MRC Global (MRC) Q1 2020 Earnings Call Transcript

MRC Global (MRC) Q1 2020 Earnings Call Transcript

On the call, we have Andrew Lane, president and CEO; and Kelly Youngblood, executive vice president and CFO.. In our remarks today, we will discuss adjusted gross profit, adjusted gross profit percentage, adjusted EBITDA and adjusted EBITDA margin.. Debt reduction is my top near-term priority, and in the first quarter, we bought $3 million of interest in our term loan B at a 23% discount.. Our cash flow generation this year is expected to be adequate to pay down our ABL and then leaving our nearest debt maturity, our term loan, at September 2024.. After deducting our preferred dividend and capital expenditures at those cash flow levels, we should generate free cash flow of over $160 million.. While we are making some significant changes with respect to our cost structure, our long-term strategy is the same.. Our revenue grew 4% sequentially, and our adjusted gross margin for the quarter was 19.8%, which was a 70-basis point improvement over the fourth quarter.. We also generated $37 million in cash from operations in the first quarter.. As previously mentioned, we expect it to generate healthy cash from operations this year as we reduce our working capital.. While we took cost-reduction efforts last