MRC Global Announces First Quarter 2013 Results

               MRC Global Announces First Quarter 2013 Results

Sales of $1.305 billion

Net income of $46.2 million, up 23% from Q1 2012

Diluted EPS of $0.45 per share

Adjusted EBITDA of $103.9 million

Long-term debt reduced to $1.073 billion

PR Newswire

HOUSTON, May 2, 2013

HOUSTON, May 2, 2013 /PRNewswire/ -- MRC Global Inc. (NYSE: MRC), the largest
global distributor, based on sales, of pipe, valves and fittings (PVF) and
related products and services to the energy and industrial sectors, today
announced first quarter 2013 results. MRC's sales of $1.305billion in the
first quarter of 2013 decreased 5.6% from the first quarter of 2012 largely
due to the planned reduction in the Company's lower margin oil country tubular
goods (OCTG) business, which represented 10% of total sales in the first
quarter of 2013 compared to 16% of total sales in the first quarter of 2012.
Also contributing to the year-over-year sales decrease was slower activity in
the U.S. upstream and midstream sectors during the quarter.

Net income for the first quarter of 2013 increased 23% to $46.2 million, or
$0.45 per diluted share, compared to $37.5 million, or $0.44 per diluted
share, in the first quarter of 2012. Diluted shares outstanding increased 21%
since the first quarter of 2012 due to MRC's initial public offering in April
2012. Adjusted EBITDA was $103.9 million for the first quarter of 2013
compared to $115.2 million for the same period in 2012. See the table below
for a reconciliation of adjusted EBITDA to net income.

Andrew R. Lane, MRC's chairman, president and chief executive officer, stated,
"The industry-wide slowdown we saw in the fourth quarter continued into the
first two months of this year, particularly in the upstream and midstream
sectors, resulting in lower revenues as compared to our strong first quarter a
year ago. However, our gross profit improved over the same period a year ago
as we continued to rebalance our product mix away from the OCTG business. We
also realized substantial interest expense savings due to the refinancing
steps we took in the fourth quarter of 2012. As a result, we generated net
income growth of 23% in the quarter. Our strategy to focus on our higher
margin product lines and reduce exposure to our OCTG business has proven
timely given the sluggish drilling rig activity in the U.S."

The Company's U.S. sales were $965.6 million in the first quarter of 2013 and
reflected a decrease in OCTG revenues of $105 million from the first quarter
of 2012. Excluding the OCTG business, U.S. revenues were 2% higher than last
year's first quarter driven by acquisitions. Sales in Canada in the first
quarter of 2013 were $204.5 million, down 2% from the same quarter in 2012.
International sales of $135.0million in the first quarter of 2013 increased
11% over the same period in 2012, reflecting the acquisition of the piping
systems division of OneSteel Limited (MRC PSA) in March 2012.

First quarter 2013 sales to the upstream sector declined 11% from the first
quarter of 2012 to $578.4million, or 44% of sales, primarily attributable to
the planned reduction in OCTG revenues. First quarter 2013 midstream sales
decreased 4% from the same period in 2012 to $345.6 million, or 27%of sales.
Adverse winter weather conditions in certain parts of the U.S. also
contributed to the decline in the midstream sector in the 2013 first quarter.
First quarter 2013 sales to the downstream sector increased 2% over the same
period in 2012 to $381.1 million, or 29% of sales, driven by the Company's MRC
PSA acquisition and organic growth in the U.S. of 4.5%.

MRC's first quarter 2013 gross profit of $246.6 million improved by 180 basis
points to 18.9% of sales from $236.6 million, or 17.1% of sales, in the first
quarter of 2012. The increase in gross profit percentage reflected planned
changes in product mix and other gross profit enhancement initiatives and
included a $3.1 million pre-tax first quarter 2013 benefit resulting from the
use of the last-in, first-out (LIFO) method of inventory cost accounting.

For the first quarter of 2013, selling, general and administrative expenses
(SG&A) were $160.8million compared to $146.4 million in the same period in
2012. This increase was primarily attributable to the inclusion of expenses
from MRC PSA and Production Specialty Services, Inc. along with an increase in
personnel expenses.

Mr. Lane continued, "We generated strong cash flow from operations of $174
million and lowered our outstanding debt to $1.073 billion in the first
quarter of 2013 as we continue to strengthen the Company's financial
position. This represents our lowest quarterly debt level since May 2008."

Updated Calendar Year 2013 Guidance

MRC's expected full year 2013 results, excluding the impact of any future
acquisitions, are as follows:

                           Low             High
Revenue                    $5.750 billion  $5.950 billion
Adjusted EBITDA            $480 million    $510 million
Diluted Earnings Per Share $2.10           $2.30

Conference Call

The Company will hold a conference call to discuss its first quarter 2013
results at 10:00 a.m. Eastern (9:00 a.m. Central) on Friday, May 3, 2013. To
participate in the call, dial(480) 629-9692 and ask for the MRC Global
conference call at least 10 minutes prior to the start time. To access it live
over the Internet, please log onto the web at http://www.mrcglobal.com, and go
to the "Investor Relations" page of the Company's website at least fifteen
minutes early to register, download and install any necessary audio software.
For those who cannot listen to the live call, a replay will be available
through May 17, 2013 and may be accessed by dialing (303) 590-3030 and using
passcode 4609102#. Also, an archive of the webcast will be available shortly
after the call at http://www.mrcglobal.com for 90 days.

About MRC Global Inc.

Headquartered in Houston, Texas, MRC, a Fortune 500 company, is the largest
global distributor, based on sales, of pipe, valves and fittings (PVF) and
related products and services to the energy and industrial sectors and
supplies these products and services across each of the upstream, midstream
and downstream sectors.

This news release contains forward-looking statements within the meaning of
Section27A of the Securities Act and Section21E of the Exchange Act. Words
such as "will," "expect," "expected" 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 expected
interest savings, revenue, adjusted EBITDA and diluted earnings per share in
2013, 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 involve known and unknown
risks, uncertainties and other factors that may cause the company'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) decreases in oil and natural
gas industry expenditure levels, which may result from decreased oil and
natural gas prices or other factors; increased usage of alternative fuels,
which may negatively affect oil and natural gas industry expenditure levels;
U.S.and international general economic conditions; the company's ability to
compete successfully with other companies in the company's industry; the risk
that manufacturers of the products the company distributes will sell a
substantial amount of goods directly to end users in the industries it serves;
unexpected supply shortages; cost increases by the company's suppliers; the
company's lack of long-term contracts with most of its suppliers; increases in
customer, manufacturer and distributor inventory levels; suppliers' 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's profit; increases in steel prices, which it may be unable
to pass along to its customers, which could significantly lower its profit;
the company's lack of long-term contracts with many of its customers and its
lack of contracts with customers that require minimum purchase volumes;
changes in the company's customer and product mix; risks related to the
company's customers' credit; the potential adverse effects associated with
integrating acquisitions into the company's business and whether these
acquisitions will yield their intended benefits; the success of the company's
acquisition strategies; the company's significant indebtedness; the dependence
on the company's subsidiaries for cash to meet its debt obligations; changes
in the company's credit profile; a decline in demand for certain of the
products that the company distributes if import restrictions on these products
are lifted; environmental, health and safety laws and regulations; the
sufficiency of the company'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; the
potential loss of key personnel; interruption in the proper functioning of the
company's information systems; loss of third-party transportation providers;
potential inability to obtain necessary capital; risks related to adverse
weather events or natural disasters; impairment of the company's goodwill or
other intangible assets; changes in tax laws or adverse positions taken by
taxing authorities in the countries in which the company operates; and adverse
changes in political or economic conditions in the countries in which the
company operates.For a discussion of key risk factors, please see the risk
factors disclosed in the company's SEC filings, which are available on the
SEC's website at www.sec.gov and on the company's website, www.mrcglobal.com.

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.



MRC Global Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share amounts)
                                            March 31,         December 31,
                                            2013              2012
Assets
Current assets:
 Cash                                     $     27,421  $     37,090
 Accounts receivable, net                 806,723           823,236
 Inventories, net                         955,468           970,228
 Deferred income taxes                    5,261             6,603
 Other current assets                     19,916            13,417
Total current assets                        1,814,789         1,850,574
Other assets                                35,948            37,031
Property, plant and equipment, net          120,964           122,458
Intangible assets:
 Goodwill, net                            610,222           610,392
 Other intangible assets, net             735,672           749,272
                                            1,345,894         1,359,664
                                            $  3,317,595    $  3,369,727
Liabilities and stockholders' equity
Current liabilities:
 Trade accounts payable                   $    519,218   $    438,344
 Accrued expenses and other current       105,856           124,026
liabilities
 Income taxes payable                     24,912            -
 Deferred revenue                         5,320             1,573
 Deferred income taxes                    80,160            79,661
 Current portion of long term debt        6,500             6,500
Total current liabilities                   741,966           650,104
Long-term obligations:
 Long-term debt, net                      1,066,570         1,250,089
 Deferred income taxes                    255,993           261,448
 Other liabilities                        22,197            22,164
                                            1,344,760         1,533,701
Commitments and contingencies
Stockholders' equity:
 Common stock, $0.01 par value per
share; 500,000 shares authorized,
 101,685 and 101,563 issued and        1,017             1,016
outstanding, respectively
 Preferred stock, $0.01 par value per
share; 100,000 shares authorized,
 no shares issued and outstanding      -                 -
 Additional paid-in capital               1,629,729         1,625,900
 Retained (deficit)                       (372,647)         (418,830)
 Accumulated other comprehensive loss     (27,230)          (22,164)
                                            1,230,869         1,185,922
                                            $  3,317,595    $  3,369,727



MRC Global Inc.
Condensed Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share amounts)
                                      Three Months Ended
                                      March 31,             March 31,
                                      2013                  2012
Sales                                 $   1,305,100       $   1,382,632
Cost of sales                         1,058,529             1,146,071
Gross profit                          246,571               236,561
Selling, general and administrative   160,757               146,384
expenses
Operating income                      85,814                90,177
Other income (expense):
 Interest expense                   (15,302)              (33,717)
 Write off of debt issuance costs   -                     (1,685)
 Change in fair value of            567                   2,125
derivative instruments
 Other, net                         116                   1,747
Income before income taxes            71,195                58,647
Income tax expense                    25,012                21,113
Net income                            $      46,183    $      37,534
Basic earnings per common share       $        0.45  $       
                                                            0.44
Diluted earnings per common share     $        0.45  $       
                                                            0.44
Weighted-average common shares,       101,609               84,437
basic
Weighted-average common shares,       102,426               84,756
diluted





MRC Global Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollars in thousands)
                                        Three Months Ended
                                        March 31,           March 31,
                                        2013                2012
Operating activities
Net income                              $      46,183  $      37,534
Adjustments to reconcile net income
to net cash provided
 by operations:
 Depreciation and amortization     5,392               4,131
 Amortization of intangibles       13,243              12,317
 Equity-based compensation         1,920               1,841
expense
 Deferred income tax benefit       (4,017)             (2,110)
 Amortization of debt issuance     1,446               2,326
costs
 Write off of debt issuance costs  -                   1,685
 (Decrease) increase in LIFO       (3,072)             6,900
reserve
 Change in fair value of           (567)               (2,125)
derivative instruments
 Provision for uncollectible       (907)               727
accounts
 Non-operating losses and other    388                 700
items not using cash
 Changes in operating assets and
liabilities:
 Accounts receivable            11,937              (44,150)
 Inventories                    12,581              (68,807)
 Income taxes payable           25,198              14,044
 Other current assets           (6,987)             (5,834)
 Accounts payable               83,484              43,816
 Deferred revenue               3,763               (2,026)
 Accrued expenses and other     (15,578)            17,346
current liabilities
Net cash provided by operations         174,407             18,315
Investing activities
Purchases of property, plant and        (4,890)             (4,458)
equipment
Proceeds from the disposition of        52                  1,195
property, plant and equipment
Acquisitions, net of cash acquired      -                   (72,816)
Other investment and notes receivable   295                 (3,813)
transactions
Net cash used in investing activities   (4,543)             (79,892)
Financing activities
Payments on revolving credit            (544,460)           (537,064)
facilities
Proceeds from revolving credit          365,167             651,210
facilities
Payments on long term obligations       (1,625)             (31,456)
Debt issuance costs paid                (173)               (7,099)
Proceeds from exercise of stock         1,459               -
options
Tax benefit on stock options            451                 -
Net cash (used in) provided by          (179,181)           75,591
financing activities
Increase (decrease) in cash             (9,317)             14,014
Effect of foreign exchange rate on      (352)               (1,308)
cash
Cash – beginning of period              37,090              46,127
Cash – end of period                    $      27,421  $      58,833



MRC Global Inc.
Supplemental Information (Unaudited)
Calculation of Adjusted EBITDA
(Dollars in millions)
                                         Three Months Ended March 31,
                                         2013                  2012
Net income                               $             $       
                                         46.2                  37.5
Income tax expense                       25.0                  21.1
Interest expense                         15.3                  33.7
Write off of debt issuance costs         -                     1.7
Depreciation and amortization            5.4                   4.1
Amortization of intangibles              13.2                  12.3
(Decrease) increase in LIFO reserve      (3.1)                 6.9
Change in fair value of derivative       (0.6)                 (2.1)
instruments
Equity-based compensation expense        1.9                   1.8
Other expenses (income)                  0.6                   (1.8)
Adjusted EBITDA                          $       103.9  $      
                                                               115.2

Note to above:
MRC defines Adjusted EBITDA as net income plus interest, income taxes,
depreciation and amortization, amortization of intangibles, and other
non-recurring and non-cash charges (such as gain/losses on the early
extinguishment of debt, changes in the fair value of derivative instruments
and goodwill impairment) 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 factor indicator of the company's
operating performance. Among other things, the company believes that Adjusted
EBITDA is a useful indicator of the company's operating performance because
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 U.S.
generally accepted accounting principles (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.

Contacts:
James E. Braun, Executive Vice President and Chief Financial Officer
MRC Global Inc.
Jim.Braun@mrcglobal.com
832-308-2845


Ken Dennard, Managing Partner
Dennard ▪ Lascar Associates
ken@dennardlascar.com
713-529-6600

SOURCE MRC Global Inc.

Website: http://www.mrcglobal.com