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MSC Industrial Direct (MSM) - 2025 Q1 - Quarterly Report
MSMMSC Industrial Direct (MSM)2025-01-08 19:22
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Financial Performance - Net sales for the thirteen weeks ended November 30, 2024, were 928.484million,adecreaseof2.9928.484 million, a decrease of 2.9% compared to 953.969 million for the same period in 2023[15] - Gross profit for the quarter was 378.187million,downfrom378.187 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 46.623million,adeclineof32.646.623 million, a decline of 32.6% from 69.350 million in the prior year[15] - Basic net income per share decreased to 0.83from0.83 from 1.23, representing a decline of 32.5% year-over-year[15] - Comprehensive income attributable to MSC Industrial was 42.791million,downfrom42.791 million, down from 69.798 million in the prior year[17] - Net income for the thirteen weeks ended November 30, 2024, was 45,694,adecreaseof34.745,694, 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,comparedto0.83, compared to 1.23 and 1.22,respectively,forthesameperiodlastyear[15]AssetsandLiabilities−Totalassetsincreasedto1.22, 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 2.462billionattheendofthepreviousquarter[13]−Totalliabilitiesroseto2.462 billion at the end of the previous quarter[13] - Total liabilities rose to 1.090 billion, up from 1.061billion,indicatinganincreaseinfinancialobligations[13]−Shareholders′equityattributabletoMSCIndustrialdecreasedto1.061 billion, indicating an increase in financial obligations[13] - Shareholders' equity attributable to MSC Industrial decreased to 1.375 billion from 1.392billion,reflectingareductioninretainedearnings[13]−Totaldebt,includingobligationsunderfinanceleases,increasedto1.392 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 508,764asofAugust31,2024[66]CashFlowandOperatingActivities−Netcashprovidedbyoperatingactivitiesincreasedto508,764 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 81,168intheprioryear[21]−Totaladjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivitieswere81,168 in the prior year[21] - Total adjustments to reconcile net income to net cash provided by operating activities were 56,174, significantly higher than 12,040inthepreviousyear[21]−Cashandcashequivalentsattheendoftheperiodroseto12,040 in the previous year[21] - Cash and cash equivalents at the end of the period rose to 57,266, compared to 25,805attheendofthesameperiodlastyear[21]−Cashandcashequivalentsincreasedsignificantlyto25,805 at the end of the same period last year[21] - Cash and cash equivalents increased significantly to 57.266 million from 29.588million,indicatingimprovedliquidity[13]DividendsandShareholderReturns−DividendsdeclaredperClassACommonShareincreasedto29.588 million, indicating improved liquidity[13] Dividends and Shareholder Returns - Dividends declared per Class A Common Share increased to 0.85 from 0.83,indicatingacommitmenttoreturningvaluetoshareholders[19]−Regularcashdividendspaidwere0.83, indicating a commitment to returning value to shareholders[19] - Regular cash dividends paid were 0.85 per share totaling 47,537forthethirteen−weekperiodendedNovember30,2024,comparedto47,537 for the thirteen-week period ended November 30, 2024, compared to 0.83 per share totaling 47,192forthesameperiodin2023[79]−TheCompanyrepurchased219sharesofClassACommonStockfor47,192 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 132,045inthesameperiodof2023[77]RestructuringandCosts−Thecompanyreportedarestructuringcostof132,045 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 0.916millioninthesameperiodlastyear[15]−Totalrestructuringandothercostsforthethirteen−weekperiodendedNovember30,2024,were0.916 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 916forthesameperiodin2023[87]RevenueSources−Revenuefromthemanufacturingheavysectoraccountedfor57916 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 5,201inthesameperiodof2023,indicatingareductionof31.55,201 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 8,120asofAugust31,2024[35]−Totalaccruedsalesincentivesrelatedtovolumerebateswere8,120 as of August 31, 2024[35] - Total accrued sales incentives related to volume rebates were 23,731, up from 23,386asofAugust31,2024[38]−Expendituresforproperty,plant,andequipmentwere23,386 as of August 31, 2024[38] - Expenditures for property, plant, and equipment were 20,168, compared to 18,433intheprioryear[21]−Thecompanyhad137non−vestedperformanceshareunits(PSUs)atNovember30,2024,withaweighted−averagegrantdatefairvalueof18,433 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 31,758asofNovember30,2024[61]−Thecompanyhad31,758 as of November 30, 2024[61] - The company had 210,250 outstanding under the Uncommitted Credit Facilities as of November 30, 2024, compared to 209,500asofAugust31,2024[70]−Outstandinglettersofcreditwere209,500 as of August 31, 2024[70] - Outstanding letters of credit were 6,304 as of November 30, 2024, unchanged from August 31, 2024[69]