HOUSTON, April 27, 2021 / PRNewswire / – MRC Global Inc. (NYSE: MRC), the world's largest distributor of pipes, valves, fittings and related infrastructure products and services for the energy industry, today announced results for the first quarter of 2021.
The company's revenue was $ 609 million for the first quarter of 2021, 5% more than the fourth quarter of 2020 and 23% less than the first quarter of 2020. In sequential order, all sectors except gas utilities saw revenue increase. This was lower due to an unusually above-average fourth quarter. Compared to Q1 2020, gas supply sector revenue was higher due to market share gains and all other sectors and segments declined as the impact of the COVID-19 pandemic reduced customer spending.
The net loss attributable to common stockholders for the first quarter of 2021 was ($ 9) Million or ($ 0.11) Net income per diluted share compared to Q1 2020 of $ 3 million or $ 00.04 per diluted share.
Rob SaltielThe President and Chief Executive Officer of MRC Global stated, "I am pleased with the solid performance of our team in the first quarter. Despite a slow start to the quarter due to customer budget reset and extreme weather conditions, we achieved 5% sequential revenue growth, a stronger bottom line and continuous cash flow generation due to an improved business environment.
"In my first few weeks at MRC Global, I was very impressed by the caliber of our people and the longstanding relationships we have with our customers and suppliers. These strengths, together with our commitment to operational excellence and first-class customer service, have enabled our company to to become the leading PVF distributor and will support our growth ambitions in the years to come, "added Saltiel.
MRC Global's gross profit for the first quarter of 2021 was $ 103 million, or 16.9% of sales, compared to gross profit for the first quarter of 2020 of $ 148 million, or 18.6% of sales. Gross profit for the first quarter of 2021 includes cost of sales of $ 4 million related to the application of the last-in, first-out (LIFO) method of inventory cost accounting compared to Q1 2020, which includes revenue of $ 3 million . USD in connection with LIFO inventory cost accounting. Adjusted gross income excluding the impact of LIFO was $ 118 million, or 19.4% of sales, for the first quarter of 2021.
Selling, general, and administrative (SG&A) expenses were $ 100 million, or 16.4% of sales, for the first quarter of 2021 compared to $ 126 million, or 15.9% of sales, for the same period in 2020. Adjusted SG&A costs of $ 98 million For the first quarter of 2021, does not include employee separation costs of $ 2 million.
Income tax expense was $ 0 for the first quarter of 2021 compared to $ 5 million for the first quarter of 2020. In the first quarter of 2021, the effective tax rate of 0% results from the tax expense on foreign income, which offsets the tax benefits of U.S. pre-tax losses. The company's tax rates generally differ from the US federal tax rate of 21% due to state income taxes and differences in foreign income tax rates.
In this press release, we refer to the reconciliation of non-GAAP measures (adjusted gross profit, adjusted SG&A expenses, adjusted EBITDA) to GAAP measures (gross profit, SG&A expenses, net profit).
Sales by geographic segment
Revenue in the first quarter of 2021 compared to the first quarter of 2020 was impacted by the COVID-19 pandemic and related mitigation measures that had a negative impact on demand.
Sales in the United States were $ 484 million for the first quarter of 2021, a decrease of $ 154 million, or 24%, from the year-ago quarter. All sectors declined due to the decreased level of activity related to the pandemic and related restrictions, with the exception of gas utilities. Gas utility sector revenue increased $ 10 million, or 5%, primarily due to market share gains and increased customer activity in preparation for the construction season. Upstream manufacturing revenue decreased $ 71 million, or 51%, primarily due to lower customer spending and a 47% reduction in well completions. Downstream and industrial sales declined $ 52 million, or 27%, due to delayed or reduced maintenance expenses due to lower demand related to the pandemic. Revenue in the midstream pipeline sector declined $ 41 million, or 37%, due to lower production volumes and associated lower demand for infrastructure and timing of project activities. The Midstream Pipeline, Downstream, and Industrial and Upstream Manufacturing sectors rose in turn as market conditions improved.
Sales in Canada were $ 32 million for the first quarter of 2021, a decrease of $ 18 million, or 36%, from the year-ago quarter. This was mainly due to the upstream manufacturing sector that was impacted by the pandemic. The strengthening of the Canadian dollar against the US dollar had a positive impact on sales by $ 2 million, or 4%. Sales in Canada improved sequentially mainly due to the upstream manufacturing sector as investments increased due to higher raw material prices.
International sales were $ 93 million for the first quarter of 2021, a decrease of $ 13 million, or 12%, over the same period in 2020. This was mainly due to lower spending due to less activity related to reduced customer budgets. Stronger foreign currencies against the US dollar had a positive impact on sales by USD 8 million, or 8%.
Sales by end market sectors
The gas utility sector's revenue for the first quarter of 2021 was $ 210 million, or 34% of total revenue. This is an increase of $ 8 million, or 4%, over Q1 2020 due to the US segment.
Downstream and industrial sales were $ 194 million, or 32% of total sales, for the first quarter of 2021, a decrease of $ 57 million, or 23%, from the first quarter of 2020. All segments are led by the US segment. Downstream and industrial sales increased 11% sequentially as customers completed repair, maintenance and remodeling that was originally postponed in 2020, as well as bad weather recovery work in February.
Upstream manufacturing revenue was $ 127 million, or 21% of total revenue, for the first quarter of 2021, a decrease of $ 95 million, or 43%, from the first quarter of 2020. The decline in sales in the upstream manufacturing sector was seen in all segments of the US segment. Sales in the upstream production sector increased slightly sequentially, driven by North America as customers increased expenditure on completions and plant construction.
Revenue in the midstream pipeline sector was $ 78 million, or 13% of total revenue, for the first quarter of 2021, a decrease of $ 41 million, or 34%, from the first quarter of 2020 driven by the U.S. segment . Midstream Pipeline revenue increased 26% sequentially as customers reallocated resources for smaller pipeline projects and some increased valve purchases.
Balance sheet
Cash flow from operating activities was $ 24 million for the first quarter of 2021. Cash on hand was $ 132 million, long-term debt was $ 382 million, and net debt at March 31, 2021 was $ 250 million March 31, 2021The availability under the company's asset-based credit facility was $ 395 million and available liquidity was $ 527 million. The company intends to make an excess cash flow payment from $ 105 million in April according to the debt agreement. The available liquidity, pro forma for the excess cash payment, is $ 422 million, which is sufficient to meet the company's business and capital needs.
This press release provides a reference to the reconciliation of non-GAAP measures (net debt) to GAAP measures (long-term debt).
telephone conference
The company will host a conference call to discuss the results for the first quarter of 2021 at 10:00 a.m. Eastern Time ((9:00 a.m. local time) on April 28, 2021. To participate in the call, please dial 412-902-0003 and ask for the MRC Global conference call at least 10 minutes prior to the start time. To access the conference call live over the Internet, log on to the Internet at www.mrcglobal.com and go to the Investor Relations website on the Company’s website at least fifteen minutes earlier to register and download the required audio software and install. For those who cannot listen to the live call, replay is available via 12th of May, 2021 and can be reached by dialing 201-612-7415 and using the passcode 13717293 #. In addition, an archive of the webcast will be available at www.mrcglobal.com for 90 days shortly after the call.
About MRC Global Inc.
MRC Global is the largest distributor of pipes, valves and fittings (PVF) and other infrastructure products and services for the energy industry, measured by sales. At around 230 service locations worldwide, around 2,600 employees and a 100-year history, MRC Global offers customers worldwide innovative supply chain solutions and technical product know-how in diversified end markets, including upstream production, the midstream pipeline, the gas supplier and the downstream and industrial. MRC Global manages a complex network of over 200,000 part numbers and 10,000 suppliers, simplifying the supply chain for its 12,000+ customers. MRC Global is the trusted PVF expert with an emphasis on engineering products, value-added services, a global network of valve and development centers, and an unmatched quality assurance program. More information is available at www.mrcglobal.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words like "will", "expect", "expect", "intend", "believe", "on track", "well positioned", "strong position", "look ahead", "guidance", " Plans, "" "may", "aim," "aim" and similar expressions are intended to identify forward-looking statements.
Statements about the company's business, including its strategy, industry, future profitability of the company, company revenue guidance, adjusted EBITDA, tax rate, investments, cost savings and cash flow, deleveraging, liquidity and the Company's Growth Various markets and the company's expectations, beliefs, plans, strategies, goals, 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, each of which could cause actual results to differ materially from those expressed or implied in 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 the control of MRC Global, including factors described in the company's SEC filings that could cause The company's actual results and performance will be materially different from future results or performance expressed or implied by these forward-looking statements.
These risks and uncertainties include (but are not limited to) reductions in the price of oil and natural gas; Decrease in oil and gas industry spending, which may be due to lower oil and gas prices or other factors; General economic conditions in the US and internationally; the company's ability to successfully compete with other companies in MRC Global's industry; the risk that manufacturers of the products that the company markets sell a significant amount of goods directly to end users in the industries in which the company operates; unexpected supply shortages; Cost increases from the company's suppliers; the company's lack of long-term contracts with most of its suppliers; Supplier price reductions for products the Company sells, which may cause the Company's inventory to decrease in value; Drop in steel prices that could significantly lower MRC Global's bottom line; Increase in steel prices, which the company may not be able to pass on to its customers, which could cut profits significantly; the company's lack of long-term contracts with many of its customers and the company's lack of contracts with customers that require a minimum purchase volume; Changes in the company's customer and product mix; Risks related to the creditworthiness of the company's customers; the success of the company's acquisition strategies; the potential adverse effects of integrating acquisitions into the company's business and whether those acquisitions will produce the intended benefits; the company's substantial debt; the dependence of the company's subsidiaries on cash to meet its obligations; Changes in the company's credit profile; a decrease in demand for certain products that the company markets if import restrictions on those products are lifted or imposed; significant substitution of oil and gas by alternative fuels; Environmental, health and safety laws and regulations and their interpretation or implementation; the company's insurance policy sufficient to cover losses, including litigation liabilities; Product liability claims against the company; pending or future asbestos-related claims against the company; the potential loss of key personnel; adverse health events such as a pandemic; Disruption of the proper functioning of the company's information systems and occurrence of cybersecurity incidents; Loss of third party providers; potential inability to obtain the necessary capital; Risks related to adverse weather events or natural disasters; 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; Exposure to US and international laws and regulations, including the US Foreign Corrupt Practices Act and the UK Bribery Act, and other economic sanction programs; Risks related to international stability and geopolitical developments; Risks related to ongoing reviews of internal controls under Section 404 of the Sarbanes-Oxley Act; Risks associated with the company's intention not to pay dividends; and risks arising from compliance with and changes to laws in the countries in which we operate, including (among other things) changes in tax law, tax rates and the interpretation of tax law.
For a discussion of the key risk factors, see the Risk Factors listed on the company's SEC filings. This can be found on the SEC's website at www.sec.gov and on the company's website at www.mrcglobal.com. MRC Global's filings and other important information can also be found on the Investor Relations page of the company's website at www.mrcglobal.com.
Undue reliance should not be placed on any forward-looking statements made by the company. While forward-looking statements reflect the company's good faith beliefs, one should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that could cause actual results, performance or success of the company or future events to be affected Occur materially differ from the expected future results, performance or accomplishments or future events expressed or implied by such forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events, changed circumstances, or for any other reason, except as required by law.
Contact:
Monica Broughton
Investor Relations
MRC Global Inc.
(Email protected)
832-308-2847
|
MRC Global Inc. Condensed consolidated balance sheets (unaudited) (in millions, excluding shares) |
||||||||
|
March 31, |
December 31, |
|||||||
|
2021 |
2020 |
|||||||
|
financial assets |
||||||||
|
Current assets: |
||||||||
|
cash register |
$ |
132 |
$ |
119 |
||||
|
Claims, net |
369 |
319 |
||||||
|
Inventories, net |
504 |
509 |
||||||
|
Other current assets |
24 |
19th |
||||||
|
Total current assets |
1,029 |
966 |
||||||
|
Long-term assets: |
||||||||
|
Operating lease assets |
195 |
200 |
||||||
|
Property, plant and equipment, net |
98 |
103 |
||||||
|
Other assets |
19th |
19th |
||||||
|
Intangible assets: |
||||||||
|
Goodwill, net |
264 |
264 |
||||||
|
Other intangible assets, net |
222 |
229 |
||||||
|
$ |
1,827 |
$ |
1,781 |
|||||
|
Liabilities and shareholders equity |
||||||||
|
Short-term liabilities: |
||||||||
|
Delivery and performance |
$ |
338 |
$ |
264 |
||||
|
Provisions and other short-term liabilities |
85 |
94 |
||||||
|
Operating lease liabilities |
35 |
37 |
||||||
|
Current share of long-term debt |
105 |
4th |
||||||
|
Total short-term liabilities |
563 |
399 |
||||||
|
Long-term liabilities: |
||||||||
|
Long-term debt, net |
277 |
379 |
||||||
|
Operating lease liabilities |
181 |
187 |
||||||
|
Deferred income taxes |
71 |
70 |
||||||
|
Other liabilities |
36 |
41 |
||||||
|
Commitments and Contingent Liabilities |
||||||||
|
6.5% Series A convertible perpetual preferred stock, $ 0.01 face value; authorized 363,000 shares; 363,000 shares issued and outstanding |
355 |
355 |
||||||
|
Equity: |
||||||||
|
Common stock, par value $ 0.01 per share: 500 million authorized shares, 106,721,847 and 106,315,296 issued, respectively |
1 |
1 |
||||||
|
Additional paid-in capital |
1,742 |
1.739 |
||||||
|
Retained deficit |
(790) |
(781) |
||||||
|
Less: Treasury shares at cost: 24,216,330 shares |
(375) |
(375) |
||||||
|
Cumulative other comprehensive loss |
(234) |
(234) |
||||||
|
344 |
350 |
|||||||
|
$ |
1,827 |
$ |
1,781 |
|||||
|
MRC Global Inc. Abridged consolidated income statement (unaudited) (in millions, except amounts per share) |
||||||||
|
Three months ended |
||||||||
|
March 31, |
March 31, |
|||||||
|
2021 |
2020 |
|||||||
|
sales |
$ |
609 |
$ |
794 |
||||
|
Cost of sales |
506 |
646 |
||||||
|
Gross income |
103 |
148 |
||||||
|
Selling and general administration |
100 |
126 |
||||||
|
Operating profit |
3 |
22nd |
||||||
|
Other edition: |
||||||||
|
Interest expenses |
(6) |
(8th) |
||||||
|
(Loss) earnings before taxes |
(3) |
14th |
||||||
|
Income tax expense |
– – |
5 |
||||||
|
Net profit (loss) |
(3) |
9 |
||||||
|
Series A Preferred Stock Dividends |
6th |
6th |
||||||
|
Ordinary (loss) earnings of the ordinary shareholders |
$ |
(9) |
$ |
3 |
||||
|
Basic income (loss) per common share |
$ |
(0.11) |
$ |
0.04 |
||||
|
Diluted (loss) earnings per common share |
$ |
(0.11) |
$ |
0.04 |
||||
|
Weighted average common stock, basis |
82.3 |
81.7 |
||||||
|
Weighted average common stock, diluted |
82.3 |
82.4 |
||||||
|
MRC Global Inc. Condensed consolidated cash flow statement (unaudited) (in millions) |
||||||||
|
Three months ended |
||||||||
|
March 31, |
March 31, |
|||||||
|
2021 |
2020 |
|||||||
|
Operational activities |
||||||||
|
Net profit (loss) |
$ |
(3) |
$ |
9 |
||||
|
Adjustments to reconcile net profit (loss profit) to cash flow from operating activities: |
||||||||
|
Depreciation |
5 |
5 |
||||||
|
Amortization of intangible assets |
6th |
7th |
||||||
|
Equity-based compensation expense |
5 |
2 |
||||||
|
Deferred income tax benefits |
– – |
1 |
||||||
|
Increase (decrease) the LIFO reserve |
4th |
(3) |
||||||
|
Provision for credit losses |
– – |
6th |
||||||
|
Other |
– – |
1 |
||||||
|
Changes in operating assets and liabilities: |
||||||||
|
requirements |
(50) |
(33) |
||||||
|
Stocks |
– – |
(4) |
||||||
|
Other current assets |
(6) |
2 |
||||||
|
Settlement liabilities |
75 |
49 |
||||||
|
Provisions and other short-term liabilities |
(12) |
(5) |
||||||
|
Cash generated from operations |
24 |
37 |
||||||
|
Investment activity |
||||||||
|
Purchases of property, plant and equipment |
(2) |
(2) |
||||||
|
Other investing activities |
1 |
– – |
||||||
|
Cash flow from investing activities |
(1) |
(2) |
||||||
|
Financing activity |
||||||||
|
Revolving Credit Facility Payments |
(2) |
(228) |
||||||
|
Revolving Credit Facility Revenue |
2 |
205 |
||||||
|
Payments for long-term commitments |
(1) |
(4) |
||||||
|
Dividends paid on preferred stock |
(6) |
(6) |
||||||
|
Buyback of shares to cover tax withholding |
(2) |
(3) |
||||||
|
Cash outflow from financing activities |
(9) |
(36) |
||||||
|
Increase (decrease) in cash |
14th |
(1) |
||||||
|
Effect of the exchange rate on cash |
(1) |
(3) |
||||||
|
Cash – start of period |
119 |
32 |
||||||
|
Cash – end of period |
$ |
132 |
$ |
28 |
||||
|
MRC Global Inc. Additional sales information (unchecked) (in millions) |
||||||||||||||||
|
Breakdown of sales by segment and sector |
||||||||||||||||
|
Three months ended |
||||||||||||||||
|
March 31, |
||||||||||||||||
|
US. |
Canada |
International |
total |
|||||||||||||
|
2021 |
||||||||||||||||
|
Gas supplier |
$ |
209 |
$ |
1 |
$ |
– – |
$ |
210 |
||||||||
|
Downstream & Industry |
138 |
4th |
52 |
194 |
||||||||||||
|
Upstream production |
68 |
23 |
36 |
127 |
||||||||||||
|
Midstream pipeline |
69 |
4th |
5 |
78 |
||||||||||||
|
$ |
484 |
$ |
32 |
$ |
93 |
$ |
609 |
|||||||||
|
2020 |
||||||||||||||||
|
Gas supplier |
$ |
199 |
$ |
3 |
$ |
– – |
$ |
202 |
||||||||
|
Downstream & Industry |
190 |
6th |
55 |
251 |
||||||||||||
|
Upstream production |
139 |
37 |
46 |
222 |
||||||||||||
|
Midstream pipeline |
110 |
4th |
5 |
119 |
||||||||||||
|
$ |
638 |
$ |
50 |
$ |
106 |
$ |
794 |
|||||||||
|
MRC Global Inc. Additional sales information (unchecked) (in millions) |
||||||||
|
Sales by product line |
||||||||
|
Three months ended |
||||||||
|
March 31, |
March 31, |
|||||||
|
Art |
2021 |
2020 |
||||||
|
Line pipes |
$ |
65 |
$ |
100 |
||||
|
Carbon fittings and flanges |
85 |
115 |
||||||
|
Total carbon pipe, fittings and flanges |
150 |
215 |
||||||
|
Valves, automation, measurement and instrumentation |
241 |
323 |
||||||
|
Gas products |
134 |
134 |
||||||
|
Stainless steel and alloy pipes and fittings |
29 |
37 |
||||||
|
General products |
55 |
85 |
||||||
|
$ |
609 |
$ |
794 |
|||||
|
MRC Global Inc. Supplementary information (unchecked) Reconciliation of Gross Income to Adjusted Gross Income (a non-GAAP measure) (in millions) |
||||||||||||||||
|
Three months ended |
||||||||||||||||
|
March 31, |
percentage |
March 31, |
percentage |
|||||||||||||
|
2021 |
of receipts |
2020 |
of income * |
|||||||||||||
|
Gross profit as reported |
$ |
103 |
16.9 |
%. |
$ |
148 |
18.6 |
%. |
||||||||
|
Depreciation |
5 |
0.8 |
%. |
5 |
0.6 |
%. |
||||||||||
|
Amortization of intangible assets |
6th |
1.0 |
%. |
7th |
0.9 |
%. |
||||||||||
|
Increase (decrease) the LIFO reserve |
4th |
0.7 |
%. |
(3) |
(0.4) |
%. |
||||||||||
|
Adjusted gross profit |
$ |
118 |
19.4 |
%. |
$ |
157 |
19.8 |
%. |
||||||||
|
Notes on above: |
||||||||||||||||
|
* Foot not due to rounding |
||||||||||||||||
|
The company defines Adjusted Gross Profit as sales minus cost of sales plus depreciation and amortization plus amortization of intangible assets plus inventory-related costs and plus or minus the impact of its LIFO inventory calculation method. The company reports adjusted gross profit because it believes this is a useful indicator of the company's operating performance, regardless of items such as amortization of intangible assets, which can vary significantly depending on the nature and size of the company-to-company acquisitions may vary were involved. Similarly, the impact of the LIFO inventory calculation method can cause results to vary significantly from company to company depending on whether they decide to use LIFO and which method they choose. The company uses Adjusted Gross Profit as a key performance indicator for management. The company believes that gross profit is the financial measure that is calculated and presented in accordance with generally accepted United States accounting standards and that is most directly comparable to adjusted gross profit. |
||||||||||||||||
|
MRC Global Inc. Supplementary information (unchecked) Reconciliation of sales, general and administrative costs to Adjusted selling, general, and administrative expenses (a non-GAAP metric) (in millions) |
||||||||
|
Three months ended |
||||||||
|
March 31, |
March 31, |
|||||||
|
2021 |
2020 |
|||||||
|
Selling and general administration |
$ |
100 |
$ |
126 |
||||
|
Employee separation (1) |
(2) |
– – |
||||||
|
Adjusted selling, general and administrative expenses |
$ |
98 |
$ |
126 |
||||
|
Notes on above: |
|
|
(1) Pre-tax fees related to employee separation, of which $ 1 million is non-cash stock-based compensation. |
|
|
The company defines the adjusted sales, general and administrative costs (VVG costs) as VVG costs minus severance and restructuring costs, costs for the separation of employees, the closure of facilities and the collection of bad debts from suppliers. The company presents adjusted SG&A because it believes this is a useful indicator of the company's operating performance, regardless of elements that can vary significantly from company to company. The company presents Adjusted SG&A because it believes Adjusted SG&A is a useful indicator of the company's operational performance. Adjusted SG&A measures, among other things, the company's operating performance without taking into account certain one-time, non-cash or transaction-related expenses. The company uses Adjusted SG&A as a key performance indicator for management. The Company believes that SG&A is the financial metric that is calculated and presented in accordance with generally accepted accounting principles in the United States and that most directly compares to adjusted SG&A. |
|
|
MRC Global Inc. Supplementary information (unchecked) Reconciliation of Net Income to Adjusted EBITDA (a non-GAAP measure) (in millions) |
||||||||
|
Three months ended |
||||||||
|
March 31, |
March 31, |
|||||||
|
2021 |
2020 |
|||||||
|
Net profit (loss) |
$ |
(3) |
$ |
9 |
||||
|
Income tax expense |
– – |
5 |
||||||
|
Interest expenses |
6th |
8th |
||||||
|
Depreciation |
5 |
5 |
||||||
|
Amortization of intangible assets |
6th |
7th |
||||||
|
Employee separation (1) |
1 |
– – |
||||||
|
Increase (decrease) the LIFO reserve |
4th |
(3) |
||||||
|
Equity-based compensation expense (2) |
5 |
2 |
||||||
|
Profit from early extinction of debt (3) |
– – |
(1) |
||||||
|
Foreign currency losses |
– – |
2 |
||||||
|
Adjusted EBITDA |
$ |
24 |
$ |
34 |
||||
|
Notes on above: |
|
|
(1) Fee (before taxes) recorded in VVG costs. |
|
|
(2) Fees included in the SG&A expenses (before taxes). $ 1 million relates to employee separation. |
|
|
(3) Profit (before taxes) in connection with the purchase of the term loan recognized in Other, net. |
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|
The company defines Adjusted EBITDA as net income plus interest, income taxes, depreciation and amortization, amortization of intangible assets and certain other expenses, including non-cash expenses (such as share-based compensation, severance payments and restructuring, changes in fair value) of derivative instruments and impairments of Assets, including intangible assets and inventories) and plus or minus the effects of the LIFO inventory calculation method. The company reports Adjusted EBITDA because it believes Adjusted EBITDA is a useful indicator of the company's operating performance. Adjusted EBITDA measures, among other things, the company's operating performance without taking into account certain one-time, non-cash or transaction-related expenses. However, Adjusted EBITDA is not an alternative to net income, cash flow from operations, or any other measure of GAAP financial performance and should not be viewed as an alternative. Because Adjusted EBITDA excludes certain expenses, its utility as a measure of the company's operating performance has material limitations. Because of these constraints, the company does not look at Adjusted EBITDA in isolation or as a primary performance metric and also uses other metrics such as net income and revenue to measure operating performance. For more information on the use of Adjusted EBITDA, see the company's Annual Report on Form 10-K. |
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MRC Global Inc. Supplementary information (unchecked) Transfer of the annual surplus attributable to the ordinary shareholders to Adjusted Net Income attributable to common stockholders (a non-GAAP measure) (in millions, except amounts per share) |
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Three months ended on March 31, 2021 |
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quantity |
Per share |
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Net loss of common stockholders |
$ |
(9) |
$ |
(0.11) |
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Increase in the LIFO reserve after taxes |
3 |
0.04 |
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Adjusted net loss of common stockholders |
$ |
(6) |
$ |
(0.07) |
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Three months ended on March 31, 2020 |
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quantity |
Per share |
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|
Annual surplus attributable to ordinary shareholders |
$ |
3 |
$ |
0.04 |
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Decrease in the LIFO reserve after taxes |
(2) |
(0.03) |
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Adjusted net income for ordinary shareholders |
$ |
1 |
$ |
0.01 |
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Notes on above: |
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The Company defines Adjusted Net Income attributable to ordinary shareholders (a non-GAAP measure) as the net income attributable to ordinary shareholders less goodwill and intangible impairment after taxes, inventory costs, facility closures, severance pay and restructuring, plus or minus the follow-up tax impact of LIFO -Inventory calculation method. The company reports adjusted net income and related amounts per share attributable to common stockholders, in the belief that it provides useful comparisons of the company's operating results with other companies, including the companies we have worked with in the distribution of pipes, Valves and fittings to the USA compete in the energy industry, regardless of the irregular deviations from certain restructuring events that are not indicative of ongoing business. These items include impairment of goodwill and intangible assets, inventory costs, facility closures, severance payments and restructuring, and the LIFO inventory calculation method. The impact of the LIFO inventory calculation method can cause results to vary significantly from company to company depending on whether or not they decide to use LIFO and which method they choose. The Company believes that net income attributable to common stockholders is the financial ratio calculated and presented using generally accepted accounting principles that most directly compares to adjusted net income attributable to common stockholders. |
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MRC Global Inc. Supplementary information (unchecked) Reconciliation of long-term debt to net debt (a non-GAAP measure) and calculation of the leverage ratio (in millions) |
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March 31, |
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2021 |
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Long-term debt, net |
$ |
277 |
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Plus: current share of long-term debt |
105 |
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Long-term liabilities |
382 |
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Less: cash |
132 |
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Net debt |
$ |
250 |
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Net debt |
$ |
250 |
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After twelve months, adjusted EBITDA |
87 |
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Leverage ratio |
2.9 |
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Anmerkungen zu oben: |
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Die Kennzahlen für die Nettoverschuldung und die damit verbundene Hebelwirkung können als nicht GAAP-konforme Kennzahlen betrachtet werden. Wir definieren Nettoverschuldung als langfristige Gesamtverschuldung einschließlich des aktuellen Anteils abzüglich Bargeld. Wir definieren unsere Leverage Ratio als Nettoverschuldung geteilt durch das bereinigte EBITDA nach zwölf Monaten. Wir glauben, dass die Nettoverschuldung ein Indikator dafür ist, inwieweit die ausstehenden Schuldenverpflichtungen des Unternehmens durch Kassenbestand erfüllt werden können, und eine nützliche Messgröße für Anleger, um die Hebelposition des Unternehmens zu bewerten. Wir glauben, dass die Leverage Ratio eine häufig verwendete Kennzahl ist, anhand derer Management und Investoren die Kreditkapazität des Unternehmens bewerten. Wir glauben, dass die gesamte langfristige Verschuldung (einschließlich des aktuellen Teils) die finanzielle Kennzahl ist, die gemäß den allgemein anerkannten US-amerikanischen Rechnungslegungsgrundsätzen berechnet und dargestellt wird, die am unmittelbarsten mit der Nettoverschuldung vergleichbar sind. |
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http://www.mrcglobal.com