NYSE$RYZ

Ryerson Holding Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Ryerson reported strong first quarter results driven by asset management and expense leverage.

Ryerson Holding Corporation reported first quarter revenues of $1.15 billion, a 13.6% increase compared to the year-ago period. The company achieved net income attributable to Ryerson Holding Corporation of $25.3 million, or $0.66 per diluted share, and Adjusted EBITDA, excluding LIFO of $123.5 million.

  • Generated first quarter revenues of $1.15 billion, 13.6% higher than the year-ago period.
  • Achieved a cash conversion cycle of 53 days, compared to 77 days for the first quarter of 2020.
  • Realized expense leverage as warehousing, delivery, selling, general and administrative expenses as a percentage of sales decreased by 240 bps sequentially.
  • Generated first quarter earnings per diluted share of $0.66, or adjusted earnings per diluted share of $0.26 excluding non-recurring items.

Headline financials

Total Revenue

$1.15B

Previous: $1.01B+13.6%
EPS (adj)

$0.26

Previous: $0.41-36.6%
Cash conversion cycle (days)

53

No prior period
Capital Expenditures

-$6.5M

Previous: -$6.9M+5.8%
Free Cash Flow

$18.8M

Previous: $9.5M+97.9%
Net Income

$25.3M

Previous: $16.4M+54.3%
Operating Income

$46.4M

Previous: $40.1M+15.7%
Gross Profit

$198M

Previous: $196M+1.1%
Cash & Equivalents

$43.3M

Previous: $188M-77.0%
Total Assets

$1.99B

Previous: $2.22B-10.5%
Stock-Based Comp

$1.6M

Previous: $600K+166.7%

Revenue & EPS history

Ryerson · Revenue · Quarterly

$1.15B

Q1 2021+13.6%vs Q1 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Ryerson · $1.13B total across 3 segments · Q1 2021

  • Carbon Steel
    $587M+14.9%
  • Stainless Steel
    $302M+14.8%
  • Aluminum
    $241M+9.5%

Forward guidance

Ryerson anticipates second quarter 2021 revenues in the range of $1.32 billion to $1.34 billion driven by sequential average selling prices growth of 12 to 14 percent and shipment growth of 1 to 3 percent. LIFO expense in the second quarter is expected to be in the range of $74 to $78 million as average inventory costs continue to rise. Therefore, Adjusted EBITDA, excluding LIFO is expected to be in the range of $131 to $135 million and earnings per diluted share are expected to be in the range of $0.49 to $0.60.

Tailwinds

  • Demand fundamentals have continued to improve.
  • Supply-side constraints remain.
  • Price durability in all three of Ryerson’s primary commodities.
  • Sequential average selling prices growth of 12 to 14 percent is expected.
  • Shipment growth of 1 to 3 percent is anticipated.

Headwinds

  • Pandemic driven uncertainties persist.
  • LIFO expense in the second quarter is expected to be in the range of $74 to $78 million.
  • Average inventory costs continue to rise.
  • Unspecified adjustments impacting Adjusted EBITDA.
  • Potential risks and challenges presented by the COVID-19 pandemic.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-1.6%

Avg return

Earnings day

-3.0%

Avg return

5 days after

+2.3%

Avg return

30 days after

40%

19 / 47 earnings

Positive

+35.2%

Q1 2015

Best reaction

-26.6%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.5%-15.3%-4.0%
Q4 2025+17.5%-6.7%-20.7%
Q3 2025-6.6%-11.2%-2.8%
Q1 2025-14.8%-9.6%-11.2%
Q4 2024+5.9%+12.7%-0.3%
Q3 2024-2.7%-5.0%+12.7%
Q2 2024-5.9%-19.4%-21.2%
Q1 2024-19.4%-25.7%-24.8%
Q4 2023-6.2%+1.4%+11.0%
Q3 2023+6.6%+6.3%+11.9%
Q2 2023-15.0%-28.1%-27.4%
Q1 2023+1.9%-8.7%-10.0%
Q4 2022-3.9%-8.5%-10.9%
Q3 2022-26.6%-21.4%-8.7%
Q2 2022-1.2%-1.8%+5.6%
Q1 2022-11.6%-14.7%-19.4%
Q4 2021-8.1%+7.5%+57.8%
Q3 2021+1.8%+9.6%-9.8%
Q2 2021+18.6%+24.9%+55.6%
Q1 2021+3.9%+2.3%+0.8%
Q4 2020-15.0%-11.7%+13.0%
Q3 2020+12.1%+13.9%+56.8%
Q2 2020+2.4%-1.4%-2.6%
Q1 2020+2.5%+1.8%+45.8%
Q4 2019+7.9%-6.8%-50.3%
Q3 2019-3.8%+1.6%+20.1%
Q2 2019-7.4%-9.7%-8.3%
Q1 2019+13.3%+25.0%-10.8%
Q4 2018-7.0%+1.7%+12.7%
Q3 2018-6.4%+1.1%-10.8%
Q2 2018-6.9%+0.0%-10.0%
Q1 2018+11.7%+17.9%+29.6%
Q4 2017-8.8%-3.4%-18.6%
Q3 2017-0.6%-0.6%+2.8%
Q2 2017-0.6%-4.1%+0.6%
Q1 2017-20.9%-25.5%-34.2%
Q4 2016+8.9%+24.1%+31.9%
Q3 2016-14.9%-9.5%+46.8%
Q2 2016-10.7%-20.2%-10.8%
Q1 2016+8.4%
Q4 2015-5.5%
Q3 2015-5.4%
Q2 2015+12.6%
Q1 2015+35.2%
Q4 2014+3.0%
Q3 2014-16.9%
Q4 2013-0.4%
Q1 2014
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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