Ryerson Inc. (NYSE: RYI) reported Q2 EPS of ($0.64), $0.38 worse than the analyst estimate of ($0.26). Revenue for the quarter came in at $772 million versus the consensus estimate of $745.4 million.

Q2 2020 Highlights:

• Reduced net debt by $100 million to $793 million, its lowest level in ten years.
• Refinanced our 11.00% Senior Secured Notes due in 2022 through issuance of $500 million of 8.50% Senior Secured Notes due in 2028. The successful refinancing decreases our expected annual cash interest expense by approximately $16 million and includes optional redemption features.
• Continued operating as an essential business, successfully executing on our dual mandate response plan to safeguard the health and safety of our employees and to preserve the liquidity and recovery capacity of the Company.
• Generated $103 million in cash flow from operations, up $30 million from the first quarter, bringing year-to-date cash flows from operations to $176 million.
• Achieved Adjusted EBITDA, excluding LIFO of $21 million on volumes significantly better than the industry as measured by the Metals Service Center Institute ("MSCI").

Management Commentary

Eddie Lehner, Ryerson's President and Chief Executive Officer, said, "I can only express my profound gratitude to my Ryerson teammates, our customers, our suppliers and all essential workers as we continue to navigate through this time of unparalleled collective adversity unlike any other experienced in our lifetimes. Through the extraordinary efforts of my Ryerson colleagues, we are living up to our cultural DNA of "say yes and figure it out." We are working safer, we are looking out for one another, and we are making the decisions we have to make to in order to weather the crisis and serve our dual mandate to safeguard the health and safety of our workforce while preserving liquidity and recovery capacity for Ryerson."

Mr. Lehner continued, "The second quarter presented a myriad of challenging public health, economic and societal circumstances that were omnipresent. In the second quarter, North American Industry Shipments, as measured by the MSCI, contracted by 26.3 percent compared to the prior quarter. Ryerson outperformed the industry with North American volume contraction of 21.4 percent, while also generating over $100 million in cash from operating activities and reducing net debt by approximately $100 million compared to the first quarter of 2020. Ryerson successfully refinanced its 11.00% Senior Secured Notes due 2022 and issued $500 million of 8.50% Senior Secured Notes with an 8-year tenor, effectively lowering expected annual cash interest expense by approximately $16 million with additional opportunities for reducing leverage during the first three "non-call" years of the Notes duration. This successful refinancing is reflective of Ryerson's improved operating and credit profile since our prior notes issuance in 2016. Our business model development, improved capital structure and our shared commitment to social justice and equality will enable our continued progress as we emerge from the pandemic and work toward better days."

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