Msc Industrial Direct Company, Inc. · NYSE:MSM
Msc Industrial Direct — Q3 2013 Earnings Presentation
13 slides from Msc Industrial Direct's earnings presentation, Jul 10, 2013
Slide 1: Fiscal 3Q'13 Earnings Presentation
1 Fiscal 3Q’13 Earnings Presentation July 10, 2013
Slide 2: Risks and Non-GAAP Disclosures
2 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 and expected benefits from our investment and strategic pla
Slide 3: Glossary
3 Glossary 3 ▪ Reported Results – results as reported using U.S. Generally Accepted Accounting Principles (US GAAP). ▪ Adjusted Results – exclude non - recurring relocation costs associated with our Davidson facility, as well as the non - recurring transaction and integration costs associated with t
Slide 4: BDNA-Related Guidance Reaffirmed
4 BDNA - Related Guidance Reaffirmed ▪ $15 million - $20 million run - rate cost synergies by FY15 ▪ EPS contribution for FY13 slightly better than expected ▪ $0.15 - $0.20 EPS accretion in FY14 ▪ $0.30 - $0.40 EPS accretion in FY15 ▪ >$100 million NPV of cash tax benefits ▪ $25 million - $30 millio
Slide 5: F3Q'13 Guidance Comparison
5 F3Q’13 Guidance Comparison 3Q 2013 Guidance Comparable Adjusted 3Q 2013 Results (1) Variance (from midpoint) Sales $597M - $609M $602M - $1M Gross Margin 44.7% - 45.1% 45.0% + 10 bps Adjusted EPS $0.95 - $0.99 $1.03 + $0.06 Adjusted Operating Expenses $171M $167M - $4M Tax Rate 38.2% 37.1% - 110 b
Slide 6: F3Q'13 EPS Walk
6 F3Q’13 EPS Walk (1) 6 (1) Previously provided guidance for F3Q 2013 excluded the BDNA operating results, non - recurring relocation costs associated with ou r Davidson facility, as well as the non - recurring transaction and integration costs associated with the BDNA acquisition. The Comp arable A
Slide 7: F4Q'13 Guidance
7 F4Q’13 Guidance Sales $661M – $673M Gross Margin 45.0% +/ - 20 bps Adjusted EPS $0.87 – $0.91 Tax Rate 37.5% Assumptions: • Includes BDNA operating results at neutral impact to EPS • Excludes non - recurring transaction and integration costs associated with the BDNA acquisition and relocation cost
Slide 8: Adjusted F4Q'13 EPS Guidance Walk
8 Adjusted F4Q’13 EPS Guidance Walk (1) 8 (1) Adjusted results exclude non - recurring relocation costs associated with our Davidson facility, as well as the non - recurring tran saction and integration costs associated with the BDNA acquisition. The impact of the extra week, pricing impact, and oth
Slide 9: Reconciliations: Non-GAAP Financial Measures
9 Reconciliations 9 Non - GAAP Financial Measures To supplement MSC’s unaudited selected financial data presented on a basis consistent with Generally Accepted Accounting Prin cip les (“GAAP”), the Company discloses certain non - GAAP financial measures, including adjusted operating income, adjusted
Slide 10: Reconciliations: Quarterly non-GAAP reconciliation
10 Reconciliations 10 Quarterly non - GAAP reconciliation ( in thousands ) $ Margin GAAP Operating income $ 100,246 15.7% Non - recurring costs 6,385 Adjusted Operating income 106,631 16.7% BDNA operating income (2,564) Comparable Adjusted Operating Income $ 104,067 17.3% 1 - Jun - 13 26 - May - 12
Slide 11: Reconciliations: excluding BDNA operations
11 Reconciliations 11 1 - Jun - 13 26 - May - 12 ( in thousands and excluding BDNA operations ) $ $ Sales 602,190 $ 611,970 $ Cost of Sales 331,266 332,387 Gross Margin 270,924 279,583 Operating Expenses 173,242 168,724 Income from Operations 97,682 110,859 Non - recurring costs 6,385 - Comparable A
Slide 12: Reconciliations: Diluted EPS
12 Reconciliations 12 Diluted EPS GAAP net income $ 62,354 $ 0.98 Non - recurring costs* 4,390 0.07 Adjusted net income 66,744 1.05 BDNA net income (1,343) (0.02) Comparable Adjusted net income $ 65,401 $ 1.03 ( in thousands, except per share amounts ) $(after tax) * On a pre - tax basis includes ap
Slide 13: Reconciliations: Year to date non-GAAP reconciliations
13 Reconciliations 13 Year to date non - GAAP reconciliations ( in thousands ) $ % of Sales $ % of Sales GAAP operating expenses $ 517,797 29.0% $ 486,966 28.3% BDNA operating expenses (16,025) - Non - recurring costs (9,490) - Comparable Adjusted Operating Expenses $ 492,282 28.1% $ 486,966 28.3% 1
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