Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Ryerson's Q1 2023 net sales decreased to **$1.41 billion** with net income of **$47.5 million**, while diluted EPS fell to **$1.27** and total assets increased to **$2.40 billion** [Condensed Consolidated Statements of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q1 2023 vs Q1 2022 Performance | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $1,406.1 | $1,748.8 | -19.6% | | Gross Profit | $264.2 | $410.1 | -35.6% | | Operating Profit | $70.0 | $234.8 | -70.2% | | Net Income | $47.5 | $163.8 | -71.0% | | Diluted EPS | $1.27 | $4.17 | -69.5% | [Condensed Consolidated Statements of Cash Flows](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (Three Months Ended March 31) | Cash Flow Activity | 2023 (in millions) | 2022 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $80.4 | $82.5 | | Net cash used in investing activities | $(66.7) | $(20.8) | | Net cash used in financing activities | $(9.9) | $(68.1) | | Net change in cash | $4.5 | $(6.6) | - Investing activities increased significantly in Q1 2023, driven by **$38.9 million** for acquisitions and **$27.8 million** in capital expenditures, compared to **$3.0 million** and **$18.8 million** respectively in Q1 2022[16](index=16&type=chunk) - Financing activities in Q1 2023 included **$53.2 million** in share repurchases, a substantial increase from **$0.5 million** in Q1 2022. Debt repayment was minimal at **$0.4 million** compared to **$68.8 million** in the prior-year period[16](index=16&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary | Metric (in millions) | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | $1,456.5 | $1,441.6 | | Total Assets | $2,401.5 | $2,334.3 | | Total Current Liabilities | $665.4 | $619.2 | | Long-term Debt | $391.1 | $361.2 | | Total Liabilities | $1,520.5 | $1,441.3 | | Total Equity | $881.0 | $893.0 | - Inventories decreased to **$710.7 million** as of March 31, 2023, from **$798.5 million** at the end of 2022[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - On March 1, 2023, JT Ryerson acquired BLP Holdings, LLC for **$38.5 million**, adding complex fabrication services such as saw cutting, machining, and water jet cutting[32](index=32&type=chunk) - On February 28, 2023, Ryerson Holding repurchased **1,513,420 shares** of its common stock from Platinum Equity for **$53.0 million**. Concurrently, Platinum sold **2,486,580 shares** in a secondary offering, reducing its ownership from approximately **43% to 33%**[20](index=20&type=chunk)[66](index=66&type=chunk) - Subsequent to the quarter end, on May 1, 2023, the Board of Directors increased the share repurchase authorization to **$100.0 million** and extended it to April 2025. A quarterly dividend of **$0.18 per share** was also declared[83](index=83&type=chunk)[84](index=84&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2023 revenue declined **19.6%** due to lower prices and volumes, gross margin contracted to **18.8%**, operating expenses rose **10.8%**, while operating cash flow was **$80.4 million** and total liquidity remained strong at **$856 million** [Industry and Operating Trends](index=19&type=section&id=Industry%20and%20Operating%20Trends) - The metals service center industry experienced cyclical volatility in Q1 2023. Ryerson's average selling prices were **18.2% lower** than Q1 2022, attributed to a less constrained commodity pricing environment compared to the prior year's surge[91](index=91&type=chunk) - Key industry indicators like the ISM Purchasing Managers' Index (PMI) showed contraction in factory activity during Q1 2023[92](index=92&type=chunk) - Ryerson's North American volumes decreased by **0.9% YoY**, underperforming the Metal Service Center Institute's reported industry-wide volume increase of **5.5%** for the same period[93](index=93&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q1 2023 vs Q1 2022 Operational Metrics | Metric | Q1 2023 | Q1 2022 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,406.1M | $1,748.8M | -19.6% | | Tons Sold (thousands) | 519 | 528 | -1.7% | | Avg. Selling Price/Ton | $2,709 | $3,312 | -18.2% | | Gross Profit | $264.2M | $410.1M | -35.6% | | Gross Margin | 18.8% | 23.5% | -470 bps | | Operating Profit | $70.0M | $234.8M | -70.2% | - Warehousing, delivery, selling, general, and administrative expenses increased by **$18.9 million (10.8%) YoY**, primarily due to expenses from recent acquisitions (**$6.1 million**), higher salaries (**$4.3 million**), and increased operating costs (**$3.6 million**)[115](index=115&type=chunk)[116](index=116&type=chunk) - Interest expense decreased by **26.2%** to **$7.6 million** due to the retirement of the **8.50%** senior secured notes in 2022, partially offset by higher borrowings and rates on the revolving credit facility[118](index=118&type=chunk) [Liquidity and Cash Flows](index=25&type=section&id=Liquidity%20and%20Cash%20Flows) Liquidity Position | Metric (in millions) | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $43.7 | $39.2 | | Total Debt | $395.1 | $367.0 | | Net Debt | $351.4 | $327.8 | | Total Liquidity | $856 | $909 | - Net cash from operating activities was **$80.4 million**, driven by a decrease in inventory levels, which offset an increase in accounts receivable[125](index=125&type=chunk) - Cash used in investing activities was **$66.7 million**, mainly for the **$38.5 million** acquisition of BLP Holdings, LLC and **$27.8 million** in capital expenditures[126](index=126&type=chunk) - Cash used in financing activities was **$9.9 million**, reflecting **$53.2 million** in share repurchases and **$6.0 million** in dividends, funded by a net increase of **$28.3 million** in short-term borrowings[127](index=127&type=chunk) [Capital Resources and Material Cash Requirements](index=27&type=section&id=Capital%20Resources%20and%20Material%20Cash%20Requirements) - The company expects to make principal payments of approximately **$400.8 million** to satisfy debt obligations, primarily the **$395.0 million** for the Ryerson Credit Facility due in 2027[133](index=133&type=chunk) - Future lease payments are estimated at **$320 million**, with **$40 million** due over the next 12 months[135](index=135&type=chunk) - As of March 31, 2023, the company had outstanding purchase obligations of approximately **$25.9 million** expiring within a year[136](index=136&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include interest rates, foreign currency, and commodity prices, with **99%** of debt variable-rate; a **1%** interest rate hike would increase Q1 2023 interest expense by **$1.1 million** - A hypothetical **1%** increase in interest rates on variable debt would have increased interest expense for Q1 2023 by approximately **$1.1 million**[140](index=140&type=chunk) - The company held foreign currency contracts with a notional amount of **$3.1 million** and various commodity swap contracts, including **28,986 tons** of hot roll coil and **19,228 tons** of aluminum[141](index=141&type=chunk)[145](index=145&type=chunk) - A hypothetical **10%** change in commodity prices would impact the fair value of commodity derivative contracts by **$1.7 million** as of March 31, 2023[146](index=146&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal controls over financial reporting during the quarter - Based on an evaluation as of the end of the period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2023[148](index=148&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter ended March 31, 2023, that have materially affected or are reasonably likely to materially affect the company's controls[149](index=149&type=chunk) Part II. Other Information [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions, including designation as a PRP for the Portland Harbor Superfund Site, with no material adverse effect anticipated - JT Ryerson is named as a potentially responsible party (PRP) for the Portland Harbor Superfund Site, with a final cost allocation among PRPs not anticipated until 2024 or 2025. The ultimate outcome and potential loss cannot be estimated at this time[51](index=51&type=chunk)[53](index=53&type=chunk)[56](index=56&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the company's 2022 Annual Report on Form 10-K - No material changes to risk factors have occurred since the company's 2022 Annual Report on Form 10-K[153](index=153&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1,518,433** shares in Q1 2023, including a significant transaction with Platinum Equity, with **$20.0 million** remaining under the program Q1 2023 Share Repurchases | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2023 | — | $— | | Feb 2023 | 1,513,420 | $35.02 | | Mar 2023 | 5,013 | $33.56 | | **Total** | **1,518,433** | N/A | - On May 1, 2023, the Board of Directors authorized an increase in the existing share repurchase program to **$100.0 million**, expiring in April 2025[155](index=155&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) Exhibits filed with the Form 10-Q include a CEO retention bonus agreement and Sarbanes-Oxley Act certifications by the CEO and CFO - Exhibits filed include certifications from the Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002[157](index=157&type=chunk)

Financial Data and Key Metrics Changes - In Q4 2022, Ryerson reported net sales of $1.3 billion, achieving the high end of guidance range [85] - Gross margin was 12.7%, impacted by a LIFO expense of $35 million, while adjusted gross margin excluding LIFO was 15.3% [85] - For the full year 2022, net income attributable to Ryerson was a record $391 million or $10.21 per diluted share [74] - Operating cash generated in Q4 was $182 million, with total debt at $367 million and net debt decreasing by $98 million compared to Q3 [47] Business Line Data and Key Metrics Changes - The fourth quarter saw sequential shipment decreases across all end markets, with commercial ground transportation, oil and gas, HVAC, and construction equipment increasing sales volumes, while consumer durables and food processing saw slight declines [66] - The average selling price decreased by 8% sequentially to $2,770 per ton due to market conditions [64] Market Data and Key Metrics Changes - North American industry shipments contracted by 8.3% quarter-over-quarter, while Ryerson's volume declined by 9%, indicating a slight market share gain [21] - The pricing for metals commodities showed a mixed trend, with stainless and aluminum prices increasing in November due to firming international demand [26] Company Strategy and Development Direction - Ryerson is focused on modernizing its service center network and transforming its balance sheet, with significant investments in value-added manufacturing and customer-centric distribution networks [38] - The company anticipates full-year capital expenditures of around $95 million, primarily for maintenance and growth projects [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing supportive demand factors and the reopening of China's economy as potential drivers for industrial metals demand [41] - The company expects first-quarter revenues to be in the range of $1.37 billion to $1.43 billion, with sales volumes projected to increase by 10% to 12% sequentially [70] Other Important Information - Ryerson returned approximately $7 million to shareholders in Q4 through share repurchases and dividends, totaling about $70 million for the full year [49] - The company published its inaugural ESG report, outlining sustainability initiatives and a target to reduce Scope 1 and 2 emissions by 80% by 2040 [62] Q&A Session Summary Question: Can you discuss the operating expense level compared to the fourth quarter baseline? - Management acknowledged that operating expenses were higher than expected due to ERP conversion costs and other factors, but they anticipate improvements in expense leverage moving forward [88][89] Question: What is the outlook for the stainless market? - Management noted that the stainless market had been tight but experienced a glut due to high imports, which is now normalizing, leading to improved demand and pricing conditions [92] Question: How is the cash conversion cycle performing? - The cash conversion cycle has ticked up, primarily driven by inventory days of supply, but management expects it to moderate back to target ranges [82][93]

Operations and Facilities - The company operates approximately 96 facilities in North America and four in China, serving around 40,000 customers across various manufacturing end-markets[14]. - The company maintains a decentralized operating structure, enabling efficient delivery systems and just-in-time delivery capabilities[42]. - The company operates a private trucking fleet for deliveries, which may face increased costs due to future regulations[67]. Acquisitions and Growth Strategy - In 2022, the company completed significant acquisitions, including Excelsior, Inc. and Howard Precision Metals, enhancing its processing capabilities and product offerings[17]. - The company’s growth strategy includes both organic growth and strategic acquisitions to enhance service, product, and geographic diversification[15]. - The company has invested in expanding existing facilities and adding processing equipment to support organic growth[50]. Financial Performance and Capital Expenditures - The company reported capital expenditures of $274.6 million over the five-year period ending December 31, 2022, focusing on increasing value-added processing capabilities[38]. - The company anticipates capital expenditures of up to approximately $95 million for 2023, focusing on strategic initiatives and IT infrastructure investment[50]. - In 2022, net capital change amounted to an increase of $134.6 million, with additions of $105.1 million and retirements of $8.3 million[51]. Customer Base and Sales - The customer base consists of approximately 40,000 across various industries, with no single customer accounting for more than 6% of sales, and the top 10 customers representing about 16% of total sales[41]. - International sales accounted for 8.8% of consolidated net sales in 2022, totaling $558.6 million[44]. - Sales in tonnage traditionally peak in the first two quarters of the year, with lower sales in July, November, and December due to seasonal slowdowns[45]. Product and Service Offerings - Approximately 80% of the products sold by the company are processed to meet specific customer requirements, indicating a strong emphasis on value-added services[14]. - The company has a broad product mix, carrying nearly 75,000 products in various metals, which allows it to serve a diverse customer base and fulfill over 1,000,000 orders annually[29]. Supplier Relationships - The company maintains strong relationships with suppliers, often being one of the largest customers, which helps secure favorable pricing and service[31]. - Approximately 78% of purchase dollars in 2022 were accounted for by the top 25 suppliers, ensuring material requirements are met through a diverse supplier base[47]. Cost Management and Expenses - The company’s warehousing, selling, general, and administrative expenses increased by $24.0 million in 2022 compared to 2021, but decreased as a percentage of sales by 90 basis points, demonstrating effective cost management[28]. Market Trends and Challenges - The Institute for Supply Management's PMI indicated a slowdown in manufacturing activity, with a reading of 47.4% in January 2023, suggesting potential challenges ahead for the industry[33]. - The company is focused on expanding its presence in growing markets, including electric vehicles and renewable energy, to capitalize on emerging opportunities[25]. Environmental, Health, and Safety - The company has implemented safeguards to mitigate environmental, health, and safety risks, although future regulations may impose additional costs[53]. - In 2022, Ryerson's OSHA recordable injuries per 200,000 labor hours were 3.03, better than the industry average reported by the Bureau of Labor Statistics[76]. - Ryerson's commitment to a zero-injury workplace is driven by its Environmental, Health, and Safety policy[76]. Employee Engagement and Benefits - The company offers competitive compensation and expanded benefits, including a newly implemented parental leave policy[73]. - Ryerson's DEI Council focuses on employee engagement and community outreach to foster an inclusive environment[74]. Financial Instruments and Risks - The carrying value of Ryerson's long-term debt was $367.0 million as of December 31, 2022, approximating its fair value due to the short-term nature of the borrowings[280]. - A hypothetical 1% increase in interest rates on variable debt would have increased interest expense for the twelve months of 2022 by approximately $4.3 million[283]. - Ryerson had foreign currency contracts with a U.S. dollar notional amount of $2.3 million outstanding at December 31, 2022, with a value of zero[284]. - As of December 31, 2022, Ryerson had 40,036 tons of hot roll coil swap contracts with a net asset value of $1.1 million[288]. - The company recognized a loss of $5.3 million associated with its commodity derivatives for the twelve months ended December 31, 2022[288]. - A hypothetical strengthening or weakening of 10% in commodity prices would increase or decrease the fair value of the commodity derivative contracts by $2.4 million[289].

Ryerson Holding Corporation (NYSE:RYI) Q3 2022 Earnings Conference Call November 3, 2022 10:00 AM ET Company Participants Jorge Beristain - Vice President-Finance Edward Lehner - President and Chief Executive Officer Michael Burbach - Chief Operating Officer James Claussen - Executive Vice President and Chief Financial Officer Molly Kannan - Controller and Chief Accounting Officer John Orth - Executive Vice President-Operations Conference Call Participants Katja Jancic - BMO Capital Samuel McKinney - KeyBan ...

1 Ryerson Quarterly Release Presentation Q3 2022 2 2 Important Information About Ryerson Holding Corporation These materials do not constitute an offer or solicitation to purchase or sell securities of Ryerson Holding Corporation ("Ryerson" or "the Company") or its subsidiaries and no investment decision should be made based upon the information provided herein. Ryerson strongly urges you to review its filings with the Securities and Exchange Commission, which can be found at https://ir.ryerson.com/financia ...

Ryerson Holding Corporation (NYSE:RYI) Q2 2022 Earnings Conference Call August 4, 2022 10:00 AM ET Company Participants Jorge Beristain - Vice President-Finance Edward Lehner - President and Chief Executive Officer Michael Burbach - Chief Operating Officer James Claussen - Executive Vice President and Chief Financial Officer Molly Kannan - Controller and Chief Accounting Officer John Orth - Executive Vice President-Operations Michael Hamilton - Vice President-Corporate Supply Chain Conference Call Participa ...

Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported significant year-over-year growth in revenue and net income for the three and six months ended June 30, 2022, driven by higher average selling prices [Condensed Consolidated Statements of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For the six months ended June 30, 2022, Ryerson's net sales grew 36.1% to $3.49 billion, and net income attributable to the company increased by 160.5% to $360.0 million compared to the same period in 2021 Financial Performance Summary (Six Months Ended June 30) | Financial Metric | 2022 (in millions) | 2021 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | $3,492.3 | $2,566.3 | +36.1% | | Gross Profit | $876.0 | $454.9 | +92.6% | | Operating Profit | $521.6 | $212.5 | +145.5% | | Net Income Attributable to Ryerson | $360.0 | $138.2 | +160.5% | | Diluted EPS | $9.26 | $3.57 | +159.4% | [Condensed Consolidated Statements of Cash Flows](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2022, net cash provided by operating activities was $168.0 million, a significant turnaround from the $51.1 million used in the same period of 2021, primarily due to higher net income Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2022 (in millions) | 2021 (in millions) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $168.0 | $(51.1) | | Net cash provided by (used in) investing activities | $(43.4) | $152.1 | | Net cash used in financing activities | $(136.1) | $(124.0) | | Net change in cash | $(9.8) | $(23.3) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2022, total assets increased to $2.68 billion from $2.37 billion at year-end 2021, driven by higher receivables and inventories Balance Sheet Summary | Balance Sheet Item | June 30, 2022 (in millions) | Dec 31, 2021 (in millions) | | :--- | :--- | :--- | | Total Current Assets | $1,898.2 | $1,593.0 | | Total Assets | $2,682.9 | $2,365.6 | | Long-Term Debt | $514.3 | $610.5 | | Total Liabilities | $1,832.4 | $1,821.0 | | Total Equity | $850.5 | $544.6 | [Notes to Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes highlight a change in the LIFO inventory valuation method, several small acquisitions, and significant debt management activities, including an increase in the Ryerson Credit Facility to $1.3 billion and the repurchase of $250.0 million of its 2028 Senior Secured Notes - The company changed its interim LIFO inventory calculation method to project year-end levels and allocate them pro-rata, resulting in LIFO income of **$71.6 million** for H1 2022 versus a LIFO expense of **$188.6 million** in H1 2021[24](index=24&type=chunk)[25](index=25&type=chunk) - In H1 2022, the company acquired Apogee Steel Fabrication, Ford Tool Steels, Inc., and a 30% interest in FreeFORM Manufacturing, LLC to expand its value-added processing and additive manufacturing capabilities[32](index=32&type=chunk)[33](index=33&type=chunk)[35](index=35&type=chunk) - The company repurchased and retired **$250.0 million** of its 8.50% Senior Secured Notes due 2028 during the first six months of 2022, leaving **$50.0 million** outstanding as of June 30, 2022[48](index=48&type=chunk) - Following a secondary offering by Platinum Equity and a concurrent **$47.7 million** share repurchase by Ryerson, Platinum's ownership decreased from 54% to 43%, and Ryerson is no longer a 'controlled company'[19](index=19&type=chunk)[80](index=80&type=chunk) - Subsequent to the quarter end, the company redeemed the remaining **$50.0 million** of its 2028 Notes, authorized a new **$75.0 million** share repurchase program, and declared a quarterly dividend of **$0.15 per share**[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the strong performance in the first half of 2022 to a robust pricing environment, with average selling prices up 42.6% year-over-year, which more than offset a 4.5% decline in tons shipped [Industry and Operating Trends](index=22&type=section&id=Industry%20and%20Operating%20Trends) The metals service center industry experienced strong pricing in the first half of 2022, with Ryerson's average selling prices increasing 42.6% over H1 2021 - The company experienced stronger pricing in H1 2022 compared to H1 2021, with average selling prices **42.6% higher** due to strong commodity prices, global demand outpacing supply, and trade disruptions[106](index=106&type=chunk) - Key industry indicators like the ISM Purchasing Managers' Index (PMI) showed slowing growth with sequential declines in April, May, and June 2022[107](index=107&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) For Q2 2022, net sales increased 22.9% to $1.74 billion, and for H1 2022, they rose 36.1% to $3.49 billion, driven by higher average selling prices per ton which increased 31.1% and 42.6% respectively Key Operating Metrics (YoY Comparison) | Metric | Q2 2022 vs Q2 2021 | H1 2022 vs H1 2021 | | :--- | :--- | :--- | | Net Sales Change | +22.9% | +36.1% | | Tons Sold Change | -6.3% | -4.5% | | Avg. Selling Price/Ton Change | +31.1% | +42.6% | - Gross profit for H1 2022 increased **92.6%** to **$876.0 million**, with gross margin expanding to **25.1%** from **17.7%** in H1 2021[130](index=130&type=chunk) - Other expenses in H1 2022 included a **$19.8 million** loss on the repurchase of 2028 Notes[135](index=135&type=chunk) [Liquidity and Cash Flows](index=29&type=section&id=Liquidity%20and%20Cash%20Flows) The company's liquidity position strengthened, with total liquidity (cash plus credit facility availability) increasing to $894 million at June 30, 2022, from $741 million at year-end 2021 Liquidity and Debt Position | Metric (in millions) | June 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $41.4 | $51.2 | | Total Liquidity | $894 | $741 | | Total Debt | $533.5 | $639.3 | | Net Debt | $492.1 | $588.1 | - Working capital needs are counter-cyclical[143](index=143&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rates, foreign currency exchange rates, and commodity prices - The company's primary market risks are changes in interest rates, foreign currency exchange rates, and commodity prices[157](index=157&type=chunk) - A hypothetical **1%** increase in interest rates on variable-rate debt would have increased interest expense for the first six months of 2022 by approximately **$1.8 million**[161](index=161&type=chunk) - As of June 30, 2022, the company held various commodity swap contracts, including **123,158 tons** of hot roll coil and **9,354 tons** of aluminum, to manage price volatility[166](index=166&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2022 - Based on an evaluation as of the end of the period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[169](index=169&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter ended June 30, 2022, that have materially affected, or are reasonably likely to materially affect, the company's controls[170](index=170&type=chunk) Part II. Other Information [Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various claims and legal actions - The company is named as a potentially responsible party for the Portland Harbor Superfund Site, but the ultimate liability and potential loss cannot be estimated at this time[56](index=56&type=chunk)[62](index=62&type=chunk)[172](index=172&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) The company highlights a specific risk factor concerning the historical and recent volatility of its stock price - A risk factor was added to address the recent volatility of the company's stock price, cautioning that investors could incur substantial losses[173](index=173&type=chunk)[174](index=174&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2022, the company repurchased 1,613,022 shares of its common stock in a privately negotiated transaction with affiliates of Platinum Equity, LLC at an average price of $29.56 per share Issuer Purchases of Equity Securities (Q2 2022) | Period | Total Shares Purchased | Avg. Price Paid per Share | | :--- | :--- | :--- | | May 1 - May 31, 2022 | 1,613,022 | $29.56 | | **Total Q2** | **1,613,022** | **$29.56** | - The company's **$50 million** share repurchase program authorized in August 2021 was exhausted during the second quarter of 2022[177](index=177&type=chunk) [Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO as required by the Sarbanes-Oxley Act of 2002 and Inline XBRL documents - The report includes standard exhibits such as CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906, and financial data in Inline XBRL format[179](index=179&type=chunk)

Financial Data and Key Metrics Changes - Ryerson achieved its highest ever diluted earnings per share of $4.17 and adjusted diluted earnings of $4.27 per share in Q1 2022, compared to $2.71 and $2.68 per share in Q4 2021 respectively [7][38] - Revenue for Q1 2022 was $1.75 billion, exceeding the high end of guidance, with average selling prices up 2.3% and volume up 11.4% compared to Q4 2021 [34] - Net income attributable to Ryerson was $163.6 million in Q1 2022, an increase from $106.4 million in Q4 2021 [38] - The company's net debt fell to $507 million, the lowest level since its IPO in 2014, and the leverage ratio improved to 0.5x from 0.7x [8][27] Business Line Data and Key Metrics Changes - Approximately 50% of revenues were generated from bright metals, including stainless steels and aluminum, which supported sequential gross margin improvement [13] - Stainless steel products accounted for nearly $0.5 billion or 28% of overall revenue, with a 2.9% sequential increase in average selling prices [17] - The transactional aluminum reference price rose 19% in Q1 2022, while Ryerson's realized average selling price for aluminum products gained 8% sequentially [18] Market Data and Key Metrics Changes - North American industry shipments rose 9.3% quarter-over-quarter, while Ryerson's North American volumes gained 14.8%, indicating market share growth [18] - The company noted strong demand recovery in sectors such as commercial ground transportation and construction equipment, with volume growth of 20% and 19% respectively [20] Company Strategy and Development Direction - Ryerson's strategy focuses on strengthening its balance sheet while investing in modernizing and digitizing its service center network [11] - The company is well-positioned for future growth due to its exposure to North American manufacturing and planned national infrastructure spending [10] - Ryerson raised its quarterly dividend by 25% to $0.125 per share, reflecting confidence in its financial health [9][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing challenges from supply chain disruptions and geopolitical unrest but maintained an optimistic outlook for 2022 [21] - The company anticipates a recovering volume outlook into the second half of 2022, supported by improving industrial activity [21] - Management emphasized the importance of creating great experiences for customers and stakeholders amidst current global challenges [41] Other Important Information - Ryerson generated $82.5 million of operating cash in Q1 2022 and ended the period with $551 million of total debt [26] - Capital expenditures were $18.8 million in Q1 2022, with a reaffirmed anticipated capital expenditure of up to $100 million for the year [29] - The company returned approximately $4.3 million to shareholders through dividends and share buybacks during the quarter [31] Q&A Session Summary Question: Were there any questions from participants? - There were no questions during the Q&A session [45]

1 Ryerson Quarterly Release Presentation Q1 2022 2 2 Important Information About Ryerson Holding Corporation These materials do not constitute an offer or solicitation to purchase or sell securities of Ryerson Holding Corporation ("Ryerson" or "the Company") or its subsidiaries and no investment decision should be made based upon the information provided herein. Ryerson strongly urges you to review its filings with the Securities and Exchange Commission, which can be found at https://ir.ryerson.com/financia ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-34735 RYERSON HOLDING CORPORATION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 (State or other jurisdiction of incorporation or ...