MSC Industrial ends fiscal Q2 with $191 million reduced long-term debt

By Lisa Kerner

Charlotte, N.C., April 6 – MSC Industrial Supply Co. ended its fiscal 2016 second quarter with cash and cash equivalents of about $24 million and long-term debt, net of current maturities, of about $191 million.

This compares to about $38 million and $215 million, respectively, at Aug. 29, 2015, according to the company’s earnings news release.

While president and chief executive officer Erik Gershwind said he was pleased with MSC’s performance, the macro environment remains quite challenging.

The strong U.S. dollar and low oil prices continue “to be a drag on manufacturing activity,” Gershwind said during the company’s earnings call on Wednesday.

Gross margin and earnings per share of $0.80 were both at the top of MSC’s guidance range, while average daily sales and operating expenses were in-line with guidance, according to executive vice president and chief financial officer Rustom Jilla.

Sales were $684 million, and operating expenses totaled $228.2 million for the quarter.

Looking ahead, MSC expects net sales for the fiscal 2016 third quarter to be between $729 million and $741 million. Diluted earnings per share for the fiscal 2016 third quarter are projected to be between $0.98 and $1.02.

MSC is a Melville, N.Y.-based distributor of a broad range of industrial products to industrial customers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.