NYSE$RYZ

Ryerson Holding Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Ryerson's financial performance declined in Q2 2020 due to the impact of the COVID-19 pandemic, but the company outperformed industry peers and reduced net debt.

Ryerson reported a decrease in revenue and a net loss for Q2 2020 due to the COVID-19 pandemic. However, the company outperformed industry peers in terms of volume contraction, generated significant cash flow from operations, and reduced net debt to its lowest level in ten years. Ryerson also successfully refinanced its Senior Secured Notes, lowering expected annual cash interest expense.

  • Ryerson's net debt decreased by $100 million to $793 million, the lowest level in ten years.
  • The company refinanced Senior Secured Notes, which is expected to decrease annual cash interest expense by approximately $16 million.
  • Ryerson generated $103 million in cash flow from operations.
  • Adjusted EBITDA, excluding LIFO, was $21 million, outperforming the industry as measured by the Metals Service Center Institute (MSCI).

Headline financials

Total Revenue

$772M

Previous: $1.2B-35.9%
EPS (adj)

-$0.64

Previous: $0.45-242.2%
Tons shipped

462

Previous: 623-25.8%
Net debt

$793M

Previous: $1.09B-27.4%
Capital Expenditures

-$11.8M

Previous: -$23.4M+49.6%
Free Cash Flow

-$37.4M

Previous: -$7M-434.3%
Net Income

-$25.6M

Previous: $16.4M-256.1%
Operating Income

-$10.6M

Previous: $46.1M-123.0%
Gross Profit

$116M

Previous: $212M-45.5%
Cash & Equivalents

$99.9M

Previous: $22.8M+338.2%
Total Assets

$1.85B

Previous: $2.2B-15.8%
Stock-Based Comp

$400K

Previous: $800K-50.0%

Revenue & EPS history

Ryerson · Revenue · Quarterly

$772M

Q2 2020-35.9%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Ryerson · $758M total across 3 segments · Q2 2020

  • Carbon Steel
    $402M-36.6%
  • Stainless Steel
    $197M-29.4%
  • Aluminum
    $159M-42.0%

Forward guidance

The Company expects the third quarter to be impacted by continued COVID-19 pandemic-induced economic stresses. Due to the persisting macroeconomic uncertainty stemming from the COVID-19 pandemic and overall lack of visibility into future demand trends and market conditions in the end-markets in which Ryerson operates, the Company will not provide guidance for the third quarter ending September 30, 2020.

Tailwinds

  • Favorable trends in average selling prices.
  • Increasing gross margins excluding LIFO.
  • Shipments are trending upwards.
  • Bookings are trending upwards.
  • Demand conditions continue to see incremental improvement in the majority of Ryerson’s end-markets.

Headwinds

  • Continued COVID-19 pandemic-induced economic stresses.
  • Persisting macroeconomic uncertainty stemming from the COVID-19 pandemic.
  • Lack of visibility into future demand trends.
  • Lack of visibility into market conditions in the end-markets.
  • The Company will not provide guidance for the third quarter ending September 30, 2020.

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 Q2 2020

Historical avgQ2 2020

-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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