Home » MSC Industrial Direct reports higher profits
MSC Industrial Direct reports higher profits
November 6, 2004
MSC Industrial Direct Co., Inc.,Melville, NY, reported fiscal 2004 full-year net sales of $955.3 million for the period ended Aug. 28, 2004, an increase of 13.1% over revenues of $844.7 million for the fiscal 2003 full-year period. Net income for fiscal 2004 rose 55.8% to $81.2 million, from net income of $52.1 million in the same period a year ago. For the fourth quarter of fiscal 2004, net sales were $246.7 million, an increase of 18.2% over net sales of $208.8 million in the fourth quarter of fiscal 2003. Net income increased 62.6% to $22.3 million in the fourth quarter of fiscal 2004, compared to net income of $13.7 million in the year-ago period. There was one less day in this year's fourth quarter than in the fourth quarter of last year. "Our execution has resulted in outstanding financial performance," said Chuck Boehlke, executive vice president & CFO. "Normalized for the number of days in the quarter versus a year ago, net sales in the fiscal 2004 fourth quarter increased 20%, while our operating leverage and focus on cost controls resulted in the conversion of 37.8% of incremental sales into operating income. As a result, our operating margins rose significantly from year-ago levels to 14.6%, and net income increased 63%. Free cash flow reached $19.7 million for the quarter and $58.3 million for fiscal 2004, contributing to total invested cash at year-end of $183 million." "Throughout the year, MSC Industrial Direct has leveraged excellent operational execution and the overall economic recovery to generate exceptional results," said Chairman & CEO Mitchell Jacobson. "We've exceeded our expectations on many levels and have continued to gain market share by providing our customers with what they want: high quality products and services that lower their operating costs and increase their competitiveness. We've seen strong performance across all operating regions, and solid growth of our business within both the manufacturing and non-manufacturing sectors. "In short, we have delivered on our promises. However, we also recognize that our customers continue to face challenges, including rising raw material and energy costs and interest rates, which may affect their businesses in the future. These are not new issues, however, and we have managed our business appropriately to address them to date. Against this backdrop, we intend to enhance our position as the premier supplier of MRO products, and keep delivering on our promises by consistently outperforming the sector into fiscal 2005 and beyond." The company noted that, based on current market conditions, it expects revenues for the first quarter of fiscal 2005 to be between $260 million to $265 million.