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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ FORM 10-Q _________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 3, 2022 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 ...

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS FISCAL FIRST QUARTER 2023 HIGHLIGHTS 2 Reduced operating expenses as a percentage of sales by 100 bps GAAP EPS growth of 23% and adjusted EPS growth of 18% over prior year period** Achieved Adjusted ROIC of 18.3%** * See appendix for more information about Mission Critical. ** Represents a non-GAAP financial measure. See appendix for non-GAAP reconciliations. INDUSTRIAL PRODUCTION INDEX (IP) MSC Total Organic Growth 3-Month Average investor.mscdirect.com ...

Financial Data and Key Metrics Changes - The company reported first-quarter sales of $957.7 million, reflecting a 12.9% increase year-over-year, with acquisitions contributing approximately 3 percentage points to this growth [54][56] - Adjusted earnings per share rose to $1.48, an 18% increase from $1.25 in the prior year [56] - Operating margins improved by 140 basis points year-over-year to 12.1%, with adjusted operating margins at 12.3% [62][70] Business Line Data and Key Metrics Changes - Vending machine revenues grew in the mid-teens, now representing over 15% of total company sales [43] - Implant customer revenues increased over 20% year-over-year, now accounting for 12% of total sales [44] - Sales from solutions offerings reached 56% of total sales, up over 200 basis points from the prior year [45] Market Data and Key Metrics Changes - Public sector sales surged over 22%, driven by contracts with U.S. Marine bases [59] - National Account growth was in the low teens, while core customers experienced high-single-digit growth [59] - The company noted pockets of softening demand, particularly in consumer-facing industries, but overall demand remained solid [90][92] Company Strategy and Development Direction - The company aims to capture market share, expand adjusted operating margins, and improve return on invested capital [31] - Focus areas include enhancing warehouse automation, modernizing operations, and improving customer service levels [6][67] - The company is pivoting its category management strategy to reduce purchase costs and streamline operational efficiencies [34][35] Management's Comments on Operating Environment and Future Outlook - Management characterized the current economic environment as solid but noted some softening in certain customer segments [90][92] - The company anticipates a pricing adjustment due to ongoing supplier cost increases, although inflation is moderating [94] - Future growth is expected to be supported by reshoring trends and ongoing investments in productivity initiatives [32][51] Other Important Information - The company produced its first ESG report, highlighting its commitment to diversity and sustainability [28][30] - Capital expenditures for the first quarter were $26 million, with expectations for annual spending between $70 million and $80 million [63] - The company closed a $300 million receivables facility to enhance its financial flexibility [59][65] Q&A Session Summary Question: Insights on macro commentary and end markets - Management noted a pronounced slowdown in December but characterized the overall environment as solid, with pockets of softening primarily in consumer-facing industries [88][90] Question: Pricing environment and 2023 outlook - The company is experiencing supplier price increases and plans a pricing adjustment, with expectations for lower pricing contributions in the upcoming quarters due to high prior year pricing [93][95] Question: Benefits of reshoring - Early signs of reshoring benefits are emerging, with new construction projects being initiated, particularly in manufacturing [97][102] Question: Capital allocation strategy - The company is prioritizing reinvestment into the core business and share buybacks, with a focus on tuck-in acquisitions [108][110] Question: Inventory levels and future expectations - Current inventory levels are being monitored closely, with no indication of being overstocked, and the company remains in growth mode [135][139] Question: Year-over-year operating expenses - Operating expenses increased due to inflation and acquisitions, but the company achieved gross savings of $6 million [140]

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 3, 2022 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 INDUST ...

Financial Data and Key Metrics Changes - The company achieved fourth quarter sales of $1.02 billion, a 23% increase year-over-year, with average daily sales (ADS) growth of 14% [37] - Adjusted operating margins expanded by 190 basis points year-over-year, driven by a 200 basis point reduction in operating expenses as a percentage of sales [12][14] - Adjusted return on invested capital (ROIC) reached nearly 18%, ahead of schedule for fiscal '23 targets [15] Business Line Data and Key Metrics Changes - Government sales increased over 30%, driven by fulfillment under the 4PL contract for U.S. Marine bases [38] - Vending signings were up 21% year-over-year, with vending sales now representing 15% of total company sales [18] - E-commerce sales grew by 20% on an ADS basis, reaching 63% of total company sales, up roughly 300 basis points from the prior year [21] Market Data and Key Metrics Changes - The company noted stable order levels and demand from the majority of customers, despite some softening in consumer-facing industries [26][80] - The average daily sales growth for fiscal '23 is projected to be between 5% and 9%, assuming a contracting industrial economy at the low end [29] Company Strategy and Development Direction - The company is focused on capturing market share and aims to outperform its original growth target of 400 basis points above the industrial production (IP) index [28] - The strategic priorities include metalworking, solutions, selling the portfolio, digital initiatives, and customer diversification, particularly in the public sector [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic environment for 2023, while noting that current customer activity levels remain solid [26][80] - The company is prepared to adjust its strategies based on economic conditions, with a downturn playbook in place to manage potential challenges [61][62] Other Important Information - The company announced a 5% increase in its ordinary dividend to be paid in November [48] - The balance sheet remains strong, with cash generation expected to improve, positioning the company well for future opportunities [34] Q&A Session Summary Question: Can you clarify the price contribution for 2023? - The price contribution for the quarter was closer to 600 basis points, with a higher contribution from price expected at the lower end of the sales guidance range [70] Question: What are the macro assumptions regarding the industrial economy? - The high end of the growth range assumes a flat IP, while the low end assumes more aggressive erosion, potentially leading to negative IP by the back half of the fiscal year [72] Question: How is the company addressing input cost declines? - While input costs are declining, the company still faces inflationary pressures, particularly in labor, and historically does not experience price deflation in its product lines [85] Question: What is the expected impact of acquisitions on operating margins? - Acquisitions typically dilute operating margins initially, but the company expects to improve margins over time through synergies and operational efficiencies [120]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ FORM 10-Q _________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 28, 2022 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 registrant a ...

MSC Industrial Direct Co., Inc. (NYSE:MSM) Q3 2022 Earnings Conference Call June 29, 2022 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 Ryan Merkel - William Blair David Manthey - Baird Chris Dankert - Loop Capital Hans Hoffman - Jefferies Ken Newman - KeyBanc Capital Markets Pat Baumann - JPMorgan Operator Good day, a ...