Latest news with #MSCIndustrial
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Company News for Jul 2, 2025
Progress Software Corp.'s (PRGS) shares plunged 13% after reporting second-quarter fiscal 2025 revenues of $237.35 million, missing the Zacks Consensus Estimate of $237.84 million. Shares of MSC Industrial Direct Co. Inc. (MSM) climbed 6.2% after posting third-quarter fiscal 2025 adjusted earnings per share of $1.08, beating the Zacks Consensus Estimate of $1.03. GE Vernova Inc.'s (GEV) shares tumbled 4.4% following reports that the company is mulling selling its industrial software business Proficy. Shares of Tesla Inc. (TSLA) plummeted 5.3% after President Donald Trump warned of cutting billions of dollars in subsidies that Elon Musk's companies receive from the federal government. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MSC Industrial Direct Company, Inc. (MSM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Progress Software Corporation (PRGS) : Free Stock Analysis Report GE Vernova Inc. (GEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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a day ago
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Compared to Estimates, MSC Industrial (MSM) Q3 Earnings: A Look at Key Metrics
For the quarter ended May 2025, MSC Industrial (MSM) reported revenue of $971.15 million, down 0.8% over the same period last year. EPS came in at $1.08, compared to $1.33 in the year-ago quarter. The reported revenue represents a surprise of +0.1% over the Zacks Consensus Estimate of $970.15 million. With the consensus EPS estimate being $1.03, the EPS surprise was +4.85%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how MSC Industrial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Sales Days: 64 compared to the 64 average estimate based on nine analysts. Total Company ADS Percent Change: -0.8% versus the eight-analyst average estimate of -0.8%. Average Daily Sales (ADS): $15.2 million compared to the $15.12 million average estimate based on six analysts. Days Sales Outstanding: 39 versus the two-analyst average estimate of 40. View all Key Company Metrics for MSC Industrial here>>> Shares of MSC Industrial have returned +6.3% over the past month versus the Zacks S&P 500 composite's +5.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MSC Industrial Direct Company, Inc. (MSM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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a day ago
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MSC Industrial (MSM) Q3 Earnings and Revenues Beat Estimates
MSC Industrial (MSM) came out with quarterly earnings of $1.08 per share, beating the Zacks Consensus Estimate of $1.03 per share. This compares to earnings of $1.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.85%. A quarter ago, it was expected that this distributor of industrial tools and supplies would post earnings of $0.68 per share when it actually produced earnings of $0.72, delivering a surprise of +5.88%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. MSC Industrial, which belongs to the Zacks Industrial Services industry, posted revenues of $971.15 million for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 0.10%. This compares to year-ago revenues of $979.35 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. MSC Industrial shares have added about 13.8% since the beginning of the year versus the S&P 500's gain of 5.5%. While MSC Industrial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for MSC Industrial was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.93 on $946.5 million in revenues for the coming quarter and $3.55 on $3.74 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Industrial Services is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, SiteOne Landscape (SITE), has yet to report results for the quarter ended June 2025. This company is expected to post quarterly earnings of $2.89 per share in its upcoming report, which represents a year-over-year change of +9.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. SiteOne Landscape's revenues are expected to be $1.48 billion, up 4.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MSC Industrial Direct Company, Inc. (MSM) : Free Stock Analysis Report SiteOne Landscape Supply, Inc. (SITE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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2 days ago
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MSC Industrial's (NYSE:MSM) Q2 Earnings Results: Revenue In Line With Expectations
Industrial supplies company MSC Industrial Direct (NYSE:MSM) met Wall Street's revenue expectations in Q2 CY2025, but sales were flat year on year at $971.1 million. Its non-GAAP profit of $1.08 per share was 5.1% above analysts' consensus estimates. Is now the time to buy MSC Industrial? Find out in our full research report. Revenue: $971.1 million vs analyst estimates of $968.5 million (flat year on year, in line) Adjusted EPS: $1.08 vs analyst estimates of $1.03 (5.1% beat) Adjusted EBITDA: $108.8 million vs analyst estimates of $106.6 million (11.2% margin, 2% beat) Operating Margin: 8.5%, down from 10.9% in the same quarter last year Free Cash Flow Margin: 7.8%, down from 11.6% in the same quarter last year Market Capitalization: $4.74 billion Erik Gershwind, Chief Executive Officer, said, "We delivered fiscal third quarter results that were in line with our expectations for both average daily sales and operating margins. While we certainly have plenty of room for improvement, we saw early signs of progress in each of our three critical strategic areas of focus — reenergizing the core customer, maintaining momentum in high-touch solutions, and optimizing our cost to serve." Founded in NYC's Little Italy, MSC Industrial Direct (NYSE:MSM) provides industrial supplies and equipment, offering vast and reliable selection for customers such as contractors A company's long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, MSC Industrial's 2.6% annualized revenue growth over the last five years was sluggish. This fell short of our benchmarks and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. MSC Industrial's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 3.2% annually. MSC Industrial isn't alone in its struggles as the Maintenance and Repair Distributors industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time. This quarter, MSC Industrial's $971.1 million of revenue was flat year on year and in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 2.1% over the next 12 months. While this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. MSC Industrial's operating margin might fluctuated slightly over the last 12 months but has remained more or less the same, averaging 10.6% over the last five years. This profitability was solid for an industrials business and shows it's an efficient company that manages its expenses well. This result isn't surprising as its high gross margin gives it a favorable starting point. Looking at the trend in its profitability, MSC Industrial's operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q2, MSC Industrial generated an operating margin profit margin of 8.5%, down 2.4 percentage points year on year. Since MSC Industrial's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for MSC Industrial, its EPS declined by 5.6% annually over the last five years while its revenue grew by 2.6%. However, its operating margin didn't change during this time, telling us that non-fundamental factors such as interest and taxes affected its ultimate earnings. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For MSC Industrial, its two-year annual EPS declines of 24.4% show it's continued to underperform. These results were bad no matter how you slice the data. In Q2, MSC Industrial reported EPS at $1.08, down from $1.33 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 5.1%. Over the next 12 months, Wall Street expects MSC Industrial's full-year EPS of $3.69 to grow 2.9%. It was encouraging to see MSC Industrial beat analysts' EBITDA and EPS expectations this quarter despite in line revenue. In the quarter, management saw "encouraging data points, such as core customer sequential improvement, continued momentum in our high-touch solutions and a building productivity pipeline." Overall, this print had some key positives. The stock traded up 4.7% to $88.95 immediately after reporting. So do we think MSC Industrial is an attractive buy at the current price? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
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2 days ago
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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2025 THIRD QUARTER RESULTS
FISCAL 2025 Q3 HIGHLIGHTS Net sales of $971.1 million decreased 0.8% YoY Operating income of $82.7 million, or $87.2 million on an adjusted basis1 Operating margin of 8.5%, or 9.0% on an adjusted basis1 Diluted EPS of $1.02 vs. $1.27 in the prior fiscal year quarter Adjusted diluted EPS of $1.08 vs. $1.33 in the prior fiscal year quarter1 MELVILLE, N.Y. and DAVIDSON, N.C., July 1, 2025 /PRNewswire/ -- MSC INDUSTRIAL SUPPLY CO. (NYSE: MSM) ("MSC," "MSC Industrial," the "Company," "we," "us," or "our"), a leading North American distributor of a broad range of metalworking and maintenance, repair and operations (MRO) products and services, today reported financial results for its fiscal 2025 third quarter ended May 31, 2025. Financial Highlights 2FY25 Q3FY24 Q3ChangeFY25 YTDFY24 YTDChange Net Sales$ 971.1$ 979.4(0.8) %$ 2,791.3$ 2,868.7(2.7) % Income from Operations $ 82.7$ 106.8(22.5) %$ 217.3$ 299.5(27.5) % Operating Margin 8.5 %10.9 %7.8 %10.4 % Net Income Attributable to MSC$ 56.8$ 71.7(20.7) %$ 142.8$ 202.9(29.6) % Diluted EPS$ 1.02 3 $ 1.27 4 (19.7) %$ 2.55 3 $ 3.59 4 (29.0) %Adjusted Financial Highlights 2FY25 Q3FY24 Q3ChangeFY25 YTDFY24 YTDChange Net Sales$ 971.1$ 979.4(0.8) %$ 2,791.3$ 2,868.7(2.7) % Adjusted Income from Operations 1$ 87.2$ 111.5(21.8) %$ 225.5$ 313.0(28.0) % Adjusted Operating Margin 19.0 %11.4 %8.1 %10.9 % Adjusted Net Income Attributable to MSC 1$ 60.2$ 75.2(19.9) %$ 149.0$ 213.2(30.1) % Adjusted Diluted EPS 1$ 1.08 3 $ 1.33 4 (18.8) %$ 2.67 3 $ 3.77 4 (29.2) %1 Represents a non-GAAP financial measure. An explanation and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure are presented in the schedules accompanying this press release. 2 In millions except percentages and per share data or as otherwise noted. 3 Based on 55.8 million and 55.9 million weighted-average diluted shares outstanding for FY25 Q3 and FY25 YTD, respectively. 4 Based on 56.4 million and 56.5 million weighted-average diluted shares outstanding for FY24 Q3 and FY24 YTD, respectively. Erik Gershwind, Chief Executive Officer, said, "We delivered fiscal third quarter results that were in line with our expectations for both average daily sales and operating margins. While we certainly have plenty of room for improvement, we saw early signs of progress in each of our three critical strategic areas of focus — reenergizing the core customer, maintaining momentum in high-touch solutions, and optimizing our cost to serve." Kristen Actis-Grande, Executive Vice President and Chief Financial Officer, added, "Average daily sales declined 0.8% year-over-year, slightly ahead of the midpoint of our outlook, driven by benefits from price and improving performance in volumes. During the fiscal third quarter, we leveraged our strong free cash flow performance and balance sheet to return approximately $56 million to shareholders in the form of dividends and share repurchases, resulting in approximately $181 million returned to shareholders fiscal year-to-date." Gershwind concluded, "The fiscal third quarter included encouraging data points, such as core customer sequential improvement, continued momentum in our high-touch solutions and a building productivity pipeline. Looking longer term, we remain steadfast in our commitment to restoring performance consistent with our long-term objectives of growing to 400 basis points or more above the IP Index and expanding operating margins to the mid-teens." Fourth Quarter Fiscal 2025 Financial Outlook ADS Growth (YoY) (0.5)% - 1.5% Adjusted Operating Margin1 8.5% - 9.0%Full-Year Fiscal 2025 Outlook for Certain Financial Metrics Maintained Depreciation and amortization expense of ~$90M-$95M Interest and other expense of ~$45M Capital expenditures of ~$100M-$110M Free cash flow conversion1 of ~120% Tax rate of ~24.5%-25.0% 1 Guidance provided is a non-GAAP figure presented on an adjusted basis. For further details see the Non-GAAP financial measures information presented in the schedules accompanying this press Call InformationMSC will host a conference call today at 8:30 a.m. EDT to review the Company's fiscal 2025 third quarter results. The call, accompanying slides, and other operational statistics may be accessed at: The conference call may also be accessed at 1-877-443-5575 (U.S.), 1-855-669-9657 (Canada) or 1-412-902-6618 (international). An online archive of the broadcast will be available until July 15, 2025. The Company's reporting date for its fiscal 2025 fourth quarter and full year results is scheduled for October 23, 2025. Contact InformationInvestors: Media: Ryan Mills, CFA Zivanai Mutize Head of Investor Relations Head of Corporate Communications Rmills@ About MSC Industrial Supply Industrial Supply Co. (NYSE:MSM) is a leading North American distributor of a broad range of metalworking and maintenance, repair and operations (MRO) products and services. We help our customers drive greater productivity, profitability and growth with approximately 2.4 million products, inventory management and other supply chain solutions, and deep expertise from more than 80 years of working with customers across industries. Our experienced team of more than 7,000 associates works with our customers to help drive results for their businesses - from keeping operations running efficiently today to continuously rethinking, retooling and optimizing for a more productive tomorrow. For more information on MSC Industrial, please visit Cautionary Note Regarding Forward-Looking StatementsStatements in this press release may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of present or historical fact, that address activities, events or developments that MSC expects, believes or anticipates will or may occur in the future, including statements about results of operations and financial condition, expected future results, expected benefits from our investment and strategic plans and other initiatives, and expected future growth and profitability, are forward-looking statements. The words "will," "may," "believes," "anticipates," "thinks," "expects," "estimates," "plans," "intends" and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. In addition, statements which refer to expectations, projections or other characterizations of future events or circumstances, statements involving a discussion of strategy, plans or intentions, statements about management's assumptions, projections or predictions of future events or market outlook and any other statement other than a statement of present or historical fact are forward-looking statements. The inclusion of any statement in this press release does not constitute an admission by MSC or any other person that the events or circumstances described in such statement are material. In addition, new risks may emerge from time to time and it is not possible for management to predict such risks or to assess the impact of such risks on our business or financial results. Accordingly, future results may differ materially from historical results or from those discussed or implied by these forward-looking statements. Given these risks and uncertainties, the reader should not place undue reliance on these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: general economic conditions in the markets in which we operate; changing customer and product mixes; volatility in commodity, energy and labor prices, and the impact of prolonged periods of low, high or rapid inflation; competition, including the adoption by competitors of aggressive pricing strategies or sales methods; industry consolidation and other changes in the industrial distribution sector; the applicability of laws and regulations relating to our status as a supplier to the U.S. government and public sector; the credit risk of our customers; our ability to accurately forecast customer demands; interruptions in our ability to make deliveries to customers; supply chain disruptions; our ability to attract and retain sales and customer service personnel; the risk of loss of key suppliers or contractors or key brands; changes to trade policies or trade relationships, including tariff policies; risks associated with opening or expanding our customer fulfillment centers; our ability to estimate the cost of healthcare claims incurred under our self-insurance plan; interruption of operations at our headquarters or customer fulfillment centers; products liability due to the nature of the products that we sell; impairments of goodwill and other indefinite-lived intangible assets; the impact of climate change; operating and financial restrictions imposed by the terms of our material debt instruments; our ability to access additional liquidity; the significant influence that our principal shareholders will continue to have over our decisions; our ability to execute on our E-commerce strategies and maintain our digital platforms; costs associated with maintaining our information technology ("IT") systems and complying with data privacy laws; disruptions or breaches of our IT systems or violations of data privacy laws, including such disruptions or breaches in connection with our E-commerce channels; risks related to online payment methods and other online transactions; our ability to remediate a material weakness in our internal control over financial reporting and to maintain effective internal control over financial reporting and our disclosure controls and procedures in the future; the retention of key management personnel; litigation risk due to the nature of our business; failure to comply with environmental, health, and safety laws and regulations; and our ability to comply with, and the costs associated with, social and environmental responsibility policies. Additional information concerning these and other risks is described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual and Quarterly Reports on Forms 10-K and 10-Q, respectively, and in the other reports and documents that we file with the United States Securities and Exchange Commission. We expressly disclaim any obligation to update any of these forward-looking statements, except to the extent required by applicable law. MSC INDUSTRIAL DIRECT CO., INC. Condensed Consolidated Balance Sheets (In thousands) May 31,2025August 31,2024 ASSETS (Unaudited) Current Assets: Cash and cash equivalents $ 71,692$ 29,588 Accounts receivable, net of allowance for credit losses 410,553412,122 Inventories 649,363643,904 Prepaid expenses and other current assets 105,155102,475 Total current assets 1,236,7631,188,089 Property, plant and equipment, net 343,996360,255 Goodwill 723,457723,894 Identifiable intangibles, net 89,443101,147 Operating lease assets 54,31258,649 Other assets 27,62330,279 Total assets $ 2,475,594$ 2,462,313 LIABILITIES AND SHAREHOLDERS' EQUITYCurrent Liabilities:Current portion of debt including obligations under finance leases $ 236,060$ 229,911 Current portion of operating lease liabilities 22,69121,941 Accounts payable 212,968205,933 Accrued expenses and other current liabilities 172,546147,642 Total current liabilities 644,265605,427 Long-term debt including obligations under finance leases 284,973278,853 Noncurrent operating lease liabilities 32,24237,468 Deferred income taxes and tax uncertainties 138,549139,283 Total liabilities 1,100,0291,061,031 Commitments and ContingenciesShareholders' Equity: Preferred Stock —— Class A Common Stock 5757 Additional paid-in capital 1,083,1751,070,269 Retained earnings 423,532456,850 Accumulated other comprehensive loss (21,669)(21,144) Class A treasury stock, at cost (118,006)(114,235) Total MSC Industrial shareholders' equity 1,367,0891,391,797 Noncontrolling interest 8,4769,485 Total shareholders' equity 1,375,5651,401,282 Total liabilities and shareholders' equity $ 2,475,594$ 2,462,313 MSC INDUSTRIAL DIRECT CO., INC. Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited) Thirteen Weeks EndedThirty-Nine Weeks EndedMay 31,2025June 1,2024May 31,2025June 1,2024 Net sales $ 971,145$ 979,350$ 2,791,346$ 2,868,667 Cost of goods sold 573,406578,9031,650,1901,686,492 Gross profit 397,739400,4471,141,1561,182,175 Operating expenses 312,324288,991917,465870,859 Restructuring and other costs 2,6804,6906,43011,787 Income from operations 82,735106,766217,261299,529 Other income (expense): Interest expense (6,031)(6,884)(18,332)(19,155) Interest income 368134942302 Other expense, net (1,958)(4,680)(12,442)(14,067) Total other expense (7,621)(11,430)(29,832)(32,920) Income before provision for income taxes 75,11495,336187,429266,609 Provision for income taxes 18,25324,02445,72764,604 Net income 56,86171,312141,702202,005 Less: Net income (loss) attributable to noncontrolling interest 16(393)(1,080)(897) Net income attributable to MSC Industrial $ 56,845$ 71,705$ 142,782$ 202,902 Per share data attributable to MSC Industrial: Net income per common share: Basic $ 1.02$ 1.28$ 2.56$ 3.60 Diluted $ 1.02$ 1.27$ 2.55$ 3.59 Weighted-average shares used in computing net income per common share: Basic 55,69456,21455,79556,323 Diluted 55,76556,35155,89556,514 MSC INDUSTRIAL DIRECT CO., INC. Condensed Consolidated Statements of Comprehensive Income (In thousands) (Unaudited) Thirteen Weeks EndedThirty-Nine Weeks EndedMay 31,2025June 1,2024May 31,2025June 1,2024 Net income, as reported $ 56,861$ 71,312$ 141,702$ 202,005 Other comprehensive income, net of tax: Foreign currency translation adjustments 6,208(217)(454)244 Comprehensive income 63,06971,095141,248202,249 Comprehensive income attributable to noncontrolling interest:Net (income) loss (16)3931,080897 Foreign currency translation adjustments (362)4(71)(72) Comprehensive income attributable to MSC Industrial $ 62,691$ 71,492$ 142,257$ 203,074 MSC INDUSTRIAL DIRECT CO., INC. Condensed Consolidated Statements of Cash Flows (In thousands)(Unaudited) Thirty-Nine Weeks EndedMay 31,2025June 1,2024 Cash Flows from Operating Activities:Net income $ 141,702$ 202,005 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 67,50160,288 Amortization of cloud computing arrangements 1,4391,437 Non-cash operating lease cost 17,56316,679 Stock-based compensation 10,39713,347 Loss on disposal of property, plant and equipment 575363 Loss on sale of property 1,167— Non-cash changes in fair value of estimated contingent consideration 293661 Provision for credit losses 5,6995,180 Expenditures for cloud computing arrangements (4,430)(17,161) Deferred income taxes and tax uncertainties (726)(1,072) Changes in operating assets and liabilities: Accounts receivable (3,806)12,586 Inventories (4,761)64,251 Prepaid expenses and other current assets (2,335)4,488 Operating lease liabilities (17,700)(16,974) Other assets 623,272 Accounts payable and accrued liabilities 40,821(45,917) Total adjustments 111,759101,428 Net cash provided by operating activities 253,461303,433 Cash Flows from Investing Activities:Expenditures for property, plant and equipment (71,109)(73,354) Cash used in acquisitions, net of cash acquired (790)(9,859) Net proceeds from sale of property 30,336— Net cash used in investing activities (41,563)(83,213) Cash Flows from Financing Activities:Repurchases of Class A Common Stock (39,138)(167,166) Payments of regular cash dividends (142,252)(140,695) Proceeds from sale of Class A Common Stock in connection with Associate Stock Purchase Plan 3,1933,465 Proceeds from exercise of Class A Common Stock options 1208,833 Borrowings under credit facilities 239,250359,000 Payments under credit facilities (226,750)(309,000) Contingent consideration paid (3,500)— Borrowings under financing obligations 6993,850 Payments under Shelf Facility Agreements and Private Placement Debt —(50,000) Proceeds from other long-term debt —50,000 Other, net (1,220)(2,762) Net cash used in financing activities (169,598)(244,475) Effect of foreign exchange rate changes on cash and cash equivalents (196)131 Net increase (decrease) in cash and cash equivalents 42,104(24,124) Cash and cash equivalents—beginning of period 29,58850,052 Cash and cash equivalents—end of period $ 71,692$ 25,928 Supplemental Disclosure of Cash Flow Information:Cash paid for income taxes $ 35,402$ 66,071 Cash paid for interest $ 18,036$ 18,235 Non-GAAP Financial Measures To supplement MSC's unaudited selected financial data presented consistent with accounting principles generally accepted in the United States ("GAAP"), the Company discloses certain non-GAAP financial measures, including non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP provision for income taxes, non-GAAP net income and non-GAAP diluted earnings per share, that exclude items such as restructuring and other costs, loss on sale of property, share reclassification litigation costs, share reclassification costs (prior year) and acquisition-related costs (prior year), and tax effects. These non-GAAP financial measures are not presented in accordance with GAAP or alternatives for GAAP financial measures and may be different from similar non-GAAP financial measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP financial measure and should only be used to evaluate MSC's results of operations in conjunction with the corresponding GAAP financial measure. This press release also includes certain forward-looking information that is not presented in accordance with GAAP. The Company believes that a quantitative reconciliation of such forward-looking information to the most directly comparable financial measures calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts because a reconciliation of these non-GAAP financial measures would require the Company to predict the timing and likelihood of potential future events such as restructurings, M&A activity, capital expenditures and other infrequent or unusual gains and losses. Neither the timing or likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measures is not provided. Results Excluding Restructuring and Other Costs, Loss on Sale of Property, Share Reclassification Litigation Costs, Share Reclassification Costs (prior year) and Acquisition-Related Costs (prior year) In calculating certain non-GAAP financial measures, we exclude items such as restructuring and other costs, loss on sale of property, share reclassification litigation costs, share reclassification costs (prior year) and acquisition-related costs (prior year), and tax effects. Management makes these adjustments to facilitate a review of the Company's operating performance on a comparable basis between periods, for comparing with forecasts and strategic plans, for identifying and analyzing trends in the Company's underlying business and for benchmarking performance externally against competitors. We believe that investors benefit from seeing results from the perspective of management in addition to seeing results presented in accordance with GAAP for the same reasons and purposes for which management uses such non-GAAP financial measures. MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirteen weeks Ended May 31, 2025 (In thousands, except percentages and per share data)GAAP Financial MeasureItems Affecting ComparabilityNon-GAAP Financial MeasureTotal MSC IndustrialRestructuring and Other Costs Loss on Sale of PropertyShare Reclassification Litigation Costs Adjusted Total MSC Industrial Net Sales $ 971,145$ —$ —$ —$ 971,145 Cost of Goods Sold 573,406———573,406 Gross Profit 397,739———397,739 Gross Margin 41.0 %— %— %— %41.0 % Operating Expenses 312,324—1,167644310,513 Operating Expenses as % of Sales 32.2 %— %(0.1) %(0.1) %32.0 % Restructuring and Other Costs 2,6802,680——— Income from Operations 82,735(2,680)(1,167)(644)87,226 Operating Margin 8.5 %0.3 %0.1 %0.1 %9.0 % Total Other Expense (7,621)———(7,621) Income before provision for income taxes 75,114(2,680)(1,167)(644)79,605 Provision for income taxes 18,253(651)(284)(156)19,344 Net income 56,861(2,029)(883)(488)60,261 Net loss attributable to noncontrolling interest 16———16 Net income attributable to MSC Industrial $ 56,845$ (2,029)$ (883)$ (488)$ 60,245 Net income per common share: Diluted $ 1.02$ (0.04)$ (0.02)$ (0.01)$ 1.08*Individual amounts may not agree to the total due to rounding. MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirty-Nine Weeks Ended May 31, 2025 (In thousands, except percentages and per share data)GAAP Financial MeasureItems Affecting ComparabilityNon-GAAP Financial MeasureTotal MSC IndustrialRestructuring and Other Costs Loss on Sale of PropertyShare Reclassification Litigation CostsAdjusted Total MSC Industrial Net Sales $ 2,791,346$ —$ —$ —$ 2,791,346 Cost of Goods Sold 1,650,190———1,650,190 Gross Profit 1,141,156———1,141,156 Gross Margin 40.9 %— %— %— %40.9 % Operating Expenses 917,465—1,167644915,654 Operating Expenses as % of Sales 32.9 %— %0.0 %0.0 %32.8 % Restructuring and Other Costs 6,4306,430——— Income from Operations 217,261(6,430)(1,167)(644)225,502 Operating Margin 7.8 %0.2 %0.0 %0.0 %8.1 % Total Other Expense (29,832)———(29,832) Income before provision for income taxes 187,429(6,430)(1,167)(644)195,670 Provision for income taxes 45,727(1,574)(285)(157)47,743 Net income 141,702(4,856)(882)(487)147,927 Net loss attributable to noncontrolling interest (1,080)———(1,080) Net income attributable to MSC Industrial $ 142,782$ (4,856)$ (882)$ (487)$ 149,007 Net income per common share: Diluted $ 2.55$ (0.09)$ (0.02)$ (0.01)$ 2.67*Individual amounts may not agree to the total due to rounding. MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirteen Weeks Ended June 1, 2024 (In thousands, except percentages and per share data)GAAP Financial MeasureItems Affecting ComparabilityNon-GAAP Financial MeasureTotal MSC IndustrialRestructuring and Other Costs Adjusted Total MSC Industrial Net Sales $ 979,350$ —$ 979,350 Cost of Goods Sold 578,903—578,903 Gross Profit 400,447—400,447 Gross Margin 40.9 %— %40.9 % Operating Expenses 288,991—288,991 Operating Expenses as % of Sales 29.5 %— %29.5 % Restructuring and Other Costs 4,6904,690— Income from Operations 106,766(4,690)111,456 Operating Margin 10.9 %0.5 %11.4 % Total Other Expense (11,430)—(11,430) Income before provision for income taxes 95,336(4,690)100,026 Provision for income taxes 24,024(1,183)25,207 Net income 71,312(3,507)74,819 Net loss attributable to noncontrolling interest (393)—(393) Net income attributable to MSC Industrial $ 71,705$ (3,507)$ 75,212 Net income per common share: Diluted $ 1.27$ (0.06)$ 1.33*Individual amounts may not agree to the total due to rounding. MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirty-Nine Weeks Ended June 1, 2024 (In thousands, except percentages and per share data)GAAP Financial MeasureItems Affecting ComparabilityNon-GAAP Financial MeasureTotal MSC IndustrialRestructuring and Other Costs Acquisition-Related Costs Share Reclassification CostsAdjusted Total MSC Industrial Net Sales $ 2,868,667$ —$ —$ —$ 2,868,667 Cost of Goods Sold 1,686,492———1,686,492 Gross Profit 1,182,175———1,182,175 Gross Margin 41.2 %— %— %— %41.2 % Operating Expenses 870,859—4651,187869,207 Operating Expenses as % of Sales 30.4 %— %0.0 %0.0 %30.3 % Restructuring and Other Costs 11,78711,787——— Income from Operations 299,529(11,787)(465)(1,187)312,968 Operating Margin 10.4 %0.4 %0.0 %0.0 %10.9 % Total Other Expense (32,920)———(32,920) Income before provision for income taxes 266,609(11,787)(465)(1,187)280,048 Provision for income taxes 64,604(2,767)(113)(288)67,772 Net income 202,005(9,020)(352)(899)212,276 Net loss attributable to noncontrolling interest (897)———(897) Net income attributable to MSC Industrial $ 202,902$ (9,020)$ (352)$ (899)$ 213,173 Net income per common share: Diluted $ 3.59$ (0.16)$ (0.01)$ (0.02)$ 3.77*Individual amounts may not agree to the total due to rounding. 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