MRC Global Reports Full Year and Fourth Quarter 2023 Results
MRC Global Inc., a leading global distributor of pipe, valves and fittings (PVF) and other infrastructure products and services to diversified gas utility, energy and industrial end-markets, has reported full year and fourth quarter 2023 results.
Highlights for the full year and fourth quarter 2023
Full Year 2023 Financial Highlights:
- Cash flow provided by operations of $181 million
- Sales of $3,412 million, an increase of 1% compared to 2022
- Adjusted EBITDA of $250 million, 7.3% of sales
- Two consecutive years of adjusted EBITDA percentages above 7%
- Adjusted Gross Profit, as a percentage of sales, of 21.5% and two consecutive years above 21%
- Leverage ratio of 0.7x, the lowest in MRC Global history
Fourth Quarter 2023 Financial Highlights:
- Sales of $768 million, a decrease of 12% compared to the same quarter of 2022
- Adjusted EBITDA of $48 million, 6.3% of sales
- Adjusted Gross Profit, as a percentage of sales, of 21.9%, the seventh consecutive quarter exceeding 21%
Rob Saltiel, MRC Global's president and CEO, commented, "Our revenue grew for a third straight year in 2023 to $3.4 billion, and we generated $181 million of operating cash flow, resulting in our lowest year-end debt level ever as a public company. We maintained strong gross and adjusted EBITDA margins across all four quarters in 2023 that reflect our continued focus on capital returns and cost control.
"In 2024, we expect revenue to be flat to modestly lower than 2023 levels. We expect a pick-up in our business activity in the second half of the year as an improving economy and lower interest rates support projects and oil and gas investments. We are targeting to generate $200 million in cash from operations, aided by further improvements in our working capital efficiency, which should strengthen our balance sheet and allow us to pay off our maturing Term Loan B without additional financing. We further expect to reduce our overall SG&A expenses in 2024 to support our bottom line and help maintain strong adjusted EBITDA margins.
"Longer term, we project that MRC Global may be in a positive net cash position in 2025. This will provide us with a lot of flexibility to pursue a capital allocation strategy that is focused on the highest return opportunities for our shareholders, including investing in our growth drivers and distributing capital to our shareholders.”
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