Information about these risks is noted in the earnings press release and the risk factors in the MD&A sections of the Company's latest Annual Report on Form 10-K filed with the SEC as well as in the Company's other filings of the SEC. These forward-looking statements are based on the Company's 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.I would now like to introduce MSC Industrial Direct's Chief Executive Officer, David Sandler. David, please go ahead. David Sandler Thanks, Alex. Good morning, everyone. Thanks for joining us today. With me are our President and Chief Operating Officer, Erik Gershwind; Jeff Kaczka, our Executive Vice President and Chief Financial Officer; and Shelley Boxer, Vice President, Finance and Accounting. I'll be providing some perspective on our performance and results for Q2, as well as guidance for Q3. Erik will continue to build upon our last call by describing our growth strategy in more detail; he’ll provide color on our vending program progress and will review the customer landscape. Jeff will provide details on Q2 financial performance and Q3 guidance. Let me start by saying that I am thrilled with the progress we are making with our growth initiatives and the exciting outlook for the future. With each passing quarter it becomes increasingly clear to us that the industry consolidation that we foresaw coming almost four years ago is entering the next phase. Customers are demanding greater levels of supply chain solutions as they recognize that need in order for their business to flourish in today's fearfully competitive environment. There is no doubt that the industrial marketplace is rewarding the narrowing field of distributors who are capable of consolidating customer spend across multiple plant locations and who can provide the technology and technical expertise's required to improve productivity and reduced their total supply chain costs.
During the economic turmoil of '08, we outlined our plan to heavily invest to take disproportionate market share and that by capitalizing on the land grab opportunity we would outperform the market by a significant margin that is exactly what is being seen in our results. We will continue to position MSC to win and to win big in this highly fragmented market.As Erik will describe in more detail the drivers of our success will continue to be our organic growth programs in conjunction with the type of acquisitions you've seen for us over the past year or so. We believe that is the most effective way to capitalize on the enormous opportunity at this unique point in time. Consequently we placed a priority on locking in share gains and penetration of customers. While that has created some near-term gross margin headwinds over the longer term we expect these headwinds to abate as these initiatives early successes become more mature. The time is opportune for us to continue building on our strong momentum with these initiatives as we increase our lead in metalworking and grow our business in adjacent product categories. At this point I would like to provide some guidance for Q3. Currently we expect revenues to be between $610 million and $622 million and fully diluted earnings per share to be between $1.08 and $1.12. Thanks everyone. I'll now turn the mike over to Erik. Erik Gershwind Thanks, David. We are very pleased with the execution of our growth plan. On the last earnings call, I outlined our longer term strategies starting with the big picture, our vision to be a $10 billion company. Today, I'll provide the next level of granularity to our growth story. We view it as a journey and there are several benchmarks or milestones that we surpassed to reach our ultimate goal. Today, I'll provide more information about the next milestone.
Our plan is to double the size of our business over the next five years reaching approximately $4 billion in sales in fiscal 2016. That implies a compound annual growth rate of approximately 15%. It compares to historical CAGR during our life as a public company of roughly 14% and it also compares very favorably with industry growth that's roughly the rate of GDP over extended periods of time.Read the rest of this transcript for free on seekingalpha.com