MRC Global Reports Full-year 2021 Recap and 2022 Outlook

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MRC Global Inc., a distributor of pipe, valves and fittings (PVF) and other infrastructure products and services to diversified energy, industrial and gas utilities’ end markets, reported full year and fourth quarter 2021 results.

Net loss attributable to common stockholders for the fourth quarter of 2021 was ($10) million, or ($0.12) per diluted share, as compared to a net loss of ($11) million or ($0.13) per diluted share in the fourth quarter of 2020. Net loss attributable to common stockholders for 2021 was ($38) million or ($0.46) per diluted share as compared to ($298) million, or ($3.63) per diluted share in 2020. Adjusted net income attributable to common stockholders for the fourth quarter of 2021 was $14 million, or $0.17 per diluted share, as compared to an adjusted net loss of ($4) million, or ($0.05) per diluted share in the fourth quarter of 2020. Adjusted net income attributable to common stockholders for 2021 was $22 million, or $0.27 per diluted share as compared to a loss of ($20) million, or ($0.24) per diluted share in 2020.

MRC Global’s fourth quarter 2021 gross profit was $107 million, or 15.6% of sales, as compared to gross profit of $90 million, or 15.5% of sales, in the fourth quarter of 2020. Gross profit for the fourth quarter of 2021 and 2020 each reflect expense of $30 million and $1 million, respectively, in cost of sales relating to the use of the last-in, first-out (LIFO) method of inventory cost accounting. Gross profit for the fourth quarter of 2020 was also negatively impacted by $12 million of pre-tax charges related to the non-cash write-off of excess and obsolete inventory. Adjusted gross profit, which excludes these items, as well as others, was 21.6% in the fourth quarter of 2021 and 19.7% in the fourth quarter of 2020.

Results for the full year and fourth quarter 2021 demonstrate strong improvement over the prior year:

Full-year 2021 financial highlights:

• Sales of $2,666 million, an increase of 4% compared to 2020
• Adjusted EBITDA of $146 million, 5.5% of sales, a 51% improvement
• Adjusted Gross Profit, as a percentage of sales, of 20.1%
• Cash Flow from Operations of $56 million
• Leverage ratio of 1.7x
• Gas Utilities achieved over $1 billion in revenue, an increase of 21% compared to 2020, representing 38% of total revenue

Fourth quarter 2021 financial highlights:

• Sales of $686 million, an increase of 18% as compared to same quarter of 2020
• Adjusted EBITDA of $47 million, 6.9% of sales, highest percentage since third quarter of 2018
• Adjusted gross profit, as a percentage of sales, of 21.6%
• Cash Flow from operations of $40 million

The complete report from MRC Global is here.