Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 9, 2015

 

 

MRC GLOBAL INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-35479   20-5956993

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification Number)

2 Houston Center, 909 Fannin, Suite 3100,

Houston, TX 77010

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (877) 294-7574

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 7.01 Regulation FD Disclosure.

MRC Global Inc. (“MRC Global”) executive management will make a presentation on June 9, 2015 to attendees of the J.P. Morgan Energy Distribution Day regarding, among other things, MRC Global’s operations and performance. A copy of the materials to be used at the presentation (the “Presentation Materials”) is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The Presentation Materials, possibly with modifications, will also be used from time to time after June 9, 2015 in presentations about MRC Global’s operations and performance to current and potential investors, lenders, creditors, insurers, vendors, customers, employees and others with an interest in MRC Global and its business.

The information contained in the Presentation Materials is summary information that should be considered in the context of MRC Global’s filings with the Securities and Exchange Commission and other public announcements that MRC Global may make by press release or otherwise from time to time. The Presentation Materials speak as of the date of this Current Report on Form 8-K. While MRC Global may elect to update the Presentation Materials in the future or reflect events and circumstances occurring or existing after the date of this Current Report on Form 8-K, MRC Global specifically disclaims any obligation to do so. The Presentation Materials will also be posted in the Investor Relations section of MRC Global’s website, http://www.mrcglobal.com for 90 days.

The information referenced under Item 7.01 (including Exhibit 99.1 referenced under Item 9.01 below) of this Current Report on Form 8-K is being “furnished” under “Item 7.01. Regulation FD Disclosure” and, as such, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information set forth in this Current Report on Form 8-K (including Exhibit 99.1 referenced under Item 9.01 below) shall not be incorporated by reference into any registration statement, report or other document filed by MRC Global pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

99.1 Investor Presentation, dated June 9, 2015

 

2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: June 9, 2015

 

MRC GLOBAL INC.
By:

/s/ James E. Braun

James E. Braun
Executive Vice President and Chief Financial Officer

 

3


INDEX TO EXHIBITS

 

Exhibit

No.

  

Description

99.1    Investor Presentation, dated June 9, 2015

 

4

EX-99.1
1
June 9, 2015
J.P. Morgan Energy Distribution Day
Andrew Lane
Chairman, President & CEO
Jim Braun
Executive Vice President & CFO
Exhibit 99.1
TM


2
2
Forward Looking Statements and Non-GAAP Disclaimer
This
presentation
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”, “looking forward”, “guidance” and similar expressions are intended to identify forward-looking statements. Statements
about the company’s business, including its strategy, the impact of changes in oil prices and customer spending, its industry, the company’s future
profitability, the company’s guidance on its sales, adjusted EBITDA, adjusted gross profit, tax rate, capital expenditures and cash flow, 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 our control, including the factors described in the
company’s
SEC
filings
that
may
cause
our
actual
results
and
performance
to
be
materially
different
from
any
future
results
or
performance
expressed or
implied by these forward-looking statements.
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. Our filings and other important information are also available on the Investor Relations
page
of
our
website
at
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.


3
By the Numbers¹
Industry Sectors
Product Categories
TTM Sales
TTM Adjusted EBITDA
$5.920B
$427M
Upstream
Line Pipe & OCTG
Employees
~4,700
Locations
400+
Midstream
Valves
Countries
Operations
Direct Sales (>$100,000)
All countries
20
45+
90+
Customers
21,000+
Downstream/ Industrial
Fittings & Flanges
Suppliers
21,000+
SKU’s
230,000+
Company Snapshot
MRC Global is the largest global distributor of pipe, valves and fittings (PVF)
to the energy industry, by sales
1.
As of March 31, 2015


4
Revenue by Industry Sector
Note: Percentage of sales for the twelve months ended March 31, 2015
Upstream
46%
Downstream 
25%
Midstream
29%
Diversified Across All Three Major Energy Sectors
Other/
Industrial
12%
Chemicals &
Refining
13%
Gas Utility
10%
Transmission
19%
Production
Infrastructure,
Materials &
Supplies
37%
Drilling &
Completion Tubulars
(OCTG)
9%


5
By Product Line
Revenue by Geography and Product Line
10%
15%
23%
25%
27%
Canada
Asia / Europe
Eastern
Western
Gulf Coast
32%
21%
20%
18%
9%
Valves
Fittings & Flanges
Line Pipe
General Oilfield
Products
OCTG
Note: Percentage of sales for the twelve ended March 31, 2015
By Geography
21%
18%
Houston, TX
Edmonton, AB
Bradford,
UK
Singapore
Perth, AU
Stavanger,
NO
Diversified Across Multiple Geographies -
Domestically (all shale plays) and Internationally
20%
9%
32%


6
Downstream
Midstream
Upstream
MRC Global plays a vital role in the complex, technical, global energy supply chain
Long-Term Supplier & Customer Relationships
CUSTOMERS
SUPPLIERS
IOCs
Phillips
66
Valero
DOW
DuPont
Marathon
Petroleum
AGL
Resources
Atmos
NiSource
PG&E
MarkWest
DCP
Midstream
Chesapeake
Energy
CNRL
ConocoPhillips
Apache
Anadarko
California Resources
Corporation
Hess
Husky
Energy
Marathon
Oil
Statoil
Energy Carbon Steel
Tubular Products
Valves
Fittings, Flanges and General
Use Products
Tenaris
TMK-
IPSCO
U.S.
Steel
CSI Tubular
JMC
Wheatland
Balon
Cameron
Flowserve
Kitz
Neway
Velan
Boltex
Bonney
Forge
Chevron
Phillips
Chemical
Tube
Forgings of
America
WL Plastics
Emerson
Williams


7
Integrated Supply Statistics
Supplying Integrated Supply services since 1988
Accounts
for
sales
in
excess
of
$830
million
and
growing
rapidly
Employ over 190 personnel at customer sites
Providing Integration Services on over 100 customer sites
Managing
over 1.4 million customer part numbers
Consignment inventories in excess of $35 million at 700
locations
Manage
customer-owned
point
of
use
materials
at
over
800 locations
MRC Global is a leading provider of Integrated Supply
Services to the Energy Industry


8
Strategic
Objectives
Rebalance Product Mix to
Higher Margin Items
Focus on valves and valve automation
Growth from Mergers & Acquisitions
Continue to identify geographic and
product line opportunities
1.
Percentage of sales for the twelve months ended March 31, 2015
Organic Growth
Targeted Growth Accounts:
develop the “next 75” customers
30%
22%
48%
All Other -
21,000+ customers
Targeted Growth Accounts
Top 1 -
25
Customer
Mix
-
Sales
1
Focus on multi-year “Top 25” MRO agreements &
adding scope to current agreements
Execute Global Preferred Supplier Contracts
Recently added or renewed:
MarkWest
U.S. midstream MRO, 5 years
Statoil –
Norway, Johan Sverdrup project,
instrumentation
Marathon Oil –
U.S. MRO, 5 years
California
Resources
Corporation
U.S.
Integrated
Supply, 3 years
TECO Energy’s People’s Gas & New Mexico Gas –
U.S. Integrated Supply, 5 years
SABIC –
Saudi Arabia, downstream valve
framework agreement, 5 years


9
Strategic Shift in Product Mix to Higher Margin Products
($ millions)
Total
Revenue
less
Carbon
Energy
Tubulars
(OCTG
&
Line
Pipe)
15% CAGR for Higher Margin Products 2010 -
2014
$2,384
$2,989
$3,697
$3,705
$4,238
2010
2011
2012
2013
2014


10
Product Mix
Shift from 2008 to 2014
Stable, higher margin valves are a larger percentage of revenue.
More volatile carbon pipe is a smaller percentage of revenue.
The prices of higher margin products are more stable.
2008
71%
Higher
Margin
Products
29%
Carbon
Pipe
2014
Note: Percentage of sales for the year ended December 31, 2008 and December 31, 2014
OCTG
24%
Line Pipe
21%
Valves
15%
Fittings &
Flanges
18%
General
Oilfield
Products
22%
55%
Higher
Margin
Products
45%
Carbon
Pipe
OCTG
10%
Line Pipe
19%
Valves
32%
Fittings &
Flanges
21%
General
Oilfield
Products
18%


11
Inflation impacted both OCTG and LP in 2008…resulting in a significant
reduction in prices in 2009.
Today, prices are lower and have less to fall in a downturn.
Line Pipe
Prices
OCTG Prices
$3,242
$1,675
$1,786
$1,487
Peak 2008
Trough 2009
Peak 2014
Apr-15
48%
$3,036
$1,614
$1,643
$1,486
Peak 2008
Trough 2009
Peak 2014
Apr-15
47%
Carbon Steel Prices in 2008/2009 as Compared to Today
Note:
Prices
are
per
ton
as
reported
in
published
market
data.
Amounts
reflect
peak
prices
in
September
2008,
trough
prices
in
November
2009.
2014
peak
prices
for
OCTG
are
from
November
and
Line
Pipe from August.
17%
10%


12
Strategic Expansion into Offshore Production Platform MRO
Top 4
largest offshore markets ~$140 billion E&P spend
Norway is the largest –
we are positioned in 4 of the 5 largest offshore markets.
MRC Global revenue mix
Pre Stream
acquisition (2013) –
approx. 98% onshore, 2% offshore
Post Stream
acquisition (2014) –
approx. 93% onshore, 7% offshore
$38
$36
$35
$32
$24
$20
$17
$16
$16
$15
Norway
United Kingdom
USA
Brazil
Australia
Angola
Nigeria
Kingdom of Saudi Arabia
Malaysia
Mexico
Top 10 Global Offshore E&P Markets
1
1. Source: Rystad
Energy, September 2014
($ billions)
Stream 2014 Sales by Division
Valve
Management
37%
Instrumentation
38%
Pipe, Fittings
& Flanges
25%


13
Building an International Platform for Growth
$0
$52
$256
$330
$567
$554
$873
2008
2009
2010
2011
2012
2013
2014
International Segment Revenue
($ millions)
North America
Estimated PVF Spend
~$25B
Estimated
Percentage
of
PVF
Spend
1
International
Estimated PVF Spend
~$20B
1.  Estimated percentages are management estimates based on 2014 results.
All
Others
80%
MRC
Global
20%
~$5.0B
All
Others
95%
MRC
Global
5%
~$900M


14
Financial Overview


15
$663
$850
$1,058
$1,009
$1,120
$254
$241
2010
2011
2012
2013
2014
2014
2015
Financial Metrics
Sales
Adjusted Gross Profit and % Margin
Adjusted EBITDA and % Margin
7.0%
8.5%
($ millions, except per share data)
Y-o-Y
Growth
28%
24%
(5%)
11%
Y-o-Y
Growth
61%
29%
(17%)
10%
$3,846
$4,832
$5,571
$5,231
$5,933
$1,306
$1,292
2010
2011
2012
2013
2014
2014
2015
$224
$360
$463
$386
$424
$84
$87
2010
2011
2012
2013
2014
2014
2015
5.8%
7.5%
8.3%
7.4%
7.1%
6.4%
6.7%
Y-o-Y
Growth
26%
15%
(6%)
13%
Diluted EPS
$(0.61)
$0.34
$1.22
$1.48
$1.40
$0.23
$0.28
2010
2011
2012
2013
2014
2014
2015
Y-o-Y
Growth
156%
259%
21%
(5%)
17.2%
17.6%
19.0%
19.3%
18.9%
19.5%
18.6%
Three months ended
March 31
Three months ended
March 31
Three months ended
March 31
Three months ended
March 31


Balance Sheet Metrics
Total Debt
Capital Structure
Cash Flow from Operations
Net Leverage
($ millions)
March 31, 2015
Pro forma
March 31,
2015
Cash and Cash Equivalents
$ 49
$ 49
Total Debt (including
current portion):
Term Loan
B due 2019, net of discount
778
528
Global ABL Facility due 2019
595
482
Total Debt
$
1,373
$ 1,010
Preferred
stock
-
363
Common Stock
1,375
1,375
Total Capitalization
$ 2,748
$ 2,748
Liquidity
$ 436
$ 549
5.8x
4.1x
2.5x
2.6x
3.4x
2.4x –
2.8x
3.1x
2010
2011
2012
2013
2014
2015E
03/31/15
$113
$(103)
$240
$324
$(106)
$350
-
$450
$(74)
$116
2010
2011
2012
2013
2014
2015E
2014
2015
$1,360
$1,527
$1,257
$987
$1,454
$690 -
$790
$1,373
2010
2011
2012
2013
2014
2015E
03/31/15
Three months ended
March 31
NOTE:
2015E
and
pro
forma
March
31,
2015
amounts
assume
the
gross
proceeds
from
the
$363
million
convertible
preferred
stock
issuance,
which
is
expected
to
close
in
the
second
quarter,
are
used
to
reduce
debt.
Related
expenses are not considered.
Total
Debt
is
reduced
by
previously
disclosed
$300-$400
million
in
cash
generated
from
operations
in
addition
to
the
proceeds
from
the
convertible
preferred
stock.
It is assumed that the Term Loan B is reduced by $250 million and the Global ABL is reduced by $113 million. The actual amount repaid to each of the Term Loan B and the Global ABL may vary.
The Net Leverage ratio is calculated assuming $49 million in cash and using a denominator of $267 million, which is 2015 EBITDA consensus, as per Bloomberg on June 2, 2015.
16


17
Summary of Key Terms -
Convertible Preferred Stock
Conversion price: $17.88. Convertible into approximately 20.3 million shares or 16.6% of
shares outstanding after conversion.
6.5% annual dividend, payable quarterly
Entitled to vote as a single class on an as-converted basis
MRC may redeem for cash all the outstanding shares on or after 5 years at 105% or
100% after 7 years.
MRC may force conversion after 54 months, if the common share price has been at least
150% of the conversion price for any 20 out of 30 consecutive trading days.
The holder has the right to appoint a non-voting observer to the board as long as 33% of
the original investment percentage is maintained. After 3 years, the holder may designate
a board member.
Standstill requirements including restrictions on acquiring additional shares


18
Current 2015 Outlook –
Updated May 2015
Upstream market indicators
North
American
E&P
capital
expenditure
budgets
down
30
-
35%,
with
Canada
impacted
the
most
International spending is expected to be 10-20% lower
US rig count down approximately 1,050 from peak in 2014
Commodities
WTI Oil price $55 -
$65/bbl
(Brent $60 -
$70)
US Natural Gas prices $2.25-$3.25/mcf
Expect to generate $350-$450 million of cash from operations
Free cash flow to be used to reduce debt
Cost saving measures undertaken
Headcount reduction
Lower incentive compensation
Salary and hiring freezes
Revenue headwinds $100 million or more related to currency
Potential deflation in tubular products 10% -
20%


19
Macro drivers
Growth in global energy consumption
driving investment
Increased global production
Need for additional energy infrastructure
Expansion of downstream energy
conversion businesses
Investment Thesis
Highlights
Leading global PVF distributor to the energy sector
MRC Global attributes
Market leader
Exposed to all sectors of global energy
Long term global customer & supplier
relationships
Generates strong cash flow from operations
over the cycle


20
Appendix


MRC Global // North America
Corporate Headquarters
Branch Locations
Regional Distribution Centers
Valve Automation Centers
Western
Gulf Coast
Canada
Eastern
21


Global Footprint to Serve Customers -
North America
Munster, IN
Nitro, WV
Tulsa, OK
Houston, TX
Nisku, AB
Cheyenne, WY
Odessa, TX
Bakersfield, CA
By the Numbers
As of 3/31/2015
Branches
160+
RDCs
10
VACs
14
Employees
~3,300
Pittsburg, PA
Regional Distribution Centers
Corporate Headquarters
Valve Automation Centers
Branch Locations
San Antonio, TX
22


Global Footprint to Serve Customers -
Europe
Stavanger, NO
By the Numbers
As of 3/31/2015
Branches
35
RDCs
3
VACs
14
Countries
12
Employees
~900
Rotterdam, NL
Bradford, UK
Regional Distribution Centers
Valve Automation Centers
Branch Locations
23


Global Footprint to Serve Customers -
Asia Pacific & Middle East
Singapore
Perth, WA
Brisbane, QLD
Dubai, UAE
By the Numbers
As of 3/31/2015
Branches
28
RDCs
4
VACs
7
Countries
8
Employees
~500
Regional Distribution Centers
Valve Automation Centers
Branch Locations
24


25
Date
Acquisition
Rationale
Region
Revenue
($ millions)
Oct-08
LaBarge
Midstream
U.S.
$ 233
Oct-09
Transmark
International
valve platform
Europe and Asia
346
May-10
South Texas Supply
Domestic shale
Eagle Ford Shale
-
South Texas
9
Aug-10
Dresser
Oil Tools Supply
Domestic shale
Bakken
Shale
-
North Dakota
13
Jun-11
Stainless Pipe and Fittings
Projects
Australia / SE Asia
91
Jul-11
Valve Systems and Controls
Valve automation
U.S. Gulf of Mexico
13
Mar-12
OneSteel
Piping Systems
International
PVF expansion
Australia
174
Jun-12
Chaparral Supply
Domestic shale
Mississippian Lime -
Oklahoma /
Kansas
71
Dec-12
Production Specialty Services
Domestic shale
Permian Basin / Eagle Ford shale
127
Jul-13
Flow Control
Products
Valve automation
Permian Basin / Eagle Ford shale
28
Dec-13
Flangefitt
Stainless
Stainless/Alloys
United Kingdom
24
Jan-14
Stream
International Offshore PVF
Norway
271
May-14
MSD Engineering
Valve automation
Singapore & SE Asia
26
Jun-14
HypTeck
International Offshore
Norway
38
1.
Reflects reported revenues for the year of acquisition or 2013 for Stream, MSD and HypTeck.
M&A -
Track Record of Strategic Acquisitions
Acquisition Priorities
International branch platform for “super majors” E&P spend
Branch platforms/infrastructure for North American shale plays
Global valve and valve automation
Global stainless/alloys
1
$ 1.46 Billion +


Upstream
26


Midstream
27


Downstream
28


29
Performance Measures
$1,043
$1,234
$1,255
$1,054
$1,181
2010
2011
2012
2013
2014
$180
$217
$238
$203
$223
2010
2011
2012
2013
2014
Sales
per
Employee
($ thousands)
Adjusted Gross Profit per Employee
($ thousands)
23.0%
19.8%
20.4%
21.8%
21.3%
2010
2011
2012
2013
2014
11.7%
10.6%
10.9%
12.3%
12.1%
2010
2011
2012
2013
2014
SG&A / Sales
Average Working Capital / Sales
1.9%
6.1%
10.9%
8.4%
7.0%
2010
2011
2012
2013
2014
Return
on
Average
Net
Capital
Employed
(RANCE)
1.
Calculated based on average number of employees
2.
RANCE is defined as Pretax income for the year plus Interest expense and
related financing charges, multiplied by 1, minus our effective tax rate, and
the denominator is average net capital employed for the year. Net capital
employed is defined as Total assets minus Current liabilities plus Other long-
term liabilities.
1
1
2


30
Adjusted EBITDA Reconciliation
Three months
ended March
Year Ended December 31
($ millions)
2015
2014
2014
2013
2012
2011
2010
Net
income
$29.1
$ 23.5
$ 144.1
$ 152.1
$ 118.0
$ 29.0
$ (51.8)
Income tax
expense
13.1
13.2
81.8
84.8
63.7
26.8
(23.4)
Interest expense
14.6
15.1
61.8
60.7
112.5
136.8
139.6
Depreciation
and amortization
5.1
5.2
22.5
22.3
18.6
17.0
16.6
Amortization of
intangibles
15.9
15.7
67.8
52.1
49.5
50.7
53.9
Increase (decrease)
in LIFO reserve
(0.2)
1.3
11.9
(20.2)
(24.1)
73.7
74.6
Expenses associated with refinancing
-
-
-
5.1
1.7
9.5
-
Loss on early extinguishment of debt
-
-
-
-
114.0
-
-
Change in fair value of derivative instruments
0.7
3.6
1.1
(4.7)
(2.2)
(7.0)
4.9
Equity-based compensation expense
2.5
1.8
8.9
15.5
8.5
8.4
3.7
Inventory write-down
-
-
-
-
-
-
0.4
M&A transaction
& integration expenses
-
-
-
-
-
0.5
1.4
Severance & related costs
1.8
-
7.5
0.8
-
1.1
3.2
Loss on sale of Canadian progressive cavity pump
business
-
6.2
6.2
-
-
-
-
Loss on disposition of rolled and welded business
-
-
4.1
-
-
-
-
Cancellation of executive employment agreement (cash
portion)
-
-
3.2
-
-
-
-
Insurance charge
-
-
-
2.0
-
-
-
Foreign
currency losses (gains)
4.1
(1.6)
2.5
12.9
(0.8)
(0.6)
0.3
Pension settlement
-
-
-
-
4.4
-
-
Legal and consulting expenses
-
-
-
-
-
9.9
4.2
Provision for uncollectible accounts
-
-
-
-
-
0.4
(2.0)
Joint venture termination
-
-
-
-
-
1.7
-
Other expense
(income)
-
-
0.6
3.0
(0.6)
2.6
(1.4)
Adjusted EBITDA
86.7
$ 84.0
$ 424.0
$ 386.4
$ 463.2
$ 360.5
$ 224.2


31
Adjusted Gross
Profit Reconciliation
Three months
ended March 31
Year ended
December 31
($ millions)
2015
2014
2014
2013
2012
2011
2010
Gross
profit
$219.9
$ 232.1
$ 1,018.1
$ 954.8
$ 1,013.7
$ 708.2
$ 518.1
Depreciation and amortization
5.1
5.2
22.5
22.3
18.6
17.0
16.6
Amortization of intangibles
15.9
15.7
67.8
52.1
49.5
50.7
53.9
Increase (decrease) in LIFO reserve
(0.2)
1.3
11.9
(20.2)
(24.1)
73.7
74.6
Adjusted Gross Profit
$240.7
$254.3
$ 1,120.3
$ 1,009.0
$ 1,057.7
$ 849.6
$ 663.2