MRC net income down 14% YOY
In third quarter reporting, MRC Global Inc. said its net income was $23 million, a 14% decrease from $29 million in the third quarter of '23.
As compared to the same quarter a year ago, the Production and Transmission Infrastructure (PTI) sector declined the most followed by the Downstream, Industrial and Energy Transition (DIET) and Gas Utilities sectors. Sequentially, the company’s sales decline was due to the PTI and DIET sectors, partially offset by an increase in the Gas Utilities sector.
Third Quarter 2024 Financial Highlights:
- Cash flow provided by operations of $96 million for the third quarter and $197 million in the first nine months of 2024
- Sales of $797 million, a 4% decrease compared to the second quarter of 2024
- Adjusted Gross Profit, as a percentage of sales, of 20.8%
- Adjusted EBITDA of $48 million, or 6.0% of sales
- Net Working Capital, as a percentage of sales, of 14.3% - a new company record low
- Net Debt leverage ratio of 0.1 times
“As we guided on our last earnings call, revenue and adjusted EBITDA declined in the third quarter due to slowing activity in the U.S. oilfield and project delays in our DIET sector," said President and CEO Rob Saltiel. "Despite these headwinds, we generated operating cash flow of $96 million, bringing our 2024 total to $197 million, essentially achieving our full year cash flow target of $200 million a quarter early. Given our robust cash flow generation, we are raising our guidance for the full year operating cash flow to $220 million or more.
"As recently announced, we repurchased all of our convertible preferred shares through a successful new Term Loan B, and we are in the process of extending the maturity of our asset-based lending facility to 2029. We expect that these transactions will be accretive to earnings and cash flow in 2025 and beyond, and they simplify our capital structure while maintaining a solid balance sheet," Saltiel added.
INDUSTRIAL SUPPLY MAGAZINE
The November/December issue of Industrial Supply magazine features an in-depth cover story about Kimball Midwest. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and Mike Marks, as well as interviews with numerous product and distribution industry experts.
