RYI - Earnings call transcript Q2 2024 | Ryerson Holding Corporation

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Operator

Good day, and welcome to the Ryerson Holding Corporation Second Quarter 2024 Conference Call. Today's conference is being recorded. [Operator Instructions] At this time, I'd like to turn the conference over to Mr. Pratham Dear, Manager of Investor Relations. Please go ahead, sir.

Pratham Dear

morning. Good joining Second for Call. XXXX Holding Ryerson you 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 Q&A. Executive will our our Vice of Mike Finance, Vice and President John Orth, Operations; Chain; Beristain, our of joining Jorge for us be Vice President Hamilton, Corporate Supply President

statements forward-looking number within meaning comments uncertainties on implied contain Certain forward-looking These to a call federal by the involve that results statements. laws. those of the securities materially actual this of and from differ the could statements cause risks

Risk the XXXX, our XX-K other XX-Q Factors on the Form These on ended quarterly ended year report June in XX, and to, include, risks are under not annual for but XX, the quarter Form limited Securities report Commission. in XXXX, December for and our Exchange with forth those filings set

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

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

to Eddie. turn over I'll now the call

Edward Lehner

across start operating companies this America Ryerson by and Ryerson us for for of team of facilities a to productive and China. North over environment and recognizing want safe prioritizing our you, thank efforts Pratham, our XXX Thank all I entire joining for you the family and dedicated morning.

we saw service our In metals' overall to by continue countercyclical while navigated industry center compression product commodity that for price the service XXXX, quarter through network shipments of were mix, second decline. center our conditions characterized metals

to long, the bungee further there few convey began going Before fakes are XXXX want and although at important that way, conditions stakeholders head historical in I counter X tooth is that quarter the be getting industry the our this along to it third standards of the had commentary, into my pertains long in by script oscillations insights cord a with to and quarters macro economy, Ryerson. to as cycle

and currently economic particular policy as bright factors overcapacity The around prominent fiscal in in and at stages trends cycle its impacts. multiplier metals, most i.e., looking stainless, counter aluminum later weakness interest secular when as higher-for-longer reassuring industrial rates, and this are slow-to-develop disproportionate well China's in play weakness

back inflation the play XXXX As distortions of supply effects, demand with we recovering operationalize chain CapEx half fatigued and a work post-pandemic producer to combined echoes there business consumers second as in of investment yet fully environment. the to into resultant and that has destocking of peel as are in runout well

have by products performing some When where the best aluminum These stainless commodity X behind go Ryerson this the to music, knocks and the we and steel is past has their carbon the and been of participants the hardest products. chain as value industry Ryerson. overweight By far been years steel industry. two harder segments past MSCI counter relative the Consequently, analyzing product when are hit over products the stainless Ryerson data the aluminum X and over delivering cycle is contrast, years, industry. industry longer such underweight is where

same over aggregate similar Not and and I reasons. in story have shipments over QX shipments are past industry-wide Aluminum over commodity stainless, for for are industry XX%, shipments tell carbon beginning the several QX stainless this of all at XXXX, increased the through we duration. aluminum sheet while months. a industry-wide carbon down regression X.X% by surprisingly, that inventory sheet price look the If XX XX% data down since XXXX XX-month levels interval. actually lines point the out

short-term continued One, term because cyclical we are respect the gain to clear carbon are impacts industry. while stainless we market have we the secular our investments share are franchises where to on underweight trend where make aluminum a abundantly two, bullish and we its transient basis, long opportunity recognizing and with and transactional have to

it As and strong. both prices and demand remains much for secular should outlook as stainless the nonferrous stings term, as aluminum longer-term short rebound in the

noted, closer continue better leverage operating customer more of as demand. as inflection online we investment a we move to Although within investments protracted build and of particularly our quarter industry recent aluminum began and XXXX, and counter in steel and experience point that cycle a in began our has third price in which of to come franchises XXXX, stainless a cycle, our timing the products intersected with the positive

of come. customer and Even a macro value-added for our capabilities Ryerson's improve over service have enhanced years stakeholders experience amidst the the industry with our the investments connected to in centers backdrop, intelligently serve network X create to we past made challenging customers years well a to will better

it We a delivery. back respect e-commerce our give designed to on please at flow conversion investments increased the progress and positive drive. ERP and www.ryerson.com, track and were of generation. -- as more inventory with redesigned Now Ryerson quarter year-over-year improved metrics e-commerce improved post service and made platform about cash second test CapEx let's availability got talk for released Shipments it XXXX. system level our adaptation times, check operationalized, on-time lead out and self-help, optimization through and quarter-over-quarter

our reduction repurchased We value, we for quarter. cost book below XXX,XXX shares and exceeded also targets the

after pressure the stainless index margin we resulted latter selling and quarter. guidance price, carbon, when an of end As will of selling through This for XXXX to towards recessed create order compression in prices and and and activity X decline greater-than-anticipated margins countercyclical decline continue to spot and aluminum quoting replacement encouraging bottoming the much half no a of in in move cyclical cost all sooner falling inventory with inventory QX. persisted April that through prices This margin average a through did as improved model. the commodity we customer a inflection with relative began of on curves QX and and May order rates, costs along communicate average average declines signs to operating

our the cycle inroads and and through move operating of into investment deeper and optimization look toward our and further will costs, cash to the improvements. flow we and generate making operating reduce investment model fixed As QX to positive capital further finishing we year, benchmarks while working manage variable balance

further now discuss pricing that, to over I'll the and Burbach, Mike With turn Officer, environment. Operating Chief the call our demand to

Michael Burbach

Thanks, Eddie, morning, good and everyone.

below quarter, per second price met in ton selling expectations. came billion, volume in of for was average expectations, the During $X.XX our guidance our through which we our of revenue the $X,XXX of resulting yet sales tons, our below XXX,XXX quarter

price Our down product mix. pricing was to ton per X.X% weaker-than-expected due quarter-over-quarter conditions average selling across our

most prices led as felt During our to the quarter, measured prices where commodity decreased carbon in baseline products metals hot-rolled by carbon steel margin acutely coil compression and CRU XX%. for the by pricing was

prices HRC January XX% trending June. perspective, year-to-date from to by decreased a From

the during sequential a experienced both first decreasing prices carbon X%. and product quarter quarter products roughly increases prices this average for second franchises average Additionally, decreasing of with following carbon X.X% sell in the sell year, reversal in and in aluminum aluminum

were Additionally, impacted X.X% prices average selling by in steel. stainless decrease a

ISM contractionary tons increasingly X.X% from indicators Turning of Institute volume higher during PMI U.S. quarter-over-quarter to despite Management's Index XXX,XXX quarter. the or demand was environment. for the Supply Ryerson Managers sales the Purchasing

the prior Center quarter or X volumes months. compared as For American Metals MSCI, the the period, Institute, by by decreased second to X.X% industry North measured Service

same shipments North increased Ryerson's the period, American Over X.X%. by

volume first to North down and followed end This the the XXXX, gas, market volumes oil by industry American volumes For strongest XXXX lines and three noting by HVAC, of carbon was the for Ryerson Ryerson's quarter and with MSCI construction share of product down gains restocking with and equipment, all exhibiting compared Ryerson's X.X% second in half steel the overall stainless increase durables consumer is across driven X.X%. by led selective market growth. were for aluminum.

turn Jim financial third as second I our XXXX for highlights well quarter with the to outlook. will call over And quarter as that,

Jim Claussen

morning, good and everyone. Mike, Thanks,

our Before the third for quarter the In discussing performance for I expectations. to earnings guidance guidance by EPS second $X.XX compared quarter, our exceeded drivers guidance of would our to per share. highlight delivering we the like quarter,

recognized by million million $XX on LIFO our income the to was in a $X Our expectation quarter EPS of charge. compared during driven beat expectations

price commodities declines inventory Our driven quarter. X by to revenue quarter back compression lower half margin of These the and of was than for price declines values all in billion of deflated. primary $X.XX in the the our as led anticipated

which us led below our adjusted generating to EBITDA, million the excluding This range. $XX.X LIFO, quarter, in was decline margin guidance in

In pressure lower carbon addition met met to our conditions acutely selling the felt for volume where pricing stainless average lower products, demand. countercyclical with franchise prices our

margin the contributed quarter operating reduction offset during on program felt our to cost quarter-over-quarter pricing the progress lower pressure While expenses, and benefit. cost the reduction

to sequentially to X% of to compared we third expect volumes Looking down quarter. the be X% XXXX, the to quarter second

million $XX forecast these quarter $X.XX Based to the excluding to down $XX diluted As of price third average of to and in in quarter to selling billion share such, expect of earnings revenues the range be share. on of million range third $X.XX we to the range LIFO, EBITDA for X% with $X.XX the billion X%. we per $X.XX adjusted expectations, per XXXX, in

quarter. $XXX were prior from with We which our company's million quarter. cash million ended million decreased expect increases the The quarter and of third the second quarter, We approximately and million million in total but of liquidity the net $XXX first during $XXX In healthy the flow we $XX million, in second remains million $XX period income quarter. the debt operations. to debt the $XXX million LIFO in respectively, generated global in in from $XXX $XXX of

to business Due range of Xx ABL X.Xx. a above to net lower leading drawdown leverage our for adjusted at ended our over target greater EBITDA the we quarter on the timing our investments, generation,

ABL up our we the needs. can borrowings and nature our on fluctuate where Our our fits based of down business

begin and range to above X.Xx and as a balance healthy and we long-term anticipate long-term net sheet mindful investment complete While leverage. recent of importance net sheet discipline, our of financial cycle continued being our the leverage and near-term a we as balance generating growth fulcrum, balancing cash X.Xx we reaffirm X.Xx with of revenue new central to and assets our our commitment across remain

last help annualizing and XXXX efficiently, for to we order operating Ryerson initiated announced to As cost reduce million million. a quarter, $XX in operate us during reduction $XX expenses we to plan more by

startup of Over duplicative reduction in our and reduction to SG&A a partially the second well over and few achieve to by quarter, we investments driven from workforce. as streamlining were completed the able as expenses related prior expenses quarters the our logistics

$XX expected annualized second can to the achieve now of savings to expenditures, in network invested strategic million $XX the equipment the While of In believe from cost most our automation quarter nonferrous and our we facility the modernization, savings cost we second throughout XXXX, capital million our Shelbyville, productivity. previously million. processing quarter, and around in we expansion fourth to and included to we $XX which increase quarter oil notably annualize Kentucky upgrades infrastructure

capital better expected asset environment are employees. improve customer for working increase we our investments The productivity making operating a and provide experiences, safer utilization, drive to are improve efficiency,

they network and experiences are We excited our better the the very across provide. customer about efforts will modernization

quarter Turning million of quarterly to have in per the dividends. amount. of million share was share million and returned announced the comprised same shareholder in in of and which cash $XX We a $X.X repurchases dividend $X.XXXX third returns, quarter, Ryerson dividend a paid $XX.X

$XX.X in for the share the XXX,XXX during repurchasing in the share authorization. approximately just million we market million $XX ended under with after quarter about quarter, the repurchase repurchases, open As remaining for shares

quarter $XX frame Subsequent to Board our end, approved share to authorization time XXXX. July Ryerson's to the million extended of the April repurchase authorization a increase on XX, Directors and

as to shareholder return shareholder to XXXX, strategy will third maximize to forward as prudently second and overall well evaluate long-term the look allocation capital our opportunities we our continue of half value. quarter As we

With to provide I'll the to on that, further our call second details turn quarter results. over Molly financial

Molly Kannan

morning, higher the average quarter lower lower was everyone. quarter good partially Thank by Ryerson XXXX, driven net than product which XXXX, and you, sales across our of mix prices billion, second of the by reported $X.XX and offset first selling X.X% In of Jim, volumes.

in $X margin XXXX points quarter versus in to LIFO grew the the expense by versus XXXX. to $XX Gross first of quarter prior XX.X%, quarter LIFO during XX the second recorded million the of million attributable income basis of in recorded quarter

decreased average XX sales as as is compression goods the our mix LIFO, quarter selling for contracted products, especially Excluding XX.X% earlier. our of explained from to outpaced and margin a for true gross basis price points carbon This our first sold. cost Mike

operating side, by reductions the general and selling, and administrative personnel, expense $XX.X driven in $XXX the as reduction related University in costs our fixed expenses Illinois decreased million variable reduction On the well a expenses, to to million, integration. Park, X% lower to and quarter-over-quarter start-up related as ERP in or network delivery, center warehousing, our of by related to costs service expenses the

quarter. diluted of net income $X.XX $X.X loss share to attributable was Ryerson per net per in million For of to XXXX, compared the loss to million attributable $X.XX quarter share or of $X.X Ryerson prior and second the diluted

the XXXX quarter LIFO, compares quarter. to in of million EBITDA, adjusted million the second of in achieved $XX.X which Ryerson prior Finally, $XX.X excluding

this, Eddie. with turn back I'll call the And to

Edward Lehner

Counter Thank our important perspective always in forever and our a cycles don't and business, to evaluating it. last our healthy you, is it place maintain industry Molly. when

public asset years XX been million of later, billion portfolio, or Ryerson share, such, negative had approximately book than intangible is we anniversary years As offering Ryerson IPO has initial and public per completed float increased million ago, equity more equity XX had and float public both was of shares. $X When shares XXXX. our Ryerson never our stronger. a book levered happening our August net value, has our $XX and on Xx XX upon XX, XX approximately tangible XX-year is value by

first deck all in stakeholders investor current take the invite as an slides at Ryerson this prospective accomplished kindly quarter's all factual have organization representation a the XX to we a I years. interest several over see look of and to past compelling of

others been at next Park, and for doing our cycle to on ourselves. University to to Steel all long even As X-year the what counter in the Illinois yourself XX firsthand Wire be we cycle an do how segue right years more pays forever things to before join extend you because we to disrupted of investment about a from run, have harvest, and long our to do House can facility XX, it. Disrupting September the a Central cycles eventually see better you I yourself couldn't it emerge & has don't you optimistic perfect to off is counter where invitation you us ourselves bring Open when disrupt last

you e-mail team would like to reach If please out our to attend, Investor Relations or investorinfo@ryerson.com.

him. those and pleasure Mike has XXXX, has all asset April tremendous organization with to by go I served Burbach company's than him After have career more been who X final item to and know Chief and announce the work at questions. a X, of before had his to to been since our years, Mike operational the financial success. industry Ryerson Mike Officer of as end will from the we a as year. has Operating our the and to have be pivotal XX and of retire distinguished missed will position COO

a I've has down He center one and the respected, the come professional over little greats. their friend entire model person and said, Ryerson history will in not Ryerson, partner, He well a use service industry as and always of of dynamic XX-plus all-time And highs could industry. have hand together leader, the lows special and more worked been good is industry the often he role this pillar has years truly a in as as Ryerson. till, as Mike as Mike helping mentor, at a of the go but the been partner they is as and metals within at navigate and a lives Burbach is flows, and just ebbs well. steady we everybody truly

and delighted some and in Mike more transition, the of wish their Anne is with am that spending X time I in retirement. Mike grandkids us I and best everything

process, our will existing succession North senior leadership Mike's distributed As long-term Ryerson's consistent part with and amongst change this planning for Ryerson duties of be organizational team. America

Operator? we look forward that, your with And to questions.

Operator

[Operator BMO question first Katja Instructions] from Markets. We'll take Capital with Jancic our

Katja Jancic

savings cost the program. on Starting

-- targeting? you that quarter, the achieved How $XX million $XX costs attributable is to of million. this you reduced much you're by $XX operating So in or million

Edward Lehner

question. Eddie. give some more detail going you Thanks I'm have go that. your ahead Jim is for to This and on

Jim Claussen

that $XX would lion's the to say Yes. I million. the share attributable is of

However, in that margins is and results year-over-year. also certainly variable lower, which is quarter-over-quarter compensation. given and given earnings

year-over-year So roughly -- that reduction piece million that's is $XX that not comp. roughly included that's variable in million. $X that was And -- in yes,

Edward Lehner

say we that and you're what too, bottoming turn counter of costs. did from costs they those variable through conditions Katja, our down not off, the lot pre-operating would start-up as cycle. this and structure captured seeing, I gets dollars business in do investment a have, of go of that re-org peel we one also is this restructuring, a cycle have cost as declines every

for And freight, and a things opportunities our so where of improve and of between another, and move center to metal network example. service have example, our centers rationalize around IPO to continue lot cost we one we we have move network from we our the service between freight an as on to

forward. we get -- history investment our peel largest So the which as come discussed and this through we a and as cycle, we lot far we more profile in as can reset leverage this length far we cost start at we our go, expense as going to to off as as those back get costs, was

Katja Jancic

$XX the close like of simple close the so we So already minus say if annualize fair $XX correct? a side, already Is that, math, million, that that it you're million it's million. I to -- for to if variable do $XX is to million $X

Edward Lehner

gets the the goes I bottom your amounts to going you're happens cycle, decreases, counter think realize of sort the I comp mean at of what business going if increases asymptotic, point, variable invent variable through in is is where to overall the a right? component be tail some from things to going comp Well, that itself, and network. to -- will, start get are you to our to other bottom to the optimize are going that start is cost going we kick as to out, but

modern opportunity are there our bring we to do consolidations profile. cost have new as mean we we through our some an on capacity network, are to optimize again, I going

our have we through of investment as capacity rationalize going of you're operating see result brought so and new footage square efficiencies phase that we better And that start the we our because to parts to to where certain get second come of a network cycle. online

Katja Jancic

Okay. Maybe -- leverage. Is as above cash flow debt? to that down of mentioned, near to your directed it at probably more stays quickly It's going shifting gears assume to fair the there. to the target is least in paying you be the term, and

Edward Lehner

Yes.

very intelligent operate. generate we me cycle we of part Let how communicate come like in Katja, understand finish operates did reason. to debt we've how stakeholders. really thoughtful counter this industry cash hopefully, and hard and a to through the XX-year retrospective flow, more for answer. And countercyclical the be we cycle. will our we I'd we and that first this take work investment think how our since fall And we as and will we to very -- IPO

we under we us back book to should if shares the our value, then And that's authorization that opportunity a miss. below for compelling very have not buy opportunity

Operator

Capital Samuel question next McKinney with from Markets. our take KeyBanc now We'll

Samuel McKinney

on retirement, Congrats Mike. the

Edward Lehner

you, Or Mike Sam. thank you. Thank should Appreciate it.

Samuel McKinney

I today to color start little digging into wanted savings and by cost the more. that appreciate a I

SAP X of ago, quarter parse helpful you it could published buckets labor, whether be updated months $XX million Looking those $XX discover when savings you if little from million, that at annualized from out logistics, did million $XX conversion, It'd where results your you savings, be first incremental more. a reduction the in the

Jim Claussen

Yes, opportunity multiple more question. logistics, started we've reducing is see, in network say, to I movements Sam, conversion to optimize would material the the great handling. Where ERP really more benefit, from in

to optimize facilities. communicate close to position that touches good make efficiently and able sure network, So opportunities that and more and have inventory and we're being we're more handling continually network we reduce to to throughout customers our seeing in our working

Edward Lehner

let Sam, deeper. bit me little go of a just Yes, kind

you And so good have a visualization.

a through extent the given which at is and of So center. modernization and volume aluminum of the processing in of We that service expansion Shelbyville, primary processing our lot do center. nonferrous stainless

in you've buy relationships can you picture off-line metal to this. are a important that of So the to that rest us. the certain and network, to you're the capacity out if reroute facility, equipment you're new Ryerson metal and part service obviously also of customer maintain If those good and levels vitally expanding because you to got throughout customer putting goes have

term, a And you AX items not in on bought to so network have that. reroute. also freight when that. involved look and layer transient permanent. that's around and cost to term, in moving IPO we go short then you savings doing reroute, centers, service we additional the past again, take But you to things in short the And And optimize our of the get you we as inventory we shuttle, local as it's

through coming going price to is too, an that, market of availability part what from really was the pandemic a And market. and

And come so quarters make to and and see ahead. making, adjustments through which the those pivots well, benefits we're in we'll those as cost need you

Samuel McKinney

the guys reduction quarter, the feeling little half levels I into in remember broadly $XXX That's coming the sequential quarter, appreciate how were very you with of inventory long the back then you move out net a million And you capital view as we helpful. you first inventory of current more and made do I that. second the working year?

Edward Lehner

on the I it saying comments I my information MSCI for sort homework prep look went aluminum some hand of and looked I And doing at and stainless, between differences the carbon. back when and industry teed some Sure. and at months and was I by call, -- the in up

carbon on months. at are are look example, months look hand on for When X.X you at hand still look aluminum it's industry-wide, at when sheet, you you months. So inventories X.X X months, at months right stainless when

stainless still go. have to aluminum how at look you when some that's and all so destocking tensioned, And

levels, certainly has of would that. of And look half destock relative 'XX unwind and you our even and that carbon to stainless and the in time and had aluminum, XXXX. first share When inventory the overbuying excesses better of 'XX, say taking at accumulated the it's that turned I we some

you're through stocks stainless been elevated QX then and has is sure inventory we profile reduction we seeing item what QX without as have come that aluminum in the AX So carrying and more what a making service to focused that our centers excess. on right

Samuel McKinney

And me. then for Okay. last one

the third Looking quarter, previous quarter guidance pricing versus down mix baseline ahead to quarter given second to X% of carbon the third that flat X% higher quarters. versus weaker-than-expected percentage a a featured rolled

Now that quarter, the versus to we're through will this anticipate aluminum a of third you mix stainless carbon month shipments compare second your versus do quarter how quarter? third

Edward Lehner

Yes. investments the -- online. and think what our X relatively up certainly reported, as of months carbon That been on based QX pick has other I that preceded heard July from come volumes you've companies we'll that it. than more continue slower I mean to said,

taking relative believe would given carbon aluminum in all from January stainless through balance $X,XXX weakness and the and have to balance margin over the aluminum over a of on see even up for of least little still from even of basis, And present we'll I a the compression we're the the we'll the although though price, volumes QX relative CRU compared week, those bit so outpace [indiscernible] I'd to expect because at carbon, $XXX for -- present, kind of gone last gone I way sheet to X, we'll do spot as start say, year. prices stainless the year, QX see carbon have margin compression, the but price,

Operator

from next Robotti [Operator with Weber Instructions] We'll our take Alan Advisors. question

Alan Weber

luck. congratulations good again, and Mike,

Michael Burbach

you, Thank Alan.

Alan Weber

the assumptions are shipments? you volumes question forward, what cost in, a talk on going -- So when of about just baking or you terms in savings

Edward Lehner

Sure.

the So [indiscernible] when know of being this you MSCI carbon look don't. year-over-year how being being down and we more and aluminum cycle. last, we counter in as going exactly and we at a to it's see Do long down the X% bottoming

a and really pent-up long cycle historically, at the we're right And believe bottom dampening quarters. demand, that will point, even countercycle so secular X been it's to some of increase. that's is though there's and a I going shipments now. But lot

we the expect increase, market we'd going is they model. us share increase our to volumes of expect as with operationalize, value to competitive investments So of that our value a we make would and better would the fully those more expect investments operating to

come into be go that the as that we we've able as the to realize operating upturn, should that we've cycle and counter lot cycle, as counter cycle. benefits as in we said, we we we'll from leverage to cycle so from pivot of get to a invested And of

Alan Weber

takes some Okay. "cost about I mean then, would greater place, actually because actually, if right? that that that those of savings" you become talk

Edward Lehner

and if point. But into what at 'XX, as at back the a come I'll put get you a curve that capital [indiscernible], mean you look history to look say, mean is append you do expense it. and we'll you bottom. then into working at I I have leverage to and the Yes. growth would say that I when use typically this, even go you off Jim to is we get upturn let get historically, go we go I'd procyclical you an and

a less expense So of every dollar for revenue, what get of incremental is expense we takes lot will that where less it revenue. leverage dollar to of and generate

even So as we incur expense on service though we basis, a nominal to growth. additional to what have as Jim? greater may go into we that an cost for leverage, look for look upturn, we

Alan Weber

Right. And then...

Jim Claussen

Alan. ahead, Go

Alan Weber

the look cash year balance and capital of working thinking are how third Just also? and at about you you unrelated. the term, flow Short quarter, for the when

Edward Lehner

wind with we've of Yes, conditions. been as really as making also up business flow that we a I expect spanned to in that couple generate investments now. years cash cash of And we flow the year to of the the said, will improve a balance lot have line

this cycle. So lot investment of there's since been a we began overlap

those CapEx normalized cycle now which a back flows as through of completing becoming cash to to we $XX And a spend, that about and start first XXXX, of projects lot for so quarter at going wrap of year. as the the of investment we year improve million come half really second to and see the as in up we'll Shelbyville in, next more going much result a said, is operational

Alan Weber

million kind what that? include think in more you that like normal is of a $XX some of is CapEx? still And going Does Shelbyville rate forward

Edward Lehner

think a we depreciation, probably I getting this really letter the return. opportunities replacement may X-year But our is Yes. shareholder a No, rates has particular about this have off in CapEx to minus at a of industry which see of percentage right, internal GAAP X.X% think, or on as largest investment rate coming plus do stack. attractive the that think cycle, of in we I mentioned And been, revenue. I

need we've value get and to and high-quality and we yet, the assets can These haven't up are so time that generate made, from that been integrate assets. cash really We assets most those optimize started flow they them investments cash. commissioned the don't

know that all we understand think I that. and

So will investments will come and get flow as increase they and leverage. come and expense up cash these start we'll cash, will generating operationalize, costs down

Unknown Executive

they're loud. I'm to read from a have a out an that question in we three written interrelated. It's and going So investor question parts,

Edward Lehner

parts. back man, one school to [indiscernible] question XX in

Unknown Executive

customers? What how optimization phase? we been being How Where has most have solved? and the been the are are common impacting in they issues it

Edward Lehner

great a It's question.

Okay.

square it's further Centralia which I whether Service those SAP they the you and let's and -- referenced in of new, mean cycle, fully right? let for is commission projects the University brand minute. through as Center, line come house. optimization So and the assets, was overlapping, that's them new whether it's open phase XXX,XXX Park, so you as complete and those about up in me online are optimization I cut-to-length as getting terms operationalized, projects Dallas, start you feet, the a which it's whether talk obviously

the SAP shareholder this So getting our big network it. in and about differences they letter. Center in the They a becoming are more ERP region Southern are SAP. as talked QX through at systems. in the we in They assimilate fluent We converted Service South That's conversion. to

Shelbyville mature and begin come through when going And that so as to we've we to any that's full start besides through projects we [indiscernible] we optimization optimization we get cycle ones is the normalize. come major through the get into cycle. really as the have And bloom XXXX to and start-ups, announced things on don't the that,

Every how and we use more day use ERP, familiar familiar customers. new fluid out them as service to and most being get how being of goes in we fluid benefit the these in and optimize more by, of assets we that how terms they more

Now to your of X. X question second or part question

churn. say you you churn and I a because we would intervals I negative that went some imagine Again, you center, when this, We through the where certainly we unplug disappear cycle, positive as mean, then reappear. we had -- optimization service have

you So you in Centralia. Seattle and in reappear disappear

a You're hit that. for going take to

disappear you If reappear to University going you're from hit you at [indiscernible] and for that. a take Park,

you're major That and for back gone take ahead months, accounts do churn If Shelbyville, last a we've in said, that. expansion to you added more positive lost. go we've going the hit XX a to than meaning over we've

our service lead get levels a good we our that's better, So as better better. as as generating and our delivery churn positive on-time get gets times sign. And continue to expect

I you cause talked by your analysis and is through solve we okay, your root you going going common levels. on cycle The they're about delivery, through how of are you to service what's improve one how at the think to being way identify, look and So network them issues we how solved. them investment improve deep are on-time of every most what are doing I've and going single

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Operator

further I'd no It back or for Mr. questions. comments. Lehner telephone closing any to the appears additional turn like over are there to conference

Edward Lehner

see your Ryerson, you lot. September your see really Open We'll We at appreciate University definitely e-commerce and a Park in come House Thanks try quarter. at next on interest a www.ryerson.com. give XX support and us

Operator

does We participation. you that again, all your thank once for conference. today's conclude And

You disconnect. may now

Ryerson Holding (RYI) 31 Jul 242024 Q2 Earnings call transcript