Exhibit 99.1

 



 

Picture 1 

NEWS

MSC REPORTS FISCAL 2019 FOURTH QUARTER AND FULL YEAR RESULTS



FISCAL Q4 2019 HIGHLIGHTS



·

Net sales of $842.7 million, an increase of 0.6% YoY (2.1% increase on an ADS basis)

·

Operating income of $90.5 million, or $97.2 million excluding severance and separation costs of $6.7 million*

·

Operating margin of 10.7%, or 11.5% excluding severance and separation costs*

·

Diluted EPS of $1.20 vs. $1.29 in the prior year quarter

·

Adjusted diluted EPS of $1.30 excluding severance and separation costs exceeded guidance midpoint by $0.06*



FISCAL 2019 HIGHLIGHTS



·

Net sales of $3.4 billion, an increase of 5.0% YoY (5.8% increase on an ADS basis)

·

Operating income of $400.0 million, or $406.7 million excluding severance and separation costs of $6.7 million*

·

Operating margin of 11.9%, or 12.1% excluding severance and separation costs*

·

Diluted EPS of $5.20, or $5.29 excluding severance and separation costs*, vs. $5.80 in the prior year



MELVILLE, NY and DAVIDSON, NC, October 24, 2019 - MSC INDUSTRIAL SUPPLY CO. (NYSE: MSM),  "MSC" or the "Company," a premier distributor of Metalworking and Maintenance, Repair and Operations ("MRO") products and services to industrial customers throughout North America,  today reported financial results for its fiscal 2019 fourth quarter and full year ended August 31, 2019. The quarter and full year had one and two less selling days, respectively, of operations compared to prior periods.





 

 

 

 

 

 

 

 

 

 

 

 

Financial Highlights1

 

FY19 Q4

 

FY18 Q4

 

Change

 

FY19

 

FY18

 

Change

Net Sales

 

$842.7 

 

$838.0 

 

0.6% 

 

$3,363.8 

 

$3,203.9 

 

5.0% 

Operating Income

 

90.5 

 

107.8 

 

-16.0%

 

400.0 

 

420.6 

 

-4.9%

% of Net Sales

 

10.7% 

 

12.9% 

 

 

 

11.9% 

 

13.1% 

 

 

Net Income attributable to MSC Industrial

 

66.6 

 

73.0 

 

-8.8%

 

288.9 

 

329.2 

 

-12.3%

Diluted EPS

 

$1.20 

.2

$1.29 

.3

-7.0%

 

5.20 

.2

5.80 

.3, 4

-10.3%

1In millions unless noted. 2Based on 55.3 million and 55.5 million diluted shares outstanding for FY19 Q4 and FY19, respectively. 3  Based on 56.6 and 56.7 million diluted shares outstanding for FY18 Q4 and FY18, respectively. 4  FY18 includes a tax benefit of $0.71 per diluted share, from the revaluation of the company’s tax related balance sheet items.



Erik Gershwind, president and chief executive officer, said, "Our fiscal fourth quarter reflected solid execution in a weakening demand and pricing environment. Against this backdrop, we made encouraging progress against the initiatives announced last quarter, eliminating the bottlenecks in new business conversion, deepening our supplier partnerships to drive future profitability and market share gains, and beginning to reshape and resize the organization."



Rustom Jilla, executive vice president and chief financial officer, added, "In comparison to our guidance range, fiscal fourth quarter sales came in roughly at the mid-point, gross margin at the high end, and operating expenses excluding severance and separation costs at the low end. As a result, our operating margin and EPS on an adjusted basis were above our guidance ranges. During the quarter, we took actions to reduce operating expenses and will see the benefits in fiscal 2020. For the full fiscal year, we delivered $277 million in free cash flow*, increased our dividends per share by 19%, bought back over 1 million shares, and reduced our leverage ratio slightly to 0.9 times."



Gershwind concluded, "Times of industrial weakness provide us the opportunity to strengthen our supplier partnerships, deepen our relationships with our customers, and capture market share. Also, these are periods where we historically deliver strong free cash flow. I expect that we will do the same if conditions remain weak or deteriorate further. Furthermore, I am confident that our focus on streamlining our cost structure and transforming our operating model will deliver a leaner, more agile and more effective organization."





*  An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in schedules following this press release


The following information was filed by Msc Industrial Direct Co Inc (MSM) on Thursday, October 24, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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