Ryerson(US:RYI)2021-10-08 15:47Financial Performance - Ryerson's Q2 2021 net sales reached $1.4 billion, a 24% increase compared to Q1 2021 and an 84% increase compared to Q2 2020[18] - The gross margin, excluding LIFO, for Q2 2021 was 25.5%, a 90 bps increase compared to Q1 2021 and an 870 bps increase compared to Q2 2020[18] - Adjusted diluted earnings per share for Q2 2021 were $1.24, a $0.98 increase compared to Q1 2021 and a $1.88 increase compared to Q2 2020[18] - Adjusted EBITDA, excluding LIFO, for Q2 2021 was $197 million, a $74 million increase compared to Q1 2021 and a $177 million increase compared to Q2 2020[18] - Ryerson's net debt to adjusted EBITDA, excluding LIFO, ratio was 1.5x in Q2 2021, a decrease of 1.8x compared to Q1 2021 and a decrease of 4.5x compared to Q2 2020[18] Financial Transformation - Ryerson reduced net debt from $1.135 billion in Q3 2014 to $563 million in Q2 2021[20] - Pension benefit liability decreased from $112 million in 2014 to $69 million in 2022F[21] - Annual fixed cash commitments decreased from $181 million in 2014 to $130 million in Q2 2021[21,22] Liquidity and Capital Allocation - Ryerson's global liquidity increased from $583 million in Q1 2021 to $890 million in Q2 2021[31] - The company has a quarterly capital return to investors of $0.08 per share and the option to repurchase outstanding shares from excess liquidity[41] Future Targets - Ryerson is aiming for a 6% North American market share, a 1.5x net debt to adjusted EBITDA ratio, and a 15% value-added sales mix[43,45,47] - The company is targeting a 20% gross margin and $50 million in adjusted EBITDA, excluding LIFO[44,49]