RYERSON INC. - FORM 8-K - EX-99.1 - November 5, 2013

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Exhibit 99.1

RYERSON INC. AND SUBSIDIARY COMPANIES

Selected Income and Cash Flow Data—Unaudited

(Dollars in Millions, except Per Ton Data)

 

     2013     2012     First Nine Months Ended  
     Third     Second     Third     September 30,  
     Quarter     Quarter     Quarter     2013     2012  

NET SALES

    $ 859.8      $ 906.9      $ 962.2      $ 2,657.8      $ 3,174.4   

Cost of materials sold

      704.7        748.4        781.7        2,188.4        2,619.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

      155.1        158.5        180.5        469.4        555.3   

Warehousing, delivery, selling, general and administrative

      119.6        121.4        127.1        362.7        390.0   

Restructuring and other charges

      —          2.1        —          2.1        —     

Impairment charges on fixed assets and goodwill

      1.1        6.8        —          8.8        0.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

OPERATING PROFIT

      34.4        28.2        53.4        95.8        164.4   

Other income and (expense), net

      (1.1 )      2.0        (1.5 )      2.1        (1.0 ) 

Interest and other expense on debt

      (27.1 )      (27.8 )      (19.8 )      (83.3 )      (58.9 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME BEFORE INCOME TAXES

      6.2        2.4        32.1        14.6        104.5   

Provision for income taxes

      2.9        2.2        0.5        6.2        6.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NET INCOME

      3.3        0.2        31.6        8.4        98.1   

Less: Net loss attributable to noncontrolling interest

      (1.0 )      (1.7 )      (1.9 )      (4.9 )      (4.2 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NET INCOME ATTRIBUTABLE TO RYERSON INC.

    $ 4.3      $ 1.9      $ 33.5      $ 13.3      $ 102.3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data :

           

Tons shipped (000)

      519        530        527        1,559        1,671   

Shipping days

      64        64        63        191        191   

Average selling price/ton

    $ 1,657      $ 1,711      $ 1,826      $ 1,705      $ 1,900   

Gross profit/ton

      299        299        342        301        332   

Operating profit/ton

      66        53        101        61        98   

LIFO income/ton

      (18 )      (24 )      (56 )      (17 )      (28 ) 

LIFO income

    $ (9.5 )    $ (12.7 )    $ (29.7 )    $ (26.6 )    $ (46.4 ) 

Depreciation and amortization expense

      12.0        11.6        11.9        34.9        34.8   

Cash flow from operating activities

      36.6        21.7        84.6        88.0        86.1   

Capital expenditures

      (6.0 )      (6.5 )      (6.1 )      (16.5 )      (32.0 ) 
          

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 EBITDA

(Dollars in millions)

 

     2013     2012  
     Third     Second     Third  
     Quarter     Quarter     Quarter  

Net income attributable to Ryerson Inc.

    $ 4.3      $ 1.9      $ 33.5   

Interest and other expense on debt

      27.1        27.8        19.8   

Provision for income taxes

      2.9        2.2        0.5   

Depreciation and amortization expense

      12.0        11.6        11.9   
  

 

 

    

 

 

    

 

 

  

EBITDA

    $ 46.3      $ 43.5      $ 65.7   

Reorganization

      2.1        4.4        1.4   

Advisory services fee

      1.3        1.2        1.3   

Foreign currency transaction (gains) losses

      1.3        (1.8 )      1.5   

Impairment charges on fixed assets and goodwill

      1.1        6.8        —     

Purchase consideration

      1.1        0.8        1.9   

Other adjustments

      (0.2 )      (0.2 )      —     
  

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

    $ 53.0      $ 54.7      $ 71.8   
  

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

    $ 53.0      $ 54.7      $ 71.8   

LIFO income

      (9.5 )      (12.7 )      (29.7 ) 
  

 

 

    

 

 

    

 

 

  

Adjusted EBITDA, excluding LIFO income

    $ 43.5      $ 42.0      $ 42.1   
  

 

 

    

 

 

    

 

 

  

 

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 charges on fixed assets and goodwill, reorganization expenses and the payment of management fees. We believe that the presentation of EBITDA, Adjusted EBITDA and Adjusted EBITDA, excluding LIFO income provides useful information to investors regarding our operational performance because they enhance an investor’s 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 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 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 income targets. We also use EBITDA, Adjusted EBITDA and Adjusted EBITDA, excluding LIFO income to benchmark our operating performance to that of our competitors. EBITDA, Adjusted EBITDA and Adjusted EBITDA, excluding LIFO 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 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 income may differ from that of other companies.

RYERSON INC. Reports