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MSC BUILT TO MAKE YOU BETTER NEWS MSC INDUSTRIAL SUPPLY CO . REPORTS FISCAL 2022 FIRST QUARTER RESULTS FISCAL 2022 Q1 HIGHLIGHTS • Net sales of $ 848.5 million , an increase of 9.9 % YoY • • • Average daily sales growth of nearly 500 basis points above Industrial Production Index Operating income of $ 90.7 million , or $ 96.0 million excluding restructuring and other charges¹ Operating margin of 10.7 % , or 11.3 % excluding restructuring and other charges¹ • Diluted EPS of $ 1.18 vs. $ 0.69 in the prior fiscal year quarter . Adjusted diluted EPS of $ 1.25 vs. $ 1.11 in the prior fiscal year quarter , a 12.6 % increase¹ MELVILLE , NY and DAVIDSON , NC , DECEMBER 22 , 2021 - MSC INDUSTRIAL SUPPLY CO . ( NYSE : MSM ) , " MSC " or the " Company , " a leading North American distributor of metalworking and maintenance , repair and operations ( MRO ) products and services , today reported financial results for its fiscal 2022 first quarter ended November 27 , 2021 . Financial Highlights² Net Sales Income from Operations Operating Margin Net Income attributable to MSC Diluted EPS Adjusted Financial Highlights 1,2 Net Sales Income from Operations Operating Margin Net Income attributable to MSC Diluted EPS FY22 Q1 $ 848.5 FY21 Q1 Change $ 771.9 9.9 % $ 90.7 $ 53.9 68.3 % 10.7 % 7.0 % $ 66.1 $ 38.5 71.8 % $ 1.18 3 3 $ 0.69 71.0 % FY22 Q1 FY21 Q1 Change $ 848.5 $ 771.9 9.9 % $ 96.0 $ 84.9 13.1 % 11.3 % 11.0 % $ 70.0 $ 61.9 13.1 % $ 1.25 3 $ 1.11 3 12.6 % 1 Reflects severance and related charges for a headcount reduction to better align with our strategy . Represents a non - GAAP financial measure and reconciliations to the most directly comparable GAAP financial measure is presented in the schedules accompanying this press release . 2 In millions except percentages and per share data or as otherwise noted . 3 Based on 55.9 million weighted - average diluted shares outstanding for FY22 Q1 and 55.8 million weighted - average diluted shares outstanding for FY21 Q1 . Erik Gershwind , President and Chief Executive Officer , said , “ Our fiscal first quarter was a strong start to the year . Average daily sales grew 9.9 % as we sustained our market share capture rate by outgrowing the Industrial Production Index by nearly 500 basis points . We translated that top line growth into double digit earnings growth and strong operating expense leverage . Gross margins , on the other hand , came in below our expectations . We implemented countermeasures quickly and saw improvement towards the end of the quarter and into December . We expect gross margins to bounce back in our fiscal second quarter and we expect to achieve our goal of keeping gross margins roughly flat for the full year . " Kristen Actis - Grande , Executive Vice President and Chief Financial Officer , added , " We produced double - digit earnings growth in the first quarter due to strong top line performance and excellent cost controls . Adjusted operating expenses as a percentage of sales dropped 70 basis points year over year fueled by productivity improvements . Our Mission Critical initiatives achieved savings of $ 10 million and we reinvested $ 7 million in the quarter . Momentum is building in our business and , as of now , we are trending towards the higher end of our annual operating margin framework . We also see low double- digit ADS growth as a possibility for fiscal 2022. If this happens , operating margins would lift beyond the ranges in our annual operating margin framework . " Gershwind concluded , " I am encouraged by the recent progress I see in the Company . Looking beyond this fiscal year , we are on track to achieve our goals of growing sales by at least 400 basis points above the Industrial Production Index and returning ROIC to the high - teens by the end of fiscal 2023. "