MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2025 THIRD QUARTER RESULTS
MSC Industrial Supply Co. (NYSE: MSM) reported its fiscal 2025 third quarter results, showing a decline in performance across key metrics. Net sales decreased 0.8% to $971.1 million, while operating income fell 22.5% to $82.7 million ($87.2 million adjusted). The company's operating margin contracted to 8.5% (9.0% adjusted) from 10.9% in the prior year quarter.
Diluted EPS declined 19.7% to $1.02 ($1.08 adjusted) compared to $1.27 ($1.33 adjusted) in the previous fiscal year quarter. The company returned approximately $56 million to shareholders through dividends and share repurchases during Q3, bringing the fiscal year-to-date total to $181 million.
Looking ahead, MSC provided Q4 FY2025 guidance projecting average daily sales growth between -0.5% and 1.5% year-over-year, with adjusted operating margin expected between 8.5% and 9.0%. The company maintained its commitment to long-term objectives of growing 400 basis points above the IP Index and expanding operating margins to the mid-teens.
MSC Industrial Supply Co. (NYSE: MSM) ha comunicato i risultati del terzo trimestre fiscale 2025, evidenziando un calo delle prestazioni nei principali indicatori. Le vendite nette sono diminuite del 0,8% a 971,1 milioni di dollari, mentre l'utile operativo è sceso del 22,5% a 82,7 milioni di dollari (87,2 milioni di dollari rettificati). Il margine operativo si è ridotto all'8,5% (9,0% rettificato) rispetto al 10,9% dello stesso trimestre dell'anno precedente.
L'utile per azione diluito è calato del 19,7% a 1,02 dollari (1,08 dollari rettificati) rispetto a 1,27 dollari (1,33 dollari rettificati) del trimestre fiscale precedente. Durante il terzo trimestre, la società ha restituito circa 56 milioni di dollari agli azionisti attraverso dividendi e riacquisti di azioni, portando il totale da inizio anno fiscale a 181 milioni di dollari.
Guardando al futuro, MSC ha fornito le previsioni per il quarto trimestre del FY2025, prevedendo una crescita media delle vendite giornaliere tra il -0,5% e l'1,5% su base annua, con un margine operativo rettificato stimato tra l'8,5% e il 9,0%. L'azienda ha confermato il proprio impegno verso gli obiettivi a lungo termine di crescere di 400 punti base oltre l'indice IP e di ampliare i margini operativi fino a livelli mediamente elevati.
MSC Industrial Supply Co. (NYSE: MSM) informó sus resultados del tercer trimestre fiscal 2025, mostrando un descenso en el desempeño de métricas clave. Las ventas netas disminuyeron un 0.8% hasta $971.1 millones, mientras que el ingreso operativo cayó un 22.5% hasta $82.7 millones ($87.2 millones ajustados). El margen operativo de la compañía se redujo a 8.5% (9.0% ajustado) desde el 10.9% del mismo trimestre del año anterior.
Las ganancias diluidas por acción bajaron un 19.7% hasta $1.02 ($1.08 ajustado) en comparación con $1.27 ($1.33 ajustado) del trimestre fiscal anterior. La empresa devolvió aproximadamente $56 millones a los accionistas mediante dividendos y recompras de acciones durante el tercer trimestre, llevando el total acumulado en el año fiscal a $181 millones.
De cara al futuro, MSC proporcionó una guía para el cuarto trimestre del FY2025 proyectando un crecimiento promedio diario de ventas entre -0.5% y 1.5% interanual, con un margen operativo ajustado esperado entre 8.5% y 9.0%. La compañía mantuvo su compromiso con los objetivos a largo plazo de crecer 400 puntos básicos por encima del Índice IP y ampliar los márgenes operativos hasta niveles medios-altos.
MSC Industrial Supply Co. (NYSE: MSM)는 2025 회계연도 3분기 실적을 발표하며 주요 지표에서 실적 하락을 보였습니다. 순매출은 0.8% 감소한 9억7,110만 달러를 기록했고, 영업이익은 22.5% 감소한 8,270만 달러 (조정 후 8,720만 달러)였습니다. 회사의 영업이익률은 전년 동기 10.9%에서 8.5% (조정 후 9.0%)로 축소되었습니다.
희석 주당순이익(EPS)은 전년 동기 1.27달러(조정 후 1.33달러)에서 19.7% 감소한 1.02달러 (조정 후 1.08달러)를 기록했습니다. 회사는 3분기 동안 배당금 및 자사주 매입을 통해 약 5,600만 달러를 주주에게 환원했으며, 회계연도 누적 총액은 1억8,100만 달러에 달합니다.
앞으로 MSC는 2025 회계연도 4분기 가이던스를 제시하며, 연간 기준 일평균 매출 성장률을 -0.5%에서 1.5% 사이로 예상하고 조정 영업이익률은 8.5%에서 9.0% 사이일 것으로 전망했습니다. 회사는 IP 지수 대비 400 베이시스 포인트 이상 성장하고 영업이익률을 중반대 두 자릿수까지 확대하겠다는 장기 목표에 대한 의지를 유지했습니다.
MSC Industrial Supply Co. (NYSE: MSM) a publié ses résultats du troisième trimestre fiscal 2025, montrant une baisse des performances sur les indicateurs clés. Les ventes nettes ont diminué de 0,8% pour atteindre 971,1 millions de dollars, tandis que le résultat opérationnel a chuté de 22,5% à 82,7 millions de dollars (87,2 millions ajustés). La marge opérationnelle s'est contractée à 8,5% (9,0% ajusté) contre 10,9% au trimestre précédent.
Le BPA dilué a reculé de 19,7% à 1,02 dollar (1,08 dollar ajusté) contre 1,27 dollar (1,33 dollar ajusté) au trimestre fiscal précédent. La société a reversé environ 56 millions de dollars aux actionnaires sous forme de dividendes et de rachats d'actions au cours du troisième trimestre, portant le total cumulé depuis le début de l'exercice à 181 millions de dollars.
Pour l'avenir, MSC a fourni des prévisions pour le quatrième trimestre de l'exercice 2025, projetant une croissance moyenne des ventes quotidiennes comprise entre -0,5% et 1,5% en glissement annuel, avec une marge opérationnelle ajustée attendue entre 8,5% et 9,0%. L'entreprise a maintenu son engagement envers ses objectifs à long terme de croître de 400 points de base au-dessus de l'indice IP et d'élargir ses marges opérationnelles jusqu'à un niveau moyen à élevé.
MSC Industrial Supply Co. (NYSE: MSM) meldete die Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 und verzeichnete einen Rückgang bei wichtigen Kennzahlen. Der Nettoumsatz sank um 0,8% auf 971,1 Millionen US-Dollar, während das Betriebsergebnis um 22,5% auf 82,7 Millionen US-Dollar (bereinigt 87,2 Millionen US-Dollar) zurückging. Die operative Marge schrumpfte von 10,9% im Vorjahresquartal auf 8,5% (bereinigt 9,0%).
Das verwässerte Ergebnis je Aktie sank um 19,7% auf 1,02 US-Dollar (bereinigt 1,08 US-Dollar) gegenüber 1,27 US-Dollar (bereinigt 1,33 US-Dollar) im Vorjahresquartal. Das Unternehmen gab im dritten Quartal rund 56 Millionen US-Dollar an die Aktionäre zurück durch Dividenden und Aktienrückkäufe, womit sich die Summe im laufenden Geschäftsjahr auf 181 Millionen US-Dollar erhöhte.
Für das vierte Quartal des Geschäftsjahres 2025 gab MSC eine Prognose ab, die ein durchschnittliches tägliches Umsatzwachstum zwischen -0,5% und 1,5% im Jahresvergleich erwartet, mit einer bereinigten operativen Marge zwischen 8,5% und 9,0%. Das Unternehmen bekräftigte sein langfristiges Ziel, 400 Basispunkte über dem IP-Index zu wachsen und die operative Marge auf mittlere zweistellige Werte auszubauen.
- None.
- Net sales decreased 0.8% year-over-year to $971.1 million
- Operating income declined 22.5% to $82.7 million
- Operating margin contracted to 8.5% from 10.9% in prior year
- Diluted EPS fell 19.7% to $1.02 from $1.27 year-over-year
- Year-to-date net sales down 2.7% compared to previous fiscal year
Insights
MSC Industrial reports disappointing Q3 results with sales down 0.8% and EPS dropping 19.7% YoY, despite seeing early strategic progress.
MSC Industrial's fiscal Q3 2025 results reveal concerning financial trends that extend beyond just the headline numbers. With net sales of
Looking at the adjusted figures, which exclude certain one-time items, doesn't materially change the narrative. Adjusted operating margin fell to
The company's management has identified three strategic focus areas: reenergizing core customers, maintaining momentum in high-touch solutions, and optimizing cost structure. While CEO Erik Gershwind referenced "early signs of progress" in these initiatives, the financial results don't yet reflect meaningful improvement. The Q4 outlook projecting sales growth between
One positive is MSC's strong cash flow performance, which enabled
Management's long-term aspiration to grow 400 basis points above the IP Index with mid-teens operating margins contrasts sharply with current performance, indicating a significant gap between current execution and strategic goals.
FISCAL 2025 Q3 HIGHLIGHTS
- Net sales of
$971.1 million 0.8% YoY - Operating income of
$82.7 million $87.2 million - Operating margin of
8.5% , or9.0% on an adjusted basis1 - Diluted EPS of
$1.02 $1.27 - Adjusted diluted EPS of
$1.08 $1.33
Financial Highlights 2 | FY25 Q3 | FY24 Q3 | Change | FY25 YTD | FY24 YTD | Change | ||||||
Net Sales | $ 971.1 | $ 979.4 | (0.8) % | (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 2 | FY25 Q3 | FY24 Q3 | Change | FY25 YTD | FY24 YTD | Change | ||||||
Net Sales | $ 971.1 | $ 979.4 | (0.8) % | (2.7) % | ||||||||
Adjusted Income from Operations 1 | $ 87.2 | $ 111.5 | (21.8) % | $ 225.5 | $ 313.0 | (28.0) % | ||||||
Adjusted Operating Margin 1 | 9.0 % | 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
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)% - |
Adjusted Operating Margin1 | |
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 release. |
Conference Call Information
MSC 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: https://investor.mscdirect.com. The conference call may also be accessed at 1-877-443-5575 (
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 Information | |
Investors: | Media: |
Ryan Mills, CFA | Zivanai Mutize |
Head of Investor Relations | Head of Corporate Communications |
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 2.4 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 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 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
MSC INDUSTRIAL DIRECT CO., INC. | |||
Condensed Consolidated Balance Sheets | |||
(In thousands) | |||
May 31, | August 31, | ||
ASSETS | (Unaudited) | ||
Current Assets: | |||
Cash and cash equivalents | $ 71,692 | $ 29,588 | |
Accounts receivable, net of allowance for credit losses | 410,553 | 412,122 | |
Inventories | 649,363 | 643,904 | |
Prepaid expenses and other current assets | 105,155 | 102,475 | |
Total current assets | 1,236,763 | 1,188,089 | |
Property, plant and equipment, net | 343,996 | 360,255 | |
Goodwill | 723,457 | 723,894 | |
Identifiable intangibles, net | 89,443 | 101,147 | |
Operating lease assets | 54,312 | 58,649 | |
Other assets | 27,623 | 30,279 | |
Total assets | $ 2,475,594 | $ 2,462,313 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current Liabilities: | |||
Current portion of debt including obligations under finance leases | $ 236,060 | $ 229,911 | |
Current portion of operating lease liabilities | 22,691 | 21,941 | |
Accounts payable | 212,968 | 205,933 | |
Accrued expenses and other current liabilities | 172,546 | 147,642 | |
Total current liabilities | 644,265 | 605,427 | |
Long-term debt including obligations under finance leases | 284,973 | 278,853 | |
Noncurrent operating lease liabilities | 32,242 | 37,468 | |
Deferred income taxes and tax uncertainties | 138,549 | 139,283 | |
Total liabilities | 1,100,029 | 1,061,031 | |
Commitments and Contingencies | |||
Shareholders' Equity: | |||
Preferred Stock | — | — | |
Class A Common Stock | 57 | 57 | |
Additional paid-in capital | 1,083,175 | 1,070,269 | |
Retained earnings | 423,532 | 456,850 | |
Accumulated other comprehensive loss | (21,669) | (21,144) | |
Class A treasury stock, at cost | (118,006) | (114,235) | |
Total MSC Industrial shareholders' equity | 1,367,089 | 1,391,797 | |
Noncontrolling interest | 8,476 | 9,485 | |
Total shareholders' equity | 1,375,565 | 1,401,282 | |
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 Ended | Thirty-Nine Weeks Ended | ||||||
May 31, | June 1, | May 31, | June 1, | ||||
Net sales | $ 971,145 | $ 979,350 | $ 2,791,346 | $ 2,868,667 | |||
Cost of goods sold | 573,406 | 578,903 | 1,650,190 | 1,686,492 | |||
Gross profit | 397,739 | 400,447 | 1,141,156 | 1,182,175 | |||
Operating expenses | 312,324 | 288,991 | 917,465 | 870,859 | |||
Restructuring and other costs | 2,680 | 4,690 | 6,430 | 11,787 | |||
Income from operations | 82,735 | 106,766 | 217,261 | 299,529 | |||
Other income (expense): | |||||||
Interest expense | (6,031) | (6,884) | (18,332) | (19,155) | |||
Interest income | 368 | 134 | 942 | 302 | |||
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 | 75,114 | 95,336 | 187,429 | 266,609 | |||
Provision for income taxes | 18,253 | 24,024 | 45,727 | 64,604 | |||
Net income | 56,861 | 71,312 | 141,702 | 202,005 | |||
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 | 55,694 | 56,214 | 55,795 | 56,323 | |||
Diluted | 55,765 | 56,351 | 55,895 | 56,514 | |||
MSC INDUSTRIAL DIRECT CO., INC. | |||||||
Condensed Consolidated Statements of Comprehensive Income | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||
May 31, | June 1, | May 31, | June 1, | ||||
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 | 63,069 | 71,095 | 141,248 | 202,249 | |||
Comprehensive income attributable to noncontrolling interest: | |||||||
Net (income) loss | (16) | 393 | 1,080 | 897 | |||
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 Ended | |||
May 31, | June 1, | ||
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 | 67,501 | 60,288 | |
Amortization of cloud computing arrangements | 1,439 | 1,437 | |
Non-cash operating lease cost | 17,563 | 16,679 | |
Stock-based compensation | 10,397 | 13,347 | |
Loss on disposal of property, plant and equipment | 575 | 363 | |
Loss on sale of property | 1,167 | — | |
Non-cash changes in fair value of estimated contingent consideration | 293 | 661 | |
Provision for credit losses | 5,699 | 5,180 | |
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 | 62 | 3,272 | |
Accounts payable and accrued liabilities | 40,821 | (45,917) | |
Total adjustments | 111,759 | 101,428 | |
Net cash provided by operating activities | 253,461 | 303,433 | |
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 | 3,193 | 3,465 | |
Proceeds from exercise of Class A Common Stock options | 120 | 8,833 | |
Borrowings under credit facilities | 239,250 | 359,000 | |
Payments under credit facilities | (226,750) | (309,000) | |
Contingent consideration paid | (3,500) | — | |
Borrowings under financing obligations | 699 | 3,850 | |
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 | 29,588 | 50,052 | |
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
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 | Items Affecting Comparability | Non-GAAP | |||||||
Total MSC | Restructuring | Loss on Sale of | Share | Adjusted Total | |||||
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 | — | 1,167 | 644 | 310,513 | ||||
Operating Expenses as % of Sales | 32.2 % | — % | (0.1) % | (0.1) % | 32.0 % | ||||
Restructuring and Other Costs | 2,680 | 2,680 | — | — | — | ||||
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 | Items Affecting Comparability | Non-GAAP | |||||||
Total MSC | Restructuring | Loss on Sale of | Share Reclassification | Adjusted Total | |||||
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 | — | 1,167 | 644 | 915,654 | ||||
Operating Expenses as % of Sales | 32.9 % | — % | 0.0 % | 0.0 % | 32.8 % | ||||
Restructuring and Other Costs | 6,430 | 6,430 | — | — | — | ||||
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 | Items Affecting | Non-GAAP | |||
Total MSC | Restructuring | Adjusted Total | |||
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 | 4,690 | 4,690 | — | ||
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 | Items Affecting Comparability | Non-GAAP | |||||||
Total MSC | Restructuring | Acquisition- | Share | Adjusted Total | |||||
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 | — | 465 | 1,187 | 869,207 | ||||
Operating Expenses as % of Sales | 30.4 % | — % | 0.0 % | 0.0 % | 30.3 % | ||||
Restructuring and Other Costs | 11,787 | 11,787 | — | — | — | ||||
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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SOURCE MSC Industrial Supply Co.
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