Gershwind continued, "We are taking decisive actions in response to these results. We are maintaining focus on the areas of the business that are delivering, such as In Plant, Vending and other high touch solutions, making changes to accelerate Core Customer growth initiatives, especially the website rollout, and have taken corrective actions on the web price realignment to improve gross margin trends. We are determined to execute the next chapter of our Mission Critical journey and achieve our long-term go ...

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 UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the quarterly period ended March 2, 2024 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 ...

Financial Data and Key Metrics - Fiscal second quarter sales declined 2.7% year-over-year to $935 million [8] - Reported operating margin for the quarter was 9.7%, down from 11.9% in the prior year [10] - Adjusted operating margin was 10.5%, a decline of 170 basis points compared to the prior year [10] - Inventory reductions of $25 million were achieved during the quarter while maintaining high customer service levels [7] - Free cash flow generation was approximately $53 million in fiscal 2Q and $116 million fiscal year-to-date [11] Business Line Data and Key Metrics - Implant programs grew by 39% and vending installed base by 11% compared to the prior year [24] - Customers with solutions represent nearly 60% of revenues [6] - Vending average daily sales improved 6% year-over-year, representing 17% of total company net sales [113] - Implant program sales grew approximately 10% year-over-year, representing 16% of total company net sales [113] Market Data and Key Metrics - Public sector sales had slight year-over-year growth of 0.6%, driven by mid-single-digit growth from federal customers [29] - Core and other customers' average daily sales declined 5.7% during the quarter [29] - Acute demand softness was experienced in heavy manufacturing verticals, including end markets and tiered suppliers supporting the earlier stages of production and automotive [29] Company Strategy and Industry Competition - The company is focusing on reenergizing its core customer base and improving inventory management [4][5] - Automation investments in facilities like Elkhart, Indiana, and Harrisburg, Pennsylvania, are enabling operational efficiency [6] - The company is prioritizing improvements to its e-commerce platform to enhance the customer experience [25] - A new shared services center in Carretero, Mexico, has been opened to reduce labor costs while maintaining talent [27] Management Commentary on Operating Environment and Future Outlook - Management remains confident in the company's ability to improve revenue trends during the back half of the fiscal year and into fiscal 2025 [23] - The company expects price cost to be more favorable in the second half of the year [18] - Management is encouraged by early signs of improvement in core customer performance in March [35] - The company expects to achieve mid-teens adjusted operating margins under its new set of mission-critical objectives [26] Other Important Information - The company recorded roughly $6 million in restructuring expense primarily related to voluntary separation [30] - Capital expenditures during the quarter increased by approximately $10 million year-over-year to $25 million, driven by investments in digital and solutions growth [11] - The company repurchased $16 million of shares in the second quarter [101] Q&A Session Summary Question: What is the underlying assumption for second half IP growth? - The company expects steady improvement in IP, particularly in machinery and equipment and fabricated metals [54][55] Question: How is the company managing OpEx in the second half? - The company is focusing on productivity improvements and leveraging fixed costs on higher volumes to drive profitability [70] Question: What are the drivers of the expected revenue progression in the second half? - The company expects improvements from solutions, demand generation efforts, and public sector budget easing [67][68] Question: How is the company handling supply chain friction? - The impact of supply chain disruptions, including the Baltimore bridge incident, is projected to be modest [133] Question: What is the status of the digital revamp and product discovery platform? - The company is slightly delayed in rolling out search changes, with improvements expected over the next quarter and into Q4 [134]

Exhibit 99.1 NEWS MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2024 SECOND QUARTER RESULTS FISCAL 2024 Q2 HIGHLIGHTS MELVILLE, NY and DAVIDSON, NC, MARCH 28, 2024 - MSC INDUSTRIAL SUPPLY CO. (NYSE: MSM), "MSC," "MSC Industrial" or the "Company," a leading North American distributor of a broad range of metalworking and maintenance, repair and operations (MRO) products and services, today reported financial results for its fiscal 2024 second quarter ended March 2, 2024. | 2 Financial Highlights | | FY24 Q2 | | FY ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for the quarter ended December 2, 2023, including balance sheets, income, and cash flow statements [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 2, 2023, total assets slightly decreased to $2.49 billion, while total liabilities increased to $1.10 billion, leading to a decrease in shareholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 2, 2023 | Sep 2, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,493,724** | **$2,544,134** | | Cash and cash equivalents | $25,805 | $50,052 | | Accounts receivable, net | $414,280 | $435,421 | | Inventories | $709,362 | $726,521 | | **Total Liabilities** | **$1,095,499** | **$1,051,552** | | Current portion of debt | $244,048 | $229,935 | | Long-term debt | $294,430 | $224,391 | | **Total Shareholders' Equity** | **$1,398,225** | **$1,492,582** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net sales slightly decreased to $954.0 million, with gross profit and operating income declining, resulting in net income of $69.4 million and diluted EPS of $1.22 Income Statement Summary (in thousands, except per share data) | Metric | Thirteen Weeks Ended Dec 2, 2023 | Thirteen Weeks Ended Dec 3, 2022 | | :--- | :--- | :--- | | Net sales | $953,969 | $957,745 | | Gross profit | $393,117 | $397,799 | | Income from operations | $101,568 | $116,010 | | Net income attributable to MSC | $69,350 | $81,314 | | Diluted EPS | $1.22 | $1.45 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to $81.2 million, while significant share repurchases and dividends led to a net decrease in cash from financing activities Cash Flow Summary (in thousands) | Cash Flow Activity | Thirteen Weeks Ended Dec 2, 2023 | Thirteen Weeks Ended Dec 3, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $81,168 | $76,024 | | Net cash used in investing activities | $(18,433) | $(25,591) | | Net cash used in financing activities | $(87,191) | $(67,950) | | **Net decrease in cash** | **$(24,247)** | **$(17,206)** | - Financing activities were highlighted by **$132.0 million** in Class A Common Stock repurchases and **$47.2 million** in dividend payments, partially funded by **$83.0 million** in net borrowings under credit facilities[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, debt structure, shareholder equity changes from stock reclassification, and share repurchases Revenue by Customer End-Market (Thirteen Weeks Ended) | End-Market | Dec 2, 2023 | Dec 3, 2022 | | :--- | :--- | :--- | | Manufacturing Heavy | 47% | 48% | | Manufacturing Light | 21% | 21% | | Public Sector | 9% | 8% | | Other | 23% | 23% | - In fiscal year 2023, the company entered into a Receivables Purchase Agreement (RPA) to sell up to **$300 million** in receivables, with approximately **$300 million** sold as of December 2, 2023[53](index=53&type=chunk)[54](index=54&type=chunk) - In October 2023, the company completed a reclassification, converting each Class B stock share into **1.225 shares of Class A Common Stock**, simplifying capital structure and altering governance rights[74](index=74&type=chunk) - The company repurchased **1.37 million shares** of Class A Common Stock for **$132.0 million** during the thirteen-week period ended December 2, 2023[68](index=68&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2024 financial performance, highlighting declining sales, gross margin, and increased operating expenses, alongside liquidity and strategic initiatives [Overview and Business Environment](index=23&type=section&id=Overview%20and%20Business%20Environment) The company, a leading MRO distributor, navigates softening demand and the UAW strike while advancing its strategic focus on core customers and productivity - The company's **'Mission Critical' initiative** has concluded, with the next phase focusing on growing core customers, OEM fasteners, and driving productivity improvements[91](index=91&type=chunk) - The business environment faced headwinds from **softening customer demand**, high finished goods inventories, and the **UAW strike**, impacting automotive-related sales[92](index=92&type=chunk)[93](index=93&type=chunk) - The average Industrial Production (IP) Index for the quarter was **102.8**, a decrease from **103.3** in the prior fiscal year quarter, indicating declining manufacturing output[97](index=97&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Q1 FY2024 saw net sales decrease to $954.0 million, with gross profit margin contracting and operating expenses rising, leading to a decline in operating income - Net sales decreased by **$3.8 million (0.4%)**, comprising **$29.7 million** of lower volume, offset by **$15.5 million** from improved pricing and **$7.8 million** from acquisitions[99](index=99&type=chunk) - Sales to core and other customers decreased by **$30.3 million**, while sales to national account customers and public sector customers increased by **$17.9 million** and **$8.6 million**, respectively[99](index=99&type=chunk) - Operating expenses increased by **$10.9 million (3.9%)**, mainly due to higher payroll costs from increased headcount and professional fees from stock reclassification[104](index=104&type=chunk)[105](index=105&type=chunk) - E-commerce sales represented **63.3%** of consolidated net sales, up from **61.9%** in the prior-year period[102](index=102&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains $25.8 million cash, $538.5 million total debt, and strong operating cash flow, funding significant share repurchases and dividends Financial Position (in thousands) | Metric | Dec 2, 2023 | Sep 2, 2023 | | :--- | :--- | :--- | | Total debt | $538,478 | $454,326 | | Cash and cash equivalents | $25,805 | $50,052 | | **Net debt** | **$512,673** | **$404,274** | - Net cash from operating activities increased to **$81.2 million** from **$76.0 million** year-over-year, mainly due to favorable changes in accounts receivable and inventories[117](index=117&type=chunk) - Financing activities included **$132.0 million** in share repurchases, **$47.2 million** in dividends, and net borrowings of **$83.0 million**[122](index=122&type=chunk)[124](index=124&type=chunk) - The decrease in Days' Sales Outstanding (DSO) was primarily due to the Receivables Purchase Agreement (RPA), which reduced accounts receivable by **$300.0 million**[118](index=118&type=chunk)[119](index=119&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No significant changes occurred in the company's financial instrument portfolio or interest rate risk since fiscal year-end 2023 - There have been **no significant changes** in the company's market risk exposure, particularly regarding interest rate risk, since the fiscal year-end 2023[129](index=129&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the reporting period[131](index=131&type=chunk) - There were **no material changes** in internal control over financial reporting during the fiscal quarter ended December 2, 2023[132](index=132&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, not expecting a material adverse effect on its financial position or operations - The company does not anticipate that ongoing legal proceedings will have a **material adverse effect** on its financial condition or results[134](index=134&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the company's risk factors since the last Annual Report on Form 10-K - **No material changes** have occurred in the company's risk factors since the last Annual Report on Form 10-K[135](index=135&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's repurchase of 1.37 million Class A Common Stock shares during Q1 FY2024, with remaining authorization for 2.44 million shares Issuer Purchases of Equity Securities (Q1 FY2024) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | 9/3/23-10/3/23 | 205,239 | $96.80 | | 10/4/23-11/2/23 | 448,734 | $94.48 | | 11/3/23-12/2/23 | 713,415 | $97.78 | | **Total** | **1,367,388** | **N/A** | - As of December 2, 2023, the company has authorization to repurchase an additional **2,443,400 shares** of Class A Common Stock under its existing Share Repurchase Plan[137](index=137&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated insider trading arrangements during the quarter - **No directors or officers** adopted, modified, or terminated any insider trading arrangements during the quarter[138](index=138&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents, compensation plans, and certifications

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 ...