MRC (MRC) - 2024 Q4 - Annual Results

Financial Performance - Full year 2024 sales reached $3,011 million, with operating cash flow from continuing operations of $268 million, the highest since 2015[7] - Fourth quarter 2024 sales were $664 million, a decrease of 10% compared to the fourth quarter of 2023, driven by declines in the Downstream, Industrial and Energy Transition (DIET) and Production & Transmission Infrastructure (PTI) sectors[13] - Net income from continuing operations for full year 2024 was $78 million, or $0.57 per diluted share, compared to $115 million, or $1.06 per diluted share in 2023[8] - Adjusted EBITDA for the fourth quarter of 2024 was $32 million, representing 4.8% of sales, down from $49 million in the same period of 2023[12] - The company expects revenue growth in 2025 to be in the low to high-single digits and anticipates generating at least $100 million in cash from operations[4] - Net loss attributable to common stockholders for Q4 2024 was $34 million, compared to a net income of $15 million in Q4 2023[34] - The company reported a basic loss per common share of $0.40 for Q4 2024, compared to earnings of $0.18 per share in Q4 2023[34] - Adjusted net income from continuing operations for Q4 2024 was $4 million, down from $27 million in Q4 2023[57] - The adjusted net income attributable to common stockholders for the year ended December 31, 2024, was $57 million, or $0.66 per share, compared to $98 million, or $1.15 per share for the year ended December 31, 2023[62] Sales and Revenue Breakdown - The Gas Utilities sector sales in the fourth quarter of 2024 were $253 million, unchanged from the same quarter in 2023, accounting for 38% of total sales[18] - The DIET sector sales decreased by $46 million, or 18%, in the fourth quarter of 2024 compared to the same period in 2023[19] - Sales from the Gas Utilities segment for the year ended December 31, 2024, were $1,098 million, down from $1,193 million in 2023[40] - Total sales for Q4 2024 were $664 million, a decrease of 10.3% from $740 million in Q4 2023[34] Profitability Metrics - The company achieved an average annual Adjusted Gross Profit margin exceeding 21% for the third consecutive year, with an Adjusted Gross Profit margin of 21.9% for the full year 2024[4] - Gross profit for Q4 2024 was $135 million, down 9.4% from $149 million in Q4 2023[34] - Reported gross profit for Q4 2024 was $135 million, representing 20.3% of revenue, compared to $149 million and 20.1% in Q4 2023[44] - Adjusted gross profit for Q4 2024 was $146 million, or 22.0% of revenue, down from $164 million and 22.2% in Q4 2023[44] - For the year ended December 31, 2024, reported gross profit was $620 million, 20.6% of revenue, compared to $670 million and 20.5% in 2023[44] - Adjusted EBITDA for Q4 2024 was $32 million, down from $49 million in Q4 2023, while for the year it was $202 million compared to $251 million in 2023[52] Debt and Cash Position - Net Debt as of December 31, 2024, was $324 million, with a net debt leverage ratio of 1.6x[7] - Long-term debt increased to $384 million in 2024, compared to $9 million in 2023[32] - Cash at the end of 2024 was $63 million, a decrease from $131 million at the end of 2023[36] - The total long-term debt as of December 31, 2024, was $384 million, with a net debt of $324 million after accounting for $63 million in cash[66] Operational Costs - Selling, general and administrative expenses for Q4 2024 were $123 million, slightly up from $121 million in Q4 2023[47] - Adjusted selling, general and administrative expenses for Q4 2024 were $119 million, compared to $120 million in Q4 2023[47] - The company incurred $1 million in transaction costs in Q4 2024, compared to no transaction costs in Q4 2023[52] - The company reported a decrease in LIFO reserve of $2 million for the year ended December 31, 2024, compared to an increase of $2 million in 2023[44] Future Outlook and Strategic Initiatives - MRC Global announced a new joint venture, IMTEC, aimed at developing smart meters for gas utilities customers[4] - The company plans to continue focusing on restructuring efforts and managing costs to improve future financial performance[64]