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MRC Global Announces Second Quarter 2025 Results

HOUSTON, Aug. 06, 2025 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE: MRC)听today announced second听quarter 2025听results from continuing operations.

Second Quarter 2025听Financial Highlights:

• Sales of $798听尘颈濒濒颈辞苍, a 12%听increase听compared to the听first quarter of 2025
• Gross profit, as a percentage of sales, of听18.9%听听
• Adjusted Gross Profit, as a percentage of sales, of听21.6%
• Net听income from continuing operations of听$13听尘颈濒濒颈辞苍听听
• Adjusted EBITDA of $54听尘颈濒濒颈辞苍, or听6.8%听of sales听听
• 搁别迟耻谤苍别诲听$15 million to shareholders through share repurchases

Rob Saltiel, MRC Global鈥檚 President and CEO, stated, 鈥淲e delivered a strong second quarter, with revenue rising 12% from the first quarter of 2025,听at the top of our previous guidance听range. All sectors contributed to the sequential revenue increase, led by PTI with 26% sales growth due to robust project activity across both the U.S. and international markets. Our Gas Utilities business continued its rebound with 10% sequential revenue听growth, fueled by increased construction听projects. Adjusted EBITDA surged 50% sequentially, with听margins听expanding听170 basis points, reflecting strong operating leverage. We also returned听$15 million to shareholders through strategic share repurchases at an average price of听$12.35听per share.

鈥淥ur recently announced听merger agreement with DNOW Inc. marks a transformative step forward for MRC Global. This combination will create听a premier energy and industrial solutions provider with expanded capabilities and scale. Our customers will benefit from a broader portfolio of innovative offerings, our team members will enjoy greater career opportunities, and our听investors will gain exposure to a larger, more diverse, and more efficient enterprise.

"We expect sequential revenue and adjusted EBITDA growth in the third quarter, driven by our DIET and Gas Utilities sectors. We are also reaffirming our full-year guidance provided last quarter but will not be providing future financial guidance due to the pending merger with DNOW,"听Mr. Saltiel added.

Net听income from continuing operations for the second听quarter of听2025听was听$13听尘颈濒濒颈辞苍, as compared听to net听income from continuing operations听of听$30听尘颈濒濒颈辞苍 in the second听quarter of听2024.听Adjusted net income from continuing operations听for the听second听quarter of听2025听补苍诲 the second听quarter of听2024听was听$22听尘颈濒濒颈辞苍听补苍诲 $33听尘颈濒濒颈辞苍, respectively.

Net听income听attributable to common stockholders for the听second听quarter of听2025听was听$13听尘颈濒濒颈辞苍, or听$0.15听per diluted share,听as compared to net听income attributable to common stockholders of听$24听尘颈濒濒颈辞苍, or听$0.28听per diluted share, for听the听second听quarter of听2024. Adjusted net income attributable to common stockholders for the听second听quarter of听2025听was听$22听尘颈濒濒颈辞苍, or听$0.25听per diluted share, as compared to the听second听quarter of听2024听adjusted net income attributable to common stockholders听of听$27听尘颈濒濒颈辞苍, or听$0.31听per diluted share.听

Adjusted Net Income (Loss) from Continuing Operations,听Adjusted Net听Income Attributable to Common Stockholders,听Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Gross Profit, Adjusted Gross Profit margin, Net Debt, Net Debt Leverage Ratio, and Adjusted Selling, General and Administrative (SG&A) expense are all non-GAAP measures. Please refer to the reconciliation of each of these measures to the nearest GAAP measure in this release.

MRC Global鈥檚听second quarter of听2025 gross profit was $151听尘颈濒濒颈辞苍, or听18.9%听of sales, as compared to the second听quarter of 2024 gross profit of $169听尘颈濒濒颈辞苍, or 21.2%听of sales. Gross profit for each of听the second quarter听2025 and 2024 includes听$10听尘颈濒濒颈辞苍 of听expense听补苍诲 $1听尘颈濒濒颈辞苍 of听expense, respectively, in cost of sales relating to the use of the last-in, first-out (LIFO) method of inventory cost accounting. Adjusted Gross Profit, which excludes (among other items) the impact of LIFO, was $172听尘颈濒濒颈辞苍, or 21.6%听of sales, for the second quarter of 2025 and was听$180听尘颈濒濒颈辞苍, or听22.5%听of sales, for the second听quarter of 2024.听

Selling, general and administrative (SG&A) expenses were $130听尘颈濒濒颈辞苍, or 16.3%听of sales, for the second听quarter of 2025, as compared to听$122听尘颈濒濒颈辞苍, or听15.3%听of sales, for the same period in听2024. Adjusted SG&A for the听second听quarter of 2025听was听$124听尘颈濒濒颈辞苍, or 15.5%听of sales, which excluded听$6 million of听other non-recurring legal and consulting costs related to the pending DNOW鈥揗RC Global merger.听Adjusted SG&A for the second听quarter of 2024 was听$120听尘颈濒濒颈辞苍, or听15.0%听of sales, which excluded听$2听尘颈濒濒颈辞苍 for activism response and facility closure expenses.

Adjusted EBITDA was听$54听尘颈濒濒颈辞苍, or听6.8%听of sales, in the听second听quarter of听2025听as compared to听$65听尘颈濒濒颈辞苍, or听8.1%听of sales, for the same period in听2024.

An income tax听expense听of听$5听尘颈濒濒颈辞苍 was incurred in听the second听quarter of听2025, with an听effective tax rate of听28%,听as compared to an income tax听expense听of听$12听尘颈濒濒颈辞苍, with an听effective tax rate of听29%, for the second听quarter of 2024. These听rates听differ from the U.S. federal statutory rate of 21% due to state income taxes, non-deductible expenses, and varying foreign income tax rates.听

The sale of the Canada business closed on听March 14, 2025, the听results of which are reflected in discontinued operations for听all periods听presented.听

Sales

The company鈥檚 sales were $798听尘颈濒濒颈辞苍 for the second听quarter of 2025, which was similar to听the second听quarter of 2024听补苍诲听12%听higher听than the听first quarter of 2025. Compared to the same quarter a year ago, the Downstream, Industrial,听补苍诲 Energy Transition (DIET)听sector experienced a slight听decline, balanced by growth听in the Production and Transmission Infrastructure (PTI) and Gas Utilities sectors. Sequentially, the company鈥檚 sales听increase was across all sectors, with the PTI sector leading the growth, followed by the Gas Utilities听补苍诲 DIET sectors.

Sales by听Segment

U.S. sales in the second听quarter of 2025听were $658听尘颈濒濒颈辞苍, a听$19听尘颈濒濒颈辞苍, or 3%,听decrease from the same quarter in 2024.听DIET听sector听sales听decreased听$26听尘颈濒濒颈辞苍, or 14%, primarily due to the completion of non-recurring line pipe project sales.听PTI sector sales decreased by $5 million, or 2%, due to the completion of several projects and more measured upstream customer investment. Gas Utilities sector revenue听increased听$12听尘颈濒濒颈辞苍, or 4%, as customers advanced infrastructure initiatives and resumed typical buying behavior amid stronger capital budgets.

Sequentially, compared to the first quarter of 2025, U.S. sales听increased听$67听尘颈濒濒颈辞苍, or听11%. The PTI听sector led with a听$41听尘颈濒濒颈辞苍, or 26%, increase driven by听midstream pipeline projects and the scaling of a key customer contract.听The U.S. Gas Utilities sector also contributed, with sales growing听$26听尘颈濒濒颈辞苍, or听10%,听on the strength of seasonal construction activity and recent project wins. DIET听sector sales were听unchanged.听

International sales reached听$140听尘颈濒濒颈辞苍 in the second听quarter of 2025, an increase of听$18听尘颈濒濒颈辞苍, or 15%, compared to the same period in 2024.听Growth was led by the PTI sector, driven by several North Sea projects, while the DIET sector saw a decline due to reduced turnaround activity and the timing of project deliveries.

Sequentially,听International sales improved听$19听尘颈濒濒颈辞苍, or听16%, from the previous quarter,听led by growth in the PTI sector, followed by gains in the DIET sector. PTI benefited from project deliveries in the Middle East and Norway, while DIET saw increased activity from wind energy听projects in Norway and mining projects in Australia.

Sales by Sector听

Gas Utilities sector sales, which are听primarily U.S.-based,听were $299听尘颈濒濒颈辞苍听in the second听quarter of 2025, or 37%听of total sales, an听increase听of听$12听尘颈濒濒颈辞苍, or听4%, from the second听quarter of 2024.

Sequentially,听compared听to the first quarter of 2025,听the Gas Utilities sector sales听increased听$26听尘颈濒濒颈辞苍, or 10%.

DIET sector sales in the second听quarter of 2025听were听$223听尘颈濒濒颈辞苍, or 28%听of total sales, a听decrease听of $33听尘颈濒濒颈辞苍, or听13%, from the second听quarter of 2024, with听declines in the U.S. and International segments.

Sequentially,听compared to the previous quarter, DIET sector sales were up听$3听尘颈濒濒颈辞苍, or听1%, driven by听the听International听segment.

PTI sector sales in the second听quarter of 2025听were $276听尘颈濒濒颈辞苍, or听35%听of total sales, an听increase of听$20听尘颈濒濒颈辞苍, or 8%, from the second听quarter of 2024. The听increase听in PTI sector sales was driven by the International segment,听partially offset by the U.S. segment.

Sequentially, as compared to the prior quarter, PTI sector sales听increased听$57听尘颈濒濒颈辞苍, or 26%, led by growth in听the听U.S., followed by听the听International segment.

Backlog

As of听June 30, 2025, the company's backlog was听$589听尘颈濒濒颈辞苍, a听2% decrease from the previous quarter, driven by a decline in the PTI sector backlog, partially offset by increases in the DIET and Gas Utilities sectors.

Balance Sheet and Cash Flow

As of听June 30, 2025, the cash balance听was $75听尘颈濒濒颈辞苍,听long-term debt (including current portion) was听$449听尘颈濒濒颈辞苍, and Net Debt was $374听尘颈濒濒颈辞苍. Cash听used in continuing operations was听$46 million听in the second听quarter of 2025. As of June 30, 2025, availability under the company鈥檚 asset-based lending facility was听$499听尘颈濒濒颈辞苍, and听liquidity was $574听尘颈濒濒颈辞苍.

Share Repurchase Program听

In听January 2025, the board of directors authorized a share repurchase program for common stock听up to $125听尘颈濒濒颈辞苍. During the second quarter of 2025, the company purchased听$15 million听of its common stock at an average price of听$12.35听per share.听The common shares outstanding as of听June 30, 2025, were 85.0 million shares.

Due to the pending combination, the share repurchase program has been suspended.

Agreement to Combine with DNOW

On June 26, 2025, DNOW Inc. (NYSE: DNOW) and MRC Global听jointly announced a definitive merger agreement听under which DNOW will acquire MRC Global听in an all-stock transaction. The transaction was unanimously approved by both the听DNOW and MRC Global boards of directors. The transaction is subject to shareholder听approvals, regulatory approvals, and other customary closing conditions. It is currently anticipated that the听transaction closing will occur in the fourth quarter of 2025.

We are also reaffirming our full year guidance provided last quarter but given the pending combination with DNOW, we will not be providing future financial guidance and we will not host a conference call or webcast to discuss our second听quarter 2025听results.

About MRC Global Inc.

Headquartered in Houston, Texas, MRC Global (NYSE: MRC) is the leading global distributor of pipe, valves,听fittings (PVF) and听other infrastructure products and services to diversified end-markets including the gas utilities, downstream, industrial and energy transition, and production and transmission infrastructure sectors. With over 100 years of experience, MRC Global has provided customers with innovative supply chain solutions, technical product expertise and a robust digital platform from a worldwide network of approximately听200 locations, including valve and engineering centers. The company鈥檚 unmatched quality assurance program offers approximately 200,000 SKUs from over 7,100 suppliers, simplifying the supply chain for over 8,300 customers. Find out more at www.mrcglobal.com.

This news release contains forward-looking statements within the meaning of Section听27A of the Securities Act and Section听21E of the Exchange Act. Words such as 鈥�will,鈥� 鈥�expect,鈥� 鈥�expected,鈥� 鈥�anticipating,鈥�听鈥�intend,鈥� 鈥�believes,鈥� 鈥�on-track,鈥�听鈥�well positioned,鈥� 鈥�strong position,鈥� 鈥�looking forward,鈥� 鈥�guidance,鈥� 鈥�plans,鈥� 鈥�can,鈥澨�"target," "targeted" and similar expressions are intended to identify forward-looking statements, including, for example, statements about the merger (as defined below), future events,听plans and anticipated results of the operations, business strategies, the anticipated benefits of the merger, the听anticipated impact of the merger听on the combined company's business and future financial operating results, the expected amount and timing of synergies from the merger, the anticipated closing date for the merger.

Statements about the DNOW-MRC Global merger (the 鈥�merger鈥�), future events, plans and anticipated results of operations, business strategies, the anticipated benefits of the merger, the anticipated impact of the merger on the combined company鈥�s business and future financial operating results, the expected amount and timing of synergies from the merger, the anticipated closing date for the merger, the company鈥�s business, including its strategy, its industry, the company鈥�s future profitability, the company鈥�s guidance on its sales, adjusted EBITDA, adjusted EBITDA margin,听tax rate, capital听expenditures, achieving cost savings and cash flow, debt reduction, liquidity, growth in the company鈥�s various markets and the company鈥�s expectations, beliefs, plans, strategies, objectives, prospects and assumptions are not guarantees of future performance. These statements are based on management鈥�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鈥�s control, including the factors described in the company鈥�s SEC filings that may cause the company鈥�s actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements.

These risks and uncertainties include (among others)听the risk associated with each of our and DNOW's ability to obtain the approval of stockholders听required to consummate the merger听补苍诲 the timing of the closing of the merger, including the risk听that the conditions to the transaction are not satisfied on a timely basis or at all or the failure of the听transaction to close for any other reason or to close on the anticipated terms;听the effect of the announcement, pendency or completion of the merger听on our business relationships and business operations generally;听the risk that the expected benefits and synergies of the merger听may not be fully achieved in a听timely manner, or at all;听decreases听in capital and other expenditure levels in the industries that the company serves;听U.S. and international general economic conditions;听geopolitical events; decreases in oil and natural gas prices; unexpected supply shortages; loss of third-party transportation providers; cost increases by the company鈥�s suppliers and transportation providers; increases in steel prices, which the company may be unable to pass along to its customers which could significantly lower the company鈥�s profit; the company鈥�s lack of long-term contracts with most of its suppliers; suppliers鈥� price reductions of products that the company sells, which could cause the value of its inventory to decline; decreases in steel prices, which could significantly lower the company鈥�s profit; a decline in demand for certain of the products the company distributes if tariffs and duties on these products are imposed or lifted; holding more inventory than can be sold in a commercial time frame; significant substitution of renewables and low-carbon fuels for oil and gas, impacting demand for the company鈥�s products;听risks related to adverse weather events or natural disasters; environmental, health and safety laws and regulations and the interpretation or implementation thereof; changes in the company鈥�s customer and product mix; the risk that manufacturers of the products that the company distributes will sell a substantial amount of goods directly to end users in the industry sectors that the company serves; failure to operate the company鈥�s business in an efficient or optimized manner; the company鈥�s ability to compete successfully with other companies;听the company鈥�s lack of long-term contracts with many of its customers and the company鈥�s lack of contracts with customers that require minimum purchase volumes; inability to attract and retain employees or the potential loss of key personnel; adverse health events, such as a pandemic; interruption in the proper functioning of the company鈥�s information systems; the occurrence of cybersecurity incidents; risks related to the company鈥�s customers鈥� creditworthiness; the success of acquisition strategies; the potential adverse effects associated with integrating acquisitions and whether these acquisitions will yield their intended benefits; impairment of the company鈥�s goodwill or other intangible assets; adverse changes in political or economic conditions in the countries in which the company operates; the company鈥�s significant indebtedness; the dependence on the company鈥�s subsidiaries for cash to meet parent company obligations; changes in the company鈥�s credit profile; potential inability to obtain necessary capital; the sufficiency of the company鈥�s insurance policies to cover losses, including liabilities arising from litigation; product liability claims against the company; pending or future asbestos-related claims against the company; exposure to U.S. and international laws and regulations, regulating corruption, limiting imports or exports or imposing economic sanctions; risks relating to ongoing evaluations of internal controls required by Section 404 of the Sarbanes-Oxley Act; risks related to changing laws and regulations including trade policies and tariffs; and the potential share price volatility and costs incurred in response to any shareholder activism campaigns.听

For a discussion of key risk factors, please see the risk factors disclosed in the company鈥檚 SEC filings, which are available on the SEC鈥檚 website at www.sec.gov and on the company鈥檚 website, www.mrcglobal.com. MRC Global鈥檚 filings and other important information are also available on the Investors听page of the company鈥檚 website at www.mrcglobal.com.

Undue reliance should not be placed on the company鈥檚 forward-looking statements. Although forward-looking statements reflect the company鈥檚 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鈥檚 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.

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No Offer or Solicitation

This document is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.

Additional Information about the Merger and Where to Find It

In connection with the merger, DNOW filed with the SEC a registration statement on Form S-4 that includes a definitive joint proxy statement of DNOW and MRC Global that also constitutes a prospectus of DNOW common shares to be offered in the merger. Each of DNOW and MRC Global may also file other relevant documents with the SEC regarding the merger. This document is not a substitute for the definitive听joint proxy statement/prospectus or registration statement or any other document that DNOW or MRC Global may file with the SEC.

INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS, AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY听IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER.

Investors and security holders are able to obtain free copies of the registration statement and definitive joint proxy statement/prospectus and other documents containing important information about MRC Global, DNOW and the merger, once such documents are filed with the SEC through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with the SEC by MRC Global will be available free of charge on MRC Global鈥檚 website at https://investor.mrcglobal.com/ or by contacting MRC Global鈥檚 Investor Relations Department by email at [email protected] or by phone at (832) 308-2847. Copies of the documents filed with the SEC by DNOW will be available free of charge on DNOW鈥檚 website at https://ir.dnow.com/ or by contacting DNOW鈥檚 Investor Relations Department by email at [email protected] or by phone at (281) 823-4006.

Participants in the Solicitation

MRC Global, DNOW and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the merger. Information about the directors and executive officers of MRC Global is set forth in MRC Global鈥檚 proxy statement for its 2025 annual meeting of stockholders, which was filed with the SEC on April 17, 2025. Information about the directors and executive officers of DNOW is set forth in DNOW鈥檚 proxy statement for its 2025 annual meeting of stockholders, which was filed with the SEC on April 4, 2025.

Additional information regarding the persons who may be deemed participants and their direct and indirect interests, by security听holdings or otherwise, is set forth in the registration statement, the definitive joint proxy statement/prospectus and other materials when they are听filed with the SEC in connection with the merger. Free copies of these documents may be obtained as described in the paragraphs above.

Notes to above:
* Does not foot due to rounding

The company defines Adjusted Gross Profit as sales, less cost of sales, plus depreciation and amortization, plus amortization of intangibles, plus inventory-related charges incremental to normal operations 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鈥檚 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听depending upon which costing 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 U.S. generally accepted accounting principles that is most directly comparable to Adjusted Gross Profit.

The company defines adjusted selling, general and administrative (SG&A) expenses听as SG&A,听restructuring expenses and other unusual items. The company presents adjusted SG&A because the company believes it is a useful indicator of the company鈥檚 operating performance. Among other things, adjusted SG&A听measures the company鈥檚 operating performance without regard to certain non-recurring, non-cash or transaction-related expenses.听The company uses adjusted SG&A听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 U.S. Generally Accepted Accounting Principles that is most directly comparable to adjusted SG&A.

The company defines adjusted EBITDA as net income听(loss) plus the loss from discontinued operations, net of tax,听plus interest, income taxes, depreciation and amortization, amortization of intangibles, and certain other expenses, including non-cash expenses, (such as equity-based compensation, restructuring, changes in the fair value of derivative instruments, asset impairments, including inventory, long-lived asset impairments (including goodwill and intangible assets), inventory-related charges incremental to normal operations, charges related to internal control remediation and plus or minus the impact of its LIFO inventory costing methodology.听The company presents adjusted EBITDA because the company believes adjusted EBITDA is a useful indicator of the company鈥檚 operating performance. Among other things, adjusted EBITDA measures the company鈥檚 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鈥檚 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 uses other measures, such as net income and sales, to measure operating performance.听See the company's Annual Report filed on Form 10-K for a more thorough discussion of the use of adjusted EBITDA.

The company defines adjusted net income from continuing operations听(a non-GAAP measure) as net听(loss) income plus the loss from discontinued operations, net of tax, plus or minus the after-tax听impact of items deemed non-standard and听plus or minus the after-tax impact of its LIFO inventory costing methodology.听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.听After-tax impacts were determined using the company's U.S. blended听statutory rate. The company presents adjusted net income from continuing operations听because the company believes it provides useful comparisons of the company鈥檚 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. The company believes that net (loss) income is the financial measure calculated and presented in accordance with U.S. Generally Accepted Accounting Principles that is most directly compared to adjusted net income听from continuing operations.

The company defines adjusted net income attributable to common stockholders (a non-GAAP measure) as net income (loss) attributable to common stockholders,听plus the loss from discontinued operations, net of tax, plus or minus the after-tax听impact of items deemed non-standard and听plus or minus the after-tax impact of its LIFO inventory costing methodology. After-tax impacts were determined using the company's听blended听statutory rate.听The company presents adjusted net income attributable to common stockholders and related per share amounts听because the company believes it provides useful comparisons of the company鈥檚 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, internal control remediation expenses,听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 which costing method they may elect.听The company believes that net income attributable to common stockholders is the financial measure calculated and presented in accordance with U.S. generally accepted accounting principles that is most directly compared to adjusted net income attributable to common stockholders.

Notes to above:

Net Debt and related leverage metrics may be considered non-GAAP measures. The company听defines Net Debt as total long-term debt, including current portion, minus cash. The company defines听its net debt leverage ratio as Net Debt divided by trailing twelve months Adjusted EBITDA. The company听believes Net Debt is an indicator of the extent to which the company鈥檚 outstanding debt obligations could be satisfied by cash on hand and a useful metric for investors to evaluate the company鈥檚 leverage position. The company believes the net debt听leverage ratio is a commonly used metric that management and investors use to assess the borrowing capacity of the company. The company听believes total long-term debt (including the current portion) is the financial measure calculated and presented in accordance with U.S. generally accepted accounting principles that is most directly comparable to Net Debt.