#United States #financial results #Fiscal 2025 #MSC Industrial #Melville, NY

MSC Industrial Supply Co. Releases Fiscal 2025 First Quarter Results

Overview
On January 8, 2025, MSC Industrial Supply Co. reported its financial results for the first quarter of fiscal 2025, ending November 30, 2024. The announcement revealed a 2.7% decrease in net sales and a significant drop in net income compared to the first quarter of fiscal 2024. This update reflects the challenges faced by the company in a competitive operating environment.

Financial Highlights
For the first quarter, MSC Industrial posted net sales of $928.5 million, a decline from $954.0 million the previous year. Operating income stood at $72.3 million, whereas when adjusted for restructuring and other costs, it totaled $74.6 million. The operating margin also faced a reduction, falling to 7.8% from 10.6% year-on-year. Notably, diluted earnings per share (EPS) decreased to $0.83 from $1.22 in the same quarter last year.


CEO Remarks
Erik Gershwind, Chief Executive Officer, expressed that the first quarter results reflected solid performance despite a challenging environment. He noted a return to growth within the Public Sector and emphasized the importance of their solutions expansion. Gershwind acknowledged that while the start to the fiscal year is encouraging, there remains room for improvement which the company is actively pursuing through its Mission Critical strategy.

Kristen Actis-Grande, Executive Vice President and CFO, confirmed that although average daily sales declined year-over-year, the revenue figures exceeded expectations. The adjusted operating margin was particularly strong, exceeding their outlook. Actis-Grande mentioned the generation of significant free cash flow, which provides flexibility for returning cash to shareholders via dividends and share buybacks.

Looking Forward
Gershwind indicated caution regarding macroeconomic conditions, particularly noting challenges that affected December's growth rate, primarily attributed to holiday season timing issues. However, he remains optimistic about the long-term growth trajectory, with plans to focus on initiatives designed to improve productivity and optimize operations.

Second Quarter Outlook
For the second quarter of fiscal 2025, MSC anticipates a year-over-year decline in average daily sales of between 5.0% to 3.0%. The adjusted operating margin is projected to be within the range of 6.5% - 7.5%. Moreover, MSC continues to maintain its full-year fiscal 2025 outlook for several financial metrics, including depreciation and amortization expenses estimated between $90 million - $95 million, and capital expenditures of approximately $100 million - $110 million.

Conclusion
MSC Industrial Supply Co.'s Q1 report draws attention to the economic and operational challenges facing the company, but it simultaneously highlights the positive steps taken towards recovery and growth. As they move into the next quarter, the focus will remain on strategic initiatives to capture market opportunities and bolster financial performance amid a competitive landscape.

For more information or to listen to the detailed conference call, investors and media can access the company's investor relations website at MSC Direct or call their provided numbers for direct inquiries.

Contact Information

• - Ryan Mills, CFA, Head of Investor Relations
• - Email: [email protected]
• - Zivanai Mutize, Head of Corporate Communications
• - Email: [email protected]

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For further inquiries, visit the official MSC Industrial site or refer to recent press releases for updates on the company's endeavors and performance.