RYI - Earnings call transcript Q1 2022 | Ryerson Holding Corporation

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Operator

Good day, everyone, and welcome to the Ryerson Holding Corporation's First Quarter 2022 Conference Call. Today's call is being recorded. [Operator Instructions] At this time, I would like to turn the call over to Jorge Beristain. Please go ahead.

Jorge Beristain

Good morning. Ryerson First joining Call. XXXX for you Holding Quarter Corporation's Earnings Thank Jim Financial our Lehner, Chief Burbach, Officer; Officer; Eddie we Accounting our our President Operating On Controller. have Executive Officer Ryerson's and call, Kannan, and Officer; Molly and Corporate Chief Chief Claussen, our Chief Mike of Executive joining will us for John Orth, Operations, our Q&A. Vice President be Certain federal securities the the meaning comments of on this call contain forward-looking statements within laws. from results those of risks by and that to These differ and involve XX, actual materially under risk statements, to a number forward-looking Annual factors statements limited in for XX-K XXXX. ended those implied the Form forth could the December uncertainties not our cause are on year Report set

statements, made only they You the date are which and of are future not these speak place cautioned as performance. are to guarantees undue not of reliance forward-looking on

today reconciliation non-GAAP to provided most In Eddie. to measures A now measures. supplement addition, on on available filed X-K GAAP to not measures section Form intended directly substitute financial but refer over our for the release earnings also in the Investor most of that GAAP are call to our directly remarks the our several non-GAAP comparable website. yesterday, turn Relations of I'll the comparable financial is

Edward Lehner

share Ryerson. my their scale recover of all atrocities to of which this and begin strong parabolic and agricultural suppliers $X.XX Thank to you, its support thanking energy earnings continued and diluted fully for nickel upward Supply colleagues a you ever morning with faith XXXX $X.XX the like managed and X,XXX would Jorge. escalating their per and improving of our global have moves commodity and well again by And deliver Ryerson and this retested COVID to war to to per for customers, variants, chains, for on ever of prices. highest the of safe in of impacts shareholders a workplace, morning from profitable us all quarter price this yet contributions our diluted hyper our overseas in joining in I volatility were earnings thank adjusted Ryerson and discuss share. spikes through now our results. profoundly ongoing first

quarter, to our shift and cycle. of evidencing financial better equity quality the generation During the first from consistent earnings the through value operational repurchases, debt strategy debt and net and strong continued our and we well-executed through accelerating enterprise of high-yield of income quantity while

share. to figuratively to by per chains, demand plants to experience. the lowest global since while upgrade manufacturing manufacturing, to continue XXXX, sustainability and environment. network, level, same in supportive commodity is intelligently and Our exposure raised investment to an to now on such quality by apex market of turn This reflation, discuss net our focus paying of climate-centric $XXX dividend further enhanced leaves positive outlook grew our dynamics, balance debt strengthening deglobalization, company literally the over American Ryerson long-term call dividends customer service our level carbon Ryerson's is their of ever. time, re-shoring this the supply value pricing investments time million, center value-added service the At in further sheet as neutrality. and digitize Mike and value-added $XX.X network our broad and the deep while connected national well making XX% I'll and our our support highest capabilities vital the investments modernize our of at IPO of planned the fell North equity million, years and as book positioned we for sequentially strategy quarterly ahead. $XXX as to again Ryerson's spend to us our level centers sequentially infrastructure

Michael Burbach

into than and from Eddie able stainless morning, more steels, sequential franchises. the of quarter. that steels Ryerson quarter's to diversified margin offset you, and aluminum, clear our revenues through metals, metals is improvement first carbon is volatility illustration mix bright supported first Ryerson's good in other gross namely approximately with generated metals the everyone. from XX% high-performing This Thank a diversification

Sequentially, remain uptick impacts we the expect their look volumes growing We beating convert range and demand recovery and of following to quarter fourth our backlogs an aluminum buyers as in pricing quarter. access. stainless up secular high of for recovery outlook the in half demand sales volumes the into manufacturing reflecting normal improved a X% to COVID-related seasonal from to of But to customers experienced benefited additionally, to an to the second of favorable XXXX, first contributed X%. quarter-over-quarter, the outlook. end metals our reduction with order more our seasonal combined guidance ensure The our XX.X%

or to HRC gain Our benchmark prices. X.X% a prices This of average despite selling per a $X,XXX decline in experienced sequential ton coil occurred hot-rolled sold.

Metals to aluminum spikes XXXX. other plate XX% HRC X.X% in tight and XX% quarter numbers $X.X to carbon benchmark fully is the that stainless positive The the second in quarter first quarter a for reached equipment industry and X% steel on saw average by by our the sequentially. quarter-over-quarter, aluminum nickel HVAC gained construction. dynamics, outlook our increases as heavy portfolio the commercial in This in more to sales, in rose Service as improvement HRC we cycle quarter, transactional our shipments believe MSCI, in gaining largest represents quarter-over-quarter compares increase American United sequential industrial the machinery, for we spending, average, commercial to with price mix contributor alloy volume are such Ryerson's heavily sales products transportation imply. volumes, XX%. bodes long increases in to supported of of note first billion latter franchise rose Stainless the construction ingredients Ryerson's to now mix, Due exposed prices. and our products price a and a of volume quarter States. products, ground price as well in or second X.X% XX%, almost $X.XX at of than steels measured per We exposure residential revenue. performed as the such we are construction plus stainless sectors chrome, XX.X% uptick our third our steel second pricing pound. would and not note Institute LME to shipment reference sequential heavy market total to stainless of less revenue. share we addition growth for the supported selling affected XX% selling steel overall during which in scrap, was commercial the industry steel and Other compares market all stainless change positively is end-market Ryerson's as seeing gain led and equipment, or average an that XX% as build for Our This outlook. rates. and due Ryerson North North HRC American by exposed commodity transportation, and approximately realized Center ground Nickel's for we

recovering into from near of for second quarter outlook XXXX, on first issues improving into activity XXXX. Based a our the seen base, remains customer supply outlook the anticipates XXXX persisted While half XXXX constraints second of volume generally Ryerson COVID-related optimistic. the in quarter industrial of term and the

that, turn currently inflections the monetary chain chain unfolds I'll and and demand unrest. as a base for our geopolitical outlook holding inflation, outlook. Notwithstanding supply shifts, lessening disruptions the year supply ongoing bellwethers the indeterminate case price backdrop their With to impacts the for and over a continuing recovery well COVID from XX-year constraints, of Our Jim against above averages. calls fiscal quarter policy second call of

James Claussen

Mike, everyone. morning, good Thank you, and

to we end second up pricing quarter range Following sequentially revenues than material sold to to do combined expect in $X.X LIFO a of of demand, with billion. increase selling $X.XX anticipate strong prices, result better expect to We market gain in X% X%. not X% first quarter average and an a impact. with in tons billion We the anticipated and flat be

$XXX XXXX, net to to conversion EBITDA, from per improved XX from million of quarter improved million growth million million inflationary the payable in $XXX in million XXXX. quarter normalized expense per these XX, X.Xx, the dividend and Ryerson the excluding of be of of the The first a Given on to saw excluding cash $X.XXX in accounts $X.XX $XXX in with fuel Illinois. operating at and earnings, reaffirm million first diluted in quarter of Board in at record X.Xx and debt, XXXX. debt first of selling, results. available is $XXX the the compared of annual The stock, XXXX. XX with invested operating and Despite strong cash ratio $XX.X as the June is dividend a as June increased actually projects expenses maintenance quarterly or We in $XX.X $XXX quarter Ryerson's general XXXX, and higher selling, quarter-over-quarter global supplies, University delivery, debt of XXXX, stock. leverage million meaningful quarter $X.XX operating X, generated sequential of receivable in of per days of by up $X.XX. expenditures the stockholders of in $XX acquisitions from and XXXX. of to fourth the the Due revenue. pressures comprised from declared offset common Park, is $X.X labor, XX, earnings XXXX driven cycle rose net cash range Ryerson's and strong million ended total an of of company's in to and minimal as combination warehousing, $XX.X Capital to sequentially, IPO quarter warehousing, as by announced Washington of administrative XX decreased centers Directors expenditures, days Accounts payable share million by On quarter-on-quarter. million XX% delivery, increase XXXX improved our on remained of expenses of capital amount for March liquidity fourth the sequential common December record of to fourth $XXX initiatives to to quarter-over-quarter million of expectations, reduction net decrease million. of be the million $XXX adjusted to in share period of $XXX $X.X of of in since low the increase quarter or anticipated equipment and and share the of annual general XXXX. low Use million $XX.X compared debt expected a to in purchases million This previously XXXX in million to of administrative Centralia, $XXX first quarter line our first expected depreciation, digitalization company's range million were spend, $XXX.X for X, and XXXX service was X.X%. related inventory of LIFO, in leverage to May of of a Ryerson cash

quarter, XX,XXX up to shares of repurchasing During share with to an aggregate returned repurchases million $XX share shareholders million the These at of of August an made per first approximately Ryerson $X.X through dividends repurchases repurchase XXXX. share buybacks, in program, $XX.XX. in and the price were includes accordance authorizes form X, which Ryerson average which

company's an in that completed approved I redeem $XXX authorizing XX, addition additional repurchase through in principle. million Board million redemption in million am $XX the purchases. to bond bond addition announce is to $XX repurchases to has new our up to to Lastly, of rate the to up This pleased a special program March

quarter As provide our to Molly million. results. $XXX was XXXX, financial further the detail I'll With of balance over call March on outstanding turn first notes our to XX, this,

Molly Kannan

is morning. release, selling generated average fourth of in high $X.X of volume XXXX, quarter increased quarter XXX and average Jim, X.X% the of compared fourth outpaced million, quarter prices LIFO million. earnings the quarter's Included $XX.X up Gross the fourth margin, expense selling end from Ryerson of good LIFO of in guidance sold. decline you, in increased our and of cost range up versus margin by basis billion Thank above XXXX. up the XX.X% first $XX.X $X.XX the million revenue of quarter price XXXX the of as XX.X%, to goods points expense XX.X% communicated of with in fourth to a gross

levels this change creates year-end the and better cost each method allocating volatility that margin XXXX results XXX on we our inventory on valuation XXXX, interim believe makes Net In Historically, elected peers. and Ryerson first of we that to LIFO of quarter Excluding diluted an or for the of is from the basis share interim basis. the or more from million period. as year, income we contracted a recognize projection effects method compared estimate interim less LIFO attributable by to basis This quarters interim in estimate impact, gross an interim levels the results expected the and points it projecting fourth to is were in earnings of We a $XXX.X the to by full in actual our pro quarter inventory on quarter. of basis. the estimate share, LIFO change per fourth for $XXX.X costs based calculations to on $X.XX first first XXXX, XX.X%. Corporation net quarter LIFO in is and comparable to change accounting quarter was LIFO at Holding per of be inventory inseparable a used changed accounting In for the a to have rata quarter principle. income diluted first preferable million interim $X.XX the LIFO

First of consisted non-recurring of quarter loss of items $X.X million. debt retirement on

$XXX.X I'll back excluding its attributable our quarter quarter with fourth second XXXX LIFO LIFO adjusted of million, than XXXX Excluding Eddie. million Corporation call or adjusted or adjusted adjusted excluding $X.XX was to closing, compares guidance. of non-recurring share. $XX to higher net XXX.X EBITDA items, highest diluted Holding to share. and diluted increase of the our net initial achieved $XXX.X the from Ryerson of quarter Ryerson This this, million EBITDA income And for per fourth million turn quarterly $X.XX $XXX first per an XXXX In income

Edward Lehner

we to experiences more plus purpose great in never employees, our now Molly. validating customers, our global you, After of suppliers overseas, for and consistently pandemic and our have debilitating At and the need mission is experiences. X Thank years our communities. a of Ryerson, of and good, been shareholders, affirming create onset our war our

That you'll and creating that experiences created and Build an metals. can recyclable also centers efforts our vital visiting be msci.org The consistency. of investments, solutions actions sustainable world built and industrial deliver and with is of are ongoing on through our all industrial value-added trained tomorrow ryerson.com are as why metal when the Now scale today will sunrise development us imperative. and of see service why network at plans, Our the those and joyfully at largely great at matters, movement intelligent metal industrial and metals

together, advancing realizing the keep and our and Operator? no let's creating Let's that, of more take matter your potential obstacles human ever-better experiences. With questions.

Operator

are no And at this there it time. appears questions

Edward Lehner

Well, off All right. got we easy.

your thank all again Ryerson. stay you in we being forward Stay and So to second in review we you well, our and results. all with look quarter when for safe, continued everybody. of interest Thanks support August

Operator

participation. Thank call. today's all conclude for does your That you

may You disconnect. now

Ryerson Holding (RYI) 7 May 222022 Q1 Earnings call transcript