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MSC Industrial Direct Company Inc. (MSM+2.22%) has submitted its Form 10-Q filing for the quarterly period ended November 30, 2024.
The filing details a decrease in net sales to $928,484,000 from $953,969,000 in the same quarter of the previous year, representing a 2.7% decline. The decrease is attributed to lower sales volume and unfavorable foreign exchange impacts.
Gross profit for the quarter was reported at $378,187,000, down from $393,117,000 in the previous year. The gross profit margin decreased to 40.7% from 41.2%, primarily due to headwinds between sales price and cost of goods sold.
Operating expenses increased to $303,563,000 from $290,633,000, driven by higher payroll costs and investments in digital initiatives. Operating expenses as a percentage of net sales rose to 32.7% from 30.5%.
Restructuring and other costs for the quarter were $2,344,000, up from $916,000 in the prior year, mainly due to consulting-related costs for strategic realignment efforts.
Income from operations decreased to $72,280,000 from $101,568,000, with the operating margin declining to 7.8% from 10.6%.
Total other expense increased to $11,678,000 from $10,250,000, primarily due to realized and unrealized losses on foreign exchange.
Net income for the quarter was $45,694,000, down from $69,128,000 in the previous year. The effective tax rate was 24.6%, slightly higher than the previous year's 24.3%.
Cash provided by operating activities was $101,868,000, compared to $81,168,000 in the prior year. Cash used in investing activities was $20,408,000, primarily for property, plant, and equipment.
Cash used in financing activities was $53,359,000, reflecting repurchases of Class A Common Stock and dividend payments.
The company reported total debt of $519,967,000 as of November 30, 2024, with a net debt position of $462,701,000 after accounting for cash and cash equivalents.
The filing also includes details on the company's liquidity, capital resources, and recent accounting standards updates.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the MSC Industrial Direct Company Inc. quarterly 10-Q report dated January 8, 2025. To report an error, please email earnings@qz.com.