Financial Performance - Consolidated sales increased 6.8% to $347.8 million compared to $325.8 million last year[5] - Year-to-date sales increased 11.9% to $671.2 million compared to $599.6 million last year[6] - Average daily sales increased by 1.8% on an organic basis in the second quarter[7] - Operating income from continuing operations decreased 9.3% to $26.4 million compared to $29.1 million last year[5] - Operating income for the first six months decreased 6.6% to $43.8 million compared to $46.9 million last year[6] - Net income from continuing operations for the six months ended June 30, 2024, was $33.3 million, a decrease of 4.3% compared to $34.8 million for the same period in 2023[15] - Net income per diluted share from continuing operations decreased 7.1% to $0.52 compared to $0.56 last year[5] Cash Flow and Investments - Net cash provided by operating activities from continuing operations decreased to $25.0 million for the six months ended June 30, 2024, down from $65.5 million in the prior year, a decline of 61.8%[15] - The company reported a net cash used in investing activities of $2.2 million for the six months ended June 30, 2024, compared to $73.7 million in the prior year, indicating a significant reduction in investment outflows[15] Assets and Liabilities - Total assets rose to $542.5 million as of June 30, 2024, compared to $513.4 million at the end of 2023, marking an increase of 5.9%[13] - Total current assets increased to $366.9 million as of June 30, 2024, up from $329.8 million on December 31, 2023, representing an increase of 11.9%[13] - Total current liabilities increased to $195.8 million as of June 30, 2024, up from $174.2 million on December 31, 2023, reflecting a rise of 12.8%[13] - Cash and cash equivalents at the end of the period were $38.8 million, a decrease from $44.9 million at the end of 2023, representing a decline of 13.6%[15] Shareholder Returns - The Board declared a cash dividend of $0.25 per share, payable on August 19, 2024[7] - Dividends paid increased to $19.2 million in the first half of 2024, compared to $15.3 million in the same period of 2023, an increase of 25.5%[15] Working Capital - The company had total working capital of $171.1 million and cash and cash equivalents of $38.8 million as of June 30, 2024[7] - The company experienced a change in working capital of $(14.5) million for the six months ended June 30, 2024, compared to a positive change of $25.4 million in the prior year[15] Strategic Initiatives - The company continues to invest in key growth initiatives to strengthen its competitive position and enhance revenue growth[7] - Gross margin improved to 35.2% from 34.7% in the prior year, with an adjusted gross margin of 36.8% excluding Indoff[5] - Shareholders' equity rose to $270.4 million as of June 30, 2024, up from $255.2 million at the end of 2023, reflecting a growth of 5.8%[13]

Global Industrial (GIC) came out with quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -10.53%. A quarter ago, it was expected that this technology products marketer would post earnings of $0.40 per share when it actually produced earnings of $0.40, delivering no surprise.Over the last four quarters ...

For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Address of principal executive offices, including zip code) Registrant's telephone number, including area code: (516) 608-7000 Securities registered pursuant to Sect ...

Exhibit 99.1 GLOBAL INDUSTRIAL COMPANY REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS Sales of $323.4 Million, Increase 18.1% Operating Income of $17.4 Million; Operating Margin 5.4% Board Declares $0.25 Dividend PORT WASHINGTON, NY, April 30, 2024 – Global Industrial Company (NYSE: GIC) today announced financial results for the first quarter ended March 31, 2024. | Performance Summary* | | | | | | --- | --- | --- | --- | --- | | (U.S. dollars in millions, except per share data) | | | | | | Highlights | | Qua ...

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13792 Global Industrial Company (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization ...

Global Industrial Company (GIC) reported earnings of 40 cents per share in fourth-quarter 2023, in line with the Zacks Consensus Estimate. The bottom line increased 14% from the year-ago quarter’s earnings of 35 cents per share. Contribution from the Indoff acquisition, improved volumes and strength in the e-commerce channel drove the improvement in the quarter.The company reported net sales of $320 million in the reported quarter, up 23% from the year-ago quarter’s levels. The top line surpassed the Zacks ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $320.1 million, an increase of 22.9% year-over-year, with organic revenue up 5.1% year-over-year, marking the largest growth rate of the year [11][27] - Gross profit for the quarter was $108.2 million, up 15.4% from last year, with a gross margin of 33.8%, down 220 basis points from the previous year due to the lower margin profile of the Indoff acquisition [12][11] - The company ended the year with a modest increase in cash position, reporting $34.4 million in cash and no debt, with a current ratio of 1.9:1 [15][11] Business Line Data and Key Metrics Changes - Organic U.S. revenue increased by 5%, while organic revenue in Canada rose by 7% in local currency, with e-commerce representing over 60% of total annual order volume [33][11] - Private brand demand accounted for approximately 50% of total sales in 2023, indicating strong performance in this segment [33][11] Market Data and Key Metrics Changes - The market environment remains cautious, with modest organic growth observed at the start of the year, and industry-wide MRO growth in low single digits [10][19] - The company has faced double-digit increases in ocean freight costs due to shipping disruptions, which may impact gross margins in future quarters [35][11] Company Strategy and Development Direction - The company aims to enhance its customer-centric strategy by improving the buying experience and investing in sales, marketing, and operational efficiencies [28][31] - There is a renewed focus on quality and value, with initiatives to improve product sourcing, delivery, and customer service [30][11] - The company plans to leverage the Indoff acquisition to expand service offerings and enhance project management capabilities [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the market, noting that while there are pricing pressures, they believe there are opportunities for growth in a fragmented market [19][10] - The company anticipates a more consistent and normalized tax rate of around 25% for 2024 [40][11] Other Important Information - The company announced a 25% increase in the quarterly recurring dividend to $0.25 per share, marking the eighth consecutive annual increase [6][11] - Capital expenditures for 2024 are expected to be in the range of $6 million to $8 million, primarily for maintenance-related investments [36][11] Q&A Session Summary Question: Can you comment on the cadence of your sales in the fourth quarter and first quarter trends? - Management noted that they were pleased with the 5.1% organic growth in Q4 and did not experience significant disruption from winter weather, indicating a relatively good season for winter products [18][11] Question: What are the expectations for gross margins in 2024 with the full-year impact of Indoff? - Management indicated that while Indoff has a lower gross margin profile, they are working to improve its margins over time and maintain a focus on overall gross margin [56][11] Question: Is there a target for private brand penetration beyond the current 50%? - Management believes there is upside potential for private brand penetration and will continue to refine their product assortment to enhance this segment [44][11] Question: How much of your shipping is affected by the disruptions in the Red Sea? - Management clarified that very little of their shipping comes through that channel, but overall industry rates have increased due to disruptions, which they are monitoring closely [46][11]

Global Industrial (GIC) came out with quarterly earnings of $0.40 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this technology products marketer would post earnings of $0.51 per share when it actually produced earnings of $0.54, delivering a surprise of 5.88%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Global Ind ...

Exhibit 99.1 GLOBAL INDUSTRIAL REPORTS FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS Fourth Quarter Sales of $320.1 Million, Up 22.9%; Operating Income of $21.4 Million and Operating Margin of 6.7% Full Year Sales of $1.27 Billion, Up 9.3%; Operating Income of $96.5 Million and Operating Margin of 7.6% Board Increases Dividend 25%; Declares $0.25 Dividend PORT WASHINGTON, NY, February 29, 2024 – Global Industrial Company (NYSE: GIC) today announced financial results for the fourth quarter ended Decemb ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Global Industrial Company's unaudited condensed consolidated financial statements and detailed notes on key accounting areas [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets | Metric | Sep 30, 2023 (Millions $) | Dec 31, 2022 (Millions $) | | :-------------------------------- | :------------------------ | :------------------------ | | **ASSETS:** | | | | Cash and cash equivalents | 34.3 | 28.5 | | Accounts receivable, net | 136.8 | 108.0 | | Inventories | 153.8 | 179.4 | | Total current assets | 337.9 | 325.7 | | Goodwill and intangible assets | 70.7 | 6.6 | | Total assets | 527.8 | 455.2 | | **LIABILITIES AND SHAREHOLDERS' EQUITY:** | | | | Accounts payable | 125.8 | 96.9 | | Accrued expenses and other current liabilities | 55.3 | 43.2 | | Total current liabilities | 195.0 | 153.1 | | Total liabilities | 281.6 | 244.8 | | Total shareholders' equity | 246.2 | 210.4 | | Total liabilities and shareholders' equity | 527.8 | 455.2 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations | Metric (Millions $) | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :-------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net sales | 354.6 | 298.5 | 954.2 | 905.6 | | Gross profit | 116.3 | 106.6 | 327.6 | 327.4 | | Operating income from continuing operations | 28.2 | 27.5 | 75.1 | 87.5 | | Net income from continuing operations | 20.7 | 20.3 | 55.5 | 64.7 | | Net income | 20.7 | 20.2 | 55.4 | 65.0 | | Net income per common share (Basic) | 0.54 | 0.53 | 1.45 | 1.71 | | Net income per common share (Diluted) | 0.54 | 0.53 | 1.44 | 1.70 | | Dividends declared | 0.20 | 0.18 | 0.60 | 0.54 | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income | Metric (Millions $) | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :-------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income | 20.7 | 20.2 | 55.4 | 65.0 | | Foreign currency translation | (0.3) | (0.8) | 0.0 | (1.1) | | Total comprehensive income | 20.4 | 19.4 | 55.4 | 63.9 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows | Metric (Millions $) | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | 103.7 | 23.4 | | Net cash used in investing activities | (75.6) | (4.9) | | Net cash used in financing activities | (22.3) | (13.6) | | Net increase in cash | 5.8 | 4.6 | | Cash and cash equivalents – end of period | 34.3 | 20.0 | [Condensed Consolidated Statement of Shareholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Shareholders'%20Equity) Condensed Consolidated Statement of Shareholders' Equity | Metric (Millions $) | Balances, Jan 1, 2023 | Balances, Sep 30, 2023 | | :-------------------------------- | :-------------------- | :--------------------- | | Common Stock Amount | 0.4 | 0.4 | | Additional Paid-in Capital | 201.2 | 203.9 | | Treasury Stock | (19.5) | (18.8) | | Retained Earnings | 25.9 | 58.3 | | Accumulated Other Comprehensive Income | 2.4 | 2.4 | | Total Equity | 210.4 | 246.2 | - **Total shareholders' equity** increased from **$210.4 million** at January 1, 2023, to **$246.2 million** at September 30, 2023, driven by **net income** of **$55.4 million** and stock-based compensation, partially offset by **dividends** paid[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Basis of Presentation](index=11&type=section&id=1.%20Basis%20of%20Presentation) - **Global Industrial Company** is a value-added industrial distributor of over a **million** industrial and MRO products in North America, operating through e-commerce websites and relationship marketers[19](index=19&type=chunk) - On May 19, 2023, the Company acquired **100%** of Indoff LLC for approximately **$72.6 million** in cash, expanding its presence in the North American MRO market[20](index=20&type=chunk) - The financial statements are unaudited and prepared in accordance with GAAP for interim financial information, with certain disclosures condensed or omitted[18](index=18&type=chunk) [2. Acquisition](index=12&type=section&id=2.%20Acquisition) - The acquisition of Indoff LLC on May 19, 2023, for **$72.6 million** in cash, was accounted for as a business combination, with a preliminary fair value allocation resulting in **$35.1 million** in **goodwill**[27](index=27&type=chunk)[29](index=29&type=chunk) Indoff LLC Financial Contribution (Post-Acquisition) | Period | Revenue (Millions $) | Net Income (Millions $) | | :-------------------- | :------------------- | :-------------------- | | Three Months Ended Sep 30, 2023 | 46.4 | 1.9 | | Nine Months Ended Sep 30, 2023 | 70.3 | 2.7 | Goodwill and Intangible Assets (Millions $) | Asset Type | Sep 30, 2023 | Dec 31, 2022 | | :---------------------- | :----------- | :----------- | | Goodwill | 40.6 | 5.5 | | Definite-lived intangibles | 29.4 | 0.4 | | Indefinite-lived intangibles | 0.7 | 0.7 | | **Total** | **70.7** | **6.6** | - The acquisition resulted in **$30.3 million** of acquired **intangible assets**, primarily customer lists (**$24.1 million**) and trademarks (**$6.2 million**), which will be amortized over ten years[29](index=29&type=chunk)[33](index=33&type=chunk) [3. Revenue](index=15&type=section&id=3.%20Revenue) Net Sales by Geography (Millions $) | Geography | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :---------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | United States | 337.2 | 282.0 | 902.5 | 849.0 | | Canada | 17.4 | 16.5 | 51.7 | 56.6 | | **Consolidated** | **354.6** | **298.5** | **954.2** | **905.6** | - The Company disaggregates **revenue** by geography (United States and Canada) as it best reflects the impact of economic and industry factors on **revenue** and cash flows[34](index=34&type=chunk) [4. Credit Losses](index=16&type=section&id=4.%20Credit%20Losses) - The Company estimates **allowances for credit losses** on trade **accounts receivable** based on customer financial condition, historical loss experience, and economic forecasts[36](index=36&type=chunk) Rollforward of Allowances for Credit Losses (Millions $) | Metric | Sep 30, 2023 | | :-------------------------- | :----------- | | Balance at beginning of period | 2.3 | | Current period provision | 2.5 | | Write-offs | (2.0) | | Balance at end of period | 2.8 | [5. Leases](index=16&type=section&id=5.%20Leases) - The Company holds **operating** and finance **leases** for facilities and equipment, with **operating lease costs** of **$4.3 million** for Q3 2023 and **$12.7 million** for the nine months ended September 30, 2023[39](index=39&type=chunk)[41](index=41&type=chunk) - **ROU assets** and related **lease liabilities** of **$0.8 million** were recorded as part of the Indoff acquisition, covering administrative offices and a distribution center[40](index=40&type=chunk) Lease Liabilities Maturities (Millions $) | Year Ending Dec 31 | Operating Leases | | :------------------- | :--------------- | | 2023 (remainder) | 4.7 | | 2024 | 18.9 | | 2025 | 17.7 | | 2026 | 15.5 | | 2027 | 11.8 | | 2028 | 11.9 | | Thereafter | 40.6 | | Total lease payments | 121.1 | | Less: interest | (23.1) | | Total present value of lease liabilities | 98.0 | [6. Net Income (Loss) per Common Share](index=18&type=section&id=6.%20Net%20Income%20(Loss)%20per%20Common%20Share) - **Basic** and diluted **net income per common share** are calculated using the two-class method due to outstanding restricted stock with dividend participation rights[43](index=43&type=chunk) Net Income Per Share from Continuing Operations | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :------------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Basic EPS | $0.54 | $0.53 | $1.45 | $1.70 | | Diluted EPS | $0.54 | $0.53 | $1.44 | $1.69 | | Weighted average shares outstanding (Basic) | 38.1 | 38.0 | 38.1 | 38.0 | | Weighted average shares outstanding (Diluted) | 38.2 | 38.1 | 38.2 | 38.1 | [7. Credit Facilities and Short-term Debt](index=21&type=section&id=7.%20Credit%20Facilities%20and%20Short-term%20Debt) - The Company maintains a **$125.0 million** secured revolving **credit facility** maturing October 19, 2026, with no outstanding borrowings as of September 30, 2023[47](index=47&type=chunk) - As of September 30, 2023, the Company had **$108.9 million** in **total excess availability** under its **credit facility** and was in compliance with all covenants[47](index=47&type=chunk) [8. Fair Value Measurements](index=21&type=section&id=8.%20Fair%20Value%20Measurements) - The Company's financial instruments, including cash, **accounts receivable**, debt, and **accounts payable**, are considered to have **fair values** representative of their carrying amounts due to their short-term or variable **interest rate** nature[50](index=50&type=chunk) - **Goodwill** and indefinite-lived **intangible assets** are measured for impairment annually in the fourth quarter by comparing the Company's fair market value to its carrying value[51](index=51&type=chunk) [9. Legal Proceedings](index=23&type=section&id=9.%20Legal%20Proceedings) - The Company is involved in various lawsuits, claims, and investigations in the ordinary course of business, including commercial, employment, tax, and intellectual property matters[54](index=54&type=chunk) - Management does not expect the outcome of these matters to have a material adverse effect on its financial position or results of operations, and accruals are established for probable and estimable losses[55](index=55&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance, condition, liquidity, and future outlook, including the Indoff acquisition impact [Forward-Looking Statements and Risk Factors](index=24&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) - The report contains forward-looking statements based on management's estimates and assumptions, subject to **risks** and uncertainties that could significantly impact business, operating results, or financial condition[56](index=56&type=chunk)[57](index=57&type=chunk) - Key **risk factors** include general economic conditions (inflation, **interest rates**), global political/economic conditions, supply chain disruptions, tariffs, freight costs, extreme weather, labor shortages, competition, e-commerce **risks**, data security breaches, inventory management, and litigation[58](index=58&type=chunk)[61](index=61&type=chunk) [Overview](index=25&type=section&id=Overview) - **Global Industrial Company** is a value-added industrial distributor of over a **million** industrial and MRO products in North America, utilizing branded e-commerce websites and relationship marketers[60](index=60&type=chunk) - The Company markets its own Global Industrial Exclusive Brands, including white label and private brand products under trademarks like Global, Nexel, Paramount, Interion, and Absocold[61](index=61&type=chunk) - The acquisition of Indoff LLC on May 19, 2023, for **$72.6 million**, expanded the Company's presence in the MRO market[62](index=62&type=chunk) [Operating Conditions](index=26&type=section&id=Operating%20Conditions) - The North American industrial products market is highly fragmented and competitive, requiring significant **working capital** for warehousing, inventory, and distribution[64](index=64&type=chunk) - Primary operating expenses include employee-related costs (wages, commissions, benefits, equity-based compensation), marketing expenses (digital marketing), and occupancy charges for leased facilities[65](index=65&type=chunk) [Business Outlook](index=26&type=section&id=Business%20Outlook) - Q3 2023 **consolidated net sales** increased by **18.8%** to **$354.6 million**, including Indoff. Excluding Indoff, sales grew **3.2%** due to volume improvement offsetting price deflation[67](index=67&type=chunk) - **Gross margin** in Q3 2023 declined to **32.8%** (down **290 basis points** YoY), with Indoff's contribution mix accounting for **170 basis points** of the decline[67](index=67&type=chunk) - **Selling, distribution & administrative expenses (SD&A)** increased due to planned sales and marketing investment, but was partially offset by cost control measures and reduced variable compensation[67](index=67&type=chunk) [Critical Accounting Policies and Estimates](index=27&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - Key accounting policies requiring significant management judgment include **revenue** recognition, inventory valuation, and valuation of **intangible assets** acquired through business combinations[68](index=68&type=chunk) - There were no material changes in the Company's significant accounting policies during the third quarter ended September 30, 2023[69](index=69&type=chunk) [Highlights from Q3 2023 and Year to Date Q3 2023](index=28&type=section&id=Highlights%20from%20Q3%202023%20and%20Year%20to%20Date%20Q3%202023) Q3 2023 Summary | Metric | Value | Change YoY (Excl. Indoff) | | :------------------------------------------ | :---------- | :------------------------ | | Consolidated sales | $354.6 million | +3.2% | | Consolidated gross margin | 32.8% | -120 bps | | Consolidated operating income | $28.2 million | -6.5% | | Net income per diluted share | $0.54 | +1.9% | Year to Date Q3 2023 Summary | Metric | Value | Change YoY (Excl. Indoff) | | :------------------------------------------ | :---------- | :------------------------ | | Consolidated sales | $954.2 million | -2.4% | | Consolidated gross margin | 34.3% | -90 bps | | Consolidated operating income | $75.1 million | -18.3% | | Net income per diluted share | $1.44 | -14.8% | [Results of Operations](index=29&type=section&id=Results%20of%20Operations) [NET SALES](index=30&type=section&id=NET%20SALES) - **Consolidated net sales** increased **18.8%** in Q3 2023 to **$354.6 million**, driven by the full quarter impact of Indoff. Excluding Indoff, sales increased **3.2%** due to volume improvement[79](index=79&type=chunk) - For the nine months ended September 30, 2023, **consolidated net sales** increased **5.4%** to **$954.2 million**. Excluding Indoff, sales declined **2.4%**[76](index=76&type=chunk)[79](index=79&type=chunk) - U.S. sales increased **19.6%** in Q3 2023 and **6.3%** for the nine months ended September 30, 2023. Canada sales (local currency) increased **8.2%** in Q3 2023 but decreased **4.2%** for the nine months[79](index=79&type=chunk) [GROSS MARGIN](index=30&type=section&id=GROSS%20MARGIN) - **Gross margin** declined by **290 basis points** to **32.8%** in Q3 2023, primarily due to Indoff's lower **gross margin** profile[82](index=82&type=chunk) - Excluding Indoff, Q3 **gross margin** declined **120 basis points** to **34.5%**, reflecting planned proactive promotion, freight actions, and sell-through of high-cost inventory[82](index=82&type=chunk) - For the nine months ended September 30, 2023, **gross margin** was **34.3%**, a **190 basis point** decline YoY. Excluding Indoff, the decline was **90 basis points**[82](index=82&type=chunk) [SELLING, DISTRIBUTION AND ADMINISTRATIVE EXPENSES ("SD&A")](index=30&type=section&id=SELLING,%20DISTRIBUTION%20AND%20ADMINISTRATIVE%20EXPENSES%20(%22SD%26A%22)) - **SD&A** costs as a percentage of sales improved by **170 basis points** in Q3 2023, driven by cost control measures and reduced variable compensation, despite increased marketing investment[83](index=83&type=chunk) - Q3 2023 **SD&A** included approximately **$7.6 million** related to Indoff, including **$0.7 million** in **intangible asset** amortization[83](index=83&type=chunk) - For the nine months ended September 30, 2023, **SD&A** costs as a percentage of sales remained flat, with **$11.6 million** related to Indoff and **$6.4 million** in planned marketing spend[83](index=83&type=chunk) [OPERATING MARGIN](index=30&type=section&id=OPERATING%20MARGIN) - **Operating margin** for Q3 2023 declined **120 basis points** YoY, primarily due to the **gross margin** decline, partially offset by **SD&A** savings[84](index=84&type=chunk) - **Operating margin** for the nine months ended September 30, 2023, declined **180 basis points** YoY, attributed to sales declines in Q1/Q2, **gross margin** decline, and severance-related costs[85](index=85&type=chunk) [INTEREST AND OTHER EXPENSE, NET](index=31&type=section&id=INTEREST%20AND%20OTHER%20EXPENSE,%20NET) Interest and Other Expense, Net (Millions $) | Period | 2023 | 2022 | | :------------------------------ | :--- | :--- | | Three Months Ended Sep 30 | 0.7 | 0.6 | | Nine Months Ended Sep 30 | 1.2 | 1.3 | [INCOME TAXES](index=31&type=section&id=INCOME%20TAXES) Provision for Income Taxes (Millions $) | Period | 2023 | 2022 | | :------------------------------ | :--- | :--- | | Three Months Ended Sep 30 | 6.8 | 6.6 | | Nine Months Ended Sep 30 | 18.4 | 21.5 | [Financial Condition, Liquidity and Capital Resources](index=31&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) Selected Liquidity Data (Millions $) | Metric | Sep 30, 2023 | Dec 31, 2022 | $ Change | | :-------------------------------- | :----------- | :----------- | :------- | | Cash and cash equivalents | 34.3 | 28.5 | 5.8 | | Accounts receivable, net | 136.8 | 108.0 | 28.8 | | Inventories | 153.8 | 179.4 | (25.6) | | Accounts payable | 125.8 | 96.9 | 28.9 | | Working capital | 142.9 | 172.6 | (29.7) | Historical Cash Flows (Millions $) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | 103.7 | 23.4 | | Net cash used in investing activities | (75.6) | (4.9) | | Net cash used in financing activities | (22.3) | (13.6) | | Net increase in cash and cash equivalents | 5.8 | 4.6 | - The Company believes current **cash on hand**, **operating cash flow**, and **credit facility** availability will be sufficient to fund **working capital** and other **cash requirements** for at least the next twelve months[89](index=89&type=chunk) [Operating Activities](index=32&type=section&id=Operating%20Activities) - **Net cash provided by operating activities from continuing operations** significantly increased to **$103.8 million** in 2023 from **$23.5 million** in 2022, primarily due to favorable changes in **working capital accounts**[92](index=92&type=chunk) [Investing Activities](index=32&type=section&id=Investing%20Activities) - **Net cash used in investing activities** totaled **$75.6 million** in 2023, with **$72.6 million** allocated to the Indoff acquisition and **$3.3 million** for property, plant, and equipment[93](index=93&type=chunk) [Financing Activities](index=32&type=section&id=Financing%20Activities) - **Net cash used in financing activities** was **$22.3 million** in 2023, primarily for **$23.0 million** in **dividends** and net repayments of short-term borrowings, partially offset by proceeds from stock issuance[94](index=94&type=chunk) - The Company declared regular quarterly **dividends** of **$0.20 per common share** in 2023, up from **$0.18 per share** in 2022[10](index=10&type=chunk)[94](index=94&type=chunk) [Material Cash Requirements](index=33&type=section&id=Material%20Cash%20Requirements) - As of September 30, 2023, the Company had **$98.0 million** in **non-cancelable operating and finance lease obligations**, with an anticipated **$4.7 million** in remaining cash expenditures for 2023[101](index=101&type=chunk) - The Company anticipates **capital expenditures** in the range of **$5.0 to $6.0 million** for 2023[98](index=98&type=chunk) - The Company had over **$138 million** of **liquidity** (**cash** and undrawn line of **credit**) in the U.S. as of September 30, 2023[100](index=100&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the Company's exposure to market risks, primarily from interest rates and foreign currency exchange rates - The Company is exposed to **market risks** from changes in U.S. and international **interest rates** and **currency exchange rates** (principally Canadian dollars)[103](index=103&type=chunk) - The Company has limited involvement with derivative financial instruments and does not use them for trading purposes; as of September 30, 2023, there were no outstanding option or forward exchange contracts[104](index=104&type=chunk) - As of September 30, 2023, the Company had no outstanding variable rate debt under its **credit facility**, and a hypothetical one **percentage point** change in **interest rates** is not expected to materially affect its financial position[105](index=105&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the Company's disclosure controls and procedures, their effectiveness, and changes in internal control over financial reporting - The Company's CEO and CFO concluded that **disclosure controls and procedures** were effective as of September 30, 2023[107](index=107&type=chunk) - The assessment of **internal controls** for Indoff LLC, which represented approximately **5%** of consolidated **total assets** and **7%** of **net sales**, was omitted from the evaluation due to its recent acquisition[107](index=107&type=chunk) - There have been no material changes in the Company's **internal controls over financial reporting** during the quarter ended September 30, 2023[110](index=110&type=chunk) [Evaluation of Disclosure Controls and Procedures](index=35&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Management, including the CEO and CFO, evaluated the effectiveness of **disclosure controls and procedures** as of September 30, 2023, concluding they are effective[107](index=107&type=chunk) - The assessment excluded Indoff LLC's **internal controls over financial reporting** due to its recent acquisition on May 19, 2023[107](index=107&type=chunk) [Changes in Internal Control Over Financial Reporting](index=35&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - No material changes in **internal controls over financial reporting** occurred during the quarter ended September 30, 2023[110](index=110&type=chunk) - The Company is integrating Indoff LLC's operations into its overall system of **internal control over financial reporting** and will make appropriate changes as needed[110](index=110&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 9 of the Condensed Consolidated Financial Statements for a detailed description of the Company's legal proceedings - For information regarding **legal proceedings**, refer to Note 9, **Legal Proceedings**, of the Notes to Condensed Consolidated Financial Statements[112](index=112&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section indicates no material changes to the Company's risk factors and directs readers to the 2022 Annual Report on Form 10-K - There were no material changes to the Company's **risk factors** during the third quarter ended September 30, 2023[114](index=114&type=chunk) - For information regarding **risk factors**, refer to Item 1A. "**Risk Factors**" of the Company's 2022 Annual Report on Form 10-K[113](index=113&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications, the Indoff LLC Securities Purchase Agreement, and XBRL documents - **Exhibits** include certifications from the CEO and CFO (Sections 302 and 906 of Sarbanes-Oxley Act) and the Securities Purchase Agreement for Indoff LLC[116](index=116&type=chunk) - XBRL Instance Document, Taxonomy Extension Schema, Calculation Linkbase, Definition Linkbase, Label Linkbase, and Presentation Linkbase Documents are also filed as **exhibits**[116](index=116&type=chunk) [Signatures](index=38&type=section&id=Signatures) This section contains the duly authorized signatures of Global Industrial Company's President and CEO, Barry Litwin, and SVP and CFO, Thomas Clark - The report is signed by Barry Litwin, President and Chief Executive Officer, and Thomas Clark, Senior Vice President and Chief Financial Officer, on October 31, 2023[120](index=120&type=chunk)[123](index=123&type=chunk)