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): March 30, 2022

_________________________________________________

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.)

515 Broadhollow Road, Suite 1000, 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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.001 per share	MSM	New York Stock Exchange

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 March 30, 2022, MSC Industrial Direct Co., Inc. issued a press release announcing financial results for its fiscal 2022 second quarter ended February 26, 2022. 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, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed to be “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 to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits:
99.1	Press Release, dated March 30, 2022, issued by MSC Industrial Direct Co., Inc.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

‎

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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.

	MSC INDUSTRIAL DIRECT CO., INC.
Date: March 30, 2022	By:	/s/ KRISTEN ACTIS-GRANDE
	Name:	Kristen Actis-Grande
	Title:	Executive Vice President and Chief Financial Officer

-3-

EX-99.1

Exhibit 99.1

NEWS

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2022SECOND QUARTER RESULTS

FISCAL 2022Q2HIGHLIGHTS

· Net sales of $862.5 million, an increase of 11.4% (7.9% on an average daily sales basis) compared to the prior fiscal year quarter

· Gross margin of 42.5% vs. 38.1%, or 42.0% on an adjusted basis in the prior fiscal year quarter1

· Operating margin of 11.3%, or 11.6%  excluding restructuring and other costs1,2

· Diluted EPS of $1.25vs. $0.32 in the prior fiscal year quarter

· Adjusted diluted EPS of $1.29 vs. $1.03 in the prior fiscal year quarter, a 25.2% increase1

MELVILLE, NY and DAVIDSON, NC, MARCH 30, 2022 - MSC INDUSTRIAL SUPPLY CO. (NYSE: MSM),"MSC" 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 2022second quarter ended February  26, 2022.  

Financial Highlights3	FY22 Q2		FY21 Q2		Change	FY22 YTD		FY21 YTD		Change
Net Sales	$862.5		$774.0		11.4%	$1,711.1		$1,545.9		10.7%
Income from Operations	$97.2		$28.0		246.8%	$187.9		$81.9		129.3%
Operating Margin	11.3%		3.6%			11.0%		5.3%
Net Income attributable to MSC	$69.9		$18.1		286.7%	$136.0		$56.5		140.5%
Diluted EPS	$1.25	4	0.32	5	290.6%	$2.43	4	$1.01	5	140.6%

Adjusted Financial Highlights1,3	FY22 Q2		FY21 Q2		Change	FY22 YTD		FY21 YTD		Change
Net Sales	$862.5		$774.0		11.4%	$1,711.1		$1,545.9		10.7%
Income from Operations	$100.3		$80.5		24.7%	$196.3		$165.4		18.7%
Operating Margin	11.6%		10.4%			11.5%		10.7%
Net Income attributable to MSC	$72.3		$57.6		25.6%	$142.2		$119.4		19.2%
Diluted EPS	$1.29	4	$1.03	5	25.2%	$2.54	4	$2.13	5	19.2%

1  Represents a non-GAAP financial measure and reconciliations to the most directly comparable GAAP financial measure is presented in the schedules accompanying this press release.

2Reflects severance and separation costs, consulting costs and exit-related costs to better align our strategy.

3In millions except percentages and per share data or as otherwise noted.

4Based on 56.0 million and 55.9 million weighted average diluted shares outstanding for FY22 Q2 and FY22 YTD respectively.

5Based on 56.1 million and 56.0 million weighted average diluted shares outstanding for FY21 Q2 and FY21 YTD respectively.

Erik Gershwind, President and Chief Executive Officer, said, “I am excited by the growing momentum inside the Company to accelerate market share capture and improve profitability. We achieved double-digit top-line growth despite Covid-related disruptions during the first two weeks of January. Our growth initiatives are in high gear and the productivity improvements we deliver to our customers are resonating. Gross margin countermeasures, including a late January price increase, are working well and give us confidence that we can keep gross margins flat or better for full year fiscal 2022 versus fiscal 2021.”

Kristen Actis-Grande, Executive Vice President and Chief Financial Officer, added, “Strong top line growth combined with gross margin execution and Mission Critical cost savings resulted in 11.6% adjusted operating margin and 22.4% adjusted incremental margin over the prior year fiscal second quarter. With the building momentum, we are adding a low double-digit growth tier to our fiscal 2022 annual adjusted operating margin framework with a corresponding annual adjusted operating margin between 12.5% and 13.1%. Should recent trends continue, we expect to be in that range.”

Gershwind concluded, “I am pleased with the progress I see throughout the Company. We are already at or above our long-range target of growing sales by at least 400 basis points above the Industrial Production Index and are well on our way to achieving ROIC in the high-teens by the end of fiscal 2023.”

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2022 SECOND QUARTER RESULTS

Conference Call Information

MSC will host a conference call today at 8:30 a.m. EDT to review the Company’s fiscal 2022second 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 6, 2022.

The Company’s reporting date for fiscal 2022 third quarter results is scheduled for June29, 2022.

Contact Information

Investors:	Media:
John G. Chironna	Paul Mason
Vice President, Investor Relations and Treasurer	Director, Corporate Communications
(704) 987-5231	(336)  817-2131

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  2.0 million products, inventory management and other supply chain solutions, and deep expertise from over 80 years of working with customers across industries. Our experienced team of more than 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 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. In addition, any 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:  the impact of the COVID-19 pandemic on our sales, operations and supply chain; general economic conditions in the markets in which we operate, including conditions resulting from the COVID-19 pandemic; 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 being a spot-buy supplier to a mission-critical partner to our customers; our ability to realize the expected cost savings and benefits from our restructuring activities and structural cost reductions; the retention of key personnel; volatility in commodity and energy prices, the impact of prolonged periods of low, high and rapid inflation, and fluctuations in interest rates; the credit risk of our customers, including changes in credit risk as a result of the COVID-19 pandemic, higher inflation and fluctuations in interest rates; the 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, labor shortages or other business interruptions (including those due to extreme weather conditions or as a result of the COVID-19 pandemic) 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; the retention of qualified sales and customer service personnel and metalworking specialists; the risk of loss of key suppliers or contractors or key brands or supply chain disruptions, including due to import restrictions resulting from the COVID-19 pandemic or global geopolitical conditions; 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; the interest rate uncertainty due to the London InterBank Offered Rate (“LIBOR”) reform; the failure to comply with applicable environmental, health and safety laws and regulations, including government action in response to the COVID-19 pandemic, and other laws applicable to our business; the outcome of government or regulatory proceedings or future litigation; goodwill and intangible assets recorded resulting from our acquisitions could be impaired; our common stock price may be volatile due to factors outside of our control; and our principal shareholders exercise significant control over us, which may result in our taking actions or failing to take actions which our other shareholders do not prefer. 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 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.

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2022 SECOND QUARTER RESULTS

MSC INDUSTRIAL DIRECT CO., INC.

Condensed Consolidated Balance Sheets

(In thousands)

	February 26,		August 28,
	2022		2021
ASSETS		(unaudited)
Current Assets:
Cash and cash equivalents	$	41,754	$	40,536
Accounts receivable, net of allowance for credit losses		619,913		560,373
Inventories		657,710		624,169
Prepaid expenses and other current assets		97,435		89,167
Total current assets		1,416,812		1,314,245
Property, plant and equipment, net		300,232		298,416
Goodwill		692,482		692,704
Identifiable intangibles, net		96,061		101,854
Operating lease assets		51,602		49,011
Other assets		7,726		5,885
Total assets	$	2,564,915	$	2,462,115
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Current portion of debt including obligations under finance leases	$	251,269	$	202,433
Current portion of operating lease liabilities		13,417		13,927
Accounts payable		191,436		186,330
Accrued expenses and other current liabilities		141,049		159,238
Total current liabilities		597,171		561,928
Long-term debt including obligations under finance leases		584,182		583,616
Noncurrent operating lease liabilities		39,410		36,429
Deferred income taxes and tax uncertainties		108,851		108,827
Other noncurrent liabilities		—		9,443
Total liabilities		1,329,614		1,300,243
Commitments and Contingencies
Shareholders’ Equity:
Preferred Stock		—		—
Class A Common Stock		48		48
Class B Common Stock		9		9
Additional paid-in capital		766,156		740,867
Retained earnings		584,283		532,315
Accumulated other comprehensive loss		(19,121)		(17,984)
Class A treasury stock, at cost		(107,401)		(104,384)
Total MSC shareholders’ equity		1,223,974		1,150,871
Noncontrolling interest	$	11,327	$	11,001
Total shareholders’ equity		1,235,301		1,161,872
Total liabilities and shareholders’ equity	$	2,564,915	$	2,462,115

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2022 SECOND QUARTER RESULTS

MSC INDUSTRIAL DIRECT CO., INC.

Condensed Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	February 26,		February 27,		February 26,		February 27,
	2022		2021		2022		2021
Net sales	$	862,522	$	773,995	$	1,711,069	$	1,545,899
Cost of goods sold		496,247		479,244		992,198		927,830
Gross profit		366,275		294,751		718,871		618,069
Operating expenses		265,973		245,115		522,554		483,820
Impairment loss		—		—		—		26,726
Restructuring and other costs		3,134		21,615		8,417		25,594
Income from operations		97,168		28,021		187,900		81,929
Other income (expense):
Interest expense		(3,617)		(3,580)		(7,345)		(6,936)
Interest income		21		16		40		37
Other income (expense), net		91		(58)		(322)		593
Total other expense		(3,505)		(3,622)		(7,627)		(6,306)
Income before provision for income taxes		93,663		24,399		180,273		75,623
Provision for income taxes		23,509		6,051		43,862		18,498
Net income		70,154		18,348		136,411		57,125
Less: Net income attributable to noncontrolling interest		223		263		413		586
Net income attributable to MSC Industrial	$	69,931	$	18,085	$	135,998	$	56,539
Per share data attributable to MSC Industrial:
Net income per common share:
Basic	$	1.25	$	0.32	$	2.44	$	1.01
Diluted	$	1.25	$	0.32	$	2.43	$	1.01
Weighted average shares used in computing    net income per common share:
Basic		55,799		55,838		55,664		55,749
Diluted		55,971		56,133		55,945		56,019

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2022 SECOND QUARTER RESULTS

MSC INDUSTRIAL DIRECT CO., INC.

Condensed Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	February 26,		February 27,		February 26,		February 27,
	2022		2021		2022		2021
Net income, as reported	$	70,154	$	18,348	$	136,411	$	57,125
Other comprehensive income, net of tax:
Foreign currency translation adjustments		3,768		626		(1,224)		2,822
Comprehensive income		73,922		18,974		135,187		59,947
Comprehensive income attributable to noncontrolling interest:
Net income		(223)		(263)		(413)		(586)
Foreign currency translation adjustments		(824)		251		87		(210)
Comprehensive income attributable to MSC Industrial	$	72,875	$	18,962	$	134,861	$	59,151

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2022 SECOND QUARTER RESULTS

MSC INDUSTRIAL DIRECT CO., INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Twenty-Six Weeks Ended
	February 26,		February 27,
	2022		2021
Cash Flows from Operating Activities:
Net income	$	136,411	$	57,125
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		34,985		34,571
Non-cash operating lease cost		8,012		7,537
Stock-based compensation		10,189		8,994
Loss on disposal of property, plant and equipment		230		345
Inventory write-down		—		30,091
Operating lease and fixed asset impairment due to restructuring		—		18,097
Provision for credit losses		4,245		4,280
Deferred income taxes		(341)		—
Changes in operating assets and liabilities:
Accounts receivable		(64,293)		(39,421)
Inventories		(34,024)		(18,647)
Prepaid expenses and other current assets		(8,358)		(27,214)
Operating lease liabilities		(8,136)		(9,074)
Other assets		(1,492)		494
Accounts payable and accrued liabilities		(20,007)		51,756
Total adjustments		(78,990)		61,809
Net cash provided by operating activities		57,421		118,934
Cash Flows from Investing Activities:
Expenditures for property, plant and equipment		(31,179)		(19,954)
Net cash used in investing activities		(31,179)		(19,954)
Cash Flows from Financing Activities:
Repurchases of common stock		(4,813)		(3,519)
Payments of regular cash dividends		(83,586)		(83,685)
Payments of special cash dividends		—		(195,351)
Proceeds from sale of Class A Common Stock in connection with associate stock purchase plan		2,259		2,040
Proceeds from exercise of Class A Common Stock options		12,053		10,834
Borrowings under credit facilities		184,000		415,000
Payments under credit facilities		(134,500)		(350,000)
Borrowings under financing obligations		1,058		1,269
Other, net		(1,387)		(1,392)
Net cash used in financing activities		(24,916)		(204,804)
Effect of foreign exchange rate changes on cash and cash equivalents		(108)		855
Net increase (decrease) in cash and cash equivalents		1,218		(104,969)
Cash and cash equivalents – beginning of period		40,536		125,211
Cash and cash equivalents – end of period	$	41,754	$	20,242
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes	$	63,909	$	41,265
Cash paid for interest	$	7,068	$	6,606

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2022 SECOND QUARTER RESULTS

Non-GAAP Financial Measures

· Results Excluding Impairment Loss (prior year), Inventory Write-downs (prior year), Legal Costs (prior year), Restructuring and Other Costs, and Other Charges

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 gross profit, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP incremental margin, non-GAAP provision for income taxes, non-GAAP net income and non-GAAP diluted earnings per share, that exclude impairment loss (prior year), inventory write-downs (prior year), legal costs for impairment of prepaid PPE (prior year), restructuring and other costs, 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’s results of operations in conjunction with the corresponding GAAP financial measures.

In calculating non-GAAP financial measures, we exclude impairment loss (prior year), inventory write-downs (prior year), legal costs for impairment of prepaid PPE (prior year), restructuring and other costs, 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 SUPPLY CO. REPORTS FISCAL 2022 SECOND QUARTER RESULTS

MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Thirteen and Twenty-Six Weeks Ended February 26, 2022
(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
	Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended		Thirteen Weeks Ended		Twenty-Six Weeks Ended
Net Sales	$	862,522	$	1,711,069	$	-	$	-	$	862,522	$	1,711,069
Cost of Goods Sold		496,247		992,198		-		-		496,247		992,198
Gross Profit		366,275		718,871		-		-		366,275		718,871
Gross Margin		42.5%		42.0%						42.5%		42.0%
Operating Expenses		265,973		522,554		-		-		265,973		522,554
Operating Exp as % of Sales		30.8%		30.5%						30.8%		30.5%
Restructuring and Other Costs		3,134		8,417		3,134		8,417		-		-
Income from Operations		97,168		187,900		(3,134)		(8,417)		100,302		196,317
Operating Margin		11.3%		11.0%		-0.4%		-0.5%		11.6%		11.5%
Incremental Margin		78.1%		64.2%						22.4%		18.7%
Total Other Expense		(3,505)		(7,627)		-		-		(3,505)		(7,627)
Income before provision for income taxes		93,663		180,273		(3,134)		(8,417)		96,797		188,690
Provision for income taxes		23,509		43,862		(787)		(2,178)		24,296		46,040
Net income		70,154		136,411		(2,347)		(6,239)		72,501		142,650
Net income attributable to noncontrolling interest		223		413		-		-		223		413
Net income attributable to MSC Industrial	$	69,931	$	135,998	$	(2,347)	$	(6,239)	$	72,278	$	142,237
Net income per common share:
Diluted	$	1.25	$	2.43	$	(0.04)	$	(0.11)	$	1.29	$	2.54
*Individual amounts may not agree to the total due to rounding.

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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2022 SECOND QUARTER RESULTS

MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Thirteen Weeks Ended February 27, 2021
(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 and Other 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 and Other 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
*Individual amounts may not agree to the total due to rounding.

Page 10

MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2022 SECOND QUARTER RESULTS

MSC INDUSTRIAL DIRECT CO., INC.
Reconciliation of GAAP and Non-GAAP Financial Information
Twenty-Six Weeks Ended February 27, 2021
(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 and Other 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 and Other 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
*Individual amounts may not agree to the total due to rounding.

XML

Document And Entity Information	Mar. 30, 2022
Cover [Abstract]
Document Type	8-K
Document Period End Date	Mar. 30, 2022
Entity Registrant Name	MSC INDUSTRIAL DIRECT CO., INC.
Entity Incorporation, State or Country Code	NY
Entity File Number	1-14130
Entity Tax Identification Number	11-3289165
Entity Address, Address Line One	515 Broadhollow Road
Entity Address, Address Line Two	Suite 1000
Entity Address, City or Town	Melville
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11747
City Area Code	516
Local Phone Number	812-2000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A Common Stock, par value $0.001 per share
Trading Symbol	MSM
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001003078