MSC Industrial Direct Co. Inc. (NYSE:MSM) Q3 2019 Earnings Conference Call - Final Transcript
Jul 10, 2019 • 08:30 am ET
Good morning and welcome to the MSC Industrial Supply Company's Fiscal 2019 Third Quarter Earnings Results Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to John Chironna, Vice President of Investor Relations and Treasurer. Mr. Chironna, please go ahead.
Thank you, Anita, and good morning, everyone. Today, I'd like to welcome you to our fiscal 2019 third quarter conference call. With me in the room are Erik Gershwind, our Chief Executive Officer; and Rustom Jilla, our Chief Financial Officer. During today's call, we will refer to various financial and management data in the presentation slides that accompany our comments, as well as our operational statistics, both of which can be found on the Investor Relations section of our website.
Let me reference our safe harbor statement under the Private Securities Litigation Reform Act of 1995. Our comments on this call, as well as the supplemental information we are providing on the website, contain forward-looking statements within the meaning of the US securities laws, including guidance about expected future results, expectations regarding our ability to gain market share, and expected benefits from our investment and strategic plans, including expected benefits from recent acquisitions.
These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by these statements. Information about these risks is noted in our earnings press release and the Risk Factors in the MD&A sections of our latest Annual Report on Form 10-K filed with the SEC, as well as in our other SEC filings. These forward-looking statements are based on our current expectations and the Company assumes no obligation to update these statements. Investors are cautioned not to place undue reliance on these forward-looking statements.
In addition, during the course of this call, we may refer to certain adjusted financial results, which are non-GAAP measures, please refer to the GAAP versus non-GAAP reconciliations in our presentation, which contain the reconciliation of the adjusted financial measures to the most directly comparable GAAP measures.
I'll now turn the call over to Erik.
Thanks, John. Good morning, and thanks everybody for joining us today. To kick off this morning's call, I'll provide a brief overview of our fiscal third quarter results. I'll then offer specifics about the environment and our recent performance and I'll discuss our plan moving forward before turning it over to Rustom to review the details of the third quarter and provide our fourth quarter guidance. I'll then wrap up before we open up the line for questions.
Our fiscal third quarter results were disappointing. Sales were below our expectations for the quarter, while gross margin was at the low end of our guidance range. Although, operating expenses were below anticipated levels, our earnings per share were below the low end of our guidance range. We'll dissect the reasons in detail