MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2022 FOURTH QUARTER AND FULL YEAR RESULTS
MSC INDUSTRIAL SUPPLY CO. (NYSE: MSM) reported strong fiscal 2022 Q4 results with net sales of $1.0 billion, a 23% year-over-year increase. Operating income rose 57.8% to $144.0 million, yielding an operating margin of 14.1%. Diluted EPS jumped to $1.86, up from $1.18 in Q4 FY21. For the full year, net sales reached $3.7 billion, up 13.8%, with diluted EPS at $6.06, a 56.6% increase. The company expects continued growth and margin expansion in fiscal 2023.
- Net sales increased by 23% YoY to $1.0 billion in Q4.
- Operating income rose by 57.8% in Q4 to $144.0 million.
- Diluted EPS increased by 57.6% YoY to $1.86 in Q4.
- For FY2022, net sales grew by 13.8% to $3.7 billion.
- Adjusted operating margin improved by 140 basis points in FY2022.
- None.
FISCAL 2022 Q4 HIGHLIGHTS
- Net sales of
$1.0 billion , an increase of23% YoY (14.0% increase YoY on an average daily sales basis) - Average daily sales growth of roughly 10 percentage points above the Industrial Production ("IP") index
- Operating income of
$144.0 million , or$138.6 million adjusted to exclude a gain on sale of property, acquisition-related costs, and restructuring and other charges4 - Operating margin of
14.1% , or13.6% excluding the adjustments described above4 - Diluted EPS of
$1.86 vs.$1.18 in the prior year quarter - Adjusted diluted EPS of
$1.79 vs.$1.26 in the prior year quarter4 - Repurchased 300,000 shares during the quarter at an average purchase price per share of
$73.75
FISCAL 2022 HIGHLIGHTS
- Net sales of
$3.7 billion , an increase of13.8% YoY (10.7% increase YoY on an average daily sales basis) - Operating income of
$468.7 million , or$475.3 million adjusted to exclude a gain on sale of property, acquisition-related costs, and restructuring and other charges4 - Operating margin of
12.7% , or12.9% excluding the adjustments described above4 - Diluted EPS of
$6.06 vs.$3.87 in the prior year - Adjusted diluted EPS of
$6.15 vs.$4.81 in the prior year4
MELVILLE, N.Y. and DAVIDSON, N.C., Oct. 20, 2022 /PRNewswire/ -- MSC INDUSTRIAL SUPPLY CO. (NYSE: MSM), "MSC" or the "Company," a leading North American distributor of metalworking and maintenance, repair and operations (MRO) products and services, today reported financial results for its fiscal 2022 fourth quarter and full year ended September 3, 2022. The fiscal 2022 fourth quarter had five more selling days compared to the prior fiscal year quarter due to fiscal year 2022 including a 53rd week.
Financial Highlights1 | FY22 Q4 | FY21 Q4 | Change | FY22 | FY21 | Change | ||||||
Net Sales | 23.0 % | 13.8 % | ||||||||||
Income from Operations | 57.8 % | 55.3 % | ||||||||||
Operating Margin | 14.1 % | 11.0 % | 12.7 % | 9.3 % | ||||||||
Net Income attributable to MSC | 57.9 % | 56.7 % | ||||||||||
Diluted EPS | 2 | 3 | 57.6 % | 2 | 3 | 56.6 % |
Adjusted Financial Highlights1,4 | FY22 Q4 | FY21 Q4 | Change | FY22 | FY21 | Change | ||||||
Net Sales | 23.0 % | 13.8 % | ||||||||||
Income from Operations | 43.1 % | 27.8 % | ||||||||||
Operating Margin | 13.6 % | 11.7 % | 12.9 % | 11.5 % | ||||||||
Net Income attributable to MSC | 42.3 % | 27.7 % | ||||||||||
Diluted EPS | 2 | 3 | 42.1 % | 2 | 3 | 27.9 % |
1 In millions except percentages and per share data or as otherwise noted. |
2 Based on 56.1 million and 56.0 million diluted shares outstanding for FY22 Q4 and FY22, respectively. |
3 Based on 55.9 million and 56.1 million diluted shares outstanding for FY21 Q4 and FY21, respectively. |
4 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 schedules accompanying this press release. |
Erik Gershwind, President and Chief Executive Officer, said, "We ended fiscal 2022 on a strong note as we executed across our growth initiatives and delivered another quarter of double-digit average daily sales growth. This continued momentum translated into average daily sales growth of
Kristen Actis-Grande, Executive Vice President and Chief Financial Officer, added, "In addition to revenue growth, I am encouraged by the profitability of our business in what has been a complex operating environment. We delivered 140 basis points of adjusted operating margin improvement in fiscal 2022, resulting in an adjusted incremental margin of over
Gershwind concluded, "I am proud of the hard work and resiliency of our associates, whose focus and dedication are integral to the near-term and long-term success of MSC. Looking forward, I remain excited about the long-term growth prospects of our business. We have a leading position in the marketplace across our core business lines and our ability to execute in any macro environment sets us up to continue delivering strong results in fiscal 2023 and beyond."
Conference Call Information
MSC will host a conference call today at 8:30 a.m. EDT to review the Company's fiscal 2022 fourth quarter and full year results. The call, accompanying slides, and other operational statistics may be accessed at: https://investor.mscdirect.com. 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 November 3, 2022.
The Company's reporting date for fiscal 2023 first quarter results is scheduled for January 5, 2023.
About MSC Industrial Supply Co.
MSC 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 2.1 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 approximately 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 mscdirect.com.
Cautionary Note Regarding Forward-Looking Statements:
Statements 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 we expect, believe or anticipate will or may occur in the future, including statements about the future impact of COVID-19 on our business operations, results of operations and financial condition, expected future results, expected benefits from our investment and strategic plans and other initiatives, and expected future growth, profitability and return on invested capital, 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, any 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 and energy prices, the impact of prolonged periods of low, high and rapid inflation, and fluctuations in interest rates; competition, including the adoption by competitors of aggressive pricing strategies and sales methods; industry consolidation and other changes in the industrial distribution sector; our ability to realize the expected benefits from our investment and strategic plans, including our transition from being a spot-buy supplier to a mission-critical partner to our customers; our ability to realize the expected cost savings and benefits from our restructuring activities and structural cost reductions; the potential impact of the COVID-19 pandemic on our sales, operations and supply chain; the retention of key personnel; the credit risk of our customers, including changes in credit risk as a result of the COVID-19 pandemic, higher inflation and fluctuations in interest rates; the risk of customer cancellation or rescheduling of orders; difficulties in calibrating customer demand for our products, such as personal protective equipment or "PPE" products, which could cause an inability to sell excess products ordered from manufacturers resulting in inventory write-downs or could conversely cause inventory shortages of such products; work stoppages, labor shortages or other business interruptions (including those due to extreme weather conditions) at transportation centers, shipping ports, our headquarters or our customer fulfillment centers; disruptions or breaches of our information technology systems, or violations of data privacy laws; the retention of qualified sales and customer service personnel and metalworking specialists; the risk of loss of key suppliers or contractors or key brands or supply chain disruptions, including due to import restrictions or global geopolitical conditions; changes to governmental trade or sanctions policies, including the impact from significant import restrictions or tariffs or moratoriums on economic activity with certain countries or regions; risks related to opening or expanding our customer fulfillment centers; our ability to estimate the cost of healthcare claims incurred under our self-insurance plan; litigation risk due to the nature of our business; risks associated with the integration of acquired businesses or other strategic transactions; financial restrictions on outstanding borrowings; our ability to maintain our credit facilities or incur additional borrowings on terms we deem attractive; the interest rate uncertainty due to the London InterBank Offered Rate (LIBOR) reform; the failure to comply with applicable environmental, health and safety laws and regulations, including government action in response to the COVID-19 pandemic, and other laws applicable to our business; the outcome of government or regulatory proceedings or future litigation; goodwill and intangible assets recorded resulting from our acquisitions could be impaired; our common stock price may be volatile due to factors outside of our control; and the significant control that our principal shareholders exercise over us, which may result in our taking actions or failing to take actions which our other shareholders do not prefer. 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. | |||||
Consolidated Balance Sheets | |||||
(In thousands) | |||||
September 3, | August 28, | ||||
2022 | 2021 | ||||
ASSETS | |||||
Current Assets: | |||||
Cash and cash equivalents | $ | 43,537 | $ | 40,536 | |
Accounts receivable, net of allowance for credit losses | 687,608 | 560,373 | |||
Inventories | 715,625 | 624,169 | |||
Prepaid expenses and other current assets | 96,853 | 89,167 | |||
Total current assets | 1,543,623 | 1,314,245 | |||
Property, plant and equipment, net | 286,666 | 298,416 | |||
Goodwill | 710,130 | 692,704 | |||
Identifiable intangibles, net | 114,328 | 101,854 | |||
Operating lease assets | 64,780 | 49,011 | |||
Other assets | 9,887 | 5,885 | |||
Total assets | $ | 2,729,414 | $ | 2,462,115 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Current Liabilities: | |||||
Current portion of debt including obligations under finance leases | $ | 325,680 | $ | 202,433 | |
Current portion of operating lease liabilities | 18,560 | 13,927 | |||
Accounts payable | 217,378 | 186,330 | |||
Accrued expenses and other current liabilities | 164,326 | 159,238 | |||
Total current liabilities | 725,944 | 561,928 | |||
Long-term debt including obligations under finance leases | 468,912 | 583,616 | |||
Noncurrent operating lease liabilities | 47,616 | 36,429 | |||
Deferred income taxes and tax uncertainties | 124,659 | 108,827 | |||
Other noncurrent liabilities | — | 9,443 | |||
Total liabilities | 1,367,131 | 1,300,243 | |||
Commitments and Contingencies | |||||
Shareholders' Equity: | |||||
Preferred Stock | — | — | |||
Class A Common Stock | 48 | 48 | |||
Class B Common Stock | 9 | 9 | |||
Additional paid-in capital | 798,408 | 740,867 | |||
Retained earnings | 681,292 | 532,315 | |||
Accumulated other comprehensive loss | (23,121) | (17,984) | |||
Class A treasury stock, at cost | (106,202) | (104,384) | |||
Total MSC Industrial shareholders' equity | 1,350,434 | 1,150,871 | |||
Noncontrolling interest | 11,849 | 11,001 | |||
Total shareholders' equity | 1,362,283 | 1,161,872 | |||
Total liabilities and shareholders' equity | $ | 2,729,414 | $ | 2,462,115 |
MSC INDUSTRIAL DIRECT CO., INC. | |||||||||||
Consolidated Statements of Income | |||||||||||
(In thousands, except per share data) | |||||||||||
(Unaudited) | |||||||||||
Quarters Ended | Fiscal Years Ended | ||||||||||
September 3, | August 28, | September 3, | August 28, | ||||||||
2022 | 2021 | 2022 | 2021 | ||||||||
Net sales | $ | 1,022,245 | $ | 831,031 | $ | 3,691,893 | $ | 3,243,224 | |||
Cost of goods sold | 594,017 | 482,056 | 2,133,645 | 1,909,709 | |||||||
Gross profit | 428,228 | 348,975 | 1,558,248 | 1,333,515 | |||||||
Operating expenses | 290,262 | 253,312 | 1,083,862 | 994,468 | |||||||
Impairment loss, net | — | — | — | 5,886 | |||||||
Restructuring and other costs | 4,121 | 4,449 | 15,805 | 31,392 | |||||||
Gain on sale of property | (10,132) | — | (10,132) | - | |||||||
Income from operations | 143,977 | 91,214 | 468,713 | 301,769 | |||||||
Other income (expense): | |||||||||||
Interest expense | (5,977) | (3,878) | (17,599) | (14,510) | |||||||
Interest income | 93 | 14 | 150 | 66 | |||||||
Other income (expense), net | (368) | (670) | (132) | 1,054 | |||||||
Total other expense | (6,252) | (4,534) | (17,581) | (13,390) | |||||||
Income before provision for income taxes | 137,725 | 86,680 | 451,132 | 288,379 | |||||||
Provision for income taxes | 33,371 | 20,803 | 110,650 | 70,442 | |||||||
Net income | 104,354 | 65,877 | 340,482 | 217,937 | |||||||
Less: Net income (loss) attributable to noncontrolling interest | 223 | (57) | 696 | 1,030 | |||||||
Net income attributable to MSC Industrial | $ | 104,131 | $ | 65,934 | $ | 339,786 | $ | 216,907 | |||
Per share data attributable to MSC Industrial: | |||||||||||
Net income per common share: | |||||||||||
Basic | $ | 1.86 | $ | 1.19 | $ | 6.09 | $ | 3.89 | |||
Diluted | $ | 1.86 | $ | 1.18 | $ | 6.06 | $ | 3.87 | |||
Weighted-average shares used in computing | |||||||||||
Basic | 55,858 | 55,509 | 55,777 | 55,737 | |||||||
Diluted | 56,061 | 55,903 | 56,045 | 56,093 |
MSC INDUSTRIAL DIRECT CO., INC. | |||||
Consolidated Statements of Comprehensive Income | |||||
(In thousands) | |||||
Fiscal Years Ended | |||||
September 3, | August 28, | ||||
2022 | 2021 | ||||
Net income, as reported | $ | 340,482 | $ | 217,937 | |
Other comprehensive income, net of tax: | |||||
Foreign currency translation adjustments | (4,985) | 3,852 | |||
Comprehensive income | 335,497 | 221,789 | |||
Comprehensive income attributable to noncontrolling interest: | |||||
Net income | (696) | (1,030) | |||
Foreign currency translation adjustments | (152) | (418) | |||
Comprehensive income attributable to MSC Industrial | $ | 334,649 | $ | 220,341 |
MSC INDUSTRIAL DIRECT CO., INC. | |||||
Consolidated Statements of Cash Flows | |||||
(In thousands) | |||||
Fiscal Years Ended | |||||
September 3, | August 28, | ||||
2022 | 2021 | ||||
Cash Flows from Operating Activities: | |||||
Net income | $ | 340,482 | $ | 217,937 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 70,376 | 68,846 | |||
Non-cash operating lease cost | 17,190 | 18,578 | |||
Stock-based compensation | 19,264 | 17,721 | |||
Loss on disposal of property, plant and equipment | 921 | 563 | |||
Gain on sale of property | (10,132) | — | |||
Inventory write-down | — | 30,091 | |||
Operating lease and fixed asset impairment due to restructuring | — | 16,335 | |||
Non-cash changes in fair value of estimated contingent consideration | (879) | — | |||
Provision for credit losses | 9,806 | 8,181 | |||
Deferred income taxes and tax uncertainties | 10,761 | (13,611) | |||
Changes in operating assets and liabilities, net of amounts associated with business acquired: | |||||
Accounts receivable | (123,571) | (73,041) | |||
Inventories | (81,494) | (107,037) | |||
Prepaid expenses and other current assets | (7,429) | (10,141) | |||
Operating lease liabilities | (17,147) | (33,312) | |||
Other assets | (2,258) | (1,055) | |||
Accounts payable and accrued liabilities | 20,293 | 84,407 | |||
Total adjustments | (94,299) | 6,525 | |||
Net cash provided by operating activities | 246,183 | 224,462 | |||
Cash Flows from Investing Activities: | |||||
Expenditures for property, plant and equipment | (61,373) | (53,746) | |||
Cash used in business acquisitions, net of cash acquired | (57,865) | (22,000) | |||
Net proceeds from sale of property | 24,745 | — | |||
Net cash used in investing activities | (94,493) | (75,746) | |||
Cash Flows from Financing Activities: | |||||
Repurchases of common stock | (27,359) | (71,261) | |||
Payments of regular cash dividends | (167,376) | (167,299) | |||
Payments of special cash dividend | — | (195,351) | |||
Proceeds from sale of Class A Common Stock in connection with associate stock purchase plan | 4,296 | 4,136 | |||
Proceeds from exercise of Class A Common Stock options | 34,659 | 29,667 | |||
Borrowings under credit facilities | 374,000 | 583,500 | |||
Payments under credit facilities | (364,500) | (399,200) | |||
Contributions from noncontrolling interest | — | 100 | |||
Proceeds from other long-term debt | — | 4,750 | |||
Payments under Shelf Facility Agreements and Private Placement Debt | — | (20,000) | |||
Payments on finance lease and financing obligations | (2,466) | (2,584) | |||
Other, net | 606 | (205) | |||
Net cash used in financing activities | (148,140) | (233,747) | |||
Effect of foreign exchange rate changes on cash and cash equivalents | (549) | 356 | |||
Net increase (decrease) in cash and cash equivalents | 3,001 | (84,675) | |||
Cash and cash equivalents – beginning of year | 40,536 | 125,211 | |||
Cash and cash equivalents – end of year | $ | 43,537 | $ | 40,536 | |
Supplemental Disclosure of Cash Flow Information: | |||||
Cash paid for income taxes | $ | 117,038 | $ | 73,116 | |
Cash paid for interest | $ | 16,903 | $ | 13,995 |
Non-GAAP Financial Measures
- Results Excluding Impairment Loss and Loss Recovery (prior year), Inventory Write-downs (prior year), Legal Costs (prior year), Gain on Sale of Property, Acquisition-Related Costs and Restructuring and Other Costs
To supplement MSC's unaudited and audited 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 gross profit, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP incremental margin, non-GAAP provision for income taxes, non-GAAP net income and non-GAAP diluted earnings per share, that exclude impairment loss and loss recovery (prior year), inventory write-downs (prior year), legal costs for impairment of prepaid PPE (prior year), gain on sale of property, acquisition-related costs, restructuring and other costs, and tax effects.
These non-GAAP financial measures are not presented in accordance with GAAP or an alternative 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 measures and should only be used to evaluate MSC's results of operations in conjunction with the corresponding GAAP financial measures.
In calculating non-GAAP financial measures, we exclude impairment loss and loss recovery (prior year), inventory write-downs (prior year), legal costs for impairment of prepaid PPE (prior year), gain on sale of property, acquisition-related costs, restructuring and other costs, and tax effects. Management makes these adjustments to facilitate a review of the Company's operating performance on a comparable basis between periods, for comparison 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 | ||||||||||||||
Fourteen Weeks Ended September 3, 2022 | ||||||||||||||
(In thousands, except percentages and per share data) | ||||||||||||||
GAAP Financial | Items Affecting Comparability | Non-GAAP | ||||||||||||
Total MSC | Restructuring | Gain on Sale of | Acquisition- | Adjusted Total | ||||||||||
Net Sales | $ | 1,022,245 | $ | - | $ | - | $ | - | $ | 1,022,245 | ||||
Cost of Goods Sold | 594,017 | - | - | - | 594,017 | |||||||||
Gross Profit | 428,228 | - | - | - | 428,228 | |||||||||
Gross Margin | 41.9 % | - | - | - | 41.9 % | |||||||||
Operating Expenses | 290,262 | - | - | 665 | 289,597 | |||||||||
Operating Exp as % of Sales | 28.4 % | - | - | 0.1 % | 28.3 % | |||||||||
Restructuring and Other Costs | 4,121 | 4,121 | - | - | - | |||||||||
Gain on Sale of Property | (10,132) | - | (10,132) | - | - | |||||||||
Income from Operations | 143,977 | (4,121) | 10,132 | (665) | 138,631 | |||||||||
Operating Margin | 14.1 % | -0.4 % | 1.0 % | -0.1 % | 13.6 % | |||||||||
Incremental Margin | 27.6 % | 21.8 % | ||||||||||||
Total Other Expense | (6,252) | - | - | - | (6,252) | |||||||||
Income before provision for income taxes | 137,725 | (4,121) | 10,132 | (665) | 132,379 | |||||||||
Provision for income taxes | 33,371 | (1,080) | 2,655 | (174) | 31,970 | |||||||||
Net income | 104,354 | (3,041) | 7,477 | (491) | 100,409 | |||||||||
Net income attributable to noncontrolling interest | 223 | - | - | - | 223 | |||||||||
Net income attributable to MSC Industrial | $ | 104,131 | $ | (3,041) | $ | 7,477 | $ | (491) | $ | 100,186 | ||||
Net income per common share: | ||||||||||||||
Diluted | $ | 1.86 | $ | (0.06) | $ | 0.14 | $ | (0.01) | $ | 1.79 | ||||
*Individual amounts may not agree to the total due to rounding |
MSC INDUSTRIAL DIRECT CO., INC. | ||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Information | ||||||||||||||
Fiscal Year Ended September 3, 2022 | ||||||||||||||
(In thousands, except percentages and per share data) | ||||||||||||||
GAAP Financial | Items Affecting Comparability | Non-GAAP | ||||||||||||
Total MSC | Restructuring | Gain on Sale of | Acquisition- | Adjusted Total | ||||||||||
Net Sales | $ | 3,691,893 | $ | - | $ | - | $ | - | $ | 3,691,893 | ||||
Cost of Goods Sold | 2,133,645 | - | - | - | 2,133,645 | |||||||||
Gross Profit | 1,558,248 | - | - | - | 1,558,248 | |||||||||
Gross Margin | 42.2 % | - | - | - | 42.2 % | |||||||||
Operating Expenses | 1,083,862 | - | - | 876 | 1,082,986 | |||||||||
Operating Exp as % of Sales | 29.4 % | - | - | 0.0 % | 29.3 % | |||||||||
Restructuring and Other Costs | 15,805 | 15,805 | - | - | - | |||||||||
Gain on Sale of Property | (10,132) | - | (10,132) | - | - | |||||||||
Income from Operations | 468,713 | (15,805) | 10,132 | (876) | 475,262 | |||||||||
Operating Margin | 12.7 % | -0.4 % | 0.3 % | 0.0 % | 12.9 % | |||||||||
Incremental Margin | 37.2 % | 23.1 % | ||||||||||||
Total Other Expense | (17,581) | - | - | - | (17,581) | |||||||||
Income before provision for income taxes | 451,132 | (15,805) | 10,132 | (876) | 457,681 | |||||||||
Provision for income taxes | 110,650 | (4,016) | 2,574 | (223) | 112,315 | |||||||||
Net income | 340,482 | (11,789) | 7,558 | (653) | 345,366 | |||||||||
Net income attributable to noncontrolling interest | 696 | - | - | - | 696 | |||||||||
Net income attributable to MSC Industrial | $ | 339,786 | $ | (11,789) | $ | 7,558 | $ | (653) | $ | 344,670 | ||||
Net income per common share: | ||||||||||||||
Diluted | $ | 6.06 | $ | (0.21) | $ | 0.14 | $ | (0.01) | $ | 6.15 | ||||
*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 August 28, 2021 | |||||||||||
(In thousands, except percentages and per share data) | |||||||||||
GAAP Financial | Items Affecting Comparability | Non-GAAP | |||||||||
Total MSC Industrial | Restructuring and | Legal and | Adjusted Total MSC | ||||||||
Net Sales | $ | 831,031 | $ | - | $ | - | $ | 831,031 | |||
Cost of Goods Sold | 482,056 | - | - | 482,056 | |||||||
Gross Profit | 348,975 | - | - | 348,975 | |||||||
Gross Margin | 42.0 % | - | - | 42.0 % | |||||||
Operating Expenses | 253,312 | - | 1,199 | 252,113 | |||||||
Operating Exp as % of Sales | 30.5 % | - | 0.1 % | 30.3 % | |||||||
Restructuring and Other Costs | 4,449 | 4,449 | - | - | |||||||
Income from Operations | 91,214 | (4,449) | (1,199) | 96,862 | |||||||
Operating Margin | 11.0 % | -0.5 % | -0.1 % | 11.7 % | |||||||
Total Other Expense | (4,534) | - | - | (4,534) | |||||||
Income before provision for income taxes | 86,680 | (4,449) | (1,199) | 92,328 | |||||||
Provision for income taxes | 20,803 | (922) | (249) | 21,974 | |||||||
Net income | 65,877 | (3,527) | (950) | 70,354 | |||||||
Net income attributable to noncontrolling interest | (57) | - | - | (57) | |||||||
Net income attributable to MSC Industrial | $ | 65,934 | $ | (3,527) | $ | (950) | $ | 70,411 | |||
Net income per common share: | |||||||||||
Diluted | $ | 1.18 | $ | (0.06) | $ | (0.02) | $ | 1.26 | |||
(1)Legal and acquisition costs incurred during the fourth fiscal quarter includes | |||||||||||
*Individual amounts may not agree to the total due to rounding |
MSC INDUSTRIAL DIRECT CO., INC. | |||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Information | |||||||||||||||||
Fiscal Year Ended August 28, 2021 | |||||||||||||||||
(In thousands, except percentages and per share data) | |||||||||||||||||
GAAP | Items Affecting Comparability | Non-GAAP | |||||||||||||||
Total MSC | Inventory | Restructuring | Impairment | Legal and | Adjusted Total | ||||||||||||
Net Sales | $ | 3,243,224 | $ | - | $ | - | $ | - | $ | - | $ | 3,243,224 | |||||
Cost of Goods Sold | 1,909,709 | 30,091 | - | - | - | 1,879,618 | |||||||||||
Gross Profit | 1,333,515 | (30,091) | - | - | - | 1,363,606 | |||||||||||
Gross Margin | 41.1 % | -0.9 % | - | - | - | 42.0 % | |||||||||||
Operating Expenses | 994,468 | - | - | - | 2,620 | 991,848 | |||||||||||
Operating Exp as % of Sales | 30.7 % | - | - | - | 0.1 % | 30.6 % | |||||||||||
Impairment Loss, net | 5,886 | - | - | 5,886 | - | - | |||||||||||
Restructuring and Other Costs | 31,392 | - | 31,392 | - | - | - | |||||||||||
Income from Operations | 301,769 | (30,091) | (31,392) | (5,886) | (2,620) | 371,758 | |||||||||||
Operating Margin | 9.3 % | -0.9 % | -1.0 % | -0.2 % | -0.1 % | 11.5 % | |||||||||||
Total Other Expense | (13,390) | - | - | - | - | (13,390) | |||||||||||
Income before provision for income taxes | 288,379 | (30,091) | (31,392) | (5,886) | (2,620) | 358,368 | |||||||||||
- | |||||||||||||||||
Provision for income taxes | 70,442 | (7,309) | (7,625) | (1,430) | (636) | 87,442 | |||||||||||
Net income | 217,937 | (22,782) | (23,767) | (4,456) | (1,984) | 270,926 | |||||||||||
Net income attributable to noncontrolling interest | 1,030 | - | - | - | - | 1,030 | |||||||||||
Net income attributable to MSC Industrial | $ | 216,907 | $ | (22,782) | $ | (23,767) | $ | (4,456) | $ | (1,984) | $ | 269,896 | |||||
Net income per common share: | |||||||||||||||||
Diluted | $ | 3.87 | $ | (0.41) | $ | (0.42) | $ | (0.08) | $ | (0.04) | $ | 4.81 | |||||
(1) Legal and acquisition costs incurred during fiscal year 2021 include | |||||||||||||||||
*Individual amounts may not agree to the total due to rounding |
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SOURCE MSC Industrial Supply Co.
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