Net loss attributable to common stockholders for the fourth quarter of 2021 was ($10) million, or (
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
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
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Gross Profit, Net Debt and Leverage Ratio are all non-GAAP measures. Please refer to the reconciliation of each of these measures to the nearest GAAP measure in this release.
"In 2022, we expect all four of our
Selling, general and administrative (SG&A) expenses were $106 million, or 15.5% of sales, for the fourth quarter of 2021 compared to $97 million, or 16.8% of sales, for the same period of 2020. Adjusted SG&A expense for the fourth quarter of 2021 was
For the three months ended
Adjusted EBITDA was $47 million in the fourth quarter of 2021 compared to $22 million for the same period in 2020. Please refer to the reconciliation of non-GAAP measures (adjusted EBITDA) to GAAP measures (net income) in this release.
Sales
The company’s sales were $686 million for the fourth quarter of 2021, which was
Sales by Segment
Canadian sales in the fourth quarter of 2021 were $40 million, up $17 million, or 74%, from the same quarter in 2020 driven by the upstream sector followed by gas utilities. Upstream improved on increased activity levels as customers resumed work previously delayed, along with a general increase in activity due to higher commodity prices. Gas utilities sales increased due to a project previously delayed that materialized during the quarter.
International sales in the fourth quarter of 2021 were $80 million, down $28 million, or 26%, from the same period in 2020 driven primarily by activity constraints related to pandemic restrictions.
Sales by Sector
Gas utilities sales in the fourth quarter of 2021 were $258 million, or 38% of total sales, up $41 million, or 19%, from the fourth quarter of 2020 due primarily to the
Downstream, industrial and energy transition sales in the fourth quarter of 2021 were $201 million, or 29% of total sales, up $27 million, or 16%, from the fourth quarter of 2020 due primarily to the
Upstream production sales in the fourth quarter of 2021 were $140 million, or 20% of total sales, up $14 million, or 11%, from the fourth quarter of 2020. The increase in upstream sales was due primarily to the
Midstream pipeline sales in the fourth quarter of 2021 were $87 million, or 13% of total sales, up $25 million, or 40%, from the fourth quarter of 2020 due primarily to the
Balance Sheet and Cash Flow
Cash provided by operations was $40 million in the fourth quarter of 2021 resulting in $56 million of cash provided by operations in 2021. Free cash flow (cash provided by operations less capital expenditures less preferred stock dividends) was $22 million in 2021. As of December 31, 2021, the cash balance was $48 million, long-term debt (including current portion) was $297 million and net debt was $249 million. Availability under the company’s asset-based lending facility was $484 million and liquidity was $532 million as of
Conference Call
The company will hold a conference call to discuss its fourth quarter and full year 2021 results at
About
Headquartered in
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words such as “will,” “expect,” “expected,” “intend,” “believes,” "on-track," “well positioned,” “look forward,” “guidance,” “plans,” “can,” "target," "targeted" and similar expressions are intended to identify forward-looking statements.
Statements about the company’s business, including its strategy, its industry, the company’s future profitability, the company’s guidance on its sales, adjusted EBITDA, tax rate, capital expenditures, achieving cost savings and cash flow, debt reduction, liquidity, growth in the company’s various markets and the company’s expectations, beliefs, plans, strategies, objectives, prospects and assumptions are not guarantees of future performance. These statements are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, most of which are difficult to predict and many of which are beyond MRC Global’s control, including the factors described in the company’s
These risks and uncertainties include (among others) decreases in capital and other expenditure levels in the industries that the company serves;
For a discussion of key risk factors, please see the risk factors disclosed in the company’s
Undue reliance should not be placed on the company’s forward-looking statements. Although forward-looking statements reflect the company’s good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the company’s actual results, performance or achievements or future events to differ materially from anticipated future results, performance or achievements or future events expressed or implied by such forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except to the extent required by law.
Contact:
Investor Relations
Monica.Broughton@mrcglobal.com
832-308-2847
Condensed Consolidated Balance Sheets (Unaudited) (in millions) | ||||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 48 | $ | 119 | ||||
Accounts receivable, net | 379 | 319 | ||||||
Inventories, net | 453 | 509 | ||||||
Other current assets | 19 | 19 | ||||||
Total current assets | 899 | 966 | ||||||
Long-term assets: | ||||||||
Operating lease assets | 191 | 200 | ||||||
Property, plant and equipment, net | 91 | 103 | ||||||
Other assets | 22 | 19 | ||||||
Intangible assets: | ||||||||
264 | 264 | |||||||
Other intangible assets, net | 204 | 229 | ||||||
$ | 1,671 | $ | 1,781 | |||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Trade accounts payable | $ | 321 | $ | 264 | ||||
Accrued expenses and other current liabilities | 80 | 94 | ||||||
Operating lease liabilities | 33 | 37 | ||||||
Current portion of long-term debt | 2 | 4 | ||||||
Total current liabilities | 436 | 399 | ||||||
Long-term liabilities: | ||||||||
Long-term debt, net | 295 | 379 | ||||||
Operating lease liabilities | 177 | 187 | ||||||
Deferred income taxes | 53 | 70 | ||||||
Other liabilities | 32 | 41 | ||||||
Commitments and contingencies | ||||||||
6.5% Series A Convertible Perpetual Preferred Stock, | 355 | 355 | ||||||
Stockholders' equity: | ||||||||
Common stock, | 1 | 1 | ||||||
Additional paid-in capital | 1,747 | 1,739 | ||||||
Retained deficit | (819 | ) | (781 | ) | ||||
(375 | ) | (375 | ) | |||||
Accumulated other comprehensive loss | (231 | ) | (234 | ) | ||||
323 | 350 | |||||||
$ | 1,671 | $ | 1,781 | |||||
Condensed Consolidated Statements of Operations (Unaudited) (in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Sales | $ | 686 | $ | 579 | $ | 2,666 | $ | 2,560 | ||||||||
Cost of sales | 579 | 489 | 2,249 | 2,129 | ||||||||||||
Gross profit | 107 | 90 | 417 | 431 | ||||||||||||
Selling, general and administrative expenses | 106 | 97 | 410 | 449 | ||||||||||||
- | - | - | 242 | |||||||||||||
Operating income (loss) | 1 | (7 | ) | 7 | (260 | ) | ||||||||||
Other (expense) income: | ||||||||||||||||
Interest expense | (5 | ) | (6 | ) | (23 | ) | (28 | ) | ||||||||
Write off of debt issuance costs | - | - | - | - | ||||||||||||
Other, net | 1 | 6 | 2 | 5 | ||||||||||||
Loss before income taxes | (3 | ) | (7 | ) | (14 | ) | (283 | ) | ||||||||
Income tax expense (benefit) | 1 | (2 | ) | - | (9 | ) | ||||||||||
Net loss | (4 | ) | (5 | ) | (14 | ) | (274 | ) | ||||||||
Series A preferred stock dividends | 6 | 6 | 24 | 24 | ||||||||||||
Net loss attributable to common stockholders | $ | (10 | ) | $ | (11 | ) | $ | (38 | ) | $ | (298 | ) | ||||
Basic loss per common share | $ | (0.12 | ) | $ | (0.13 | ) | $ | (0.46 | ) | $ | (3.63 | ) | ||||
Diluted loss per common share | $ | (0.12 | ) | $ | (0.13 | ) | $ | (0.46 | ) | $ | (3.63 | ) | ||||
Weighted-average common shares, basic | 82.5 | 82.1 | 82.5 | 82.0 | ||||||||||||
Weighted-average common shares, diluted | 82.5 | 82.1 | 82.5 | 82.0 | ||||||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) (in millions) | ||||||||
Year Ended | ||||||||
2021 | 2020 | |||||||
Operating activities | ||||||||
Net loss | $ | (14 | ) | $ | (274 | ) | ||
Adjustments to reconcile net income to net cash provided by operations: | ||||||||
Depreciation and amortization | 19 | 20 | ||||||
Amortization of intangibles | 24 | 26 | ||||||
Equity-based compensation expense | 12 | 12 | ||||||
Deferred income tax benefit | (15 | ) | (21 | ) | ||||
Amortization of debt issuance costs | 2 | 1 | ||||||
Decrease (increase) in LIFO reserve | 77 | (19 | ) | |||||
- | 242 | |||||||
Lease impairment and abandonment | - | 14 | ||||||
Inventory-related charges | - | 46 | ||||||
Provision for credit losses | (1 | ) | 2 | |||||
Gain on sale leaseback | - | (5 | ) | |||||
Other non-cash items | - | (3 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (61 | ) | 141 | |||||
Inventories | (27 | ) | 173 | |||||
Other current assets | (2 | ) | 7 | |||||
Accounts payable | 60 | (98 | ) | |||||
Accrued expenses and other current liabilities | (18 | ) | (3 | ) | ||||
Net cash provided by operations | 56 | 261 | ||||||
Investing activities | ||||||||
Purchases of property, plant and equipment | (10 | ) | (11 | ) | ||||
Proceeds from the disposition of property, plant and equipment | 3 | 30 | ||||||
Net cash (used in) provided by investing activities | (7 | ) | 19 | |||||
Financing activities | ||||||||
Payments on revolving credit facilities | (389 | ) | (819 | ) | ||||
Proceeds from revolving credit facilities | 389 | 658 | ||||||
Payments on long-term obligations | (87 | ) | (6 | ) | ||||
Debt issuance costs paid | (3 | ) | - | |||||
Dividends paid on preferred stock | (24 | ) | (24 | ) | ||||
Repurchases of shares to satisfy tax withholdings | (4 | ) | (4 | ) | ||||
Net cash used in financing activities | (118 | ) | (195 | ) | ||||
(Decrease) increase in cash | (69 | ) | 85 | |||||
Effect of foreign exchange rate on cash | (2 | ) | 2 | |||||
Cash beginning of year | 119 | 32 | ||||||
Cash end of year | $ | 48 | $ | 119 | ||||
Supplemental Sales Information (Unaudited)
(in millions)
Disaggregated Sales by Segment
Three Months Ended |
International | Total | |||||||||||||||
2021 | ||||||||||||||||
Gas utilities | $ | 250 | $ | 8 | $ | - | $ | 258 | ||||||||
Downstream, industrial & energy transition | 143 | 5 | 53 | 201 | ||||||||||||
Upstream production | 90 | 26 | 24 | 140 | ||||||||||||
Midstream pipeline | 83 | 1 | 3 | 87 | ||||||||||||
$ | 566 | $ | 40 | $ | 80 | $ | 686 | |||||||||
2020 | ||||||||||||||||
Gas utilities | $ | 216 | $ | 1 | $ | - | $ | 217 | ||||||||
Downstream, industrial & energy transition | 119 | 3 | 52 | 174 | ||||||||||||
Upstream production | 63 | 17 | 46 | 126 | ||||||||||||
Midstream pipeline | 50 | 2 | 10 | 62 | ||||||||||||
$ | 448 | $ | 23 | $ | 108 | $ | 579 |
Year Ended |
International | Total | |||||||||||||||
2021 | ||||||||||||||||
Gas utilities | $ | 995 | $ | 13 | $ | - | $ | 1,008 | ||||||||
Downstream, industrial & energy transition | 560 | 20 | 203 | 783 | ||||||||||||
Upstream production | 321 | 88 | 133 | 542 | ||||||||||||
Midstream pipeline | 302 | 11 | 20 | 333 | ||||||||||||
$ | 2,178 | $ | 132 | $ | 356 | $ | 2,666 | |||||||||
2020 | ||||||||||||||||
Gas utilities | $ | 821 | $ | 11 | $ | - | $ | 832 | ||||||||
Downstream, industrial & energy transition | 566 | 15 | 205 | 786 | ||||||||||||
Upstream production | 329 | 89 | 182 | 600 | ||||||||||||
Midstream pipeline | 307 | 13 | 22 | 342 | ||||||||||||
$ | 2,023 | $ | 128 | $ | 409 | $ | 2,560 | |||||||||
Supplemental Sales Information (Unaudited)
(in millions)
Sales by Product Line
Three Months Ended | Year Ended | |||||||||||||||
Type | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Line pipe | $ | 113 | $ | 65 | $ | 381 | $ | 308 | ||||||||
Carbon fittings and flanges | 89 | 76 | 358 | 340 | ||||||||||||
Total carbon pipe, fittings and flanges | 202 | 141 | 739 | 648 | ||||||||||||
Valves, automation, measurement and instrumentation | 233 | 216 | 947 | 1,018 | ||||||||||||
Gas products | 164 | 138 | 629 | 517 | ||||||||||||
Stainless steel and alloy pipe and fittings | 31 | 32 | 131 | 128 | ||||||||||||
General products | 56 | 52 | 220 | 249 | ||||||||||||
$ | 686 | $ | 579 | $ | 2,666 | $ | 2,560 | |||||||||
Supplemental Information (Unaudited)
Reconciliation of Gross Profit to Adjusted Gross Profit (a non-GAAP measure)
(in millions)
Three Months Ended | ||||||||||||||||
Percentage | Percentage | |||||||||||||||
2021 | of Revenue | 2020 | of Revenue | |||||||||||||
Gross profit, as reported | $ | 107 | 15.6 | % | $ | 90 | 15.5 | % | ||||||||
Depreciation and amortization | 5 | 0.7 | % | 5 | 0.9 | % | ||||||||||
Amortization of intangibles | 6 | 0.9 | % | 6 | 1.0 | % | ||||||||||
Increase in LIFO reserve | 30 | 4.4 | % | 1 | 0.2 | % | ||||||||||
Inventory-related charges (1) | - | 0.0 | % | 12 | 2.1 | % | ||||||||||
Adjusted Gross Profit | $ | 148 | 21.6 | % | $ | 114 | 19.7 | % |
Year Ended | ||||||||||||||||
Percentage | Percentage | |||||||||||||||
2021 | of Revenue | 2020 | of Revenue | |||||||||||||
Gross profit, as reported | $ | 417 | 15.6 | % | $ | 431 | 16.8 | % | ||||||||
Depreciation and amortization | 19 | 0.7 | % | 20 | 0.8 | % | ||||||||||
Amortization of intangibles | 24 | 0.9 | % | 26 | 1.0 | % | ||||||||||
Increase (decrease) in LIFO reserve | 77 | 2.9 | % | (19 | ) | (0.7 | )% | |||||||||
Inventory-related charges (1) | - | 0.0 | % | 46 | 1.8 | % | ||||||||||
Adjusted Gross Profit | $ | 537 | 20.1 | % | $ | 504 | 19.7 | % |
Notes to above:
* | Does not foot due to rounding | |
(1) | In the fourth quarter of 2020, |
The company defines adjusted gross profit as sales, less cost of sales, plus depreciation and amortization, plus amortization of intangibles, plus inventory-related charges and plus or minus the impact of its LIFO inventory costing methodology. The company presents adjusted gross profit because the company believes it is a useful indicator of the company’s operating performance without regard to items, such as amortization of intangibles, that can vary substantially from company to company depending upon the nature and extent of acquisitions of which they have been involved. Similarly, the impact of the LIFO inventory costing method can cause results to vary substantially from company to company depending upon whether they elect to utilize LIFO and depending upon which method they may elect. The company uses adjusted gross profit as a key performance indicator in managing its business. The company believes that gross profit is the financial measure calculated and presented in accordance with
Supplemental Information (Unaudited) Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses (a non-GAAP measure) (in millions) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Selling, general and administrative expenses | $ | 106 | $ | 97 | $ | 410 | $ | 449 | ||||||||
Severance and restructuring (1) | (1 | ) | (2 | ) | (1 | ) | (14 | ) | ||||||||
Facility closures (2) | - | 1 | (1 | ) | (14 | ) | ||||||||||
Recovery of supplier bad debt (3) | - | - | - | 2 | ||||||||||||
Employee Separation (4) | - | - | (2 | ) | - | |||||||||||
Adjusted Selling, general and administrative expenses | $ | 105 | $ | 96 | $ | 406 | $ | 423 |
Notes to above:
(1) | Employee severance and restructuring charges (pre-tax) associated with the company’s cost reduction initiatives were recorded in 2021 and 2020. Charges of | |
(2) | In 2021, charges (pre-tax) of | |
(3) | Charges (pre-tax) in 2020 relate to the collection of a product claim from a foreign supplier. | |
(4) | Charges (pre-tax) related to employee separation, of which |
The company defines adjusted selling, general and administrative (SG&A) expenses as SG&A, less severance and restructuring expenses, facility closures plus the recovery of supplier bad debt. The company presents adjusted SG&A because the company believes it is a useful indicator of the company’s operating performance without regard to items that can vary substantially from company to company. The company presents adjusted SG&A because the company believes Adjusted SG&A is a useful indicator of the company’s operating performance. Among other things, adjusted SG&A measures the company’s operating performance without regard to certain non-recurring, non-cash or transaction-related expenses. The company uses adjusted SG&A as a key performance indicator in managing its business. The company believes that SG&A is the financial measure calculated and presented in accordance with
Supplemental Information (Unaudited) Reconciliation of Net Loss to Adjusted EBITDA (a non-GAAP measure) (in millions) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net loss | $ | (4 | ) | $ | (5 | ) | $ | (14 | ) | $ | (274 | ) | ||||
Income tax expense (benefit) | 1 | (2 | ) | - | (9 | ) | ||||||||||
Interest expense | 5 | 6 | 23 | 28 | ||||||||||||
Depreciation and amortization | 5 | 5 | 19 | 20 | ||||||||||||
Amortization of intangibles | 6 | 6 | 24 | 26 | ||||||||||||
- | - | - | 242 | |||||||||||||
Inventory-related charges (2) | - | 12 | - | 46 | ||||||||||||
Facility closures (3) | 1 | (1 | ) | 1 | 17 | |||||||||||
Severance and restructuring (4) | 1 | 2 | 1 | 14 | ||||||||||||
Employee Separation (5) | - | - | 1 | |||||||||||||
Increase (decrease) in LIFO reserve | 30 | 1 | 77 | (19 | ) | |||||||||||
Equity-based compensation expense (6) | 2 | 4 | 12 | 12 | ||||||||||||
Gain on early extinguishment of debt (7) | - | - | - | (1 | ) | |||||||||||
Recovery of supplier bad debt (8) | - | - | - | (2 | ) | |||||||||||
Gain on sale leaseback (9) | - | (5 | ) | - | (5 | ) | ||||||||||
Foreign currency (gains) losses | - | (1 | ) | 2 | 2 | |||||||||||
Adjusted EBITDA | $ | 47 | $ | 22 | $ | 146 | $ | 97 |
Notes to above:
(1) | Non-cash charges (pre-tax) recorded in 2020 for the impairment of | |
(2) | Non-cash charges (pre-tax) of | |
(3) | In the fourth quarter of 2021, charges (pre-tax) of In the fourth quarter of 2020, $1 million of sub-lease income was recorded for an Australian property in the International segment. In 2020, a net charge for lease impairments and abandonments related to facility closures, substantially non-cash, of $14 million was recorded with $10 million in the International segment, $3 million in the | |
(4) | Employee severance and restructuring charges (pre-tax) associated with the company’s cost reduction initiatives were recorded in 2021 and 2020. Charges of | |
(5) | Charges (pre-tax) recorded in SG&A. | |
(6) | Recorded in SG&A | |
(7) | Charge (pre-tax) related to the purchase of the senior secured Term Loan recorded in Other, net in 2020. | |
(8) | Charges (pre-tax) in 2020 relate to the collection of a product claim from a foreign supplier. | |
(9) | Income (pre-tax) recorded in Other, net with | |
The company defines adjusted EBITDA as net income plus interest, income taxes, depreciation and amortization, amortization of intangibles, and certain other expenses, including non-cash expenses, (such as equity-based compensation, severance and restructuring, changes in the fair value of derivative instruments and asset impairments, including inventory) and plus or minus the impact of its LIFO inventory costing methodology. The company presents adjusted EBITDA because the company believes adjusted EBITDA is a useful indicator of the company’s operating performance. Among other things, adjusted EBITDA measures the company’s operating performance without regard to certain non-recurring, non-cash or transaction-related expenses. adjusted EBITDA, however, does not represent and should not be considered as an alternative to net income, cash flow from operations or any other measure of financial performance calculated and presented in accordance with GAAP. Because adjusted EBITDA does not account for certain expenses, its utility as a measure of the company’s operating performance has material limitations. Because of these limitations, the company does not view adjusted EBITDA in isolation or as a primary performance measure and also uses other measures, such as net income and sales, to measure operating performance. See the company's Annual Report filed on Form 10-K for a more thorough discussion of the use of adjusted EBITDA. Reconciling the Company's adjusted EBITDA 2022 target is not reasonably possible as the impact from inflation or deflation on indices used to calculate LIFO is not possible to reasonably predict.
Supplemental Information (Unaudited)
Reconciliation of Net Loss Attributable to Common Stockholders to
Adjusted Net Income (Loss) Attributable to Common Stockholders (a non-GAAP measure)
(in millions, except per share amounts)
Three Months Ended | Year Ended | |||||||||||||||
Amount | Per Share | Amount | Per Share | |||||||||||||
Net loss attributable to common stockholders | $ | (10 | ) | $ | (0.12 | ) | $ | (38 | ) | $ | (0.46 | ) | ||||
Facility closures, net of tax (1) | 1 | 0.01 | 1 | 0.01 | ||||||||||||
Severance and restructuring, net of tax (2) | 1 | 0.01 | 1 | 0.01 | ||||||||||||
Increase in LIFO reserve, net of tax | 22 | 0.27 | 58 | 0.71 | ||||||||||||
Adjusted net income attributable to common stockholders | $ | 14 | $ | 0.17 | $ | 22 | $ | 0.27 |
Three Months Ended | Year Ended | |||||||||||||||
Amount | Per Share | Amount | Per Share | |||||||||||||
Net loss attributable to common stockholders | $ | (11 | ) | $ | (0.13 | ) | $ | (298 | ) | $ | (3.63 | ) | ||||
- | - | 234 | 2.85 | |||||||||||||
Inventory-related charges, net of tax (4) | 9 | 0.11 | 38 | 0.46 | ||||||||||||
Facility closures, net of tax (1) | (1 | ) | (0.01 | ) | 15 | 0.18 | ||||||||||
Severance and restructuring, net of tax (2) | 2 | 0.02 | 12 | 0.15 | ||||||||||||
Recovery of supplier bad debt, net of tax (5) | - | - | (2 | ) | (0.02 | ) | ||||||||||
Gain on sale leaseback (6) | (4 | ) | (0.05 | ) | (4 | ) | (0.05 | ) | ||||||||
Increase (decrease) in LIFO reserve, net of tax | 1 | 0.01 | (15 | ) | (0.18 | ) | ||||||||||
Adjusted net loss attributable to common stockholders | $ | (4 | ) | $ | (0.05 | ) | $ | (20 | ) | $ | (0.24 | ) |
Notes to above:
(1) | In the fourth quarter of 2021, charges (after-tax) of In the fourth quarter of 2020, $1 million of sub-lease income was recorded for an Australian property in the International segment. In 2020, a net charge (after-tax) for lease impairments and abandonments related to facility closures, substantially non-cash, of $13 million was recorded with $10 million in the International segment, $2 million in the | |
(2) | Employee severance and restructuring charges (after-tax) associated with the company’s cost reduction initiatives were recorded in 2021 and 2020. Charges of | |
(3) | Non-cash charges (after-tax) recorded in the second quarter of 2020 for the impairment of | |
(4) | In the fourth quarter of 2020, $9 million of non-cash charges (after-tax) recorded for excess and obsolete inventory recorded in cost of goods sold; $7 million in the U.S., $1 million in | |
(5) | Charges (after-tax) in 2020 relate to the collection of a product claim from a foreign supplier. | |
(6) | Income (after-tax) recorded in Other, net with | |
The company defines adjusted net income attributable to common stockholders (a non-GAAP measure) as net income attributable to common stockholders less after-tax goodwill and intangible impairment, inventory-related charges, facility closures, severance and restructuring, plus or minus the after-tax impact of its LIFO inventory costing methodology. The company presents adjusted net income attributable to common stockholders and related per share amounts because the company believes it provides useful comparisons of the company’s operating results to other companies, including those companies with whom we compete in the distribution of pipe, valves and fittings to the energy industry, without regard to the irregular variations from certain restructuring events not indicative of the on-going business. Those items include goodwill and intangible asset impairments, inventory-related charges, facility closures, severance and restructuring as well as the LIFO inventory costing methodology. The impact of the LIFO inventory costing methodology can cause results to vary substantially from company to company depending upon whether they elect to utilize LIFO and depending upon which method they may elect. The company believes that net income attributable to common stockholders is the financial measure calculated and presented in accordance with
Supplemental Information (Unaudited) Reconciliation of Long-term Debt to Net Debt (a non-GAAP measure) and the Leverage Ratio Calculation (in millions) | |||
2021 | |||
Long-term debt, net | $ | 295 | |
Plus: current portion of long-term debt | 2 | ||
Long-term debt | 297 | ||
Less: cash | 48 | ||
Net Debt | $ | 249 | |
Net Debt | $ | 249 | |
Trailing twelve months adjusted EBITDA | 146 | ||
Leverage ratio | 1.7 |
Notes to above:
Net Debt and related leverage metrics may be considered non-GAAP measures. The company defines Net Debt as total long-term debt, including current portion, minus cash. The company defines leverage ratio as Net Debt divided by trailing twelve months Adjusted EBITDA. The company believes Net Debt is an indicator of the extent to which the company’s outstanding debt obligations could be satisfied by cash on hand and a useful metric for investors to evaluate the company’s leverage position. The company believes the leverage ratio is a commonly used metric that management and investors use to assess the borrowing capacity of the company. The company believes total long-term debt (including the current portion) is the financial measure calculated and presented in accordance with
Source:
2022 GlobeNewswire, Inc., source