Net income attributable to common stockholders for the fourth quarter of 2023 was $15 million, or $0.17 per diluted share, as compared to a net income of $15 million, or
MRC Global’s fourth quarter 2023 gross profit was $153 million, or 19.9% of sales, as compared to gross profit of $158 million, or 18.2% of sales, in the fourth quarter of 2022. Gross profit for the fourth quarter of 2023 and 2022 each reflect expense of $5 million and $16 million, 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 these items, as well as others, was 21.9% in the fourth quarter of 2023 and 21.2% in the fourth quarter of 2022.
Highlights for the full year and fourth quarter 2023:
Full Year 2023 Financial Highlights:
● Cash flow provided by operations of $181 million
● Sales of $3,412 million, an increase of 1% compared to 2022
● Adjusted EBITDA of $250 million, 7.3% of sales
● Two consecutive years of adjusted EBITDA percentages above 7%
● Adjusted Gross Profit, as a percentage of sales, of 21.5% and two consecutive years above 21%
● Leverage ratio of 0.7x, the lowest in
Fourth Quarter 2023 Financial Highlights:
● Sales of $768 million, a decrease of 12% compared to the same quarter of 2022
● Adjusted EBITDA of $48 million, 6.3% of sales
● Adjusted Gross Profit, as a percentage of sales, of 21.9%, the seventh consecutive quarter exceeding 21%
“In 2024, we expect revenue to be flat to modestly lower than 2023 levels. We expect a pick-up in our business activity in the second half of the year as an improving economy and lower interest rates support projects and oil and gas investments. We are targeting to generate
"Longer term, we project that
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Gross Profit, Adjusted Net Income 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.
Selling, general and administrative (SG&A) expenses were $125 million, or 16.3% of sales, for the fourth quarter of 2023 compared to $123 million, or 14.2% of sales, for the same period of 2022. Adjusted SG&A expense for the fourth quarter of 2023 and 2022 was $124 million, or 16.1% of sales and $122 million, or 14.0% of sales, respectively. Fourth quarter 2023 adjusted SG&A expense excludes $1 million of activism response related costs and the fourth quarter of 2022 excludes $1 million of pre-tax severance and restructuring costs.
For the three months ended
Adjusted EBITDA was $48 million in the fourth quarter of 2023 compared to $66 million for the same period in 2022. 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 $768 million for the fourth quarter of 2023, 12% lower than the fourth quarter of 2022 and a 14% decline from the third quarter of 2023. As compared to the fourth quarter of 2022, the decline was driven by the
Sales by Segment
Sequentially, as compared to the third quarter of 2023,
Canada sales in the fourth quarter of 2023 were $28 million, down $18 million, or 39%, from the same quarter in 2022 driven by the PTI sector from non-recurring projects and year end curtailment in customer spending.
Sequentially, as compared to the third quarter of 2023,
International sales in the fourth quarter of 2023 were $107 million, up $4 million, or 4%, from the same period in 2022 as all sectors experienced growth. The DIET sector increase was driven by energy transition activity, and the PTI sector was driven by projects in the
Sequentially, as compared to the third quarter of 2023, International sales increased $2 million, or 2%, from growth in the PTI and DIET sectors. The PTI sector increase was driven by activity in
Sales by Sector
Gas Utilities sales in the fourth quarter of 2023 were $253 million, or 33% of total sales, a decline of $66 million, or 21%, from the fourth quarter of 2022 driven by the
Sequentially, as compared to the third quarter of 2023,
DIET sales in the fourth quarter of 2023 were $258 million, or 34% of total sales, up $10 million, or 4%, from the fourth quarter of 2022 driven by the
Sequentially, as compared to the third quarter of 2023, DIET sales decreased $21 million, or 8%, driven by the
PTI sales in the fourth quarter of 2023 were $257 million, or 33% of total sales, down $45 million, or 15%, from the fourth quarter of 2022 driven by the
Sequentially, as compared to the third quarter of 2023, PTI sales decreased $38 million, or 13%, driven by the U.S. segment followed by the
Balance Sheet and Cash Flow
As of December 31, 2023, the company's cash balance was $131 million, long-term debt (including current portion) was $301 million and net debt was $170 million. Cash provided by operations was $89 million in the fourth quarter of 2023 resulting in $181 million of cash provided by operations for the full year 2023. Availability under the company’s asset-based lending facility was $610 million and liquidity was $741 million as of
Conference Call
The company will hold a conference call to discuss its fourth quarter and full year 2023 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:
VP, Investor Relations & |
Monica.Broughton@mrcglobal.com |
832-308-2847 |
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
(in millions) | ||||||||
2023 | 2022 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 131 | $ | 32 | ||||
Accounts receivable, net | 430 | 501 | ||||||
Inventories, net | 560 | 578 | ||||||
Other current assets | 34 | 31 | ||||||
Total current assets | 1,155 | 1,142 | ||||||
Long-term assets: | ||||||||
Operating lease assets | 205 | 202 | ||||||
Property, plant and equipment, net | 78 | 82 | ||||||
Other assets | 21 | 22 | ||||||
Intangible assets: | ||||||||
264 | 264 | |||||||
Other intangible assets, net | 163 | 183 | ||||||
$ | 1,886 | $ | 1,895 | |||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Trade accounts payable | $ | 355 | $ | 410 | ||||
Accrued expenses and other current liabilities | 102 | 115 | ||||||
Operating lease liabilities | 34 | 36 | ||||||
Current portion of debt obligations | 292 | 3 | ||||||
Total current liabilities | 783 | 564 | ||||||
Long-term liabilities: | ||||||||
Long-term debt | 9 | 337 | ||||||
Operating lease liabilities | 186 | 182 | ||||||
Deferred income taxes | 45 | 49 | ||||||
Other liabilities | 20 | 22 | ||||||
Commitments and contingencies | ||||||||
6.5% Series A Convertible Perpetual Preferred Stock, and outstanding | 355 | 355 | ||||||
Stockholders' equity: | ||||||||
Common stock, | 1 | 1 | ||||||
Additional paid-in capital | 1,768 | 1,758 | ||||||
Retained deficit | (678 | ) | (768 | ) | ||||
(375 | ) | (375 | ) | |||||
Accumulated other comprehensive loss | (228 | ) | (230 | ) | ||||
488 | 386 | |||||||
$ | 1,886 | $ | 1,895 | |||||
Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Sales | $ | 768 | $ | 869 | $ | 3,412 | $ | 3,363 | ||||||||
Cost of sales | 615 | 711 | 2,722 | 2,753 | ||||||||||||
Gross profit | 153 | 158 | 690 | 610 | ||||||||||||
Selling, general and administrative expenses | 125 | 123 | 503 | 470 | ||||||||||||
Operating income | 28 | 35 | 187 | 140 | ||||||||||||
Other (expense) income: | ||||||||||||||||
Interest expense | (6 | ) | (7 | ) | (32 | ) | (24 | ) | ||||||||
Other, net | 1 | 5 | (2 | ) | (6 | ) | ||||||||||
Income before income taxes | 23 | 33 | 153 | 110 | ||||||||||||
Income tax expense | 2 | 12 | 39 | 35 | ||||||||||||
Net income | 21 | 21 | 114 | 75 | ||||||||||||
Series A preferred stock dividends | 6 | 6 | 24 | 24 | ||||||||||||
Net income attributable to common stockholders | $ | 15 | $ | 15 | $ | 90 | $ | 51 | ||||||||
Basic earnings per common share | $ | 0.18 | $ | 0.18 | $ | 1.07 | $ | 0.61 | ||||||||
Diluted earnings per common share | $ | 0.17 | $ | 0.18 | $ | 1.05 | $ | 0.60 | ||||||||
Weighted-average common shares, basic | 84.3 | 83.6 | 84.2 | 83.5 | ||||||||||||
Weighted-average common shares, diluted | 85.9 | 85.3 | 85.5 | 84.9 | ||||||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
(in millions) | ||||||||
Year Ended | ||||||||
2023 | 2022 | |||||||
Operating activities | ||||||||
Net income | $ | 114 | $ | 75 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operations: | ||||||||
Depreciation and amortization | 19 | 18 | ||||||
Amortization of intangibles | 21 | 21 | ||||||
Equity-based compensation expense | 14 | 13 | ||||||
Deferred income tax benefit | (7 | ) | (7 | ) | ||||
Increase in LIFO reserve | 2 | 66 | ||||||
Other non-cash items | 7 | 4 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 72 | (128 | ) | |||||
Inventories | 16 | (196 | ) | |||||
Other current assets | (3 | ) | (9 | ) | ||||
Accounts payable | (58 | ) | 90 | |||||
Accrued expenses and other current liabilities | (16 | ) | 33 | |||||
Net cash provided by (used in) operations | 181 | (20 | ) | |||||
Investing activities | ||||||||
Purchases of property, plant and equipment | (15 | ) | (11 | ) | ||||
Proceeds from the disposition of property, plant and equipment | 1 | - | ||||||
Net cash used in investing activities | (14 | ) | (11 | ) | ||||
Financing activities | ||||||||
Payments on revolving credit facilities | (882 | ) | (779 | ) | ||||
Proceeds from revolving credit facilities | 847 | 824 | ||||||
Payments on debt obligations | (3 | ) | (2 | ) | ||||
Debt issuance costs paid | (1 | ) | - | |||||
Dividends paid on preferred stock | (24 | ) | (24 | ) | ||||
Repurchases of shares to satisfy tax withholdings | (4 | ) | (2 | ) | ||||
Net cash (used in) provided by financing activities | (67 | ) | 17 | |||||
Increase (decrease) in cash | 100 | (14 | ) | |||||
Effect of foreign exchange rate on cash | (1 | ) | (2 | ) | ||||
Cash beginning of year | 32 | 48 | ||||||
Cash end of year | $ | 131 | $ | 32 | ||||
Supplemental Sales Information (Unaudited) | ||||||||||||||||
(in millions) | ||||||||||||||||
Disaggregated Sales by Segment and Sector | ||||||||||||||||
Three Months Ended | ||||||||||||||||
International | Total | |||||||||||||||
2023 | ||||||||||||||||
$ | 252 | $ | - | $ | 1 | $ | 253 | |||||||||
DIET | 191 | 4 | 63 | 258 | ||||||||||||
PTI | 190 | 24 | 43 | 257 | ||||||||||||
$ | 633 | $ | 28 | $ | 107 | $ | 768 | |||||||||
2022 | ||||||||||||||||
$ | 313 | $ | 6 | $ | - | $ | 319 | |||||||||
DIET | 182 | 5 | 61 | 248 | ||||||||||||
PTI | 225 | 35 | 42 | 302 | ||||||||||||
$ | 720 | $ | 46 | $ | 103 | $ | 869 |
Year Ended | ||||||||||||||||
International | Total | |||||||||||||||
2023 | ||||||||||||||||
$ | 1,190 | $ | 4 | $ | 3 | $ | 1,197 | |||||||||
DIET | 790 | 20 | 250 | 1,060 | ||||||||||||
PTI | 865 | 122 | 168 | 1,155 | ||||||||||||
$ | 2,845 | $ | 146 | $ | 421 | $ | 3,412 | |||||||||
2022 | ||||||||||||||||
$ | 1,247 | $ | 15 | $ | 1 | $ | 1,263 | |||||||||
DIET | 758 | 25 | 226 | 1,009 | ||||||||||||
PTI | 818 | 126 | 147 | 1,091 | ||||||||||||
$ | 2,823 | $ | 166 | $ | 374 | $ | 3,363 | |||||||||
Supplemental Sales Information (Unaudited) | ||||||||||||||||
(in millions) | ||||||||||||||||
Sales by Product Line | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
Type | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Line pipe | $ | 133 | $ | 172 | $ | 566 | $ | 589 | ||||||||
Carbon fittings and flanges | 98 | 106 | 451 | 441 | ||||||||||||
Total carbon pipe, fittings and flanges | 231 | 278 | 1,017 | 1,030 | ||||||||||||
Valves, automation, measurement and instrumentation | 272 | 290 | 1,192 | 1,111 | ||||||||||||
Gas products | 170 | 191 | 782 | 778 | ||||||||||||
Stainless steel and alloy pipe and fittings | 29 | 33 | 137 | 180 | ||||||||||||
General products | 66 | 77 | 284 | 264 | ||||||||||||
$ | 768 | $ | 869 | $ | 3,412 | $ | 3,363 | |||||||||
Supplemental Information (Unaudited) | ||||||||||||||||
Reconciliation of Gross Profit to Adjusted Gross Profit (a non-GAAP measure) | ||||||||||||||||
(in millions) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Percentage | Percentage | |||||||||||||||
2023 | of Revenue* | 2022 | of Revenue* | |||||||||||||
Gross profit, as reported | $ | 153 | 19.9 | % | $ | 158 | 18.2 | % | ||||||||
Depreciation and amortization | 4 | 0.5 | % | 4 | 0.5 | % | ||||||||||
Amortization of intangibles | 6 | 0.8 | % | 6 | 0.7 | % | ||||||||||
Increase in LIFO reserve | 5 | 0.7 | % | 16 | 1.8 | % | ||||||||||
Adjusted Gross Profit | $ | 168 | 21.9 | % | $ | 184 | 21.2 | % |
Year Ended | ||||||||||||||||
Percentage | Percentage | |||||||||||||||
2023 | of Revenue* | 2022 | of Revenue* | |||||||||||||
Gross profit, as reported | $ | 690 | 20.2 | % | $ | 610 | 18.1 | % | ||||||||
Depreciation and amortization | 19 | 0.6 | % | 18 | 0.5 | % | ||||||||||
Amortization of intangibles | 21 | 0.6 | % | 21 | 0.6 | % | ||||||||||
Increase in LIFO reserve | 2 | 0.1 | % | 66 | 2.0 | % | ||||||||||
Adjusted Gross Profit | $ | 732 | 21.5 | % | $ | 715 | 21.3 | % | ||||||||
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 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 | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Selling, general and administrative expenses | $ | 125 | $ | 123 | $ | 503 | $ | 470 | ||||||||
Severance and restructuring (1) | - | (1 | ) | - | (1 | ) | ||||||||||
Customer settlement (2) | - | - | (3 | ) | - | |||||||||||
Non-recurring IT related professional fees | - | - | (1 | ) | - | |||||||||||
Activism response legal and consulting costs | (1 | ) | - | (1 | ) | - | ||||||||||
Adjusted Selling, general and administrative expenses | $ | 124 | $ | 122 | $ | 498 | $ | 469 |
Notes to above:
(1) | Employee severance and restructuring charges (pre-tax), primarily in the | |
(2) | Charge (pre-tax) for a customer settlement in our |
The company defines adjusted selling, general and administrative (SG&A) expenses as SG&A, less severance and restructuring expenses and other unusual items. The company presents adjusted SG&A because the company believes it 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 Income (Loss) to Adjusted EBITDA (a non-GAAP measure) | ||||||||||||||||
(in millions) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income | $ | 21 | $ | 21 | $ | 114 | $ | 75 | ||||||||
Income tax expense | 2 | 12 | 39 | 35 | ||||||||||||
Interest expense | 6 | 7 | 32 | 24 | ||||||||||||
Depreciation and amortization | 4 | 4 | 19 | 18 | ||||||||||||
Amortization of intangibles | 6 | 6 | 21 | 21 | ||||||||||||
Severance and restructuring (1) | - | 1 | - | 1 | ||||||||||||
Non-recurring IT related professional fees | - | - | 1 | - | ||||||||||||
Increase in LIFO reserve | 5 | 16 | 2 | 66 | ||||||||||||
Equity-based compensation expense (2) | 4 | 4 | 14 | 13 | ||||||||||||
Activism response legal and consulting costs | 1 | - | 1 | - | ||||||||||||
Customer settlement (3) | - | - | 3 | - | ||||||||||||
Asset disposal (4) | - | - | 1 | - | ||||||||||||
Foreign currency (gains) losses | (1 | ) | (5 | ) | 3 | 8 | ||||||||||
Adjusted EBITDA | $ | 48 | $ | 66 | $ | 250 | $ | 261 |
Notes to above:
(1) | Employee severance and restructuring charges (pre-tax), primarily in the | |
(2) | Charges (pre-tax) recorded in SG&A. | |
(3) | Charge (pre-tax) for a customer settlement in our | |
(4) | Charge (pre-tax) for an asset disposal in our International segment. |
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.
Supplemental Information (Unaudited) | ||||||||||||||||
Reconciliation of Net Income (Loss) Attributable to Common Stockholders to | ||||||||||||||||
Adjusted Net Income 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 income attributable to common stockholders | $ | 15 | $ | 0.17 | $ | 90 | $ | 1.05 | ||||||||
Non-recurring IT related professional fees, net of tax | - | - | 1 | 0.01 | ||||||||||||
Asset disposal, net of tax (1) | - | - | 1 | 0.01 | ||||||||||||
Customer settlement, net of tax (2) | - | - | 2 | 0.02 | ||||||||||||
Activism response legal and consulting costs, net of tax | 1 | 0.01 | 1 | 0.01 | ||||||||||||
Increase in LIFO reserve, net of tax | 4 | 0.04 | 2 | 0.02 | ||||||||||||
Adjusted net income attributable to common stockholders | $ | 20 | $ | 0.23 | $ | 97 | $ | 1.13 |
Three Months Ended | Year Ended | |||||||||||||||
Amount | Per Share | Amount | Per Share | |||||||||||||
Net income attributable to common stockholders | $ | 15 | $ | 0.18 | $ | 51 | $ | 0.60 | ||||||||
Increase in LIFO reserve, net of tax | 12 | 0.14 | 50 | 0.59 | ||||||||||||
Adjusted net income attributable to common stockholders | $ | 27 | $ | 0.32 | $ | 101 | $ | 1.19 |
Notes to above:
*Does not foot due to rounding
(1) | An after-tax charge for an asset disposal in our International segment. | |
(2) | An after-tax charge for a customer settlement in our |
The company defines adjusted net income attributable to common stockholders (a non-GAAP measure) as net income attributable to common stockholders plus or minus the after-tax impact of items deemed non-standard and plus or minus the after-tax impact of its 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. After-tax impacts were determined using the company's
Supplemental Information (Unaudited) | ||||
Reconciliation of Long-term Debt to Net Debt (a non-GAAP measure) and the Leverage Ratio | ||||
Calculation | ||||
(in millions) | ||||
| ||||
2023 | ||||
Long-term debt | $ | 9 | ||
Plus: current portion of debt obligations | 292 | |||
Total debt | 301 | |||
Less: cash | 131 | |||
Net Debt | $ | 170 | ||
Net Debt | $ | 170 | ||
Trailing twelve months adjusted EBITDA | 250 | |||
Leverage ratio (1) | 0.7 |
Notes to above:
(1) | Under the Senior Secured Term Loan B, for purposes of calculating the leverage ratio, cash is limited to |
Net Debt and related leverage metrics may be considered non-GAAP measures. The company defines Net Debt as 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:
2024 GlobeNewswire, Inc., source