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 December 2, 2023 OR o 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., INC. (Exact n ...

| --- | --- | --- | --- | --- | |------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | FISCAL FIRST | | | | | | QUARTER 2024 EARNINGS | | | | | | JANUARY 9, 2024 | | | | | | | | | | | CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Statements in this presentation may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of present or historical fact, that address act ...

Financial Data and Key Metrics Changes - Fiscal Q1 2024 sales were $954 million, a decline of 0.4% year-over-year with the same number of business days in both periods [33] - Reported operating margin was 10.6%, down from 12.1% in the prior year, while adjusted operating margin was 10.9%, a decline of 140 basis points year-over-year [38][45] - Gross margin for the quarter was 41.2%, a decrease of 30 basis points year-over-year, but better than expected [41][45] Business Line Data and Key Metrics Changes - Public sector sales grew by 9%, while sales to national account customers improved by 4%, but core and other customers declined approximately 5% year-over-year [34] - Sales through the implant program grew by 10%, representing 15% of total sales, with record signings achieved [35] - Vending signings growth exceeded 25%, and the installed base grew by 10% year-over-year [22] Market Data and Key Metrics Changes - Demand softness was attributed to high interest rates, UAW strikes, and inventory burn down, leading to a decline in sales growth [9][11] - The outlook for calendar 2024 appears more encouraging, with expectations of stable or lower interest rates boosting customer confidence in capital spending [13][14] Company Strategy and Development Direction - The company is focused on maintaining momentum in existing growth drivers, adding new elements to its growth formula, and improving profitability through productivity initiatives [19][29] - Strategic investments include web pricing realignment and new product discovery functionality, expected to yield benefits in the second half of the fiscal year [25][27] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging environment with soft demand but expressed confidence in a rebound as macroeconomic conditions improve [8][58] - The company anticipates a more positive view for the back half of fiscal 2024 and into fiscal 2025, driven by stable interest rates and improving end-user demand [13][14] Other Important Information - The company maintained a healthy balance sheet with net debt of approximately $513 million, representing 0.94 times EBITDA [46] - Free cash flow generation was approximately $63 million, compared to $51 million in the prior year [47] Q&A Session Summary Question: Insights on the demand environment and macroeconomic conditions - Management indicated that high interest rates and inventory burn down affected demand, but confidence is building among customers as interest rates stabilize [66][70] Question: Clarification on gross margins and expectations for the second quarter - Management confirmed that Q1 gross margin was better than expected, with Q2 expected to be similar, and potential upside in the second half of the year [74][76] Question: Impact of UAW on average daily sales (ADS) and normalization expectations - The UAW impact was estimated at the high end of low-single digits, with expectations for improvement in Q2 as inventory levels normalize [83][87] Question: Web pricing realignment program and its expected impact - The company is 30% through the web pricing realignment, with confidence in its execution and expected benefits as the program rolls out [131]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________ FORM 10-K __________________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 2, 2023 OR o 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 ___________________________ ...

Financial Data and Key Metrics Changes - The company reported fiscal fourth quarter sales of $1.035 billion, reflecting a year-over-year improvement of 1.3% driven by volume growth and modest pricing benefits [58] - Gross margin decreased to 40.5%, down 140 basis points year-over-year, while operating margin on an adjusted basis was 12.6%, a decline of 100 basis points compared to the prior year [62][64] - GAAP earnings per share were $1.56 compared to $1.86 in the prior year, while adjusted EPS was $1.64 versus $1.79 in the prior year [33] Business Line Data and Key Metrics Changes - Public sector sales increased over 60% year-over-year, while national accounts and core customers improved in mid-single digits and low single digits, respectively [59] - Implant revenue represented 13% of total company net sales, an improvement of roughly 110 basis points year-over-year [29] - Vending average daily sales improved slightly more than 9% year-over-year, representing approximately 16% of total company net sales [60] Market Data and Key Metrics Changes - Average daily sales improved 9.3% year-over-year, significantly outpacing the Industrial Production Index by approximately 900 basis points [4][27] - The public sector experienced fiscal '23 growth of over 45%, with over 20% growth even without large public sector orders from prior quarters [14] - The company noted a sequential step down in sales into auto-related end markets, significantly larger than the rest of the business [22] Company Strategy and Development Direction - The company aims to maintain momentum on existing growth drivers, focusing on maximizing the impact of large account programs and expanding solutions [15] - A renewed focus on core customer growth is planned, with investments in pricing effectiveness and e-commerce capabilities [46][47] - The company is targeting 400 basis points or more of growth above the IP index and 20% incremental margins over the cycle [50] Management's Comments on Operating Environment and Future Outlook - The management described the current macro environment as one of leveling, with softening trends due to sustained higher interest rates and recessionary fears [20][21] - The company expects challenges to continue in the first quarter but anticipates a bounce back when normal conditions restore [23] - Management expressed confidence in capturing market share from local distributors during the current environment [55] Other Important Information - The company achieved a milestone with annual sales exceeding $4 billion for the first time in its history [42] - Share repurchases will remain a priority in the capital allocation strategy, with approximately 1.1 million shares remaining to offset dilution from share reclassification [35][90] - The company reported strong free cash flow generation of approximately $607 million for the full year, an increase of over $420 million year-over-year [89] Q&A Session Summary Question: What is the outlook for gross margin progression from fiscal '23 to '24? - Management indicated that gross margin is expected to start at 41.0, with various factors influencing the outlook, including non-repeating public sector orders and category line reviews [101][102] Question: Are you assuming industrial recession in most cases for '24? - Management confirmed that they are assuming a roughly flat IP through the year, factoring in headwinds from nonrecurring public sector orders [78][79] Question: Can you provide more color on the non-UAW drivers of deceleration? - Management noted general softening in the market, with some pockets of strength, but overall trends are consistent with macro indices [83][112] Question: What is the expected impact of the UAW strike on sales? - Management estimated the impact of the UAW strike on average daily sales to be in the low single-digit range, with expectations for alleviation before the end of the calendar year [23][134] Question: What are the expectations for gross price in '24? - Management expects gross price to be positive in '24, estimating about one to two points of growth from price [124]

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS investor.mscdirect.com 2 * Represents a non-GAAP financial measure. See appendix for non-GAAP reconciliations. Average daily sales growth of 9.3% for 4Q'23 and 11.2% for FY'23 outpaced the Industrial Production index by ~900 bps and ~1,000 bps, respectively Reduced operating expenses as a percentage of sales by 70 bps YoY in FY'23 and 90 bps on an adjusted* basis including a reduction of 40 bps in 4Q'23 4 GAAP and adjusted EPS* down YoY in 4Q'23 but up fo ...

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 3, 2023 OR o 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., INC. (Exact name of registran ...

MSC Industrial Direct Co., Inc. (NYSE:MSM) Q3 2023 Earnings Conference Call June 29, 2023 8:30 AM ET Company Participants Ryan Mills - Head of Investor Relations Erik Gershwind - President and Chief Executive Officer Kristen Actis-Grande - Executive Vice President and Chief Financial Officer Conference Call Participants David Manthey - Robert W. Baird Tommy Moll - Stephens Stephen Volkmann - Jefferies Patrick Baumann - JPMorgan Ryan Merkel - William Blair Katie Fleischer - KeyBanc Capital Markets Chris Dank ...

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 4, 2023 OR o 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., INC. (Exact name of registra ...

MSC Industrial Direct Co., Inc. (NYSE:MSM) Q2 2023 Earnings Conference Call April 4, 2023 8:30 AM ET Company Participants John Chironna - Vice President of Investor Relations and Treasurer Erik Gershwind - Chief Executive Officer Kristen Actis-Grande - Chief Financial Officer Conference Call Participants Tommy Moll - Stephens David Manthey - Baird Chris Dankert - Loop Capital Steve Volkmann - Jefferies Ryan Merkel - William Blair Ken Newman - KeyBanc Capital Markets Patrick Baumann - J.P. Morgan Operator Go ...