HOUSTON, Nov. 2, 2017 /PRNewswire/ -- MRC Global Inc.
(NYSE: MRC), the largest global distributor, based on sales, of
pipe, valves and fittings and related products and services to the
energy industry, today announced third quarter 2017 results.
The company's sales were $959
million for the third quarter of 2017, which was 21% higher
than the third quarter of 2016 and 4% higher than the second
quarter of 2017. Growth across all sectors drove the increase in
both comparative periods.
Net loss attributable to common stockholders for the third
quarter of 2017 and 2016 was $(3)
million, or $(0.03) per
diluted share, and $(46) million, or $(0.48) per diluted share, respectively. The
third quarter 2017 and 2016 results include after-tax charges of
$5 million, or $0.05 per diluted share for the write off of debt
issuance costs associated with refinancing our debt and
$40 million, or $0.42 per diluted share of non-cash inventory and
restructuring charges, respectively.
"Third quarter results were strong, delivering adjusted gross
margin of 19% and adjusted EBITDA of $56
million, as we worked through the disruption of two major
hurricanes and helped our customers get their operations back
online," Andrew R. Lane, MRC
Global's president and chief executive officer stated.
"I am pleased with 18% revenue growth for the first nine months
of 2017 over the prior year as well as the continued execution of
several multi-year framework agreements this year. In 2012, we
executed the first global valve agreement in the industry with
Shell and we have continued to build on that success, as this
quarter we extended that agreement for an additional five years.
Also, capitalizing on favorable market conditions, we refinanced
our senior secured term loan and asset based lending facility this
quarter, extending our maturities to 2024 and 2022, respectively.
We are well-positioned for continued growth as the energy markets
continue to improve," Mr. Lane added.
MRC Global's third quarter 2017 gross profit was $152 million, or 15.8% of sales, an increase from
third quarter 2016 gross profit of $88
million, or 11.1% of sales, which includes $45 million of non-cash inventory charges
recorded in cost of sales. Gross profit for the third quarter of
2017 and 2016 reflects an expense of $13
million and a benefit of $3
million, respectively, in cost of sales relating to the use
of the last-in, first out (LIFO) method of inventory cost
accounting.
Selling, general and administrative (SG&A) expenses were
$130 million, or 13.6% of sales, for
the third quarter of 2017 compared to $124
million, or 15.6% of sales, for the same period of 2016.
SG&A expenses for the third quarter of 2016 include
$3 million of pre-tax severance and
restructuring charges. There were no such charges in the third
quarter of 2017.
Adjusted EBITDA was $56 million in
the third quarter of 2017 compared to $24
million for the same period in 2016. Please refer to the
reconciliation of adjusted EBITDA (a non-GAAP measure) to net
income (loss) (a GAAP measure) in this release.
Sales by Segment
U.S. sales in the third quarter of 2017 were $759 million, up $169
million, or 29%, from the same quarter in 2016. The increase
was across all sectors and is primarily due to increased midstream
customer activity and upstream well completion activity.
Canadian sales in the third quarter of 2017 were $77 million, up $7
million, or 10%, from the same quarter in 2016 primarily due
to the upstream business as a result of an increase in rig count
and well completions, partially offset by a decline in the
midstream business. Canadian sales were favorably impacted by
$3 million as a result of a stronger Canadian dollar relative
to the U.S. dollar.
International sales in the third quarter of 2017 were
$123 million, down $10 million,
or 8%, from the same period in 2016. The decrease was primarily due
to declines in the upstream sector partially offset by a
$12 million Australian line pipe
delivery in the midstream sector. The decline in upstream was due
primarily to the conclusion of a major project in Norway. The strengthening of foreign
currencies relative to the U.S. dollar favorably impacted sales by
$3 million.
Sales by Sector
Upstream sales in the third quarter of 2017 increased 20% over
the third quarter of 2016 to $269 million, or 28% of total
sales. The increase in upstream sales was in our U.S. segment,
which was up 42% and our Canadian segment, which was up 55% as a
result of increased customer activity.
Midstream sales in the third quarter of 2017 increased 34% from
the third quarter of 2016 to $437 million, or 46% of total
sales. Sales to transmission and gathering customers were up 41%
while sales to gas utility customers were up by 27% over the same
quarter in 2016.
Downstream sales in the third quarter of 2017 increased 5% from
the third quarter of 2016 to $253 million, or 26% of total
sales. The U.S. downstream sector was the primary driver of the
increase growing 6% over the third quarter of last year.
Balance Sheet
During the third quarter, we refinanced our senior secured term
loan and our asset based lending facility at lower interest rates
and extended the maturities to 2024 and 2022, respectively. The
outstanding balances on the senior secured term loan and the asset
based lending facility (ABL) at September
30, 2017 were $397 million and
$50 million, respectively.
Availability under the ABL was $489
million and debt, net of cash, was $407 million as of
September 30, 2017.
Share Repurchase Program
In October 2017, the board of
directors authorized a share repurchase program for common stock of
up to $100 million. The shares may be repurchased at
management's discretion in the open market. Depending on market
conditions and other factors, these repurchases may be commenced or
suspended from time to time without prior notice. The program is
scheduled to expire on December 31,
2018.
"This authorization demonstrates the confidence the Board has in
our strategy, our ability to deliver long-term shareholder value
and the overall intrinsic value of the company. Our strong balance
sheet position provides sufficient capital for growth and
opportunistic share repurchases." Mr. Lane commented.
Conference Call
The Company will hold a conference call to discuss its third
quarter 2017 results at 10:00 a.m. Eastern
Time (9:00 a.m. Central Time)
on November 3, 2017. 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, please log
onto the web at www.mrcglobal.com and go to the "Investor
Relations" page of the company's website at least fifteen minutes
early to register, download and install any necessary audio
software. For those who cannot listen to the live call, a replay
will be available through November 17,
2017 and can be accessed by dialing 201-612-7415 and using
pass code 13670115#. 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, is the largest global distributor, based
on sales, of pipe, valves and fittings (PVF) and related products
and services to the energy industry and supplies these products and
services across each of the upstream, midstream and downstream
sectors. More information about MRC Global can be found on our
website 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", "looking forward", "guidance" 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, tax rate, capital
expenditures and cash flow, 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 our control,
including the factors described in the company's SEC filings that
may cause our 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 oil and natural gas prices; decreases in oil and
natural gas industry expenditure levels, which may result from
decreased oil and natural gas prices or other factors; increased
usage of alternative fuels, which may negatively affect oil and
natural gas industry expenditure levels; U.S. and
international general economic conditions; the company's ability to
compete successfully with other companies in MRC
Global's industry; the risk that manufacturers of the
products the company distributes will sell a substantial amount of
goods directly to end users in the industry sectors the
company serves; unexpected supply
shortages; cost increases by the company's
suppliers; 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 the
company's inventory to decline;
decreases in steel prices, which could
significantly lower MRC Global's profit;
increases in steel prices, which the
company may be unable to pass along to its customers which
could significantly lower its profit; 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; changes in the
company's customer and product mix; risks
related to the company's customers' creditworthiness;
the success of the company's acquisition strategies; the
potential adverse effects associated with integrating acquisitions
into the company's business and whether these acquisitions will
yield their intended benefits; the company's significant
indebtedness; the dependence on the company's
subsidiaries for cash to meet its debt obligations;
changes in the company's credit profile;
a decline in demand for certain of the products the
company distributes if import restrictions on these products are
lifted or imposed; environmental, health and safety laws and
regulations and the interpretation or implementation
thereof; 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; the potential loss of key personnel; interruption in
the proper functioning of the company's information systems
and the occurrence of cyber security incidents; loss of
third-party transportation providers; potential
inability to obtain necessary capital; risks
related to adverse weather events or natural disasters;
impairment of our goodwill or other intangible
assets; adverse changes in political or economic
conditions in the countries in which the company operates;
exposure to U.S. and international laws and regulations, including
the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act and
other economic sanction programs; risks associated with
international stability and geopolitical developments; risks
relating to ongoing evaluations of internal controls required by
Section 404 of the Sarbanes-Oxley Act; the impact on us of
changes in generally accepted accounting principles or tax laws or
adverse positions taken by taxing authorities in the countries in
which the company operates; and compliance with and changes
in laws and regulations in the countries in which we
operate.
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. Our filings and other important
information are also available on the Investor Relations page of
our 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
Investor Relations
MRC Global Inc.
Monica.Broughton@mrcglobal.com
832-308-2847
MRC Global
Inc.
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(in millions,
except shares)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash
|
$
40
|
|
$
109
|
Accounts receivable,
net
|
578
|
|
399
|
Inventories,
net
|
649
|
|
561
|
Other current
assets
|
40
|
|
48
|
Total current
assets
|
1,307
|
|
1,117
|
|
|
|
|
Other
assets
|
20
|
|
19
|
|
|
|
|
Property, plant and
equipment, net
|
144
|
|
135
|
|
|
|
|
Intangible
assets:
|
|
|
|
Goodwill,
net
|
486
|
|
482
|
Other intangible
assets, net
|
379
|
|
411
|
|
|
|
|
|
$
2,336
|
|
$
2,164
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Trade accounts
payable
|
$
449
|
|
$
314
|
Accrued expenses and
other current liabilities
|
115
|
|
111
|
Current portion of
long-term debt
|
3
|
|
8
|
Total current
liabilities
|
567
|
|
433
|
|
|
|
|
Long-term
obligations:
|
|
|
|
Long-term debt,
net
|
444
|
|
406
|
Deferred income
taxes
|
172
|
|
184
|
Other
liabilities
|
22
|
|
23
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
6.5% Series A
Convertible Perpetual Preferred Stock, $0.01 par value; authorized
363,000 shares; 363,000 shares issued and outstanding
|
355
|
|
355
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock, $0.01 par
value per share: 500 million shares authorized, 103,051,858 and
102,529,637 issued, respectively
|
1
|
|
1
|
Additional paid-in
capital
|
1,686
|
|
1,677
|
Retained
deficit
|
(577)
|
|
(574)
|
Less: Treasury stock at
cost: 8,537,410 and 7,677,580 shares, respectively
|
(125)
|
|
(107)
|
Accumulated other
comprehensive loss
|
(209)
|
|
(234)
|
|
776
|
|
763
|
|
$
2,336
|
|
$
2,164
|
MRC Global
Inc.
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
(in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Sales
|
$
959
|
|
$
793
|
|
$
2,743
|
|
$
2,322
|
Cost of
sales
|
807
|
|
705
|
|
2,302
|
|
1,976
|
Gross
profit
|
152
|
|
88
|
|
441
|
|
346
|
Selling, general and
administrative expenses
|
130
|
|
124
|
|
388
|
|
396
|
Operating income
(loss)
|
22
|
|
(36)
|
|
53
|
|
(50)
|
Other
expense:
|
|
|
|
|
|
|
|
Interest
expense
|
(9)
|
|
(9)
|
|
(24)
|
|
(26)
|
Write off of debt
issuance costs
|
(8)
|
|
-
|
|
(8)
|
|
-
|
Other, net
|
-
|
|
3
|
|
-
|
|
2
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
5
|
|
(42)
|
|
21
|
|
(74)
|
Income tax expense
(benefit)
|
2
|
|
(2)
|
|
6
|
|
(9)
|
Net income
(loss)
|
3
|
|
(40)
|
|
15
|
|
(65)
|
Series A preferred
stock dividends
|
6
|
|
6
|
|
18
|
|
18
|
Net loss attributable
to common stockholders
|
$
(3)
|
|
$
(46)
|
|
$
(3)
|
|
$
(83)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per common
share
|
$
(0.03)
|
|
$
(0.48)
|
|
$
(0.03)
|
|
$
(0.85)
|
Diluted loss per
common share
|
$
(0.03)
|
|
$
(0.48)
|
|
$
(0.03)
|
|
$
(0.85)
|
Weighted-average
common shares, basic
|
94.5
|
|
95.9
|
|
94.6
|
|
98.1
|
Weighted-average
common shares, diluted
|
94.5
|
|
95.9
|
|
94.6
|
|
98.1
|
MRC Global
Inc.
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(in
millions)
|
|
|
|
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
|
|
|
Operating
activities
|
|
Net income
(loss)
|
$
15
|
|
$
(65)
|
Adjustments to
reconcile net income (loss) to net cash (used in) provided by
operations:
|
|
|
|
Depreciation and
amortization
|
16
|
|
16
|
Amortization of
intangibles
|
34
|
|
35
|
Equity-based
compensation expense
|
12
|
|
9
|
Deferred income tax
benefit
|
(13)
|
|
(12)
|
Amortization of debt
issuance costs
|
3
|
|
3
|
Write off of debt
issuance costs
|
8
|
|
-
|
Increase (decrease) in
LIFO reserve
|
19
|
|
(7)
|
Inventory-related
charges
|
-
|
|
45
|
Foreign currency
(gains) losses
|
(2)
|
|
1
|
Other
|
3
|
|
4
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(165)
|
|
88
|
Inventories
|
(100)
|
|
119
|
Other current
assets
|
15
|
|
1
|
Accounts
payable
|
127
|
|
11
|
Accrued expenses and
other current liabilities
|
(9)
|
|
(18)
|
Net cash (used in)
provided by operations
|
(37)
|
|
230
|
|
|
|
|
Investing
activities
|
|
|
|
Purchases of
property, plant and equipment
|
(23)
|
|
(24)
|
Proceeds from the
disposition of property, plant and equipment
|
-
|
|
1
|
Proceeds from the
disposition of non-core product line
|
-
|
|
48
|
Net cash (used in)
provided by investing activities
|
(23)
|
|
25
|
|
|
|
|
Financing
activities
|
|
|
|
Payments on revolving
credit facilities
|
(468)
|
|
(32)
|
Proceeds from
revolving credit facilities
|
518
|
|
32
|
Payments on long-term
obligations
|
(18)
|
|
(6)
|
Debt issuance costs
paid
|
(7)
|
|
-
|
Purchase of common
stock
|
(18)
|
|
(88)
|
Dividends paid on
preferred stock
|
(18)
|
|
(18)
|
Repurchases of shares
to satisfy tax withholdings
|
(3)
|
|
-
|
Net cash used in
financing activities
|
(14)
|
|
(112)
|
|
|
|
|
(Decrease) increase
in cash
|
(74)
|
|
143
|
Effect of foreign
exchange rate on cash
|
5
|
|
1
|
Cash -- beginning of
period
|
109
|
|
69
|
Cash -- end of
period
|
$
40
|
|
$
213
|
MRC Global
Inc.
|
Supplemental
Information (Unaudited)
|
Reconciliation of
Adjusted EBITDA (a non-GAAP measure) to Net Income
(Loss)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
3
|
|
$
(40)
|
|
$
15
|
|
$
(65)
|
Income tax expense
(benefit)
|
2
|
|
(2)
|
|
6
|
|
(9)
|
Interest
expense
|
9
|
|
9
|
|
24
|
|
26
|
Depreciation and
amortization
|
5
|
|
6
|
|
16
|
|
16
|
Amortization of
intangibles
|
12
|
|
12
|
|
34
|
|
35
|
Increase (decrease)
in LIFO reserve
|
13
|
|
(3)
|
|
19
|
|
(7)
|
Change in fair value
of derivative instruments
|
1
|
|
(2)
|
|
1
|
|
-
|
Equity-based
compensation expense (1)
|
3
|
|
2
|
|
12
|
|
9
|
Inventory-related
charges (2)
|
-
|
|
40
|
|
-
|
|
40
|
Write off of debt
issuance costs (3)
|
8
|
|
-
|
|
8
|
|
-
|
Severance and
restructuring charges (4)
|
-
|
|
3
|
|
-
|
|
12
|
Litigation settlement
(5)
|
-
|
|
-
|
|
3
|
|
-
|
Foreign currency
(gains) losses
|
-
|
|
(1)
|
|
(2)
|
|
1
|
Adjusted
EBITDA
|
$
56
|
|
$
24
|
|
$
136
|
|
$
58
|
|
|
|
|
|
|
|
|
Notes to
above:
|
(1)
|
Recorded in
SG&A
|
(2)
|
Non-cash charges
(pre-tax) recorded in cost of goods sold. Charges in the
international segment are related to a restructuring of our
Australian business and market conditions in Iraq as well as an
increase in reserves for excess and obsolete inventory in the U.S.
and Canada as a result of the current market outlook for certain
products.
|
(3)
|
Charge (pre-tax)
related to refinancing of our senior secured term loan and our
asset based lending facility.
|
(4)
|
Charge (pre-tax)
related to employee severance and restructuring charges associated
with the company's cost reduction initiatives recorded in
SG&A.
|
(5)
|
Charge (pre-tax)
related to the settlement of litigation with Weatherford Canada
Partnership in the second quarter 2017 recorded in Other,
net. The company previously recognized a charge of $3 million
associated with this matter in the fourth quarter of
2015.
|
|
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
Adjusted Gross Profit (a non-GAAP measure) to Gross
Profit
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
September
30,
|
|
Percentage
|
|
September
30,
|
|
Percentage
|
|
2017
|
|
of
Revenue
|
|
2016
|
|
of
Revenue
|
|
|
|
|
|
|
|
|
Gross profit, as
reported
|
$
152
|
|
15.8%
|
|
$
88
|
(1)
|
11.1%
|
Depreciation and
amortization
|
5
|
|
0.5%
|
|
6
|
|
0.8%
|
Amortization of
intangibles
|
12
|
|
1.3%
|
|
12
|
|
1.5%
|
Increase (decrease)
in LIFO reserve
|
13
|
|
1.4%
|
|
(3)
|
|
(0.4%)
|
Adjusted Gross
Profit
|
$
182
|
|
19.0%
|
|
$
103
|
(1)
|
13.0%
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
Percentage
|
|
September
30,
|
|
Percentage
|
|
2017
|
|
of
Revenue
|
|
2016
|
|
of
Revenue
|
|
|
|
|
|
|
|
|
Gross profit, as
reported
|
$
441
|
|
16.1%
|
|
$
346
|
(1)
|
14.9%
|
Depreciation and
amortization
|
16
|
|
0.6%
|
|
16
|
|
0.7%
|
Amortization of
intangibles
|
34
|
|
1.2%
|
|
35
|
|
1.5%
|
Increase (decrease)
in LIFO reserve
|
19
|
|
0.7%
|
|
(7)
|
|
(0.3%)
|
Adjusted Gross
Profit
|
$
510
|
|
18.6%
|
|
$
390
|
(1)
|
16.8%
|
|
Notes to
above:
|
(1)
|
Includes $45 million
of non-cash charges (pre-tax) recorded in cost of goods sold.
Charges in the international segment are related to a restructuring
of our Australian business and market conditions in Iraq as well as
an increase in reserves for excess and obsolete inventory in the
U.S. and Canada as a result of the current market outlook for
certain products. Gross profit, as reported, excluding these
charges, would be $133 million (16.8%) and $391 million (16.8%) for
the three and the nine months ended September 30, 2016,
respectively. Adjusted Gross Profit, excluding these charges, would
be $148 million (18.7%) and $435 million (18.7%) for the three and
the nine months ended September 30, 2016, respectively.
|
|
The company defines
Adjusted Gross Profit as sales, less cost of sales, plus
depreciation and amortization, plus amortization of intangibles,
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 whether they elect to utilize LIFO and
depending upon which 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 Sales
Information (Unaudited)
|
(in
millions)
|
|
|
Sales by
Segment
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
U.S.
|
$
759
|
|
$
590
|
|
$
2,145
|
|
$
1,747
|
Canada
|
77
|
|
70
|
|
223
|
|
188
|
International
|
123
|
|
133
|
|
375
|
|
387
|
|
$
959
|
|
$
793
|
|
$
2,743
|
|
$
2,322
|
Sales by Product
Line
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
Type
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Valves, automation,
measurement and instrumentation
|
|
$
338
|
|
$
296
|
|
$
987
|
|
$
894
|
Line pipe
|
|
201
|
|
117
|
|
517
|
|
345
|
Gas products
|
|
150
|
|
124
|
|
427
|
|
332
|
Carbon steel fittings
and flanges
|
|
143
|
|
117
|
|
405
|
|
353
|
Stainless steel and
alloy pipe and fittings
|
|
45
|
|
60
|
|
136
|
|
155
|
Other
|
|
82
|
|
79
|
|
271
|
|
243
|
|
|
$
959
|
|
$
793
|
|
$
2,743
|
|
$
2,322
|
View original
content:http://www.prnewswire.com/news-releases/mrc-global-announces-third-quarter-2017-results-and-100-million-share-repurchase-program-300548769.html
SOURCE MRC Global Inc.