UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 2014
Ryerson Inc.
(Exact name of registrant as specified in its charter)
Delaware | 333-189642 | 36-3425828 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
227 W. Monroe, 27th Floor, Chicago, IL 60606
(Address of principal executive offices and zip code)
(312) 292-5000
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
The information contained within Item 2.02 of this Form 8-K and the Exhibits attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
On May 7, 2014, Ryerson Inc. released its First Quarter Selected Income and Cash Flow Data. The Ryerson Inc. First Quarter Selected Income and Cash Flow Data is set forth on Exhibit 99.1 attached hereto and is hereby incorporated by reference.
Item 9.01. Financial Statements and Exhibits.
d) Exhibits
The following exhibit is being filed with this Current Report on Form 8-K:
99.1 | Ryerson Inc. First Quarter Selected Income and Cash Flow Data |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: May 7, 2014
RYERSON INC. | ||
By: | /s/ EDWARD J. LEHNER | |
Name: | Edward J. Lehner | |
Title: | Executive Vice President & Chief Financial Officer |
Exhibit Index
Exhibit |
Description | |
99.1 | Ryerson Inc. First Quarter Selected Income and Cash Flow Data |
Exhibit 99.1
RYERSON INC. AND SUBSIDIARY COMPANIES
Selected Income and Cash Flow DataUnaudited
(Dollars in Millions, except Per Ton Data)
Fourth | ||||||||||||
First Quarter | Quarter | |||||||||||
2014 | 2013 | 2013 | ||||||||||
NET SALES |
$ | 874.4 | $ | 891.1 | $ | 802.5 | ||||||
Cost of materials sold |
726.7 | 735.3 | 655.3 | |||||||||
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Gross profit |
147.7 | 155.8 | 147.2 | |||||||||
Warehousing, delivery, selling, general and administrative |
117.8 | 121.7 | 116.8 | |||||||||
Restructuring and other charges |
| | (0.2 | ) | ||||||||
Impairment charge on fixed assets |
| 0.9 | 1.2 | |||||||||
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OPERATING PROFIT |
29.9 | 33.2 | 29.4 | |||||||||
Other income and (expense), net |
2.0 | 1.2 | (2.3 | ) | ||||||||
Interest and other expense on debt |
(27.4 | ) | (28.4 | ) | (27.2 | ) | ||||||
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INCOME (LOSS) BEFORE INCOME TAXES |
4.5 | 6.0 | (0.1 | ) | ||||||||
Provision (benefit) for income taxes |
3.5 | 1.1 | (71.6 | ) | ||||||||
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NET INCOME |
1.0 | 4.9 | 71.5 | |||||||||
Less: Net loss attributable to noncontrolling interest |
(0.9 | ) | (2.2 | ) | (0.9 | ) | ||||||
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NET INCOME ATTRIBUTABLE TO RYERSON INC. |
$ | 1.9 | $ | 7.1 | $ | 72.4 | ||||||
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Supplemental Data : |
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Tons shipped (000) |
506 | 510 | 479 | |||||||||
Shipping days |
63 | 63 | 61 | |||||||||
Average selling price/ton |
$ | 1,728 | $ | 1,747 | $ | 1,675 | ||||||
Gross profit/ton |
292 | 305 | 307 | |||||||||
Operating profit/ton |
59 | 65 | 61 | |||||||||
LIFO expense (income)/ton |
18 | (9 | ) | (13 | ) | |||||||
LIFO expense (income) |
$ | 9.2 | $ | (4.4 | ) | $ | (6.4 | ) | ||||
Depreciation and amortization expense |
10.9 | 11.3 | 12.0 | |||||||||
Cash flow from operating activities |
25.0 | 29.7 | (39.7 | ) | ||||||||
Capital expenditures |
(3.4 | ) | (4.0 | ) | (3.7 | ) |
See Schedule 1 for EBITDA and Adjusted EBITDA reconciliation.
Schedule 1
RYERSON INC. AND SUBSIDIARY COMPANIES
Reconciliation of Net Income Attributable to Ryerson Inc. to Adjusted EBITDA
(Dollars in millions)
Fourth | ||||||||||||
First Quarter | Quarter | |||||||||||
2014 | 2013 | 2013 | ||||||||||
Net income attributable to Ryerson Inc. |
$ | 1.9 | $ | 7.1 | $ | 72.4 | ||||||
Interest and other expense on debt |
27.4 | 28.4 | 27.2 | |||||||||
Provision (benefit) for income taxes |
3.5 | 1.1 | (71.6 | ) | ||||||||
Depreciation and amortization expense |
10.9 | 11.3 | 12.0 | |||||||||
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EBITDA |
$ | 43.7 | $ | 47.9 | $ | 40.0 | ||||||
Reorganization |
1.0 | 2.0 | 3.0 | |||||||||
Advisory services fee |
1.3 | 1.3 | 1.2 | |||||||||
Foreign currency transaction gains |
(2.2 | ) | (1.1 | ) | (2.1 | ) | ||||||
Impairment charge on fixed assets |
| 0.9 | 1.2 | |||||||||
Purchase consideration |
0.8 | 0.8 | 0.8 | |||||||||
Other adjustments |
0.2 | (0.1 | ) | 4.7 | ||||||||
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Adjusted EBITDA |
$ | 44.8 | $ | 51.7 | $ | 48.8 | ||||||
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Adjusted EBITDA |
$ | 44.8 | $ | 51.7 | $ | 48.8 | ||||||
LIFO expense (income) |
9.2 | (4.4 | ) | (6.4 | ) | |||||||
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Adjusted EBITDA, excluding LIFO expense (income) |
$ | 54.0 | $ | 47.3 | $ | 42.4 | ||||||
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Note: | EBITDA represents net income before interest and other expense on debt, provision for income taxes, depreciation and amortization. Adjusted EBITDA gives further effect to, among other things, impairment charge on fixed assets, reorganization expenses and the payment of management fees. We believe that the presentation of EBITDA, Adjusted EBITDA and Adjusted EBITDA, excluding LIFO expense (income) provides useful information to investors regarding our operational performance because they enhance an investors overall understanding of our core financial performance and provide a basis of comparison of results between current, past and future periods. We also disclose the metric Adjusted EBITDA, excluding LIFO expense (income), to provide a means of comparison amongst our competitors who may not use the same basis of accounting for inventories. EBITDA, Adjusted EBITDA and Adjusted EBITDA, excluding LIFO expense (income) are three of the primary metrics management uses for planning and forecasting in future periods, including trending and analyzing the core operating performance of our business without the effect of U.S. generally accepted accounting principles, or GAAP, expenses, revenues and gains (losses) that are unrelated to the day to day performance of our business. We also establish compensation programs for our executive management and regional employees that are based upon the achievement of pre-established EBITDA, Adjusted EBITDA and Adjusted EBITDA, excluding LIFO expense (income) targets. We also use EBITDA, Adjusted EBITDA and Adjusted EBITDA, excluding LIFO expense (income) to benchmark our operating performance to that of our competitors. EBITDA, Adjusted EBITDA and Adjusted EBITDA, excluding LIFO expense (income) do not represent, and should not be used as a substitute for, net income or cash flows from operations as determined in accordance with generally accepted accounting principles, and neither EBITDA, Adjusted EBITDA and Adjusted EBITDA, excluding LIFO expense (income) is necessarily an indication of whether cash flow will be sufficient to fund our cash requirements. Our definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDA, excluding LIFO expense (income) may differ from that of other companies. |