PRELIMINARY FISCAL 2024 Q3 RESULTS Net sales of approximately $978-$980 million down 7.3%-7.1% YoY and includes a roughly 300 basis point headwind from non-repeating Public Sector orders in the prior year Average daily sales up approximately 3% sequentially compared to the fiscal second quarter, which had one less selling day GAAP Earnings Per Share (EPS) expected to be in the range of $1.26 - $1.28 Adjusted EPS* expected to be in the range of $1.32 - $1.34 Company to discuss preliminary financial results and drivers of updated outlook on June 14, 2024 at 8:30AM EDT Company to release final fiscal third quarter 2024 financial results and conduct conference call on July 2, 2024 at 8:30AM EDT * Represents a non-GAAP financial measure. An explanation and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure are presented in the schedules accompanying this press release. MELVILLE, N.Y. and DAVIDSON, N.C., June 13, 2024 /PRNewswire/ -- MSC INDUSTRIAL SUPPLY CO. (NYSE:MSM), "MSC," "MSC Industrial" or the "Company," a leading North American distributor of a broad range of metalworking and maintenance, repair and operations (MRO) products and services, today provided preliminary unaudited financial results for its fiscal third quarter ended June 1, 2024 and updated its outlook for the full fiscal year 2024. The third quarter results announced today are preliminary and subject to change based on the completion of the Company's quarter-end review process. Erik Gershwind, President and Chief Executive Officer, said, "Today, we announced softer than expected preliminary third quarter results and are lowering our full year 2024 outlook, primarily driven by two factors. First, while average daily sales improved sequentially, ongoing heavy manufacturing softness and a slower than anticipated ramp in our Core Customer resulted in a lower sequential revenue improvement than anticipated. Second, gross margins were approximately 60 basis points below our expectations primarily due to, in roughly equal proportion, increased product and customer mix headwinds and unexpected dilution from our web price realignment. The latter tracks back to complexities that were not uncovered during the pilot phase of the web price alignment and the time it took to identify the cause of the unexpected dilution."  Gershwind continued, "We are taking decisive actions in response to these results. We are maintaining focus on the areas of the business that are delivering, such as In Plant, Vending and other high touch solutions, making changes to accelerate Core Customer growth initiatives, especially the website rollout, and have taken corrective actions on the web price realignment to improve gross margin trends. We are determined to execute the next chapter of our Mission Critical journey and achieve our long-term goals of growing 400 basis points or more above the Industrial Production Index and achieving adjusted operating margin in the mid-teens."  Fiscal 2024 Full Year Financial Outlook Current Prior ADS Growth (YoY) (4.7)% - (4.3)% 0% - 5% Adjusted Operating Margin1 10.5% - 10.7% 12.0% - 12.8% Depreciation and Amortization Expense ~$80M ~$85M Interest and Other Expense ~$45M $40M - $50M