Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MSC INDUSTRIAL DIRECT CO., INC.

(MSM)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

MSC Industrial Direct : Reports Fiscal 2021 Third Quarter Results

07/08/2021 | 01:12pm EDT

NEWS

MSC INDUSTRIAL REPORTS FISCAL 2021 THIRD QUARTER RESULTS

FISCAL 2021 Q3 HIGHLIGHTS

  • Net sales of $866.3 million, a 3.8% increase from the prior year quarter (2.2% on an average daily sales basis)
  • $20.8 million loss recovery related to the nitrile glove impairment originally recorded in the fiscal first quarter
  • Operating income of $128.6 million, or $109.5 million excluding loss recovery, restructuring and other costs1
  • Operating margin of 14.8%, or 12.6% excluding the adjustments described above1
  • Diluted EPS of $1.68 vs. $1.40 in the prior year quarter; Adjusted diluted EPS of $1.42, same as prior year1
  • Repurchased 507,000 shares during the quarter

MELVILLE, NY and DAVIDSON, NC, JULY 7, 2021 - MSC INDUSTRIAL DIRECT CO., INC. (NYSE: MSM), "MSC Industrial" or the "Company", a leading North American distributor of metalworking and maintenance, repair and operations (MRO) products and services, today reported financial results for its fiscal 2021 third quarter ended May 29, 2021.

Financial Highlights2

Net Sales

Income from Operations

Operating Margin

Net Income attributable to MSC Industrial

FY21 Q3

FY20 Q3

Change

FY21 YTD

FY20 YTD

Change

3.8%

$2,412.2

$2,444.7

-1.3%

$866.3

$835.0

$128.6

$109.9

17.1%

$210.6

$277.8

-24.2%

14.8%

13.2%

8.7%

11.4%

$94.4

$77.7

21.5%

$151.0

$198.6

-24.0%

Diluted EPS

$1.68

3

1.40

4

20.0%

$2.69

3

$3.57

4

-24.6%

Adjusted Financial Highlights1,2

Unadjusted Net Sales

Adjusted Income from Operations Adjusted Operating Margin Adjusted Net Income attributable to MSC Industrial

Adjusted Diluted EPS

FY21 Q3

FY20 Q3

Change

FY21 YTD

FY20 YTD

Change

$866.3

$835.0

3.8%

$2,412.2

$2,444.7

-1.3%

$109.5

$111.2

-1.5%

$274.9

$283.7

-3.1%

12.6%

13.3%

11.4%

11.6%

$80.2

$78.7

1.8%

$199.5

$203.0

-1.7%

3

4

$1.42

$1.42

0.0%

$3.55

3

$3.65

4

-2.7%

  1. Represents a non-GAAP financial measure. An explanation and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure are presented in schedules accompanying this press release.
  2. In millions except percentages and per share data or as otherwise noted.
  3. Based on 56.4 million and 56.1 million diluted shares outstanding for FY21 Q3 and FY21 YTD respectively.
  4. Based on 55.6 million diluted shares outstanding for both FY20 Q3 and FY20 YTD.

Erik Gershwind, President and Chief Executive Officer, said, "The economic environment improved significantly and most of our manufacturing end markets turned positive during our fiscal third quarter. Total company sales returned to growth and, while muted by PPE-related comparisons, our non-safety and non-janitorial product lines grew 21 percent. Execution on our Mission Critical initiatives continued at a high level and we have lifted our expectations both in terms of gross and net savings for fiscal 2021."

Kristen Actis-Grande, Executive Vice President and Chief Financial Officer, added, "Average daily sales growth turned positive during our fiscal third quarter and was 2.2 percent. Solid execution of our March price increase contributed to a lift in our gross margin sequentially to 42.3 percent. On our Mission Critical programs, we delivered another $12 million of gross savings, bringing our cumulative savings for fiscal 2021 to $29 million, against our original goal of $25 million. We also reinvested approximately $7 million into growth programs, bringing our cumulative investment for fiscal 2021 to roughly $15 million. In total, we now expect to drive gross savings of $40 million and to invest roughly $25 million in fiscal 2021, such that we will achieve net savings above our original goal of $10 million for the year. Finally, we continued to use our strong balance sheet to support our customers with higher inventory levels and our shareholders through our share buyback program."

Gershwind concluded, "We are gaining steam internally and our end markets are strengthening. Strong execution on our Mission Critical initiatives will further support our share capture programs and deliver additional savings over the next two

Page - 2 -

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

years and beyond. We remain on-track to achieve our goals of growing sales 400 basis points above the Industrial Production Index and returning ROIC to the high teens by the end of fiscal 2023."

Conference Call Information

MSC Industrial will host a conference call today at 8:30 a.m. EDT to review the Company's fiscal 2021 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 under the events section at http://investor.mscdirect.com for one year.

The Company's reporting date for fiscal 2021 fourth quarter and full year results is scheduled for October 20, 2021.

Contact Information

Investors:

Media:

John G. Chironna

Paul Mason

Vice President, Investor Relations and Treasurer

Director, Corporate Communications

(704) 987-5231

(704) 987-5313

About MSC Industrial Direct Co., Inc.

MSC Industrial Direct Co., Inc. (NYSE:MSM) is a leading North American distributor of metalworking and maintenance, repair and operations (MRO) products and services. We help our customers drive greater productivity, profitability and growth with approximately 1.9 million products, inventory management and other supply chain solutions, and deep expertise from 80 years of working with customers across industries. Our experienced team of more than 6,200 associates is dedicated to working side by side with our customers to help drive results for their businesses - from keeping operations running efficiently today to continuously rethinking, retooling, and optimizing for a more productive tomorrow. For more information on MSC Industrial, please visit mscdirect.com.

Cautionary Note Regarding Forward-Looking Statements

Statements in this press release may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including statements about the future impact of COVID-19 on our business operations, results of operations and financial condition, expected future results, expected benefits from our investment and strategic plans and other initiatives, and expected future growth, profitability and return on invested capital, are forward-looking statements. The words "will,", "may," "believes," "anticipates," "thinks," "expects," "estimates," "plans," "intends," and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The inclusion of any statement in this press release does not constitute an admission by MSC Industrial or any other person that the events or circumstances described in such statement are material. Factors that could cause actual results to differ materially from those in forward-looking statements include the following, many of which are and will be amplified by the COVID-19 pandemic: the 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 credit risk of our customers, including changes in credit risk as a result of the COVID-19 pandemic; 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 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 key brands or supply chain disruptions, including due to import restrictions resulting from the COVID-19 pandemic; changes to governmental trade policies, including the impact from significant import restrictions or tariffs; 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 that are in the best interests of other shareholders. 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.

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

Page - 3 -

MSC INDUSTRIAL DIRECT CO., INC.

Condensed Consolidated Balance Sheets

(In thousands)

May 29,

August 29,

2021

2020

ASSETS

(Unaudited)

Current Assets:

Cash and cash equivalents

$

27,429

$

125,211

Accounts receivable, net of allowance for credit losses

564,963

491,743

Inventories

598,328

543,106

Prepaid expenses and other current assets

116,947

77,710

Total current assets

1,307,667

1,237,770

Property, plant and equipment, net

296,200

301,979

Goodwill

679,920

677,579

Identifiable intangibles, net

97,610

104,873

Operating lease assets

39,401

56,173

Other assets

3,520

4,056

Total assets

$

2,424,318

$

2,382,430

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:

Current portion of debt including obligations under finance leases

$

412,547

$

122,248

Current portion of operating lease liabilities

14,570

21,815

Accounts payable

195,858

125,775

Accrued expenses and other current liabilities

145,841

138,895

Total current liabilities

768,816

408,733

Long-term debt including obligations under finance leases

346,458

497,018

Noncurrent operating lease liabilities

26,008

34,379

Deferred income taxes and tax uncertainties

121,715

121,727

Other noncurrent liabilities

9,443

-

Total liabilities

1,272,440

1,061,857

Commitments and Contingencies

Shareholders' Equity:

Preferred Stock

-

-

Class A Common Stock

48

47

Class B Common Stock

9

10

Additional paid-in capital

735,562

690,739

Retained earnings

528,766

749,515

Accumulated other comprehensive loss

(14,780)

(21,418)

Class A treasury stock, at cost

(104,951)

(103,948)

Total MSC Industrial shareholders' equity

1,144,654

1,314,945

Noncontrolling interest

$

7,224

$

5,628

Total shareholders' equity

1,151,878

1,320,573

Total liabilities and shareholders' equity

$

2,424,318

$

2,382,430

Page - 4 -

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

MSC INDUSTRIAL DIRECT CO., INC.

Condensed Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

Thirteen Weeks Ended

Thirty-Nine Weeks Ended

May 29,

May 30,

May 29,

May 30,

2021

2020

2021

2020

Net sales

$

866,294

$

834,972

$

2,412,193

$

2,444,667

Cost of goods sold

499,823

481,010

1,427,653

1,412,457

Gross profit

366,471

353,962

984,540

1,032,210

Operating expenses

257,336

242,751

741,156

748,519

Impairment loss (loss recovery)

(20,840)

-

5,886

-

Restructuring costs

1,349

1,359

26,943

5,871

Income from operations

128,626

109,852

210,555

277,820

Other income (expense):

Interest expense

(3,696)

(5,451)

(10,632)

(12,117)

Interest income

15

173

52

251

Other income (expense), net

1,131

(560)

1,724

(509)

Total other expense

(2,550)

(5,838)

(8,856)

(12,375)

Income before provision for income taxes

126,076

104,014

201,699

265,445

Provision for income taxes

31,141

25,900

49,639

66,323

Net income

94,935

78,114

152,060

199,122

Less: Net income attributable to noncontrolling interest

501

411

1,087

501

Net income attributable to MSC Industrial

$

94,434

$

77,703

$

150,973

$

198,621

Per share data attributable to MSC Industrial:

Net income per common share:

Basic

$

1.69

$

1.40

$

2.70

$

3.58

Diluted

$

1.68

$

1.40

$

2.69

$

3.57

Weighted-average shares used in computing

net income per common share:

Basic

55,944

55,563

55,814

55,435

Diluted

56,352

55,599

56,139

55,581

Page - 5 -

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

MSC INDUSTRIAL DIRECT CO., INC.

Condensed Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)

Thirteen Weeks Ended

Thirty-Nine Weeks Ended

May 29,

May 30,

May 29,

May 30,

2021

2020

2021

2020

Net income, as reported

$

94,935

$

78,114

$

152,060

$

199,122

Other comprehensive income, net of tax:

Foreign currency translation adjustments

4,325

(4,065)

7,147

(3,247)

Comprehensive income

99,260

74,049

159,207

195,875

Comprehensive income attributable to noncontrolling interest:

Net income

(501)

(411)

(1,087)

(501)

Foreign currency translation adjustments

(299)

536

(509)

441

Comprehensive income attributable to MSC Industrial

$

98,460

$

74,174

$

157,611

$

195,815

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

MSC Industrial Direct Co. Inc. published this content on 07 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 July 2021 16:24:55 UTC.


ę Publicnow 2021
All news about MSC INDUSTRIAL DIRECT CO., INC.
09/03MSC INDUSTRIAL DIRECT : Change in Directors or Principal Officers, Financial Statements an..
AQ
09/03MSC Industrial Direct Co., Inc. Appoints Armstrong as Senior Vice President, Legal Affa..
CI
08/30MSC INDUSTRIAL DIRECT CO INC : Entry into a Material Definitive Agreement, Creation of a D..
AQ
08/03MSC INDUSTRIAL DIRECT : Loop Capital Starts MSC Industrial Direct at Hold With $92 Price T..
MT
08/03ANALYST RECOMMENDATIONS : Applied Industrials, Fastenal, Meggit, Planet Fitness, Krispy Kr..
07/15MSC INDUSTRIAL DIRECT : Deutsche Bank Adjusts MSC Industrial Direct Company PT to $98 From..
MT
07/12MSC INDUSTRIAL DIRECT : IDG Insider Pro and Computerworld Name MSC Industrial Supply Co. t..
PU
07/12MSC INDUSTRIAL DIRECT CO., INC. : Ex-dividend day for
FA
07/09MSC INDUSTRIAL DIRECT : Stephens Upgrades MSC Industrial Direct to Overweight From Equal-W..
MT
07/08MSC INDUSTRIAL DIRECT : Reports Fiscal 2021 Third Quarter Results
PU
More news
Analyst Recommendations on MSC INDUSTRIAL DIRECT CO., INC.
More recommendations
Financials (USD)
Sales 2021 3 248 M - -
Net income 2021 218 M - -
Net Debt 2021 630 M - -
P/E ratio 2021 20,6x
Yield 2021 8,13%
Capitalization 4 453 M 4 453 M -
EV / Sales 2021 1,57x
EV / Sales 2022 1,44x
Nbr of Employees 6 315
Free-Float 79,9%
Chart MSC INDUSTRIAL DIRECT CO., INC.
Duration : Period :
MSC Industrial Direct Co., Inc. Technical Analysis Chart | MSM | US5535301064 | MarketScreener
Technical analysis trends MSC INDUSTRIAL DIRECT CO., INC.
Short TermMid-TermLong Term
TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 13
Last Close Price 80,02 $
Average target price 95,90 $
Spread / Average Target 19,8%
EPS Revisions
Managers and Directors
Erik David Gershwind President, Chief Executive Officer & Director
Kristen Actis-Grande Chief Financial Officer & Executive Vice President
Mitchell Lawrence Jacobson Non-Executive Chairman
Charles Bonomo Chief Information Officer & Senior Vice President
Philip R. Peller Lead Independent Non-Executive Director
Sector and Competitors