MSC INDUSTRIAL SUPPLY CO. (MSM) has reported 8.15 percent rise in profit for the quarter ended Mar. 04, 2017. The company has earned $53.56 million, or $0.93 a share in the quarter, compared with $49.52 million, or $0.80 a share for the same period last year. Revenue during the quarter went up marginally by 2.87 percent to $703.78 million from $684.12 million in the previous year period. Gross margin for the quarter contracted 44 basis points over the previous year period to 44.70 percent. Total expenses were 87.69 percent of quarterly revenues, down from 88.23 percent for the same period last year. This has led to an improvement of 54 basis points in operating margin to 12.31 percent.
Operating income for the quarter was $86.64 million, compared with $80.54 million in the previous year period.
Erik Gershwind, president and chief executive officer, said, "The environment continued to improve during our fiscal second quarter and the momentum sustained into March, the start of our fiscal third quarter. Most of our customers continue to express an improving outlook, particularly those in our core metalworking market. Our fiscal second quarter results reflected these developments."
For the third-quarter, MSC INDUSTRIAL SUPPLY CO. projects revenue to be in the range of $734 million to $748 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $1.05 to $1.09 for the third-quarter.
Operating cash flow drops significantlyMSC INDUSTRIAL SUPPLY CO. has generated cash of $96.66 million from operating activities during the first half, down 47.18 percent or $86.32 million, when compared with the last year period. The company has spent $25.51 million cash to meet investing activities during the first six months as against cash outgo of $26.78 million in the last year period.
The company has spent $88.29 million cash to carry out financing activities during the first six months as against cash outgo of $170.44 million in the last year period.
Cash and cash equivalents stood at $35.60 million as on Mar. 04, 2017, up 48.59 percent or $11.64 million from $23.96 million on Feb. 27, 2016.
Working capital drops significantly
MSC INDUSTRIAL SUPPLY CO. has witnessed a decline in the working capital over the last year. It stood at $477.86 million as at Mar. 04, 2017, down 25.21 percent or $161.12 million from $638.98 million on Feb. 27, 2016. Current ratio was at 1.96 as on Mar. 04, 2017, down from 2.92 on Feb. 27, 2016.
Cash conversion cycle (CCC) has decreased to 81 days for the quarter from 142 days for the last year period. Days sales outstanding went up to 53 days for the quarter compared with 52 days for the same period last year.
Days inventory outstanding has decreased to 54 days for the quarter compared with 116 days for the previous year period. At the same time, days payable outstanding was almost stable at 27 days for the quarter, when compared with the previous year period.
Debt increases substantially
MSC INDUSTRIAL SUPPLY CO. has witnessed an increase in total debt over the last one year. It stood at $549.13 million as on Mar. 04, 2017, up 67.42 percent or $221.13 million from $328 million on Feb. 27, 2016. Total debt was 26.77 percent of total assets as on Mar. 04, 2017, compared with 16.19 percent on Feb. 27, 2016. Debt to equity ratio was at 0.47 as on Mar. 04, 2017, up from 0.24 as on Feb. 27, 2016. Interest coverage ratio deteriorated to 29.37 for the quarter from 62.19 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
