MRC International pronounces full 12 months and fourth quarter 2020 outcomes

HOUSTON, February 11, 2021 / PRNewswire / –

Full year 2020:

Fourth quarter 2020:

Sales of $ 2,560 million

Revenue of $ 579 million

Net loss attributable to common stockholders of $ (298) million

Net loss attributable to common stockholders of $ (11) million

Adjusted gross profit of 19.7%

Adjusted gross profit of 19.7%

Adjusted EBITDA of $ 97 million

Adjusted EBITDA of $ 22 million

Cash flow from operating activities $ 261 million

Cash flow from continuing operations of $ 83 million

Net debt of $ 264 million, a 49% reduction


Total available liquidity of $ 551 million


MRC Global Inc. (NYSE: MRC), the world's largest distributor of pipes, valves, fittings, and other infrastructure products and services for the power industry, today announced full year and fourth quarter 2020 results.

The company's revenue was $ 579 million for the fourth quarter of 2020, 1% less than the third quarter of 2020 and 24% less than the fourth quarter of 2019. Sequential sales were largely unchanged as both gas utilities and upstream manufacturing sectors saw growth, offset by declines in the midstream pipeline, as well as in the downstream and industrial sectors. The international segment also saw sequential growth. Compared to the fourth quarter of 2019, the decline in revenue was seen in all sectors and segments, with the exception of the gas utilities segment, which recorded significant growth.

The net loss attributable to common stockholders for the fourth quarter of 2020 was $ (11) million, or ($ 0.13) per diluted share, compared to a net loss of $ (30) million, or ($ 0.37) Per diluted share for the fourth quarter of 2019. Please see the reconciliation of Adjusted Net Income (Loss) (a Non-GAAP Measure) to Net Income (Loss) (a GAAP Measure) in this press release.

Andrew R. LaneThe President and Chief Executive Officer of MRC Global stated, "I am proud that our MRC Global team overcame the huge challenges of 2020 in order to stay focused and execute our strategy for long-term shareholder value. We have all goals for 2020, including generating cash from operations of $ 261 million and reducing our net debt by nearly half $ 264 millionwith a leverage ratio of 2.7 times. We ended the year with $ 119 million in cash and our term loan will not be due until 2024. We set a new record for adjusted gross margins in 2020, hitting 19.7% for the year. We have also reduced our normalized operating costs by $ 113 million In 2020, with much of this structural, the company is well positioned for higher incremental margins in the future. I am also delighted that, despite the challenges of the pandemic, we continued to focus on the safety of our employees and ended the year with the best recorded safety performance in our history. As the oil and gas market recovers we are well positioned with a great team. $ 551 million Liquidity and a lean cost structure that enables us to take full advantage of the opportunities that lie ahead.

"Next week, MRC Global will celebrate a major milestone, our 100th anniversary, an achievement few can claim. However, it is only the beginning and we look forward to becoming the world's leading PVF distributor for the oil and gas industry First-class supply chain solutions for our customers that open up new opportunities for our employees and deliver superior returns to our shareholders. "Mr. Lane added.

MRC Global's gross profit for the fourth quarter of 2020 was $ 90 million, or 15.5% of sales, compared to gross profit of $ 131 million, or 17.1% of sales, for the fourth quarter of 2019. Gross profit for the fourth quarter 2020 and 2019 costs of USD 1 million for cost of sales in connection with the application of the last-in-first-out (LIFO) method of inventory cost accounting. The gross profit for the fourth quarter of 2020 and 2019 was also negatively impacted $ 12 million and $ 5 million pre-tax charges related to non-cash depreciation of excess or obsolete inventory. Adjusted gross profit, excluding these and other items, was 19.7% for both the fourth quarter of 2020 and 2019. Please see the reconciliation of Adjusted Gross Income (a non-GAAP measure) to Gross Income (a GAAP measure). included in this version.

Selling, general, and administrative (SG&A) expenses were $ 97 million, or 16.8% of sales, for the fourth quarter of 2020 compared to $ 141 million, or 18.4% of sales, for the same period in 2019 SG&A expenses in the fourth quarter of 2020, 2020 and 2019 include $ 2 million and $ 4 million of severance and restructuring costs before taxes. S&C charges for the fourth quarter of 2020 also include pre-tax sub-lease income of $ 1 million.

For the three months ended December 31, 2020was the income tax advantage ($ 2) Million on a pre-tax loss of $ (7) million, resulting in an effective tax rate of 29%. 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. For the three months ended December 31, 2019The income tax expense was $ 5 million on one (19) million US dollars Loss before taxes. This was mainly due to losses in foreign countries with no corresponding tax benefit and additional taxes related to changes in tax regulations.

Adjusted EBITDA was $ 22 million for the fourth quarter of 2020 compared to $ 23 million for the same period in 2019. This press release discusses the reconciliation of non-GAAP (Adjusted EBITDA) measures to GAAP (Net Income) measures. referenced.

Sales by segment

US revenue for the fourth quarter of 2020 was $ 448 million, a decrease of $ 160 million, or 26%, from the year-ago quarter. Sales in the gas supply sector increased $ 38 million or 21% as many customers increased their spending in the fourth quarter, which is unusual compared to historical trends as the budget was caught up due to lower spending earlier in the year due to pandemic restrictions. Sales in the downstream and industrial sectors fell $ 68 million, or 36%, as critical turnarounds were completed, but overall spending was reduced due to lower demand caused by the pandemic. Upstream manufacturing sales were down $ 77 million, or 55%, due to lower spending from the pandemic and a 57% reduction in well closings. Revenue in the midstream pipeline sector was down $ 53 million, or 51%, mainly due to lower customer spending as projects were canceled or delayed, which resulted in lower demand for infrastructure as production declined.

Canadian sales were $ 23 million for the fourth quarter of 2020, a decrease of $ 20 million, or 47%, from the year-ago quarter. This was due to the upstream sector, which was impacted by the pandemic and associated lower demand.

International sales were $ 108 million for the fourth quarter of 2020, a decrease of $ 7 million, or 6%, over the same period in 2019. This was mainly due to weaker demand in the upstream sector due to the impact of the pandemic, particularly in the US middle East and Norway. Stronger foreign currencies against the US dollar had a positive impact on sales of USD 5 million.

Sales by sector

Gas supplier revenue for the fourth quarter of 2020 was $ 217 million, or 37% of total revenue, an increase of $ 37 million, or 21%, over the fourth quarter of 2019, mainly driven by the U.S. segment described above .

Downstream and industrial sales were $ 174 million, or 30% of total sales, for the fourth quarter of 2020, a decrease of $ 70 million, or 29%, from the fourth quarter of 2019, mainly attributable to the U.S. segment described above is.

Upstream product revenue was $ 126 million, or 22% of total revenue, for the fourth quarter of 2020, down $ 98 million, or 44%, from the fourth quarter of 2019. The decline in upstream sales was seen across all geographic segments, as described above.

Midstream pipeline revenue for the fourth quarter of 2020 was $ 62 million, or 11% of total revenue, a decrease of $ 56 million, or 47%, from the fourth quarter of 2019, which was primarily due to the U.S. segment described above is due.

Balance sheet and cash flow

The cash balance was $ 119 million December 31, 2020. Debt, net of cash, was $ 264 million and the Company's asset-based credit facility over-availability was immediately $ 432 million December 31, 2020. Cash flow from operating activities was $ 83 million for the fourth quarter of 2020, resulting in cash flow from operating activities of $ 261 million in 2020. Free cash flow (cash flow from operating activities minus investments minus dividends on preferred stock) was $ 226 million in 2020. MRC Global's liquidity position of $ 551 million is enough to meet the company's business and capital needs.

COVID-19 pandemic impact

The COVID-19 pandemic and associated mitigation measures have created significant volatility and uncertainty in the oil and gas industry. As a result, the demand for oil has deteriorated considerably. The unprecedented destruction of demand has resulted in lower spending by our customers and lower demand for the company's products and services. Although oil demand has improved slightly, there is uncertainty about when a stronger recovery will occur.

As a critical supplier of global energy infrastructure and an essential business, the company has remained operational without any facility closings. Our office staff initially worked from home at the start of the pandemic, but returned to the office to varying degrees in each location depending on the stage of the pandemic. From February 2, 2021The company had reported 10 active COVID-19 diseases, representing 0.4% of our global workforce. MRC Global has implemented various security measures for employees who work in the company's facilities and remote working for those whose work permits. MRC Global is committed to ensuring a safe work environment for all employees and constantly monitors its response at the locations where the company operates.

From a supply chain perspective, given the company's inventory levels and lower demand, the company has executed orders without interruption.

telephone conference

The company will host a conference call to discuss fourth quarter and full year 2020 results at 10:00 a.m. Eastern Time (9:00 a.m. local time) on February 12, 2021. To join the call, please dial 412-902-0003 and request 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 Investor Relations on the Company’s website at least fifteen minutes early to register and download the required audio software and install. For those who cannot hear the live call, replay is available via February 26, 2021 You can access it by dialing 201-612-7415 and using the passcode 13714607 #. 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 as well the downstream and industrial. MRC Global manages a complex network of over 200,000 part numbers and over 10,000 suppliers, simplifying the supply chain for approximately 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 engineering centers and an unmatched quality assurance program. Please visit www.mrcglobal.com for more information.

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 such as "will", "expect", "expect", "intend", "believe", "on the right track", "well positioned", "look ahead", "guidance", "plans", "can." "," Goal, "" goal "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, oil and natural gas price cuts; 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 distributes will 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 that the company sells, which may cause the value of the company's inventory to decrease; Drop in steel prices that could significantly lower MRC Global's profits; Increase in steel prices, which the company may not be able to pass on to its customers, which could significantly reduce profits; 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 goodwill or other intangible assets of the company; 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 UK Bribery Act, as well as 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 related to 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 an explanation of the key risk factors, please 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 the company's forward-looking statements. 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)



December 31,



December 31,



2020



2019










financial assets








Current assets:








cashbox

$

119



$

32


Claims, net


319




459


Inventories, net


509




701


Other current assets


19th




26th


Total current assets


966




1.218










Long-term assets:








Operating lease assets


200




186


Property, plant and equipment, net


103




138


Other assets


19th




19th










Intangible assets:








Goodwill, net


264




483


Other intangible assets, net


229




281



$

1,781



$

2,325










Liabilities and shareholders equity








Short-term liabilities:








Delivery and performance

$

264



$

357


Provisions and other short-term liabilities


94




91


Operating lease liabilities


37




34


Current share of long-term debt


4th




4th


Total short-term liabilities


399




486










Long-term liabilities:








Long-term debt, net


379




547


Operating lease liabilities


187




167


Deferred income taxes


70




91


Other liabilities


41




37










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 Shares, par value $ 0.01 per share: 500 million authorized shares, 106,315,296 and 105,624,750 issued, respectively


1




1


Capital reserve


1,739




1.731


Retained deficit


(781)




(483)


Treasury shares at cost: 24,216,330 shares


(375)




(375)


Cumulative other comprehensive loss


(234)




(232)




350




642



$

1,781



$

2,325


MRC Global Inc.

Abridged consolidated income statement (unaudited)

(in millions, except amounts per share)



Three months ended



end of year



December 31,



December 31,



December 31,



December 31,



2020



2019



2020



2019


















sales

$

579



$

766



$

2.560



$

3,662


Cost of sales


489




635




2.129




3,009


Gross profit


90




131




431




653


















Selling and general administration


97




141




449




550


Impairment of goodwill and intangible assets


– –




– –




242




– –


Operating profit


(7)




(10)




(260)




103


















Other (expenses) income:
















Interest expenses


(6)




(9)




(28)




(40)


Others, net


6th




– –




5




3


















(Loss) earnings before income taxes


(7)




(19)




(283)




66


Income tax expense


(2)




5




(9)




27


Net profit (loss)


(5)




(24)




(274)




39


Series A Preferred Stock Dividends


6th




6th




24




24


Ordinary (loss) earnings of ordinary shareholders

$

(11)



$

(30)



$

(298)



$

fifteen


































Basic earnings per ordinary share

$

(0.13)



$

(0.37)



$

(3.63)



$

0.18


Diluted earnings (loss) per common share

$

(0.13)



$

(0.37)



$

(3.63)



$

0.18


Weighted Average Common Stock, Basis


82.1




81.8




82.0




83.0


Weighted average common stock, diluted


82.1




81.8




82.0




83.9


MRC Global Inc.

Abridged consolidated cash flow statement (unaudited)

(in millions)



end of year



December 31,



December 31,



2020



2019










Operational activities








Net profit (loss)

$

(274)



$

39


Adjustments to reconcile the net result to the net cash flow from (used) operations:








Depreciation


20th




21st


Amortization of intangible assets


26th




42


Equity-based compensation expense


12




16


Deferred income tax benefits


(21)




(5)


Amortization of issuing costs


1




1


Reduction of the LIFO reserve


(19)




(2)


Impairment of goodwill and intangible assets


242




– –


Impairment and abandonment of the lease


14th




– –


Inventory costs


46




5


Provision for credit losses


2




2


Profit on the sale of leaseback


(5)




– –


Other non-cash items


(3)




5


Changes in operating assets and liabilities:








Customer account


141




127


Stocks


173




95


Other current assets


7th




10


Settlement liabilities


(98)




(79)


Provisions and other short-term liabilities


(3)




(35)


Cash generated from operations


261




242










Investment activity








Purchases of property, plant and equipment


(11)




(18)


Income from the disposal of property, plant and equipment


30th




1


Other investing activities


– –




1


Cash flow from investing activities


19th




(16)










Financing activity








Payments on revolving credit facilities


(819)




(1,145)


Revolving Credit Facility Revenue


658




1,016


Payments for long-term commitments


(6)




(4)


Common stock purchases


– –




(75)


Dividends paid on preferred stock


(24)




(24)


Buyback of shares to cover tax withholding


(4)




(6)


Cash flow from financing activities


(195)




(238)










Increase (decrease) in cash


85




(12)


Effect of the exchange rate on cash


2




1


Cash at the beginning of the year


32




43


Cash at the end of the year

$

119



$

32


MRC Global Inc.

Additional sales information (unchecked)

(in millions)


Breakdown of sales by segment


Three months ended

December 31,




US.



Canada



International



total


2020

















Gas supplier


$

216



$

1



$

– –



$

217


Downstream & Industry



119




3




52




174


Upstream production



63




17th




46




126


Midstream pipeline



50




2




10




62




$

448



$

23



$

108



$

579


2019

















Gas supplier


$

178



$

2



$

– –



$

180


Downstream & Industry



187




4th




53




244


Upstream production



140




32




52




224


Midstream pipeline



103




5




10




118




$

608



$

43



$

115



$

766




end of year

December 31,




US.



Canada



International



total


2020

















Gas supplier


$

821



$

11



$

– –



$

832


Downstream & Industry



566




fifteen




205




786


Upstream production



329




89




182




600


Midstream pipeline



307




13




22nd




342




$

2.023



$

128



$

409



$

2.560


2019

















Gas supplier


$

841



$

16



$

– –



$

857


Downstream & Industry



854




22nd




229




1.105


Upstream production



723




162




222




1.107


Midstream pipeline



538




26th




29




593




$

2,956



$

226



$

480



$

3,662


MRC Global Inc.

Additional sales information (unchecked)

(in millions)


Sales by product line




Three months ended



end of year




December 31,



December 31,



December 31,



December 31,


Art


2020



2019



2020



2019


Line pipes


$

65



$

92



$

308



$

560


Carbon fittings and flanges



76




109




340




565


Total carbon pipe, fittings and flanges



141




201




648




1,125


Valves, automation, measurement and instrumentation



216




309




1,018




1.434


Gas products



138




126




517




551


Stainless steel and alloy pipes and fittings



32




42




128




177


General products



52




88




249




375




$

579



$

766



$

2.560



$

3,662


MRC Global Inc.

Additional information (unchecked)

Reconciliation of Gross Income to Adjusted Gross Income (a non-GAAP measure)

(in millions)



Three months ended



December 31,



percentage



December 31,



percentage



2020



of receipts



2019



of income *


















Gross profit as reported

$

90




15.5

%.


$

131




17.1

%.

Depreciation


5




0.9

%.



5




0.7

%.

Amortization of intangible assets


6th




1.0

%.



9




1.2

%.

Increase in the LIFO reserve


1




0.2

%.



1




0.1

%.

Inventory costs (1)


12




2.1

%.



5




0.7

%.

Adjusted gross profit

$

114




19.7

%.


$

151




19.7

%.




end of year



December 31,



percentage



December 31,



percentage



2020



of receipts



2019



of income *


















Gross profit as reported

$

431




16.8

%.


$

653




17.8

%.

Depreciation


20th




0.8

%.



21st




0.6

%.

Amortization of intangible assets


26th




1.0

%.



42




1.1

%.

Reduction of the LIFO reserve


(19)




(0.7)

%.



(2)




(0.1)

%.

Inventory costs (1)


46




1.8

%.



5




0.1

%.

Adjusted gross profit

$

504




19.7

%.


$

719




19.6

%.


Notes on above:

* *

Don't step because of rounding

(1)

In the fourth quarter of 2020, a pre-tax non-cash charge of $ 12 million was recognized for excess and obsolete inventory that was recognized in the cost of goods sold. $ 9 million in the US, $ 2 million in Canada, and $ 1 million in international. For the full year 2020, material costs of $ 46 million (pre-tax) were recognized in cost of goods sold. Fees of $ 28 million in the US and $ 2 million in Canada relate to excess and obsolete inventory based on the current market outlook for certain products. International segment fees of $ 16 million relate to increased reserves for excess and obsolete inventory as well as the exit from the Thailand business. For each of the three months and the year ended December 31, 2019, a pre-tax non-cash charge of $ 5 million was recognized in the cost of goods sold in the international segment for excess and obsolete inventory. For each of the three months and years ended December 31, 2019, an additional $ 3 million in fees (before taxes) was booked in US revenue for the final completion of a multi-year customer project. Without these costs, adjusted gross profit for the three months ended December 31, 2019 would have been 20.1% and 19.7%, respectively.

The company defines Adjusted Gross Profit as sales minus cost of sales plus amortization plus amortization of intangible assets plus inventory costs and plus or minus the effects 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 company-to-company acquisitions may vary were involved. Similarly, the impact of the LIFO inventory costing 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 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 accounting principles in the United States and that is most directly comparable to adjusted gross profit.

MRC Global Inc.

Additional 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



end of year



December 31,



December 31,



December 31,



December 31,



2020



2019



2020



2019


















Selling and general administration

$

97



$

141



$

449



$

550


Severance Pay and Restructuring (1)


(2)




(4)




(14)




(9)


Company closings (2)


1




– –




(14)




– –


Bad debt losses from the supplier and collection of bad debts from the supplier (3)


– –




(5)




2




(5)


Adjusted selling, general and administrative expenses

$

96



$

132



$

423



$

536



Notes on above:

(1)

Compensation and restructuring costs for employees (pre-tax) related to the company's cost-cutting initiatives were recorded in 2020 and 2019. Im vierten Quartal 2020 wurden Aufwendungen in Höhe von 2 Mio. USD und in den Segmenten USA und International jeweils 1 Mio. USD verbucht. Im Jahr 2020 wurden Gebühren in Höhe von 14 Mio. USD erhoben, davon 8 Mio. USD in den USA, 5 Mio. USD in International und 1 Mio. USD in Kanada. Im vierten Quartal 2019 wurden Belastungen in Höhe von 4 Mio. USD verzeichnet, davon 1 Mio. USD im US-Segment und 3 Mio. USD im internationalen Segment. Für das Jahr 2019 wurden Belastungen in Höhe von 9 Mio. USD verbucht, davon 6 Mio. USD im US-Segment und 3 Mio. USD im internationalen Segment.

(2)

Erträge und Aufwendungen für Untermietverträge (vor Steuern) für Wertminderungen und Abbrüche von Leasingverträgen im Zusammenhang mit Schließungen von Einrichtungen, die im Wesentlichen nicht zahlungswirksam sind, wurden im Jahr 2020 erfasst. Im vierten Quartal wurden Erträge aus Untermietverträgen in Höhe von 1 Mio. USD für eine australische Immobilie in erfasst das internationale Segment. Im Jahr 2020 wurde eine Nettobelastung von 14 Mio. USD verzeichnet, davon 10 Mio. USD im internationalen Segment, 3 Mio. USD im US-amerikanischen Segment und 1 Mio. USD im kanadischen Segment.

(3)

Gebühren (vor Steuern) im Jahr 2019 im Zusammenhang mit einer Produktforderung eines ausländischen Lieferanten und Einkünfte (vor Steuern) im Zusammenhang mit der Erhebung derselben Produktforderung im Jahr 2020.

Das Unternehmen definiert bereinigte Vertriebs-, allgemeine und Verwaltungskosten (VVG-Kosten) als VVG-Kosten abzüglich Abfindungs- und Restrukturierungskosten, Schließung von Einrichtungen sowie die Einziehung von Forderungsausfällen bei Lieferanten. Das Unternehmen präsentiert angepasste VVG-Kosten, da das Unternehmen der Ansicht ist, dass dies ein nützlicher Indikator für die Betriebsleistung des Unternehmens ist, ohne Rücksicht auf Elemente, die von Unternehmen zu Unternehmen erheblich variieren können. Das Unternehmen präsentiert bereinigte VVG-Kosten, da das Unternehmen der Ansicht ist, dass bereinigte VVG-Kosten ein nützlicher Indikator für die Betriebsleistung des Unternehmens sind. Bereinigte VVG-Kosten messen unter anderem die operative Leistung des Unternehmens ohne Berücksichtigung bestimmter einmaliger, nicht zahlungswirksamer oder transaktionsbezogener Aufwendungen. Das Unternehmen verwendet angepasste VVG-Kosten als Leistungsindikator für die Geschäftsführung. Das Unternehmen ist der Ansicht, dass die VVG-Kosten die finanzielle Kennzahl sind, die gemäß den in den USA allgemein anerkannten Rechnungslegungsgrundsätzen berechnet und dargestellt wird und die am unmittelbarsten mit den bereinigten VVG-Kosten vergleichbar sind.

MRC Global Inc.

Ergänzende Informationen (ungeprüft)

Überleitung des Nettoergebnisses zum bereinigten EBITDA (eine Non-GAAP-Kennzahl)

(in millions)



Three months ended



Jahresende



December 31,



December 31,



December 31,



December 31,



2020



2019



2020



2019


















Nettogewinn (Verlust)

$

(5)



$

(24)



$

(274)



$

39


Ertragsteueraufwand


(2)




5




(9)




27


Zinsaufwendungen


6th




9




28




40


Depreciation


5




5




20th




21


Abschreibungen auf immaterielle Vermögenswerte


6th




9




26th




42


Wertminderung von Geschäfts- oder Firmenwerten und immateriellen Vermögenswerten (1)


– –




– –




242




– –


Vorratskosten (2)


12




5




46




5


Betriebsschließungen (3)


(1)




– –




17




– –


Abfindung und Restrukturierung (4)


2




4th




14th




9


Erhöhung (Verringerung) der LIFO-Reserve


1




1




(19)




(2)


Eigenkapitalbasierter Vergütungsaufwand (5)


4th




4th




12




16


Gewinn durch vorzeitiges Erlöschen von Schulden (6)


– –




– –




(1)




– –


Forderungsausfälle des Lieferanten und Eintreibung von Forderungsausfällen des Lieferanten (7)


– –




5




(2)




5


Gewinn aus Sale Leaseback (8)


(5)




– –




(5)




– –


Fremdwährungsverluste


(1)




– –




2




(1)


Bereinigtes EBITDA

$

22nd



$

23



$

97



$

201



Anmerkungen zu oben:

(1)

Im zweiten Quartal 2020 wurden nicht zahlungswirksame Aufwendungen (vor Steuern) für die Wertminderung von 217 Mio. USD für Goodwill und 25 Mio. USD für den US-amerikanischen Handelsnamen mit unbestimmter Nutzungsdauer erfasst. Die Wertminderung des Goodwills belief sich auf 177 Mio. USD für das US-Segment und 40 Mio. USD für das internationale Segment, was zu einem Saldo von 0 USD für das internationale Segment führte.

(2)

Im vierten Quartal 2020 wurden nicht zahlungswirksame Gebühren (vor Steuern) in Höhe von 12 Mio. USD für überschüssige und veraltete Lagerbestände erfasst, die in den Kosten der verkauften Waren erfasst wurden. 9 Millionen US-Dollar in den USA, 2 Millionen US-Dollar in Kanada und 1 Million US-Dollar in International. Für das Gesamtjahr 2020 wurden Sachkosten in Höhe von 46 Mio. USD (vor Steuern) in den Herstellungskosten der verkauften Waren erfasst. Gebühren in Höhe von 28 Mio. USD in den USA und 2 Mio. USD in Kanada beziehen sich auf überschüssige und veraltete Lagerbestände aufgrund der aktuellen Marktaussichten für bestimmte Produkte. Internationale Segmentgebühren in Höhe von 16 Mio. USD beziehen sich auf erhöhte Reserven für überschüssige und veraltete Lagerbestände sowie auf den Ausstieg aus dem Thailand-Geschäft. Für jeden der drei Monate und das am 31. Dezember 2019 endende Geschäftsjahr wurden nicht zahlungswirksame Kosten (vor Steuern) in Höhe von 5 Mio. USD in den Kosten der im internationalen Segment verkauften Waren für überschüssige und veraltete Lagerbestände erfasst.

(3)

Erträge und Aufwendungen für Untermietverträge (vor Steuern) für Wertminderungen und Abbrüche von Leasingverträgen im Zusammenhang mit Schließungen von Einrichtungen, die im Wesentlichen nicht zahlungswirksam sind, wurden im Jahr 2020 erfasst. Im vierten Quartal wurden Erträge aus Untermietverträgen in Höhe von 1 Mio. USD für eine australische Immobilie in erfasst das internationale Segment. Im Jahr 2020 wurde eine Nettobelastung von 14 Mio. USD verzeichnet, davon 10 Mio. USD im internationalen Segment, 3 Mio. USD im US-amerikanischen Segment und 1 Mio. USD im kanadischen Segment. Enthält auch nicht zahlungswirksame Aufwendungen (vor Steuern) in Höhe von 3 Mio. USD für die Abschreibung von Vermögenswerten für Einrichtungen mit 1 Mio. USD im internationalen Segment und 2 Mio. USD im kanadischen Segment, die in den sonstigen Aufwendungen erfasst sind.

(4)

Abfindungs- und Restrukturierungskosten für Mitarbeiter (vor Steuern) im Zusammenhang mit den Kostensenkungsinitiativen des Unternehmens wurden in den Jahren 2020 und 2019 verbucht. Im vierten Quartal 2020 wurden Aufwendungen in Höhe von 2 Mio. USD und in den Segmenten USA und International jeweils 1 Mio. USD verbucht. Im Jahr 2020 wurden Gebühren in Höhe von 14 Mio. USD erhoben, davon 8 Mio. USD in den USA, 5 Mio. USD in International und 1 Mio. USD in Kanada. Im vierten Quartal 2019 wurden Belastungen in Höhe von 4 Mio. USD verzeichnet, davon 1 Mio. USD im US-Segment und 3 Mio. USD im internationalen Segment. Für das Jahr 2019 wurden Belastungen in Höhe von 9 Mio. USD verbucht, davon 6 Mio. USD im US-Segment und 3 Mio. USD im internationalen Segment.

(5)

Aufgenommen in VVG-Kosten

(6)

Gebühr (vor Steuern) im Zusammenhang mit dem Kauf des vorrangig besicherten befristeten Darlehens, das in Sonstige, netto, erfasst ist.

(7)

Charges (pre-tax) in 2019 related to a product claim from a foreign supplier and income (pre-tax) related to the collection of the same product claim in 2020.

(8th)

Income (pre-tax) recorded in Other, net with $4 million in the U.S. and $1 million in Canada.

The company defines adjusted EBITDA as net income plus interest, income taxes, depreciation and amortization, amortization of intangibles, and certain other expenses, including non-cash expenses, (such as equity-based compensation, severance and restructuring, changes in the fair value of derivative instruments and asset impairments, including inventory) 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 also 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 Income Attributable to Common Stockholders to

Adjusted Net Income Attributable to Common Stockholders (a non-GAAP measure)

(in millions, except per share amounts)



December 31, 2020



Three months ended



Year Ended



amount



Per Share



amount



Per Share


















Net loss attributable to common stockholders

$

(11)



$

(0.13)



$

(298)



$

(3.63)


Goodwill and intangible asset impairment, net of tax (1)


– –




– –




234




2.85


Inventory-related charges, net of tax (2)


9




0.11




38




0.46


Facility closures, net of tax (3)


(1)




(0.01)




fifteen




0.18


Severance and restructuring, net of tax (4)


2




0.02




12




0.15


Recovery of supplier bad debt, net of tax (5)


– –




– –




(2)




(0.02)


Gain on sale leaseback (6)


(4)




(0.05)




(4)




(0.05)


Increase (decrease) in LIFO reserve, net of tax


1




0.01




(15)




(0.18)


Adjusted net loss attributable to common stockholders

$

(4)



$

(0.05)



$

(20)



$

(0.24)





December 31, 2019



Three months ended



Year Ended



amount



Per Share



amount



Per Share


















Net (loss) income attributable to common stockholders

$

(30)



$

(0.37)



$

fifteen



$

0.18


Inventory-related charges, net of tax (2)


5




0.06




5




0.06


Severance and restructuring, net of tax (4)


3




0.04




7th




0.08


Supplier bad debt, net of tax (5)


5




0.06




5




0.06


Decrease in LIFO reserve, net of tax


– –




– –




(2)




(0.02)


Adjusted net (loss) income attributable to common stockholders

$

(17)



$

(0.21)



$

30th



$

0.36




Notes to above:

(1)

Non-cash charges (after-tax) recorded in the second quarter of 2020 for the impairment of $215 million for goodwill and $19 million for the U.S. indefinite-lived tradename asset. The after-tax goodwill impairment consisted of $175 million for the U.S. segment and $40 million for the International segment, resulting in a $0 balance for the International segment.

(2)

In the fourth quarter of 2020, $9 million of non-cash charges (after-tax) recorded for excess and obsolete inventory recorded in cost of goods sold; $7 million in the U.S., $1 million in Canada and $1 million in International. For the full year in 2020, $38 million of non-cash charges (after-tax) recorded in cost of goods sold. Charges of $22 million in the U.S. and $1 million in Canada relate to excess and obsolete inventory as a result of the current market outlook for certain products. International segment charges of $15 million relate to increased reserves for excess and obsolete inventory as well as the exit of the Thailand business. For each of the three months and year ended December 31, 2019, $5 million of non-cash charges (after-tax) were recorded in cost of goods sold in the international segment for excess and obsolete inventory.

(3)

Sub-lease income and charges (after-tax) for lease impairments and abandonments related to facility closures, substantially non-cash, were recorded in 2020. In the fourth quarter, $1 million of sub-lease income was recorded for an Australian property in the International segment. In 2020, a net charge (after-tax) of $13 million was recorded with $10 million in the International segment, $2 million in the U.S. segment and $1 million in the Canada segment. Also includes $2 million of non-cash (after-tax) charges for the write-down of assets for facilities in Canada, recorded in Other expense.

(4)

Employee severance and restructuring charges (after-tax) associated with the company's cost reduction initiatives were recorded in 2020 and 2019. Charges of $2 million recorded in the fourth quarter of 2020 with $1 million in each of the U.S. and International segments. Charges of $12 million were recorded in 2020 with $6 million in the U.S., $5 million in International and $1 million in Canada. In the fourth quarter of 2019, charges of $3 million were recorded with $1 million in the U.S. segment and $2 million in the International segment. For the full year 2019, charges of $7 million were recorded with $5 million in the U.S. segment and $2 million in the International segment.

(5)

Charges (after-tax) in 2019 related to a product claim from a foreign supplier and income (pre-tax) related to the collection of the same product claim from a foreign supplier in 2020.

(6)

Income (after-tax) recorded in Other, net with $3 million in the U.S. and $1 million in Canada.

The company defines adjusted net income attributable to common stockholders (a non-GAAP measure) as net income attributable to common stockholders less after-tax goodwill and intangible impairment, inventory-related charges, facility closures, severance and restructuring, plus or minus the after-tax impact of its LIFO inventory costing methodology. 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 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 whether they elect to utilize LIFO and depending upon which 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.

SOURCE MRC Global Inc.

related links

http://www.mrcglobal.com