Msc Industrial Direct Company, Inc. · NYSE:MSM
Msc Industrial Direct — Q2 2022 Earnings Presentation
18 slides from Msc Industrial Direct's earnings presentation, Mar 30, 2022
Slide 1: Fiscal Second Quarter 2022 Earnings Presentation
Fiscal Second Quarter 2022 Earnings Presentation MARCH 30, 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 Second Quarter 2022 Overview
Fiscal Second Quarter 2022 Overview Growth initiatives and macro environment drove 11.4% total sales growth (7.9% ADS growth); sustaining growth above the Industrial Production Index Gross margin of 42.5%, up sequentially from 41.6% and YoY from 38.1% (42.0% on an adjusted basis in the prior year pe
Slide 4: Fiscal Second Quarter 2022 Reported Results
Fiscal Second Quarter 2022 Reported Results Net Sales Gross Profit Operating Profit Earnings (millions) (millions and % of sales) (millions and % of sales) (per diluted share) $366.3 $1.25 $862.5 $97.2 $774.0 $294.8 42.5% 11.3% 38.1% $28.0 $0.32 3.6% Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q
Slide 5: Fiscal Second Quarter 2022 Adjusted Results
Fiscal Second Quarter 2022 Adjusted Results* Net Sales Adj. Gross Profit Adj. Operating Profit Adj. Earnings (millions) (millions and % of sales) (millions and % of sales) (per diluted share) $366.3 $1.29 $862.5 $324.8 $100.3 $774.0 $1.03 $80.5 42.5% 11.6% 42.0% 10.4% Q2 2021 Q2 2022 Q2 2021 Q2 2022
Slide 6: Industrial Production Index (IP)
Industrial Production Index (IP) 6
Slide 7: Fiscal Second Quarter 2022 Balance Sheet and Liquidity Position
Fiscal Second Quarter 2022 Balance Sheet and Liquidity Position Free Cash Flow* (millions) Net Debt $3.6 (millions) $793.7 $664.1 -$16.3 Q2 2021 Q2 2022 $99.0 Q2 2021 Q2 2022 $26.2 Q2 YTD 2021 Q2 YTD 2022 • Free cash flow decline reflects increases in working capital related to sales growth and stra
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 Q2 FY2022: $6M FY2022 Savings of Q1 FY2022: $10M $25M Sales and service Supply chain General & $60 Administrative • FY22 targets of $25M savings and $15M invest
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% Excludes approximately $5-10 million of expected restructuring and other costs. 1 9
Slide 10: Summary
Summary Laser focused on executing in a high growth, yet challenging supply chain environment to exceed our customers expectations Growth initiatives in high gear and strategy to deliver customer productivity improvements are resonating Mission Critical initiatives continue driving above market grow
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 free cash flow (“FCF”), non-GAAP gr
Slide 14: Reconciliations
Reconciliations MSC INDUST RIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information T hirteen and T wenty-Six Weeks Ended February 26, 2022 and February 27, 2021 (dollars in thousands) GAAP Measure Items Affecting Comparability Non-GAAP Measure Net cash provided by operating a
Slide 15: Reconciliations
Reconciliations MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirteen and Twenty-Six Weeks Ended February 26, 2022 (In thousands, except percentages and per share data) GAAP Financial Measure Items Affecting Comparability Non-GAAP Financial Measure Total
Slide 16: Reconciliations
Reconciliations MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Thirteen Weeks Ended February 27, 2021 (In thousands, except percentages and per share data) Non-GAAP Financial GAAP Financial Measure Items Affecting Comparability Measure Restructuring and Oth
Slide 17: Reconciliations
Reconciliations MSC INDUSTRIAL DIRECT CO., INC. Reconciliation of GAAP and Non-GAAP Financial Information Twenty-Six Weeks Ended February 27, 2021 (In thousands, except percentages and per share data) GAAP Financial Non-GAAP Financial Measure Items Affecting Comparability Measure Legal Costs - Inven
Slide 18: Slide 18
MSC Industrial Direct — Q2 2022 Earnings Presentation on 6ix