NYSE$RYZ

Ryerson Holding Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Ryerson's performance was characterized by excellent cash flow generation and a strengthened balance sheet amidst the continuing pandemic.

Ryerson Holding Corporation reported revenues of $831.5 million, an increase of 7.7 percent compared to the second quarter of 2020. The company generated $120.6 million in cash flow from operations and reduced net debt by over $100 million to $692 million. Loss per diluted share was $1.05, but adjusted earnings per diluted share was $0.31 excluding one-time non-recurring and non-operating items.

  • Revenues increased 8 percent sequentially while operating expenses increased 1 percent sequentially.
  • Inventory turns improved by 17.4 days, or 20 percent sequentially, and by 8.7 days or by 11 percent year-over-year.
  • Generated $121 million in cash flow from operations, up from $103 million in the second quarter.
  • Reduced net debt by over $100 million to $692 million as of September 30th, again achieving our lowest net debt level in over 10 years.

Headline financials

Total Revenue

$832M

Previous: $1.1B-24.7%
EPS (adj)

$0.31

Previous: $0.24+29.2%
Tons shipped

489.0K

Previous: 598.0K-18.2%
Average selling price/ton

$1.7K

No prior period
Gross margin

18.7%

No prior period
Net debt

$692M

No prior period
Capital Expenditures

-$17.9M

Previous: -$32.5M+44.9%
Free Cash Flow

-$57.8M

Previous: -$22.4M-158.0%
Net Income

-$39.9M

Previous: $10.1M-495.0%
Operating Income

$30.3M

Previous: $40M-24.3%
Gross Profit

$156M

Previous: $204M-23.7%
Cash & Equivalents

$122M

Previous: $21.8M+458.7%
Total Assets

$1.84B

Previous: $2.12B-13.3%
Stock-Based Comp

$400K

Previous: $800K-50.0%

Revenue & EPS history

Ryerson · Revenue · Quarterly

$832M

Q3 2020-24.7%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Ryerson · $817M total across 3 segments · Q3 2020

  • Carbon Steel
    $411M-27.6%
  • Stainless Steel
    $212M-18.5%
  • Aluminum
    $194M-24.8%

Forward guidance

Given the many pandemic induced uncertainties expected to continue through the balance of the year, the Company will not provide guidance for the fourth quarter ending December 31, 2020.

Tailwinds

  • Through the first several weeks of the fourth quarter, per day trends in revenue are moving higher relative to the third quarter
  • Through the first several weeks of the fourth quarter, per day trends in gross margin are moving higher relative to the third quarter
  • Through the first several weeks of the fourth quarter, per day trends in average selling prices are moving higher relative to the third quarter
  • Through the first several weeks of the fourth quarter, per day trends in volumes are moving higher relative to the third quarter
  • Industrial metal commodity price drivers have improved
  • Restocking driven demand across a greater number of end markets.

Headwinds

  • Pandemic induced uncertainties expected to continue through the balance of the year.

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 Q3 2020

Historical avgQ3 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro