Financial Data and Key Metrics Changes - In 2022, the company achieved total revenue of $1.17 billion, reflecting a 9.7% growth driven by organic growth contributing over $100 million [23][35] - Gross margin improved by 90 basis points to 36.1% for the full year, although Q4 gross margin was 36%, down 100 basis points year-over-year [23][58] - Operating income increased by 19.5% to over $105 million, with an operating margin of 9%, a 70 basis point improvement from 2021 [35] Business Line Data and Key Metrics Changes - The private brand offering represented approximately 50% of total sales for the year, indicating a focus on exclusive brands [41] - The heating and winter seasonal category was soft due to a mild winter, impacting demand [30][63] - Average daily sales in Q4 were down 2.2%, with revenue in Canada improving approximately 2.5% in local currency [29][57] Market Data and Key Metrics Changes - U.S. revenue decreased by 0.2% in Q4, while Canadian revenue showed a slight improvement [57] - Demand trends have been muted across categories and sales channels, continuing into 2023 [24][19] - The company noted that customers are being more guarded in their buying decisions due to a competitive pricing environment [58][19] Company Strategy and Development Direction - The company is focused on capturing market share through customer acquisition, retention, and expanding exclusive branded items [25] - A new marketing campaign aimed at operational efficiency has been launched, aligning with customer needs [37] - The company plans to invest in strategic areas such as pricing intelligence, productivity, and margin optimization [55] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the MRO market for 2023, anticipating better performance in the latter half of the year [12][13] - The company is confident in its ability to manage through current challenges and maintain its margin profile [42] - There is an expectation of variability in margins throughout the year as the company works through inventory with higher landed costs [42] Other Important Information - The company announced a quarterly dividend increase of 11.1% to $0.20 per share, marking the seventh consecutive year of dividend increases [44] - A reduction in force was implemented to right-size the cost structure, expected to reduce annualized costs by approximately $6 million [31] Q&A Session Summary Question: Can you provide details on Q4 sales by products or end market? - Management noted that price benefits waned in Q4, with small and medium-sized businesses appearing more cautious compared to large national accounts [50] Question: What is the outlook for the MRO market in 2023? - Management indicated a cautious tone but remains hopeful for better performance in the second half of the year, driven by sales initiatives and investments [12][13] Question: How should we think about inventory management? - The company does not have specific inventory targets but aims to normalize inventory levels as supply chain costs decrease [7]

Financial Data and Key Metrics Changes - Third quarter revenue reached nearly $300 million, growing 7.6% over the same quarter last year [6][17] - Gross margin increased modestly on a sequential basis to 35.7%, but was down from a record performance last year [6][18] - Gross profit for the quarter was $106.6 million, up 4.5% from last year [18] - Selling, distribution, and administrative spending was $79.1 million, or 26.5% of net sales, an increase of 80 basis points from last year [22] - Operating income from continuing operations was $27.5 million, with an operating margin of 9.2% [23] - The company maintained a strong balance sheet with a current ratio of 1.9:1, $20 million in cash, and $10 million of debt [25] Business Line Data and Key Metrics Changes - U.S. revenue increased over 8%, while revenue in Canada improved approximately 4% in local currency [17] - The private brand offering increased as a percentage of total sales, contributing to margin maintenance despite price pressures [17][45] Market Data and Key Metrics Changes - The demand environment softened as customers adopted a more guarded approach to buying decisions [18][42] - The company noted that while ocean freight costs have moderated, they remain elevated compared to historical levels [20] Company Strategy and Development Direction - The company is investing in growth and productivity initiatives, including sales, marketing, digital transformation, and pricing analytics [8][14] - Expansion of customer relationships in hospitality and healthcare markets is a key growth initiative [9] - The launch of a new digital e-commerce site aims to enhance customer experience and drive sales [13][46] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the current outlook but emphasized ongoing investments to adapt to changing market conditions [8][14] - There is a focus on operational excellence and maintaining a customer-centric approach [15] - Management believes that long-term margin gains are achievable through a higher balance of private brand sales and optimized operations [21] Other Important Information - The company declared a quarterly dividend of $0.18 per share and anticipates continuing regular dividends in the future [26] - Capital expenditures for 2022 are expected to be in the range of $6 million to $7 million, including the new Canada distribution center [24] Q&A Session Summary Question: Can you provide additional color on the monthly cadence and product category performance? - Management noted a softening demand environment through Q3, with strong growth in core lines and private brand assortment [30][31] Question: What drove the year-over-year gross margin decline? - The decline was attributed to differential FIFO inventory levels last year and the impact of promotional pricing on excess stock [32][34] Question: Which initiatives will be most impactful in adapting to the current market? - Key initiatives include pricing analytics and maintaining close customer relationships through the sales team [35][36] Question: What are the findings from customer survey data? - There is a global caution around market conditions, but improvements in supply chain satisfaction have been noted [39] Question: Was there a significant drop in demand in August and September? - Management confirmed a guarded approach from customers, with a focus on spending through the year [42] Question: Can you quantify the growth rates between private label sales and other products? - Private brand sales are the fastest-growing segment, contributing significantly to margin maintenance [44][45] Question: What are the expectations for the new e-commerce site? - The site has received positive feedback, and enhancements are ongoing to improve user experience [46][47] Question: Have discussions with potential acquisition targets intensified? - Management continues to scan the market for acquisition opportunities but did not comment on specific valuations [49]

Financial Performance - Consolidated sales increased 7.6% to $298.5 million for Q3 2022 compared to $277.4 million last year[59] - Consolidated gross margin declined to 35.7% for Q3 2022 compared to 36.8% last year[68] - Consolidated operating income from continuing operations decreased 10.1% to $27.5 million for Q3 2022 compared to $30.6 million last year[68] - Net income per diluted share from continuing operations decreased 13.1% to $0.53 for Q3 2022 compared to $0.61 last year[68] - Consolidated sales increased 13.0% to $905.6 million for the nine months ended September 30, 2022 compared to $801.1 million last year[68] - Consolidated gross margin increased to 36.2% for the nine months ended September 30, 2022 compared to 34.6% last year[68] - Consolidated operating income from continuing operations increased 41.4% to $87.5 million for the nine months ended September 30, 2022 compared to $61.9 million last year[68] - Net income per diluted share from continuing operations increased 29.0% to $1.69 for the nine months ended September 30, 2022 compared to $1.31 last year[68] Market Conditions - The demand environment softened as customers adopted a more guarded approach to buying decisions due to broader market uncertainty[59] Investments and Costs - Investments in the expansion of the Canada distribution network included approximately $0.8 million in ramp-up costs incurred in Q3 2022[59] - Selling, distribution, and administrative (SD&A) costs increased by 10.8% to $79.1 million for the third quarter, reflecting investments in the Canadian distribution network and e-commerce enhancements[78] Cash Flow and Liquidity - Cash and cash equivalents increased by $4.6 million to $20.0 million as of September 30, 2022, compared to $15.4 million at the end of 2021[86] - Working capital increased by $44.7 million to $166.2 million, primarily due to increased inventory and accounts receivable[88] - Net cash provided by operating activities from continuing operations was $23.5 million in 2022, down from $39.3 million in 2021, primarily due to a $48.6 million cash usage in working capital accounts compared to $14.7 million in 2021[90] - Cash generated from net income adjusted by other non-cash items was $72.1 million in 2022, an increase from $54.0 million in 2021, attributed to higher net income for the nine months ended September 30, 2022[90] - Net cash used in investing activities totaled $4.9 million in 2022, up from $3.4 million in 2021, mainly for warehouse machinery and equipment related to the new Canadian distribution center[91] - Net cash used in financing activities was $13.6 million in 2022, primarily due to a quarterly dividend of $0.18 per share totaling approximately $20.8 million, partially offset by $5.5 million from short-term borrowings[92] - The company maintains a $75.0 million secured revolving credit facility, with total outstanding borrowings of $10.0 million and total excess availability of $60.8 million as of September 30, 2022[93] - The company had approximately $76 million of liquidity (cash and undrawn line of credit) in the U.S. as of September 30, 2022[98] Obligations and Expenditures - Obligations under non-cancelable operating leases totaled approximately $101.5 million as of September 30, 2022, with remaining cash expenditures anticipated at $4.1 million for 2022[99] - The company had $1.5 million of standby letters of credit outstanding as of September 30, 2022[100] - Anticipated capital expenditures for 2022 are in the range of $6.0 to $7.0 million, with no contractual commitments at this time[96] Interest and Tax - Interest and other expense, net from continuing operations rose to $0.6 million for the third quarter of 2022, compared to $0.2 million in the same period of 2021[82] - The effective income tax rate increased to 24.5% for the third quarter of 2022, compared to 23.7% in the same period of 2021[74] - The company does not expect a material effect on financial position from a hypothetical one percentage point change in average interest rates, given $10.0 million outstanding under variable rate credit facilities[103]

2Q 2022 GLORAL 2000 | 2200 NAMERICA 0 0 TM SLC t FRIA 1 Cautionary Statement Regarding Forward-Looking Statements | This presentation contains forward-looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission ...

Global Industrial Company (NYSE:GIC) Q2 2022 Earnings Conference Call August 2, 2022 5:00 PM ET Company Participants Mike Smargiassi - The Plunkett Group Barry Litwin - CEO Tex Clark - SVP and CFO Conference Call Participants Anthony Lebiedzinski - Sidoti & Company Ryan Merkel - William Blair Operator Good afternoon, ladies and gentlemen, and welcome to the Global Industrial's Second Quarter 2022 Earnings Call. At this time, I would like to turn the conference over to Mike Smargiassi of the Plunkett Group. ...

Financial Performance - Consolidated sales increased 16.8% to $318.5 million for Q2 2022 compared to $272.6 million last year[58] - Consolidated gross margin declined to 35.5% for Q2 2022 compared to 36.0% last year[66] - Consolidated operating income from continuing operations increased 23.5% to $30.5 million for Q2 2022 compared to $24.7 million last year[66] - Net income per diluted share from continuing operations increased 7.3% to $0.59 for Q2 2022 compared to $0.55 last year[66] - Consolidated sales increased 15.9% to $607.1 million for the six months ended June 30, 2022 compared to $523.7 million last year[66] - Consolidated gross margin increased to 36.4% for the six months ended June 30, 2022 compared to 33.5% last year[66] - Consolidated operating income from continuing operations increased 91.7% to $60.0 million for the six months ended June 30, 2022 compared to $31.3 million last year[66] - Net income per diluted share from continuing operations increased 65.7% to $1.16 for the six months ended June 30, 2022 compared to $0.70 last year[66] - Consolidated net sales increased by 16.8% to $318.5 million for the three months ended June 30, 2022, and by 15.9% to $607.1 million for the six months ended June 30, 2022, compared to the same periods in 2021[73] - Consolidated gross profit rose by 15.3% to $113.0 million for the second quarter and by 26.0% to $220.8 million for the first half of 2022[73] - Operating income from continuing operations increased by 23.5% to $30.5 million for the three months and by 91.7% to $60.0 million for the six months ended June 30, 2022[73] - Net income from continuing operations was $22.6 million for the second quarter, a 7.1% increase, and $44.4 million for the first half, a 66.2% increase compared to 2021[73] - Average daily sales increased by 16.9% during the second quarter and by 15.9% for the six months ended June 30, 2022[73] Cost and Expenses - Selling, distribution, and administrative (SD&A) costs as a percentage of net sales decreased by 100 basis points for both the three and six months ended June 30, 2022, compared to the same periods in 2021[77] - The effective income tax rate for the three months ended June 30, 2022, was 25.2%, an increase of 11.0 percentage points compared to the same period in 2021[73] Cash Flow and Liquidity - Cash and cash equivalents increased by $8.1 million to $23.5 million as of June 30, 2022, compared to $15.4 million at the end of 2021[84] - Working capital increased by $31.2 million, primarily due to increased inventory balances and accounts receivable[86] - Net cash used in operating activities from continuing operations was $2.1 million in 2022, a decrease from $20.5 million provided in 2021, primarily due to a $51.4 million cash usage in working capital compared to $7.9 million in 2021[87] - Cash generated from net income adjusted by other non-cash items provided $49.3 million in 2022, up from $28.4 million in 2021, attributed to higher net income for the six months ended June 30, 2022[87] - Net cash used in investing activities totaled $2.1 million in 2022, consistent with 2021, primarily for warehouse machinery and equipment related to the new Canadian distribution center[88] - Net cash provided by financing activities was $12.5 million in 2022, mainly from short-term borrowings of $25.5 million, with dividends paid totaling approximately $13.9 million[89][90] - The company maintains a $75.0 million secured revolving credit facility, with total outstanding borrowings of $30.0 million and total excess availability of $41.3 million as of June 30, 2022[91] - As of June 30, 2022, the company had over $59 million in liquidity (cash and undrawn line of credit) in the U.S.[96] Capital Expenditures and Obligations - Anticipated capital expenditures for 2022 are in the range of $7.0 to $9.0 million, with no contractual commitments at this time[94] - The company is obligated for approximately $107.8 million under non-cancelable operating leases, with remaining cash expenditures anticipated at $7.8 million for 2022[97] Strategic Initiatives - The company continues to pursue acquisitions and strategic transactions to expand or complement its business[51] - The company is experiencing strong customer demand across all product categories, particularly in managed sales channels[58] Risk Management - The company had no outstanding foreign currency options or forward exchange contracts as of June 30, 2022, to limit currency fluctuations[100] - A hypothetical one percentage point change in average interest rates is not expected to materially affect the company's financial position or cash flows[101]

Financial Data and Key Metrics Changes - The company reported record revenue of $288 million for Q1 2022, an increase of nearly 15% compared to the prior year [6][16] - Gross margin reached a record 37.4%, improving by 660 basis points year-over-year [16][17] - Operating income was over $29 million, with an operating margin of 10.2%, marking the third consecutive quarter of double-digit operating margins [6][20] Business Line Data and Key Metrics Changes - U.S. revenue increased over 14%, while Canadian revenue improved nearly 22% in local currency [16] - The company is focusing on enhancing service and customer experience through investments in sales, marketing, and digital technology [8][9] Market Data and Key Metrics Changes - The company has seen strong sales trends throughout the quarter, with open orders increasing modestly due to customer demand [16] - Inventory levels increased by approximately 50% year-over-year, attributed to both price increases and the need for higher safety stock levels due to longer lead times [28][30] Company Strategy and Development Direction - The company is committed to digital leadership, with plans to launch a new digital e-commerce platform to enhance customer engagement [9] - The ACE strategy is being implemented to strengthen customer-focused culture and drive top-line growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust demand in the market and the company's positioning for long-term growth [14][27] - The company is closely monitoring supply chain challenges, particularly related to the impact of lockdowns in China, but has not seen material impacts so far [41] Other Important Information - The company announced a quarterly dividend of $0.18 per share and anticipates continuing regular dividends in the future [22] - A new state-of-the-art distribution center in the Greater Toronto area is set to begin operations in the fall to support growth in Canada [11][12] Q&A Session Summary Question: Was any of the first quarter sales growth a catch-up from constrained periods last year? - Management indicated that current sales demand is driven by overall business demand and expansion of the sales organization, with open orders remaining stable [25][26] Question: Is robust demand continuing into April and early May? - Management noted that they continue to see robust demand in the market, expressing confidence in future performance [27] Question: Can you break down the inventory balance increase? - The increase in inventory is attributed to higher prices and the need for safety stock due to longer lead times, with a focus on ensuring product availability for customers [28][30] Question: What drove the gross margin performance in the quarter? - The gross margin improvement was primarily driven by normalized freight margins, increased sales of higher-margin private brands, and effective pricing strategies [32][34] Question: Will SG&A expenses continue to leverage in the second quarter and beyond? - Management expects to continue leveraging SG&A expenses while investing in growth opportunities, particularly in the Canadian market [36][37] Question: How has the company been impacted by lockdowns in China? - Management reported no material impact from the lockdowns but is closely monitoring the situation [41] Question: Is the company considering acquisitions? - Management is open to strategic acquisitions that can drive category growth while focusing on organic growth strategies [42][43]

Global Industrial Company (NYSE:GIC) Q4 2021 Earnings Conference Call February 15, 2021 5:00 PM ET Company Participants Barry Litwin – Chief Executive Officer Tex Clark – Senior Vice President and Chief Financial Officer Mike Smargiassi – The Plunkett Group Conference Call Participants Anthony Lebiedzinski – Sidoti & Company Operator Good afternoon, ladies and gentlemen, and welcome to Global Industrial 's Fourth Quarter 2021 Earnings Call. All participants will be in a listen-only mode. [Operator Instructi ...

Global Industrial Company (NYSE:GIC) Q3 2021 Earnings Conference Call November 2, 2021 5:00 PM ET Company Participants Mike Smargiassi – Investor Relations Barry Litwin – Chief Executive Officer Tex Clark – Senior Vice President and Chief Financial Officer Conference Call Participants Ryan Merkel – William Blair Operator Good afternoon, everyone and welcome to Global Industrial’s Third Quarter 2021 Earnings Conference Call. [Operator Instructions] We also note today’s event is being recorded. At this time, ...

Systemax, Inc. (SYX) Q1 2021 Earnings Conference Call May 4, 2021 5:00 PM ET Company Participants Mike Smargiassi - IR Barry Litwin - CEO Tex Clark - CFO Conference Call Participants Ryan Merkel - William Blair Anthony Lebiedzinski - Sidoti & Company Operator Good afternoon, ladies and gentlemen, and welcome to Systemax Inc. First Quarter 2021 Earnings Call. At this time, I would like to turn the call over to Mike Smargiassi of the Plunkett Group. Please go ahead. Mike Smargiassi Thank you, and welcome to ...