Financial Performance - Net sales for the thirteen weeks ended November 30, 2024, were $928.484 million, a decrease of 2.9% compared to $953.969 million for the same period in 2023[15] - Gross profit for the quarter was $378.187 million, down from $393.117 million, reflecting a gross margin of approximately 40.7%[15] - Net income attributable to MSC Industrial for the quarter was $46.623 million, a decline of 32.6% from $69.350 million in the prior year[15] - Basic net income per share decreased to $0.83 from $1.23, representing a decline of 32.5% year-over-year[15] - Comprehensive income attributable to MSC Industrial was $42.791 million, down from $69.798 million in the prior year[17] - Net income for the thirteen weeks ended November 30, 2024, was $45,694, a decrease of 34.7% compared to $69,128 for the same period in 2023[21] - Basic and diluted net income per common share were both $0.83, compared to $1.23 and $1.22, respectively, for the same period last year[15] Assets and Liabilities - Total assets increased to $2.474 billion as of November 30, 2024, compared to $2.462 billion at the end of the previous quarter[13] - Total liabilities rose to $1.090 billion, up from $1.061 billion, indicating an increase in financial obligations[13] - Shareholders' equity attributable to MSC Industrial decreased to $1.375 billion from $1.392 billion, reflecting a reduction in retained earnings[13] - Total debt, including obligations under finance leases, increased to $519,967 as of November 30, 2024, from $508,764 as of August 31, 2024[66] Cash Flow and Operating Activities - Net cash provided by operating activities increased to $101,868, up 25.5% from $81,168 in the prior year[21] - Total adjustments to reconcile net income to net cash provided by operating activities were $56,174, significantly higher than $12,040 in the previous year[21] - Cash and cash equivalents at the end of the period rose to $57,266, compared to $25,805 at the end of the same period last year[21] - Cash and cash equivalents increased significantly to $57.266 million from $29.588 million, indicating improved liquidity[13] Dividends and Shareholder Returns - Dividends declared per Class A Common Share increased to $0.85 from $0.83, indicating a commitment to returning value to shareholders[19] - Regular cash dividends paid were $0.85 per share totaling $47,537 for the thirteen-week period ended November 30, 2024, compared to $0.83 per share totaling $47,192 for the same period in 2023[79] - The Company repurchased 219 shares of Class A Common Stock for $18,072 during the thirteen-week period ended November 30, 2024, compared to 1,367 shares for $132,045 in the same period of 2023[77] Restructuring and Costs - The company reported a restructuring cost of $2.344 million for the quarter, compared to $0.916 million in the same period last year[15] - Total restructuring and other costs for the thirteen-week period ended November 30, 2024, were $2,344, significantly higher than $916 for the same period in 2023[87] Revenue Sources - Revenue from the manufacturing heavy sector accounted for 57% of total revenue, down from 59% in the prior year[42] - The public sector contributed 9% to total revenue, an increase from 8% in the previous year[42] - The company’s revenue from the United States accounted for 95% of total revenue for both the thirteen-week periods ended November 30, 2024, and December 2, 2023[44] - The percentage of revenue by customer type remained stable, with National Account Customers at 37%, Public Sector Customers at 9%, and Core and Other Customers at 54% for the period ended November 30, 2024[44] Accounting and Compliance - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements and disclosures[30] - The effective tax rate for the thirteen-week period ended November 30, 2024, was 24.6%, an increase from 24.3% for the same period in 2023[89] - The Company was in compliance with all operating and financial covenants of the Credit Facilities and Private Placement Debt as of November 30, 2024[73] Other Financial Metrics - The company reported stock-based compensation expense of $3,562 for the thirteen weeks ended November 30, 2024, compared to $5,201 in the same period of 2023, indicating a reduction of 31.5%[47] - Total accrued sales returns were $7,704 as of November 30, 2024, slightly down from $8,120 as of August 31, 2024[35] - Total accrued sales incentives related to volume rebates were $23,731, up from $23,386 as of August 31, 2024[38] - Expenditures for property, plant, and equipment were $20,168, compared to $18,433 in the prior year[21] - The company had 137 non-vested performance share units (PSUs) at November 30, 2024, with a weighted-average grant date fair value of $86.31 per share[49] - The company classified its Columbus customer fulfillment center as held for sale, with a carrying value of approximately $31,758 as of November 30, 2024[61] - The company had $210,250 outstanding under the Uncommitted Credit Facilities as of November 30, 2024, compared to $209,500 as of August 31, 2024[70] - Outstanding letters of credit were $6,304 as of November 30, 2024, unchanged from August 31, 2024[69]

Financial Data and Key Metrics Changes - Fiscal first-quarter sales were $928 million, a decline of 2.7% year over year, which exceeded prior expectations of a 4.5% to 5.5% decline [39][40] - Gross margin was 40.7%, in line with expectations, driven by higher-priced inventories [43] - Adjusted operating margin was 8%, a decline of 90 basis points year over year [46] - Free cash flow conversion was strong at 179% of net income, resulting in free cash flow of $82 million [48] Business Line Data and Key Metrics Changes - Average daily sales in the public sector improved by 9.8% year over year, while national accounts declined by 1.6% and core customers declined by 5.3% [40] - Vending sales were up 5% year over year, representing 18% of total company net sales [42] - Sales through implant programs also grew 5% year over year, accounting for approximately 17% of total company net sales [42] Market Data and Key Metrics Changes - The macro environment remains soft, with most manufacturing end markets contracting, particularly in automotive and heavy truck sectors [21] - Manufacturing and metalworking-related softness has been reflected in MBI readings, which have contracted for 22 consecutive months [22] Company Strategy and Development Direction - The company is committed to restoring growth and achieving market share capture and margin expansion through a mission-critical program focused on high-touch solutions, core customer reenergization, and cost optimization [9][14] - Future prospects for North American manufacturing are promising, driven by reshoring and manufacturing investment in the US [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the near-term environment remains soft but expressed confidence in the company's ability to restore growth [9][24] - There is cautious optimism regarding 2025 outlooks, with some positive sentiment emerging from customer discussions [84] Other Important Information - The company is implementing a series of initiatives aimed at driving productivity in its distribution network and selling operations, with expected savings of $10 to $15 million [33] - The company has a strong balance sheet with net debt of $163 million, representing approximately 1.1 times EBITDA [47] Q&A Session Summary Question: Clarification on gross margin expectations - Management confirmed that for the second quarter, gross margin is expected to be flat to Q1, with potential for improvement depending on price cost management and productivity [55][60] Question: Expected savings from productivity initiatives - Management expects productivity improvements in Q2, with a range of $15 to $25 million in operating expense savings for the year [71][72] Question: Visibility on larger customers in automotive and aerospace - Management noted that conditions in automotive and heavy manufacturing remain soft, but aerospace has shown positive trends [80][84] Question: Savings from the Columbus distribution center - Management confirmed that savings from the Columbus distribution center are tracking comfortably in the $5 to $7 million range [102] Question: Opportunities in government efficiency - Management indicated that they do not anticipate significant changes in military and defense spending but are positioned to take advantage of any potential opportunities [108] Question: Tariff impact and pricing strategy - Management stated they are prepared for potential tariffs and will treat them as supplier price increases, similar to previous inflationary situations [116][119] Question: Marketing investment strategy - Management outlined that marketing efforts will focus on generating awareness and increasing retention, utilizing a mix of digital marketing and personal outreach [122][125]

MSC Industrial (MSM) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $1.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.81%. A quarter ago, it was expected that this distributor of industrial tools and supplies would post earnings of $1.08 per share when it actually produced earnings of $1.03, delivering a surprise of -4.63%.Over t ...

FISCAL FIRST QUARTER 2025 EARNINGS JANUARY 8, 2025 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 activities, events or developments that MSC expects, believes or anticipates will or may occur in the future, including statements about results of operations and financial condition, expect ...

Financial Performance - Net sales for Q1 FY25 were $928.5 million, a decrease of 2.7% compared to $954.0 million in Q1 FY24[2] - Income from operations was $72.3 million, down 28.8% from $101.6 million in the prior year[2] - Diluted EPS for Q1 FY25 was $0.83, compared to $1.22 in Q1 FY24, reflecting a decline of 32.0%[3] - Adjusted operating margin for Q1 FY25 was 8.0%, down from 10.9% in the same quarter last year[2] - Net sales for the thirteen weeks ended November 30, 2024, were $928.484 million, a decrease of 2.6% compared to $953.969 million for the same period in 2023[15] - Gross profit decreased to $378.187 million, down 3.8% from $393.117 million year-over-year, resulting in a gross margin of 40.7%[15][25] - Net income attributable to MSC Industrial was $46.623 million, a decline of 32.6% from $69.350 million in the prior year[15][26] - Diluted net income per common share decreased to $0.83, down from $1.22, reflecting a 32.8% year-over-year decline[15][26] - Operating expenses increased to $303.563 million, up 4.4% from $290.633 million in the same quarter last year[15][25] - Comprehensive income attributable to MSC Industrial was $42.791 million, down from $69.798 million year-over-year[17] Cash Flow and Financial Position - The company generated significant free cash flow, with a conversion rate of approximately 100%[10] - Cash flows from operating activities improved to $101.868 million, compared to $81.168 million in the prior year[19] - The company reported a net cash increase of $27.678 million for the quarter, contrasting with a decrease of $24.247 million in the same period last year[19] - The company maintains a strong balance sheet with total assets of $2.47 billion as of November 30, 2024[13] - Current liabilities totaled $626.3 million, while total liabilities were $1.09 billion[13] Future Outlook - The outlook for Q2 FY25 anticipates average daily sales growth between -5.0% and -3.0% year-over-year[4] - The adjusted operating margin guidance for Q2 FY25 is projected to be between 6.5% and 7.5%[4] Strategic Initiatives - The company plans to continue executing its Mission Critical strategy to improve performance amid challenging macro conditions[2] - The company incurred restructuring and other costs of $2.344 million during the quarter[15][25] Other Expenses - Total other expenses rose to $11.678 million, compared to $10.250 million in the previous year[15][25]

In its upcoming report, MSC Industrial (MSM) is predicted by Wall Street analysts to post quarterly earnings of $0.73 per share, reflecting a decline of 41.6% compared to the same period last year. Revenues are forecasted to be $905.01 million, representing a year-over-year decrease of 5.1%.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior ...

MSC Industrial (MSM) reported $952.28 million in revenue for the quarter ended August 2024, representing a year-over-year decline of 8%. EPS of $1.03 for the same period compares to $1.64 a year ago.The reported revenue represents a surprise of -0.72% over the Zacks Consensus Estimate of $959.16 million. With the consensus EPS estimate being $1.08, the EPS surprise was -4.63%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stre ...

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 August 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-----------------------------------------------------------------------------|--------- ...

| --- | --- | --- | --- | --- | |------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | FISCAL FOURTH | | | | | | QUARTER 2024 EARNINGS | | | | | | OCTOBER 24, 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 a ...

Net Sales Performance - Net sales for FY24 Q4 decreased by 8.0% YoY to $952.3 million, with a 300 basis point headwind from nonrepeating Public Sector orders[4] - Full-year net sales for FY24 decreased by 4.7% YoY to $3,821.0 million, including a 160 basis point headwind from nonrepeating Public Sector orders[2] - Net sales for fiscal year 2024 decreased to $3,820,951 thousand from $4,009,282 thousand in fiscal year 2023, a decline of 4.7%[11] - Net sales for the fiscal quarter ended August 31, 2024 were $952.28 million, with a gross margin of 41.0%[20] - Net sales for the fiscal year 2024 reached $3,820.95 million, with a gross profit of $1,572.78 million and a gross margin of 41.2%[21] - Net sales for the fiscal quarter ended September 2, 2023, were $1,035.44 million, with a gross profit of $419.53 million and a gross margin of 40.5%[23] - Net sales for the fiscal year ended September 2, 2023, were $4,009.3 million, with a gross profit of $1,643.0 million and a gross margin of 41.0%[24] Operating Income and Margin - Operating income for FY24 Q4 was $90.9 million, or $94.2 million adjusted, with an operating margin of 9.5% or 9.9% adjusted[4] - Full-year operating income for FY24 was $390.4 million, or $407.2 million adjusted, with an operating margin of 10.2% or 10.7% adjusted[2] - Income from operations for the fiscal quarter ended August 31, 2024 was $90.86 million, with an operating margin of 9.5%[20] - Operating expenses for the fiscal year 2024 were $1,167.87 million, representing 30.6% of sales, with adjusted operating expenses at $1,165.60 million or 30.5% of sales[21] - Operating expenses for the fiscal quarter ended September 2, 2023, were $299.26 million, representing 28.9% of sales, with adjusted operating expenses at $289.13 million or 27.9% of sales[23] - Income from operations was $483.7 million, with an operating margin of 12.1%, and adjusted income from operations was $504.5 million, with an adjusted operating margin of 12.6%[24] Earnings Per Share (EPS) - Diluted EPS for FY24 Q4 was $0.99, compared to $1.56 in the prior year, with adjusted diluted EPS of $1.03 vs. $1.64[4] - Full-year diluted EPS for FY24 was $4.58, compared to $6.11 in the prior year, with adjusted diluted EPS of $4.81 vs. $6.29[2] - Diluted net income per common share decreased to $4.58 in fiscal year 2024 from $6.11 in fiscal year 2023, a decline of 25.0%[11] - Diluted net income per common share for the fiscal year 2024 was $4.58, with an adjusted figure of $4.81[21] - Diluted net income per common share for the fiscal quarter ended September 2, 2023, was $1.56, with an adjusted figure of $1.64[23] - Diluted net income per common share was $6.11, with adjusted diluted net income per common share of $6.29[24] Cash Flow and Financial Position - Generated strong operating cash flows of $410.7 million for FY24, representing 160% of net income[2] - Cash and cash equivalents decreased to $29,588 thousand as of August 31, 2024, from $50,052 thousand as of September 2, 2023, a drop of 40.9%[10] - Net cash provided by operating activities for fiscal year 2024 was $410.70 million, compared to $699.58 million in fiscal year 2023, a decrease of 41.3%[13] - Expenditures for property, plant and equipment in fiscal year 2024 were $99.41 million, compared to $92.49 million in fiscal year 2023, an increase of 7.5%[13] - Repurchases of Class A Common Stock in fiscal year 2024 were $187.70 million, compared to $95.78 million in fiscal year 2023, an increase of 96.0%[13] - Free Cash Flow (FCF) is defined as cash flow from operations reduced by expenditures for property, plant and equipment, and FCF Conversion is calculated by dividing FCF by GAAP net income[19] Net Income and Comprehensive Income - Net income attributable to MSC Industrial for fiscal year 2024 was $258,594 thousand, compared to $343,233 thousand in fiscal year 2023, a decline of 24.7%[11] - Comprehensive income attributable to MSC Industrial for fiscal year 2024 was $255,175 thousand, down from $348,629 thousand in fiscal year 2023, a decrease of 26.8%[12] - Net income for fiscal year 2024 was $255.96 million, compared to $343.11 million in fiscal year 2023, a decrease of 25.4%[13] - Net income attributable to MSC Industrial for the fiscal quarter ended August 31, 2024 was $55.69 million, with diluted earnings per share of $0.99[20] - Net income attributable to MSC Industrial for the fiscal year 2024 was $258.59 million, with adjusted net income at $271.25 million[21] - Net income attributable to MSC Industrial for the fiscal quarter ended September 2, 2023, was $87.60 million, with adjusted net income at $92.02 million[23] - Net income attributable to MSC Industrial was $343.2 million, with adjusted net income of $353.8 million[24] - For the fiscal year ended August 31, 2024, net income attributable to MSC Industrial was $258.6 million, compared to $343.2 million for the fiscal year ended September 2, 2023[26] Debt and Liabilities - Long-term debt including obligations under finance leases increased to $278,853 thousand as of August 31, 2024, from $224,391 thousand as of September 2, 2023, a rise of 24.3%[10] - Total liabilities increased slightly to $1,061,031 thousand as of August 31, 2024, from $1,051,552 thousand as of September 2, 2023, an increase of 0.9%[10] Return on Invested Capital (ROIC) - Return on Invested Capital (ROIC) is calculated using non-GAAP net operating profit after tax (NOPAT) divided by average invested capital, and is used to monitor and evaluate operating performance[18] - Non-GAAP NOPAT for the fiscal year ended August 31, 2024, was $291.5 million, compared to $363.9 million for the fiscal year ended September 2, 2023[26] - Adjusted Non-GAAP NOPAT for the fiscal year ended August 31, 2024, was $304.1 million, compared to $379.5 million for the fiscal year ended September 2, 2023[26] - Invested capital for the fiscal year ended August 31, 2024, was $1,871.0 million, compared to $1,883.4 million for the fiscal year ended September 2, 2023[26] - Net income to average invested capital for the fiscal year ended August 31, 2024, was 13.7%, compared to 17.6% for the fiscal year ended September 2, 2023[26] - Non-GAAP ROIC for the fiscal year ended August 31, 2024, was 15.5%, compared to 18.6% for the fiscal year ended September 2, 2023[26] Future Outlook - FY25 Q1 ADS growth is expected to be between (5.5)% and (4.5)%, with an adjusted operating margin forecast of 7.0% to 7.5%[5] - Full-year FY25 outlook includes depreciation and amortization expense of ~$90M-$95M, interest and other expense of ~$45M, and capital expenditures of ~$100M-$110M[5] - The company aims to achieve adjusted operating margin in the mid-teens and drive 400 basis points of growth above the Industrial Production index over the cycle[4]