MSC INDUSTRIAL DIRECT CO INC (MSM) SEC Filing 10-Q Quarterly report for the period ending Saturday, December 3, 2016

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Exhibit 99.1

 



 

Picture 1 

NEWS

 

MSC REPORTS FISCAL 2017 FIRST QUARTER RESULTS



FISCAL Q1 2017 HIGHLIGHTS



·

Net sales of $686.3 million, a decline of 2.9% year-over-year

·

Gross margin of 45.0% reflecting continued stabilization in a challenging pricing environment

·

Operating margin of 13.2%, an increase year-over-year, despite a decline in net sales

·

Diluted EPS of $0.95, which was 3 cents above the midpoint of guidance



MELVILLE, NY and DAVIDSON, NC, January 11, 2017 - 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 2017 first quarter ended December 3, 2016.

 





 

 

 

 

 

 

Financial Highlights1

 

FY17 Q1

 

FY16 Q1

 

Change

Net Sales

 

$686.3 

 

$706.8 

 

-2.9%

GAAP Operating Income

 

90.6 

 

90.4 

 

0.2% 

% of Net Sales

 

13.2% 

 

12.8% 

 

 

GAAP Net Income

 

54.1 

 

55.0 

 

-1.7%

GAAP Diluted EPS

 

$0.95 

i2

$0.89 

i3

6.7% 



1In millions unless noted. 2Based on 56.6 million diluted shares outstanding for FY17 Q1.  3 Based on 61.4 million diluted shares outstanding for FY16 Q1.



Erik Gershwind, president and chief executive officer, said, "While the demand environment remained difficult in our first quarter and pricing remained soft, we saw a better than expected November. As we moved into December, the start of our fiscal second quarter, we saw growth in sales, as well as improvement across all of our customer types and a higher mix of machinery, machine tool accessories, tool holders, and tooling package orders. These capital-related sales have historically increased when customers are more optimistic about investing in their businesses."



Rustom Jilla, executive vice president and chief financial officer, added, "Our first quarter operating margin of 13.2 percent improved over the prior year period despite lower sales, with stable gross margins and continued expense discipline, which offers a glimpse into our leverage potential. Diluted earnings per share were 3 cents above the mid-point of our guidance, with approximately 2 cents from higher than expected sales and the remainder as a result of tight expense management. Our EPS also increased 6 cents year-over-year due to lower operating expenses and last August’s share buyback. Finally, our cash flow conversion remained strong, with 139 percent of our net income translating into cash flow from operations."



Gershwind concluded, "We have operated in the midst of a prolonged industrial recession, one that was particularly acute in our primary end markets of metalworking manufacturing. We are, however, seeing signs of greater optimism. At present, it appears that there is a leveling in manufacturing occurring and, in December, we saw greater spending on categories that are indicative of customer optimism. We are certainly more positive than even a few short months ago. Even so, we would need to see sustained increases in order activity before we declare that the environment has turned."



Outlook



Based on current market conditions, the Company expects net sales for the second quarter of fiscal 2017 to be between $688 million and $701 million. At the midpoint, average daily sales are expected to increase roughly 1.5%, as compared to last year’s second quarter. The Company expects diluted earnings per share for the fiscal second quarter 2017 to be between $0.86 and $0.90.




















The following information was filed by MSC INDUSTRIAL DIRECT CO INC on Wednesday, January 11, 2017 as an 8K 2.02 statement, which is a 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Exhibit 31.1 - RULE 13A-14A/15D-14A CERTIFICATION

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Exhibit 32.1 - SECTION 1350 CERTIFICATION

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Exhibit 32.2 - SECTION 1350 CERTIFICATION

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  • Form Type: Quarterly
  • Number of times amended: 0
  • Accession Number: 0001003078-17-000005
  • Submitted to the SEC: Wednesday, January 11, 2017
  • Accepted by the SEC: Wednesday, January 11, 2017
  • Period Ending: December 2016
Companies
 

MSM Morningstar

MSC INDUSTRIAL DIRECT CO INC

$79.60 +1.22 (+1.56%)

Day's Range:
$78.73 to $79.73

52-Week Range:
$65.42 to $105.70

Volume:
400,001

Volume (Avg):
544,248

Earnings per Share:
$4.01

PEG / Short / PE Ratios:
1.92 / 4.57 / 19.85

Market Cap:
$4.53B

Book Value:
21.47

EBITDA:
$443.59M

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