Ryerson Holding Corporation (RYI) has reported a 9.63 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $14.80 million, or $0.40 a share in the quarter, compared with $13.50 million, or $0.42 a share for the same period last year.
Revenue during the quarter grew 15.93 percent to $814.50 million from $702.60 million in the previous year period. Gross margin for the quarter contracted 129 basis points over the previous year period to 19.72 percent. Total expenses were 94.68 percent of quarterly revenues, up from 94.55 percent for the same period last year. That has resulted in a contraction of 14 basis points in operating margin to 5.32 percent.
Operating income for the quarter was $43.30 million, compared with $38.30 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $55 million compared with $52 million in the prior year period. At the same time, adjusted EBITDA margin contracted 65 basis points in the quarter to 6.75 percent from 7.40 percent in the last year period.
Eddie Lehner, Ryerson’s president and chief executive officer said, "Ryerson continues to execute well upon our business model and strategy built around speed, scale, value-add, culture, and analytics to provide great and profitable customer experiences that resulted in vastly improved financial results year-over-year and sequentially. In the first quarter of 2017 Ryerson grew revenues with increased shipment volumes at higher selling prices and achieved higher gross margins, excluding LIFO, generating better net income and Adjusted EBITDA, excluding LIFO while improving our working capital days ratios compared to the first quarter of 2016. We also welcomed Laserflex and Guy Metals to our integrated network of service centers, expanding our value-added capabilities and product offerings."
Working capital increases
Ryerson Holding Corporation has recorded an increase in the working capital over the last year. It stood at $676.20 million as at Mar. 31, 2017, up 8.19 percent or $51.20 million from $625 million on Mar. 31, 2016. Current ratio was at 2.47 as on Mar. 31, 2017, down from 2.60 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 45 days for the quarter from 96 days for the last year period. Days sales outstanding went down to 40 days for the quarter compared with 42 days for the same period last year.
Days inventory outstanding has decreased to 43 days for the quarter compared with 92 days for the previous year period. At the same time, days payable outstanding went down to 37 days for the quarter from 39 for the same period last year.
Debt moves up marginally
Ryerson Holding Corporation has witnessed an increase in total debt over the last one year. It stood at $992.50 million as on Mar. 31, 2017, up 1.63 percent or $15.90 million from $976.60 million on Mar. 31, 2016. Total debt was 57.08 percent of total assets as on Mar. 31, 2017, compared with 61.70 percent on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
