MELVILLE, N.Y. and DAVIDSON, N.C., July
10, 2019 /PRNewswire/ --
FISCAL Q3 2019 HIGHLIGHTS
- Net sales of $866.5 million, a
4.6% YoY increase, with 260 basis points of acquisitive growth
- Operating income of $110.5
million, a decrease of 4.2% YoY
- Operating margin of 12.8% (13.2% excluding acquisitions*)
- Diluted EPS of $1.44
- Declared quarterly dividend of $0.75 per share, an increase of 19%
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 third quarter ended June 1,
2019.
Financial
Highlights1
|
|
FY19
Q3
|
|
FY18
Q3
|
|
Change
|
|
FY19
YTD
|
|
FY18
YTD
|
|
Change
|
Net Sales
|
|
$866.5
|
|
$828.3
|
|
4.6%
|
|
$2,521.1
|
|
$2,365.9
|
|
6.6%
|
Operating
Income
|
|
110.5
|
|
115.4
|
|
-4.2%
|
|
309.5
|
|
312.8
|
|
-1.0%
|
% of Net
Sales
|
|
12.8%
|
|
13.9%
|
|
|
|
12.3%
|
|
13.2%
|
|
|
Net Income
attributable to MSC Industrial
|
|
79.6
|
|
79.1
|
|
0.7%
|
|
222.3
|
|
256.2
|
4
|
-13.3%
|
Diluted
EPS
|
|
$1.44
|
2
|
$1.39
|
3
|
3.6%
|
|
$4.00
|
2
|
$4.51
|
3,
4
|
-11.3%
|
|
1In
millions except per share data or as otherwise noted.
2Based on 55.4 million and 55.6 million diluted shares
outstanding for FY19 Q3 and FY19 YTD, respectively.
3Based on 56.8 million and 56.7 million diluted shares
outstanding for FY18 Q3 and FY18 YTD, respectively. 4
Prior year-to-date period includes a tax benefit of
$41.2 million, or $0.72 per diluted share, from the
revaluation of the company's tax related balance sheet items and a
tax benefit of $16.9 million, or $0.30 per diluted share,
attributable to the lower effective tax rate required to bring the
first half of fiscal 2018 into alignment with the expected full
year rate.
|
Erik Gershwind, president and
chief executive officer, said, "Our fiscal third quarter
performance leaves us disappointed. We have seen a step-down in
demand since April, while the pricing environment remains uncertain
due to the overhang of tariffs and trade. In response to near-term
trends, we have implemented a three-part action plan to 1) improve
field sales execution and accelerate new account implementation; 2)
increase profitability of our supplier programs; and 3) drive
increased expense control and productivity."
Rustom Jilla, executive vice
president and chief financial officer, added, "In addition to
fiscal third quarter sales below our expectations, gross margin was
at the low end of guidance, as purchase cost and mix headwinds
offset solid price realization. Our operating expense to sales
ratio was slightly above our guidance and last year's third
quarter despite the actions taken to reduce headcount and other
expenses. All of this translated into earnings per share of
5 cents below our guidance midpoint.
As you saw this morning, the Board of Directors increased our
quarterly dividend, reflecting confidence in our balance sheet and
free cash flow, and a higher hurdle rate on acquisitions going
forward."
Gershwind concluded, "We are not happy with our current results
and, as a result, we are taking action. We are, however, encouraged
by progress in some critical areas. Our pace of account wins is
strong, our vending implementations are growing rapidly, and we are
deepening our commitment to our valued supplier partners. Finally,
our team is committed to executing our plan with urgency as we
continue our journey to becoming a mission critical partner on the
plant floor."
Dividend Declaration
The Company today announced that its board of directors declared
a quarterly dividend of $0.75 per
share, representing a 19% increase. The dividend is payable
on August 6, 2019, to shareholders of record on the close of
business on July 23, 2019. The ex-dividend date is
July 22, 2019.
Outlook
The Company expects net sales for the fourth quarter of fiscal
2019 to be between $835 million and
$851 million. At the midpoint,
average daily sales are expected to increase roughly 2.2% compared
to last year's fourth quarter. The Company expects diluted earnings
per share for the fourth quarter of fiscal 2019 to be between
$1.21 and $1.27.
Excluding acquisitions*, the Company expects net sales for the
fourth quarter of fiscal 2019 to be between $808 million and $824
million, with average daily sales at the midpoint expected
to increase roughly 1.0% compared to last year's fourth quarter.
The Company expects the impact from acquisitions to have a roughly
breakeven impact on diluted earnings per share for the fourth
quarter of fiscal 2019.
* An explanation and reconciliation of non-GAAP
financial measures to GAAP financial measures is presented in the
financial schedules of this press release.
Conference Call Information
MSC will host a conference call today at 8:30 a.m. EST to review the Company's fiscal 2019
third quarter results. The call, accompanying slides, and other
operational statistics may be accessed at:
http://investor.mscdirect.com. The conference call may also be
accessed at 1-877-443-5575 (U.S.), 1-855-669-9657 (Canada) or 1-412-902-6618 (international).
An online archive of the broadcast will be available until
July 17, 2019.
The Company's reporting date for fiscal 2019 fourth quarter and
full year results is scheduled for October
24, 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 1.7 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
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
|
|
|
June 1,
|
|
September
1,
|
|
2019
|
|
2018
|
ASSETS
|
(unaudited)
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
38,771
|
|
$
|
46,217
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
546,486
|
|
|
523,892
|
Inventories
|
|
560,800
|
|
|
518,496
|
Prepaid expenses and
other current assets
|
|
69,715
|
|
|
58,902
|
Total current
assets
|
|
1,215,772
|
|
|
1,147,507
|
Property, plant and
equipment, net
|
|
306,564
|
|
|
311,685
|
Goodwill
|
|
676,845
|
|
|
674,998
|
Identifiable
intangibles, net
|
|
119,778
|
|
|
122,724
|
Other
assets
|
|
5,389
|
|
|
31,813
|
Total
assets
|
$
|
2,324,348
|
|
$
|
2,288,727
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Short-term
debt
|
$
|
246,298
|
|
$
|
224,097
|
Accounts
payable
|
|
146,815
|
|
|
145,133
|
Accrued
liabilities
|
|
92,955
|
|
|
121,293
|
Total current
liabilities
|
|
486,068
|
|
|
490,523
|
Long-term
debt
|
|
284,691
|
|
|
311,236
|
Deferred income taxes
and tax uncertainties
|
|
99,714
|
|
|
99,714
|
Total
liabilities
|
|
870,473
|
|
|
901,473
|
Commitments and
Contingencies
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
|
Preferred
Stock
|
|
—
|
|
|
—
|
Class A common
stock
|
|
54
|
|
|
55
|
Class B common
stock
|
|
10
|
|
|
10
|
Additional paid-in
capital
|
|
675,674
|
|
|
657,749
|
Retained
earnings
|
|
1,394,551
|
|
|
1,325,822
|
Accumulated other
comprehensive loss
|
|
(22,730)
|
|
|
(19,634)
|
Class A treasury
stock, at cost
|
|
(599,116)
|
|
|
(576,748)
|
Total MSC Industrial
shareholders' equity
|
|
1,448,443
|
|
|
1,387,254
|
Noncontrolling
interest
|
|
5,432
|
|
|
—
|
Total
Equity
|
|
1,453,875
|
|
|
1,387,254
|
Total liabilities and
shareholders' equity
|
$
|
2,324,348
|
|
$
|
2,288,727
|
MSC INDUSTRIAL
SUPPLY CO. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Income
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
Thirty-Nine Weeks
Ended
|
|
June 1,
|
|
June 2,
|
|
June 1,
|
|
June 2,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net sales
|
$
|
866,546
|
|
$
|
828,345
|
|
$
|
2,521,147
|
|
$
|
2,365,893
|
Cost of goods
sold
|
|
497,891
|
|
|
467,344
|
|
|
1,442,693
|
|
|
1,332,600
|
Gross
profit
|
|
368,655
|
|
|
361,001
|
|
|
1,078,454
|
|
|
1,033,293
|
Operating
expenses
|
|
258,154
|
|
|
245,619
|
|
|
768,972
|
|
|
720,530
|
Income from
operations
|
|
110,501
|
|
|
115,382
|
|
|
309,482
|
|
|
312,763
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(4,565)
|
|
|
(3,532)
|
|
|
(13,160)
|
|
|
(10,319)
|
Interest
income
|
|
178
|
|
|
108
|
|
|
504
|
|
|
484
|
Other (expense)
income, net
|
|
(95)
|
|
|
(141)
|
|
|
(330)
|
|
|
(472)
|
Total other
expense
|
|
(4,482)
|
|
|
(3,565)
|
|
|
(12,986)
|
|
|
(10,307)
|
Income before
provision for income taxes
|
|
106,019
|
|
|
111,817
|
|
|
296,496
|
|
|
302,456
|
Provision for income
taxes
|
|
26,505
|
|
|
32,748
|
|
|
74,320
|
|
|
46,250
|
Net income
|
|
79,514
|
|
|
79,069
|
|
|
222,176
|
|
|
256,206
|
Less: Net income
(loss) attributable to noncontrolling interest
|
|
(87)
|
|
|
—
|
|
|
(81)
|
|
|
—
|
Net income
attributable to MSC Industrial
|
$
|
79,601
|
|
$
|
79,069
|
|
$
|
222,257
|
|
$
|
256,206
|
Per share data
attributable to MSC Industrial:
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.44
|
|
$
|
1.40
|
|
$
|
4.02
|
|
$
|
4.54
|
Diluted
|
$
|
1.44
|
|
$
|
1.39
|
|
$
|
4.00
|
|
$
|
4.51
|
Weighted average
shares used in computing
net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
55,158
|
|
|
56,420
|
|
|
55,266
|
|
|
56,382
|
Diluted
|
|
55,387
|
|
|
56,804
|
|
|
55,556
|
|
|
56,733
|
MSC INDUSTRIAL
SUPPLY CO. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Comprehensive Income
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
Thirty-Nine Weeks
Ended
|
|
June 1,
|
|
June 2,
|
|
June 1,
|
|
June 2,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income, as
reported
|
$
|
79,514
|
|
$
|
79,069
|
|
$
|
222,176
|
|
$
|
256,206
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
(2,576)
|
|
|
(889)
|
|
|
(3,242)
|
|
|
(1,705)
|
Comprehensive
income
|
|
76,938
|
|
|
78,180
|
|
|
218,934
|
|
|
254,501
|
Comprehensive
loss attributable to noncontrolling interest
|
|
170
|
|
|
—
|
|
|
227
|
|
|
—
|
Comprehensive income
attributable to MSC Industrial
|
$
|
77,108
|
|
$
|
78,180
|
|
$
|
219,161
|
|
$
|
254,501
|
MSC INDUSTRIAL
SUPPLY CO. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Thirty-Nine Weeks
Ended
|
|
June 1,
|
|
June 2,
|
|
2019
|
|
2018
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
Net income
|
$
|
222,176
|
|
$
|
256,206
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
48,539
|
|
|
47,133
|
Stock-based
compensation
|
|
12,167
|
|
|
11,275
|
Loss on disposal of
property, plant, and equipment
|
|
325
|
|
|
280
|
Provision for doubtful
accounts
|
|
9,013
|
|
|
4,956
|
Deferred income taxes
and tax uncertainties
|
|
—
|
|
|
(41,199)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
(30,180)
|
|
|
(34,434)
|
Inventories
|
|
(33,672)
|
|
|
(26,740)
|
Prepaid expenses and
other current assets
|
|
(10,841)
|
|
|
1,005
|
Other
assets
|
|
(609)
|
|
|
3,191
|
Accounts payable and
accrued liabilities
|
|
(29,718)
|
|
|
8,564
|
Total
adjustments
|
|
(34,976)
|
|
|
(25,969)
|
Net cash provided by
operating activities
|
|
187,200
|
|
|
230,237
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
Expenditures for property, plant and equipment
|
|
(35,956)
|
|
|
(30,794)
|
Proceeds from sale of available for sale securities
|
|
27,025
|
|
|
—
|
Cash used in business acquisitions, net of cash received
|
|
(11,625)
|
|
|
(85,845)
|
Net cash used in
investing activities
|
|
(20,556)
|
|
|
(116,639)
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
Repurchases of common
stock
|
|
(84,464)
|
|
|
(25,384)
|
Payments of cash
dividends
|
|
(104,308)
|
|
|
(92,633)
|
Proceeds from sale of
Class A common stock in connection with associate stock purchase
plan
|
|
3,472
|
|
|
3,398
|
Proceeds from exercise
of Class A common stock options
|
|
15,527
|
|
|
23,135
|
Borrowings under Shelf
Facility Agreement
|
|
—
|
|
|
50,000
|
Borrowings under the
revolving credit facilities
|
|
358,000
|
|
|
172,000
|
Payments under the
revolving credit facilities
|
|
(336,000)
|
|
|
(220,000)
|
Contributions from
non-controlling interest
|
|
918
|
|
|
—
|
Payments on capital
lease and financing obligations
|
|
(28,007)
|
|
|
(829)
|
Other, net
|
|
903
|
|
|
604
|
Net cash used in
financing activities
|
|
(173,959)
|
|
|
(89,709)
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(131)
|
|
|
21
|
Net increase
(decrease) in cash and cash equivalents
|
|
(7,446)
|
|
|
23,910
|
Cash and cash
equivalents – beginning of year
|
|
46,217
|
|
|
16,083
|
Cash and cash
equivalents – end of year
|
$
|
38,771
|
|
$
|
39,993
|
Supplemental
Disclosure of Cash Flow Information:
|
|
|
|
|
|
Cash paid for income
taxes
|
$
|
69,413
|
|
$
|
76,753
|
Cash paid for
interest
|
$
|
10,791
|
|
$
|
8,231
|
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
Thirty-Nine Weeks Ended June 1, 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
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
$
|
866,546
|
|
$
|
2,521,147
|
|
$
|
28,241
|
|
$
|
65,842
|
|
$
|
838,305
|
|
$
|
2,455,305
|
|
|
4.6
|
%
|
|
7.1
|
%
|
|
2.0
|
%
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
$
|
368,655
|
|
$
|
1,078,454
|
|
$
|
6,967
|
|
$
|
18,375
|
|
$
|
361,688
|
|
$
|
1,060,079
|
|
|
42.5
|
%
|
|
42.8
|
%
|
|
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
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
$
|
258,154
|
|
$
|
768,972
|
|
$
|
7,010
|
|
$
|
17,521
|
|
$
|
251,144
|
|
$
|
751,451
|
|
|
29.8
|
%
|
|
30.5
|
%
|
|
30.0
|
%
|
|
30.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
$
|
110,501
|
|
$
|
309,482
|
|
$
|
(43)
|
|
$
|
854
|
|
$
|
110,544
|
|
$
|
308,628
|
|
|
12.8
|
%
|
|
12.3
|
%
|
|
13.2
|
%
|
|
12.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Measure
|
|
Items Affecting
Comparability
|
|
Non-GAAP
Measure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes
|
|
Acquisitions
|
|
Provision for income
taxes,
excluding Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
26,505
|
|
$
|
74,320
|
|
$
|
(259)
|
|
$
|
(466)
|
|
$
|
26,764
|
|
$
|
74,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Measure
|
|
Items Affecting
Comparability
|
|
Non-GAAP
Measure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
Acquisitions
|
|
Net Income,
excluding
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
79,514
|
|
$
|
222,176
|
|
$
|
(678)
|
|
$
|
(1,300)
|
|
$
|
80,192
|
|
$
|
223,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Measure
|
|
Items Affecting
Comparability
|
|
Non-GAAP
Measure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Attributable
to
Noncontrolling Interest
|
|
Acquisitions
|
|
Net Loss Attributable
to
Noncontrolling Interest,
excluding Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(87)
|
|
$
|
(81)
|
|
$
|
(87)
|
|
$
|
(81)
|
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Measure
|
|
Items Affecting
Comparability
|
|
Non-GAAP
Measure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to MSC
Industrial
|
|
Acquisitions
|
|
Net income
attributable to MSC
Industrial, excluding
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
79,601
|
|
$
|
222,257
|
|
$
|
(591)
|
|
$
|
(1,219)
|
|
$
|
80,192
|
|
$
|
223,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Measure
|
|
Items Affecting
Comparability
|
|
Non-GAAP
Measure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per
Share
|
|
Acquisitions
|
|
Diluted Earnings Per
Share,
excluding Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
Thirty-Nine
Weeks Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
June 1,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.44
|
|
$
|
4.00
|
|
$
|
(0.01)
|
|
$
|
(0.02)
|
|
$
|
1.45
|
|
$
|
4.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSC INDUSTRIAL SUPPLY
CO. AND SUBSIDIARIES
|
|
Reconciliation of
GAAP and Non-GAAP Information
|
|
Guidance for Thirteen
Weeks Ended August 31, 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
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
$
|
843.4
|
|
$
|
27.7
|
|
$
|
815.7
|
|
2.2
|
%
|
|
1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
$
|
352.1
|
|
$
|
7.3
|
|
$
|
344.8
|
|
41.8
|
%
|
|
42.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
$
|
257.8
|
|
$
|
6.9
|
|
$
|
250.9
|
|
30.6
|
%
|
|
30.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
$
|
94.4
|
|
$
|
0.5
|
|
$
|
93.9
|
|
11.2
|
%
|
|
11.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Measure
|
|
Items Affecting
Comparability
|
|
Non-GAAP
Measure
|
|
|
|
|
|
|
Net Income
|
|
Acquisitions
|
|
Net
Income,
excluding
Acquisitions
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
Thirteen Weeks
Ended
|
|
Thirteen Weeks
Ended
|
|
|
|
|
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
|
|
|
|
|
|
$
|
68.6
|
|
$
|
(0.3)
|
|
$
|
68.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
August 31,
2019
|
|
August 31,
2019
|
|
August 31,
2019
|
|
|
|
|
|
|
$
|
1.24
|
|
$
|
-
|
|
$
|
1.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The data in
the above tables represent the midpoint of management's guidance;
see note regarding forward-looking statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/msc-reports-fiscal-2019-third-quarter-results-300882264.html
SOURCE MSC Industrial Supply Co.