MSC Industrial Direct Co. Inc. (MSM, Financial) filed Quarterly Report for the period ended 2009-05-30.
MSC Industrial Direct Company Inc. is one of the largest direct marketers of a broad range of industrial products to small and mid-sized industrial customers throughout the United States. The company distributes a full line of industrial products such as cutting tools abrasives measuring instruments machine tool accessories safety equipment fasteners welding supplies and electrical supplies intended to satisfy the customers' maintenance repair and operations supplies requirements. MSC Industrial Direct Co. Inc. has a market cap of $2.26 billion; its shares were traded at around $36.27 with a P/E ratio of 13.3 and P/S ratio of 1.2. The dividend yield of MSC Industrial Direct Co. Inc. stocks is 2.2%. MSC Industrial Direct Co. Inc. had an annual average earning growth of 17.4% over the past 10 years.
Historically, our primary capital needs have been to fund the working capital requirements necessitated by our sales growth, adding new products, and facilities expansions and in the past, our primary sources of financing have been cash generated from operations. Borrowings under the Credit Facility, together with cash generated from operations, have been used to fund our working capital needs, repurchase shares of our Class A common stock, and pay dividends. At May 30, 2009, total borrowings outstanding were $206.3 million, as compared to $187.5 million at May 31, 2008.
At May 30, 2009, under our Credit Facility, we had term loan borrowings outstanding of $110.9 million. Remaining payments consist of quarterly installments of approximately $12.8 million in each of the following four quarters commencing in June 2009, $20.5 million in each of the following two quarters commencing in June 2010, and a final payment of approximately $18.7 million due in December 2010. Optional prepayments may be made at any time, or from time to time, in whole or part, without premium or penalty. The interest
Net cash provided by operating activities for the thirty-nine week periods ended May 30, 2009 and May 31, 2008 was $239.1 million and $144.4 million, respectively. The increase of $94.7 million in net cash provided by operating activities resulted primarily from a reduction of accounts receivable and inventory, partially offset by the decline in net income.
Net cash used in investing activities for the thirty-nine week periods ended May 30, 2009 and May 31, 2008 was $17.6 million and $11.2 million, respectively. The increase of $6.4 million is due primarily to higher expenditures for property, plant and equipment that occurred during the thirty-nine week period ended May 30, 2009.
We paid a dividend of $12.5 million on April 28, 2009, $12.5 million on February 3, 2009 and $12.4 million on November 13, 2008, to shareholders of record at the close of business on April 14, 2009, January 20, 2009 and October 30, 2008, respectively. On June 30, 2009, the Board of Directors declared a dividend of $0.20 per share payable on July 28, 2009 to shareholders of record at the close of business on July 14, 2009. The dividend will result in a payout of approximately $12.5 million, based on the number of shares outstanding at June 30, 2009.
Read the The complete ReportMSM is in the portfolios of Steve Mandel of Lone Pine Capital, Ron Baron of Baron Funds, Kenneth Fisher of Fisher Asset Management, LLC.
MSC Industrial Direct Company Inc. is one of the largest direct marketers of a broad range of industrial products to small and mid-sized industrial customers throughout the United States. The company distributes a full line of industrial products such as cutting tools abrasives measuring instruments machine tool accessories safety equipment fasteners welding supplies and electrical supplies intended to satisfy the customers' maintenance repair and operations supplies requirements. MSC Industrial Direct Co. Inc. has a market cap of $2.26 billion; its shares were traded at around $36.27 with a P/E ratio of 13.3 and P/S ratio of 1.2. The dividend yield of MSC Industrial Direct Co. Inc. stocks is 2.2%. MSC Industrial Direct Co. Inc. had an annual average earning growth of 17.4% over the past 10 years.
Highlight of Business Operations:
The global economic recession has negatively impacted our net sales, as mentioned above, as well as resulted in a decrease in average order size to approximately $293 (excluding J&L UK) in the third quarter of fiscal 2009 from $308 (excluding J&L UK) in the third quarter of fiscal 2008. We believe that our ability to transact with our customers through various portals and directly through the MSC Websites, gives us a competitive advantage over smaller suppliers. Sales through the MSC Websites were $102.4 million for the thirdHistorically, our primary capital needs have been to fund the working capital requirements necessitated by our sales growth, adding new products, and facilities expansions and in the past, our primary sources of financing have been cash generated from operations. Borrowings under the Credit Facility, together with cash generated from operations, have been used to fund our working capital needs, repurchase shares of our Class A common stock, and pay dividends. At May 30, 2009, total borrowings outstanding were $206.3 million, as compared to $187.5 million at May 31, 2008.
At May 30, 2009, under our Credit Facility, we had term loan borrowings outstanding of $110.9 million. Remaining payments consist of quarterly installments of approximately $12.8 million in each of the following four quarters commencing in June 2009, $20.5 million in each of the following two quarters commencing in June 2010, and a final payment of approximately $18.7 million due in December 2010. Optional prepayments may be made at any time, or from time to time, in whole or part, without premium or penalty. The interest
Net cash provided by operating activities for the thirty-nine week periods ended May 30, 2009 and May 31, 2008 was $239.1 million and $144.4 million, respectively. The increase of $94.7 million in net cash provided by operating activities resulted primarily from a reduction of accounts receivable and inventory, partially offset by the decline in net income.
Net cash used in investing activities for the thirty-nine week periods ended May 30, 2009 and May 31, 2008 was $17.6 million and $11.2 million, respectively. The increase of $6.4 million is due primarily to higher expenditures for property, plant and equipment that occurred during the thirty-nine week period ended May 30, 2009.
We paid a dividend of $12.5 million on April 28, 2009, $12.5 million on February 3, 2009 and $12.4 million on November 13, 2008, to shareholders of record at the close of business on April 14, 2009, January 20, 2009 and October 30, 2008, respectively. On June 30, 2009, the Board of Directors declared a dividend of $0.20 per share payable on July 28, 2009 to shareholders of record at the close of business on July 14, 2009. The dividend will result in a payout of approximately $12.5 million, based on the number of shares outstanding at June 30, 2009.
Read the The complete ReportMSM is in the portfolios of Steve Mandel of Lone Pine Capital, Ron Baron of Baron Funds, Kenneth Fisher of Fisher Asset Management, LLC.
