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):April 10, 2019

_________________________________________________

MSC Industrial Direct Co., Inc.

(Exact Name of Registrant as Specified in Its Charter)

New York	1-14130	11-3289165
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

75 Maxess Road, Melville, New York			11747
(Address of principal executive offices)			(Zip Code)
Registrant’s telephone number, including area code: (516) 812-2000
		Not Applicable
	(Former name or former address, if changed since last report)

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:

☐ 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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 10, 2019, MSC Industrial Direct Co., Inc.issued a press release announcing financial results for its fiscal 2019 second quarter ended March 2, 2019. A copy of the press release is furnished with this report as Exhibit 99.1.

The information in this Current Report on Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits:
99.1	Press Release, dated April 10, 2019, issued by MSC Industrial Direct Co., Inc.

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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.

	MSCINDUSTRIALDIRECTCO.,INC.
Date:  April 10, 2019	By:	/s/ Rustom Jilla
	Name:	Rustom Jilla
	Title:	Executive Vice President and Chief Financial Officer

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EX-99.1

Exhibit 99.1

NEWS

MSC REPORTS FISCAL 2019SECOND QUARTER RESULTS

FISCAL Q2 2019 HIGHLIGHTS

· Net sales of $823.0 million, a 7.0% YoY increase

· Average daily sales increased 8.8% YoY, with 270 basis points of acquisitive growth

· Operating income of $96.0 million, a decrease of approximately 2.2% YoY

· Operating margin of 11.7% (11.9% excluding acquisitions*)

· Diluted EPS of $1.24

MELVILLE, NY and DAVIDSON, NC, APRIL10, 2019 - MSC INDUSTRIAL SUPPLY CO. (NYSE: MSM),  "MSC" or the "Company," a premier distributor of Metalworking and Maintenance, Repair and Operations ("MRO") products and services to industrial customers throughout North America,  today reported financial results for its fiscal 2019second quarter ended March 2, 2019.

Financial Highlights1	FY19 Q2		FY18 Q2		Change	FY19 YTD		FY18 YTD		Change
Net Sales	$823.0		$769.0		7.0%	$1,654.6		$1,537.5		7.6%
Operating Income	96.0		98.1		-2.2%	199.0		197.4		0.8%
% of Net Sales	11.7%		12.8%			12.0%		12.8%
Net Income	68.4		117.6	4	-41.8%	142.7		177.1	4	-19.5%
Diluted EPS	$1.24	.2	$2.06	.3,4	-39.8%	$2.56	.2	$3.12	.3,4	-17.9%

1In millions except per share data or as otherwise noted. 2Based on 55.4 million and 55.6 million diluted shares outstanding for FY19 Q2 and FY19 YTD, respectively.  3Based on 56.9 million and 56.7 million diluted shares outstanding for FY18 Q2 and FY18 YTD, respectively. 4  Prior year periods include a provisional tax benefit of $41.2 million, or $0.72 per diluted share, from the revaluation of the company’s tax related balance sheet items and a tax benefit of $16.9 million, or $0.30 per diluted share, attributable to the lower effective tax rate required to bring the first half of fiscal 2018 into alignment with the expected full year rate.

Erik Gershwind, president and chief executive officer, said, “Conditions generally remained solid in the industrial economy in the fiscal second quarter of 2019, although we did see some moderation in February and this continued into March. Our core and national account customer growth in the quarter was in the high single digits, while Government sales were negative as expected. As a result, our total company growth rate was slightly below our expectations. The pricing environment remained stable in the fiscal second quarter, and we were pleased with the strong realization that we achieved on our mid-year price increase.”

Rustom Jilla, executive vice president and chief financial officer, added, “Our fiscal second quarter total ADS increased 8.8% year-over-year, with acquisitions contributing 270 basis points. Our gross margin was in-line with our expectations. Price realization was strong, while purchase cost and mix remained headwinds, as expected. Our operating expense to sales ratio was 31.1%, roughly flat with last year’s second quarter and in line with our guidance, as our stepped-up growth investments offset the benefits of sales leverage. Despite our gross margins and operating expenses coming in as expected, our earnings per share were one cent below our guidance mid-point due to slightly lower than anticipated sales. Finally, in the fiscal second quarter, we paid dividends of $35 million and repurchased approximately 275 thousand shares for about $21 million.”

Gershwind concluded, “Over the past few years, we have repositioned MSC from a spot buy supplier to a mission critical partner on manufacturing plant floors. More recently, we transformed our sales force and ramped hiring of sales talent. At the halfway point of the fiscal year, gross margins and operating expenses are as anticipated, but revenue growth has slightly underperformed our expectations. Looking forward, we are seeing positive signs from the implementation of our strategic plan, particularly from our sales force transformation, and are confident that it will deliver above market growth.”

*  An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the financial schedules of this press release.

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2019 SECOND QUARTER RESULTS

Outlook

The Company expects net sales for the third quarter of fiscal 2019 to be between $874 million and $891 million. At the midpoint, average daily sales are expected to increase roughly 6.5% compared to last year’s third quarter. The Company expects diluted earnings per share for the third quarter of fiscal 2019 to be between $1.46 and $1.52.

Excluding acquisitions*, the Company expects net sales for the third quarter of fiscal 2019 to be between $846 million and $863 million, with average daily sales at the midpoint expected to increase roughly 4.0% compared to last year’s third quarter. The Company expects the impact from acquisitions to have a roughly breakeven impact on diluted earnings per share for the third quarter of fiscal 2019.

*  An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the financial schedules of this press release.

Conference Call Information

MSC will host a conference call today at 8:30 a.m. EST to review the Company’s fiscal 2019 third quarter results. The call, accompanying slides, and other operational statistics may be accessed at: http://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 April 17, 2019.

The Company’s reporting date for fiscal 2019 third quarter results is scheduled for July 10, 2019.

Contact Information

Investors:	Media:
John G. Chironna	Paul Mason
Vice President, Investor Relations and Treasurer	Director, Corporate Communications
(704) 987-5231	(704) 987-5313

About MSC Industrial Supply Co.MSC Industrial Supply Co. (NYSE:MSM) is a leading North American distributor of metalworking and maintenance, repair, and operations (MRO) products and services. We help our customers drive greater productivity, profitability and growth with more than 1.6 million products, inventory management and other supply chain solutions, and deep expertise from over 75 years of working with customers across industries. Our experienced team of over 6,500 associates is dedicated to working side by side 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, please visit mscdirect.com.

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 historical fact, that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including statements about expected future results, expected benefits from our investment and strategic plans, including from our recent acquisitions, and expected future margins, are 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. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The inclusion of any statement in this release does not constitute an admission by MSC or any other person that the events or circumstances described in such statement are material. Factors that could cause actual results to differ materially from those in forward-looking statements include: general economic conditions in the markets in which we operate; changing customer and product mixes; competition, including the adoption by competitors of aggressive pricing strategies and sales methods; industry consolidation and other changes in the industrial distribution sector; volatility in commodity and energy prices; the outcome of government or regulatory proceedings or future litigation; credit risk of our customers; risk of customer cancellation or rescheduling of orders; work stoppages or other business interruptions (including those due to extreme weather conditions) at transportation centers, shipping ports, our headquarters or our customer fulfillment centers; dependence on our information systems and the risks of business disruptions arising from changes to our information systems and disruptions due to catastrophic events, power outages, natural disasters, computer system or network failures, computer viruses, physical or electronic break-ins and cyber-attacks; retention of key personnel; retention of qualified sales and customer service personnel and metalworking specialists; risk of loss of key suppliers, key brands or supply chain disruptions; risks associated with changes to trade policies, including the impact from significant restrictions or tariffs; risks associated with opening or expanding our customer fulfillment centers; 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; failure to comply with applicable environmental, health and safety laws and regulations; goodwill and intangible assets recorded as a result of our acquisitions could be impaired; risks associated with the volatility of our common stock; and our principal shareholders exercise significant control over us. 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 the reports on Forms 10-K and 10-Q that we file with the U.S. Securities and Exchange Commission. We assume no obligation to update any of these forward-looking statements. 

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2019 SECOND QUARTER RESULTS

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands)

	March 2,		September 1,
	2019		2018
ASSETS		(unaudited)
Current Assets:
Cash and cash equivalents	$	31,167	$	46,217
Accounts receivable, net of allowance for doubtful accounts		540,756		523,892
Inventories		572,593		518,496
Prepaid expenses and other current assets		99,387		58,902
Total current assets		1,243,903		1,147,507
Property, plant and equipment, net		307,310		311,685
Goodwill		677,501		674,998
Identifiable intangibles, net		123,062		122,724
Other assets		6,340		31,813
Total assets	$	2,358,116	$	2,288,727
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term debt	$	308,562	$	224,097
Accounts payable		162,673		145,133
Accrued liabilities		96,656		121,293
Total current liabilities		567,891		490,523
Long-term debt		284,666		311,236
Deferred income taxes and tax uncertainties		99,714		99,714
Total liabilities		952,271		901,473
Commitments and Contingencies
Shareholders’ Equity:
Preferred Stock		—		—
Class A common stock		54		55
Class B common stock		10		10
Additional paid-in capital		670,047		657,749
Retained earnings		1,349,972		1,325,822
Accumulated other comprehensive loss		(20,237)		(19,634)
Class A treasury stock, at cost		(599,603)		(576,748)
Total MSC Industrial shareholders’ equity		1,400,243		1,387,254
Noncontrolling interest		5,602		—
Total Shareholders’ Equity		1,405,845		1,387,254
Total liabilities and shareholders’ equity	$	2,358,116	$	2,288,727

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2019 SECOND QUARTER RESULTS

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	March 2,		March 3,		March 2,		March 3,
	2019		2018		2019		2018
Net sales	$	823,004	$	768,987	$	1,654,601	$	1,537,548
Cost of goods sold		471,190		431,764		944,802		865,256
Gross profit		351,814		337,223		709,799		672,292
Operating expenses		255,833		239,120		510,818		474,911
Income from operations		95,981		98,103		198,981		197,381
Other (expense) income:
Interest expense		(4,539)		(3,550)		(8,595)		(6,787)
Interest income		164		213		326		376
Other (expense) income, net		(237)		77		(235)		(331)
Total other expense		(4,612)		(3,260)		(8,504)		(6,742)
Income before provision for income taxes		91,369		94,843		190,477		190,639
Provision (Benefit) for income taxes		22,939		(22,709)		47,815		13,502
Net income		68,430		117,552		142,662		177,137
Less: Net income attributable to noncontrolling interest		6		—		6		—
Net income attributable to MSC Industrial	$	68,424	$	117,552	$	142,656	$	177,137
Per share data attributable to MSC Industrial:
Net income per common share:
Basic	$	1.24	$	2.08	$	2.58	$	3.14
Diluted	$	1.24	$	2.06	$	2.56	$	3.12
Weighted average shares used in computing    net income per common share:
Basic		55,139		56,439		55,320		56,363
Diluted		55,362		56,892		55,619		56,698

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	March 2,		March 3,		March 2,		March 3,
	2019		2018		2019		2018
Net income, as reported	$	68,430	$	117,552	$	142,662	$	177,137
Other comprehensive income, net of tax:
Foreign currency translation adjustments		675		27		(666)		(816)
Comprehensive income		69,105		117,579		141,996		176,321
Comprehensive loss attributable to noncontrolling interest		57		—		57		—
Comprehensive income attributable to MSC Industrial	$	69,162	$	117,579	$	142,053	$	176,321

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2019 SECOND QUARTER RESULTS

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Twenty-Six Weeks Ended
	March 2,		March 3,
	2019		2018
Cash Flows from Operating Activities:
Net income	$	142,662	$	177,137
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		32,076		31,307
Stock-based compensation		8,078		7,589
Loss on disposal of property, plant, and equipment		343		178
Provision for doubtful accounts		6,050		3,407
Deferred income taxes and tax uncertainties		—		(41,199)
Changes in operating assets and liabilities:
Accounts receivable		(20,510)		(32,461)
Inventories		(44,642)		(33,648)
Prepaid expenses and other current assets		(13,359)		(3,457)
Other assets		(1,545)		2,330
Accounts payable and accrued liabilities		(10,575)		7,004
Total adjustments		(44,084)		(58,950)
Net cash provided by operating activities		98,578		118,187
Cash Flows from Investing Activities:
Expenditures for property, plant and equipment		(23,156)		(17,261)
Cash used in business acquisitions, net of cash received		(11,625)		(738)
Net cash used in investing activities		(34,781)		(17,999)
Cash Flows from Financing Activities:
Repurchases of common stock		(84,425)		(21,728)
Payments of cash dividends		(69,551)		(59,873)
Proceeds from sale of Class A common stock in connection with associate stock purchase plan		2,429		2,376
Proceeds from exercise of Class A common stock options		14,518		16,393
Borrowings under the revolving credit facilities		326,000		124,000
Contributions from non-controlling interest		918		—
Payments under the revolving credit facilities		(269,000)		(146,000)
Other, net		241		71
Net cash used in financing activities		(78,870)		(84,761)
Effect of foreign exchange rate changes on cash and cash equivalents		23		98
Net increase (decrease) in cash and cash equivalents		(15,050)		15,525
Cash and cash equivalents – beginning of year		46,217		16,083
Cash and cash equivalents – end of year	$	31,167	$	31,608
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes	$	47,834	$	50,279
Cash paid for interest	$	8,316	$	6,553

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2019 SECOND QUARTER RESULTS

Non-GAAP Financial Measures

· Results excluding All Integrated Solutions (AIS) and MSC Mexico

To supplement MSC’s unaudited selected financial data presented consistent with Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures, including Non-GAAP net sales, non-GAAP gross profit, non-GAAP income from operations, non-GAAP (benefit) provision for income taxes, non-GAAP net income and non-GAAP diluted earnings per share, that exclude the results of our acquisition of All Integrated Solutions (“AIS”) and the operations of two newly-formed entities, MSC IndustrialSupply, S. de R.L. de C.V. and MSC Import Export LLC (which completed the acquisition of certain assets in February 2019), including the non-recurring acquisition and integrations costs (collectively, referred to as “Acquisitions”).

These non-GAAP measures are not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect MSC’s results of operations as determined in accordance with GAAP, and that these measures should only be used to evaluate MSC’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company’s performance.

In calculating non-GAAP financial measures, we exclude the results of the Acquisitions to facilitate a review of the Company’s operating performance on a period-to-period basis, for comparison with forecasts and strategic plans, and for benchmarking performance externally against competitors. We believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

•the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;

•the ability to better identify trends in the Company’s underlying business and perform related trend analyses;

•a better understanding of how management plans and measures the Company’s underlying business; and

•an easier way to compare the Company’s operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Information

Thirteen and Twenty-Six Weeks Ended March 2, 2019

(dollars in thousands, except per share data)

GAAP Measure

Items Affecting Comparability

Non-GAAP Measure

GAAP Measure

Non-GAAP Measure

Net Sales

Acquisitions

Net Sales, excluding Acquisitions

Average Daily Sales Growth

Average Daily Sales Growth, excluding Acquisitions

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Thirteen Weeks Ended

Twenty-Six Weeks Ended

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

$

823,004

$

1,654,601

$

19,943

$

37,601

$

803,061

$

1,617,000

8.8

%

8.5

%

6.1

%

6.0

%

GAAP Measure

Items Affecting Comparability

Non-GAAP Measure

GAAP Measure

Non-GAAP Measure

Gross Profit

Acquisitions

Gross Profit, excluding Acquisitions

Gross Margin

Gross Margin, excluding Acquisitions

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Thirteen Weeks Ended

Twenty-Six Weeks Ended

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

March 2, 2019

$

351,814

$

709,799

$

5,960

$

11,408

$

345,854

$

698,391

42.7

%

42.9

%

43.1

%

43.2

%

GAAP Measure				Items Affecting Comparability				Non-GAAP Measure				GAAP Measure				Non-GAAP Measure
Operating Expenses				Acquisitions				Operating Expenses, excluding Acquisitions				Operating Expenses as a percentage of Net Sales				Operating Expenses as a  percentage of Net Sales, excluding Acquisitions
Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended
March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019
$	255,833	$	510,818	$	5,654	$	10,511	$	250,179	$	500,307	31.1	%	30.9	%	31.2	%	30.9	%

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2019 SECOND QUARTER RESULTS

GAAP Measure				Items Affecting Comparability				Non-GAAP Measure				GAAP Measure				Non-GAAP Measure
Operating Income				Acquisitions				Operating Income, excluding Acquisitions				Operating Margin				Operating Margin, excluding Acquisitions
Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended
March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019
$	95,981	$	198,981	$	306	$	897	$	95,675	$	198,084	11.7	%	12.0	%	11.9	%	12.3	%
GAAP Measure				Items Affecting Comparability				Non-GAAP Measure
Provision (benefit) for income taxes				Acquisitions				Provision (benefit) for income taxes, excluding Acquisitions
Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended
March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019
$	22,939	$	47,815	$	(137)	$	(207)	$	23,076	$	48,022
GAAP Measure				Items Affecting Comparability				Non-GAAP Measure
Net Income (loss)				Acquisitions				Net Income (loss), excluding Acquisitions
Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended
March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019
$	68,430	$	142,662	$	(416)	$	(623)	$	68,846	$	143,285
GAAP Measure				Items Affecting Comparability				Non-GAAP Measure
Diluted Earnings (loss) Per Share				Acquisitions				Diluted Earnings (loss) Per Share, excluding Acquisitions
Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended
March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019		March 2, 2019
$	1.24	$	2.56	$	-	$	(0.01)	$	1.24	$	2.57

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2019 SECOND QUARTER RESULTS

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Information
Guidance for Thirteen Weeks Ended June 1, 2019*
(dollars in millions, except per share data)
GAAP Measure		Items Affecting Comparability		Non-GAAP Measure		GAAP Measure		Non-GAAP Measure
Net Sales		Acquisitions		Net Sales, excluding Acquisitions		Average Daily Sales Growth		Average Daily Sales Growth, excluding Acquisitions
Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended
June 1, 2019		June 1, 2019		June 1, 2019		June 1, 2019		June 1, 2019
$	882.6	$	28.2	$	854.4	6.5	%	4.0	%
GAAP Measure		Items Affecting Comparability		Non-GAAP Measure		GAAP Measure		Non-GAAP Measure
Gross Profit		Acquisitions		Gross Profit, excluding Acquisitions		Gross Margin		Gross Margin, excluding Acquisitions
Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended
June 1, 2019		June 1, 2019		June 1, 2019		June 1, 2019		June 1, 2019
$	377.2	$	7.6	$	369.6	42.7	%	43.3	%
GAAP Measure		Items Affecting Comparability		Non-GAAP Measure		GAAP Measure		Non-GAAP Measure
Operating Expenses		Acquisitions		Operating Expenses, excluding Acquisitions		Operating Expenses as a percentage of Net Sales		Operating Expenses as a percentage of Net Sales, excluding Acquisitions
Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended
June 1, 2019		June 1, 2019		June 1, 2019		June 1, 2019		June 1, 2019
$	262.3	$	6.9	$	255.4	29.7	%	29.9	%
GAAP Measure		Items Affecting Comparability		Non-GAAP Measure		GAAP Measure		Non-GAAP Measure
Operating Income		Acquisitions		Operating Income, excluding Acquisitions		Operating Margin		Operating Margin, excluding Acquisitions
Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended
June 1, 2019		June 1, 2019		June 1, 2019		June 1, 2019		June 1, 2019
$	114.9	$	0.7	$	114.2	13.0	%	13.4	%
GAAP Measure		Items Affecting Comparability		Non-GAAP Measure
Net Income (loss)		Acquisitions		Net Income (loss), excluding Acquisitions
Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended
June 1, 2019		June 1, 2019		June 1, 2019
$	82.8	$	(0.1)	$	82.9
GAAP Measure		Items Affecting Comparability		Non-GAAP Measure
Diluted Earnings Per Share		Acquisitions		Diluted Earnings Per Share, excluding Acquisitions
Thirteen Weeks Ended		Thirteen Weeks Ended		Thirteen Weeks Ended
June 1, 2019		June 1, 2019		June 1, 2019
$	1.49	$	-	$	1.49
*  The data in the above tables represent the midpoint of management's guidance; see note regarding forward-looking statements