Msc Industrial Direct Company, Inc. · NYSE:MSM
Msc Industrial Direct — Q1 2025 Earnings Presentation
20 slides from Msc Industrial Direct's earnings presentation, Jan 8, 2025
Slide 1: Fiscal First Quarter 2025 Earnings
FISCAL FIRST QUARTER 2025 EARNINGS JANUARY 8, 2025
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 present or historical fact, that address activities, events or develop
Slide 3: Fiscal First Quarter 2025 Highlights
FISCAL FIRST QUARTER 2025 HIGHLIGHTS 1 Average daily sales down 2.7% YoY, above the prior guidance range of down 4.5% to 5.5%, largely driven by a stronger than expected November 2 Maintaining momentum in solutions with the number of vending machines in service and In-Plant programs up 10% and 29%,
Slide 4: Reenergize the Core: Improving Execution and Long-Term Position
IMPROVING EXECUTION AND LONG-TERM POSITION DESPITE MARKET SOFTNESS CONTINUING IN FISCAL 2025 Fiscal 1Q’25 (2.7)% 40.7% 8.0% 179% Highlights AVERAGE DAILY GROSS ADJUSTED FREE CASH FLOW SALES MARGIN OPERATING MARGIN* CONVERSION* Strategic Priorities 1Q’25 Progress Maintain Solutions • 369 In-Plant pro
Slide 5: Taking Action to Return Growth Well Above Industrial Production
TAKING ACTION TO RETURN GROWTH WELL ABOVE INDUSTRIAL PRODUCTION MSC Total Organic Sales Growth 3-Month Average - IP Index* 20% MSC Total Growth (3 Mo Avg) IP Index Performance YoY of 15% MSC’s Top 5 Industries 10% Industry Group 1Q’25 5% Machinery & Equipment (1.0)% Primary Metals (2.0)% 0% Fabricat
Slide 6: Fiscal First Quarter 2025 Reported and Adjusted Results
FISCAL FIRST QUARTER 2025 REPORTED AND ADJUSTED RESULTS Net Sales Gross Profit Operating Profit Earnings (millions) (millions and % of sales) (millions and % of sales) (per diluted share) Reported Adjusted* Reported Adjusted* $393.1 $378.2 $101.6 $103.7 $1.25 $954.0 $928.5 $1.22 $72.3 $74.6 $0.86 $0
Slide 7: Fiscal First Quarter 2025 Balance Sheet and Cash Flow
FISCAL FIRST QUARTER 2025 BALANCE SHEET AND CASH FLOW Free Cash Flow* (millions) $81.7 • Strong operating cash flow during the quarter primarily $62.7 driven by working capital improvement resulting in operating cash flow conversion** of 223% • Driving free cash flow* improvement of 30% YoY and free
Slide 8: Clear Capital Allocation Priorities
CLEAR CAPITAL ALLOCATION PRIORITIES Long-Term Priorities Significant capital allocation optionality after deprioritizing special Dividends and Share Strategic dividends; potential uses include organic growth investments, Repurchases Optionality strategic M&A, debt paydown, or further deployment to s
Slide 9: Fiscal 2Q Expectations Reflect Slower Start and Higher Costs
FISCAL 2Q EXPECTATIONS REFLECT A SLOWER START IN THE QUARTER AND HIGHER COSTS YOY Down 3.0% to 5.0% YoY 6.5% to 7.5% 2Q’25 OUTLOOK AVERAGE DAILY SALES (ADS) ADJUSTED OPERATING MARGIN*** ADS YoY TRENDS CONSIDERATIONS & ASSUMPTIONS • ADS growth for the first four weeks of fiscal December performed sim
Slide 10: FY'25 Guidance Assumptions and Historical ADS Cadence
FY’25 GUIDANCE ASSUMPTIONS AND HISTORICAL ADS CADENCE FY’25 MODELING $90-$95M ~$45M $100-$110M*** ~100% 24.5%-25.0% Depreciation and Interest and Other Capital Free Cash Flow Tax ASSUMPTIONS Amortization Expense Expenditures Conversion* Rate AVERAGE DAILY SALES CADENCE 2Q’25 ADS Mid Point 1Q to 2Q 2
Slide 11: Summary
SUMMARY 1 Average daily sales down 2.7% YoY, above the prior guidance range of down 4.5% to 5.5%, largely driven by a stronger than expected November 2 Maintaining momentum in solutions with the number of vending machines in service and In-Plant programs up 10% and 29%, respectively 3 Gross margin o
Slide 12: Appendix
APPENDIX MSC
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 return on invested capital (as defi
Slide 14: Reconciliations
RECONCILIATIONS Non-GAAP Financial Measures Results Excluding Share Reclassification Costs (prior year) and Restructuring and Other Costs In calculating certain non-GAAP financial measures, we exclude share reclassification costs (prior year), restructuring and other costs and tax effects. Managemen
Slide 15: Reconciliations
RECONCILIATIONS investor.mscdirect.com 15
Slide 16: Reconciliations
RECONCILIATIONS investor.mscdirect.com 16
Slide 17: Reconciliations
RECONCILIATIONS investor.mscdirect.com 17
Slide 18: Reconciliations
RECONCILIATIONS investor.mscdirect.com 18
Slide 19: Reconciliations
RECONCILIATIONS investor.mscdirect.com 19
Slide 20: Thank You
THANK YOU
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