NYSE$MRC

Mrc Global Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Announced full year and fourth quarter 2020 results.

MRC Global's fourth quarter sales were $579 million, a 24% decrease compared to Q4 2019. The net loss attributable to common stockholders was ($11) million, or ($0.13) per diluted share.

  • Sales for the fourth quarter of 2020 were $579 million, 1% lower than the third quarter of 2020 and 24% lower than the fourth quarter of 2019.
  • Net loss attributable to common stockholders for the fourth quarter of 2020 was ($11) million, or ($0.13) per diluted share.
  • Adjusted EBITDA was $22 million in the fourth quarter of 2020 compared to $23 million for the same period in 2019.
  • Cash provided by operations was $83 million in the fourth quarter of 2020.

Headline financials

Total Revenue

$579M

Previous: $766M-24.4%
EPS (adj)

-$0.05

Previous: -$0.14+64.3%
Adjusted EBITDA

$22M

Previous: $23M-4.3%
Adjusted Gross Profit

$19.70

No prior period
Capital Expenditures

$3M

Previous: $6M-50.0%
Free Cash Flow

$80M

Previous: $102M-21.6%
Net Income

-$11M

Previous: -$24M+54.2%
Operating Income

-$7M

Previous: -$10M+30.0%
Gross Profit

$90M

Previous: $131M-31.3%
Cash & Equivalents

$119M

Previous: $32M+271.9%
Total Assets

$1.78B

Previous: $2.33B-23.4%
Stock-Based Comp

$4M

Previous: $4M+0.0%

Revenue & EPS history

MRC Global · Revenue · Quarterly

$579M

Q4 2020-24.4%vs Q4 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

MRC Global · $556M total across 2 segments · Q4 2020

  • U.S. Sales
    $448M-26.3%
  • International Sales
    $108M-6.1%

Forward guidance

The COVID-19 pandemic and related mitigation measures have created significant volatility and uncertainty in the oil and gas industry, resulting in lower spending by customers and reduced demand.

Tailwinds

  • MRC Global has remained operational with no closures to any facilities.
  • Office staff has returned to the office in varying degrees depending on the stage of the pandemic at each locality.
  • MRC Global has implemented various safety measures for employees working in the company’s facilities and implemented remote working for those whose jobs permit it.
  • MRC Global is committed to a safe working environment for all employees and is constantly monitoring its response in the locations where the company operates.
  • The company has fulfilled orders with little disruption from a supply chain perspective.

Headwinds

  • Oil demand has significantly deteriorated as a result of the pandemic.
  • The unparalleled demand destruction has resulted in lower spending by our customers and reduced demand for the company’s products and services.
  • Uncertainty exists as to when a more significant recovery will occur.
  • As of February 2, 2021, the company had 10 active COVID-19 illnesses reported, which is 0.4% of our global workforce.
  • The COVID-19 pandemic and related mitigation measures have created significant volatility and uncertainty in the oil and gas industry.

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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