EX-99.1 2 msm-20210407xex99_1.htm EX-99.1 Exhibit 991 to Press Release 02272021 FY21

 

Exhibit 99.1



 

 Picture 2

NEWS

MSC INDUSTRIAL REPORTS FISCAL 2021 SECOND QUARTER RESULTS



FISCAL 2021 Q2 HIGHLIGHTS



·

Net sales of $774.0 million, a 1.5% decrease from the prior year quarter

·

Operating income of $28.0 million, or $80.5 million excluding $30.1 million in inventory write-downs, $21.6 million in restructuring costs, and $0.8 million in other charges1

·

Operating margin of 3.6%, or 10.4% excluding the adjustments described above1

·

Diluted EPS of $0.32; vs. $1.00 in the prior year quarter

·

Adjusted diluted EPS of $1.03 vs. $1.02 in the prior year quarter1



MELVILLE, NY and DAVIDSON, NC, APRIL 7, 2021 - MSC INDUSTRIAL DIRECT CO., INC. (NYSE: MSM),  "MSC Industrial" or the "Company", a leading North American distributor of metalworking and maintenance, repair and operations (MRO) products and services,  today reported financial results for its fiscal 2021 second quarter ended February 27, 2021.







 

 

 

 

 

 

 

 

 

 

 

 

Financial Highlights2

 

FY21 Q2

 

FY20 Q2

 

Change

 

FY21 YTD

 

FY20 YTD

 

Change

Net Sales

 

$774.0 

 

$786.1 

 

-1.5%

 

$1,545.9 

 

$1,609.7 

 

-4.0%

Income from Operations

 

$28.0 

 

$77.7 

 

-63.9%

 

$81.9 

 

$168.0 

 

-51.2%

Operating Margin

 

3.6% 

 

9.9% 

 

 

 

5.3% 

 

10.4% 

 

 

Net Income attributable to MSC Industrial

 

$18.1 

 

$55.5 

 

-67.4%

 

$56.5 

 

$120.9 

 

-53.2%

Diluted EPS

 

$0.32 

3

$1.00 

4

-68.0%

 

$1.01 

3

$2.18 

4

-53.7%







 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Financial Highlights1,2

 

FY21 Q2

 

FY20 Q2

 

Change

 

FY21 YTD

 

FY20 YTD

 

Change

Unadjusted Net Sales

 

$774.0 

 

$786.1 

 

-1.5%

 

$1,545.9 

 

$1,609.7 

 

    -4.0%

Adjusted Income from Operations

 

$80.5 

 

$79.6 

 

1.1% 

 

$165.4 

 

$172.5 

 

-4.1%

Adjusted Operating Margin

 

10.4% 

 

10.1% 

 

 

 

10.7% 

 

10.7% 

 

 

Adjusted Net Income attributable to MSC Industrial

 

$57.6 

 

$57.0 

 

1.1% 

 

$119.4 

 

$124.3 

 

-4.0%

Adjusted Diluted EPS

 

$1.03 

3

$1.02 

4

1.0% 

 

$2.13 

3

$2.24 

 4

-4.9%



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 schedules accompanying this press release.

2 In millions except percentages and per share data or as otherwise noted.

3 Based on 56.1 million and 56.0 million diluted shares outstanding for FY21 Q2 and FY21 YTD respectively.

4 Based on 55.6 million and 55.5 million diluted shares outstanding for FY20 Q2 and FY20 YTD respectively.

 



Erik Gershwind, President and Chief Executive Officer, said, “Our fiscal second quarter reflected solid execution in a choppy, but improving environment. Improvement in sales levels of our non-safety and non-janitorial product lines continued through the quarter and turned positive in March. Sales of our safety and janitorial products grew in the mid-teens. Execution of our Mission Critical initiatives was solid, and I am pleased with the progress that we are making with our share capture programs.”

 

Kristen Actis-Grande, Executive Vice President and Chief Financial Officer, added, “Average daily sales were $12.7 million for the quarter and our gross margin was 38.1%, a decline of 400 basis points versus the prior year due primarily to a roughly $30 million PPE write-down recorded during the quarter. Excluding this write-down, our adjusted gross margin was 42.0 percent, roughly flat sequentially and versus the prior year. Operating expenses as a percentage of sales was 31.7%, a 30 basis point improvement from the prior year period. During the quarter, our Mission Critical program delivered $9 million of gross cost out bringing our cumulative savings for fiscal 2021 to $17 million against our goal of $25 million by the end of this year. We also invested roughly $5 million in our fiscal second quarter growth programs. We are ahead of plan on savings, and our investment program is also progressing very well. In fact, the results are such that we anticipate making some additional growth investments to capture more of the opportunities that we are seeing. On balance, this means that our net savings target for Mission Critical remains roughly the same or slightly larger for the full year. Our goal remains $90 million to $100 million of gross cost savings through fiscal 2023 versus fiscal 2019, and we are currently tracking to the high

 

 


 

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MSC INDUSTRIAL DIRECT CO., INC. REPORTS FISCAL 2021 SECOND QUARTER RESULTS

 

end of that range. Our adjusted operating margin, excluding the write-down of PPE inventory and restructuring and other related costs, was up 30 basis points from the prior year due to our Mission Critical progress.”



Gershwind concluded, “The improving environment and continued execution of our growth and cost take-out programs are combining to position us well. We are now emerging as a stronger company and are poised to reaccelerate growth. We have strengthened our value proposition, with more to come, and further strengthened and extended our leadership position in our core business of Metalworking. We are well on-track to achieve our goals of growing 400 basis points above the Industrial Production Index and returning ROIC back to the high teens by the end of fiscal 2023.”



Conference Call Information 



MSC Industrial will host a conference call today at 8:30 a.m. EDT to review the Company’s fiscal 2021 second 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 14, 2021.

 

The Company’s reporting date for fiscal 2021 third quarter results is scheduled for July 7, 2021.

 

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 Direct Co., Inc. MSC Industrial Direct Co., Inc. (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 approximately 1.9 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 more than 6,200 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 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 historical fact, that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including statements about the future impact of COVID-19 on our business operations, 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. 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 press release does not constitute an admission by MSC Industrial 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 the following, many of which are and will be amplified by the COVID-19 pandemic: the effects of the COVID-19 pandemic, including any future resurgences, on our business operations, results of operations and financial condition; 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; our ability to realize the expected benefits from our investment and strategic plans, including our transition from a spot-buy supplier to a mission-critical partner; our ability to realize the expected cost savings and benefits from our restructuring activities and structural cost reductions; retention of key personnel and qualified sales and customer service personnel and metalworking specialists; 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; difficulties in calibrating customer demand for our products, in particular personal protective equipment or “PPE” 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 or other business interruptions (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 systems, or violations of data privacy laws; risk of loss of key suppliers, key brands or supply chain disruptions; 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; our ability to maintain our credit facilities; interest rate uncertainty due to LIBOR reform; failure to comply with applicable environmental, health and safety laws and regulations; ability to estimate the cost of healthcare claims incurred under our self-insurance plan;

 


 

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MSC INDUSTRIAL DIRECT CO., INC. REPORTS FISCAL 2021 SECOND QUARTER RESULTS

 

and goodwill and intangible assets recorded as a result of our acquisitions could be impaired. Additional information concerning these and other risks 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 U.S. 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.

 


 

Page 4

MSC INDUSTRIAL DIRECT CO., INC. REPORTS FISCAL 2021 SECOND QUARTER RESULTS

 

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands)







 

 

 

 

 



February 27,

 

August 29,



2021

 

2020

ASSETS

 

(unaudited)

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

$

20,242 

 

$

125,211 

Accounts receivable, net of allowance for credit losses

 

527,233 

 

 

491,743 

Inventories

 

532,536 

 

 

543,106 

Prepaid expenses and other current assets

 

105,342 

 

 

77,710 

Total current assets

 

1,185,353 

 

 

1,237,770 

Property, plant and equipment, net

 

293,342 

 

 

301,979 

Goodwill

 

678,406 

 

 

677,579 

Identifiable intangibles, net

 

99,756 

 

 

104,873 

Operating lease assets

 

41,758 

 

 

56,173 

Other assets

 

3,626 

 

 

4,056 

Total assets

$

2,302,241 

 

$

2,382,430 



 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Current portion of debt including obligations under finance leases

$

222,680 

 

$

122,248 

Current portion of operating lease liabilities

 

19,956 

 

 

21,815 

Accounts payable

 

170,487 

 

 

125,775 

Accrued expenses and other current liabilities

 

140,091 

 

 

138,895 

Total current liabilities

 

553,214 

 

 

408,733 

Long-term debt including obligations under finance leases

 

461,685 

 

 

497,018 

Noncurrent operating lease liabilities

 

37,640 

 

 

34,379 

Deferred income taxes and tax uncertainties

 

121,721 

 

 

121,727 

Other noncurrent liabilities

 

9,444 

 

 

 —

Total liabilities

 

1,183,704 

 

 

1,061,857 

Commitments and Contingencies

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Preferred Stock

 

 —

 

 

 —

Class A Common Stock

 

48 

 

 

47 

Class B Common Stock

 

 

 

10 

Additional paid-in capital

 

712,750 

 

 

690,739 

Retained earnings

 

523,757 

 

 

749,515 

Accumulated other comprehensive loss

 

(18,806)

 

 

(21,418)

Class A treasury stock, at cost

 

(105,645)

 

 

(103,948)

Total MSC Industrial shareholders’ equity

 

1,112,113 

 

 

1,314,945 

Noncontrolling interest

$

6,424 

 

$

5,628 

Total shareholders’ equity

 

1,118,537 

 

 

1,320,573 

Total liabilities and shareholders’ equity

$

2,302,241 

 

$

2,382,430 



 

 


 

Page 5

MSC INDUSTRIAL DIRECT CO., INC. REPORTS FISCAL 2021 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



February 27,

 

February 29,

 

February 27,

 

February 29,



2021

 

2020

 

2021

 

2020

Net sales

$

773,995 

 

$

786,094 

 

$

1,545,899 

 

$

1,609,695 

Cost of goods sold

 

479,244 

 

 

455,042 

 

 

927,830 

 

 

931,447 

Gross profit

 

294,751 

 

 

331,052 

 

 

618,069 

 

 

678,248 

Operating expenses

 

245,115 

 

 

251,441 

 

 

483,820 

 

 

505,768 

Impairment loss

 

-

 

 

-

 

 

26,726 

 

 

 -

Restructuring costs

 

21,615 

 

 

1,941 

 

 

25,594 

 

 

4,512 

Income from operations

 

28,021 

 

 

77,670 

 

 

81,929 

 

 

167,968 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(3,580)

 

 

(3,495)

 

 

(6,936)

 

 

(6,666)

Interest income

 

16 

 

 

68 

 

 

37 

 

 

78 

Other income (expense), net

 

(58)

 

 

(70)

 

 

593 

 

 

51 

Total other expense

 

(3,622)

 

 

(3,497)

 

 

(6,306)

 

 

(6,537)

Income before provision for income taxes

 

24,399 

 

 

74,173 

 

 

75,623 

 

 

161,431 

Provision for income taxes

 

6,051 

 

 

18,617 

 

 

18,498 

 

 

40,423 

Net income

 

18,348 

 

 

55,556 

 

 

57,125 

 

 

121,008 

Less: Net income attributable to noncontrolling interest

 

263 

 

 

56 

 

 

586 

 

 

90 

Net income attributable to MSC Industrial

$

18,085 

 

$

55,500 

 

$

56,539 

 

$

120,918 

Per share data attributable to MSC Industrial:

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.32 

 

$

1.00 

 

$

1.01 

 

$

2.18 

Diluted

$

0.32 

 

$

1.00 

 

$

1.01 

 

$

2.18 

Weighted-average shares used in computing

   net income per common share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

55,838 

 

 

55,467 

 

 

55,749 

 

 

55,371 

Diluted

 

56,133 

 

 

55,587 

 

 

56,019 

 

 

55,545 



 

 


 

Page 6

MSC INDUSTRIAL DIRECT CO., INC. REPORTS FISCAL 2021 SECOND QUARTER RESULTS

 

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)









 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Thirteen Weeks Ended

 

Twenty-Six Weeks Ended



February 27,

 

February 29,

 

February 27,

 

February 29,



2021

 

2020

 

2021

 

2020

Net income, as reported

$

18,348 

 

$

55,556 

 

$

57,125 

 

$

121,008 

Other comprehensive income, net of tax:

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

626 

 

 

(788)

 

 

2,822 

 

 

818 

Comprehensive income

 

18,974 

 

 

54,768 

 

 

59,947 

 

 

121,826 

Comprehensive income attributable to noncontrolling interest:

 

 

 

 

 

 

 

 

 

 

 

Net income

 

(263)

 

 

(56)

 

 

(586)

 

 

(90)

Foreign currency translation adjustments

 

251 

 

 

45 

 

 

(210)

 

 

(95)

Comprehensive income attributable to MSC Industrial

$

18,962 

 

$

54,757 

 

$

59,151 

 

$

121,641 

 


 

Page 7

MSC INDUSTRIAL DIRECT CO., INC. REPORTS FISCAL 2021 SECOND QUARTER RESULTS

 

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)





 

 

 

 

 



Twenty-Six Weeks Ended



February 27,

 

February 29,



2021

 

2020

Cash Flows from Operating Activities:

 

 

 

 

 

Net income

$

57,125 

 

$

121,008 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization    

 

34,571 

 

 

34,313 

Non-cash operating lease cost

 

7,537 

 

 

11,061 

Stock-based compensation

 

8,994 

 

 

8,178 

Loss on disposal of property, plant and equipment

 

345 

 

 

227 

Inventory write-down

 

30,091 

 

 

 —

Operating lease and fixed asset impairment due to restructuring

 

18,097 

 

 

 —

Provision for credit losses

 

4,280 

 

 

4,704 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(39,421)

 

 

(2,105)

Inventories

 

(18,647)

 

 

3,449 

Prepaid expenses and other current assets

 

(27,214)

 

 

(7,953)

Operating lease liabilities

 

(9,074)

 

 

(10,931)

Other assets

 

494 

 

 

1,375 

Accounts payable and accrued liabilities

 

51,756 

 

 

(7,511)

Total adjustments

 

61,809 

 

 

34,807 

Net cash provided by operating activities

 

118,934 

 

 

155,815 

Cash Flows from Investing Activities:

 

 

 

 

 

   Expenditures for property, plant and equipment

 

(19,954)

 

 

(25,737)

   Cash used in business acquisitions, net of cash acquired

 

 —

 

 

(2,286)

Net cash used in investing activities

 

(19,954)

 

 

(28,023)

Cash Flows from Financing Activities:

 

 

 

 

 

Repurchases of common stock

 

(3,519)

 

 

(3,208)

Payments of regular cash dividends

 

(83,685)

 

 

(83,181)

Payments of special cash dividends

 

(195,351)

 

 

(277,634)

Proceeds from sale of Class A Common Stock in connection with associate stock purchase plan

 

2,040 

 

 

2,202 

Proceeds from exercise of Class A Common Stock options

 

10,834 

 

 

13,390 

Borrowings under credit facilities

 

415,000 

 

 

389,600 

Borrowings under financing obligations

 

1,269 

 

 

 —

Payments under credit facilities

 

(350,000)

 

 

(156,000)

Contributions from non-controlling interest

 

 —

 

 

105 

Other, net

 

(1,392)

 

 

(696)

Net cash used in financing activities

 

(204,804)

 

 

(115,422)

Effect of foreign exchange rate changes on cash and cash equivalents

 

855 

 

 

211 

Net increase (decrease) in cash and cash equivalents

 

(104,969)

 

 

12,581 

Cash and cash equivalents – beginning of period

 

125,211 

 

 

32,286 

Cash and cash equivalents – end of period

$

20,242 

 

$

44,867 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

     Cash paid for income taxes

$

41,265 

 

$

37,286 

     Cash paid for interest

$

6,606 

 

$

5,636 









 


 

Page 8

MSC INDUSTRIAL DIRECT CO., INC. REPORTS FISCAL 2021 SECOND QUARTER RESULTS

 



Non-GAAP Financial Measures



·

Results Excluding Impairment Loss, Restructuring Costs, Inventory Write-downs, and Other Charges



To supplement MSC Industrial’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 gross profit, non-GAAP operating expenses, 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 impairment losses, restructuring costs, inventory write-downs related to certain PPE inventory, and other related 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 measures and should only be used to evaluate MSC Industrial’s results of operations in conjunction with the corresponding GAAP financial measures.



In calculating non-GAAP financial measures, we exclude impairment losses, restructuring costs, inventory write-downs related to certain PPE inventory, and other related 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 comparison 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.











































































 


 

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MSC INDUSTRIAL DIRECT CO., INC. REPORTS FISCAL 2021 SECOND QUARTER RESULTS

 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Information

Thirteen Weeks Ended February 27, 2021

(dollars in thousands, except percentages and per share data)



 

 

 

 

 

 

 

 

 

 

 

 

 

 



GAAP Financial Measure

 

 

Items Affecting Comparability

 

Non-GAAP Financial Measure



Total MSC Industrial

 

Inventory Write-down

 

Restructuring Costs

 

Legal Costs-impairment of prepaid for PPE

 

Adjusted Total MSC Industrial

Net Sales

$

773,995 

 

$

-

 

$

-

 

$

-

 

$

773,995 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

479,244 

 

 

30,091 

 

 

-

 

 

-

 

 

449,153 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

294,751 

 

 

(30,091)

 

 

-

 

 

-

 

 

324,842 

Gross Margin

 

38.1% 

 

 

-3.9%

 

 

-

 

 

-

 

 

42.0% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

245,115 

 

 

-

 

 

-

 

 

727 

 

 

244,388 

Operating Exp as % of Sales

 

31.7% 

 

 

-

 

 

-

 

 

0.1% 

 

 

31.6% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring Costs

 

21,615 

 

 

-

 

 

21,615 

 

 

-

 

 

-



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Operations

 

28,021 

 

 

(30,091)

 

 

(21,615)

 

 

(727)

 

 

80,454 

Operating Margin

 

3.6% 

 

 

-3.9%

 

 

-2.8%

 

 

-0.1%

 

 

10.4% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Expense

 

(3,622)

 

 

-

 

 

-

 

 

-

 

 

(3,622)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

24,399 

 

 

(30,091)

 

 

(21,615)

 

 

(727)

 

 

76,832 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

6,051 

 

 

(7,432)

 

 

(5,339)

 

 

(180)

 

 

19,002 

    Net income

 

18,348 

 

 

(22,659)

 

 

(16,276)

 

 

(547)

 

 

57,830 

    Net income attributable to noncontrolling interest

 

263 

 

 

-

 

 

-

 

 

-

 

 

263 

    Net income attributable to MSC Industrial

$

18,085 

 

$

(22,659)

 

$

(16,276)

 

$

(547)

 

$

57,567 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Diluted

$

0.32 

 

$

(0.40)

 

$

(0.29)

 

$

(0.01)

 

$

1.03 















































 


 

Page 10

MSC INDUSTRIAL DIRECT CO., INC. REPORTS FISCAL 2021 SECOND QUARTER RESULTS

 









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Information

Twenty-Six Weeks Ended February 27, 2021

(dollars in thousands, except percentages and per share data)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



GAAP Financial Measure

 

Items Affecting Comparability

 

Non-GAAP Financial Measure



Total MSC Industrial

 

Inventory Write-down

 

Restructuring Costs

 

Impairment Loss

 

Legal Costs - impairment of prepaid for PPE

 

Adjusted Total MSC Industrial

Net Sales

$

1,545,899 

 

$

-

 

$

 -

 

$

-

 

$

-

 

$

1,545,899 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

927,830 

 

 

30,091 

 

 

 -

 

 

-

 

 

-

 

 

897,739 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

618,069 

 

 

(30,091)

 

 

 -

 

 

-

 

 

-

 

 

648,160 

Gross Margin

 

40.0% 

 

 

-1.9%

 

 

 -

 

 

-

 

 

-

 

 

41.9% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

483,820 

 

 

-

 

 

-

 

 

-

 

 

1,020 

 

 

482,800 

Operating Exp as % of Sales

 

31.3% 

 

 

-

 

 

-

 

 

-

 

 

0.1% 

 

 

31.2% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment Loss

 

26,726 

 

 

-

 

 

-

 

 

26,726 

 

 

-

 

 

-



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring Costs

 

25,594 

 

 

-

 

 

25,594 

 

 

-

 

 

-

 

 

-



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Operations

 

81,929 

 

 

(30,091)

 

 

(25,594)

 

 

(26,726)

 

 

(1,020)

 

 

165,360 

Operating Margin

 

5.3% 

 

 

-1.9%

 

 

-1.7%

 

 

-1.7%

 

 

-0.1%

 

 

10.7% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Expense

 

(6,306)

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(6,306)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

75,623 

 

 

(30,091)

 

 

(25,594)

 

 

(26,726)

 

 

(1,020)

 

 

159,054 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

18,498 

 

 

(7,432)

 

 

(6,322)

 

 

(6,601)

 

 

(252)

 

 

39,105 

    Net income

 

57,125 

 

 

(22,659)

 

 

(19,272)

 

 

(20,125)

 

 

(768)

 

 

119,949 

    Net income attributable to noncontrolling interest

 

586 

 

 

-

 

 

-

 

 

-

 

 

-

 

 

586 

    Net income attributable to MSC Industrial

$

56,539 

 

$

(22,659)

 

$

(19,272)

 

$

(20,125)

 

$

(768)

 

$

119,363 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Diluted

$

1.01 

 

$

(0.40)

 

$

(0.34)

 

$

(0.36)

 

$

(0.01)

 

$

2.13 









































 


 

Page 11

MSC INDUSTRIAL DIRECT CO., INC. REPORTS FISCAL 2021 SECOND QUARTER RESULTS

 









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Information

Thirteen and Twenty-Six Weeks Ended February 29, 2020

(dollars in thousands, except percentages and per share data)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



GAAP Financial Measure

 

Items Affecting Comparability 1 

 

Non-GAAP Financial Measure



Total MSC Industrial

 

Restructuring Costs

 

MSC Industrial excluding Restructuring Costs



Thirteen
Weeks Ended

 

Twenty-Six
Weeks Ended

 

Thirteen
Weeks Ended

 

Twenty-Six
Weeks Ended

Thirteen
Weeks Ended

 

Twenty-Six
Weeks Ended



February 29, 2020

February 29, 2020

February 29, 2020

Net Sales

$

786,094 

 

$

1,609,695 

 

$

 -

 

$

 -

 

$

786,094 

 

$

1,609,695 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

455,042 

 

 

931,447 

 

 

 -

 

 

 -

 

 

455,042 

 

 

931,447 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

331,052 

 

 

678,248 

 

 

-

 

 

-

 

 

331,052 

 

 

678,248 

Gross Margin

 

42.1% 

 

 

42.1% 

 

 

-

 

 

-

 

 

42.1% 

 

 

42.1% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

251,441 

 

 

505,768 

 

 

 

 

 

 

 

 

251,441 

 

 

505,768 

Operating Exp as % of Sales

 

32.0% 

 

 

31.4% 

 

 

-

 

 

-

 

 

32.0% 

 

 

31.4% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring Costs

 

1,941 

 

 

4,512 

 

 

1,941 

 

 

4,512 

 

 

-

 

 

-



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Operations

 

77,670 

 

 

167,968 

 

 

(1,941)

 

 

(4,512)

 

 

79,611 

 

 

172,480 

Operating Margin

 

9.9% 

 

 

10.4% 

 

 

-0.2%

 

 

-0.3%

 

 

10.1% 

 

 

10.7% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Expense

 

(3,497)

 

 

(6,537)

 

 

-

 

 

-

 

 

(3,497)

 

 

(6,537)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

74,173 

 

 

161,431 

 

 

(1,941)

 

 

(4,512)

 

 

76,114 

 

 

165,943 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

18,617 

 

 

40,423 

 

 

(487)

 

 

(1,128)

 

 

19,104 

 

 

41,551 

    Net income

 

55,556 

 

 

121,008 

 

 

(1,454)

 

 

(3,384)

 

 

57,010 

 

 

124,392 

    Net income attributable to noncontrolling interest

 

56 

 

 

90 

 

 

-

 

 

-

 

 

56 

 

 

90 

    Net income attributable to MSC Industrial

$

55,500 

 

$

120,918 

 

$

(1,454)

 

$

(3,384)

 

$

56,954 

 

$

124,302 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Diluted

$

1.00 

 

$

2.18 

 

$

(0.03)

 

$

(0.06)

 

$

1.02 

 

$

2.24 



1Prior period adjustments include only restructuring costs. Items of note excluded from the current period results, including inventory write-downs, an impairment loss and associated legal costs, did not occur in the prior year periods.