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MSC Reports Fiscal 2018 Fourth Quarter and Full Year Results

MELVILLE, N.Y. and DAVIDSON, N.C., Oct. 30, 2018 /PRNewswire/ --

FISCAL Q4 2018 HIGHLIGHTS

  • Net sales of $838.0 million, an increase of 11.2% YoY (9.5% increase on an ADS basis)
  • Operating income of $107.8 million, an increase of 7.8% YoY
  • Operating margin of 12.9% (13.8% excluding acquisitions*)
  • Diluted EPS of $1.29, versus EPS of $1.07 in the prior year quarter

FISCAL 2018 HIGHLIGHTS

  • Net sales of $3.2 billion, an increase of 10.9% YoY (10.5% increase on an ADS basis)
  • Operating income of $420.6 million, an increase of 11.0% YoY
  • Operating margin of 13.1% (13.7% excluding acquisitions*)
  • Diluted EPS of $5.80, versus $4.05 in the prior year
  • Completed acquisition of AIS, a value-added production fastener distributor, on April 30, 2018

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 2018 fourth quarter and full year ended September 1, 2018. Both periods included one additional day of operations as compared to the prior periods.














Financial Highlights1


FY18 Q4


FY17 Q4


Change


FY18


FY17


Change

Net Sales


$838.0


$753.8


11.2%


$3,203.9


$2,887.7


10.9%

Operating Income


107.8


100.0


7.8%


420.6


379.0


11.0%

% of Net Sales


12.9%


13.3%




13.1%


13.1%



Net Income


73.0


60.7


20.2%


329.2


231.4


42.3%

Diluted EPS


$1.29

2

$1.07

3

20.6%


$5.80

2

$4.05

3

43.2%


1 In millions unless noted. 2 Based on 56.6 million and 56.7 million diluted shares outstanding for FY18 Q4 and FY18, respectively. 3 Based on 56.8 and 57.0 million diluted shares outstanding for FY17 Q4 and FY17, respectively.

 

Erik Gershwind, president and chief executive officer, said, "The manufacturing environment maintained its positive momentum in the fiscal fourth quarter, while pricing remained relatively stable. Our sales performance continued to be impacted by our sales force effectiveness initiatives, but we are beginning to see positive results from our actions and expect stronger growth levels over the next couple of quarters. Growth in the quarter was slightly above our expectations, with Core customers seeing notable improvement, well ahead of company average, and our two acquisitions, DECO and AIS, continuing to perform well. Overall, there is a building excitement and confidence in our plan."

Rustom Jilla, executive vice president and chief financial officer, added, "Excluding the acquisitions, our base business operating margins for the quarter and year were up 30 and 50 basis points, respectively, as we achieved both gross margin stability and operating expense leverage. Our fourth quarter reported operating margin of 12.9% was down 40 basis points versus last year, entirely due to the acquisitions. Cash generation remained strong with full year Free Cash Flow* up $94 million, or up 47% over last year. This allowed us to increase ordinary dividends by 23%, acquire AIS for $88 million, buy back 2% of our outstanding shares, and reduce our leverage ratio slightly to 1.0 times."

Gershwind concluded, "In recent years, we have repositioned MSC from a spot buy supplier to a mission critical partner on manufacturing plant floors across North America. By focusing on products and services that are technical and high touch, we have cemented our leadership in metalworking and gained solid traction in the Class C VMI space. We also established a new platform in OEM Fasteners. Most recently, we redesigned our sales force to deliver upon the new, more complex and high-touch role that we are playing in enabling our customers to achieve higher levels of growth, productivity, and profitability. As we begin fiscal 2019, we are well positioned to capitalize on the opportunities ahead of us."

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

Outlook

The Company expects total net sales for the first quarter of fiscal 2019 to be between $821 million and $837 million. At the midpoint, average daily sales are expected to increase roughly 7.8% compared to last year's first quarter. The Company expects diluted earnings per share for the first quarter of fiscal 2019 to be between $1.28 and $1.34.

Excluding AIS, the Company expects net sales for the first quarter of fiscal 2019 to be between $803 million and $819 million, with average daily sales at the midpoint expected to increase roughly 5.5% compared to last year's first quarter. Excluding AIS, the Company expects diluted earnings per share for the first quarter of fiscal 2019 to be between $1.29 and $1.35.

Conference Call Information

MSC will host a conference call today at 8:30 a.m. EST to review the Company's fiscal 2018 fourth quarter and full year 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 until November 6, 2018.

The Company's reporting date for fiscal first quarter 2019 is scheduled for January 9, 2019.

About MSC Industrial Supply Co. MSC Industrial Supply Co. (NYSE:MSM) 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 more than 1 million products, inventory management and other supply chain solutions, and deep expertise from over 75 years of working with customers across industries.

Our experienced team of more than 6,500 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, please visit mscdirect.com.

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 historical fact, that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including statements about expected future results, expected benefits from our investment and strategic plans, including from our recent acquisitions, and expected future margins, are 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. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The inclusion of any statement in this release does not constitute an admission by MSC or any other person that the events or circumstances described in such statement are material. Factors that could cause actual results to differ materially from those in forward-looking statements include: general economic conditions in the markets in which we operate, changing customer and product mixes, competition, including the adoption by competitors of aggressive pricing strategies and sales methods, industry consolidation, volatility in commodity and energy prices, the outcome of government or regulatory proceedings or future litigation, credit risk of our customers, risk of cancellation or rescheduling of orders, work stoppages or other business interruptions (including those due to extreme weather conditions) at transportation centers, shipping ports, our headquarters or our customer fulfillment centers, dependence on our information systems and the risk of business disruptions arising from changes to our information systems, disruptions due to computer system or network failures, computer viruses, physical or electronics break-ins and cyber-attacks, retention of key personnel, the loss of key suppliers or supply chain disruptions, risks associated with changes to trade policies, failure to comply with applicable environmental, health and safety laws and regulations, goodwill and intangible assets recorded as a result of our acquisitions could be impaired, risks associated with the integration of acquired businesses or other strategic transactions, and financial restrictions on outstanding borrowings. 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 the reports on Forms 10-K and 10-Q that we file with the U.S. Securities and Exchange Commission. We assume no obligation to update any of these forward-looking statements.

 

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands)








September 1,


September 2,


2018


2017

ASSETS






Current Assets:






Cash and cash equivalents

$

46,217


$

16,083

Accounts receivable, net of allowance for doubtful accounts


523,892



471,795

Inventories


518,496



464,959

Prepaid expenses and other current assets


58,902



52,742

Total current assets


1,147,507



1,005,579

Property, plant and equipment, net


311,685



316,305

Goodwill


674,998



633,728

Identifiable intangibles, net


122,724



110,429

Other assets


31,813



32,871

Total assets

$

2,288,727


$

2,098,912







LIABILITIES AND SHAREHOLDERS' EQUITY






Current Liabilities:






Short-term debt

$

224,097


$

331,986

Accounts payable


145,133



121,266

Accrued liabilities


121,293



104,473

Total current liabilities


490,523



557,725

Long-term debt


311,236



200,991

Deferred income taxes and tax uncertainties


99,714



115,056

Total liabilities


901,473



873,772

Commitments and Contingencies






Shareholders' Equity:






Preferred Stock




Class A common stock


55



54

Class B common stock


10



12

Additional paid-in capital


657,749



626,995

Retained earnings


1,325,822



1,168,812

Accumulated other comprehensive loss


(19,634)



(17,263)

Class A treasury stock, at cost


(576,748)



(553,470)

Total shareholders' equity


1,387,254



1,225,140

Total liabilities and shareholders' equity

$

2,288,727


$

2,098,912

 

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Consolidated Statements of Income

(In thousands, except per share data)














(Unaudited)








Quarters Ended


Fiscal Years Ended


September 1,


September 2,


September 1,


September 2,


2018


2017


2018


2017

Net sales

$

837,985


$

753,770


$

3,203,878


$

2,887,744

Cost of goods sold


478,317



420,320



1,810,917



1,601,497

Gross profit


359,668



333,450



1,392,961



1,286,247

Operating expenses


251,878



233,471



972,408



907,247

Income from operations


107,790



99,979



420,553



379,000

Other (expense) income:












Interest expense


(4,144)



(3,125)



(14,463)



(12,370)

Interest income


163



162



647



658

Other income (expense), net


(76)



1,044



(548)



704

Total other expense


(4,057)



(1,919)



(14,364)



(11,008)

Income before provision for income taxes


103,733



98,060



406,189



367,992

Provision for income taxes


30,716



37,312



76,966



136,561

Net income

$

73,017


$

60,748


$

329,223


$

231,431

Per Share Information:












Net income per common share:












Basic

$

1.30


$

1.07


$

5.84


$

4.08

Diluted

$

1.29


$

1.07


$

5.80


$

4.05

Weighted average shares used in computing

   net income per common share:












Basic


56,275



56,585



56,355



56,591

Diluted


56,594



56,801



56,707



56,971

Cash dividends declared per common share

$

0.58


$

0.45


$

2.22


$

1.80

 

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(In thousands)














Fiscal Years Ended


September 1,


September 2,


2018


2017

Net income, as reported

$

329,223


$

231,431

   Other comprehensive income, net of tax:






Foreign currency translation adjustments


(2,371)



1,835

Comprehensive income (1)

$

326,852


$

233,266


(1) There were no material taxes associated with other comprehensive income during fiscal years 2018 and 2017.

 

MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands)








Fiscal Years Ended


September 1,


September 2,


2018


2017

Cash Flows from Operating Activities:






Net income

$

329,223


$

231,431

Adjustments to reconcile net income to net cash provided by operating activities:






Depreciation and amortization    


63,154



62,980

Stock-based compensation


14,934



13,925

Loss on disposal of property, plant, and equipment


479



678

Provision for doubtful accounts


6,938



7,048

Deferred income taxes and tax uncertainties


(19,577)



13,482

Write-off of deferred financing costs on previous credit facility




94

Changes in operating assets and liabilities, net of amounts associated with business acquired:






Accounts receivable


(49,827)



(72,230)

Inventories


(33,235)



(15,871)

Prepaid expenses and other current assets


(4,865)



(7,428)

Other assets


1,094



548

Accounts payable and accrued liabilities


31,340



12,184

Total adjustments


10,435



15,410

Net cash provided by operating activities


339,658



246,841

Cash Flows from Investing Activities:






    Expenditures for property, plant and equipment


(44,919)



(46,548)

    Cash used in business acquisitions, net of cash acquired


(87,000)



(42,345)

Net cash used in investing activities


(131,919)



(88,893)

Cash Flows from Financing Activities:






Repurchases of common stock


(82,369)



(49,182)

Payments of cash dividends


(125,430)



(102,216)

Proceeds from sale of Class A common stock in connection with associate stock purchase plan


4,461



4,243

Proceeds from exercise of Class A common stock options


24,243



26,887

Borrowings under Credit Facility


242,000



546,000

Proceeds from long-term debt


110,000



Payments of notes payable and revolving credit note under the Credit Facility


(350,000)



(618,500)

Other, net


(491)



(1,978)

Net cash used in financing activities


(177,586)



(194,746)

Effect of foreign exchange rate changes on cash and cash equivalents


(19)



(9)

Net increase (decrease) in cash and cash equivalents


30,134



(36,807)

Cash and cash equivalents – beginning of year


16,083



52,890

Cash and cash equivalents – end of year

$

46,217


$

16,083

Supplemental Disclosure of Cash Flow Information:






Cash paid for income taxes

$

100,504


$

121,691

Cash paid for interest

$

13,448


$

11,695

 

Non-GAAP Financial Measures

  • Free Cash Flow

Our measure of "FCF" meets the definition of a non-GAAP financial measure. FCF is used in addition to and in conjunction with results presented in accordance with GAAP and FCF should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and to not rely on any single financial measure. FCF, which we reconcile to "Net cash provided by operating activities," is cash flow from operations reduced by "Expenditures for property, plant and equipment". We believe that FCF, although similar to cash flow from operations, is a useful additional measure since capital expenditures are a necessary component of ongoing operations. Management also views FCF, as a measure of the Company's ability to reduce debt, add to cash balances, pay dividends, and repurchase stock. FCF has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. For example, FCF does not incorporate payments made on capital lease obligations or required debt service payments. In addition, different companies define FCF differently. Therefore, we believe it is important to view FCF as a complement to our entire consolidated statements of cash flows. A reconciliation of cash provided by operating activities to FCF for the thirteen week periods and fiscal years ended September 1, 2018 and September 2, 2017, respectively is shown below.

  • Results excluding DECO Tool Supply Co (DECO) and All Integrated Solutions (AIS), collectively "Acquisitions"

To supplement MSC's unaudited selected financial data presented consistent with Generally Accepted Accounting Principles ("GAAP"), the Company discloses certain non-GAAP financial measures, including Non-GAAP net sales, non-GAAP gross profit, non-GAAP income from operations, non-GAAP (benefit) provision for income taxes, non-GAAP net income and non-GAAP diluted earnings per share, that exclude the results of our acquisitions of DECO Tool Supply Co. ("DECO") on July 31, 2017 and All Integrated Solutions ("AIS") on April 30, 2018, collectively, "Acquisitions". Beginning with the thirteen-week period ending December 1, 2018, the results of DECO are included.

These non-GAAP measures are not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect MSC's results of operations as determined in accordance with GAAP, and that these measures should only be used to evaluate MSC's results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company's performance.

In calculating non-GAAP financial measures, we exclude the results of our Acquisitions to facilitate a review of the Company's operating performance on a period-to-period basis, for comparison with forecasts and strategic plans, and for benchmarking performance externally against competitors. We believe that investors benefit from seeing results "through the eyes" of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company's GAAP financials, provide useful information to investors by offering:

  • the ability to make more meaningful period-to-period comparisons of the Company's operating results;
  • the ability to better identify trends in the Company's underlying business and perform related trend analyses;
  • a better understanding of how management plans and measures the Company's underlying business; and
  • an easier way to compare the Company's operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures

 


















MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Information

Quarters and Years Ended September 1, 2018 and September 2, 2017

(dollars in thousands)


















GAAP Measure


Items Affecting Comparability


Non-GAAP Measure

Net cash provided by operating activities


Expenditures for property, plant and equipment


Free cash flow

Thirteen Weeks Ended


Thirteen Weeks Ended


Thirteen Weeks Ended

September 1, 2018


September 2, 2017


September 1, 2018


September 2, 2017


September 1, 2018


September 2, 2017

$

109,421


$

87,710


$

(14,125)


$

(8,625)


$

95,296


$

79,085



































GAAP Measure


Items Affecting Comparability


Non-GAAP Measure

Net cash provided by operating activities


Expenditures for property, plant and equipment


Free cash flow

Fiscal Year Ended


Fiscal Year Ended


Fiscal Year Ended

September 1, 2018


September 2, 2017


September 1, 2018


September 2, 2017


September 1, 2018


September 2, 2017

$

339,658


$

246,841


$

(44,919)


$

(46,548)


$

294,739


$

200,293

 































MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES


Reconciliation of GAAP and Non-GAAP Information


Thirteen Weeks and Year Ended September 1, 2018


(dollars in thousands, except per share data)
































GAAP Measure


Items Affecting Comparability


Non-GAAP Measure



GAAP Measure


Non-GAAP Measure


Net Sales


Acquisitions


Net Sales, excluding
Acquisitions



Average Daily Sales Growth


Average Daily Sales
Growth, excluding
Acquisitions


Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended



Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended

September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018



September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018

$

837,985


$

3,203,878


$

49,011


$

148,042


$

788,974


$

3,055,836



9.5

%


10.5

%


4.5

%


5.8

%































GAAP Measure


Items Affecting Comparability


Non-GAAP Measure



GAAP Measure


Non-GAAP Measure


Gross Profit


Acquisitions


Gross Profit, excluding
Acquisitions



Gross Margin


Gross Margin, excluding
Acquisitions


Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended



Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended

September 1,
2018


September 1, 2
018


September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018



September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018

$

359,668


$

1,392,961


$

9,834


$

31,502


$

349,834


$

1,361,459



42.9

%


43.5

%


44.3

%


44.6

%































GAAP Measure


Items Affecting Comparability


Non-GAAP Measure



GAAP Measure


Non-GAAP Measure


Operating Expenses


Acquisitions


Operating Expenses,
excluding Acquisitions



Operating Expenses as a
percentage of Net Sales


Operating Expenses as a 
percentage of Net Sales,
excluding Acquisitions


Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended



Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended

September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018



September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018

$

251,878


$

972,408


$

10,624


$

30,294


$

241,254


$

942,114



30.1

%


30.4

%


30.6

%


30.8

%































GAAP Measure


Items Affecting Comparability


Non-GAAP Measure



GAAP Measure


Non-GAAP Measure


Operating Income


Acquisitions


Operating Income,
excluding Acquisitions



Operating Margin


Operating Margin, excluding
Acquisitions


Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended



Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended

September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018



September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018

$

107,790


$

420,553


$

(789)


$

1,208


$

108,579


$

419,345



12.9

%


13.1

%


13.8

%


13.7

%































GAAP Measure


Items Affecting Comparability


Non-GAAP Measure














Provision

for income taxes


Acquisitions


Provision for income taxes,
excluding Acquisitions














Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks
Ended


Year

Ended














September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018














$

30,716


$

76,966


$

(606)


$

(372)


$

31,322


$

77,338












































GAAP Measure


Items Affecting Comparability


Non-GAAP Measure














Net Income


Acquisitions


Net Income, excluding
Acquisitions














Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended














September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018














$

73,017


$

329,223


$

(1,453)


$

(892)


$

74,470


$

330,115












































GAAP Measure


Items Affecting Comparability


Non-GAAP Measure














Diluted Earnings Per Share


Acquisitions


Diluted Earnings Per Share,
excluding Acquisitions














Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended


Thirteen

Weeks Ended


Year

Ended














September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018


September 1,
2018














$

1.29


$

5.80


$

(0.03)


$

(0.02)


$

1.32


$

5.82


























































MSC INDUSTRIAL SUPPLY CO. AND SUBSIDIARIES


Reconciliation of GAAP and Non-GAAP Information


Guidance for Thirteen Weeks Ended December 1, 2018*


(dollars in millions, except per share data)
















GAAP Measure


Items Affecting Comparability


Non-GAAP Measure


GAAP Measure



Non-GAAP Measure


Net Sales


Acquisitions


Net Sales,

excluding Acquisitions


Average Daily Sales Growth



Average Daily Sales
Growth, excluding
Acquisitions


Thirteen Weeks Ended


Thirteen Weeks Ended


Thirteen Weeks Ended


Thirteen Weeks Ended



Thirteen Weeks Ended


December 1, 2018


December 1, 2018


December 1, 2018


December 1, 2018


December 1, 2018

$

828.6


$

17.8


$

810.8


7.8

%


5.5

%















GAAP Measure


Items Affecting Comparability


Non-GAAP Measure


GAAP Measure



Non-GAAP Measure


Gross Profit


Acquisitions


Gross Profit,

excluding Acquisitions


Gross Margin



Gross Margin,

excluding Acquisitions


Thirteen Weeks Ended


Thirteen Weeks Ended


Thirteen Weeks Ended


Thirteen Weeks Ended



Thirteen Weeks Ended


December 1, 2018


December 1, 2018


December 1, 2018


December 1, 2018


December 1, 2018

$

356.2


$

5.4


$

350.8


43.0

%


43.3

%















GAAP Measure


Items Affecting Comparability


Non-GAAP Measure


GAAP Measure



Non-GAAP Measure


Operating Expenses


Acquisitions


Operating Expenses,

excluding Acquisitions


Operating Expenses as a
percentage of Net Sales



Operating Expenses as a
percentage of Net Sales,
excluding Acquisitions


Thirteen Weeks Ended


Thirteen Weeks Ended


Thirteen Weeks Ended


Thirteen Weeks Ended



Thirteen Weeks Ended


December 1, 2018


December 1, 2018


December 1, 2018


December 1, 2018


December 1, 2018

$

254.3


$

5.2


$

249.1


30.7

%


30.7

%















GAAP Measure


Items Affecting Comparability


Non-GAAP Measure


GAAP Measure



Non-GAAP Measure


Operating Income


Acquisitions


Operating Income,

excluding Acquisitions


Operating Margin



Operating Margin,

excluding Acquisitions


Thirteen Weeks Ended


Thirteen Weeks Ended


Thirteen Weeks Ended


Thirteen Weeks Ended



Thirteen Weeks Ended


December 1, 2018


December 1, 2018


December 1, 2018


December 1, 2018


December 1, 2018

$

101.9


$

0.2


$

101.7


12.3

%


12.5

%















GAAP Measure


Items Affecting Comparability


Non-GAAP Measure







Net Income


Acquisitions


Net Income,

excluding Acquisitions







Thirteen Weeks Ended


Thirteen Weeks Ended


Thirteen Weeks Ended







December 1, 2018


December 1, 2018


December 1, 2018








73.3


$

(0.6)


$

73.9





















GAAP Measure


Items Affecting Comparability


Non-GAAP Measure







Diluted Earnings Per Share


Acquisitions


Diluted Earnings Per
Share, excluding
Acquisitions







Thirteen Weeks Ended


Thirteen Weeks Ended


Thirteen Weeks Ended







December 1, 2018


December 1, 2018


December 1, 2018







$

1.31


$

(0.01)


$

1.32





















*  The data in the above tables represent the midpoint of management's guidance; see note regarding forward-looking statements

 

SOURCE MSC Industrial Supply Co.

For further information: Investors: John G. Chironna, Vice President, Investor Relations and Treasurer, (704) 987-5231; Media: Paul Mason, Director, Corporate Communications, (704) 987-5313