quarter."
"Continued deflationary pressure in metal prices resulted in gross margin compression in the quarter, as average cost inventories exceeded spot replacement costs," continued Arnold. "We are aggressively managing inventories so we can align our average cost inventory with current prices and expand margins as we capture the benefits of our corporate transformation and value-added strategy."
First Quarter 2015 Business Metrics
First Quarter 2015 Major Product Metrics
Earnings Call Information
The company will host a conference call to discuss its first quarter 2015 results on Friday, May 8, at 10 a.m. Eastern Time. Participants may access the conference call by dialing 888-670-2253 (U.S., Canada) and 913-312-1507 (International) and using conference ID 9708795. 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.
Ryerson is a processor and distributor of metals with operations in the United States, Mexico, Canada, China and Brazil. The company serves a variety of industries, including customers making products or equipment for construction, packaging, oil and gas and truck trailers. Founded in 1842, Ryerson is headquartered in the United States and employs approximately 3,600 employees in more than 100 locations. For more information, visit www.ryerson.com.
First Quarter 2015 Results
Revenues for the first quarter of 2015 were $868.0 million, unchanged from the fourth quarter of 2014 and down 0.7 percent from the first quarter of 2014. Gross margin was 17.3 percent for the first quarter of 2015, compared to 16.4 percent for the fourth quarter of 2014 and 16.9 percent in the year-ago period. Gross margin, excluding LIFO was 15.9 percent in the first quarter of 2015, compared to 16.4 percent for the fourth quarter of 2014 and 17.9 percent for the first quarter of 2014. A reconciliation of gross margin, excluding LIFO to gross margin is included below in this news release.
Warehousing, delivery, selling, general and administrative expense was down 0.6 percent sequentially, from the fourth quarter of 2014 and down 1.2 percent year-over-year.
Operating profit was $33.6 million for the first quarter of 2015, compared with $25.6 million in the fourth quarter of 2014 and $29.9 million in the first quarter of 2014.
The net loss attributable to Ryerson Holding Corporation was $2.5 million, or a loss of $0.08 per share in the first quarter of 2015, compared to net income attributable to Ryerson Holding Corporation of $4.8 million in the fourth quarter of 2014 and $1.6 million in the first quarter of 2014. In the first quarter of 2015, the company took a non-cash charge of $12.3 million, or $0.23 per share after tax, to recognize the decrease in value of its investment in A. M. Castle & Co. Excluding the impairment charge on this investment, earnings per share would have been $0.15 in the first quarter of 2015. A reconciliation of net income attributable to Ryerson Holding Corporation and earnings per share, excluding impairment charge on assets to net loss attributable to Ryerson Holding Corporation is included below in this news release. The company also repurchased and retired $29.8 million principal amount of its 2017 and 2018 Notes, resulting in a $0.8 million loss in the first quarter of 2015.
Adjusted EBITDA, excluding LIFO was $35.9 million for the first quarter of 2015, compared to $40.1 million in the fourth quarter of 2014 and $53.2 million in the first quarter of 2014. A reconciliation of Adjusted EBITDA, excluding LIFO to net income attributable to Ryerson Holding Corporation is included below in this news release.
During the first quarter of 2015, Ryerson reduced inventory by $76 million, or 10 percent. As a result of the company's working capital management, Ryerson generated cash flow from operating activities of $101.6 million. Capital expenditures in the quarter were $5.7 million.
"We continued to effectively manage areas within our control, such as inventory and expenses," said Mike Arnold, Ryerson's president and chief executive officer. "As a result, we generated strong, counter-cyclical cash flow. However, macro-conditions – with overall softening of demand and supply exceeding demand across virtually all metal products on a global basis – pressured our results in the quarter."
"Continued deflationary pressure in metal prices resulted in gross margin compression in the quarter, as average cost inventories exceeded spot replacement costs," continued Arnold. "We are aggressively managing inventories so we can align our average cost inventory with current prices and expand margins as we capture the benefits of our corporate transformation and value-added strategy."
First Quarter 2015 Business Metrics
|
First Quarter 2015 |
Fourth Quarter 2014 |
First Quarter 2014 |
Sequential Quarter Change | Year-Over-Year Change | |
| Tons shipped (In thousands) | 476 | 471 | 506 | 1.1% | -5.9% |
| Average selling price/ton | $1,824 | $1,844 | $1,728 | -1.1% | 5.6% |
| Average cost/ton | 1,509 | 1,542 | 1,436 | -2.1% | 5.1% |
| Average cost/ton, excluding LIFO | 1,534 | 1,541 | 1,418 | -0.5% | 8.2% |
First Quarter 2015 Major Product Metrics
| Tons Shipped (Tons in thousands) | Average Selling Price per Ton Shipped | |||||||||||
| First Quarter 2015 | Fourth Quarter 2014 | First Quarter 2014 | Sequential Quarter Change | Year-Over-Year Change | Sequential Quarter Change | Year-Over-Year Change | ||||||
| Carbon steel | 368 | 363 | 399 | 1.4% | -7.8% | -0.2% | 1.4% | |||||
| Aluminum | 48 | 48 | 45 | 0.0% | 6.7% | 1.5% | 5.3% | |||||
| Stainless Steel | 57 | 57 | 60 | 0.0% | -5.0% | -3.8% | 9.0% | |||||
| Net Sales (Dollars in millions) | ||||||||||||
|
First Quarter 2015 |
Fourth Quarter 2014 |
First Quarter 2014 |
Sequential Quarter Change | Year-Over-Year Change | ||||||||
| Carbon steel | $446 | $441 | $477 | 1.1% | -6.5% | |||||||
| Aluminum | 201 | 198 | 179 | 1.5% | 12.3% | |||||||
| Stainless Steel | 205 | 213 | 198 | -3.8% | 3.5% | |||||||
Earnings Call Information
The company will host a conference call to discuss its first quarter 2015 results on Friday, May 8, at 10 a.m. Eastern Time. Participants may access the conference call by dialing 888-670-2253 (U.S., Canada) and 913-312-1507 (International) and using conference ID 9708795. 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.
Ryerson is a processor and distributor of metals with operations in the United States, Mexico, Canada, China and Brazil. The company serves a variety of industries, including customers making products or equipment for construction, packaging, oil and gas and truck trailers. Founded in 1842, Ryerson is headquartered in the United States and employs approximately 3,600 employees in more than 100 locations. For more information, visit www.ryerson.com.
