| --- | --- | |------------------------------------------------------------------|-------| | | | | | | | | | | Fiscal Fourth Quarter and Full Year 2020 Earnings Presentation | | | OCTOBER 27, 2020 | | Safe Harbor Statement Statements in this Presentation 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 m ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section details the unaudited condensed consolidated financial statements and management's analysis of the company's financial performance [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income, and cash flow statements, reflecting increased cash and debt due to COVID-19 precautions [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, highlighting significant increases in cash and debt as of May 30, 2020 Condensed Consolidated Balance Sheet Highlights (as of May 30, 2020 vs. August 31, 2019) | Balance Sheet Item | May 30, 2020 ($ in thousands) | August 31, 2019 ($ in thousands) | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | 353,393 | 32,286 | +994.4% | | Total current assets | 1,555,954 | 1,199,612 | +29.7% | | Total assets | 2,709,710 | 2,311,237 | +17.2% | | **Liabilities & Equity** | | | | | Total current liabilities | 592,011 | 446,916 | +32.5% | | Long-term debt | 667,234 | 266,431 | +150.4% | | Total liabilities | 1,409,418 | 827,358 | +70.3% | | Total shareholders' equity | 1,300,292 | 1,483,879 | -12.4% | - The company significantly increased its cash position to **$353.4 million** from **$32.3 million**, while total debt (current and long-term) rose to **$977.7 million** from **$441.9 million**, reflecting increased borrowings[14](index=14&type=chunk) [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section presents the company's financial performance, showing a decline in net sales and net income for both the thirteen and thirty-nine week periods Income Statement Summary (Thirteen Weeks Ended) | Metric | Q3 2020 ($ in thousands) | Q3 2019 ($ in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Net sales | 834,972 | 866,546 | -3.6% | | Gross profit | 353,962 | 368,655 | -4.0% | | Income from operations | 109,852 | 110,501 | -0.6% | | Net income attributable to MSC | 77,703 | 79,601 | -2.4% | | Diluted EPS | $1.40 | $1.44 | -2.8% | Income Statement Summary (Thirty-Nine Weeks Ended) | Metric | YTD 2020 ($ in thousands) | YTD 2019 ($ in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Net sales | 2,444,667 | 2,521,147 | -3.0% | | Gross profit | 1,032,210 | 1,078,454 | -4.3% | | Income from operations | 277,820 | 309,482 | -10.2% | | Net income attributable to MSC | 198,621 | 222,257 | -10.6% | | Diluted EPS | $3.57 | $4.00 | -10.8% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the company's cash movements, highlighting a significant increase in cash from financing activities for the thirty-nine week period Cash Flow Summary (Thirty-Nine Weeks Ended) | Cash Flow Activity | YTD 2020 ($ in thousands) | YTD 2019 ($ in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | 214,941 | 187,200 | | Net cash used in investing activities | (38,206) | (20,556) | | Net cash provided by (used in) financing activities | 144,829 | (173,959) | | Net increase (decrease) in cash | 321,107 | (7,446) | - Financing activities provided a significant source of cash (**$144.8 million**) in YTD 2020, a reversal from the prior year's use of cash, primarily due to increased borrowings under revolving credit facilities (**$434.2 million** net) which more than offset large special and regular dividend payments totaling **$402.5 million**[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides crucial context for the financial statements, detailing accounting policy changes, COVID-19 responses, and sales sector shifts - The company adopted the new lease accounting standard (ASU 2016-02) on September 1, 2019, resulting in the recognition of operating lease assets of **$61.2 million** and operating lease liabilities of **$60.7 million** on the balance sheet[32](index=32&type=chunk)[35](index=35&type=chunk) - In response to COVID-19 uncertainty, the company borrowed an additional **$300 million** on its Committed Facility in March 2020 to increase its cash position and preserve financial flexibility[71](index=71&type=chunk) - For the thirteen weeks ended May 30, 2020, sales to the Government sector increased significantly to **15% of net sales**, up from **7%** in the prior-year period, while sales to Heavy Manufacturing decreased from **47%** to **40%**[44](index=44&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results, noting declines in net sales and income from operations, driven by manufacturing sector weakness and COVID-19 impacts, despite increased government sales [Results of Operations](index=24&type=section&id=Results%20of%20Operations) This section analyzes the company's revenue and profitability, detailing the impact of sales volume, pricing, and sector shifts on financial performance Q3 FY2020 vs Q3 FY2019 Performance | Metric | Q3 2020 | Q3 2019 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $835.0M | $866.5M | -3.6% | | Gross Profit Margin | 42.4% | 42.5% | -10 bps | | Operating Expenses as % of Sales | 29.2% | 29.8% | -60 bps | | Income from Operations | $109.9M | $110.5M | -0.6% | - Q3 net sales decreased by **3.6%** due to lower sales volume of approximately **$38.7 million**, partially offset by improved pricing of **$8.1 million**; sales to Large Account Customers increased by **$39.3 million**, while other sales decreased by **$70.9 million**[115](index=115&type=chunk) - For the thirty-nine weeks ended May 30, 2020, net sales decreased **3.0%** or **$76.5 million**, driven by a **$112.0 million** decline in sales volume, partially offset by **$17.5 million** in sales from MSC Mexico and **$19.2 million** from improved pricing[130](index=130&type=chunk) - The Metalworking Business Index (MBI) averaged **38.7** for the third fiscal quarter, well below the **50.0** contraction threshold, indicating a challenging business environment exacerbated by the COVID-19 pandemic[112](index=112&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) This section evaluates the company's financial flexibility, highlighting increased cash reserves and borrowings as a precautionary measure against market uncertainties - The company held **$353.4 million** in cash and cash equivalents as of May 30, 2020, a substantial increase from **$32.3 million** at August 31, 2019[145](index=145&type=chunk) - In March 2020, the company borrowed an additional **$300.0 million** under its Committed Facility as a precautionary measure to preserve financial flexibility amid the COVID-19 pandemic[146](index=146&type=chunk) - Net cash from operating activities increased to **$214.9 million** for the first nine months of fiscal 2020, compared to **$187.2 million** in the prior-year period[149](index=149&type=chunk)[150](index=150&type=chunk) - During the first nine months of fiscal 2020, the company paid **$402.5 million** in cash dividends, including **$277.6 million** in special dividends[108](index=108&type=chunk)[154](index=154&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no significant changes in market risk, but is evaluating the impact of the upcoming LIBOR transition on its credit facilities - The company is evaluating the impact of the planned transition from LIBOR to alternative reference rates, such as SOFR, after 2021, which will affect its credit facilities[167](index=167&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of May 30, 2020, with no material changes to internal controls during the quarter - The Chief Executive Officer and Interim Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[169](index=169&type=chunk) - There were no changes in internal controls over financial reporting during the fiscal quarter that materially affected, or are reasonably likely to materially affect, these controls[170](index=170&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional disclosures on legal proceedings, risk factors, equity sales, and other pertinent information not covered in financial statements [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal claims, but management does not anticipate a material adverse effect on its financial position or operations - Management does not expect that the ultimate costs to resolve pending legal matters will have a material adverse effect on the Company's consolidated financial position, results of operations, or liquidity[171](index=171&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section introduces a new risk factor detailing the uncertain and potentially material adverse impact of the COVID-19 pandemic on the company's operations - A new risk factor has been added to address the adverse impact of the COVID-19 pandemic, noting that its duration and extent remain uncertain and could materially affect business, financial condition, and operating results[173](index=173&type=chunk)[174](index=174&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 492 shares of Class A common stock during the quarter, primarily for tax withholding, with over a million shares remaining authorized for repurchase Share Repurchases (Thirteen Weeks Ended May 30, 2020) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | 3/1/20-3/31/20 | 79 | $53.18 | | 4/1/20-4/30/20 | 413 | $56.27 | | 5/1/20-5/30/20 | 0 | N/A | | **Total** | **492** | **$55.81** | - As of May 30, 2020, the maximum number of shares that may yet be repurchased under the Company's ongoing Repurchase Plan was **1,157,038**[177](index=177&type=chunk) [Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[178](index=178&type=chunk) [Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[181](index=181&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) The company reported no other material information for this item - None[182](index=182&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL data files - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and Inline XBRL documents[185](index=185&type=chunk)

MSC Industrial Direct Co., Inc. (NYSE:MSM) Q3 2020 Earnings Conference Call July 8, 2020 8:30 AM ET Company Participants John Chironna - Vice President of Investor Relations and Treasurer Erik Gershwind - President and Chief Executive Officer Greg Clark - Interim Chief Financial Officer Conference Call Participants Hamzah Mazari - Jefferies Ryan Merkel - William Blair David Manthey - Baird Adam Uhlman - Cleveland Research Chris Dankert - Longbow Michael McGinn - Wells Fargo Patrick Baumann - JPMorgan John I ...

FISCAL 2020 Q3 EARNINGS PRESENTATION JULY 8, 2020 SAFE HARBOR STATEMENT . Statements in this presentation 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 impact of COVID-19 on our business operations, results of operations and financial condition, ...

MSC Industrial Direct Co., Inc. (NYSE:MSM) Q2 2020 Earnings Conference Call April 8, 2020 8:30 AM ET Company Participants John Chironna - Vice President of Investor Relations and Treasurer Erik Gershwind - President and Chief Executive Officer Conference Call Participants Ryan Merkel - William Blair & Company LLC John Inch - Gordon Haskett Hamzah Mazari - Jefferies LLC Sam Darkatsh - Raymond James Adam Uhlman - Cleveland Research Company David Manthey - Robert W. Baird & Co. Inc. Michael McGinn - Wells Farg ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ For the quarterly period ended February 29, 2020 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to FORM 10-Q __________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No.: 1-14130 _________________________________________ ...

(Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-Q __________________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File No.: 1-14130 _________________________________________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________ FORM 10-K __________________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended August 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-14130 __________________________________ MSC INDUSTRIAL DIRECT CO., ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-Q __________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 1, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File No.: 1-14130 __________________________________________ MSC ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-Q __________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 2, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File No.: 1-14130 __________________________________________ MS ...