Ryerson Holding Corp (RYI) 2023 Q4 法說會逐字稿

Good day and welcome to the Ryerson Holding Corporation's Fourth Quarter and Full Year 2023 conference call. Today's conference is being recorded. There will be a question and answer session later. If you would like to ask a question, please press star one on your telephone keypad at any time again, that is star one to ask a question. At this time, I would like to turn the conference over to Mr. Preston, dear Manager of Investor Relations. Please go ahead, sir.

美好的一天，歡迎參加瑞爾森控股公司 2023 年第四季和全年電話會議。今天的會議正在錄製中。稍後將有問答環節。如果您想提問，請隨時再次按下電話鍵盤上的星號一，即星號一來提問。現在，我想把會議交給親愛的投資人關係經理普雷斯頓先生。請繼續，先生。

Good morning. Thank you for joining Ryerson Holding Corporation's Fourth Quarter and Full Year 2023 earnings call. On our call, we have Eddie Lehner, Ryerson's President and Chief Executive Officer, Mike Burbach, our Chief Operating Officer, Jim Carlson, our Chief Financial Officer, and Molly Cannon, our Chief Accounting Officer and Corporate Controller, John Orth, our Executive Vice President of Operations, Mike Hamilton, our Vice President of Corporate supply chain, and Jorge Beristain, our Vice President of Finance, will be joining us for Q&A.

早安.感謝您參加瑞爾森控股公司 2023 年第四季和全年財報電話會議。參加我們電話會議的有瑞爾森總裁兼執行長 Eddie Lehner、營運長 Mike Burbach、財務長 Jim Carlson、財務長兼公司財務長 Molly Cannon、執行副總裁 John Orth營運總裁、企業供應鏈副總裁Mike Hamilton 和財務副總裁Jorge Beristain 將參加我們的問答活動。

Certain comments on this call will contain forward-looking statements within the meaning of the federal securities laws. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. These risks include, but are not limited to those set forth under Risk Factors in our annual report on Form 10 K for the year ended December 31st, 2023, and in other filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made and are not guarantees of future performance. And in addition, our remarks today refer to several non-GAAP financial measures that are intended to supplement but not substitute for the most directly comparable GAAP measures a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures is provided in our earnings release filed on Form eight K yesterday and also available on the Investor Relations section of our website.

本次電話會議的某些評論將包含聯邦證券法含義內的前瞻性陳述。這些陳述涉及許多風險和不確定性，可能導致實際結果與前瞻性陳述所暗示的結果有重大差異。這些風險包括但不限於我們截至 2023 年 12 月 31 日的 10 K 表格年度報告以及向美國證券交易委員會提交的其他文件中風險因素項下列出的風險。請您注意不要過度依賴這些前瞻性聲明，這些聲明僅代表發布之日的情況，並不保證未來的業績。此外，我們今天的言論提到了幾項非公認會計原則財務指標，這些指標旨在補充但不取代最直接可比較的公認會計原則財務指標，我們的收益中提供了非公認會計原則指標與最直接可比公認的會計原則財務指標的調節表昨天以 8 K 表格提交了新聞稿，也可在我們網站的投資者關係部分取得。

I'll now turn the call over to Eddie.

我現在把電話轉給艾迪。

Thank you, Brandon, and thank you all for joining us this morning. As we reflect on the fourth quarter and full year of 2023 results. I want to start by recognizing our 4,600 strong Ryerson team for prioritizing a safe and productive operating environment for our over 110 facilities across North America and China, U.S. Through the fourth quarter and full year, our service center network became stronger, denser and more robust as planned since 2021, Ryerson has embarked on its largest investment and shareholder return cycle in more than a generation and is an important marker in our 182 year history as much as I wish we could microwave it. We are timing our investments to the next industry upturn while managing the business intelligently 2023 and Q4 did not favor Ryerson's end markets as automotive, aerospace and nonresidential outperformed consumer general industrial and machinery and equipment metal consuming end markets. Commodity bellwether averages for carbon, aluminum and stainless all declined year over year. And while Ryerson grew market share in aluminum and stainless margin compression for stainless in particular was severe and unrelenting, we expect current countercyclical conditions for non-ferrous industrial metals consumption to be transient as we're well into a nonferrous bottoming. And we maintain a strong conviction around positive longer-term secular demand trends for aluminum and stainless and industrial metals writ large.

謝謝布蘭登，也謝謝大家今天早上加入我們。當我們回顧 2023 年第四季和全年業績。首先，我要讚揚瑞爾森大學 4,600 名強大的團隊，他們優先考慮為我們遍布北美、中國、美國的 110 多個設施提供安全、高效的營運環境。在第四季度和全年，我們的服務中心網絡按照2021 年以來的計劃變得更強大、更密集、更穩健，瑞爾森已經開始了一代人多以來最大的投資和股東回報週期，是我們182 年歷史上的一個重要標誌我多麼希望我們能用微波爐加熱它。我們將投資時機安排在下一個產業好轉的時候，同時明智地管理業務，2023 年和第四季對瑞爾森的終端市場不利，因為汽車、航空航太和非住宅市場的表現優於消費性一般工業以及機械和設備金屬消費終端市場。大宗商品領頭羊碳、鋁和不銹鋼的平均價格均較去年同期下降。儘管瑞爾森鋁業和不銹鋼市場份額不斷增長，但不銹鋼的利潤率壓縮尤其嚴重且無情，但我們預計，當前有色工業金屬消費的反週期狀況將是短暫的，因為有色金屬即將觸底。我們對鋁、不銹鋼和工業金屬的長期長期需求趨勢抱持堅定的信念。

When looking at Ryerson through a year over year Prism, I want to note that same store expenses and head count are both lower when comparing year over year benchmarks and same store headcount is still 8% below pre-pandemic levels. Additionally, we increased book value per share to its highest level since Ryerson's IPO in 2014. Increase the dividend continued prudent share buybacks generated strong free cash flow and free cash flow yield, group PP. and E. by 20, starting up the Centralia Washington service center facility and finished construction at University Park, Illinois with construction and equipment installation expected to be completed in Shelbyville, Kentucky by the end of 2024, while converting 17 of our service centers. The SAP. for ERP. consistency throughout our general line service center business. This is not the entire list, but a point of emphasis that there is no growth of any meaning or magnitude without some growing pains. We've been doing the hard but necessary things to create a better operating model centered on value add and speed to market to generate higher through the cycle earnings with less volatility when our investments fully phase-in and begin generating operating cash flow. Despite the noted countercyclical conditions that prevailed in Q4 and 2023.

當透過稜鏡觀察瑞爾森的同比情況時，我想指出，與同比基準相比，同店支出和員工人數均較低，而且同店員工人數仍比大流行前的水平低 8%。此外，我們將每股帳面價值提高至瑞爾森 2014 年 IPO 以來的最高水準。增加股息持續審慎的股票回購產生了強勁的自由現金流和自由現金流收益率，集團PP。 E. 到 20 歲，啟動 Centralia 華盛頓服務中心設施，並在伊利諾伊州大學公園完成施工，預計於 2024 年底在肯塔基州謝爾比維爾完成施工和設備安裝，同時改造我們的 17 個服務中心。SAP。用於 ERP。我們的總線服務中心業務保持一致性。這不是全部清單，但強調一點，如果沒有一些成長的煩惱，就沒有任何意義或規模的成長。我們一直在做艱苦但必要的事情，以創建一個以增值和上市速度為中心的更好的營運模式，以便在我們的投資完全分階段並開始產生營運現金流時，以較小的波動性產生更高的整個週期收益。儘管第四季和 2023 年普遍存在明顯的反週期條件。

Overall, I want to share several proof points. We welcomed three exceptional value added businesses into our family of companies during the fourth quarter. Norland, Inc., which we introduced on our last call, is joined by TSA processing and Hudson tool steel Corporation. Tsa headquartered in Houston has been providing excellent toll processing capabilities for over 30 years and operates across the Midwest and Southern states. Hudson tool steel headquartered in Cerritos, California has been supplying high-quality and specialty grade carbon and alloy tool steels for 20 years and has operations on the East Coast as well as the Midwest. The addition of Hudson allows Ryerson to create a tubeless steel center of excellence by combining the skill sets of Hudson with for tool steel and Southern tool steel throughout 2023, both organically and through acquisitions, Ryerson increased its value added percentage of sales from 14% to 18% year over year, helping mitigate the harsh margin compression noted in stainless in Q4 and for the whole of 2023 counter cycles are never enjoyable, particularly when undertaking significant operating model investments over a multiyear investment period.

總的來說，我想分享幾個證據。第四季度，我們迎來了三個卓越的增值企業加入我們的公司大家庭。我們在上次電話會議中介紹的 Norland, Inc. 現已加入 TSAprocessing 和 Hudson toolsteel Corporation。Tsa 總部位於休斯敦，30 多年來一直提供卓越的收費處理能力，業務遍及中西部和南部各州。Hudson 工具鋼總部位於加州塞里托斯，20 年來一直供應高品質和特級碳素及合金工具鋼，業務遍及東海岸和中西部。Hudson 的加入使 Ryerson 能夠在 2023 年將 Hudson 的技能組合與工具鋼和南方工具鋼相結合，透過有機方式和收購來創建無內胎鋼卓越中心，Ryerson 將其銷售額的增值百分比從 14% 提高到年比成長18%，幫助緩解不銹鋼在第四季度和整個2023 年逆週期中的嚴重利潤壓縮從來都不是令人愉快的，特別是在多年投資期內進行重大營運模式投資時。

Keeping to the bigger picture with clarity and focus. We're skating to where the puck is going. And then we plan on targeted in the net as we transition back to an industrial metals upturn, whose precise timing we all know, but when it comes, we'll be ready to make the most of it for the benefit of Ryerson stakeholders.

保持清晰和專注的大局。我們正在滑向冰球要去的地方。然後，當我們轉向工業金屬好轉時，我們計劃以網路為目標，我們都知道其確切時機，但當它到來時，我們將準備充分利用它，以造福瑞爾森利益相關者。

With that, I'll now turn the call over to our Chief Operating Officer, Mike Burbach, to further discuss the pricing and demand environment.

現在，我將把電話轉給我們的營運長 Mike Burbach，以進一步討論定價和需求環境。

Thank you, Eddie, and good morning, everyone. Overall, Ryerson's fourth quarter revenue of $1.1 billion came in line with our guidance expectations with an average sell price of $2,472 per ton and sales volume of 450,000 tons. Average sell price per ton was down 5.2% quarter over quarter at $2,472 per ton, which was slightly below the lower range of our guidance expectations primarily due to weaker than expected conditions in stainless consuming end markets. The index for domestic hot-rolled coil prices increased approximately 40% over the quarter in response to mills, increasing prices five times from late September to late November. While we realized increases in spot pricing as the quarter progressed, our average sell price was lower quarter over quarter due to delayed pricing impact from our contractual customers. Our bright metals franchise was affected by continued declining LME nickel and LME aluminum prices during the fourth quarter due to continued global oversupply.

謝謝你，艾迪，大家早安。總體而言，瑞爾森第四季營收為 11 億美元，符合我們的指導預期，平均售價為每噸 2,472 美元，銷量為 45 萬噸。每噸平均售價較上季下降 5.2%，至每噸 2,472 美元，略低於我們指引預期的下限，主要是由於不銹鋼消費終端市場的狀況弱於預期。受鋼廠的影響，國內熱軋板捲價格指數本季上漲約 40%，從 9 月下旬到 11 月下旬價格上漲了五倍。雖然隨著本季的進展，我們意識到現貨定價有所增加，但由於合約客戶的定價影響延遲，我們的平均售價季減。由於全球供應持續過剩，第四季度 LME 鎳和 LME 鋁價格持續下跌，影響了我們的亮金屬特許經營權。

Turning to the demand environment. Broadly speaking, seasonal demand slowdowns impacted activity overall in the fourth quarter as reflected by weak PMIs and a deceleration of industrial production for RS&I sales volumes of 450,000 tons were 5.9% lower quarter over quarter. And within our guidance expectations, volume decreases were led by a slowdown from end markets related to consumer goods in industrial manufacturing. For the full year 2023 MSCI. shipments increased 1.5%, while Ryerson shipments decreased by 4.8%. The difference in Ryerson's year-over-year volumes compared to the overall industry can partially be attributed by our end markets and product mix as we don't sell heavily into the automotive aerospace or nonresidential construction end markets, which were industries with strong growth over 2023. Our bright metals franchise outperformed the MSIMICI., but was eclipsed by underperformance in heavier weighted carbon flat rolled products, primarily weighted towards the consumer. Despite the decrease in overall tons, we saw full year shipment increases in our commercial ground transportation and oil and gas end markets following the strength of Class eight truck orders and rig count.

轉向需求環境。總體而言，季節性需求放緩影響了第四季度的整體活動，PMI 疲軟和工業生產減速反映了這一點，RS&I 銷量為 45 萬噸，環比下降 5.9%。在我們的指導預期範圍內，銷售量下降是由於工業製造消費品相關終端市場放緩所致。2023 年全年 MSCI。出貨量成長 1.5%，而瑞爾森出貨量下降 4.8%。與整個產業相比，瑞爾森的同比銷售差異部分歸因於我們的終端市場和產品組合，因為我們並沒有大量向汽車航空航太或非住宅建築終端市場銷售產品，而這些產業在過去幾年中增長強勁。 2023 年。我們的光亮金屬系列產品的表現優於 MSIMICI，但由於較重的碳扁軋產品（主要面向消費者）的表現不佳而黯然失色。儘管總噸數有所下降，但隨著八級卡車訂單和鑽機數量的強勁，我們的商業地面運輸以及石油和天然氣終端市場的全年出貨量有所增加。

Finally, I would like to note that we are continuously working to provide our customers with ever-better experiences through our products network and services while investing to meet customers' increasing needs from emerging trends through our modernized facilities and increased capabilities. In that regard, Norland, TSA and Hudson are great additions to our service offerings. As we close out the year, our value add percentage of sales has increased to 18%, growing from approximately 14% a year ago. And we reiterate our target of at least 20%.

最後，我想指出的是，我們不斷努力透過我們的產品網路和服務為客戶提供更好的體驗，同時透過我們的現代化設施和增強的能力進行投資，以滿足新興趨勢中客戶日益增長的需求。在這方面，Norland、TSA 和 Hudson 是我們服務內容的重要補充。年底時，我們的銷售加值百分比已從一年前的約 14% 增加到 18%。我們重申至少 20% 的目標。

And with that, I'll turn the call over to Jim for Q4 financial highlights as well as our first quarter 2024 outlook.

接下來，我將把電話轉給 Jim，了解第四季度的財務亮點以及我們 2024 年第一季的展望。

Thank you, Mike. And good morning, everyone. During the fourth quarter, we exceeded our guidance on earnings per share, generated positive cash flow, maintained our net leverage ratio within range and return cash to shareholders through dividends and share repurchases while continuing to execute our organic and acquisition growth investments.

謝謝你，麥克。大家早安。第四季度，我們超越了每股盈餘指引，產生了正現金流，將淨槓桿率維持在一定範圍內，並透過股利和股票回購向股東返還現金，同時繼續執行我們的有機和收購成長投資。

Before discussing guidance for the first quarter, I would like to highlight the drivers for our fourth quarter performance compared to our guidance expectations in the quarter, we generated $26 million of adjusted EBITDA, excluding LIFO. This came in just below the low end of our guidance range of $28 million to $32 million and was driven by pricing and margin pressure most acutely in our stainless steel franchise, which represents approximately 25% of our revenue. Meanwhile, our earnings per share of $0.74 was notably higher than our guidance range of $0.18 to $0.22 per share. Beat on earnings per share was driven largely by the LIFO income recognized over the quarter, which was driven by continued falling costs through the quarter and was representative of the continued market price declines realized in our bright metals franchise. When looking to the first quarter of 2024, we expect volumes to be up sequentially compared to the fourth quarter, in line with normal seasonality and up 8% to 10%. As such, we expect first quarter revenues to be in the range of $1.21 billion to $1.25 billion, with average selling price up 1% to 3%. Based on these expectations, we forecast adjusted EBITDA for the first quarter of 2024, excluding LIFO, in the range of $58 million to $62 million and earnings in the range of $0.24 to $0.34 per diluted share. We expect the impact of flow to be relatively neutral in the first quarter in the fourth quarter, we generated $90 million of cash flow from our operations, which included $15 million released from lower working capital requirements. We ended the period with $436 million of total debt and $382 million of net debt. Ryerson's net leverage ratio ended the year at 1.7 times and remains within our leverage target range of 0.5 times to 2.0 times. While the company's available Global Liquidity remains healthy at $656 million for the full year, we generated $365 million of operating cash. In the fourth quarter, we invested $25 million on capital expenditures, which included new equipment at our service center at University Park, Illinois, as well as automation and expansion at our Shelbyville, Kentucky facility. Our full year capital expenditures of $122 million also included an expansion of our Atlanta facility investment in a new facility in Las Vegas, Nevada automation at our Portage, Indiana laser and fabrication Center, a state-of-the-art cut-to-length line in Dallas and the rollout of SAP in our South region for ERP uniformity across our general line service center business.

在討論第一季度的指導之前，我想強調一下與本季度的指導預期相比，我們第四季度業績的驅動因素，我們產生了 2600 萬美元的調整後 EBITDA（不包括後進先出法）。這一數字略低於我們 2,800 萬至 3,200 萬美元指導範圍的下限，是由我們不銹鋼特許經營業務中最嚴重的定價和利潤壓力推動的，該特許經營業務約占我們收入的 25%。同時，我們的每股收益為 0.74 美元，明顯高於我們每股 0.18 美元至 0.22 美元的指導範圍。每股盈餘的成長主要是由本季確認的後進先出收入推動的，這是由本季成本持續下降推動的，代表了我們的亮金屬特許經營權實現的市場價格持續下降。展望 2024 年第一季度，我們預計銷售量將比第四季連續成長，符合正常季節性，成長 8% 至 10%。因此，我們預計第一季營收將在 12.1 億美元至 12.5 億美元之間，平均售價將上漲 1% 至 3%。根據這些預期，我們預計 2024 年第一季調整後的 EBITDA（不包括後進先出法）將在 5,800 萬美元至 6,200 萬美元之間，攤薄後每股收益將在 0.24 美元至 0.34 美元之間。我們預計第一季流量的影響相對中性，第四季度我們從營運中產生了 9,000 萬美元的現金流，其中包括從較低的營運資金需求中釋放的 1,500 萬美元。期末時，我們的總債務為 4.36 億美元，淨債務為 3.82 億美元。截至年底，瑞爾森的淨槓桿率為 1.7 倍，仍處於我們 0.5 倍至 2.0 倍的槓桿目標範圍內。儘管該公司全年可用的全球流動性保持在 6.56 億美元的健康水平，但我們仍產生了 3.65 億美元的營運現金。第四季度，我們投資了 2500 萬美元的資本支出，其中包括伊利諾伊州大學公園服務中心的新設備，以及肯塔基州謝爾比維爾工廠的自動化和擴展。我們全年資本支出為1.22 億美元，其中還包括擴大我們對亞特蘭大工廠的投資，在內華達州拉斯維加斯新建一座自動化工廠，位於印第安納州波蒂奇雷射和製造中心，該中心是最先進的定長切割工廠達拉斯線以及我們南部地區 SAP 的推出，以實現我們總線服務中心業務 ERP 的統一。

As we look forward to internal growth strategic initiatives in 2024, we anticipate full year capital expenditures to be around $110 million. This figure comprises base maintenance and growth CapEx includes completion of our state-of-the-art facility in University Park, Illinois and the expansion of our facility in Shelbyville, Kentucky. The investments we are making are expected to drive better customer experiences, enhance long long-term potential of our equipment, improve asset utilization, increase productivity and provide a safer operating environment for our employees. We are very excited about the modernization efforts taking place across our network and the better customer experiences they will provide to our customer base.

由於我們期待 2024 年的內部成長策略舉措，我們預計全年資本支出約為 1.1 億美元。該數字包括基礎維護和成長資本支出，包括伊利諾伊州大學公園最先進設施的竣工以及肯塔基州謝爾比維爾設施的擴建。我們正在進行的投資預計將帶來更好的客戶體驗，增強我們設備的長期潛力，提高資產利用率，提高生產力，並為我們的員工提供更安全的操作環境。我們對整個網路所進行的現代化努力以及它們將為我們的客戶群提供的更好的客戶體驗感到非常興奮。

Turning to shareholder returns. Ryerson returned $12.6 million in the quarter, which was comprised of $6.3 million in dividends and $6.3 million in share repurchases. We paid a quarterly dividend of $0.1850 and per share and have announced the first quarter cash dividend of $0.1875 cents per share. Our 10th consecutive raise as for share repurchases after repurchasing just under 220,000 shares for approximately $6 million in the open market during the quarter, we currently have approximately $39 million remaining on our $100 million authorization, which expires in April of 2025.

轉向股東回報。瑞爾森本季回報 1,260 萬美元，其中包括 630 萬美元的股息和 630 萬美元的股票回購。我們支付了每股 0.1850 美元的季度股息，並宣布第一季現金股息為每股 0.1875 美分。本季度，我們在公開市場以約600 萬美元的價格回購了近22 萬股股票，這是我們連續10 次進行股票回購融資，目前我們的1 億美元授權還剩約3,900 萬美元，該授權將於2025 年4 月到期。

On a full year basis, Ryerson returned approximately $139 million to shareholders, which comprises of $114 million for 3.3 million shares repurchased and $0.72 of dividends declared per share during the year due to secondary share sales by Platinum Equity, our free-floating shares increased from 57% to 88.5%. As we look forward to 2024 and beyond, we will continue to prudently evaluate our shareholder return opportunities as well as our overall capital allocation strategy to maximize long-term shareholder value.

全年來看，瑞爾森向股東返還約1.39 億美元，其中包括回購330 萬股股票的1.14 億美元，以及由於Platinum Equity 二次出售而在年內宣派的每股股息0.72 美元，我們的自由流通股從57% 至 88.5%。展望2024年及以後，我們將持續審慎評估股東回報機會以及整體資本配置策略，以達到長期股東價值最大化。

With that, I'll turn the call over to Molly to provide further detail on our fourth quarter and full year financial results.

接下來，我會將電話轉給莫莉，以提供有關我們第四季度和全年財務業績的更多詳細資訊。

Thank you, Jan, and good morning, everyone. In the fourth quarter of 2023, Ryerson reported net sales of $1.1 billion, which was 11% lower sequentially, driven by roughly an equal split of lower volumes. 3m's gross margin of 22.2% was an expansion of 220 basis points versus previous quarter. Excluding LIFO, gross margin fell 40 basis points from the third quarter to 16.9% as average selling price for our sales mix decreased faster than cost of goods sold.

謝謝你，簡，大家早安。2023 年第四季，瑞爾森的淨銷售額為 11 億美元，季減 11%，主要是因為銷售量下降的比例大致相同。3m 的毛利率為 22.2%，比上一季成長了 220 個基點。不計後進先出法，毛利率較第三季下降 40 個基點至 16.9%，因為我們銷售組合的平均售價下降速度快於銷售成本。

On the expense side, warehousing delivery, selling, general and administrative expenses increased 6% sequentially to $204 million, driven primarily by higher depreciation expense, higher expenses related to recent acquisitions and higher reorganization expenses related to ERP systems conversions and start-up costs associated with the University Park Service Center. These increased expenses were partially offset by lower personnel expenses, lower delivery expenses and lower fixed and variable operating expenses.

在費用方面，倉儲交付、銷售、一般和管理費用環比增長6%，達到2.04 億美元，主要是由於折舊費用增加、與近期收購相關的費用增加以及與ERP 系統轉換和啟動成本相關的重組費用增加。與大學園服務中心。這些增加的費用被較低的人員費用、較低的交付費用以及較低的固定和可變營運費用部分抵消。

For the fourth quarter of 2023, net income attributable to Ryerson was $25.8 million or $0.74 per diluted share compared to net income attributable to Ryerson of $35 million and diluted earnings per share of $1 in the prior quarter. For the full year, net income attributable to Ryerson was $145.7 million, or $4.10 per diluted share.

2023 年第四季，瑞爾森應佔淨利為2,580 萬美元，即稀釋後每股收益0.74 美元，而上一季瑞爾森應佔淨利為3,500 萬美元，稀釋後每股收益為1美元。全年歸屬於瑞爾森的淨利潤為 1.457 億美元，即稀釋後每股收益 4.10 美元。

Finally, Ryerson achieved adjusted EBITDA, excluding LIFO of $25.9 million in the fourth quarter of 2023, which compares to $45 million in the prior quarter. Free cash flow generation was $65.1 million in the fourth quarter and compares to $56.9 million in the prior quarter period. For the full year 2023. Ryerson has generated $231 million in adjusted EBITDA, excluding LIFO and $244 million in free cash flow. And with this I'll turn the call back to Andy.

最後，瑞爾森在 2023 年第四季實現了 2,590 萬美元的調整後 EBITDA（不包括後進先出法），而上一季為 4,500 萬美元。第四季自由現金流量為 6,510 萬美元，上一季為 5,690 萬美元。2023 年全年。瑞爾森已產生 2.31 億美元的調整後 EBITDA（不包括後進先出法）和 2.44 億美元的自由現金流。這樣我就會把電話轉回給安迪。

Thank you, Mollie. Overall, in the fourth quarter of 2023 and When reflecting on all of 2023 from Ryerson navigated through headwinds of mix, pricing and slow demand, which were characterized by a continuation of decreasing bright metals commodities prices driven by global oversupply as well as a holiday related slowdown in industrial and consumer purchasing activity. Despite the challenges of navigating through a contractionary manufacturing environment, our business generated cash from our operating model as well as our balance sheet invested in the growth of our network through new and enhanced service centers, acquisitions and technological integrations to build out our next-generation operating model and prudently deliver returns to shareholders.

謝謝你，莫莉。總體而言，2023 年第四季以及瑞爾森(Ryerson) 回顧2023 年全年時，經歷了組合、定價和需求放緩等不利因素，其特點是受全球供應過剩以及假期相關影響，明亮金屬大宗商品價格持續下跌。工業和消費者採購活動放緩。儘管面臨緊縮的製造環境的挑戰，我們的業務仍從我們的營運模式和資產負債表中產生了現金，並透過新的和增強的服務中心、收購和技術整合投資於網路的成長，以構建我們的下一代產品。經營模式，審慎為股東帶來回報。

As we look at the full year 2023. It's evident we faced a terrain change in the market landscape from 2022, with both consumer in industrial manufacturing related end markets experiencing demand slowdowns combined with corresponding challenges in metals commodities, pricing related to global and domestic supply and demand imbalances. While Ryerson navigated the headwinds of this market cycle, we remain resolute in continuing to invest in the modernization expansion and integration of our service center network, which serves as the engine of growth in our operating model, 2023 marked the 2nd year of our most significant investment cycle in more than a generation. Our investments in modernized facilities, increased value added services and European network integration are aligned with our long-term vision for Ryerson with the goal of adding value to our customers through greater levels of service, speed and efficiency and providing the industry's best customer experience.

展望 2023 年全年。顯然，從 2022 年開始，我們面臨著市場格局的變化，工業製造相關終端市場的消費者都經歷了需求放緩，同時金屬大宗商品、與全球和國內供需失衡相關的定價面臨相應挑戰。儘管瑞爾森克服了這個市場週期的逆風，但我們仍然堅定地繼續投資於服務中心網路的現代化擴張和整合，這是我們營運模式成長的引擎，2023 年是我們最重要的第二年投資週期超過一代。我們對現代化設施、加值服務和歐洲網路整合的投資符合我們對瑞爾森的長期願景，即透過更高水準的服務、速度和效率為客戶增加價值，並提供業界最佳的客戶體驗。

As we look ahead to the first quarter and the rest of 2024 and over the Rainbow, we firmly believe in our services as a trusted partner to our customers provides a greater good as recyclable industrial metals are the gift that keeps giving and which support and enable emerging trends of near-shoring, technological advancement and sustainability. Even more importantly, investment in industrial metals and manufacturing continues to show its undisputed magic in generating higher quality of life and well-being for human time when we're smart enough to invest what is required, the investments Ryerson is making throughout our network of intelligently connected industrial metal service centers is to deliver those great customer experiences with Joy speed, scale value, added consistency to position Ryerson stakeholders well for an enduring and valuable future.

當我們展望第一季和2024 年剩餘時間以及彩虹期間，我們堅信，作為客戶值得信賴的合作夥伴，我們的服務可以為客戶提供更大的好處，因為可回收工業金屬是不斷給予、支持和實現的禮物近岸外包、技術進步和永續性的新興趨勢。更重要的是，當我們足夠聰明地投資所需的東西時，對工業金屬和製造業的投資繼續顯示出其無可爭議的魔力，為人類創造更高的生活品質和福祉，瑞爾森在在我們的整個網路中進行的投資智慧連接的工業金屬服務中心旨在透過Joy 速度、規模價值和附加一致性提供卓越的客戶體驗，為瑞爾森利益相關者提供良好的定位，打造持久且有價值的未來。

With that, we look forward to your questions. Operator?

因此，我們期待您的提問。操作員？

Thank you. Ladies and gentlemen, if you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone please make sure your mute function is turned off to allow your signal to reach our equipments. Again, press star one to ask a question. We'll pause for just a moment to allow everyone an opportunity to signal.

謝謝。女士們先生們，如果您想提問，請按電話鍵盤上的一號星號。如果您使用免持電話，請確保您的靜音功能已關閉，以便您的訊號到達我們的裝置。再按星號 1 來提問。我們將暫停片刻，讓每個人都有機會發出信號。

Thank you.

謝謝。

And as a reminder, it was star one if you had a question at this time.

提醒一下，如果您此時有問題，那就是第一顆星。

Yes, hello?

是的你好？

Yes, we'll take our first question from Sri now Kesavan with KeyBanc Capital Markets. Your line is open. Please go ahead and sorry, your line is up and you may want to check your mute button and I'm not hearing response from that line. Again, if you had a question, it was star one. And at this time, I don't have any questions holding, Mr. Lee, and I'll turn the conference back to you for any additional remarks.

是的，我們將回答來自 KeyBanc Capital Markets 現任 Kesavan 的 Sri 的第一個問題。您的線路已開通。請繼續，抱歉，您的線路已接通，您可能需要檢查靜音按鈕，但我沒有聽到該線路的反應。再說一遍，如果你有問題，那就是明星問題。李先生，目前我沒有任何問題，我將把會議轉回給你，請你發表補充意見。

Thank you. We appreciate your continued support of and interest in Ryerson. Stay safe Be well and this call Wait, wait. We've got a late arrival.

謝謝。我們感謝您對瑞爾森大學的持續支持與關注。保持安全 保持健康，這叫等等，等等。我們遲到了。

And we do have a question from [Srinath Kastavan] with KeyBanc Capital Markets. Your line is open, sir, please go ahead.

我們確實有來自 KeyBanc Capital Markets 的 [Srinath Kastavan] 提出的問題。您的線路已接通，先生，請繼續。

I-mode will know yes, there you are.

I-mode 會知道是的，你就在那裡。

Yes, sorry, I just wanted to ask about the $30 million of adjustments that you have for Q1 24 guidance. Could you elaborate on that on the adjustments?

是的，抱歉，我只是想詢問有關 24 年第一季指引的 3000 萬美元調整。能否詳細介紹一下調整情況？

Yes, thanks. Are there any non-cash items or?

對了謝謝。有沒有非現金物品？

Yes, we we expect to continue to have pre-operating and startup costs as we bring up the University Park. And as we continue the construction and modernization of Shelbyville, Kentucky. And also as we continue to have really come back from the ERP conversions in the fourth quarter of 2023, particularly across our largest business units. So so we'll have some some adjustments in the first quarter, but all in all, all in good cause for good effect.

是的，我們預計在建造大學園區時將繼續產生預先營運和啟動成本。隨著我們繼續肯塔基州謝爾比維爾的建設和現代化建設。而且我們在 2023 年第四季繼續從 ERP 轉換中真正恢復過來，特別是在我們最大的業務部門。因此，我們將在第一季進行一些調整，但總而言之，一切都是為了好的效果。

And do you expect this to continue for the next few quarters?

您預計這種情況會持續到接下來的幾季嗎？

Well, I think as University Park starts up in the second quarter and operationalize is and really comes into its full operational curve that we expect those adjustments to come down at University Park. They'll probably peak in Shelbyville, Kentucky in the second and third quarter of this year. And we expect to be able to move through any of the remaining residuals or remnant on the SAPERP. conversion in the second half of 2023, that will start to tail out in 2024.

嗯，我認為，隨著大學公園在第二季度啟動並投入運營，並且真正進入其全面運營曲線，我們預計這些調整將在大學公園進行。他們可能會在今年第二和第三季在肯塔基州謝爾比維爾達到頂峰。我們希望能夠處理 SAPERP 上的任何剩餘殘留或剩餘部分。 2023 年下半年進行的轉換將在 2024 年開始減少。

Got it. Thanks.

知道了。謝謝。

Thank you.

謝謝。

All right. And there are no other questions holding at this time.

好的。目前沒有其他問題。

All right, thank you.

好吧。謝謝。

And Mr. Lehner, did you have any additional remarks?

Lehner 先生，您還有什麼補充意見嗎？

I do not right,

我不對，

ladies and gentlemen, that will conclude today's program, and we thank you for your participation. You may disconnect your phone line at this.

女士們、先生們，今天的節目到此結束，我們感謝你們的參與。您可以在此時斷開電話線。