NYSE$MRC

Mrc Global Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

MRC Global announced first quarter 2020 results with sales of $794 million and diluted earnings per share of $0.04.

MRC Global reported first quarter 2020 sales of $794 million, a 4% sequential increase. Diluted earnings per common share were $0.04, and net income attributable to common shareholders was $3 million. The company generated $37 million in cash from operations and reduced net debt by $26 million.

  • Sales of $794 million, a 4% sequential increase
  • Diluted earnings per common share of $0.04
  • Net income attributable to common shareholders of $3 million
  • Adjusted EBITDA of $34 million

Headline financials

Total Revenue

$794M

Previous: $970M-18.1%
EPS (adj)

$0.04

Previous: $0.14-71.4%
Adjusted EBITDA

$34M

No prior period
Net Debt

$493M

No prior period
Capital Expenditures

$2M

Previous: $2M+0.0%
Free Cash Flow

$35M

Previous: -$42M+183.3%
Net Income

$3M

Previous: $18M-83.3%
Operating Income

$22M

Previous: $35M-37.1%
Gross Profit

$148M

Previous: $174M-14.9%
Cash & Equivalents

$28M

Previous: $27M+3.7%
Total Assets

$2.3B

Previous: $2.67B-13.9%
Stock-Based Comp

$2M

Previous: $4M-50.0%

Revenue & EPS history

MRC Global · Revenue · Quarterly

$794M

Q1 2020-18.1%vs Q1 2019
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Revenue by segment

MRC Global · $744M total across 2 segments · Q1 2020

  • U.S. Sales
    $638M
  • International Sales
    $106M

Forward guidance

Company expects to generate over $200 million in cash flow from operations in 2020, with free cash flow of approximately $160 million.

Tailwinds

  • Counter cyclical cash flow business model
  • Available liquidity
  • Focus on long-term strategy to enhance shareholder value
  • Expected cash flow from operations of over $200 million in 2020
  • Free cash flow would be approximately $160 million

Headwinds

  • Customer spending has slowed considerably in April
  • Unfavorable commodity price environment
  • Significant decline in oil and gas global demand brought about by the COVID-19 pandemic
  • Taking steps to further reduce our operating costs by $80 million
  • Reduce inventory by $140 million or more compared to 2019

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 7 quarterly earnings reports

Historical avg

+1.5%

Avg return

Earnings day

+5.7%

Avg return

5 days after

+3.8%

Avg return

30 days after

53%

29 / 55 earnings

Positive

+43.4%

Q1 2020

Best reaction

-19.2%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025
Q2 2025-6.7%-5.9%+5.2%
Q1 2025-6.0%+6.6%+4.5%
Q4 2024+2.4%+6.4%-11.6%
Q3 2024+18.4%+11.8%+13.6%
Q2 2024-3.8%-7.6%-5.2%
Q1 2024+9.4%+18.8%+8.5%
Q4 2023+8.3%+9.7%+11.9%
Q3 2023-5.3%
Q2 2023-16.7%
Q1 2023+0.3%
Q4 2022-3.1%
Q3 2022+8.0%
Q2 2022-13.1%
Q1 2022-19.2%
Q4 2021+13.7%
Q3 2021-9.3%
Q2 2021-4.3%
Q1 2021+5.3%
Q4 2020-7.0%
Q3 2020+4.0%
Q2 2020+0.3%
Q1 2020+43.4%
Q4 2019-8.2%
Q3 2019+22.0%
Q2 2019-3.4%
Q1 2019+7.7%
Q4 2018+9.2%
Q3 2018+10.0%
Q2 2018-3.0%
Q1 2018+2.2%
Q4 2017-1.2%
Q3 2017-2.7%
Q2 2017+0.1%
Q1 2017+4.0%
Q4 2016-1.8%
Q3 2016+2.0%
Q2 2016+6.7%
Q1 2016+1.1%
Q4 2015+15.0%
Q3 2015+14.6%
Q2 2015-0.8%
Q1 2015+14.2%
Q4 2014-5.8%
Q3 2014+3.7%
Q2 2014-6.0%
Q1 2014-0.2%
Q4 2013-13.7%
Q3 2013+4.7%
Q2 2013-9.9%
Q1 2013+6.7%
Q4 2012-6.0%
Q3 2012+3.1%
Q2 2012-1.4%
Q1 2011-0.2%
Q1 2012+1.6%
Q4 2009
Q4 2011
Q3 2011
Q3 2010
Q4 2010
Q2 2011
Q2 2010
Q1 2010

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