MRC Global Inc. (MRC) Bundle
A Brief History of MRC Global Inc.
Company Overview
MRC Global Inc. is a leading distributor of pipe, valve, and fitting (PVF) products and services to the energy and industrial sectors. As of 2024, the company operates across various segments including Gas Utilities, DIET (Distribution, Industrial, Energy, and Transportation), and PTI (Process, Transmission, and Industrial).
Recent Financial Performance
For the three months ended September 30, 2024, MRC Global reported sales of $797 million, reflecting a decrease of 10% from $888 million in the same period in 2023. The decline was attributed to reduced sales across key sectors:
- Gas Utilities: $295 million (2024) vs. $314 million (2023)
- DIET: $248 million (2024) vs. $279 million (2023)
- PTI: $254 million (2024) vs. $295 million (2023)
Net Income and Earnings
MRC Global's net income for the three months ended September 30, 2024, was $29 million, compared to $35 million for the same period in 2023. The adjusted EBITDA was $48 million (6.0% of sales) for Q3 2024, down from $70 million (7.9% of sales) in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales | $797 million | $888 million |
| Net Income | $29 million | $35 million |
| Adjusted EBITDA | $48 million | $70 million |
Year-to-Date Performance
For the nine months ended September 30, 2024, MRC Global reported total sales of $2.435 billion, a decrease of 8% from $2.644 billion in the same period in 2023. A breakdown of sales by sector is as follows:
| Sector | 2024 Sales | 2023 Sales |
|---|---|---|
| Gas Utilities | $848 million | $944 million |
| DIET | $792 million | $802 million |
| PTI | $795 million | $898 million |
Operating Income
Operating income for the nine months ended September 30, 2024, was $122 million, down from $159 million in the same period in 2023, reflecting a decrease of $37 million.
Interest and Tax Expenses
The interest expense for the nine months ended September 30, 2024, was $19 million, a decrease from $26 million in 2023. The income tax expense for the same period was $23 million, compared to $37 million in 2023, resulting in effective tax rates of 23% and 28%, respectively.
| Metric | 2024 | 2023 |
|---|---|---|
| Interest Expense | $19 million | $26 million |
| Income Tax Expense | $23 million | $37 million |
Liquidity and Capital Resources
As of September 30, 2024, MRC Global's primary credit facility was a $750 million Global ABL Facility, with an excess availability of $485 million. The company also entered into a new $350 million senior secured term loan in October 2024.
Conclusion of Recent Developments
MRC Global continues to navigate challenges in the current economic environment, focusing on optimizing its operations and maintaining strong relationships with key customers to drive future growth.
A Who Owns MRC Global Inc. (MRC)
Ownership Structure
As of 2024, MRC Global Inc. has a diverse ownership structure comprising institutional investors, individual shareholders, and company executives. The following table details the largest shareholders as of September 30, 2024:
| Shareholder | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 10.5 | 9.6% |
| The Vanguard Group, Inc. | 9.8 | 8.9% |
| Mario Investments, LLC | 0.363 | 0.3% |
| State Street Corporation | 7.2 | 6.5% |
| Other Institutional Investors | 32.5 | 29.6% |
| Executive and Board Ownership | 3.2 | 2.9% |
| Public Float | 47.9 | 43.2% |
Stock Performance
MRC Global Inc. has seen fluctuations in its stock price over 2024. As of September 30, 2024, the closing stock price was $27.50, reflecting a year-to-date decline of approximately 10% from $30.55 at the start of the year.
Market Capitalization
The market capitalization of MRC Global Inc. as of September 30, 2024, was approximately $2.4 billion, based on 109 million shares outstanding.
Insider Transactions
In 2024, there were notable insider transactions, including the repurchase of 363,000 shares of the Series A Convertible Preferred Stock for $361 million from Mario Investments, LLC. This repurchase was funded through a combination of a new $350 million Term Loan and cash on hand.
Financial Overview
For the nine months ended September 30, 2024, MRC Global reported total revenues of $2.435 billion, a decrease of 8% compared to $2.644 billion for the same period in 2023. The net income attributable to common stockholders was $60 million.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenue | $2.435 billion | $2.644 billion |
| Net Income | $60 million | $75 million |
| Adjusted EBITDA | $170 million | $202 million |
| Earnings per Share (EPS) | $0.71 | $0.89 |
Dividends
MRC Global declared dividends of $6 million on its Series A Preferred Stock for the nine months ended September 30, 2024, consistent with the previous year.
Conclusion
MRC Global Inc. continues to maintain a robust ownership structure, with significant institutional involvement and active insider management. The company’s financial performance reflects challenges in the market, yet it remains a key player in the supply chain for energy and industrial sectors.
MRC Global Inc. (MRC) Mission Statement
Overview
The mission statement of MRC Global Inc. emphasizes the company’s commitment to being a leading distributor of pipe, valve, and fitting products and services for the energy and industrial sectors. MRC Global aims to deliver comprehensive solutions that enhance operational efficiency and support the energy transition, while maintaining high standards of safety and sustainability.
Core Values
- Safety: Commitment to safety in all operations.
- Integrity: Upholding ethical practices in business.
- Customer Focus: Prioritizing customer needs and satisfaction.
- Innovation: Encouraging innovative solutions to meet changing market demands.
- Sustainability: Supporting sustainable practices in energy and resource usage.
Financial Highlights
As of September 30, 2024, MRC Global reported significant financial metrics that reflect its operational performance:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income | $29 million | $35 million | -17.14% |
| Adjusted EBITDA | $48 million | $70 million | -31.43% |
| Sales | $797 million | $888 million | -10.25% |
| Operating Income | $37 million | $57 million | -35.09% |
| SG&A Expenses | $123 million | $126 million | -2.38% |
Market Segments
MRC Global operates in various market segments contributing to its revenue. The following table details the revenue contributions from different sectors for the first nine months of 2024:
| Market Segment | % of Total Revenue | Revenue (in millions) | % Change YoY |
|---|---|---|---|
| Gas Utilities | 35% | $854 million | -10% |
| Downstream, Industrial and Energy Transition (DIET) | 32% | $780 million | -1% |
| Production and Transmission Infrastructure (PTI) | 33% | $801 million | -11% |
Strategic Initiatives
MRC Global is focusing on strategic initiatives that include:
- Enhancing supply chain efficiency to reduce costs and improve service delivery.
- Investing in technology to support customer engagement and operational efficiency.
- Expanding product offerings to meet the evolving demands in energy transition projects.
- Fostering partnerships to enhance market reach and service capabilities.
Conclusion on Mission Statement
The mission statement of MRC Global Inc. reflects its commitment to operational excellence, customer satisfaction, and sustainability, aligning with its strategic goals and market demands. The company's focus on safety, integrity, and innovation is crucial as it navigates the challenges and opportunities in the energy and industrial sectors.
How MRC Global Inc. (MRC) Works
Company Overview
MRC Global Inc. operates as a distributor of pipe, valve, and fitting (PVF) products and related services to various sectors, including gas utilities, industrial, and energy transition markets. The company serves customers in the United States, Canada, and internationally.
Financial Performance
For the three months ended September 30, 2024, MRC Global reported total sales of $797 million, a decrease of 10% from $888 million in the same period in 2023. The breakdown of sales by segment is as follows:
| Segment | Sales (2024) | Sales (2023) | $ Change | % Change |
|---|---|---|---|---|
| U.S. | $644 million | $745 million | $(101 million) | (14%) |
| Canada | $26 million | $38 million | $(12 million) | (32%) |
| International | $127 million | $105 million | $22 million | 21% |
Revenue Breakdown by Sector
For the nine months ended September 30, 2024, revenue by sector is detailed below:
| Sector | Revenue (2024) | Revenue (2023) | $ Change | % Change |
|---|---|---|---|---|
| Gas Utilities | $848 million | $944 million | $(96 million) | (10%) |
| Downstream, Industrial and Energy Transition (DIET) | $792 million | $802 million | $(10 million) | (1%) |
| PTI | $795 million | $898 million | $(103 million) | (11%) |
Operating Income
MRC Global's operating income for the three months ended September 30, 2024, was $37 million, compared to $57 million in the prior year, representing a 35% decline. The operating income by segment is as follows:
| Segment | Operating Income (2024) | Operating Income (2023) | $ Change | % Change |
|---|---|---|---|---|
| U.S. | $30 million | $54 million | $(24 million) | (44%) |
| Canada | $(2 million) | $(2 million) | $0 million | N/M |
| International | $9 million | $5 million | $4 million | 80% |
Net Income and Earnings Per Share
For the three months ended September 30, 2024, MRC Global reported a net income of $29 million, down from $35 million in the previous year. The net income attributable to common stockholders was $23 million, resulting in basic and diluted earnings per share of $0.27 and $0.27, respectively.
Adjusted EBITDA
Adjusted EBITDA for the three months ended September 30, 2024, was $48 million, a decrease of 31% from $70 million in the same period in 2023.
Liquidity and Capital Resources
As of September 30, 2024, MRC Global had a primary credit facility of $750 million under its Global ABL Facility, with outstanding borrowings of $85 million. The facility matures in September 2026 and has an accordion feature allowing an increase of up to $250 million.
Inventory Composition
As of September 30, 2024, MRC Global's inventory composition is as follows:
| Product Type | Inventory Value (2024) | Inventory Value (2023) |
|---|---|---|
| Valves, automation, measurement and instrumentation | $233 million | $274 million |
| Carbon steel pipe, fittings and flanges | $156 million | $193 million |
| Gas products | $260 million | $266 million |
| All other products | $109 million | $126 million |
Recent Trends and Outlook
In recent months, MRC Global has faced challenges due to fluctuations in oil and natural gas prices, impacting customer spending. However, the company expects long-term growth driven by infrastructure needs and energy transition projects.
How MRC Global Inc. (MRC) Makes Money
Revenue Sources
MRC Global Inc. generates revenue primarily through the sale of pipe, valve, and fitting (PVF) products to various sectors, including Gas Utilities, Downstream, Industrial and Energy Transition (DIET), and Power Transmission and Industrial (PTI). The following table presents MRC's revenue disaggregated by sector for the nine months ended September 30, 2024, and 2023 (in millions):
| Sector | 2024 Revenue | 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Gas Utilities | $848 | $944 | ($96) | (10%) |
| DIET | $792 | $802 | ($10) | (1%) |
| PTI | $795 | $898 | ($103) | (11%) |
| Total Revenue | $2,435 | $2,644 | ($209) | (8%) |
Segment Performance
The U.S. segment accounted for the majority of MRC's revenue, contributing $1,988 million in the nine months ended September 30, 2024, down from $2,212 million in the prior year. The Canada segment generated $88 million, a decrease from $118 million, while the International segment increased to $359 million from $314 million.
| Segment | 2024 Revenue | 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| U.S. | $1,988 | $2,212 | ($224) | (10%) |
| Canada | $88 | $118 | ($30) | (25%) |
| International | $359 | $314 | $45 | 14% |
| Total Revenue | $2,435 | $2,644 | ($209) | (8%) |
Gross Profit and Operating Income
For the nine months ended September 30, 2024, MRC reported a gross profit of $496 million, representing a gross margin of 20.4%. This is a decrease from $537 million and a margin of 20.3% in 2023. Operating income for the same period was $122 million, down from $159 million in 2023, reflecting a decline in sales across all sectors.
| Metric | 2024 Amount | 2023 Amount | Change ($) |
|---|---|---|---|
| Gross Profit | $496 | $537 | ($41) |
| Operating Income | $122 | $159 | ($37) |
Adjusted EBITDA
MRC's Adjusted EBITDA for the nine months ended September 30, 2024, was $170 million, compared to $202 million in the prior year. The following table summarizes the reconciliation of Adjusted EBITDA to net income:
| Metric | 2024 Amount | 2023 Amount |
|---|---|---|
| Net Income | $78 | $93 |
| Income Tax Expense | $23 | $37 |
| Interest Expense | $19 | $26 |
| Depreciation and Amortization | $16 | $15 |
| Amortization of Intangibles | $15 | $15 |
| Adjusted EBITDA | $170 | $202 |
Sales by Product Line
MRC's sales by product line for the nine months ended September 30, 2024, are detailed in the table below (in millions):
| Product Line | 2024 Sales | 2023 Sales |
|---|---|---|
| Line Pipe | $351 | $433 |
| Carbon Fittings and Flanges | $305 | $353 |
| Valves, Automation, Measurement | $878 | $920 |
| Gas Products | $574 | $612 |
| Stainless Steel and Alloy Pipe | $130 | $108 |
| Total Sales | $2,435 | $2,644 |
Interest Expense and Net Income
For the nine months ended September 30, 2024, MRC's interest expense was $19 million, a decrease from $26 million in 2023. The company reported a net income of $78 million for the nine months ended September 30, 2024, down from $93 million in 2023.
| Metric | 2024 Amount | 2023 Amount |
|---|---|---|
| Interest Expense | $19 | $26 |
| Net Income | $78 | $93 |
Effective Tax Rate
The effective tax rate for MRC Global was 23% for the nine months ended September 30, 2024, compared to 28% for the same period in 2023.
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Resources:
- MRC Global Inc. (MRC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MRC Global Inc. (MRC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MRC Global Inc. (MRC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.