FISCAL 2024 Q3 HIGHLIGHTS
- Net sales of $979.4 million
decreased 7.1% YoY and includes a roughly 300 basis point headwind
from non-repeating Public Sector orders in the prior year
- Operating income of $106.8
million, or $111.5 million
adjusted to exclude restructuring and other costs1
- Operating margin of 10.9%, or 11.4% excluding the adjustments
described above1
- Diluted EPS of $1.27 vs.
$1.69 in the prior fiscal year
quarter
- Adjusted diluted EPS of $1.33 vs.
$1.74 in the prior fiscal year
quarter1
MELVILLE, N.Y. and DAVIDSON, N.C., July 2, 2024
/PRNewswire/ -- MSC INDUSTRIAL SUPPLY CO. (NYSE: MSM),
"MSC," "MSC Industrial" or the "Company," a leading North American
distributor of a broad range of metalworking and maintenance,
repair and operations (MRO) products and services, today reported
financial results for its fiscal 2024 third quarter ended
June 1, 2024.
|
Financial Highlights
2
|
|
FY24
Q3
|
|
FY23
Q3
|
|
Change
|
|
FY24
YTD
|
|
FY23
YTD
|
|
Change
|
|
Net Sales
|
|
$
979.4
|
|
$ 1,054.5
|
|
(7.1) %
|
|
$ 2,868.7
|
|
$ 2,973.8
|
|
(3.5) %
|
|
Income from
Operations
|
|
$
106.8
|
|
$
135.4
|
|
(21.1) %
|
|
$
299.5
|
|
$
365.7
|
|
(18.1) %
|
|
Operating
Margin
|
|
10.9 %
|
|
12.8 %
|
|
|
|
10.4 %
|
|
12.3 %
|
|
|
|
Net Income Attributable
to MSC
|
|
$
71.7
|
|
$
95.2
|
|
(24.7) %
|
|
$
202.9
|
|
$
255.6
|
|
(20.6) %
|
|
Diluted EPS
|
|
$
1.27
|
3
|
$
1.69
|
4
|
(24.9) %
|
|
$
3.59
|
3
|
$
4.56
|
4
|
(21.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial
Highlights 2
|
|
FY24
Q3
|
|
FY23
Q3
|
|
Change
|
|
FY24
YTD
|
|
FY23
YTD
|
|
Change
|
|
Net Sales
|
|
$
979.4
|
|
$ 1,054.5
|
|
(7.1) %
|
|
$ 2,868.7
|
|
$ 2,973.8
|
|
(3.5) %
|
|
Adjusted Income from
Operations 1
|
|
$
111.5
|
|
$
138.6
|
|
(19.6) %
|
|
$
313.0
|
|
$
374.0
|
|
(16.3) %
|
|
Adjusted Operating
Margin 1
|
|
11.4 %
|
|
13.1 %
|
|
|
|
10.9 %
|
|
12.6 %
|
|
|
|
Adjusted Net Income
Attributable to MSC 1
|
|
$
75.2
|
|
$
97.5
|
|
(22.9) %
|
|
$
213.2
|
|
$
261.9
|
|
(18.6) %
|
|
Adjusted Diluted EPS
1
|
|
$
1.33
|
3
|
$
1.74
|
4
|
(23.6) %
|
|
$
3.77
|
3
|
$
4.67
|
4
|
(19.3) %
|
|
|
1
Represents a non-GAAP financial measure.
An explanation and a reconciliation of each non-GAAP financial
measure to the most directly comparable GAAP financial measure are
presented in the schedules accompanying this press
release.
|
|
2
In millions except percentages and per
share data or as otherwise noted.
|
|
3
Based on 56.4 million and 56.5 million
weighted-average diluted shares outstanding for FY24 Q3 and FY24
YTD, respectively.
|
|
4
Based on 56.2 million and 56.1 million
weighted-average diluted shares outstanding for FY23 Q3 and FY23
YTD, respectively.
|
Erik Gershwind, President and Chief Executive Officer,
said, "As announced on June
13th, we began the second half of our fiscal year
with unexpected gross margin pressure and a slower than expected
recovery in average daily sales, particularly within our Core
customer base. As a result, our third quarter performance was below
expectations and led to a revised full year outlook. We responded
with swift corrective actions to improve gross margin trending and
accelerate progress on the rollout of our web
enhancements."
Kristen Actis-Grande, Executive
Vice President and Chief Financial Officer, added, "Average daily
sales declined 7.1% in the fiscal third quarter driven by
non-repeating Public Sector orders in the prior year and softness
in manufacturing verticals where we have heavy exposure. While we
are encouraged by continued strong cash flow generation, these
results nonetheless fell below our expectations. We are laser
focused on realizing the expected benefits of our organic growth
investments to drive progress towards our long-term
targets."
Gershwind concluded, "Looking forward, as our corrective actions
take hold, we will remain steadfast in our approach to unlocking
the value creation potential of MSC. We are doing this by leaning
into the core pillars of our Mission Critical initiatives —
Maintaining Momentum, Reenergizing the Core Customer, and
Optimizing Cost to Serve. While results to date in fiscal 2024 are
not up to our standards, we are confident we have the talent and
strategy in place to achieve our long-term goals and create
meaningful value for all stakeholders."
|
Fiscal 2024 Full
Year Financial Outlook
|
|
Current
|
Prior
|
|
ADS Growth
(YoY)
|
(4.7)% -
(4.3)%
|
0% - 5%
|
|
Adjusted Operating
Margin1
|
10.5% -
10.7%
|
12.0% -
12.8%
|
|
Depreciation and
Amortization Expense
|
~$80M
|
~$85M
|
|
Interest and Other
Expense
|
~$45M
|
$40M - $50M
|
|
Operating Cash Flow
Conversion2
|
>125%
|
>125%
|
|
Tax Rate
|
24.0% -
24.5%
|
24.0% -
24.5%
|
|
|
|
(1)
|
Guidance provided is a
non-GAAP figure presented on an adjusted basis. For further details
see the Non-GAAP financial measures information presented in the
schedules accompanying this press release.
|
|
(2)
|
The Company defines
Operating Cash Flow Conversion as Net cash provided by operating
activities as a percentage of Net income. The Company's management
uses Operating Cash Flow Conversion to evaluate the Company's
operating performance, in particular how efficiently the Company
turns its sales and profits into cash, and to assess the efficiency
of the Company's use of working capital. The Company believes
Operating Cash Flow Conversion is useful to investors for the
foregoing reasons and as a measure of the rate at which the Company
converts its net income reported in accordance with GAAP to cash
inflows, which helps investors assess whether the Company is
generating sufficient cash flow to provide an adequate
return.
|
Conference Call Information
MSC will host a conference
call today at 8:30 a.m. EDT to review
the Company's fiscal 2024 third quarter results. The call,
accompanying slides, and other operational statistics may be
accessed at: https://investor.mscdirect.com. The conference call
may also be accessed at 1-877-443-5575 (U.S.), 1-855-669-9657
(Canada) or 1-412-902-6618
(international).
An online archive of the broadcast will be available until
July 16, 2024. The Company's
reporting date for its fiscal 2024 fourth quarter and full year
results is scheduled for October 24,
2024.
|
Contact
Information
|
|
|
Investors:
|
Media:
|
|
Ryan Mills,
CFA
|
Zivanai
Mutize
|
|
Head of Investor
Relations
|
Head of Corporate
Communications
|
|
rmills@mscdirect.com
|
zivanai.mutize@mscdirect.com
|
About MSC Industrial Supply Co.
MSC
Industrial Supply Co. (NYSE:MSM) is a leading North American
distributor of a broad range of metalworking and maintenance,
repair and operations (MRO) products and services. We help our
customers drive greater productivity, profitability and growth with
approximately 2.4 million products, inventory management and
other supply chain solutions, and deep expertise from more than 80
years of working with customers across industries. Our experienced
team of more than 7,000 associates works with our customers to help
drive results for their businesses - from keeping operations
running efficiently today to continuously rethinking, retooling and
optimizing for a more productive tomorrow. For more information on
MSC Industrial, please visit mscdirect.com.
Cautionary Note Regarding Forward-Looking
Statements
Statements in this press release may constitute
"forward-looking statements" under the Private Securities
Litigation Reform Act of 1995. All statements, other than
statements of present or historical fact, that address activities,
events or developments that we expect, believe or anticipate will
or may occur in the future, including statements about results of
operations and financial condition, expected future results,
expected benefits from our investment and strategic plans and other
initiatives, and expected future growth, profitability and return
on invested capital, are forward-looking statements. The words
"will," "may," "believes," "anticipates," "thinks," "expects,"
"estimates," "plans," "intends" and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from those anticipated by these
forward-looking statements. In addition, statements which refer to
expectations, projections or other characterizations of future
events or circumstances, statements involving a discussion of
strategy, plans or intentions, statements about management's
assumptions, projections or predictions of future events or market
outlook and any other statement other than a statement of present
or historical fact are forward-looking statements. The inclusion of
any statement in this press release does not constitute an
admission by MSC or any other person that the events or
circumstances described in such statement are material. In
addition, new risks may emerge from time to time and it is not
possible for management to predict such risks or to assess the
impact of such risks on our business or financial results.
Accordingly, future results may differ materially from historical
results or from those discussed or implied by these forward-looking
statements. Given these risks and uncertainties, the reader should
not place undue reliance on these forward-looking statements. These
risks and uncertainties include, but are not limited to, the
following: general economic conditions in the markets in which we
operate; changing customer and product mixes; volatility in
commodity and energy prices, the impact of prolonged periods of
low, high or rapid inflation, and fluctuations in interest rates;
competition, including the adoption by competitors of aggressive
pricing strategies or sales methods; industry consolidation and
other changes in the industrial distribution sector; our ability to
realize the expected benefits from our investment and strategic
plans; our ability to realize the expected cost savings and
benefits from our restructuring activities and structural cost
reductions; the retention of key management personnel; the credit
risk of our customers; the risk of customer cancellation or
rescheduling of orders; difficulties in calibrating customer demand
for our products, which could cause an inability to sell excess
products ordered from manufacturers resulting in inventory
write-downs or could conversely cause inventory shortages of such
products; work stoppages, labor shortages or other disruptions,
including those due to extreme weather conditions, at
transportation centers, shipping ports, our headquarters or our
customer fulfillment centers; disruptions or breaches of our
information technology systems or violations of data privacy laws;
our ability to attract, train and retain qualified sales and
customer service personnel and metalworking and specialty sales
specialists; the risk of loss of key suppliers or contractors or
key brands or supply chain disruptions; changes to governmental
trade or sanctions policies, including the impact from significant
import restrictions or tariffs or moratoriums on economic activity
with certain countries or regions; risks related to opening or
expanding our customer fulfillment centers; our ability to estimate
the cost of healthcare claims incurred under our self-insurance
plan; litigation risk due to the nature of our business; risks
associated with the integration of acquired businesses or other
strategic transactions; financial restrictions on outstanding
borrowings; our ability to maintain our credit facilities or incur
additional borrowings on terms we deem attractive; the failure to
comply with applicable environmental, health and safety laws and
regulations and other laws and regulations applicable to our
business; the outcome of government or regulatory proceedings;
goodwill and other indefinite-lived intangible assets recorded as a
result of our acquisitions could become impaired; our common stock
price may be volatile due to factors outside of our control; the
significant influence that our principal shareholders will continue
to have over our decisions; and our ability to realize the desired
benefits from the share reclassification. Additional information
concerning these and other risks is described under "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" in our Annual and Quarterly Reports on
Forms 10-K and 10-Q, respectively, and in the other reports and
documents that we file with the United States Securities and
Exchange Commission. We expressly disclaim any obligation to update
any of these forward-looking statements, except to the extent
required by applicable law.
|
MSC INDUSTRIAL
DIRECT CO., INC.
Condensed
Consolidated Balance Sheets
(In
thousands)
|
|
|
June 1,
2024
|
|
September 2,
2023
|
|
ASSETS
|
(Unaudited)
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
25,928
|
|
$
50,052
|
|
Accounts receivable, net of
allowance for credit losses
|
419,810
|
|
435,421
|
|
Inventories
|
665,638
|
|
726,521
|
|
Prepaid expenses and other
current assets
|
101,472
|
|
105,519
|
|
Total current assets
|
1,212,848
|
|
1,317,513
|
|
Property, plant and
equipment, net
|
344,787
|
|
319,660
|
|
Goodwill
|
721,932
|
|
718,174
|
|
Identifiable
intangibles, net
|
102,854
|
|
110,641
|
|
Operating lease
assets
|
60,878
|
|
65,909
|
|
Other assets
|
24,495
|
|
12,237
|
|
Total assets
|
$
2,467,794
|
|
$
2,544,134
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Current portion of
debt including obligations under finance leases
|
$
206,335
|
|
$
229,935
|
|
Current portion of
operating lease liabilities
|
22,235
|
|
21,168
|
|
Accounts
payable
|
205,644
|
|
226,299
|
|
Accrued expenses and
other current liabilities
|
149,298
|
|
172,034
|
|
Total current
liabilities
|
583,512
|
|
649,436
|
|
Long-term debt
including obligations under finance leases
|
299,812
|
|
224,391
|
|
Noncurrent operating
lease liabilities
|
39,532
|
|
45,924
|
|
Deferred income taxes
and tax uncertainties
|
130,729
|
|
131,801
|
|
Total
liabilities
|
1,053,585
|
|
1,051,552
|
|
Commitments and
Contingencies
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
Preferred Stock
|
—
|
|
—
|
|
Class A Common
Stock
|
57
|
|
48
|
|
Class B Common
Stock
|
—
|
|
9
|
|
Additional paid-in
capital
|
1,063,738
|
|
849,502
|
|
Retained earnings
|
470,085
|
|
755,007
|
|
Accumulated other
comprehensive loss
|
(17,553)
|
|
(17,725)
|
|
Class A treasury stock, at
cost
|
(114,711)
|
|
(107,677)
|
|
Total MSC Industrial shareholders' equity
|
1,401,616
|
|
1,479,164
|
|
Noncontrolling
interest
|
12,593
|
|
13,418
|
|
Total shareholders' equity
|
1,414,209
|
|
1,492,582
|
|
Total liabilities and shareholders' equity
|
$
2,467,794
|
|
$
2,544,134
|
|
MSC INDUSTRIAL
DIRECT CO., INC.
Condensed
Consolidated Statements of Income
(In thousands,
except per share data)
(Unaudited)
|
|
|
Thirteen Weeks
Ended
|
|
Thirty-Nine Weeks
Ended
|
|
June 1,
2024
|
|
June 3,
2023
|
|
June 1,
2024
|
|
June 3,
2023
|
|
Net sales
|
$
979,350
|
|
$
1,054,464
|
|
$
2,868,667
|
|
$
2,973,841
|
|
Cost of goods
sold
|
578,903
|
|
625,527
|
|
1,686,492
|
|
1,750,410
|
|
Gross
profit
|
400,447
|
|
428,937
|
|
1,182,175
|
|
1,223,431
|
|
Operating
expenses
|
288,991
|
|
291,706
|
|
870,859
|
|
852,031
|
|
Restructuring and other
costs
|
4,690
|
|
1,845
|
|
11,787
|
|
5,722
|
|
Income from
operations
|
106,766
|
|
135,386
|
|
299,529
|
|
365,678
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense
|
(6,884)
|
|
(5,038)
|
|
(19,155)
|
|
(17,913)
|
|
Interest
income
|
134
|
|
513
|
|
302
|
|
764
|
|
Other expense,
net
|
(4,680)
|
|
(4,456)
|
|
(14,067)
|
|
(8,095)
|
|
Total other
expense
|
(11,430)
|
|
(8,981)
|
|
(32,920)
|
|
(25,244)
|
|
Income before
provision for income taxes
|
95,336
|
|
126,405
|
|
266,609
|
|
340,434
|
|
Provision for income
taxes
|
24,024
|
|
31,266
|
|
64,604
|
|
84,768
|
|
Net
income
|
71,312
|
|
95,139
|
|
202,005
|
|
255,666
|
|
Less: Net (loss) income
attributable to noncontrolling interest
|
(393)
|
|
(41)
|
|
(897)
|
|
32
|
|
Net income
attributable to MSC Industrial
|
$
71,705
|
|
$
95,180
|
|
$
202,902
|
|
$
255,634
|
|
Per share data
attributable to MSC Industrial:
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
1.28
|
|
$
1.70
|
|
$
3.60
|
|
$
4.57
|
|
Diluted
|
$
1.27
|
|
$
1.69
|
|
$
3.59
|
|
$
4.56
|
|
Weighted-average shares used
in computing
net income per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
56,214
|
|
55,963
|
|
56,323
|
|
55,911
|
|
Diluted
|
56,351
|
|
56,156
|
|
56,514
|
|
56,121
|
|
MSC INDUSTRIAL
DIRECT CO., INC.
Condensed
Consolidated Statements of Comprehensive Income
(In
thousands)
(Unaudited)
|
|
|
Thirteen Weeks
Ended
|
|
Thirty-Nine Weeks
Ended
|
|
June 1,
2024
|
|
June 3,
2023
|
|
June 1,
2024
|
|
June 3,
2023
|
|
Net income, as
reported
|
$
71,312
|
|
$
95,139
|
|
$
202,005
|
|
$
255,666
|
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustments
|
(217)
|
|
2,474
|
|
244
|
|
6,293
|
|
Comprehensive
income
|
71,095
|
|
97,613
|
|
202,249
|
|
261,959
|
|
Comprehensive income
attributable to noncontrolling interest:
|
|
|
|
|
|
|
|
|
Net loss (income)
|
393
|
|
41
|
|
897
|
|
(32)
|
|
Foreign currency translation
adjustments
|
4
|
|
(270)
|
|
(72)
|
|
(1,405)
|
|
Comprehensive income
attributable to MSC Industrial
|
$
71,492
|
|
$
97,384
|
|
$
203,074
|
|
$
260,522
|
|
MSC INDUSTRIAL
DIRECT CO., INC.
Condensed
Consolidated Statements of Cash Flows
(In
thousands)(Unaudited)
|
|
|
Thirty-Nine Weeks
Ended
|
|
June 1,
2024
|
|
June 3,
2023
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net income
|
$
202,005
|
|
$
255,666
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
60,288
|
|
56,122
|
|
Amortization of cloud
computing arrangements
|
1,437
|
|
784
|
|
Non-cash operating
lease cost
|
16,679
|
|
14,831
|
|
Stock-based
compensation
|
13,347
|
|
14,624
|
|
Loss on disposal of
property, plant and equipment
|
363
|
|
481
|
|
Non-cash changes in
fair value of estimated contingent consideration
|
661
|
|
—
|
|
Provision for credit
losses
|
5,180
|
|
6,826
|
|
Expenditures for cloud
computing arrangements
|
(17,161)
|
|
(1,146)
|
|
Deferred income taxes
and tax uncertainties
|
(1,072)
|
|
(915)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
12,586
|
|
247,557
|
|
Inventories
|
64,251
|
|
(6,255)
|
|
Prepaid expenses and
other current assets
|
4,488
|
|
5,917
|
|
Operating lease
liabilities
|
(16,974)
|
|
(14,845)
|
|
Other
assets
|
3,272
|
|
(211)
|
|
Accounts payable and
accrued liabilities
|
(45,917)
|
|
(12,359)
|
|
Total
adjustments
|
101,428
|
|
311,411
|
|
Net cash provided by
operating activities
|
303,433
|
|
567,077
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Expenditures for
property, plant and equipment
|
(73,354)
|
|
(64,113)
|
|
Cash used in
acquisitions, net of cash acquired
|
(9,859)
|
|
(20,182)
|
|
Net cash used in
investing activities
|
(83,213)
|
|
(84,295)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Repurchases of Class A
Common Stock
|
(167,166)
|
|
(31,072)
|
|
Payments of regular
cash dividends
|
(140,695)
|
|
(132,484)
|
|
Proceeds from sale of
Class A Common Stock in connection with Associate Stock Purchase
Plan
|
3,465
|
|
3,449
|
|
Proceeds from exercise
of Class A Common Stock options
|
8,833
|
|
22,635
|
|
Borrowings under
credit facilities
|
359,000
|
|
208,000
|
|
Payments under credit
facilities
|
(309,000)
|
|
(488,000)
|
|
Borrowings under
financing obligations
|
3,850
|
|
1,061
|
|
Payments under Shelf
Facility Agreements and Private Placement Debt
|
(50,000)
|
|
(50,000)
|
|
Proceeds from other
long-term debt
|
50,000
|
|
—
|
|
Other, net
|
(2,762)
|
|
(1,676)
|
|
Net cash used in
financing activities
|
(244,475)
|
|
(468,087)
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
131
|
|
196
|
|
Net (decrease) increase
in cash and cash equivalents
|
(24,124)
|
|
14,891
|
|
Cash and cash
equivalents—beginning of period
|
50,052
|
|
43,537
|
|
Cash and cash
equivalents—end of period
|
$
25,928
|
|
$
58,428
|
|
|
|
|
|
Supplemental Disclosure
of Cash Flow Information:
|
|
|
|
|
Cash paid for income
taxes
|
$
66,071
|
|
$
85,525
|
|
Cash paid for
interest
|
$
18,235
|
|
$
16,970
|
Non-GAAP Financial Measures
To supplement MSC's unaudited selected financial data presented
consistent with accounting principles generally accepted in
the United States ("GAAP"), the
Company discloses certain non-GAAP financial measures, including
non-GAAP income from operations, non-GAAP operating margin,
non-GAAP provision for income taxes, non-GAAP net income and
non-GAAP diluted earnings per share, that exclude restructuring and
other costs, acquisition-related costs, share reclassification
costs, and tax effects.
These non-GAAP financial measures are not presented in
accordance with GAAP or an alternative for GAAP financial measures
and may be different from similar non-GAAP financial measures used
by other companies. The presentation of this additional information
is not meant to be considered in isolation or as a substitute for
the most directly comparable GAAP financial measure and should only
be used to evaluate MSC's results of operations in conjunction with
the corresponding GAAP financial measure.
This press release also includes certain forward-looking
information that is not presented in accordance with GAAP. The
Company believes that a quantitative reconciliation of such
forward-looking information to the most directly comparable
financial measure calculated and presented in accordance with GAAP
cannot be made available without unreasonable efforts because a
reconciliation of these non-GAAP financial measures would require
the Company to predict the timing and likelihood of potential
future events such as restructurings, M&A activity and other
infrequent or unusual gains and losses. Neither the timing or
likelihood of these events, nor their probable significance, can be
quantified with a reasonable degree of accuracy. Accordingly, a
reconciliation of such forward-looking information to the most
directly comparable GAAP financial measure is not provided.
- Results Excluding Restructuring and Other Costs,
Acquisition-Related Costs and Share Reclassification
Costs
In calculating non-GAAP financial measures, we exclude
restructuring and other costs, acquisition-related costs and share
reclassification costs, and tax effects. Management makes these
adjustments to facilitate a review of the Company's operating
performance on a comparable basis between periods, for comparing
with forecasts and strategic plans, for identifying and analyzing
trends in the Company's underlying business and for benchmarking
performance externally against competitors. We believe that
investors benefit from seeing results from the perspective of
management in addition to seeing results presented in accordance
with GAAP for the same reasons and purposes for which management
uses such non-GAAP financial measures.
|
MSC INDUSTRIAL DIRECT
CO., INC.
|
|
Reconciliation of GAAP
and Non-GAAP Financial Information
|
|
Thirteen Weeks Ended
June 1, 2024
|
|
(In thousands, except
percentages and per share data)
|
|
|
|
|
|
|
|
GAAP Financial
Measure
|
|
Items Affecting
Comparability
|
Non-GAAP
Financial Measure
|
|
Total MSC
Industrial
|
|
Restructuring and
Other Costs
|
|
Adjusted Total
MSC Industrial
|
|
Net Sales
|
$
979,350
|
|
$
—
|
|
$
979,350
|
|
|
|
|
|
|
|
Cost of Goods
Sold
|
578,903
|
|
—
|
|
578,903
|
|
|
|
|
|
|
|
Gross Profit
|
400,447
|
|
—
|
|
400,447
|
|
Gross Margin
|
40.9 %
|
|
— %
|
|
40.9 %
|
|
|
|
|
|
|
|
Operating
Expenses
|
288,991
|
|
—
|
|
288,991
|
|
Operating Exp as % of
Sales
|
29.5 %
|
|
— %
|
|
29.5 %
|
|
|
|
|
|
|
|
Restructuring and Other
Costs
|
4,690
|
|
4,690
|
|
—
|
|
|
|
|
|
|
|
Income from
Operations
|
106,766
|
|
(4,690)
|
|
111,456
|
|
Operating
Margin
|
10.9 %
|
|
0.5 %
|
|
11.4 %
|
|
|
|
|
|
|
|
Total Other
Expense
|
(11,430)
|
|
—
|
|
(11,430)
|
|
|
|
|
|
|
|
Income before provision
for income taxes
|
95,336
|
|
(4,690)
|
|
100,026
|
|
|
|
|
|
|
|
Provision for income
taxes
|
24,024
|
|
(1,183)
|
|
25,207
|
|
Net income
|
71,312
|
|
(3,507)
|
|
74,819
|
|
Net loss attributable
to noncontrolling interest
|
(393)
|
|
—
|
|
(393)
|
|
Net income attributable
to MSC Industrial
|
$
71,705
|
|
$
(3,507)
|
|
$
75,212
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
Diluted
|
$
1.27
|
|
$
(0.06)
|
|
$
1.33
|
|
|
*Individual amounts may
not agree to the total due to rounding.
|
|
MSC INDUSTRIAL DIRECT
CO., INC.
|
|
Reconciliation of GAAP
and Non-GAAP Financial Information
|
|
Thirty-Nine Weeks Ended
June 1, 2024
|
|
(In thousands, except
percentages and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Financial
Measure
|
|
Items Affecting
Comparability
|
|
Non-GAAP
Financial
Measure
|
|
Total MSC
Industrial
|
|
Restructuring
and Other Costs
|
|
Acquisition-
Related Costs
|
|
Share
Reclassification
Costs
|
|
Adjusted Total
MSC
Industrial
|
|
Net Sales
|
$
2,868,667
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
2,868,667
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold
|
1,686,492
|
|
—
|
|
—
|
|
—
|
|
1,686,492
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
1,182,175
|
|
—
|
|
—
|
|
—
|
|
1,182,175
|
|
Gross Margin
|
41.2 %
|
|
— %
|
|
— %
|
|
— %
|
|
41.2 %
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
870,859
|
|
—
|
|
465
|
|
1,187
|
|
869,207
|
|
Operating Exp as % of
Sales
|
30.4 %
|
|
— %
|
|
0.0 %
|
|
0.0 %
|
|
30.3 %
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and Other
Costs
|
11,787
|
|
11,787
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations
|
299,529
|
|
(11,787)
|
|
(465)
|
|
(1,187)
|
|
312,968
|
|
Operating
Margin
|
10.4 %
|
|
0.4 %
|
|
0.0 %
|
|
0.0 %
|
|
10.9 %
|
|
|
|
|
|
|
|
|
|
|
|
Total Other
Expense
|
(32,920)
|
|
—
|
|
—
|
|
—
|
|
(32,920)
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision
for income taxes
|
266,609
|
|
(11,787)
|
|
(465)
|
|
(1,187)
|
|
280,048
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
64,604
|
|
(2,767)
|
|
(113)
|
|
(288)
|
|
67,772
|
|
Net income
|
202,005
|
|
(9,020)
|
|
(352)
|
|
(899)
|
|
212,276
|
|
Net loss attributable
to noncontrolling interest
|
(897)
|
|
—
|
|
—
|
|
—
|
|
(897)
|
|
Net income attributable
to MSC Industrial
|
$ 202,902
|
|
$
(9,020)
|
|
$
(352)
|
|
$
(899)
|
|
$ 213,173
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
$
3.59
|
|
$
(0.16)
|
|
$
(0.01)
|
|
$
(0.02)
|
|
$
3.77
|
|
|
*Individual amounts may
not agree to the total due to rounding.
|
|
MSC INDUSTRIAL DIRECT
CO., INC.
|
|
Reconciliation of GAAP
and Non-GAAP Financial Information
|
|
Thirteen Weeks Ended
June 3, 2023
|
|
(In thousands, except
percentages and per share data)
|
|
|
|
|
|
|
|
|
|
GAAP
Financial
Measure
|
|
Items Affecting
Comparability
|
|
Non-GAAP
Financial
Measure
|
|
Total MSC
Industrial
|
|
Restructuring
and Other
Costs
|
|
Share
Reclassification
Costs
|
|
Adjusted Total
MSC Industrial
|
|
Net Sales
|
$
1,054,464
|
|
$
—
|
|
$
—
|
|
$
1,054,464
|
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold
|
625,527
|
|
—
|
|
—
|
|
625,527
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
428,937
|
|
—
|
|
—
|
|
428,937
|
|
Gross Margin
|
40.7 %
|
|
— %
|
|
— %
|
|
40.7 %
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
291,706
|
|
—
|
|
1,373
|
|
290,333
|
|
Operating Exp as % of
Sales
|
27.7 %
|
|
— %
|
|
(0.1) %
|
|
27.5 %
|
|
|
|
|
|
|
|
|
|
Restructuring and Other
Costs
|
1,845
|
|
1,845
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Income from
Operations
|
135,386
|
|
(1,845)
|
|
(1,373)
|
|
138,604
|
|
Operating
Margin
|
12.8 %
|
|
0.2 %
|
|
0.1 %
|
|
13.1 %
|
|
|
|
|
|
|
|
|
|
Total Other
Expense
|
(8,981)
|
|
—
|
|
—
|
|
(8,981)
|
|
|
|
|
|
|
|
|
|
Income before provision
for income taxes
|
126,405
|
|
(1,845)
|
|
(1,373)
|
|
129,623
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
31,266
|
|
(505)
|
|
(376)
|
|
32,147
|
|
Net income
|
95,139
|
|
(1,340)
|
|
(997)
|
|
97,476
|
|
Net income attributable to
noncontrolling interest
|
(41)
|
|
—
|
|
—
|
|
(41)
|
|
Net income attributable to
MSC Industrial
|
$
95,180
|
|
$
(1,340)
|
|
$
(997)
|
|
$
97,517
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
Diluted
|
$
1.69
|
|
$
(0.02)
|
|
$
(0.02)
|
|
$
1.74
|
|
|
*Individual amounts may
not agree to the total due to rounding.
|
|
MSC INDUSTRIAL DIRECT
CO., INC.
|
|
Reconciliation of GAAP
and Non-GAAP Financial Information
|
|
Thirty-Nine Weeks Ended
June 3, 2023
|
|
(In thousands, except
percentages and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Financial
Measure
|
|
Items Affecting
Comparability
|
|
Non-GAAP
Financial
Measure
|
|
Total MSC
Industrial
|
|
Restructuring
and Other
Costs
|
|
Acquisition-
Related
Costs
|
|
Share
Reclassification
Costs
|
|
Adjusted Total
MSC Industrial
|
|
Net Sales
|
$
2,973,841
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
2,973,841
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold
|
1,750,410
|
|
—
|
|
—
|
|
—
|
|
1,750,410
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
1,223,431
|
|
—
|
|
—
|
|
—
|
|
1,223,431
|
|
Gross Margin
|
41.1 %
|
|
— %
|
|
— %
|
|
— %
|
|
41.1 %
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
852,031
|
|
—
|
|
398
|
|
2,249
|
|
849,384
|
|
Operating Exp as % of
Sales
|
28.7 %
|
|
— %
|
|
0.0 %
|
|
0.1 %
|
|
28.6 %
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and Other
Costs
|
5,722
|
|
5,722
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations
|
365,678
|
|
(5,722)
|
|
(398)
|
|
(2,249)
|
|
374,047
|
|
Operating
Margin
|
12.3 %
|
|
0.2 %
|
|
0.0 %
|
|
0.1 %
|
|
12.6 %
|
|
|
|
|
|
|
|
|
|
|
|
Total Other
Expense
|
(25,244)
|
|
—
|
|
—
|
|
—
|
|
(25,244)
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision
for income taxes
|
340,434
|
|
(5,722)
|
|
(398)
|
|
(2,249)
|
|
348,803
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
84,768
|
|
(1,424)
|
|
(100)
|
|
(560)
|
|
86,852
|
|
Net income
|
255,666
|
|
(4,298)
|
|
(298)
|
|
(1,689)
|
|
261,951
|
|
Net income attributable to
noncontrolling interest
|
32
|
|
—
|
|
—
|
|
—
|
|
32
|
|
Net income attributable to
MSC Industrial
|
$
255,634
|
|
$
(4,298)
|
|
$
(298)
|
|
$
(1,689)
|
|
$
261,919
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
$
4.56
|
|
$
(0.08)
|
|
$
(0.01)
|
|
$
(0.03)
|
|
$
4.67
|
|
|
*Individual amounts may
not agree to the total due to rounding.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/msc-industrial-supply-co-reports-fiscal-2024-third-quarter-results-302187561.html
SOURCE MSC Industrial Supply Co.