Msc Industrial Direct Company, Inc. · NYSE:MSM
Msc Industrial Direct — Q4 FY2014 Earnings Presentation
11 slides from Msc Industrial Direct's earnings presentation, Oct 28, 2014
Slide 1: Fiscal 4Q'14 Earnings Presentation
Fiscal 4Q’14 Earnings Presentation October 28, 2014 1
Slide 2: Risks and Non-GAAP Disclosures
Risks and Non-GAAP Disclosures This presentation contains forward-looking statements within the meaning of U.S. securities laws, including guidance about expected future results, expectations regarding our ability to gain market share, expected benefits from our investment and strategic plans, inclu
Slide 3: F4Q'14 Guidance Comparison
F4Q’14 Guidance Comparison Adjusted 4Q 2014 4Q 2014 Guidance Results(1) Sales $718M - $730M $727M Gross Margin 45.7% - 46.1% 45.6% Adjusted EPS $0.98 - $1.02 $1.02 Adjusted Operating Expenses $231M $230M Tax Rate 37.7% 36.7% (1) Reconciliations are provided on slides 9-11. 3
Slide 4: F1Q'15 Guidance
F1Q’15 Guidance Sales $727M – $739M Gross Margin 45.3% +/- 20 bps Adjusted EPS $0.95 – $0.99 Tax Rate 38.3% Assumptions: Non-recurring integration costs associated with the CCSG acquisition is expected to have a $0.01 per share impact. 4
Slide 5: FY 2015 Operating Margin Scenarios
FY 2015 Operating Margin Scenarios Moderate Price Environment 14.1% 15.0% (+/- 50 bp) (+/- 50 bp) Low 13.4% 14.2% (+/- 50 bp) (+/- 50 bp) Moderate High Growth Environment 5
Slide 6: Recent MSC (Base Business) Growth Trends
Recent MSC (Base Business) Growth Trends 12% 56 10% 55 8% 54 6% 53 4% 52 2% 51 0% 50 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 -2% 49 -4% 48 -6% 47 Industry* MSC** MBI*** * Baird Industrial Distribution Survey Results 3Q14 Report. ** MSC sales excluding CCSG restated for calendar quarters. *
Slide 7: PPI: Processed Goods for Intermediate Demand
PPI: Processed Goods for Intermediate Demand MSC’s recent gross margin pressure reflects the current pricing environment 20 15 10 12-Month Percent Change 5 0 -5 -10 -15 -20 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 * 12-Month Percent Change: January 1984 – Augus
Slide 8: Capital Returned to Shareholders
Capital Returned to Shareholders $120,000 $250,000 16% CAGR $100,000 $200,000 (in thousands) (in thousands) $80,000 $150,000 9% $60,000 CAGR $100,000 $40,000 $50,000 $20,000 $0 $0 2003 2005 2007 2009 2011 2013 2015E 2003 2005 2007 2009 2011 2013 2015E Ordinary Dividends* Share Repurchases Special Di
Slide 9: Reconciliations
Reconciliations Non-GAAP Financial Measures To supplement MSC’s unaudited selected financial data presented on a basis consistent with Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures, including adjusted operating expenses, adjusted operati
Slide 10: Reconciliations
Reconciliations Thirteen Weeks Ended Thirteen Weeks Ended August 30, 2014 August 30, 2014 (dollars in (dollars in thousands) Margin % of Sales thousands) GAAP Operating income $99,826 13.7% GAAP Operating expenses $231,360 31.8% Non-recurring costs 1,108 Non-recurring costs 1,108 Adjusted Operating
Slide 11: Reconciliations
Reconciliations Thirteen Weeks Ended August 30, 2014 Diluted (in thousands, except per share amounts) $(after tax) EPS GAAP net income $62,813 $1.01 Non-recurring costs* 702 0.01 Adjusted net income $63,515 $1.02 * On a pre-tax basis includes approximately $29 of non-recurring relocation costs assoc
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