MSC Industrial Direct Co. Inc. (MSM, Financial) filed Quarterly Report for the period ended 2009-11-28.
Msc Industrial Direct Co. Inc. has a market cap of $3 billion; its shares were traded at around $47.69 with a P/E ratio of 24 and P/S ratio of 2. The dividend yield of Msc Industrial Direct Co. Inc. stocks is 1.7%. Msc Industrial Direct Co. Inc. had an annual average earning growth of 17.4% over the past 10 years.MSM is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES, Ron Baron of Baron Funds, Kenneth Fisher of Fisher Asset Management, LLC, George Soros of Soros Fund Management LLC.
Liquidity and Capital Resources As of November 28, 2009, we held $250.6 million in cash and cash equivalent funds. As of November 28, 2009, cash equivalents consisted of money market funds that invest primarily in U.S. government and government agency securities and municipal bond securities and contain portfolios with average maturities of less than three months. We maintain a substantial portion of our cash and cash equivalents with well-known financial institutions. Historically, our primary capital needs have been to fund our working capital requirements necessitated by our sales growth, the cost of an acquisition, adding new products, and facilities expansions. Our primary sources of capital have been cash generated from operations. Borrowings under our 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 November 28, 2009, total borrowings outstanding were $180.6 million, as compared to $193.5 million at August 29, 2009.
At November 28, 2009 and August 29, 2009, under our Credit Facility, we had term loan borrowings outstanding of $85.3 million and $98.1 million, respectively. Remaining payments as of November 28, 2009 consist of quarterly installments of approximately $12.8 million in each of the two quarters commencing in December 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 rate payable for borrowings under the term loan is currently 50 basis points over LIBOR rates. The borrowing rates in effect for the term loan borrowings at November 28, 2009 and August 29, 2009 were 0.74% and 0.79%, respectively. As of November 28, 2009, the current interest rate will reset in thirty day periods.
Net cash provided by operating activities for the thirteen week periods ended November 28, 2009 and November 29, 2008 was $46.8 million and $72.4 million, respectively. The decrease of approximately $25.6 million in net cash provided from operations resulted primarily from an increase in accounts receivable and a decline in net income, offset by a decline in inventory and an increase in the growth of accounts payable and accrued liabilities.
Net cash used in investing activities for the thirteen week periods ended November 28, 2009 and November 29, 2008 was $5.1 million and $6.4 million, respectively. The decrease of approximately $1.3 million resulted primarily from the decrease in expenditures for property, plant and equipment.
Net cash used in financing activities for the thirteen week periods ended November 28, 2009 and November 29, 2008 was $16.6 million and $17.4 million, respectively. The decrease of approximately $0.8 million in net cash used in financing activities was primarily attributable to an increase in the proceeds from the exercise of Class A common stock options, offset by increased repayments of notes payable under the Credit Facility and other notes and by the decline in net borrowings under the revolving loans from the Credit Facility.
Read the The complete Report
Msc Industrial Direct Co. Inc. has a market cap of $3 billion; its shares were traded at around $47.69 with a P/E ratio of 24 and P/S ratio of 2. The dividend yield of Msc Industrial Direct Co. Inc. stocks is 1.7%. Msc Industrial Direct Co. Inc. had an annual average earning growth of 17.4% over the past 10 years.MSM is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES, Ron Baron of Baron Funds, Kenneth Fisher of Fisher Asset Management, LLC, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:
The global economic recession has negatively impacted our net sales, as mentioned above, and also has resulted in a decrease in average order size to approximately $315 for the first quarter of fiscal 2010 from $323 in the first quarter of fiscal 2009. 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 $114.8 million for the first quarter of fiscal 2010, representing 29.8% of consolidated net sales, compared to sales of $120.8 million for the first quarter of fiscal 2009, representing 27.9% of consolidated net sales. We grew our field sales associate headcount to 947 at November 28, 2009, an increase of approximately 3.8%, from field sales associates of 912 at November 29, 2008, in order to support our strategy to acquire new accounts and expand existing accounts across all customer types. We will continue to manage the timing of field sales associate increases and branch openings based on economic conditions.Liquidity and Capital Resources As of November 28, 2009, we held $250.6 million in cash and cash equivalent funds. As of November 28, 2009, cash equivalents consisted of money market funds that invest primarily in U.S. government and government agency securities and municipal bond securities and contain portfolios with average maturities of less than three months. We maintain a substantial portion of our cash and cash equivalents with well-known financial institutions. Historically, our primary capital needs have been to fund our working capital requirements necessitated by our sales growth, the cost of an acquisition, adding new products, and facilities expansions. Our primary sources of capital have been cash generated from operations. Borrowings under our 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 November 28, 2009, total borrowings outstanding were $180.6 million, as compared to $193.5 million at August 29, 2009.
At November 28, 2009 and August 29, 2009, under our Credit Facility, we had term loan borrowings outstanding of $85.3 million and $98.1 million, respectively. Remaining payments as of November 28, 2009 consist of quarterly installments of approximately $12.8 million in each of the two quarters commencing in December 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 rate payable for borrowings under the term loan is currently 50 basis points over LIBOR rates. The borrowing rates in effect for the term loan borrowings at November 28, 2009 and August 29, 2009 were 0.74% and 0.79%, respectively. As of November 28, 2009, the current interest rate will reset in thirty day periods.
Net cash provided by operating activities for the thirteen week periods ended November 28, 2009 and November 29, 2008 was $46.8 million and $72.4 million, respectively. The decrease of approximately $25.6 million in net cash provided from operations resulted primarily from an increase in accounts receivable and a decline in net income, offset by a decline in inventory and an increase in the growth of accounts payable and accrued liabilities.
Net cash used in investing activities for the thirteen week periods ended November 28, 2009 and November 29, 2008 was $5.1 million and $6.4 million, respectively. The decrease of approximately $1.3 million resulted primarily from the decrease in expenditures for property, plant and equipment.
Net cash used in financing activities for the thirteen week periods ended November 28, 2009 and November 29, 2008 was $16.6 million and $17.4 million, respectively. The decrease of approximately $0.8 million in net cash used in financing activities was primarily attributable to an increase in the proceeds from the exercise of Class A common stock options, offset by increased repayments of notes payable under the Credit Facility and other notes and by the decline in net borrowings under the revolving loans from the Credit Facility.
Read the The complete Report
