MELVILLE, N.Y. and DAVIDSON, N.C., April
10, 2019 /PRNewswire/ --
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
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
2019 second quarter ended March 2,
2019.
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Financial
Highlights1
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FY19
Q2
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FY18
Q2
|
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Change
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FY19
YTD
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FY18
YTD
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Change
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Net Sales
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$823.0
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$769.0
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7.0%
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$1,654.6
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$1,537.5
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7.6%
|
Operating
Income
|
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96.0
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98.1
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-2.2%
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199.0
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197.4
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0.8%
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% of Net
Sales
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11.7%
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12.8%
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12.0%
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12.8%
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Net Income
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68.4
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117.6
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4
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-41.8%
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142.7
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177.1
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4
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-19.5%
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Diluted
EPS
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$1.24
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.2
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$2.06
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.3,4
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-39.8%
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$2.56
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.2
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$3.12
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.3,4
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-17.9%
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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.
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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."
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. EDT 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.
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.
MSC INDUSTRIAL
SUPPLY CO. AND SUBSIDIARIES
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Condensed
Consolidated Balance Sheets
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(In
thousands)
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|
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March 2,
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September
1,
|
|
2019
|
|
2018
|
ASSETS
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(unaudited)
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Current
Assets:
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Cash and cash
equivalents
|
$
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31,167
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$
|
46,217
|
Accounts receivable,
net of allowance for doubtful accounts
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|
540,756
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|
|
523,892
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Inventories
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|
572,593
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|
518,496
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Prepaid expenses and
other current assets
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99,387
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|
58,902
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Total current
assets
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1,243,903
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|
1,147,507
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Property, plant and
equipment, net
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307,310
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311,685
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Goodwill
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677,501
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|
674,998
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Identifiable
intangibles, net
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|
123,062
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|
|
122,724
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Other
assets
|
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6,340
|
|
|
31,813
|
Total
assets
|
$
|
2,358,116
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$
|
2,288,727
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|
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|
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LIABILITIES AND
SHAREHOLDERS' EQUITY
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Current
Liabilities:
|
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Short-term
debt
|
$
|
308,562
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$
|
224,097
|
Accounts
payable
|
|
162,673
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|
|
145,133
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Accrued
liabilities
|
|
96,656
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|
|
121,293
|
Total current
liabilities
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|
567,891
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|
|
490,523
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Long-term
debt
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|
284,666
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|
|
311,236
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Deferred income taxes
and tax uncertainties
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|
99,714
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|
|
99,714
|
Total
liabilities
|
|
952,271
|
|
|
901,473
|
Commitments and
Contingencies
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|
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|
Shareholders'
Equity:
|
|
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|
Preferred
Stock
|
|
—
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|
|
—
|
Class A common
stock
|
|
54
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|
|
55
|
Class B common
stock
|
|
10
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|
|
10
|
Additional paid-in
capital
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|
670,047
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|
657,749
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Retained
earnings
|
|
1,349,972
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|
|
1,325,822
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Accumulated other
comprehensive loss
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|
(20,237)
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|
|
(19,634)
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Class A treasury
stock, at cost
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|
(599,603)
|
|
|
(576,748)
|
Total MSC Industrial
shareholders' equity
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|
1,400,243
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|
1,387,254
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Noncontrolling
interest
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|
5,602
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|
|
—
|
Total Shareholders'
Equity
|
|
1,405,845
|
|
|
1,387,254
|
Total liabilities and
shareholders' equity
|
$
|
2,358,116
|
|
$
|
2,288,727
|
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
|
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
|
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
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
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SOURCE MSC Industrial Supply Co.