Ryerson(RYI) - 2025 Q1 - Quarterly Report

Part I. Financial Information Financial Statements This section presents the unaudited condensed consolidated financial statements for Q1 2025 and 2024 Financial Performance | Financial Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net sales | $1,135.7 million | $1,239.2 million | | Gross profit | $204.4 million | $217.6 million | | Operating profit | $2.3 million | $0.8 million | | Net loss attributable to Ryerson | $(5.6) million | $(7.6) million | | Diluted loss per share | $(0.18) | $(0.22) | Balance Sheet Overview | Balance Sheet Item | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $1,297.5 million | $1,207.6 million | | Total assets | $2,523.6 million | $2,439.5 million | | Total current liabilities | $647.2 million | $580.1 million | | Long-term debt | $497.0 million | $466.7 million | | Total liabilities | $1,710.3 million | $1,615.0 million | | Total equity | $813.3 million | $824.5 million | Cash Flow Summary | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(41.2) million | $(47.8) million | | Net cash used in investing activities | $(8.0) million | $(20.4) million | | Net cash provided by financing activities | $54.4 million | $56.2 million | | Net change in cash | $5.4 million | $(12.4) million | - Revenue is primarily derived from the distribution of metals, with Carbon Steel (Flat, Plate, Long) and Stainless Steel (Flat, Plate, Long) being the largest product lines by sales percentage. The majority of sales (approx. 90%) originate from the United States[64] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 performance, noting decreased net sales, improved operating profit, and strong liquidity Key Performance Metrics | Performance Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,135.7 M | $1,239.2 M | -8.4% | | Tons Sold (thousands) | 500 | 497 | +0.6% | | Average Selling Price per Ton | $2,271 | $2,493 | -8.9% | - The $14.7 million decrease in warehousing, delivery, selling, general, and administrative expenses year-over-year was primarily due to lower reorganization costs compared to Q1 2024, which included startup costs for the new University Park, IL facility and ERP conversion activities[104] Liquidity and Debt Position | Liquidity and Debt (as of) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Liquidity | $490 million | $451 million | | Total Debt | $497.3 million | $467.4 million | | Net Debt | $464 million | $440 million | - Adjusted diluted loss per share, a non-GAAP measure, was $(0.18) for Q1 2025, unchanged from Q1 2024 after excluding items like pension settlement losses in the prior-year period[88][89] Quantitative and Qualitative Disclosures About Market Risk This section details the company's market risk exposures to interest rates, foreign currency, and commodity prices - A hypothetical 1% increase in interest rates on the company's variable-rate debt would have increased interest expense for the first three months of 2025 by approximately $1.5 million[131] - The company uses foreign currency contracts to hedge exposure, with a U.S. dollar notional amount of $1.1 million outstanding at March 31, 2025[132] - To manage commodity price risk, the company held various swap contracts for metals and energy; a hypothetical 10% change in underlying prices would impact the fair value of these derivative contracts by $6.5 million as of March 31, 2025[136][137] Controls and Procedures Management concluded the company's disclosure controls and procedures were effective, with no material changes to internal controls - 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[139] - No changes in internal controls over financial reporting occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, these controls[140] Part II. Other Information Legal Proceedings The company reports no material changes to its legal proceedings since the disclosures in its 2024 Annual Report on Form 10-K - There have been no material changes to the contingencies and legal matters from those disclosed in the Company's 2024 Form 10-K[50][143] Risk Factors No material changes to the company's risk factors have occurred since the filing of its 2024 Annual Report on Form 10-K - No material changes to risk factors have occurred since the filing of the Company's Annual Report on Form 10-K for the year ended December 31, 2024[144] Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities or use of proceeds during the period - None[145] Other Information This section discloses CEO Edward Lehner's new Rule 10b5-1 stock trading plan for potential share sales - On March 28, 2025, CEO Edward Lehner entered into a new stock trading plan designed to comply with Rule 10b5-1[146] - Under the plan, Mr. Lehner may sell up to 112,140 shares of the Company's common stock between June 26, 2025, and June 30, 2026[146] Exhibits This section lists the exhibits filed with the Form 10-Q, including SOX certifications and Inline XBRL data - The exhibits filed with this report include certifications from the CEO and CFO as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, along with Inline XBRL documents[148]