CHICAGO, Jan. 24, 2018 /PRNewswire/ -- Ryerson
Holding Corporation (NYSE: RYI), a leading value-added
processor and distributor of industrial metals, today provided
guidance for its fourth quarter ending December 31, 2017. The Company anticipates
revenue of approximately $810 million
for the fourth quarter of 2017 compared to $864 million in the third quarter of 2017 and
$682 million in the fourth quarter of
2016. Average selling prices in the fourth quarter of 2017 are
expected to be approximately three percent higher than the third
quarter of 2017. Fourth quarter shipments are expected to be
approximately nine percent lower sequentially due to fewer shipping
days and normal seasonal demand. Average selling prices are
expected to be approximately 11 percent higher and tons sold are
expected to be approximately seven percent higher compared to the
fourth quarter of 2016. The Company expects fourth quarter 2017 net
loss attributable to Ryerson Holding Corporation in the range of
$2 million to $4 million, which includes LIFO expense of
$7 million to $10 million. Estimated fourth quarter 2017
earnings guidance does not include the impact from any recent
federal tax legislation changes in the
United States. Adjusted EBITDA, excluding LIFO is expected
to be in the range of $40 million to
$42 million for the fourth quarter of
2017. Ryerson reported fourth quarter 2016 net loss attributable to
Ryerson Holding Corporation of $9
million and third quarter of 2017 net income attributable to
Ryerson Holding Corporation of $2
million. Adjusted EBITDA, excluding LIFO was $36 million in the fourth quarter of 2016 and
$38 million in the third quarter of
2017. A reconciliation of Adjusted EBITDA, excluding LIFO to net
income attributable to Ryerson Holding Corporation is included
below in this news release.
Ryerson experienced quarterly year-over-year growth in nearly
all end markets, most notably in commercial ground transportation,
HVAC, and oil & gas, while consumer durables experienced
quarterly year-over-year demand declines. Ryerson's end markets as
measured in shipments per day showed sequential quarterly declines
in nearly all sectors due to normal seasonal demand experienced in
the fourth quarter.
Ryerson continues to see improved demand and pricing conditions
heading into 2018. According to the Metal Service Center Institute,
U.S. service center volumes increased by four percent in 2017
compared to the prior year period. Industrial production, as
measured by the Federal Reserve, increased to a three-year high of
3.6 percent in December 2017. Ryerson
anticipates domestic service centers to benefit from the increased
demand in early 2018 compared to 2017, as the elevated import
levels experienced in the first half of 2017 appear to have
moderated, with November 2017 U.S.
imports of carbon and stainless products down over 30 percent
compared to peak levels in June 2017.
Further, carbon and aluminum prices remained relatively stable in
the fourth quarter compared to the third quarter of 2017. Nickel
prices, a key component of stainless pricing, remain highly
volatile but are up over 10 percent in mid-January from
mid-December, which could positively impact stainless steel prices
in the first half of 2018.
Ryerson Holding Corporation's Fourth Quarter 2017 Conference
Call Details
Ryerson will host a conference call to discuss fourth quarter
2017 results on Tuesday, March 6, at
10 a.m. Eastern Time. The live online
broadcast will be available on the Company's investor relations
website, ir.ryerson.com. Ryerson will report earnings after the
market closes on Monday, March 5.
DATE:
|
Tuesday, March 6,
2018
|
TIME:
|
10:00 a.m. ET / 9:00
a.m. CT
|
DIAL-IN:
|
833-241-7253
(Domestic) / 647-689-4217 (International)
|
CONFERENCE
ID:
|
5372519
|
An online replay of the call will be posted on the investor
relations website, ir.ryerson.com, and remain available for 90
days.
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, 2016, 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.
Set forth below is a
reconciliation of our anticipated net loss attributable to Ryerson
Holding Corporation to our Adjusted EBITDA and our Adjusted EBITDA,
excluding LIFO expense.
|
|
|
|
|
|
|
Range of
Estimates
|
|
|
(unaudited)
|
|
|
(in
millions)
|
|
|
Low
|
High
|
Net loss attributable
to Ryerson Holding Corporation (Note 1)
|
|
$
(4)
|
$
(2)
|
Interest and other
expense on debt
|
|
23
|
23
|
Benefit from income
taxes (Note 1)
|
|
(4)
|
(2)
|
Depreciation and
amortization expense
|
|
13
|
13
|
EBITDA
|
|
$
28
|
$
32
|
Adjustments
|
|
2
|
3
|
Adjusted
EBITDA
|
|
$
30
|
$
35
|
LIFO
expense
|
|
10
|
7
|
Adjusted EBITDA,
excluding LIFO expense
|
|
$
40
|
$
42
|
|
EBITDA represents net
loss before interest and other expense on debt, benefit from 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, 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, to provide a
means of comparison among our competitors who may not use the same
basis of accounting for inventories. EBITDA, Adjusted EBITDA, and
Adjusted EBITDA, excluding LIFO expense, 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, targets. We also use
EBITDA, Adjusted EBITDA, and Adjusted EBITDA, excluding LIFO
expense, to benchmark our operating performance to that of our
competitors. EBITDA, Adjusted EBITDA, and Adjusted EBITDA,
excluding LIFO expense, 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, is necessarily an indication of
whether cash flow will be sufficient to fund our cash requirements.
Our definitions of EBITDA, Adjusted EBITDA, and Adjusted EBITDA,
excluding LIFO expense, may differ from that of other
companies.
|
|
Note 1:
Estimated fourth quarter 2017 earnings guidance does not include
the impact from any recent federal tax legislation changes in the
United States.
|
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SOURCE Ryerson Holding Corporation