MRC - Earnings call transcript Q1 2024

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Operator

Greetings, and welcome to MRC Global's First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Monica Broughton, Vice President, Investor Relations and Treasury. Please go ahead.

Monica Schafer

Thank you, and good morning. Welcome to the MRC Global First Quarter 2024 Conference Call and Webcast. us. joining you appreciate We

by On XXXX. the CEO; CFO. Saltiel, and yesterday's phone call have will as website, well release. as dial-in today, Kelly Youngblood, information we by available today's and of and May a Rob on Executive our be mrcglobal.com XX, President until replay call webcast The Vice There in President is

Please later note therefore, to our today, May time X, are will discuss the the XXXX, as on be we of quarterly today today, XX-Q and information longer and file may the Form accurate various call available only as you no will expect non-GAAP on We that our replay. In of our advised reported measures. on website. that information speaks this be also report call of

related release reconciliation to You learn to about website. our are encouraged measures found on these of our of see which measures items, more our read and securities to non-GAAP the all these of GAAP use can a be filings and earnings to

we in to adjusted refer to this state references Unless EBITDA EBITDA. call otherwise, specifically

meaning statements addition, the securities of made by the the this call MRC States management United In the reflect forward-looking Global. may the contain of the current laws. statements management within MRC These Global federal forward-looking of comments during of views

However, actual results could differ expressed today. materially from those

filings forward-looking over more in-depth Mr. a call risk these CEO, Saltiel. company's review for turn concerning now statements. And You Rob SEC are I'd the our to encouraged the factors like to read the of to

Robert Saltiel

will XXXX begin before achievements of couple high-level and concluding welcome and of initiatives to notable Thank joining our with discuss you, call. results review everyone morning, a our Monica. I a today's outlook. with and first quarter Good

over quarter XXXX I the detailed brief of to before review to the a recap. guidance I and a call will Kelly deliver provide turn then

because We a generated our QX in start to quarter first operating generation. for year quarter, cash first $XX the great flow lowest in quarter Starting the with million is our highlights. cash typically

generating track We year. of to are operating cash on meet of for full exceed flow our $XXX million guidance or the

continue We our potential very company on generation cash the to of going be forward. bullish

revenue quarter exceeding remaining $XXX with the last out bottom business believe corner over gate year that coming of expectations the of quarters. new expect revenues quarter, our expand the our has in the and turned fourth the strong year. was quarter further million, X% the First We growing in representing and we our to fourth the

XXXX. And PTI with driven quarters in U.S. the downward sector, on quarter X trend our margins by to grew in sector quarter, revenue project stronger experienced is experienced Adjusted refining, improved DIET was X%, up pipeline, led in the were by The increased in margins of valve very normalizing customer customer our eighth This XX%. increased now and by healthy infrastructure patterns, Gas buying spending our projects due This we chemical X% driven X% increases sequentially, reversing and by which and sales spend. improved mining the a gross XX.X%. Utilities all activity work and sectors, maintenance a exceeding last row sector production

history. As gross have adjusted most margins of experienced a previously, teens high transformational our level of we change from this the highlighted company's throughout represents

cost adjusted Adjusted with EBITDA the is margins were quarter. of strong quarter, the result X.X% along improvement discipline. This gross for fourth margins the an higher XX-basis-point first over both

stronger the X.Xx. ample ratio has with liquidity history Our lowest our balance never sheet leverage company public in been at and

to as generate improve this this we continue metric to cash further year. throughout expect We

intend address to current do strong term detail quarter. generation which profile more Our provides our will in the the Kelly us loan early, opportunity later. cash to this repay in we

by revenue X% revenues International improvement backlog a poised is double-digit business that This year than ago. year, for X% supported a sequentially. grew is higher XX% full and year-over-year our for Finally, the

International supported at our segment. important growth Transition are growth has doing and team's those customer maintain structure. to LNG that illustrate to particularly service, the projects, improve our highlight MRC Energy this Global cost we landing X in I revenue in initiatives new a would what our involving disciplined success Our now like enhance and

XXXX QX QX basis sales This began our a points experience. over of points up dividends over improved ago X First, digitally approximately is hit the orders XXX orders X,XXX up digital and ago that in strategy customer record continues of several to total form U.S. evolve years deliver placed great of an levels. in XXXX. basis years and additional XX% and

improves user-friendly We histories. orders. leverages and ordering, order This documentation to AI This tool our descriptions artificial provides as that, uses for quotation, This saves to product accurate order features such self-service service assembling product digital the provides to and in of order platform customer more process. quote-to-cash parts past customer to It benefits. and useful and needs process. a a deployed own have developed addition expedite to expediting, in intelligence quoting the facilitates quotes drives responsiveness tool urgent for our it initiative savings retention. One we a improve of and our customer salespeople our match for customer multiple us customer to time our and accuracy timeliness while it and and cost digital quoting that functionality loyalty that customers for is increasing underway efficiency a have exciting development

to We out enterprise elaborate and America we are project to on our our quoting want discussed team that finally, roll mode summer. And our testing I plan resource planning on in call. now, North tool last sales earnings beta we this this to

business. bring business cloud-based increased inventory operating procedures, to including our ERP standardized about of management We orders, current customer forecasting will and reporting and enhanced our to new improved to financial enhancements the and are accuracy relating enthusiastic the processes the functionality many that of efficiency performance. monitoring our We anticipate Oracle system

schedule. budget streamlined will customers that am remains systems on that more project trouble-free enable commerce. and I report Our pleased can integration ERP digital through benefit to this on

system running to fully of implemented expect in new XXXX. be second We on half the and the

best to project, we members some of excited to assigned and ERP transform this team its aspects our have are many about performing potential of business. We our

to now our outlook. Turning

first start in higher quarter last a achieve provides confidence year to performance the Our strong we XXXX call. that our will on encouraging very discussed the the and targets financial financial

As we mentioned second our experienced in believe earlier, stabilized year. the has from of the we declines last half business

XXXX sector, The likely We perspective, this on lowest larger and are Gas sector in potential optimistic but that the see seen the quarter of market and first that the customers our quarter likely revenue the see behind and of will signaling quarters. From continue Gas and the be quarter to coming is growth will their efforts, our we revenues. in the our a year, destocking growth Utilities long-term business fundamentals focus some we expect for remain stabilization us. backlog improvements very growth Utilities that of experienced will worst sequential is XXXX over positive, steady

new our share areas share. while Utilities Gas and targeting utilities expand wallet increase to existing to our market customers with continue We service

strong even sector, strong year We are are the plant targeting new we we optimistic utility of experience DIET solidify will revenue that contracts market and chemical this a from should refinery position this year level further. In renewable our that revenue in and a opportunities We in with supplemented growing transition with international fuels projects activities remain segment. XXXX majority wind to energy about occur by our of this the projects. power excited subsector our expected of slate maintenance growth

and that backlog late capture project next year North is expected carbon a America building healthy Additionally, in deliver to this we activity year. into are for

our to year. the business, steady PTI consistent Turning we the for remainder growth expect of

low the strong We likely currently prices gas natural relatively back to improve production activity from to expect positive oil economic remain of to declines. targeted curtailments due historical inventory prices on the for and and levels

to expected predominantly in favorable from is are the is our this a the oil companies in activity drive PTI E&P for of percentage customer field, base. driven public Larger as higher Global U.S. which revenue MRC XXXX

levels We as tend expect activity larger to levels operate these financial going increased less customers cyclicality and of discipline. with forward

gain to on larger Basin, are reassess MRC the announced their customers and especially chains in Permian We purchasing PTI as bullish contracts. and market share, Global's acquisitions complete supply ability

generally we larger development a we activities projects. the targets we appreciated adopt for operators with than perspective do business new is focus their acquirers better by gas do the As PVF we previously, products longer-term and purchasing maintenance stated who bring that oil the more when and and quality have

business sector that should positive and from expected position Another our the Middle in is strong and for to East. we benefit Europe is and our the expand, gas oil International in our PTI presence growing

controlling on focus to an inflationary cost continue structure environment. our We in

last call, SG&A As EBITDA mentioned our further in on a quarter's margin. adjusted minimum we aiming maintain optimize are to to XXXX X% costs

and returns our EBITDA Among optimizing the significant over years, losing few not freight are we delivery last in efficient costs. made our levels, in and XXXX. this progress our committed service more we are staffing becoming momentum other to elevating initiatives, have lowering costs We our

the million off better have is our adjusted as XXXX to are summary, the quarter. business prior a quarter we the In our our $X for significantly expected, costs We in start believe than of year the rearview were activity first good we low off point SG&A and for mirror. lower than started

year we XXXX ahead been of for long-term a our continue top for never a terms be transitional we of we in believe While and fundamentals and demand sectors for of outlook decades the and business products come. and X the their all to our market about services growth, creation to have company, that of expectation line position opportunities optimistic value will have our remain given us. We growing strong stronger multiple

an XXXX. net cash shareholders. and our approach generate distributing various our shareholders, we across to will hand our flexibility including capital capital business now our $XXX us gross recent strategies in us year, cycle. This minimal with XXXX, consistent over we structure working to Kelly. as consider will to cash operating for in even the efficiencies with have will company and into our or flow, generate approximately debt more million it significant us cost to more our allow to which margins, make And earnings Importantly, cash allocation excess stronger I flow positioned going that, This improvements expect

Kelly Youngblood

primarily otherwise Rob, quarter comments stated. on first focused and quarter good results fourth everyone. the unless morning, XXXX, to My XXXX the today comparing sequential be of of will Thanks,

related result million growth upcoming efforts. and for year. to normalization was in X% were of Utilities decline a and the From their sales first patterns increased were projects buying recent customer sector million first sales quarter X% compared company product for a sales the Total perspective, $XXX quarter, same increase. quarter certain of a sequential last destocking $XX or the million, the to X% Gas The $XXX a increase

safety we have Although this is backlog daily in average encouraging. some levels on focus year to their stabilization a far and sales so continue stock, customers reducing seen of that

year an project We to U.S. continue and spending increased growth increased International for next also our construction as into increase to Utilities due chemical to to due market LNG an activity with renewable, share in projects a costs, due lower and Europe. The be sector primarily an the rates Middle the refinery are in to quarter higher DIET PTI project East sector revenue gas as Gas in expecting well turnaround increase DIET move chemical XXXX of activity increase or increased of mining-related first was $X elevated sales for valves million, interest an due U.S. first transition the and we primarily polyethylene completions expect million, to customers the sales, we in for $XX $XXX and million in of $XXX as revenue well quarter and year. The or million X%, project was revenue pipe but X%

going optimistic sector, about business by forward. From should trends perspective, and for quarter, U.S. $XX increase prices, customer geographic all million we was DIET growth as million a in the which million up segment led tailwind nice recent are up sectors $XXX and million, which was consolidation or mentioned a increased improved. Gas the million. first Rob, be in commodity sector, which a our $XX supportive Utilities As revenue by PTI the followed the X% the $XX $XX

X%, sector improvement revenue was growth DIET in in in quarter, the as Canada the and increases $X was for the $XX for by segment the quarter, the sectors. double-digit in million offset sector in Europe. revenue or remains first first $X revenue a DIET International million International outlook in up both The decline and million Middle PTI PTI positive up sector. with DIET East $XXX primarily the in driven the revenue million expectations

was XX.X% decline a a for ago quarter compared quarter margins marks for sales and over mix as XX.X% Now XX.X%, with turning exceeding is the XX-basis-point our or overall a a XX-basis-point adjusted product we million higher-margin consecutive a from segment maintaining same million revenue million at quarter gross contribution have to improvement the to company $XXX to Adjusted margins. which the quarter of accretive of year or was XX% successful margins. Reported first higher gross profit fourth the sequentially. This as first $XXX International or and SG&A for quarter. eighth gross the been $XXX

charges included response, activism million of consulting $X pretax quarter legal This costs. to related and

quarter costs, higher from million, Excluding for first in million costs. with rate to increase the margins $XX XXXX gross the tax of sales, the was X.X% these adjusted of improvement in due Tax result measures. Adjusted EBITDA of an tax $X $XXX effective SG&A our $X quarter. or cost a elevated a fourth reduced expense X% fourth XX.X% $X the million quarter to first as of an rate of and was XX% as sales, the first compared our SG&A million for of quarter million control expense and was quarter sequential a effective XX-basis-point sales or and

to tax benefit due foreign fourth was net quarter reduction higher the effective valuation XXXX favorably rate impacted allowance. rate the statutory while in foreign with U.S. The was first by tax a a losses quarter no than of

For the on adjustments to and net quarter, And $X.XX diluted average shareholders diluted had for items share. cost or income our an normalizing net of million we $XX $X.XX common other per basis, first attributable common or stockholders to share. was income attributable million LIFO per adjusted $XX

from the are metrics. track capital meet operations, generated guidance first quarter, believe cash this year. million working $XX We In exceed we of flow we more and from EBITDA on in our increased million efficient cash operating $XXX or primarily to

in the the we to the result of year continued efficiency We generation higher year. capital progress in half also cash have gains expect second will which working through as

to and structure. Turning capital liquidity

Our cash, the is ABL million. including total and on million current our $XXX $XXX availability is liquidity

our any based on a balance and on with million ABL. of interest Term ongoing combination Our company our expense leverage on was XXX and also new basis cash $XXX we by to repay ratio will that This net B of the debt facility. remains this X.Xx, for our drawing low record intend a burden Loan for ABL reduce quarter points our

cover I'll full and the our quarter outlook Now XXXX. second for year

single For revenue total low digits in for expect sequential the quarter, second we up of be our the with increases sectors. to each company

upper our sequential our segments, with expect improvement geographic of each in an single-digit the business improvement also leading International We increase. with

in Our line call. provided outlook remains for the full guidance with QX on the year our

Although more half backlog we quarter growth. good a is typically year guidance heavily to the to our the and we second is are build weighted this to start to XXXX, current off very of annual revenue support the when

also fourth similar quarters a quarterly cadence in years growth the We to seasonal past expect the a revenue and in revenue third with quarter. second decline and

as continue We lower view to similar slightly or year transitional XXXX revenue to with levels. total company be XXXX than to a expected

adjusted X% for XX% revenue a of average or XX%. also the as Average average we As better, or better, adjusted XXXX. EBITDA following are key of metrics gross percent margins margins of reminder, SG&A adjusted a cost targeting below

$XX more of expect million or to $XXX million a our Capital $XX XXXX in to higher as XX%. implementation. And normal finally, expect range our run approximately XX% be million in flow. to effective generate $XX operating expected the to XXXX, are rate in of of be to result than ERP rate in the our we expenditures range tax million We cash in

And with for to like would to it that, comments. I turn Rob back closing

Robert Saltiel

Kelly. Thanks,

is company sequential has also The It off performance first bears repeating strong financial quarterly that with very started in with a to return revenue our position. growth. quarter solid a

into is a efficient balance for more a success. company We strong have transformed future Global MRC profitable sheet consistently poised and with that

opening the are summarize for before I want highlights These to XXXX Q&A.

year, that cash to of are million track $XXX target. we operations target to or this meet and from continue exceed on We

targeting gross in XXXX in average range full profit the margins for adjusted the EBITDA XX% X% average to expect year. are of remain and We

quarter. off We in B intend to full Loan pay the Term in our current

in We and expect to in minimal exit be position XXXX a with positive position a debt net cash net XXXX.

returning our allocation we we with excess Operator? will of levels strategies, your now flow quarters, generate strong we capital have consider shareholders. And including flexibility free take the to will that, financial various As to questions. coming ample cash consistently over cash

Operator

Tommy Instructions] Moll comes [Operator First question from Stephens. with

Thomas Moll

there's normal start you wanted some this to situate your a additional But customers. would own patterns cycle? destocking It anything more Utilities. you few in just that there helpful. appears provide case. I there Rob, wasn't just buying can like recovery on where quarters sounds You there be mentioned the some Gas But to still after by us can be

Robert Saltiel

Thanks, sure. Tommy. Yes,

what some their I think our number buying with what patterns. the regard We are we're with we've and majority to is destocking seeing business part of more said in gotten season. doing us certainly their destocking before returning them would are of this the through that more with They've a to positions our different customers customers and they're see the from of purchasing of of efforts. we normalized typical

their this are situation they However, who is customers as going there year. to still destocking everybody's be other are completing through efforts move slightly different. Again,

about our to for to half as see, that destocking. And of the is means the business higher thought would return business. bulk what think way the the second I we year, would normal trend on patterns, the to year encouraged the again, it going friction our it half obviously the we move this that we're first relates a which that of more as certainly revenues see purchasing of general is we'd

of and they from start even and So feeling key we're than that some the based that estimates our early of CapEx encouraged by XXXX stronger progress XXXX. better than the some as the will we'll look to XXXX year be of made being finish we on customers

Thomas Moll

there us What's the scope year on like budget out what And to this the you year? total more should update, we key is, schedule. or the progress just spills this much and going for across next as and on it refresh on just is what can implementation Also forward? sounds the I'm touch to into of are aware milestones you of next? amount which wanted But really ERP how CapEx some of figure of be trying full here

Kelly Youngblood

Yes. one. Tommy, this that I'll is Kelly. take

in be So XX% total year. remainder be and be the budget. I incorporated provided project, this budget bit we million will to would in The million the last CapEx said year. of $XX that million this guidance That's year's in so, we a $XX spend for probably quarter, of or think next the that approximately $XX will more into little of that,

we're And is We're the nicely tracking Everything we're prepared budget. said Rob really -- there. as remarks, schedule. on on on

milestones. asked well, the stage you So about the phase, to right the different wrap up -- design the essentially We're of system. blueprint we're at now, the detailed of about kind

of in That's We will live kind are the into on QX. kind we now. first system conference implementation we the system. And test transitioning starting to the part coming of will start user late which of very up kind room test speak to is pilot big of right be going the functionality QX then or that going converting project, a the the over here, of as of

to excited the very each of you everything we'll the about But really quarter going well, continue is going to the on out So get far, progress. update that additional functionality so guys system and we're it.

Robert Saltiel

see as Keep in mainframe Tom, also is, inventory us speed. But to of we're productive, business, to be is going I will lot And that, sure investment It's we're as implementer assessment monitoring this. give good tremendous don't create and making opportunities both and the it's we And that integration customers know a are just us a be for could well. make run And many terms and that excited significant is better fully the where that system. process it going capabilities excited to major sure sure financial we This we're I a ERP to to doing and being people. go a our with you management I inventory companies we to how about with if picked, forward. on able is there we're our we efficient things It's that cover on that to currently working think success. making design up company. for our more very our in the imagine for our are Yes. really obviously really about But that system, is the regard that considered a mainframe system a mind, add. group change change we're of with,

we to continue updates So give stay future tuned on calls. as

Operator

Stifel. question, with Nathan Jones Next

Nathan Jones

probably the a a going I'm and follow-up to ask question. Utilities little blunt be my Gas on with more business

on, what you the because for clearly -- Gas inventory guys have that with going and doing customers overearning is XXXX, underearning in level probably the the be 'XX is XXXX, an inventory. in Do in was correcting XXXX, Utilities indicates underearning business that in is? of business estimate think going 'XX. the XXXX, the I What to inventory level is are underearning of destocking destocking that it their simply that's

Robert Saltiel

decade, sure how question, where of good not previously at about if in the to Well, over we've Nathan. and growth it's of into how last terms But impacting our business. much definitive had growth you X% the we look this consistent natural we've patterns I'm can been a of built a that number. there's precise sort be kind think business this we X% in business

trajectory, And going get that off is else something once on. we clearly

that for need systems. be maintain to we starts order with the to have of for in they to mortgage maybe maybe our interest about well. economy implement from there's projects lower integrity go new opportunity the boost with to their get the infrastructure lower in continue to customers opportunities get And increasing, discussions some housing We obviously, going get rates, to a and we as safety rates,

growth that we've budgets X% to ones the customers we CapEx the long-term X% we're seen, seen that deviate into out, different in country all more Again, to looking each that's going the believe budgets, growth that are really that Again, get we areas destocking. back range. as not typically be that And the put have normalized. that's get XXXX. are for onto cadence to customer we've guidepost. those is these typically normal the year So a CapEx cadence And when per of Different a see we're as rates, to the we as what we a of slightly use lot from that attribute different. we that, but but going

Nathan Jones

I comment behind, share guys have know was made your remarks that's market in think fair a growth. some market. chemical like thrown his prepared Another resources you felt maybe I additional you weren't Kelly market been in that that getting share

comments So any there, market trend what's share in can on the future? and think what done been the you there in get you growth

Robert Saltiel

an been initiative for that's exciting Yes, us.

I think we've more mentioned all eyes IOCs. know. not a chemical few with calls that kind ago a that household of took companies, market. in of It's It's that names lot the specialized you past, our we off smaller, the along

really weren't and also to our to margins. accretive business, was also metallurgy is positioned it. to alloys, which like be well accretive heavy-valve of Some challenging oriented, enough space chemical And a get tend stainless margin is there, in for that obviously the for keep really us. that and mind There's competition we of lot requirements

we was a underserved before. We've to of a share of feel getting our in extremely we where continue in MRO space feel opportunity that to chemical felt new haven't on, for we're there same are like positioned planning in had number and of project going customers well traditionally we're that we served. working yet, work We've breaking for that to full very fruition been MRO a expand the So well lot or great it our and in with that reasons, still purchasing we because for haven't like at and business come we're done stages. But customers And have projects through better time, the the presence with we fair haven't the got terms like growth. projects. things early the

Nathan Jones

just the the say on loan going interest been of And debt than your on new Kelly, more the ability points And on given second, debt rate ABL current some issue one on that's the did first. you what's term refinancing your loan. and structure. to blocking term the capital view XXX on maybe basis payoff your lower

you're Just going to ability issue forward? how new thinking your about debt

Kelly Youngblood

Yes.

a as the term Moody's strength a right Nathan, our far loan mean, I XXX as of The We've SOFR some one the S&P the as So with ABL between right. you're Both on sheet exactly points. and difference example, basis got is rate. And balance them now. upgraded outlook discussions -- have just the of and positive. going to benchmark

even rating that company agencies of think we're the to have potential the coming flow recognized the generation strength the and cash additional So going have I up.

feel back we to to, that we things we or market through So that's like when care to take out need the go if we whether of. can need we other to, M&A need

restrictions really that I So no see of on any at all.

Operator

Chris question, Next Dankert Capital with Markets. Loop

Christopher Dankert

that I cadence off, calling still here? the generation in back here half. guess, cash were the guess full XQ, I you're kind generation year. neutral full really comments quarter on first But Is of cash for nice the the roughly previous the and reiterating generation expecting in first in half

Kelly Youngblood

typically cash second more Yes. We in That's year. half correct. generate the always the of

inventory payments reasons. cash the that has The really, couple management. tax to higher this the due for focused we we're significant past that us a coming improving organization there plans on quarter, EBITDA, the higher receivables, and year. the past the been of how tailwind. say, our into positive least thought out the payouts are, million their the we second elevated it have would project on if be the better, be bonus due our We've going are into customers were to with $XX year, of that, flow half as second I that amount our highly of revenue, of targets for And what an locking and quarter We made like things because quarter different efficiency quarter. going we reduction QX And we the a and was well, get better not of incremental that then should had first to been inventory meeting in have. but was really at had got we kind ultimately nice then balances of that. But some fall-through on the flattish needs was half a in inventory much

Christopher Dankert

the Is of quarter? give volume it. And EBITDA great would too thinking some we're of uplift it there of to the we get versus guess, just be Got year I kind not about for see to expecting higher will kind can first second here hear. sequentially. on news EBITDA flattish into the going but any you quarter, forward us shape comments you then the Or kind here? margin to margin That's myopic, be from

Robert Saltiel

mean, Yes, really can I'll basically and we in. is and I for EBITDA a the to between model goal it X% see difference said take should this finally. you that substantial quarters think one don't really that where flattish. margin, Kelly I I'll jump we We've a cut year let our

we a year it's the that about high even important see the margins in extremely growth part, that maintain that before. EBITDA due talked issue set the typical large think to a revenue year where not as transition we Obviously, we've to that we in we expect, we're going destocking due

we revenue having likely terms to get can quarter. as right shoot go. through X% 'XX. as up this And level. probably into pattern But We'll as those margins a then and on back move is toward revenue, the second in of not up up more we growth model move to happen hope the then your that's year see the certainly EBITDA So moves to margin a in way X% back as normal we

Operator

Markets. Capital KeyBanc with Newman Ken question, Next

Katie Fleischer

quarter, a year. Katie given conservatism This these your of positive much trying Fleischer, some other outlook? guidance you I'm of in strength And Utilities, that the from included on just in Ken seeing is Gas what's today. sense It the of within how for is this get raising to preventing kind just outside you're businesses? seems like for trends Newman

Robert Saltiel

Yes, of good a in we've out good and There's quarter year, one early question we Keep guidance to mind, we're coming that worth still in question. gate, had based books, the we're of the just quarter change in on no expected. the hesitant got than better data.

build into is keep significant now of the revenue. half in we're The that other that basically to turns thing our we typically is in where second that mind backlog the quarter amount

really into really half May, going backlog the through second be revenue in July, of June, year. where situation So we've a the into that got is the turned to that's

other The orders that business and in project is and of received. the lot a of forward to shift backward mind thing we depending cadence can that is related keep projects the our on

we So the the yet. are just but excited in about to we're not to year, start ready Katie, summary, raise guidance

Katie Fleischer

makes That Okay. sense.

In year? terms this of those cancellations pushouts have seen any or projects, you

Robert Saltiel

never of projects under have permitting LNG to talked back. come And move shift left. fact we've look, the that's underway. certainly the to about seem seem I think pressure the projects because They always issue currently to the some that before Well,

slips year. from project first will Nothing talked of our Again, things be to if be Some you occur. And other got, We've but conservative. next to right. but in guidance. take tend that obviously, year projects about of specific, there, they have major unlike the fact in little the changing we've and a because little of point conservative quarter at before that projects, more big in gives bit generally to our slide lumpy report less speaking, to a the to this to just some to nothing you the about when just impact that like, the report tend little we results. sense we're a full fourth longer a than Obviously, that MRO quarter just of why character business, predictable they terms

Katie Fleischer

will double-digit good in there All be just modeling a Okay. the Kelly, did then I That's color. in a increase more sneak just International want to DIET you that here, segment? right. within And question. one say

Kelly Youngblood

a International and improvement for International it double-digit DIET. Well, International Yes. will also and PTI be a improvement will double-digit overall be

Katie Fleischer

Okay.

because that to up So year, to quarter. full the guide next digits that is be decrease year year sequentially saying low second DIET trying bridge going to single in you're that I'm Does meet of the imply going just to full that half outlook? it's the just that to

Kelly Youngblood

forecasting are projects. lumpiness DIET of a with falloff little year, in bit the the of end We just towards the

through in said QX a I that, my the in single Now remarks will bit a where sequentially. I specifically, be I specifically year, go think, prepared digits it DIET. high second we up quarter, But think yes, is of decline little we're as International, for showing

Operator

to I for Monica closing floor remarks. over the Broughton to turn would like

Monica Schafer

day. Have us and call join interest in in joining our forward for to We MRC you for your second having great you Global. a quarter August. Thank for today look our conference call

Operator

This teleconference. today's concludes

at lines your your disconnect thank may and participation. time, this for you You

MRC Global (MRC) 9 May 242024 Q1 Earnings call transcript