UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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| Item 7.01 | Regulation FD Disclosure. |
MRC Global Inc. (“MRC Global” or the “Company”) executive management will make presentations from time to time to current and potential investors, lenders, creditors, insurers, vendors, customers, employees and others with an interest in MRC Global and its business regarding, among other things, MRC Global’s operations and performance. A copy of the materials to be used at the presentations (the “Presentation Materials”) is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
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 conference presentation, dated May 26, 2022 | |
| 104 | Cover Page Interactive Data File – The cover page XBRL tags from this Current Report on Form 8-K are embedded within the Inline XBRL document. | |
INDEX TO EXHIBITS
| Exhibit No. |
Description | |
| 99.1 | Investor conference presentation, dated May 26, 2022 | |
| 104 | Cover Page Interactive Data File – The cover page XBRL tags from this Current Report on Form 8-K are embedded within the Inline XBRL document. | |
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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: May 26, 2022
| MRC GLOBAL INC. | ||
| By: | /s/ Kelly Youngblood | |
| Kelly Youngblood | ||
| Executive Vice President and Chief Financial Officer | ||
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Investor Presentation - 1Q 2022 Update May 26, 2022 Rob Saltiel President & CEO Kelly Youngblood Executive Vice President & CFO Exhibit 99.1
Forward Looking Statements 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,” “look forward,” “guidance,” “targeted”, “goals”, 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 sales, adjusted EBITDA, adjusted net income, adjusted diluted EPS, adjusted SG&A, gross profit, gross profit percentage, adjusted gross profit, adjusted gross profit percentage, net debt, tax rate, capital expenditures and cash from operations, free cash flow, free cash flow after dividends, 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, including the company’s Current Report on Form 8-K dated February 15, 2022. 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. In this presentation, the company is providing certain non-GAAP financial measures. These are not measures of financial performance calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and should not be considered as alternatives. The following GAAP measures have the following non-GAAP measures presented and derived from the respective GAAP measures: net income (adjusted EBITDA) net income margin (adjusted EBITDA margin) gross profit (adjusted gross profit) gross profit percentage (adjusted gross profit percentage) net income (adjusted net income) diluted earnings per share (adjusted diluted EPS) selling, general and administrative expense (adjusted SG&A) net cash provided by operations (free cash flow and free cash flow after dividends) long-term debt, net (net debt) They should be viewed in addition to, and not as a substitute for, analysis of our results reported in accordance with GAAP. Management believes that these non-GAAP financial measures provide investors a view to measures similar to those used in evaluating our compliance with certain financial covenants under our credit facilities and provide meaningful comparisons between current and prior year period results. They are also used as a metric to determine certain components of performance-based compensation. They are not necessarily indicative of future results of operations that may be obtained by the company.
MRC Global A Compelling Investment Opportunity Market leader in PVF distribution with 100+ year history Solid balance sheet and improving profitability Committed to ESG principles and sustainability 100+ YEARS Diversified portfolio with multiple levers for growth Technical and value-added supply-chain solutions
Global Footprint – Hub & Spoke Model Promotes Customer Service and Efficiency Delivering Solutions to Customers and Market Access to Suppliers 100+ 1Q22 Investor Presentation 83% United States 12% International 5% Canada Revenue by Region (TTM) Dubai, UAE Stavanger, NO Bradford, UK Rotterdam, NL EMEA Perth Singapore APAC Note: As of March 31, 2022 Global Footprint Regional Distribution Centers Valve & Engineering Centers Service Centers Headquarters Countries Employees 13 26 115 15 ~2,600 Nisku, AB Cheyenne, WY Bakersfield, CA Odessa, TX Houston, TX Munster, IN Pittsburgh, PA Valve Engineering & Modification Center North America
Diversified Portfolio - Revenue by End-Market Sector and Product Line Valve, Automation, Measurement & Instrumentation Carbon Steel Pipe, Fittings & Flanges Gas Products General Products Stainless Steel & Alloy Pipe, Fittings & Flanges Upstream Production Gas Utilities Downstream, Industrial & Energy Transition Midstream Pipeline TTM 1Q22 REVENUE BY PRODUCT LINE TTM 1Q22 REVENUE BY END-MARKET SECTOR 100+ 1Q22 Investor Presentation
Growth Drivers Attributes Multi-year growth from pipeline integrity projects, new installations & climate change considerations such as low-emissions valves Annual customer budget growth averages ~5-7% Valve Engineering & Modification Center drives market penetration Independent of commodity prices Contracts with the majority of the largest gas utilities in the U.S. Achieved $1 billion in revenue in 2021 (two years early) Gas Utilities – Underpinned by Secular Growth and Independent of Commodity Prices $ millions 38% of TTM 1Q22 Revenue $1,069 100+ 1Q22 Investor Presentation
Growth Drivers Attributes Increasing secular demand for plastics leading to petrochemical investments Valve-centric strategy and Downstream Center of Excellence targeting chemical & petrochemical industries Significant investments in energy transition & decarbonization projects as carbon reduction targets are prioritized Previously delayed turnaround activity resuming as pandemic restrictions ease Less commodity price dependent Recurring MRO revenue plus greenfield and upgrade projects Heavily valve-centric More specialty metal alloy requirements Downstream, Industrial & Energy Transition (DIET) – Multiple Growth Avenues 9% Chemicals 9% Refining 11% Industrial & Energy Transition 29% of TTM 1Q22 Revenue $ millions 100+ 1Q22 Investor Presentation
Massive Opportunity MRC Global Capabilities Well-Positioned for Growth in Global Energy Transition Provide Products & Services for Green Energy and Decarbonization Solutions Trillions of dollars to be spent through private investment and government stimulus Solutions include: Biofuels, offshore wind, geothermal, hydroelectric, carbon capture, utilization and storage (CCUS) and hydrogen Covers a broad set of global customers across all segments Greenfield projects, conversions and MRO activities Currently represents a small, but rapidly growing portion of MRC Global revenue & profit Backlog more than doubled in 1Q22 over 4Q21 Skills, Assets & Experience to Accelerate Growth Opportunities Existing energy customers pivoting portfolios toward green energy and decarbonization Global footprint to serve multinational customers Efficient and well-established supply chain network Deep knowledge of PVF products & value-added services Experience with multiple forms of green energy and CCUS projects Partnering in the Energy Transition 100+ 1Q22 Investor Presentation
Growth Drivers Attributes Global economic recovery, industrialization & population growth Capital budgets for well completions Increased oil and gas production in the U.S. and Europe to supplant Russian production Provide surface equipment for well hook-ups, flow lines & tank batteries Located in all major basins - revenue follows basin market activity levels Customer mix weighted to IOCs and large, public independents Upstream Production – Global Demand Driving Growth $ millions 21% of TTM 1Q22 Revenue 100+ 1Q22 Investor Presentation
Growth Drivers Attributes Modernization & replacement projects, production growth and hydrocarbon exports in the U.S. Valve Engineering & Modification Center drives market penetration Transmission and gathering customers Supply PVF “bulks & shorts” for transmission projects Provide staging and logistical services Midstream Pipeline – Infrastructure Modernization & Maintenance Driving Growth $ millions 12% of TTM 1Q22 Revenue 100+ 1Q22 Investor Presentation
Technical and Value-Added Supply-Chain Solutions Providing customers technical, engineered products and supply-chain solutions: Valve Engineering Centers (VEC) and Valve Engineering and Modification Center (VEMC) Actuation, modification, ValidTorqueTM Complete engineering documentation (CAD drawings) Testing services (e.g., hydrostatic testing, weld x-rays) Steam system surveys and audits On-site product assistance, training and demonstrations Quality Assurance Program – Approved Manufacturers List Qualification & Supplier Audits Integrated Supply Solutions – Complete inventory management services including warehouse and logistics solutions, stock replenishment and product rationalization 100+ 1Q22 Investor Presentation
($ millions) Working Capital Efficiency2 (Net working capital / TTM sales) Adjusted EBITDA & % Margin1 Improving Profitability See reconciliation of non-GAAP measures to GAAP measures in the appendix Working capital defined as Current Assets (excluding Cash) – Current Liabilities. Sales are on trailing twelve months basis.1Q 21 subtracts $105M from Current Liabilities for an estimated & accrued excess cash flow payment as of March 31, 2021. Actual payment was $86 million made April 30, 2021. Sales 100+ 1Q22 Investor Presentation 3.9% 6.5%
Leverage Ratio2 Liquidity3 ($ millions) Solid Balance Sheet & Financial Flexibility Net debt is total debt less cash. See reconciliation in appendix. Net leverage multiples represent net debt / trailing twelve months adjusted EBITDA. Cash plus excess availability under the Global ABL facility. Liquidity, pro forma for an excess cash flow payment of $86 million made April 30, 2021, was $441 million. Net Debt1 1Q 22 $ 272M 1Q 22 $545 1Q 214 $527 Debt Profile (as of March 31, 2022) Cash & Cash Equivalents $ 31 Debt (including current portion): Term Loan B due 2024 (net of discount & deferred financing costs) $ 297 Global ABL Facility due 2026 6 Total Debt $ 303 100+ 1Q22 Investor Presentation
Committed to ESG Principles and Sustainability Diversity & Inclusion 33% of Board of Directors from Diversity Groups 75% of Board leadership positions from Diversity Groups including the Chairman Women make up 55% of global corporate employees Social Responsibility Strong safety culture Top Quartile Safety Performance in 2020 National Association Wholesaler-Distributors Survey Supplier Quality Process (Processes, Policies & Audits) Environmental Pollution control for customers – Offer low-e valves reducing fugitive emissions, such as methane Reduced our North American Scope 1 emissions ~33% from 2018 to 2020 Continually improving impact by reducing transportation moves Governance Adopted SASB reporting standards Executive compensation tied to safety metric Board of Directors’ Governance Committee now known as Environmental, Social, Governance & Enterprise Risk Committee 100+ 1Q22 Investor Presentation ESG Developments Publishing our 5th ESG report in the first half of 2022 Designated a Vice President – ESG in 2021
MRC Global A Compelling Investment Opportunity Market leader in PVF distribution with 100+ year history Solid balance sheet and improving profitability Committed to ESG principles and sustainability 100+ YEARS Diversified portfolio with multiple levers for growth Technical and value-added supply-chain solutions
APPENDIX
Annual Financial Performance ($ millions, except per share data) See reconciliation of non-GAAP measures to GAAP measures in the appendix Y-o-Y Growth (6%) 13% (24%) (33%) 20% 14% (12%) (30%) 4% Y-o-Y Growth (17%) 10% (45%) (68%) 139% 56% (28%) (52%) 51% 8.3% 7.4% 7.1% 5.2% 2.5% 4.9% 6.7% 5.5% 3.8% 5.5% Y-o-Y Growth (5%) 11% (27%) (30%) 20% 20% (12%) (30%) 7% 19.0% 19.3% 18.9% 18.0% 18.7% 18.7% 19.6% 19.6% 19.7% 20.1% Y-o-Y Growth (22%) 13% (75%) NM NM NM (67%) NM NM ADJUSTED EBITDA & % MARGIN1 ADJUSTED DILUTED EPS1 SALES ADJUSTED GROSS PROFIT & % MARGIN1 APPENDIX 100+ 1Q22 Investor Presentation
Balance Sheet ($ millions) Net leverage multiples represent net debt / trailing twelve months adjusted EBITDA. Net debt is total debt less cash. Working capital defined as current assets (excluding cash) – current liabilities. Sales are on trailing twelve months basis. 2.6x 2.5x 3.4x 1.9x 4.0x 2.7x 2.3x 2.6x 2.7x 1.7x Net Leverage1: December 31, 2021 Cash and Cash Equivalents $ 48 Total Debt (including current portion): Term Loan B due 2024 (net of discount & deferred financing costs) $ 297 Global ABL Facility due 2026 - Total Debt $ 297 Preferred stock 355 Common stockholders’ equity 323 Total Capitalization $ 975 Liquidity $ 532 TOTAL DEBT CASH FLOW FROM OPERATIONS CAPITAL STRUCTURE NET WORKING CAPITAL AS % OF SALES2 APPENDIX 100+ 1Q22 Investor Presentation
YEAR ENDED DECEMBER 31 ($ millions) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Amount % of Sales Amount % of Sales Amount % of Sales Amount % of Sales Amount % of Sales Amount % of Sales Amount % of Sales Amount % of Sales Amount % of Sales Amount % of Sales Sales $2,666 $2,560 $3,662 $4,172 $3,646 $3,041 $4,529 $5,933 $5,231 $5,571 Gross profit $ 417 15.6% $ 431 16.8% $ 653 17.8% $ 689 16.5% $ 582 16.0% $ 468 15.4% $ 786 17.4% $ 1,018 17.2% $ 955 18.3% $ 1,014 18.2% Depreciation and amortization 19 20 21 23 22 22 21 22 22 19 Amortization of intangibles 24 26 42 45 45 47 60 68 52 49 Increase (decrease) in LIFO reserve 77 (19) (2) 62 28 (14) (53) 12 (20) (24) Inventory charges and other - 46 5 - 6 45 - - - - Adjusted Gross Profit $ 537 20.1% $ 504 19.7% $ 719 19.6% $ 819 19.6% $ 683 18.7% $ 568 18.7% $ 814 18.0% $ 1,120 18.9% $ 1,009 19.3% $ 1,058 19.0% Note: Adjusted gross profit is a non-GAAP measure. For a discussion of the use of adjusted gross profit, see our Current Report on Form 8-K dated May 9, 2022. APPENDIX Adjusted Gross Profit Reconciliation 100+ 1Q22 Investor Presentation
Note: Adjusted EBITDA is a non-GAAP measure. For a discussion of the use of adjusted EBITDA, see our Current Report on Form 8-K dated May 9, 2022. Adjusted EBITDA Reconciliation - Quarters APPENDIX 100+ 1Q22 Investor Presentation THREE MONTHS ENDED ($ millions) March 31, 2022 March 31, 2021 Amount % of Sales Amount % of Sales Sales $ 742 $ 609 Net income (loss) $ 16 2.2% $ (3) (0.5%) Income tax expense (benefit) 7 - Interest expense 6 6 Depreciation and amortization 5 5 Amortization of intangibles 5 6 Increase in LIFO reserve 6 4 Equity-based compensation expense 3 5 Employee separation - 1 Adjusted EBITDA $ 48 6.5% $ 24 3.9%
YEAR ENDED DECEMBER 31 YEAR ENDED DECEMBER 31 ($ millions) 2021 2020 2019 2018 2017 Amount % of Sales Amount % of Sales Amount % of Sales Amount % of Sales Amount % of Sales Sales $ 2,666 $2,560 $3,662 $4,172 $3,646 Net (loss) income $ (14) (0.05)% $ (274) (10.7%) $ 39 1.1% $ 74 1.8% $ 50 1.4% Income tax (benefit) expense - (9) 27 21 (43) Interest expense 23 28 40 38 31 Depreciation and amortization 19 20 21 23 22 Amortization of intangibles 24 26 42 45 45 Increase (decrease) in LIFO reserve 77 (19) (2) 62 28 Equity-based compensation expense 12 12 16 14 16 Foreign currency losses (gains) 2 2 (1) (1) (2) Employee separation 1 - - -- Inventory-related charges - 46 5 - 6 Facility closures 1 17 - - - Goodwill & intangible asset impairment - 242 - - - Severance & restructuring charges 1 14 9 4 14 Gain on sale of leaseback - (5) - - - Recovery of supplier bad debt & Supplier bad debt - (2) 5 - - (Gain) loss on early extinguishment of debt - (1) - - - Write off of debt issuance costs - - - 1 8 Litigation matter - - - - 3 Change in fair value of derivative instruments - - - (1) 1 Adjusted EBITDA $ 146 5.5% $ 97 3.8% $ 201 5.5% $ 280 6.7% $ 179 4.9% Note: Adjusted EBITDA is a non-GAAP measure. For a discussion of the use of adjusted EBITDA, see our Current Report on Form 8-K dated May 9, 2022. Adjusted EBITDA Reconciliation – Annual Periods APPENDIX 100+ 1Q22 Investor Presentation
YEAR ENDED DECEMBER 31 YEAR ENDED DECEMBER 31 ($ millions) 2016 2015 2014 2013 2012 Amount % of Sales Amount % of Sales Amount % of Sales Amount % of Sales Amount % of Sales Sales $3,041 $4,529 $5,933 $5,231 $5,571 Net (loss) income $ (83) (2.7%) $ (331) (7.3%) $ 144 2.4% $ 152 2.9% $ 118 2.1% Income tax (benefit) expense (8) (11) 82 85 64 Interest expense 35 48 62 61 113 Depreciation and amortization 22 21 22 22 19 Amortization of intangibles 47 60 68 52 49 (Decrease) increase in LIFO reserve (14) (53) 12 (20) (24) Equity-based compensation expense 12 10 9 15 8 Foreign currency losses (gains) 4 3 3 13 (1) Goodwill & intangible asset impairment - 462 - - - Inventory-related charges 40 - - - - Severance & restructuring charges 20 14 8 1 - Loss on early extinguishment of debt - - - - 114 Write off of debt issuance costs 1 3 - - - Litigation matter - 3 - - - Change in fair value of derivative instruments (1) 1 1 (5) (2) Loss on disposition of non-core product line - 5 10 - - Insurance charge - - - 2 - Cancellation of executive employment agreement (cash portion) - - 3 - - Expenses associated with refinancing - - - 5 2 Pension settlement - - - - 4 Other expense (income) - - - 3 (1) Adjusted EBITDA $ 75 2.5% $ 235 5.2% $ 424 7.1% $ 386 7.4% $ 463 8.3% Note: Adjusted EBITDA is a non-GAAP measure. For a discussion of the use of adjusted EBITDA, see our Current Report on Form 8-K dated May 9, 2022. Adjusted EBITDA Reconciliation – Annual Periods APPENDIX 100+ 1Q22 Investor Presentation
YEAR ENDED DECEMBER 31 YEAR ENDED DECEMBER 31 ($ millions) 2021 2020 2019 2018 2017 Amount Per Share Amount Per Share Amount Per Share Amount Per Share Amount Per Share Net income (loss) attributable to common stockholders $ (38) $ (0.46) $ (298) $ (3.63) $ 15 $ 0.18 $ 50 $ 0.54 $ 26 $ 0.27 Goodwill and intangible asset impairment, net of tax - - 234 2.85 - - - - - - Inventory-related charges, net of tax - - 38 0.46 5 0.06 - - 6 0.06 Severance and restructuring, net of tax 1 0.01 12 0.15 7 0.08 3 0.03 14 0.15 Recovery of supplier bad debt and supplier bad debt, net of tax - - (2) (0.02) 5 0.06 - - - - Increase (decrease) in LIFO reserve, net of tax 58 0.71 (15) (0.18) (2) (0.02) 48 0.52 18 0.19 Facility closures, net of tax 1 0.01 15 0.18 - - - - - - Gain on sale leaseback - - (4) (0.05) - - - - - - Litigation matter, net of tax - - - - - - - - 2 0.02 Write-off of debt issuance costs, net of tax - - - - - - 1 0.01 5 0.05 Income tax adjustment - - - - - - - - (50) (0.52) Adjusted net income (loss) attributable to common stockholders $ 22 $ 0.27 $ (20) $ (0.24) $ 30 $ 0.36 $ 102 $ 1.10 $ 21 $ 0.22 Note: Adjusted net income is a non-GAAP measure. For a discussion of the use of adjusted net income, see our Current Report on Form 8-K dated May 9, 2022. Adjusted Net Income (Loss) Reconciliation – Annual Periods APPENDIX 100+ 1Q22 Investor Presentation
YEAR ENDED DECEMBER 31 ($ millions) 2016 2015 2014 2013 2012 Amount Per Share Amount Per Share Amount Per Share Amount Per Share Amount Per Share Net (loss) income attributable to common stockholders $ (107) $ (1.10) $ (344) $ (3.38) $ 144 $ 1.40 $ 152 $ 1.48 $ 118 $ 1.22 Goodwill and intangible asset impairment, net of tax - - 402 3.94 - - - - - - Inventory-related charges, net of tax 33 0.34 - - - - - - - - Severance and restructuring, net of tax 17 0.17 11 0.11 6 0.06 - - - - (Decrease) increase in LIFO reserve, net of tax (9) (0.09) (33) (0.32) 8 0.08 (13) (0.13) (15) (0.15) Loss on early extinguishment of debt, net of tax - - - - - - - - 74 0.76 Litigation matter, net of tax - - 2 0.02 - - - - - - Write-off of debt issuance costs, net of tax 1 0.01 2 0.02 - - - - 1 0.01 Executive separation expense, net of tax - - - - - - 1 0.01 - - Loss on disposition of non-core product lines, net of tax - - 3 0.03 8 0.08 - - - - Insurance charge, net of tax - - - - - - 1 0.01 - - Expenses associated with refinancing, net of tax - - - - - - 3 0.03 - - Equity-based compensation acceleration, net of tax - - - - - - 3 0.03 - - Income tax adjustment - - - - - - 3 0.03 - - Cancellation of executive employment agreement, net of tax - - - - 3 0.03 - - - - Pension settlement, net of tax - - - - - - - - 3 0.03 Adjusted net (loss) income attributable to common stockholders $ (65) $ (0.67) $ 43 $ 0.42 $ 169 $ 1.65 $ 150 $ 1.46 $ 181 $ 1.87 Note: Adjusted net income is a non-GAAP measure. For a discussion of the use of adjusted net income, see our Current Report on Form 8-K dated May 9, 2022. Adjusted Net Income (Loss) Reconciliation – Annual Periods APPENDIX 100+ 1Q22 Investor Presentation
Note: Net debt and leverage ratio may be non-GAAP measures. For a discussion of the use of net debt, see our Current Report on Form 8-K dated April 9, 2022. Net Debt & Leverage Ratio Calculation APPENDIX 100+ 1Q22 Investor Presentation ($ millions) March 31, 2022 December 31, 2021 Long-term debt, net $ 300 $ 295 Plus: current portion of long-term debt 3 2 Long-term debt $ 303 297 Less: cash 31 48 Net debt $ 272 $ 249 Net debt $ 272 $ 249 Trailing twelve months adjusted EBITDA 170 146 Leverage ratio 1.6 1.7