Rob Saltiel 

MRC GLOBAL ANNOUNCES Q1 RESULTS

MRC Global recently announced its first quarter 2021 results. The company’s sales were $609 million for the first quarter of 2021, which was 5% higher than the fourth quarter of 2020 and 23% lower than the first quarter of 2020. 

Sequentially, all sectors experienced an increase in sales, except for gas utilities, which was lower due to an unseasonably higher-than-average fourth quarter. As com-pared to the first quarter of 2020, the gas utility sector sales were higher due to market share gains, and all other sectors and segments declined as the impact of the COVID-19 pandemic reduced customer spending.

Net loss attributable to common stockholders for the first quarter of 2021 was ($9) million, or ($0.11) per diluted share, as compared to the first quarter of 2020 net in-come of $3 million, or $0.04 per diluted share. 

“I am pleased with the solid first quarter performance that our team delivered,” MRC Global President and CEO Rob Saltiel said. “Despite a slow start to the quarter resulting from customer budget resets and extreme weather conditions, we were able to achieve a 5% sequential revenue increase, a stronger bottom line and continued cash flow generation, reflecting an improved business environment. 

“In my first few weeks at MRC Global, I have been very impressed with the caliber of our employees and the long-standing relationships we enjoy with our customers and suppliers. These strengths, along with our commitment to operational excellence and superior customer service, have allowed our company to become the leading PVF distributor and will support our growth ambitions in the years ahead.”

MRC Global’s first quarter 2021 gross profit was $103 million, or 16.9% of sales as compared to the first quarter of 2020 gross profit of $148 million, or 18.6% of sales. Gross profit for the first quarter of 2021 includes $4 million of expense in cost of sales relating to the use of the last-in, first out (LIFO) method of inventory cost account-ing as compared to the first quarter of 2020, which includes income of $3 million relating to LIFO inventory cost accounting. Adjusted gross profit, which excludes the im-pact of LIFO, for the first quarter of 2021, was $118 million or 19.4% of revenue.

Selling, general and administrative (SG&A) expenses were $100 million, or 16.4% of sales, for the first quarter of 2021 compared to $126 million, or 15.9% of sales, for the same period in 2020. Adjusted SG&A of $98 million for the first quarter of 2021 excludes $2 million of employee separation expense.

Income tax expense was $0 for the first quarter of 2021 as compared to $5 million for the first quarter of 2020. In the first quarter of 2021, the 0% effective tax rate is a result of tax expense on foreign income offsetting U.S. tax benefits on pre-tax losses. The company’s rates generally differ from the U.S. federal statutory rate of 21% as a result of state income taxes and differing foreign income tax rates.

VIEGA NAMED 
VENDOR OF THE YEAR

Viega recently was named a vendor of the year by Winsupply. Viega was awarded the top place in the rough-in plumbing category. In addition, Winsupply named Viega National Account Manager Bonnie Mason as national account manager of the year.

“We’re proud to be recognized for our products and service by Winsupply,” said Sean Debnath, vice president of sales and marketing at Viega. “We’re committed to working with our distributors for the benefit of both companies and, ultimately, the customer.”

Viega was chosen by Winsupply’s local companies for its significant growth and partnership with the distributor, it explained. Mason was singled out for her outstand-ing work in helping Winsupply grow its Viega business. 

“Bonnie Mason is the perfect example of going above and beyond,” Winsupply Vice President of Vendor Relations Amy Souders said. “She continues to support Winsup-ply and our efforts to grow. From our Winsupply regional distribution centers, to our smaller local company teams, Bonnie has helped Winsupply increase business.” 

AD reports 14% sales increase

The AD buying and marketing group reported member sales in the first quarter of 2021 were $12.7 billion, an increase of 14% across its 13 divisions and three countries.

Same-store sales were up 6%. Purchases by member companies from AD supplier partners were up 16%. Net distributions to its members were up 19%

“The AD community had an excellent start to 2021,” AD’s Chairman and CEO Bill Weisberg said. “The positive momentum that began in the back half of 2020 continued into this quarter, leaving us bullish for the balance of this year. Where there are areas of risk, particularly related to supply and demand imbalances, we’ve been im-pressed, for the most part, with how AD suppliers are treating their long-time channel partners.”  

Compiled by Mike Miazga miazgam@bnpmeda.com