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Dec 31, 2020
Ryerson Q4 2020 Earnings Report
Ryerson reported results with revenue increase and adjusted loss per share.
Key Takeaways
Ryerson reported a revenue increase of 2.6% sequentially, driven by robust metals pricing and recovering demand. However, the company experienced a net loss of $16.7 million, or $0.44 per diluted share, and an adjusted net loss of $6.6 million, or $0.17 per diluted share.
Successfully executed pandemic response plan.
Redeemed $50 million in Senior Secured Notes, reducing net debt to $679 million.
Gross margin excl. LIFO expanded to 19.3%, up 260 bps quarter-over-quarter.
Cash conversion cycle decreased to 62 days.
Revenue by Segment
Forward Guidance
Ryerson anticipates first quarter 2021 revenues of $1.08 billion to $1.10 billion driven by sequential average selling prices growth of 13 to 15 percent and shipment growth of 11 to 13 percent. LIFO expense in the first quarter is expected to be in the range of $49 to $53 million as replacement costs continue to increase relative to average inventory costs. Given these expectations, Adjusted EBITDA, excluding LIFO is expected to be in the range of $102 to $106 million and earnings per diluted share are expected to be in the range of $0.81 to $0.92.
Positive Outlook
- Improving demand amidst recovery expectations
- Intensifying tightness in the supply environment
- Notable price appreciation across all three of Ryerson’s primary commodity bellwethers
- First quarter 2021 revenues of $1.08 billion to $1.10 billion
- Sequential average selling prices growth of 13 to 15 percent
Challenges Ahead
- Pandemic driven uncertainties persist
- LIFO expense in the first quarter is expected to be in the range of $49 to $53 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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