Msc Industrial Direct Company, Inc. · NYSE:MSM
Msc Industrial Direct — Q3 2022 Earnings Presentation
19 slides from Msc Industrial Direct's earnings presentation, Jun 29, 2022
Slide 1: Fiscal Third Quarter 2022 Earnings Presentation
Fiscal Third Quarter 2022 Earnings Presentation JUNE 29, 2022
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Statements in this presentation 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
Slide 3: Fiscal Third Quarter 2022 Overview
Fiscal Third Quarter 2022 Overview 10.7% sales growth, roughly 500 bps above the Industrial Production Index Gross margin of 42.9%, up sequentially from 42.5% and YoY from 42.3%, driven by strong price realization Reduced operating expenses and adjusted operating expenses as a percentage of sales by
Slide 4: Fiscal Third Quarter 2022 Reported Results
Fiscal Third Quarter 2022 Reported Results Net Sales Gross Profit Operating Profit Earnings (millions) (millions and % of sales) (millions and % of sales) (per diluted share) $1.78 $1.68 $958.6 $866.3 $411.1 $366.5 42.5% $128.6 $136.8 42.9% 14.8% 38.1% 14.3% 42.3% Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3
Slide 5: Fiscal Third Quarter 2022 Adjusted Results
Fiscal Third Quarter 2022 Adjusted Results* Net Sales Gross Profit Adj. Operating Profit Adj. Earnings (millions) (millions and % of sales) (millions and % of sales) (per diluted share) $1.82 $140.3 $958.6 $1.42 $866.3 $109.5 $411.1 $366.5 42.5% 14.6% 42.0% 42.9% 12.6% 42.3% Q3 2021 Q3 2022 Q3 2021
Slide 6: MSC Total Organic Growth vs Industrial Production Index
Industrial Production Index (IP) MSC Total Organic Growth 3‐Month Average 20.0% 15.0% 10.0% Change (Year‐Over‐Year) 5.0% 0.0% ‐5.0% ‐10.0% ‐15.0% ‐20.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 MSC Total Growth (3 Mo Avg) IP Growth (3 Mo Avg) 6
Slide 7: Fiscal Third Quarter 2022 Balance Sheet and Liquidity Position
Fiscal Third Quarter 2022 Balance Sheet and Liquidity Position Free Cash Flow* (millions) Net Debt $64.1 (millions) $731.6 $761.1 $2.8 Q3 2021 Q3 2022 $101.8 $90.4 Q3 2021 Q3 2022 Q3 YTD 2021 Q3 YTD 2022 • Free cash flow increase for the quarter reflects reduced working capital requirements and spec
Slide 8: Mission Critical: Strong Progress on Cost Savings
Mission Critical: Strong Progress on Cost Savings Total Gross Savings Target: >$100M by end of FY23 versus FY19 $100 KEY AREAS Q3 FY2022: $4M Targeted $80 FY2022 Q2 FY2022: $6M Savings of $25M Q1 FY2022: $10M Sales and service Supply chain General & $60 Administrative • FY22 targets of $25M savings
Slide 9: Fiscal 2022 Framework – Adjusted
Fiscal 2022 Framework – Adjusted ADS Growth (YoY) Adjusted Operating Margin Range1 Low-double digits 12.5% - 13.1% High-single digits 12.0% - 12.6% Mid-single digits 11.7% - 12.3% 1Excludes approximately $10-15 million of expected restructuring and other costs. 9
Slide 10: Summary
Summary Sustaining high growth in a strong but dynamic environment Growth initiatives delivering customer productivity improvements Mission Critical initiatives on track with ROIC improvement ahead of schedule Tracking to higher end of fiscal 2022 adjusted operating margin framework 10
Slide 11: Appendix
Appendix MSC
Slide 12: Overview of Mission Critical
Overview of Mission Critical OBJECTIVE: OBJECTIVE: Reaccelerate market Grow profits faster share capture than sales KEY PRIORITIES KEY AREAS Solidify Leverage Expand Grow Diversify Sales and Supply General and Metalworking Portfolio Solutions E-commerce Customers and Services Chain Administrative St
Slide 13: Reconciliations
Reconciliations Non-GAAP Financial Measures To supplement MSC’s unaudited selected financial data presented consistent with accounting principles generally accepted in the United States (“GAAP”), the Company discloses certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP ope
Slide 14: Reconciliations
Reconciliations MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirteen and Thirty-Nine Weeks Ended May 28, 2022 and May 29, 2021 (dollars in thousands) GAAP Measure Items Affecting Comparability Non-GAAP Measure Net cash provided by operating activities Ex
Slide 15: Reconciliations
Reconciliations MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirteen Weeks Ended May 28, 2022 (In thousands, except percentages and per share data) GAAP Financial Measure Items Affecting Comparability Non-GAAP Financial Measure Restructuring and Other To
Slide 16: Reconciliations
Reconciliations MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirty-Nine Weeks Ended May 28, 2022 (In thousands, except percentages and per share data) Non-GAAP Financial GAAP Financial Measure Items Affecting Comparability Measure Adjusted Total MSC Tota
Slide 17: Reconciliations
Reconciliations MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirteen Weeks Ended May 29, 2021 (In thousands, except percentages and per share data) Non-GAAP Financial GAAP Financial Measure Items Affecting Comparability Measure Impairment Loss (Loss Rest
Slide 18: Reconciliations
Reconciliations MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirty-Nine Weeks Ended May 29, 2021 (In thousands, except percentages and per share data) GAAP Financial Non-GAAP Financial Measure Items Affecting Comparability Measure Legal Costs - Inventory
Slide 19: Slide 19
MSC Industrial Direct — Q3 2022 Earnings Presentation on 6ix