Hot Growth Special Report 2006 >



MSC Industrial Direct (MSM)

Founded in 1941, MSC distributes drills, saws, hinges, cleaners, and other products to industrial manufacturers. Sexy? Not really. But investors are smiling. MSC?s shared have gone up 50% in price to more than $40 since the spring of 2005. That's no surprise, judging from the company's performance. MSC's profits have risen an average 46.5% a year over the last three years, on average sales growth of 11.6%. The company, which chalked up $1.2 billion in sales over the past 12 months, is investing in future growth, having just signed an agreement to acquire J&L Industrial Supply for $349.5 million. In MSC's most recent quarter, net income rose 21.6%, to $33 million, on sales that grew 12.7%, to $305.9 million.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

11.6 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

46.5 %

Return on Inv. Capital (3-yr.)

14.1 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

20.8 %

P/E Ratio


No. of Employees


Industry Trading Companies & Distributors


Location Melville, N.Y.
Phone 516 812-2000
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

MSC Industrial Direct engages in the direct marketing of various industrial products in the U.S. The company distributes various industrial products for its customers' maintenance, repair, and operations, as well as for supplies requirements. It provides approximately 500,000 stock-keeping units that include cutting tools, measuring instruments, tooling components, fasteners, flat stock, raw materials, abrasives, and machinery hand and power tools; and janitorial, plumbing, material handling, power transmission, and electrical supplies; and other products. MSC Industrial Direct markets its products to small, medium, and large companies in durable and nondurable goods manufacturing, education, government, and health-care sectors. The company was founded in 1941 and has its headquarters in Melville, N.Y.

Data provided by Capital IQ
David Sandler

David Sandler, NA

President and Chief Executive Officer

Total Compensation*

$ 1,160,699

Total Options Value*

$ 4,897,500

* Fiscal Year 2005

Executive Bio

David K. Sandler has been President and Chief Executive Officer since November 9, 2005. Sandler previously served as the Company's President and Chief Operating Officer. He succeeded Mitchell Jacobson, who remains with MSC as Chairman of the Board, continuing to oversee the Company's strategic direction. As MSC's Chief Operating Officer since 2000, Sandler had been responsible for the Company's business operations. Sandler joined MSC in 1989 as a result of the Company's acquisition of Dancorp Inc., a New England-based industrial supply distributor, where he had previously served as President and Chief Executive Officer. Since joining the Company, Sandler held a variety of positions with responsibility for all aspects of MSC's business, including information systems, product management, purchasing, corporate development, human resources, and finance. He has served as a member of the Company's Board of Directors since 1999.

Management Team

Key Executives

Mitchell Jacobson; Charles A. Boehlke; Shelley Boxer; James Schroeder; David K. Sandler; Thomas Cox; Thomas Eccleston

Board Directors

Mitchell Jacobson; Charles A. Boehlke; David K. Sandler; Roger Fradin; Denis F. Kelly; Raymond B. Langton; Philip R. Peller

Executive Data provided by Capital IQ