MSC Industrial Direct (MSM) - 2026 Q1 - Quarterly Report

Financial Performance - Net sales for the thirteen weeks ended November 29, 2025, increased to $965.7 million, up from $928.5 million for the same period in 2024, representing a growth of 4.5%[14] - Gross profit for the quarter was $392.7 million, compared to $378.2 million in the prior year, reflecting a gross margin improvement[14] - Net income attributable to MSC Industrial for the quarter was $51.8 million, an increase from $46.6 million year-over-year, resulting in a net income per share of $0.93, up from $0.83[14] - Comprehensive income attributable to MSC Industrial was $50.8 million, compared to $42.8 million in the same quarter of the previous year[16] - Net income for the thirteen weeks ended November 29, 2025, was $51,108, compared to $45,694 for the same period in 2024, representing an increase of 9.8%[20] - Net income for the thirteen weeks ended November 29, 2025, was $51,804, compared to $46,623 for the same period in 2024, representing an increase of 4.5%[40] - Basic and diluted net income per share for the thirteen weeks ended November 29, 2025, was $0.93, up from $0.83 in the prior year, reflecting a growth of 12.0%[40] - The operating margin improved slightly to 7.9% for the thirteen-week period ended November 29, 2025, compared to 7.8% in 2024[84] Assets and Liabilities - Total current assets rose to $1.26 billion, compared to $1.23 billion at the end of the previous quarter, driven by increases in accounts receivable and inventories[12] - Total liabilities increased to $1.10 billion from $1.07 billion, primarily due to an increase in long-term debt, which rose to $214.1 million from $168.8 million[12] - Total assets increased to $2.487 billion as of November 29, 2025, compared to $2.462 billion at the end of the previous quarter[12] - Current liabilities decreased slightly to $726.301 million from $729.346 million in the previous quarter[12] - Total shareholders' equity attributable to MSC Industrial was $1.381 billion, down from $1.388 billion in the previous quarter[12] Cash Flow and Investments - Cash and cash equivalents decreased to $40.3 million from $56.2 million, indicating a reduction in liquidity[12] - Net cash provided by operating activities decreased to $29,411 from $101,868 year-over-year, a decline of 71.1%[20] - Cash used in investing activities was $(21,189), slightly higher than $(20,408) in the previous year[20] - Cash used in financing activities decreased to $(23,936) from $(53,359) year-over-year, a reduction of 55.2%[20] - The Company reported cash and cash equivalents of $40,254 at the end of the period, down from $57,266 a year earlier, a decrease of 29.7%[20] Restructuring and Costs - The company reported a restructuring cost of $4.9 million during the quarter, compared to $2.3 million in the same period last year[14] - The company incurred restructuring and other costs of $4,870 during the thirteen-week period ended November 29, 2025, up from $2,344 in the prior year[74] - The company expects additional severance and separation costs of approximately $1,500 as part of its restructuring efforts[71] Revenue Sources - Revenue from the manufacturing heavy sector accounted for 58% of total revenue for the thirteen weeks ended November 29, 2025, up from 57% in the prior year[37] - National account customers represented 37% of total revenue, consistent with the previous year[38] - The Company’s revenue from the United States remained stable at 95% for both periods[38] Stock and Dividends - The company declared regular cash dividends of $48.6 million during the quarter, slightly up from $47.5 million in the prior year[18] - The company paid regular cash dividends of $0.87 per share totaling $48,626 for the thirteen-week period ended November 29, 2025, compared to $0.85 per share totaling $47,537 in 2024[69] Other Financial Metrics - The effective tax rate for the period was 24.3%, slightly lower than 24.6% for the same period in 2024[77] - The company reported total accrued sales returns of $6,923 as of November 29, 2025, compared to $7,089 as of August 30, 2025[32] - Total accrued sales incentives increased to $27,999 from $22,948 year-over-year[33] - The allowance for credit losses decreased to $20,761 as of November 29, 2025, from $22,365 as of August 30, 2025, reflecting a reduction of 6.8%[53] - Stock-based compensation expense for the thirteen weeks ended November 29, 2025, was $4,378, an increase from $3,562 in the same period of 2024, marking a rise of 22.9%[41]