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 ...

Financial Data and Key Metrics Changes - Revenue reached a quarterly record of over $318 million, growing nearly 17% year-over-year [7][18] - Operating income increased by 23% to over $30 million, with an operating margin improvement of 50 basis points to 9.6% [8][23] - Gross profit was $113 million, up 15.3% from the previous year, with a gross margin of 35.5%, down 50 basis points from the prior year [19] Business Line Data and Key Metrics Changes - U.S. revenue increased by 18.2%, while Canadian revenue improved by 2.4% in local currency [18] - The company is expanding into larger government and private sector accounts, as well as the healthcare vertical, which launched in May [10][31] Market Data and Key Metrics Changes - Open orders reduced moderately and remained flat from the beginning of the year, with expectations to fill back orders in the second half of the year [18] - The company continues to see strong demand across various end markets, with no significant slowdowns reported [34][35] Company Strategy and Development Direction - The company is focused on driving operational excellence, digital transformation, and investments in private brand and logistics [14] - The ACE strategy is central to the company's growth, helping to drive above-market growth and improve customer relationships [9][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledges uncertainty in the economy but remains optimistic about growth opportunities and the company's ability to adapt [15][34] - The company is actively monitoring customer sentiment and is prepared to react to any signs of economic slowdown [36] Other Important Information - The company maintains a strong balance sheet with a current ratio of 1.7:1, over $23 million in cash, and $30 million in debt [24] - A quarterly dividend of $0.18 per share was declared, with expectations to continue regular dividends in the future [25] Q&A Session Summary Question: Pricing versus volume performance in the quarter - Management noted that both pricing and volume moved positively during the period, with improved item availability expected to continue driving volume growth [28][29] Question: Sustainability of growth in the MRO market - Management attributed growth to strong customer demand, particularly from small and midsized customers, larger enterprise accounts, and the new healthcare channel [30][31] Question: Observations on potential slowdowns in end markets - Management reported no significant slowdowns in any particular end market and remains optimistic about the outlook for the next couple of quarters [34][35] Question: Inflation and supplier price increases - Management indicated that while raw material prices are still increasing, there are signs of moderation in freight costs, which may provide pricing flexibility in the future [38][39] Question: Impact of container rates on pricing - Management confirmed that as container rates decrease, there is potential for more flexible pricing strategies, with a focus on competitive pricing [40][41] Question: Gross margin outlook for the second half - Management expressed confidence in achieving strong margin results for the year, driven by improved inventory management and a shift towards private brand products [43][48]

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 ...

Financial Data and Key Metrics Changes - Revenue for Q4 2020 increased by 23% to $274 million, with full-year revenue exceeding $1 billion, marking an 8% increase year-over-year [7][9] - Operating income for Q4 improved by 46% year-over-year, reaching $21.1 million, with operating margin expanding by 120 basis points to 7.7% [8][27] - Gross profit for Q4 was $93.1 million, a 24.1% increase from the previous year, with gross margin at 34%, up 20 basis points [24] Business Line Data and Key Metrics Changes - Growth was primarily driven by the Global Industrial branded product offering and pandemic-related supplies, with consumable products making up approximately 9% of sales in Q4, up from 2% in the same period last year [8][22] - E-commerce accounted for over 55% of transaction count for the second consecutive quarter, with double-digit growth across all sales channels [20] Market Data and Key Metrics Changes - U.S. average daily sales growth was 14.2%, while Canada saw a significant increase of 43.4% in local currency [19] - New customer acquisition remained strong, with the managed sales team expanding average order value [21] Company Strategy and Development Direction - The company is focused on executing its multi-year ACE strategy, which includes investments in automation, technology, and enhancing the e-commerce shopping experience [12][13] - Continued investment in private label offerings is expected to differentiate the value proposition and enhance margin profiles [14] Management Comments on Operating Environment and Future Outlook - Management expressed optimism for 2021, citing the commencement of COVID vaccinations and signs of improving economic demand [17] - The company anticipates continued above-market growth rates and believes PPE will remain a permanent part of the sales mix [36] Other Important Information - The Board of Directors increased the quarterly dividend by 14% to $0.16 per share, marking the fifth increase in five years [9][30] - The company maintains a strong balance sheet with zero debt and significant liquidity, allowing for strategic flexibility [29] Q&A Session Summary Question: Sales outlook for 2021 and impact of PPE comparisons - Management believes PPE will remain a permanent part of the sales mix and expects continued above-market growth rates [35][36] Question: Plans for price increases amid inflation - Management noted supplier price pressures and indicated that they will manage pricing to remain competitive while leveraging private label offerings [37] Question: Customer acquisition and retention metrics - Management highlighted improvements in retention rates and ongoing investments in digital marketing strategies to enhance customer acquisition [38][39] Question: Breakdown of average daily sales growth between AOV and transaction volume - The growth rate was primarily driven by volume, with a small increase in average order value [46][47] Question: Inventory position and adequacy for 2021 - Management feels confident in their inventory position to support projected revenue for the year, despite challenges in the import market [48][49] Question: Long-term operating margin goals - Management remains committed to a long-term operating margin goal of over 10%, supported by private label expansion and operational excellence initiatives [52]

Financial Data and Key Metrics Changes - Revenue increased by 17% to over $285 million, with operating income improving by 70% year-over-year to more than $31 million [5][16] - Earnings per share (EPS) rose over 77% year-over-year [5] - Free cash flow generated was robust at over $25 million, ending the quarter with $78 million in cash [6][24] Business Line Data and Key Metrics Changes - E-commerce accounted for more than 55% of transaction count, with double-digit growth across all sales channels [17] - Consumable products related to pandemic response made up approximately 11% of sales, compared to about 2% in the same period last year [18] - Gross profit for the quarter was $102.3 million, a 21.2% increase from last year, with gross margin at 35.8%, up 120 basis points [19] Market Data and Key Metrics Changes - U.S. revenue grew by 16.1%, while Canada experienced a 40% growth in local currency [16] - The company noted stable growth in the mid-teens for October following the third quarter [16] Company Strategy and Development Direction - The multi-year strategy introduced in 2019 focuses on enhancing customer experience and operational excellence [7][10] - The "Ready. Set." campaign was launched to empower customers with pandemic management solutions [12] - Continued investments in digital and marketing capabilities are aimed at strengthening the sales organization [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive despite economic disruptions caused by the pandemic [13] - The focus on customer-centric strategies is expected to drive growth and improve sales performance [13][14] Other Important Information - Selling, distribution, and administrative spending was $70.9 million, representing 24.8% of net sales, a reduction of 250 basis points from last year [21] - The company has a strong balance sheet with zero debt and significant liquidity [24][25] Summary of Q&A Session - No live Q&A session was hosted during the call, and participants were directed to contact The Plunkett Group or Systemax for any inquiries [2][26]

Systemax Inc. (SYX) Q2 2020 Results Conference Call July 28, 2020 5:00 PM ET Company Participants Mike Smargiassi - IR, The Plunkett Group Barry Litwin - CEO Tex Clark - SVP and CFO Conference Call Participants Operator Good afternoon, ladies and gentlemen, and welcome to Systemax Inc.’s Second Quarter 2020 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, Grant, and welcome to the Systemax second quarter 202 ...