Ryerson Holding Corporation · Q3 2022 earnings

Briefing

Ryerson reported strong operating cash flow generation and a sequential reduction in debt, alongside an increase in the book value of equity.

Ryerson reported Q3 2022 results with a diluted EPS of $1.46 on $1.54 billion in revenue. The company generated $151.6 million in operating cash flow and $124.0 million in free cash flow, while also redeeming the final $50 million outstanding balance of senior secured notes. Ryerson reduced debt to $477 million and net debt to $426 million and increased book value of equity to $893 million.

• Diluted EPS was $1.46 on $1.54 billion of revenue.
• Net Income was $55.1 million and Adjusted EBITDA, excluding LIFO, was $78.5 million.
• Operating Cash Flow was $151.6 million and Free Cash Flow was $124.0 million.
• The final $50 million outstanding balance of 8.50% senior secured notes due 2028 was redeemed.

Headline financials

Revenue & EPS history

Ryerson expects counter-cyclical business conditions to continue through the fourth quarter of 2022. Ryerson anticipates fourth quarter 2022 revenues in the range of $1.25 billion to $1.30 billion, with a sequential average selling price decrease of 7% to 11%, and a shipment volume decrease of 8% to 10%. LIFO income in the fourth quarter of 2022 is expected to be $20 million. We expect adjusted EBITDA, excluding LIFO in the range of $40 million to $44 million and earnings per diluted share in the range of $0.70 to $0.78.