MSC Industrial Direct Co. Inc. (MSM, Financial) filed Quarterly Report for the period ended 2010-11-27.
Msc Industrial Direct Co. Inc. has a market cap of $4.1 billion; its shares were traded at around $65.26 with a P/E ratio of 27.5 and P/S ratio of 2.4. The dividend yield of Msc Industrial Direct Co. Inc. stocks is 1.3%. Msc Industrial Direct Co. Inc. had an annual average earning growth of 19.2% over the past 10 years. GuruFocus rated Msc Industrial Direct Co. Inc. the business predictability rank of 3.5-star.MSM is in the portfolios of Chuck Royce of Royce& Associates, Ron Baron of Baron Funds, Kenneth Fisher of Fisher Asset Management, LLC, John Keeley of Keeley Fund Management, Jeremy Grantham of GMO LLC.
Liquidity and Capital Resources As of November 27, 2010, we held $80.5 million in cash and cash equivalent funds consisting primarily 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 costs of acquisitions, 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, fund the costs of acquisitions, repurchase shares of our Class A common stock, and pay dividends. At November 27, 2010, total borrowings outstanding were $18.8 million, as compared to $39.4 million at August 28, 2010.
At November 27, 2010 and August 28, 2010, under our Credit Facility, we had term loan borrowings outstanding of $18.7 million and $39.2 million, respectively. The final payment of $18.7 million was made in December 2010. The borrowing rates in effect for the term loan borrowings at November 27, 2010 and August 28, 2010 were 0.76% and 0.82%, respectively.
Net cash provided by operating activities for the thirteen week periods ended November 27, 2010 and November 28, 2009 was $41.9 million and $46.8 million, respectively. The decrease of approximately $4.9 million in net cash provided from operations resulted primarily from an increase in inventory and a decline in the changes in accounts payable and accrued liabilities, offset by an increase in net income and a decline in the change in accounts receivable.
Net cash used in financing activities for the thirteen week periods ended November 27, 2010 and November 28, 2009 was $78.1 million and $16.6 million, respectively. The increase of approximately $61.5 million in net cash used in financing activities was primarily attributable to the special cash dividend paid of $1.00 per share, which amounted to approximately $63.3 million.
We paid a dividend of $77.2 million on November 16, 2010 to shareholders of record at the close of business on November 2, 2010. This consisted of a special cash dividend of $1.00 per share in addition to the regular quarterly cash dividend of $0.22 per share approved by the Board of Directors on October 19, 2010. On December 21, 2010, the Board of Directors declared a dividend of $0.22 per share payable on January 25, 2011 to shareholders of record at the close of business on January 11, 2011. The dividend will result in a payout of approximately $14.0 million, based on the number of shares outstanding at January 3, 2011.
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Msc Industrial Direct Co. Inc. has a market cap of $4.1 billion; its shares were traded at around $65.26 with a P/E ratio of 27.5 and P/S ratio of 2.4. The dividend yield of Msc Industrial Direct Co. Inc. stocks is 1.3%. Msc Industrial Direct Co. Inc. had an annual average earning growth of 19.2% over the past 10 years. GuruFocus rated Msc Industrial Direct Co. Inc. the business predictability rank of 3.5-star.MSM is in the portfolios of Chuck Royce of Royce& Associates, Ron Baron of Baron Funds, Kenneth Fisher of Fisher Asset Management, LLC, John Keeley of Keeley Fund Management, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
The global economic recession negatively impacted our net sales for the thirteen week period ended November 28, 2009. Net sales for the Company began to improve in the second quarter of fiscal 2010 and have continued to improve through the first quarter of fiscal 2011. Exclusive of the UK, average order size increased to approximately $350 for the first quarter of fiscal 2011 as compared to $315 in the first quarter of fiscal 2010. We believe that our ability to transact business with our customers through various electronic portals and directly through the MSC Websites, gives us a competitive advantage over smaller suppliers. As noted earlier, we believe that our competitive advantages have resulted in share gains for the Company. Sales through the MSC Websites were $147.6 million for the first quarter of fiscal 2011, representing 31.2% of consolidated net sales, compared to sales of $114.8 million for the first quarter of fiscal 2010, representing 29.8% of consolidated net sales. We grew our field sales associate headcount to 986 at November 27, 2010, an increase of approximately 4.1%, from field sales associates of 947 at November 28, 2009, in order to support our strategy to acquire new accounts and expand existing accounts across all customer types. We planLiquidity and Capital Resources As of November 27, 2010, we held $80.5 million in cash and cash equivalent funds consisting primarily 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 costs of acquisitions, 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, fund the costs of acquisitions, repurchase shares of our Class A common stock, and pay dividends. At November 27, 2010, total borrowings outstanding were $18.8 million, as compared to $39.4 million at August 28, 2010.
At November 27, 2010 and August 28, 2010, under our Credit Facility, we had term loan borrowings outstanding of $18.7 million and $39.2 million, respectively. The final payment of $18.7 million was made in December 2010. The borrowing rates in effect for the term loan borrowings at November 27, 2010 and August 28, 2010 were 0.76% and 0.82%, respectively.
Net cash provided by operating activities for the thirteen week periods ended November 27, 2010 and November 28, 2009 was $41.9 million and $46.8 million, respectively. The decrease of approximately $4.9 million in net cash provided from operations resulted primarily from an increase in inventory and a decline in the changes in accounts payable and accrued liabilities, offset by an increase in net income and a decline in the change in accounts receivable.
Net cash used in financing activities for the thirteen week periods ended November 27, 2010 and November 28, 2009 was $78.1 million and $16.6 million, respectively. The increase of approximately $61.5 million in net cash used in financing activities was primarily attributable to the special cash dividend paid of $1.00 per share, which amounted to approximately $63.3 million.
We paid a dividend of $77.2 million on November 16, 2010 to shareholders of record at the close of business on November 2, 2010. This consisted of a special cash dividend of $1.00 per share in addition to the regular quarterly cash dividend of $0.22 per share approved by the Board of Directors on October 19, 2010. On December 21, 2010, the Board of Directors declared a dividend of $0.22 per share payable on January 25, 2011 to shareholders of record at the close of business on January 11, 2011. The dividend will result in a payout of approximately $14.0 million, based on the number of shares outstanding at January 3, 2011.
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