FISCAL Q4 2020 HIGHLIGHTS
- Net sales of $747.7 million, a decrease of 11.3% YoY (12.7% decrease on an ADS basis)
- Operating income of $72.9 million, or $84.1 million excluding restructuring and related costs of $11.2 million*
- Operating margin of 9.8%, or 11.2% excluding restructuring and other related costs*
- Diluted EPS of $0.94 vs. $1.20 in the prior year quarter
- Adjusted diluted EPS of $1.09 vs. $1.30 in the prior year quarter*
FISCAL 2020 HIGHLIGHTS
- Net sales of $3.2 billion, a decrease of 5.1% YoY
- Operating income of $350.7 million, or $367.8 million excluding restructuring and related costs of $17.0 million*,**
- Operating margin of 11.0%, or 11.5% excluding restructuring and other related costs*
- Diluted EPS of $4.51 vs. $5.20 in the prior year
- Adjusted diluted EPS of $4.74 vs. $5.29 in the prior year*
MSC INDUSTRIAL SUPPLY CO. (NYSE: MSM), a premier distributor of Metalworking and Maintenance, Repair and Operations products and services to industrial customers throughout North America, today reported financial results for its fiscal 2020 fourth quarter and full year ended August 29, 2020. The quarter had one more selling day compared to the prior year period.
Erik Gershwind, president and chief executive officer, said, "Our fiscal fourth quarter reflects continued solid execution in a weak industrial demand environment. Most manufacturing end markets remain soft given COVID-19 uncertainty. We did, however, see sequential improvement in sales of non-safety and non-janitorial products. Sales of safety and janitorial products also continued growing year-over-year at roughly 20% percent each month on average and for the quarter. Overall gross margin for the quarter declined 40 basis points, reflecting PPE mix headwinds and underlying gross margin stability due to strong realization from our annual price increase, and continued benefits from our supplier programs."
Kristen Actis-Grande, executive vice president and chief financial officer, added, "Average daily sales were $11.7 million for the quarter as industrial demand remained weak. While our reported operating margin was down 90 basis points versus the prior year, excluding restructuring and other related costs, adjusted operating margin was down only 30 basis points. We implemented swift cost containment measures due to COVID-19 and took structural cost actions in the quarter. After significant debt repayment, our balance sheet and liquidity position remain very healthy."
Gershwind concluded, "We have been repositioning MSC from a spot buy supplier to a mission critical partner on the plant floor of our industrial customers over the last few years. Over the next three years, we will be taking measurable action to reaccelerate market share capture and improve profitability in a program named Mission Critical. The 2023 targets for this program are above market growth of at least 400 basis points and ROIC in the high-teens."
* An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in schedules following this press release
** Individual amounts may not agree to the total due to rounding
About MSC Industrial Supply Co.
MSC Industrial Supply Co. (NYSE:MSM) is a leading North American distributor of metalworking and maintenance, repair, and operations (MRO) products and services. We help our customers drive greater productivity, profitability and growth with more than 1.8 million products, inventory management and other supply chain solutions, and deep expertise from over 75 years of working with customers across industries.
Our experienced team of more than 6,300 associates is dedicated to working side by side with our customers to help drive results for their businesses - from keeping operations running efficiently today to continuously rethinking, retooling, and optimizing for a more productive tomorrow.
For more information on MSC, please visit mscdirect.com.
