MRC Global (MRC +6.4%) reported Q1 sales of $970M, a decrease of 4% Y/Y, driven by International and Canadian segments including the concluding of a project in Kazakhstan.
Sales by segments: U.S. $779M (-3% Y/Y); Canada $$68M (-13% Y/Y); and International $123M (-2% Y/Y).
Sales by sectors: Upstream $312M (+3% Y/Y); Midstream $361M (-12% Y/Y); and Downstream $297M (-0.3% Y/Y).
Q1 Goss margin expanded 121 bps to 17.9%; and operating margin expanded 54 bps to 3.6%.
Adj. gross margin improved by 50 bps to 19.6%.
Adj. EBITDA was $56M (-5.1% Y/Y); and margin was flat at 5.8%.
Net cash used in operations in the quarter was $40M, compared to $74M a year ago.
During the quarter company purchased $25M of its common stock at an average price of $14.24 per share.
Company expects sales in Q2 to improve over Q1 by 6% to 9% and expects growth in the second half of the year as compared to the first half of the year.
FY19 Guidance: Revenue $4.07B to $4.27B; EPS $0.70 to $1; and Adj. EBITDA of $260M to $290M.
Previously: MRC Global Inc. beats by $0.07, beats on revenue (May 2)
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