Msc Industrial Direct Company, Inc. · NYSE:MSM
Msc Industrial Direct — Q1 2022 Earnings Presentation
17 slides from Msc Industrial Direct's earnings presentation, Dec 22, 2021
Slide 1: Fiscal First Quarter 2022 Earnings Presentation
Fiscal First Quarter 2022 Earnings Presentation DECEMBER 22, 2021
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 First Quarter 2022 Overview
Fiscal First Quarter 2022 Overview Growth initiatives and macro environment drove nearly 10% sales growth and market share capture of ~500 bps above the Industrial Production Index Gross margins declined versus the prior year; countermeasures implemented to maintain full year goal of flat gross marg
Slide 4: Fiscal First Quarter 2022 Reported Results
Fiscal First Quarter 2022 Reported Results Net Sales Gross Profit Operating Profit Earnings (millions) (millions and % of sales) (millions and % of sales) (per diluted share) $848.5 $90.7 $771.9 $352.6 $1.18 $323.3 $53.9 $0.69 41.9% 41.6% 10.7% 7.0% Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1
Slide 5: Fiscal First Quarter 2022 Adjusted Results
Fiscal First 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) $848.5 $352.6 $1.25 $771.9 $323.3 $1.11 $96.0 $84.9 41.9% 41.6% 11.0% 11.3% Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 202
Slide 6: Industrial Production Index (IP)
Industrial Production Index (IP) 6
Slide 7: Fiscal First Quarter 2022 Balance Sheet and Liquidity Position
Fiscal First Quarter 2022 Balance Sheet and Liquidity Position Free Cash Flow* Net Debt (millions) (millions) $95.3 $699.9 $437.0 $42.5 Q1 2021 Q1 2022 Q1 2021 Q1 2022 • Free cash flow decline reflects increases in working capital related to sales growth. • Net debt increase due to increased borrowi
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 $80 Targeted FY2022 Savings of Q1 FY2022: $10M $25M Sales and service Supply chain General & $60 Administrative • Established FY22 targets of $25M in savings and $15M in inv
Slide 9: Fiscal 2022 Framework – Adjusted
Fiscal 2022 Framework – Adjusted ADS Growth (YoY) Adjusted Operating Margin Range1 High-single digits 12.0% - 12.6% Mid-single digits 11.7% - 12.3% 1Excludes approximately $5-10 million of expected restructuring and other related costs. 9
Slide 10: Summary
Summary Focused on executing in an improving environment and remain committed to serving our customers Encouraged by momentum of growth initiatives as evidenced by improving results and project execution Implementation of Mission Critical initiatives driving above market growth and improving profits
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 & Supply General & Metalworking Portfolio Solutions E-commerce Customers & Services Chain Administrative Strength
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 free cash flow ("FCF"), non-GAAP gr
Slide 14: Reconciliations
Reconciliations MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirteen Weeks Ended November 27, 2021 and November 28, 2020 (dollars in thousands) GAAP Measure Items Affecting Comparability Non-GAAP Measure Net cash provided by operating activities Expendit
Slide 15: Reconciliations
Reconciliations MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirteen Weeks Ended November 27, 2021 (In thousands, except percentages and per share data ) GAAP Financial Measure Items Affecting Comparability Non-GAAP Financial Measure Total MSC Restructur
Slide 16: Reconciliations
Reconciliations MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirteen Weeks Ended November 28, 2020 (In thousands, except percentages and per share data) GAAP Financial Measure Items Affecting Comparability Non-GAAP Financial Measure Total MSC Restructuri
Slide 17: Slide 17
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