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MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2025 FIRST QUARTER RESULTS
MSCStudio City(MSC) Prnewswire·2025-01-08 11:30

Financial Performance - Net sales for FY25 Q1 decreased by 2.7% YoY to 928.5million[2]−Incomefromoperationsdeclinedby28.8928.5 million [2] - Income from operations declined by 28.8% YoY to 72.3 million, with an operating margin of 7.8% [2] - Net income attributable to MSC dropped by 32.8% YoY to 46.6million,withdilutedEPSat46.6 million, with diluted EPS at 0.83 [2] - Adjusted income from operations stood at 74.6million,a28.074.6 million, a 28.0% YoY decrease, with an adjusted operating margin of 8.0% [2] - Adjusted net income attributable to MSC was 48.4 million, down 31.8% YoY, with adjusted diluted EPS at 0.86[2]ManagementCommentary−CEOErikGershwindhighlightedsolidperformanceinachallengingenvironment,withgrowthinthePublicSectorandexpansionofsolutionsfootprint[4]−CFOKristenActis−Grandenotedthatadjustedoperatingmarginexceededexpectationsbyapproximately50basispoints,drivenbyhigher−than−expectedrevenue[4]−Thecompanygeneratedsignificantfreecashflow,enablingshareholderreturnsthroughdividendsandsharerepurchases[4]−Despitenear−termsoftmacroconditions,thecompanyremainsbullishonlong−termgrowth,supportedbyproductivityinitiativesandtheMissionCriticalstrategy[4]FinancialOutlook−ForQ2FY25,thecompanyexpectsADSgrowthtorangebetween(5.0)0.86 [2] Management Commentary - CEO Erik Gershwind highlighted solid performance in a challenging environment, with growth in the Public Sector and expansion of solutions footprint [4] - CFO Kristen Actis-Grande noted that adjusted operating margin exceeded expectations by approximately 50 basis points, driven by higher-than-expected revenue [4] - The company generated significant free cash flow, enabling shareholder returns through dividends and share repurchases [4] - Despite near-term soft macro conditions, the company remains bullish on long-term growth, supported by productivity initiatives and the Mission Critical strategy [4] Financial Outlook - For Q2 FY25, the company expects ADS growth to range between (5.0)% and (3.0)%, with adjusted operating margin projected at 6.5% to 7.5% [5] - Full-year FY25 outlook for certain financial metrics has been maintained, with guidance provided on a non-GAAP adjusted basis [6] Balance Sheet and Cash Flow - Cash and cash equivalents increased to 57.3 million as of November 30, 2024, up from 29.6millionattheendofthepreviousquarter[13]−Netcashprovidedbyoperatingactivitieswas29.6 million at the end of the previous quarter [13] - Net cash provided by operating activities was 101.9 million, compared to 81.2millionintheprioryearquarter[15]−Capitalexpendituresforthequarterwere81.2 million in the prior year quarter [15] - Capital expenditures for the quarter were 20.2 million, slightly higher than the 18.4millioninthesameperiodlastyear[15]Non−GAAPFinancialMeasures−Thecompanyusesnon−GAAPfinancialmeasurestoexcluderestructuringandothercosts,providingaclearerviewofoperatingperformance[17][20]−AdjustedfinancialmeasuresforFY25Q1includeadjustedincomefromoperationsof18.4 million in the same period last year [15] Non-GAAP Financial Measures - The company uses non-GAAP financial measures to exclude restructuring and other costs, providing a clearer view of operating performance [17][20] - Adjusted financial measures for FY25 Q1 include adjusted income from operations of 74.6 million and adjusted net income of $48.4 million [2][21]