Ryerson(US:RYI)2022-05-07 21:56Financial 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]