MSC Industrial Direct Co. Inc. (MSM, Financial) filed Quarterly Report for the period ended 2009-02-28.
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 $2.28 billion; its shares were traded at around $36.61 with a P/E ratio of 12.2 and P/S ratio of 1.3. The dividend yield of MSC Industrial Direct Co. Inc. stocks is 2.1%. MSC Industrial Direct Co. Inc. had an annual average earning growth of 17.4% over the past 10 years.
The global economic slowdown has negatively impacted our net sales, as mentioned above, as well as resulted in a decrease in average order size to approximately $302 (excluding J&L UK) in the second quarter of fiscal 2009 from $307 (excluding J&L UK) in the second 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 $103.6 million for the second quarter of fiscal 2009, representing 29.4% of consolidated net sales. We grew our field sales associate headcount to 914 at February 28, 2009, an increase of approximately 6.7% from field sales associates of 857 at March 1, 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.
At February 28, 2009, under our Credit Facility, we had term loan borrowings outstanding of $121.2 million. Remaining payments consist of a quarterly installment of approximately $10.3 million in March 2009, 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 rate payable for borrowings under the term loan is currently 50 basis points over LIBOR rates. The borrowing rate in effect for the term loan borrowings at February 28, 2009 was 0.91%.
Net cash provided by operating activities for the twenty-six week periods ended February 28, 2009 and March 1, 2008 was $147.8 million and $67.0 million, respectively. The increase of $80.8 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 twenty-six week periods ended February 28, 2009 and March 1, 2008 was $12.3 million and $5.9 million, respectively. The increase of $6.4 million is due primarily to higher expenditures for property, plant and equipment that occurred during the twenty-six week period ended February 28, 2009.
We paid a dividend of $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 January 20, 2009 and October 30, 2008, respectively. On March 31, 2009, the Board of Directors declared a dividend of $0.20 per share payable on April 28, 2009 to shareholders of record at the close of business on April 14, 2009. The dividend will result in a payout of approximately $12.5 million, based on the number of shares outstanding at April 1, 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 $2.28 billion; its shares were traded at around $36.61 with a P/E ratio of 12.2 and P/S ratio of 1.3. The dividend yield of MSC Industrial Direct Co. Inc. stocks is 2.1%. MSC Industrial Direct Co. Inc. had an annual average earning growth of 17.4% over the past 10 years.
Highlight of Business Operations:
programs of approximately $13 million and $5 million, respectively, partially offset by approximately $9 million and $25 million, respectively, attributable to our increase in prices on certain stock keeping units (SKUs).The global economic slowdown has negatively impacted our net sales, as mentioned above, as well as resulted in a decrease in average order size to approximately $302 (excluding J&L UK) in the second quarter of fiscal 2009 from $307 (excluding J&L UK) in the second 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 $103.6 million for the second quarter of fiscal 2009, representing 29.4% of consolidated net sales. We grew our field sales associate headcount to 914 at February 28, 2009, an increase of approximately 6.7% from field sales associates of 857 at March 1, 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.
At February 28, 2009, under our Credit Facility, we had term loan borrowings outstanding of $121.2 million. Remaining payments consist of a quarterly installment of approximately $10.3 million in March 2009, 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 rate payable for borrowings under the term loan is currently 50 basis points over LIBOR rates. The borrowing rate in effect for the term loan borrowings at February 28, 2009 was 0.91%.
Net cash provided by operating activities for the twenty-six week periods ended February 28, 2009 and March 1, 2008 was $147.8 million and $67.0 million, respectively. The increase of $80.8 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 twenty-six week periods ended February 28, 2009 and March 1, 2008 was $12.3 million and $5.9 million, respectively. The increase of $6.4 million is due primarily to higher expenditures for property, plant and equipment that occurred during the twenty-six week period ended February 28, 2009.
We paid a dividend of $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 January 20, 2009 and October 30, 2008, respectively. On March 31, 2009, the Board of Directors declared a dividend of $0.20 per share payable on April 28, 2009 to shareholders of record at the close of business on April 14, 2009. The dividend will result in a payout of approximately $12.5 million, based on the number of shares outstanding at April 1, 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.
