NYSE$MRC

Mrc Global Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Sales decreased and a net loss was reported.

MRC Global Inc. reported a decrease in sales to $766 million for Q4 2019, which was 24% lower than Q4 2018. The company reported a net loss attributable to common stockholders of $(30) million, or $(0.37) per diluted share, as compared to income of $4 million, or $0.04 per diluted share in Q4 2018.

  • Sales of $766 million
  • Net loss attributable to common stockholders of $(30) million
  • Adjusted EBITDA of $23 million
  • Full Year Cash Flow from Operations of $242 Million, Including $108 Million Generated in the Fourth Quarter

Headline financials

Total Revenue

$766M

Previous: $1.01B-24.1%
EPS (adj)

-$0.14

Previous: $0.07-300.0%
Adjusted EBITDA

$23M

Previous: $63M-63.5%
Capital Expenditures

$6M

Previous: $5M+20.0%
Free Cash Flow

$102M

Previous: $130M-21.5%
Net Income

-$24M

Previous: $10M-340.0%
Operating Income

-$10M

Previous: $23M-143.5%
Gross Profit

$131M

Previous: $171M-23.4%
Cash & Equivalents

$32M

Previous: $43M-25.6%
Total Assets

$2.33B

Previous: $2.43B-4.5%
Stock-Based Comp

$4M

Previous: $3M+33.3%

Revenue & EPS history

MRC Global · Revenue · Quarterly

$766M

Q4 2019-24.1%vs Q4 2018
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

MRC Global · $723M total across 2 segments · Q4 2019

  • U.S. Sales
    $608M-21.9%
  • International Sales
    $115M-24.3%

Forward guidance

Due to continued weakness in market conditions, we expect 2020 activity levels to be lower than 2019. However, we remain committed to delivering the highest returns for shareholders through cost and debt reduction, operational and working capital efficiencies and a strategy of pursuing higher margin opportunities.

Tailwinds

  • Cost and debt reduction
  • Operational efficiencies
  • Working capital efficiencies
  • Pursuing higher margin opportunities
  • Minimum target of $110 million in 2020 cash flow from operations

Headwinds

  • Continued weakness in market conditions
  • Expect 2020 activity levels to be lower than 2019
  • U.S. sales in the fourth quarter of 2019 were $608 million, down $170 million, or 22%, from the same quarter in 2018.
  • Canadian sales in the fourth quarter of 2019 were $43 million, down $36 million, or 46%, from the same quarter in 2018
  • International sales in the fourth quarter of 2019 were $115 million, down $37 million, or 24%, from the same period in 2018

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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