6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
MSC Industrial Direct Co., Inc., Melville, NY, reported net sales for the second quarter of fiscal 2005 ended Feb. 26, 2005, were $271.4 million, an increase of 17.7% over net sales of $230.5 million in the second quarter of fiscal 2004. Net income increased 48.1% to $27.4 million in the second quarter of fiscal 2005, compared to net income of $18.5 million in the year-ago period.
For the first half of fiscal 2005, the company's net sales rose 18% to $534.7 million, compared to net sales of $453.3 million a year ago. Net income in the fiscal 2005 six-month period was $53.4 million, compared to $35.0 million in the year ago period, an increase of 52.5%.
"The operating environment is improving at a measured pace and we continue to see solid demand within our customer base," said Mitchell Jacobson, chairman and CEO. "While businesses continue to feel the impact of higher energy and raw material costs, it is in this type of environment that MSC's model brings the most value to our customers. Overall, we remain confident in our ability to execute, gain share and grow in all of our markets. Based on current market conditions, we expect revenues for the third quarter of fiscal 2005 to be between $285 million to $290 million, with diluted earnings per share of between $0.42 and $0.44."
"This was another solid quarter for us and I'm extremely pleased with our performance," stated David Sandler, President & Chief Operating Officer. "Through superior sales execution, we were able to grow revenues by nearly 18% and increase gross margins despite higher raw material and energy costs. Additionally, our commitment to process cost reduction combined with the leverage inherent in our cost structure enabled us to convert 34% of incremental sales into operating income, generating operating margins of 16.2%, and a net income increase of 48%."
Additionally, the company noted that during the second quarter of fiscal 2005 it repurchased 480,000 shares of its Class A Common Stock for approximately $15 million.