MRC (US:MRC) GlobeNewswire News Room·2024-08-06 20:15Core Insights - MRC Global Inc. reported a net income of $24 million for Q2 2024, an increase from $18 million in Q2 2023, with diluted earnings per share rising to $0.28 from $0.21 [2][4] - The company's sales for Q2 2024 were $832 million, a 4% decrease from Q2 2023 but a 3% increase from Q1 2024 [9][10] - Adjusted gross profit reached a record 22.1% of sales in Q2 2024, compared to 21.5% in Q2 2023 [3][4] Financial Performance - Gross profit for Q2 2024 was $173 million, representing 20.8% of sales, slightly down from $175 million or 20.1% in Q2 2023 [3][4] - Adjusted EBITDA for Q2 2024 was $65 million, or 7.8% of sales, compared to $63 million, or 7.2% of sales in Q2 2023 [6][4] - Cash flow from operations was $63 million for Q2 2024, contributing to a total of $101 million in the first half of 2024 [4][5] Sales Breakdown - U.S. sales in Q2 2024 were $677 million, down 7% from Q2 2023, with the Gas Utilities sector declining by 11% [10][15] - International sales increased by 15% year-over-year to $122 million, driven by the PTI sector in Norway and DIET sector projects in Europe [13][14] - The DIET sector sales were $268 million, a 9% increase from Q2 2023, while PTI sector sales decreased by 9% to $277 million [16][17] Cost Management - Selling, general and administrative (SG&A) expenses were $126 million, or 15.1% of sales, down from $130 million, or 14.9% of sales in Q2 2023 [6][4] - The company repaid its Term Loan B, reducing net debt to an all-time low of $103 million [5][4] - The net debt leverage ratio was 0.4 times, the lowest in the company's history [4] Backlog and Future Outlook - As of June 30, 2024, the company's backlog was $636 million, a 10% decline from the previous quarter due to project activity delays [18] - The company expects to generate significant cash flow over the next few years, enhancing its balance sheet and capital allocation flexibility [5][4]