MSC Industrial Direct (US:MSM)2021-12-22 19:20Financial Performance - Net sales for the thirteen weeks ended November 27, 2021, were $848.5 million, an increase of 9.9% compared to $771.9 million for the same period in 2020[13] - Gross profit for the same period was $352.6 million, representing a gross margin of 41.5%, up from $323.3 million and a margin of 41.8% in the prior year[13] - Net income attributable to MSC Industrial for the quarter was $66.1 million, a 72.2% increase from $38.5 million in the prior year[13] - The company reported basic net income per share of $1.19, compared to $0.69 for the same period last year[13] - Comprehensive income attributable to MSC Industrial was $61,986,000, an increase from $40,189,000 in the prior year[16] Assets and Liabilities - Total assets increased to $2.5 billion as of November 27, 2021, up from $2.46 billion at the end of the previous quarter[10] - Current liabilities rose to $586.3 million, compared to $561.9 million in the previous quarter[10] - The company’s total shareholders' equity increased to $1.19 billion, up from $1.16 billion in the prior quarter[10] - The total liabilities as of November 27, 2021, were $1,303,310, slightly up from $1,300,243 as of August 28, 2021[10] Cash Flow and Financing - Net cash provided by operating activities decreased to $57,804 from $103,230 year-over-year, a decline of 44.0%[23] - Cash and cash equivalents at the end of the period increased to $62,875 from $53,104 year-over-year, a rise of 18.5%[23] - The Company reported a net cash used in financing activities of $19,794, a significant decrease from $167,658 in the previous year[23] - The Company had total debt of $760,671 as of November 27, 2021, a decrease from $783,588 as of August 28, 2021, representing a reduction of 2.9%[64] Operating Expenses - Operating expenses for the quarter were $256.6 million, an increase from $238.7 million in the same period last year[13] - Restructuring costs for the quarter were $5.3 million, compared to $4.0 million in the prior year[13] - Total adjustments in cash flows from operating activities resulted in a net cash provided of $57,804,000, down from $103,230,000 in the prior year[23] Shareholder Returns - The company declared dividends of $0.75 per Class A and Class B common share, consistent with the previous year[20] - The Company repurchased 53 shares of Class A Common Stock for $4,559 during the thirteen-week period ended November 27, 2021[91] - A quarterly cash dividend of $0.75 per share was declared on October 14, 2021, resulting in aggregate payments of $41,740 on November 30, 2021[93] Market Performance - The United States accounted for 94% of total net sales, amounting to $799,075 for the current period, compared to $726,893 in the previous year[44] - The manufacturing heavy sector represented 48% of net sales for the thirteen weeks ended November 27, 2021, up from 45% in the prior year[43] Stock-Based Compensation - Total stock-based compensation expense for the thirteen weeks ended November 27, 2021, was $5,689, up from $4,238 in the same period of 2020, reflecting a 34.4% increase[48] - The unrecognized stock-based compensation cost related to restricted stock units (RSUs) at November 27, 2021, was $34,922, expected to be recognized over a weighted-average period of 3.1 years[57] Lease Obligations - As of November 27, 2021, total lease liabilities amounted to $56,281, with operating lease liabilities of $54,150[89] - The expected future lease payments total $59,996 for operating leases and $2,213 for finance leases, amounting to $62,209 in total[89] Tax and Impairment - The Company's effective tax rate decreased to 23.5% for the thirteen-week period ended November 27, 2021, down from 24.3% for the same period in 2020[106] - The company recorded an impairment charge of $26,726 in the first quarter of fiscal year 2021 related to PPE products, with a subsequent recovery of $20,840 in the second half of fiscal year 2021[99]