MRC Global Inc. (NYSE:MRC) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 10:00 am ET


MRC Global Inc. (NYSE:MRC) Q2 2020 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the MRC Global Second Quarter 2020 Earnings Call. [Operator Instructions]

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ms. Monica Broughton, Investor Relations for MRC Global. Thank you. You may begin.

Monica Broughton

Thank you, and good morning, everyone. Welcome to the MRC Global second quarter 2020 earnings conference call and webcast. We appreciate you joining us today. On the call, we have Andrew Lane, President and CEO; and Kelly Youngblood, Executive Vice President and CFO. There will be a replay of today's call available by webcast on our website,, as well as by phone until August 12, 2020. The dial-in information is in yesterday's release. We expect to file our quarterly report on Form 10-Q later today, and it will also be available on our website.

Please note that the information reported on this call speaks only as of today, July 29, 2020, and therefore, you are advised that this information may no longer be accurate as of the time of replay. In our remarks today, we will discuss adjusted gross profit, adjusted gross profit percentage, adjusted EBITDA, adjusted EBITDA margins, adjusted SG&A, adjusted net income and adjusted diluted earnings per share. You are encouraged to read our earnings release and securities filings to learn more about our use of these non-GAAP measures and to see a reconciliation of these measures to the related GAAP items, all of which can be found on our website.

In addition, the comments made by the management of MRC Global during this call may contain forward-looking statements within the meaning of the United States federal securities laws. These forward-looking statements reflect the current views of the management of MRC Global. However, MRC Global's actual results could differ materially from those expressed today. You are encouraged to read the company's SEC filings for a more in-depth review of the risk factors concerning these forward-looking statements.

And now I'd like to turn the call over to our CEO, Mr. Andrew Lane.

Andrew R. Lane

Thank you, Monica. Good morning, and thank you for joining us today and for your continued interest in MRC Global. Today, I will provide an update of our COVID-19 pandemic response, the Company's second quarter 2020 highlights as well as progress against our strategic objectives, including our e-commerce initiative, and I'll wrap up with some recently announced customer contract wins, I'll then turn over the call to our CFO, Kelly Youngblood, for a detailed review of the financial results.

First, let me start with an update on the disruption caused by the global COVID-19 pandemic and our response. As you are well aware, the pandemic and related mitigation measures have created significant market uncertainty and severely reduced current demand for oil and gas. Consequently, we took a $301 million pretax charge this quarter related to an impairment of our goodwill and intangibles, along with restructuring charges for severance, facility closures and inventory write-downs. The demand deterioration and associated customer spending reduction was also