Aug. 20, 2014
Ryerson Goes Public with IPO of 11 Million Shares
Chicago-based Ryerson has once again become a public company with an initial public offering in early August. The company closed its IPO of 11 million shares at a price of $11 per share. At press time, the stock was trading at $10.30 per share. Proceeds of approximately $111 million will be used to retire debt.
Ryerson is the second-largest service center company in North America with 2013 revenues of $3.46 billion. It was previously a public company until 2007 when it was acquired by Platinum Equity. The Los Angeles-based private equity remains the largest shareholder.
Following its IPO, Ryerson released an earnings report for the second quarter. It reported second-quarter sales of $932 million, an increase of 2.7 percent from the same quarter in 2013 and up 6.5 percent from the first quarter. The company benefited from improved metals prices. Net income totaled $2.6 million, up from $500,000 in the second quarter of 2013 and $1.6 million in the first quarter.
Ryerson also reported some recovery in metals demand in the second quarter with a 2.9 percent sequential increase in tons shipped per day. Gross margin was 16.6 percent, compared to 17.5 percent in the year-ago period and 16.9 percent in the first quarter.
"We are pleased with our results in the quarter, which benefitted from higher metal prices and signs of improving demand," says Mike Arnold, Ryerson's president and chief executive officer. "We are capturing the benefits of our corporate transformation. Moreover, we have positioned the company to leverage its scale and competitive advantages."
For the first half of 2014, Ryerson saw revenues of $1.8 billion, an increase of 0.4 percent from the first six months of 2013. Its net income totaled $4.2 million, down from the $6.1 million posted during the same period of 2013.
Ryerson operates more than 100 locations in the United States, Mexico, Canada, China and Brazil. Shares of Ryerson Holding Corp.’s common stock are listed on the New York Stock Exchange under the ticker symbol RYI.