FISCAL 2021 Q3 HIGHLIGHTS
MSC INDUSTRIAL DIRECT CO., INC., “MSC Industrial” 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 2021 third quarter ended May 29, 2021.
Financial Highlights2 |
FY21 Q3 |
FY20 Q3 |
Change |
FY21 YTD |
FY20 YTD |
Change |
||||||
Net Sales |
$866.3 |
$835.0 |
3.8% |
$2,412.2 |
$2,444.7 |
-1.3% |
||||||
Income from Operations |
$128.6 |
$109.9 |
17.1% |
$210.6 |
$277.8 |
-24.2% |
||||||
Operating Margin |
14.8% |
13.2% |
8.7% |
11.4% |
||||||||
Net Income attributable to MSC |
$94.4 |
$77.7 |
21.5% |
$151.0 |
$198.6 |
-24.0% |
||||||
Diluted EPS |
$1.68 |
3 |
1.40 |
4 |
20.0% |
$2.69 |
3 |
$3.57 |
4 |
-24.6% |
||
Adjusted Financial Highlights1,2 |
FY21 Q3 |
FY20 Q3 |
Change |
FY21 YTD |
FY20 YTD |
Change |
||||||
Unadjusted Net Sales |
$866.3 |
$835.0 |
3.8% |
$2,412.2 |
$2,444.7 |
-1.3% |
||||||
Adjusted Income from Operations |
$109.5 |
$111.2 |
-1.5% |
$274.9 |
$283.7 |
-3.1% |
||||||
Adjusted Operating Margin |
12.6% |
13.3% |
11.4% |
11.6% |
||||||||
Adjusted Net Income attributable to |
$80.2 |
$78.7 |
1.8% |
$199.5 |
$203.0 |
-1.7% |
||||||
Adjusted Diluted EPS |
$1.42 |
3 |
$1.42 |
4 |
0.0% |
$3.55 |
3 |
$3.65 |
4 |
-2.7% |
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 schedules accompanying this press release. |
2 In millions except percentages and per share data or as otherwise noted. |
3 Based on 56.4 million and 56.1 million diluted shares outstanding for FY21 Q3 and FY21 YTD respectively. |
4 Based on 55.6 million diluted shares outstanding for both FY20 Q3 and FY20 YTD. |
Erik Gershwind, President and Chief Executive Officer, said, “The economic environment improved significantly and most of our manufacturing end markets turned positive during our fiscal third quarter. Total company sales returned to growth and, while muted by PPE-related comparisons, our non-safety and non-janitorial product lines grew 21 percent. Execution on our Mission Critical initiatives continued at a high level and we have lifted our expectations both in terms of gross and net savings for fiscal 2021.”
Kristen Actis-Grande, Executive Vice President and Chief Financial Officer, added, “Average daily sales growth turned positive during our fiscal third quarter and was 2.2 percent. Solid execution of our March price increase contributed to a lift in our gross margin sequentially to 42.3 percent. On our Mission Critical programs, we delivered another $12 million of gross savings, bringing our cumulative savings for fiscal 2021 to $29 million, against our original goal of $25 million. We also reinvested approximately $7 million into growth programs, bringing our cumulative investment for fiscal 2021 to roughly $15 million. In total, we now expect to drive gross savings of $40 million and to invest roughly $25 million in fiscal 2021, such that we will achieve net savings above our original goal of $10 million for the year. Finally, we continued to use our strong balance sheet to support our customers with higher inventory levels and our shareholders through our share buyback program.”
Gershwind concluded, “We are gaining steam internally and our end markets are strengthening. Strong execution on our Mission Critical initiatives will further support our share capture programs and deliver additional savings over the next two years and beyond. We remain on-track to achieve our goals of growing sales 400 basis points above the Industrial Production Index and returning ROIC to the high teens by the end of fiscal 2023.”
Conference Call Information
MSC Industrial will host a conference call today at 8:30 a.m. EDT to review the Company’s fiscal 2021 third quarter results. The call, accompanying slides, and other operational statistics may be accessed at: http://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 under the events section at http://investor.mscdirect.com for one year.
The Company’s reporting date for fiscal 2021 fourth quarter and full year results is scheduled for October 20, 2021.
About MSC Industrial Direct Co., Inc.
MSC Industrial Direct Co., Inc. is a leading North American distributor of metalworking and maintenance, repair and operations (MRO) products and services. We help our customers drive greater productivity, profitability and growth with approximately 1.9 million products, inventory management and other supply chain solutions, and deep expertise from 80 years of working with customers across industries. Our experienced team of more than 6,200 associates is dedicated to working side by side 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.