MSC Industrial Direct Co. Inc. (NYSE:MSM) Q1 2020 Earnings Conference Call - Final Transcript

Jan 08, 2020 • 08:30 am ET


MSC Industrial Direct Co. Inc. (NYSE:MSM) Q1 2020 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the MSC Industrial Supply 2020 First Quarter Conference Call. [Operator Instructions]

I would now like to turn the conference over to John Chironna, Vice President of Investor Relations and Treasurer. Please go ahead.

John Chironna

Thank you, Melisa, and good morning everyone. I'd like to wish everyone a Happy New Year and welcome you to our fiscal 2020 first quarter earnings call. With me are Erik Gershwind, our Chief Executive Officer; Rustom Jilla, our Chief Financial Officer; and Greg Clark, our Vice President of Finance and Corporate Controller. As you all know, Greg will become our Interim CFO when Rustom leaves the Company at the end of the next week.

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 U.S. 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 results from 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 and 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 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.

Erik Gershwind

Thank you, John and good morning everybody. Thanks for joining us today. I'd also like to reiterate a happy and healthy New Year to everybody. As our fiscal 2020 is now in full swing. I'll begin this morning's call with some strategic context before getting into the usual specifics of the quarter. Over the past several years, we've repositioned MSC from our historic role as a spot buy-only supplier to a mission critical partner on the plant floors of North American manufacturing and industry. We undertook this journey, primarily because we saw an opportunity to partner more closely with our customers, who have been calling out for help in running their businesses better. And MSC is uniquely positioned to fill that void.

We also foresaw increasing pressure coming over time on our legacy