MRC Global Inc. (MRC) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $6 million in the quarter, against a net loss of $8 million in the last year period. Revenue during the quarter grew 10.09 percent to $862 million from $783 million in the previous year period. Gross margin for the quarter contracted 74 basis points over the previous year period to 16.24 percent. Operating margin for the quarter period stood at positive 1.62 percent as compared to a negative 0.51 percent for the previous year period.
Operating income for the quarter was $14 million, compared with an operating loss of $4 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $36 million compared with $19 million in the prior year period. At the same time, adjusted EBITDA margin improved 175 basis points in the quarter to 4.18 percent from 2.43 percent in the last year period.
Andrew R. Lane, MRC Global's president and chief executive officer stated, "We are confident the recovery in the oil and gas market is underway with first quarter 2017 revenue higher than any quarter in 2016. This quarter, we saw a 20% sequential increase in sales."
Operating cash flow drops significantlyMRC Global Inc. has generated cash of $22 million from operating activities during the quarter, down 62.07 percent or $ 36 million, when compared with the last year period. The company has spent $11 million cash to meet investing activities during the quarter as against cash inflow of $38 million in the last year period.
The company has spent $29 million cash to carry out financing activities during the quarter as against cash outgo of $46 million in the last year period.
Cash and cash equivalents stood at $93 million as on Mar. 31, 2017, down 23.14 percent or $28 million from $121 million on Mar. 31, 2016.
Working capital drops significantly
MRC Global Inc. has witnessed a decline in the working capital over the last year. It stood at $674 million as at Mar. 31, 2017, down 27.45 percent or $255 million from $929 million on Mar. 31, 2016. Current ratio was at 2.32 as on Mar. 31, 2017, down from 3.23 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 43 days for the quarter from 119 days for the last year period. Days sales outstanding went down to 53 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 35 days for the quarter compared with 105 days for the previous year period. At the same time, days payable outstanding was almost stable at 45 days for the quarter, when compared with the previous year period.
Debt comes down
MRC Global Inc. has recorded a decline in total debt over the last one year. It stood at $412 million as on Mar. 31, 2017, down 20.46 percent or $106 million from $518 million on Mar. 31, 2016. Total debt was 18.48 percent of total assets as on Mar. 31, 2017, compared with 21.28 percent on Mar. 31, 2016. Debt to equity ratio was at 0.55 as on Mar. 31, 2017, up from 0.41 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
