MRC Global Announces First Quarter 2025 Results
- Backlog increased 8% sequentially to $603 million, with 13% growth over year-end levels
- Sales increased 7% compared to Q4 2024
- Strong cash position with $570 million in available liquidity
- Implementation of share buyback program to return value to shareholders
- Gas Utilities sector showed growth with 3% YoY increase
- Net income from continuing operations decreased to $8 million from $20 million in Q1 2024
- Overall sales declined 8% compared to Q1 2024
- Adjusted EBITDA margin decreased to 5.1% from 7.3% in Q1 2024
- U.S. sales dropped 11% year-over-year
- $30 million loss recorded from discontinued operations in Canada
Insights
MRC Global posts mixed Q1 2025: Sequential 7% revenue growth but year-over-year declines; backlog growth signals potential improvement ahead.
MRC Global's Q1 2025 results present a divergent financial picture with clear strengths and weaknesses. The company reported
The company's profitability metrics show compression compared to the prior year. Gross profit margin slipped to
Most significantly, the
Operating efficiency metrics reveal challenges, with SG&A expenses increasing both in absolute terms (
The balance sheet remains reasonably positioned with
Forward-looking indicators show promise. The
Sector performance was mixed, with Gas Utilities (
The initiation of share repurchases in Q2 signals management's confidence, with the CEO stating that recent market volatility has created opportunities to buy shares at "attractive price levels" and return capital to shareholders.
HOUSTON, May 06, 2025 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE: MRC) today announced first quarter 2025 results from continuing operations.
First Quarter 2025 Financial Highlights:
- Operating cash flows provided by continuing operations of
$21 million - Sales of
$712 million , a7% increase compared to the fourth quarter of 2024 - Gross profit, as a percentage of sales, of
19.9% - Adjusted Gross Profit, as a percentage of sales, of
21.5% - Net income from continuing operations of
$8 million - Adjusted EBITDA of
$36 million , or5.1% of sales - Net working capital, as a percentage of sales, of
11.7% - Net debt leverage ratio of 1.7 times
- First quarter backlog of
$603 million , an8% sequential improvement
Rob Saltiel, MRC Global’s President and CEO stated, “First quarter results were strong across all of our key metrics, consistent with our recent press release. Our business has continued to perform well into the second quarter, with our backlog as of April 30, 2025, up
"I am also pleased that we have begun execution of our share buyback program in the second quarter. Recent stock market volatility has provided an opportunity to buy our shares at attractive price levels and return cash to our shareholders." Mr. Saltiel added.
Net income from continuing operations for the first quarter of 2025 was
Net loss attributable to common stockholders for the first quarter of 2025 was (
MRC Global’s first quarter of 2025 gross profit was
Adjusted Net Income (Loss) from continuing operations, Adjusted Net (Loss) Income Attributable to Common Stockholders, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Gross Profit, Adjusted Gross Profit margin, Net Debt, Net Debt Leverage Ratio and Adjusted selling, general and administrative (SG&A) expense are all non-GAAP measures. Please refer to the reconciliation of each of these measures to the nearest GAAP measure in this release.
Selling, general and administrative (SG&A) expenses were
Adjusted EBITDA was
An income tax expense of
The sale of the Canada business closed on March 14, 2025, the results of which, are reflected in discontinued operations for all periods presented. Canada discontinued operational losses, including operating losses and the loss incurred on the sale, were
Sales
The company’s sales were
Sales by Segment
U.S. sales in the first quarter of 2025 were
Sequentially, as compared to the fourth quarter of 2024, U.S. sales increased
International sales in the first quarter of 2025 were
Sequentially, as compared to the previous quarter, International sales were down
Sales by Sector
Gas Utilities sector sales, which are primarily U.S. based, were
Sequentially, as compared to the fourth quarter of 2024, the Gas Utilities sector sales increased
DIET sector sales in the first quarter of 2025 were
Sequentially, as compared to the previous quarter, DIET sector sales were up
PTI sector sales in the first quarter of 2025 were
Sequentially, as compared to the prior quarter, PTI sector sales increased
Backlog
As of March 31, 2025, the company's backlog was
Balance Sheet and Cash Flow
As of March 31, 2025, the cash balance was
Conference Call
The company will hold a conference call to discuss its first quarter 2025 results at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on May 7, 2025. To participate in the call, please dial 201-689-8261 and ask for the MRC Global conference call prior to the start time. To access the conference call, live over the Internet, please log onto the web at www.mrcglobal.com and go to the “Investors” page of the company’s website. For those who cannot listen to the live call, a replay will be available through May 21, 2025, and can be accessed by dialing 201-612-7415 and using pass code 13751572#. Also, an archive of the webcast will be available shortly after the call at www.mrcglobal.com for 90 days.
About MRC Global Inc.
Headquartered in Houston, Texas, MRC Global (NYSE: MRC) is the leading global distributor of pipe, valves, fittings (PVF) and other infrastructure products and services to diversified end-markets including the gas utilities, downstream, industrial and energy transition, and production and transmission infrastructure sectors. With over 100 years of experience, MRC Global has provided customers with innovative supply chain solutions, technical product expertise and a robust digital platform from a worldwide network of approximately 200 locations including valve and engineering centers. The company’s unmatched quality assurance program offers approximately 200,000 SKUs from over 7,100 suppliers, simplifying the supply chain for over 8,300 customers. Find out more at www.mrcglobal.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words such as “will,” “expect,” “expected,” “anticipating,” “intend,” “believes,” "on-track," “well positioned,” “strong position,” “looking forward,” “guidance,” “plans,” “can,” "target," "targeted" and similar expressions are intended to identify forward-looking statements.
Statements about the company’s business, including its strategy, its industry, the company’s future profitability, the company’s guidance on its sales, adjusted EBITDA, adjusted EBITDA margin, tax rate, capital expenditures, achieving cost savings and cash flow, debt reduction, liquidity, growth in the company’s various markets and the company’s expectations, beliefs, plans, strategies, objectives, prospects and assumptions are not guarantees of future performance. These statements are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, most of which are difficult to predict and many of which are beyond MRC Global’s control, including the factors described in the company’s SEC filings that may cause the company’s actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements.
These risks and uncertainties include (among others) decreases in capital and other expenditure levels in the industries that the company serves; U.S. and international general economic conditions; geopolitical events; decreases in oil and natural gas prices; unexpected supply shortages; loss of third-party transportation providers; cost increases by the company’s suppliers and transportation providers; increases in steel prices, which the company may be unable to pass along to its customers which could significantly lower the company’s profit; the company’s lack of long-term contracts with most of its suppliers; suppliers’ price reductions of products that the company sells, which could cause the value of its inventory to decline; decreases in steel prices, which could significantly lower the company’s profit; a decline in demand for certain of the products the company distributes if tariffs and duties on these products are imposed or lifted; holding more inventory than can be sold in a commercial time frame; significant substitution of renewables and low-carbon fuels for oil and gas, impacting demand for the company’s products; risks related to adverse weather events or natural disasters; environmental, health and safety laws and regulations and the interpretation or implementation thereof; changes in the company’s customer and product mix; the risk that manufacturers of the products that the company distributes will sell a substantial amount of goods directly to end users in the industry sectors that the company serves; failure to operate the company’s business in an efficient or optimized manner; the company’s ability to compete successfully with other companies; the company’s lack of long-term contracts with many of its customers and the company’s lack of contracts with customers that require minimum purchase volumes; inability to attract and retain employees or the potential loss of key personnel; adverse health events, such as a pandemic; interruption in the proper functioning of the company’s information systems; the occurrence of cybersecurity incidents; risks related to the company’s customers’ creditworthiness; the success of acquisition strategies; the potential adverse effects associated with integrating acquisitions and whether these acquisitions will yield their intended benefits; impairment of the company’s goodwill or other intangible assets; adverse changes in political or economic conditions in the countries in which the company operates; the company’s significant indebtedness; the dependence on the company’s subsidiaries for cash to meet parent company obligations; changes in the company’s credit profile; potential inability to obtain necessary capital; the sufficiency of the company’s insurance policies to cover losses, including liabilities arising from litigation; product liability claims against the company; pending or future asbestos-related claims against the company; exposure to U.S. and international laws and regulations, regulating corruption, limiting imports or exports or imposing economic sanctions; risks relating to ongoing evaluations of internal controls required by Section 404 of the Sarbanes-Oxley Act; risks related to changing laws and regulations including trade policies and tariffs; and the potential share price volatility and costs incurred in response to any shareholder activism campaigns.
For a discussion of key risk factors, please see the risk factors disclosed in the company’s SEC filings, which are available on the SEC’s website at www.sec.gov and on the company’s website, www.mrcglobal.com. MRC Global’s filings and other important information are also available on the Investors page of the company’s website at www.mrcglobal.com.
Undue reliance should not be placed on the company’s forward-looking statements. Although forward-looking statements reflect the company’s good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the company’s actual results, performance or achievements or future events to differ materially from anticipated future results, performance or achievements or future events expressed or implied by such forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except to the extent required by law.
Contact:
| Monica Broughton |
| VP, Investor Relations & Treasury |
| MRC Global Inc. |
| Monica.Broughton@mrcglobal.com |
| 832-308-2847 |
| MRC Global Inc. Condensed Consolidated Balance Sheets (Unaudited) (in millions, except shares) | ||||||||
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 63 | $ | 63 | ||||
| Accounts receivable, net | 442 | 378 | ||||||
| Inventories, net | 460 | 415 | ||||||
| Other current assets | 30 | 29 | ||||||
| Current assets of discontinued operations | 4 | 36 | ||||||
| Total current assets | 999 | 921 | ||||||
| Long-term assets: | ||||||||
| Operating lease assets | 171 | 170 | ||||||
| Property, plant and equipment, net | 95 | 89 | ||||||
| Other assets | 36 | 37 | ||||||
| Intangible assets: | ||||||||
| Goodwill, net | 264 | 264 | ||||||
| Other intangible assets, net | 139 | 143 | ||||||
| Total assets | $ | 1,704 | $ | 1,624 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | $ | 434 | $ | 329 | ||||
| Accrued expenses and other current liabilities | 121 | 124 | ||||||
| Operating lease liabilities | 32 | 31 | ||||||
| Current portion of debt obligations | 4 | 3 | ||||||
| Current liabilities of discontinued operations | 2 | 21 | ||||||
| Total current liabilities | 593 | 508 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt | 367 | 384 | ||||||
| Operating lease liabilities | 153 | 153 | ||||||
| Deferred income taxes | 39 | 35 | ||||||
| Other liabilities | 27 | 28 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Common stock, | 1 | 1 | ||||||
| Additional paid-in capital | 1,777 | 1,779 | ||||||
| Retained deficit | (674 | ) | (652 | ) | ||||
| Less: Treasury stock at cost: 24,216,330 shares | (375 | ) | (375 | ) | ||||
| Accumulated other comprehensive loss | (204 | ) | (237 | ) | ||||
| Total stockholders' equity | 525 | 516 | ||||||
| Total liabilities and stockholders' equity | $ | 1,704 | $ | 1,624 | ||||
| MRC Global Inc. Condensed Consolidated Statements of Operations (Unaudited) (in millions, except per share amounts) | ||||||||
| Three Months Ended | ||||||||
| March 31, | March 31, | |||||||
| 2025 | 2024 | |||||||
| Sales | $ | 712 | $ | 777 | ||||
| Cost of sales | 570 | 618 | ||||||
| Gross profit | 142 | 159 | ||||||
| Selling, general and administrative expenses | 124 | 120 | ||||||
| Operating income | 18 | 39 | ||||||
| Other (expense) income: | ||||||||
| Interest expense | (9 | ) | (8 | ) | ||||
| Other, net | — | (3 | ) | |||||
| Income from continuing operations before income taxes | 9 | 28 | ||||||
| Income tax expense from continuing operations | 1 | 8 | ||||||
| Net income from continuing operations | 8 | 20 | ||||||
| Loss from discontinued operations, net of tax | (30 | ) | (1 | ) | ||||
| Net (loss) income | (22 | ) | 19 | |||||
| Series A preferred stock dividends | — | 6 | ||||||
| Net (loss) income attributable to common stockholders | $ | (22 | ) | $ | 13 | |||
| Basic earnings (loss) per common share: | ||||||||
| Income from continued operations | $ | 0.09 | $ | 0.16 | ||||
| Loss from discontinued operations | (0.35 | ) | (0.01 | ) | ||||
| Basic (loss) earnings per common share | $ | (0.26 | ) | $ | 0.15 | |||
| Diluted earnings (loss) per common share: | ||||||||
| Income from continued operations | $ | 0.09 | $ | 0.16 | ||||
| Loss from discontinued operations | (0.35 | ) | (0.01 | ) | ||||
| Diluted (loss) earnings per common share | $ | (0.26 | ) | $ | 0.15 | |||
| Weighted-average common shares, basic | 85.7 | 84.7 | ||||||
| Weighted-average common shares, diluted | 85.7 | 86.1 | ||||||
| MRC Global Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in millions) | ||||||||
| Three Months Ended | ||||||||
| March 31, | March 31, | |||||||
| 2025 | 2024 | |||||||
| Operating activities | ||||||||
| Net income from continuing operations | $ | 8 | $ | 20 | ||||
| Adjustments to reconcile net income from continuing operations to net cash provided by continuing operations: | ||||||||
| Depreciation and amortization | 5 | 5 | ||||||
| Amortization of intangibles | 5 | 5 | ||||||
| Equity-based compensation expense | 4 | 4 | ||||||
| Deferred income tax expense | 1 | 2 | ||||||
| Other non-cash items | 2 | 3 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (59 | ) | (49 | ) | ||||
| Inventories | (44 | ) | 4 | |||||
| Other current assets | 5 | 2 | ||||||
| Accounts payable | 100 | 47 | ||||||
| Accrued expenses and other current liabilities | (6 | ) | (7 | ) | ||||
| Operating cash flows from continuing operations | 21 | 36 | ||||||
| Operating cash flows from discontinued operations | (7 | ) | 2 | |||||
| Net cash provided by operating activities | 14 | 38 | ||||||
| Investing activities | ||||||||
| Purchases of property, plant and equipment | (9 | ) | (6 | ) | ||||
| Other investing activities | — | 1 | ||||||
| Investing cash flows from continuing operations | (9 | ) | (5 | ) | ||||
| Investing cash flows from discontinued operations | 17 | — | ||||||
| Net cash provided by (used in) investing activities | 8 | (5 | ) | |||||
| Financing activities | ||||||||
| Payments on revolving credit facilities | (184 | ) | (14 | ) | ||||
| Proceeds from revolving credit facilities | 168 | 9 | ||||||
| Payments on debt obligations | — | (1 | ) | |||||
| Debt issuance costs paid | (1 | ) | — | |||||
| Dividends paid on preferred stock | — | (6 | ) | |||||
| Repurchases of shares to satisfy tax withholdings | (6 | ) | (5 | ) | ||||
| Financing cash flows from continuing operations | (23 | ) | (17 | ) | ||||
| Financing cash flows from discontinued operations | — | — | ||||||
| Net cash used in financing activities | (23 | ) | (17 | ) | ||||
| (Decrease) increase in cash | (1 | ) | 16 | |||||
| Effect of foreign exchange rate on cash | 1 | (1 | ) | |||||
| Cash -- beginning of period | 63 | 131 | ||||||
| Cash -- end of period | $ | 63 | $ | 146 | ||||
| MRC Global Inc. Supplemental Sales Information (Unaudited) (in millions) Disaggregated Sales by Segment and Sector |
| Three Months Ended |
| March 31, |
| U.S. | International | Total | ||||||||||
| 2025 | ||||||||||||
| Gas Utilities | $ | 273 | $ | — | $ | 273 | ||||||
| DIET | 162 | 58 | 220 | |||||||||
| PTI | 156 | 63 | 219 | |||||||||
| $ | 591 | $ | 121 | $ | 712 | |||||||
| 2024 | ||||||||||||
| Gas Utilities | $ | 265 | $ | — | $ | 265 | ||||||
| DIET | 202 | 65 | 267 | |||||||||
| PTI | 200 | 45 | 245 | |||||||||
| $ | 667 | $ | 110 | $ | 777 | |||||||
| MRC Global Inc. Supplemental Sales Information (Unaudited) (in millions) Sales by Product Line | ||||||||
| Three Months Ended | ||||||||
| March 31, | March 31, | |||||||
| Type | 2025 | 2024 | ||||||
| Line Pipe | $ | 72 | $ | 113 | ||||
| Carbon Fittings and Flanges | 90 | 96 | ||||||
| Total Carbon Pipe, Fittings and Flanges | 162 | 209 | ||||||
| Valves, Automation, Measurement and Instrumentation | 277 | 279 | ||||||
| Gas Products | 187 | 187 | ||||||
| Stainless Steel and Alloy Pipe and Fittings | 40 | 38 | ||||||
| General Products | 46 | 64 | ||||||
| $ | 712 | $ | 777 | |||||
| MRC Global Inc. Supplemental Information (Unaudited) Reconciliation of Gross Profit to Adjusted Gross Profit (a non-GAAP measure) (in millions) | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31, 2025 | Percentage of Revenue* | March 31, 2024 | Percentage of Revenue* | |||||||||||||
| Gross profit, as reported | $ | 142 | 19.9 | % | $ | 159 | 20.5 | % | ||||||||
| Depreciation and amortization | 5 | 0.7 | % | 5 | 0.6 | % | ||||||||||
| Amortization of intangibles | 5 | 0.7 | % | 5 | 0.6 | % | ||||||||||
| Increase in LIFO reserve | 1 | 0.1 | % | 1 | 0.1 | % | ||||||||||
| Adjusted Gross Profit | $ | 153 | 21.5 | % | $ | 170 | 21.9 | % | ||||||||
Notes to above:
* Does not foot due to rounding
The company defines Adjusted Gross Profit as sales, less cost of sales, plus depreciation and amortization, plus amortization of intangibles, plus inventory-related charges incremental to normal operations and plus or minus the impact of its LIFO inventory costing methodology. The company presents Adjusted Gross Profit because the company believes it is a useful indicator of the company’s operating performance without regard to items, such as amortization of intangibles, that can vary substantially from company to company depending upon the nature and extent of acquisitions of which they have been involved. Similarly, the impact of the LIFO inventory costing method can cause results to vary substantially from company to company depending upon which costing method they may elect. The company uses Adjusted Gross Profit as a key performance indicator in managing its business. The company believes that gross profit is the financial measure calculated and presented in accordance with U.S. generally accepted accounting principles that is most directly comparable to Adjusted Gross Profit.
| MRC Global Inc. Supplemental Information (Unaudited) Reconciliation of Selling, General and Administrative Expenses (SG&A) to Adjusted SG&A (a non-GAAP measure) (in millions) | ||||||||
| Three Months Ended | ||||||||
| March 31, | March 31, | |||||||
| 2025 | 2024 | |||||||
| Selling, general and administrative expenses | $ | 124 | $ | 120 | ||||
| Internal control remediation (1) | (2 | ) | — | |||||
| Non-recurring other legal and consulting costs | (1 | ) | — | |||||
| Activism response legal and consulting costs | — | (3 | ) | |||||
| Adjusted Selling, general and administrative expenses | $ | 121 | $ | 117 | ||||
Notes to above:
(1) Charges (pre-tax) for personnel expenses and professional fees related to the Company's internal control remediation efforts.
The company defines adjusted selling, general and administrative (SG&A) expenses as SG&A, restructuring expenses and other unusual items. The company presents adjusted SG&A because the company believes it is a useful indicator of the company’s operating performance. Among other things, adjusted SG&A measures the company’s operating performance without regard to certain non-recurring, non-cash or transaction-related expenses. The company uses adjusted SG&A as a key performance indicator in managing its business. The company believes that SG&A is the financial measure calculated and presented in accordance with U.S. Generally Accepted Accounting Principles that is most directly comparable to adjusted SG&A.
| MRC Global Inc. Supplemental Information (Unaudited) Reconciliation of Net Income to Adjusted EBITDA (a non-GAAP measure) (in millions) | ||||||||
| Three Months Ended | ||||||||
| March 31, | March 31, | |||||||
| 2025 | 2024 | |||||||
| Net (loss) income | $ | (22 | ) | $ | 19 | |||
| Loss from discontinued operations, net of tax | 30 | 1 | ||||||
| Net income from continuing operations | 8 | 20 | ||||||
| Income tax expense | 1 | 8 | ||||||
| Interest expense | 9 | 8 | ||||||
| Depreciation and amortization | 5 | 5 | ||||||
| Amortization of intangibles | 5 | 5 | ||||||
| Increase in LIFO reserve | 1 | 1 | ||||||
| Equity-based compensation expense (1) | 4 | 4 | ||||||
| Internal control remediation (2) | 2 | — | ||||||
| Non-recurring other legal and consulting costs | 1 | — | ||||||
| Activism response legal and consulting costs | — | 3 | ||||||
| Write off of debt issuance costs | — | 1 | ||||||
| Asset disposal (3) | — | 1 | ||||||
| Foreign currency losses | — | 1 | ||||||
| Adjusted EBITDA | $ | 36 | $ | 57 | ||||
Notes to above:
(1) Charges (pre-tax) recorded in SG&A.
(2) Charges (pre-tax) for personnel expenses and professional fees related to the Company's internal control remediation efforts.
(3) Charge (pre-tax) for an asset disposal in our International segment.
The company defines adjusted EBITDA as net income (loss) plus the loss from discontinued operations, net of tax, plus interest, income taxes, depreciation and amortization, amortization of intangibles, and certain other expenses, including non-cash expenses, (such as equity-based compensation, restructuring, changes in the fair value of derivative instruments, asset impairments, including inventory, long-lived asset impairments (including goodwill and intangible assets), inventory-related charges incremental to normal operations, charges related to internal control remediation and plus or minus the impact of its LIFO inventory costing methodology. The company presents adjusted EBITDA because the company believes adjusted EBITDA is a useful indicator of the company’s operating performance. Among other things, adjusted EBITDA measures the company’s operating performance without regard to certain non-recurring, non-cash or transaction-related expenses. Adjusted EBITDA, however, does not represent and should not be considered as an alternative to net income, cash flow from operations or any other measure of financial performance calculated and presented in accordance with GAAP. Because adjusted EBITDA does not account for certain expenses, its utility as a measure of the company’s operating performance has material limitations. Because of these limitations, the company does not view adjusted EBITDA in isolation or as a primary performance measure and uses other measures, such as net income and sales, to measure operating performance. See the company's Annual Report filed on Form 10-K for a more thorough discussion of the use of adjusted EBITDA.
| MRC Global Inc. Supplemental Information (Unaudited) Reconciliation of Net (Loss) Income to Adjusted Net Income from Continuing Operations (a non-GAAP measure) (in millions) | ||||||||
| Three Months Ended | ||||||||
| March 31, | March 31, | |||||||
| 2025 | 2024 | |||||||
| Net (loss) income | $ | (22 | ) | $ | 19 | |||
| Loss from discontinued operations, net of tax | 30 | 1 | ||||||
| Net income from continuing operations | 8 | 20 | ||||||
| Asset disposal, net of tax (1) | — | 1 | ||||||
| Internal control remediation, net of tax (2) | 2 | — | ||||||
| Non-recurring other legal and consulting costs, net of tax | 1 | — | ||||||
| Activism response legal and consulting costs, net of tax | — | 2 | ||||||
| Increase in LIFO reserve, net of tax | 1 | 1 | ||||||
| Adjusted Net Income from Continuing Operations | $ | 12 | $ | 24 | ||||
Notes to above:
(1) Charges (after-tax) for an asset disposal in our International segment.
(2) Charges (after-tax) for personnel expenses and professional fees related to the Company's internal control remediation efforts.
The company defines adjusted net income from continuing operations (a non-GAAP measure) as net (loss) income plus the loss from discontinued operations, net of tax, plus or minus the after-tax impact of items deemed non-standard and plus or minus the after-tax impact of its LIFO inventory costing methodology. The impact of the LIFO inventory costing methodology can cause results to vary substantially from company to company depending upon whether they elect to utilize LIFO and depending upon which method they may elect. After-tax impacts were determined using the company's U.S. blended statutory rate. The company presents adjusted net income from continuing operations because the company believes it provides useful comparisons of the company’s operating results to other companies, including those companies with whom we compete in the distribution of pipe, valves and fittings to the energy industry, without regard to the irregular variations from certain restructuring events not indicative of the on-going business. The company believes that net (loss) income is the financial measure calculated and presented in accordance with U.S. Generally Accepted Accounting Principles that is most directly compared to adjusted net income from continuing operations.
| MRC Global Inc. Supplemental Information (Unaudited) Reconciliation of Net Income Attributable to Common Stockholders to Adjusted Net Income Attributable to Common Stockholders (a non-GAAP measure) (in millions, except per share amounts) | ||||||||
| Three Months Ended | ||||||||
| March 31, 2025 | ||||||||
| Amount | Per Share* | |||||||
| Net loss attributable to common stockholders | $ | (22 | ) | $ | (0.26 | ) | ||
| Loss from discontinued operations, net of tax | 30 | 0.35 | ||||||
| Internal control remediation, net of tax (1) | 2 | 0.02 | ||||||
| Non-recurring other legal and consulting costs, net of tax | 1 | 0.01 | ||||||
| Increase in LIFO reserve, net of tax | 1 | 0.01 | ||||||
| Adjusted Net Income Attributable to Common Stockholders | $ | 12 | $ | 0.14 | ||||
Notes to above:
* Does not foot due to rounding
(1) Charges (after-tax) for personnel expenses and professional fees related to the Company's internal control remediation efforts.
| Three Months Ended | ||||||||
| March 31, 2024 | ||||||||
| Amount | Per Share | |||||||
| Net income attributable to common stockholders | $ | 13 | $ | 0.15 | ||||
| Loss from discontinued operations, net of tax | 1 | 0.01 | ||||||
| Asset disposal, net of tax (1) | 1 | 0.01 | ||||||
| Activism response legal and consulting costs, net of tax | 2 | 0.03 | ||||||
| Increase in LIFO reserve, net of tax | 1 | 0.01 | ||||||
| Adjusted Net Income Attributable to Common Stockholders | $ | 18 | $ | 0.21 | ||||
Notes to above:
(1) An after-tax charge for an asset disposal in our International segment.
The company defines adjusted net income attributable to common stockholders (a non-GAAP measure) as net income (loss) attributable to common stockholders, plus the loss from discontinued operations, net of tax, plus or minus the after-tax impact of items deemed non-standard and plus or minus the after-tax impact of its LIFO inventory costing methodology. After-tax impacts were determined using the company's blended statutory rate. The company presents adjusted net income attributable to common stockholders and related per share amounts because the company believes it provides useful comparisons of the company’s operating results to other companies, including those companies with whom we compete in the distribution of pipe, valves, and fittings to the energy industry, without regard to the irregular variations from certain restructuring events not indicative of the on-going business. Those items include goodwill and intangible asset impairments, inventory-related charges, facility closures, severance and restructuring, internal control remediation expenses, as well as the LIFO inventory costing methodology. The impact of the LIFO inventory costing methodology can cause results to vary substantially from company to company depending upon which costing method they may elect. The company believes that net income attributable to common stockholders is the financial measure calculated and presented in accordance with U.S. generally accepted accounting principles that is most directly compared to adjusted net income attributable to common stockholders.
MRC Global Inc.
Supplemental Information (Unaudited)
Reconciliation of Long-term Debt to Net Debt (a non-GAAP measure) and the Net Debt Leverage Ratio Calculation
(in millions)
| March 31, 2025 | ||||
| Long-term debt | $ | 367 | ||
| Plus: current portion of debt obligations | 4 | |||
| Total debt | 371 | |||
| Less: cash | 63 | |||
| Net Debt | $ | 308 | ||
| Net Debt | $ | 308 | ||
| Trailing twelve months adjusted EBITDA | $ | 181 | ||
| Net debt leverage ratio | 1.7 | |||
Notes to above:
Net Debt and related leverage metrics may be considered non-GAAP measures. The company defines Net Debt as total long-term debt, including current portion, minus cash. The company defines its net debt leverage ratio as Net Debt divided by trailing twelve months Adjusted EBITDA. The company believes Net Debt is an indicator of the extent to which the company’s outstanding debt obligations could be satisfied by cash on hand and a useful metric for investors to evaluate the company’s leverage position. The company believes the net debt leverage ratio is a commonly used metric that management and investors use to assess the borrowing capacity of the company. The company believes total long-term debt (including the current portion) is the financial measure calculated and presented in accordance with U.S. generally accepted accounting principles that is most directly comparable to Net Debt.
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