MSC Industrial Direct (US:MSM)2025-01-08 19:22Financial 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]