Financial Performance - Consolidated sales decreased 2.1% to $227.3 million for the three-month period ended March 31, 2020, compared to $232.2 million in 2019[70] - Consolidated operating income declined 12.9% to $11.5 million for the three-month period ended March 31, 2020, compared to $13.2 million in 2019[70] - Net income per diluted share from continuing operations decreased 19.2% to $0.21 for the three-month period ended March 31, 2020, compared to 2019[70] - Consolidated gross profit was $76.7 million for the three-month period ended March 31, 2020, down from $80.3 million in 2019, reflecting a 4.5% decline[71] - Consolidated gross margin decreased to 33.7% for the three-month period ended March 31, 2020, compared to 34.6% in 2019[71] - Net margin from continuing operations decreased to 3.7% for the three-month period ended March 31, 2020, compared to 4.3% in 2019[71] - Average daily sales declined by 2.1% from $3.63 million in Q1 2019 to $3.56 million in Q1 2020[78] - Operating income fell by 12.9% to $11.5 million, with an operating margin decrease of 60 basis points to 5.1%[86] - Gross margin declined by 90 basis points due to a shift in product mix towards lower-margin safety and PPE products[82] Costs and Expenses - Consolidated selling, distribution, and administrative (SD&A) costs were $65.2 million for the three-month period ended March 31, 2020, down from $67.1 million in 2019, a decrease of 2.8%[71] - The effective income tax rate increased to 26.5% for the three-month period ended March 31, 2020, compared to 24.2% in 2019[71] Cash Flow and Liquidity - Cash and cash equivalents decreased by $33.1 million to $64.1 million as of March 31, 2020[91] - Net cash provided by operating activities from continuing operations was $13.7 million, down from $23.8 million in Q1 2019[92] - Working capital decreased by $36.6 million, primarily due to reduced cash balances after a $43.3 million dividend payment[93] - The company maintains a $75.0 million secured revolving credit facility, with total availability of $73.0 million as of March 31, 2020[98] - As of March 31, 2020, the company had over $131 million in liquidity, which includes cash and undrawn lines of credit, sufficient to fund its U.S. operations and capital needs[104] - The company believes that its cash balances, future cash flows from operations, and availability under credit facilities will be sufficient to fund its working capital and other cash requirements for the next twelve months[103] Backlog and Supply Chain - The backlog of orders increased substantially due to constrained availability of COVID-19 response items, leading to low double-digit revenue declines during the closing weeks of the quarter[63] - The company anticipates being able to ship a portion of the backlog in the second quarter as visibility into the supply chain and product lead times has improved[63] - The company anticipates shipping a portion of its backlog in Q2 2020 as supply chain visibility improves, with a backlog increase due to COVID-19[78] Legal and Risk Management - The company does not expect that the outcome of ongoing legal proceedings will have a material adverse effect on its financial position or results of operations[116] - The company has established accruals for various lawsuits and claims based on estimates of the most likely outcomes as of March 31, 2020[116] - The company has limited involvement with derivative financial instruments and had no outstanding foreign currency options or forward exchange contracts as of March 31, 2020[107] Capital Expenditures - The company anticipates capital expenditures in the range of $3.0 to $5.0 million for 2020, although it is not contractually committed to these expenditures at this time[102] Interest Rate and Financial Reporting - The company has no outstanding balances under its variable rate credit facility as of March 31, 2020, indicating minimal exposure to interest rate risk[108] - The company has not created any off-balance sheet entities for raising capital or incurring debt, ensuring transparency in its financial reporting[105] - The company maintains its cash and cash equivalents in money market funds or equivalent with maturities of less than three months, minimizing interest rate risk exposure[104] - Cash balances held in foreign subsidiaries totaled approximately $3.8 million as of March 31, 2020, held in local country banks[104]

Systemax Inc. (SYX) Q1 2020 Earnings Conference Call April 28, 2020 5:00 PM ET Company Participants Mike Smargiassi - The Plunkett Group Barry Litwin - CEO Tex Clark - VP and CFO Conference Call Participants Operator Good afternoon, ladies and gentlemen, and welcome to Systemax Inc.'s First 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, Chris and welcome to the Systemax's First Quarter 2020 Ea ...

Financial Data and Key Metrics Changes - In 2019, the company generated nearly $950 million in revenue, with an operating income of $66 million and strong cash flow generation of $63 million from continuing operations [6][24] - For Q4 2019, revenue increased by 2% year-over-year, with non-GAAP operating income expanding by 23% [7][21] - Gross profit for Q4 was $75 million, up from $73 million the previous year, with a gross margin of 33.8%, an increase of 30 basis points [17][21] Business Line Data and Key Metrics Changes - Revenue in the fourth quarter was approximately $222 million, with U.S. growth of 1.9% and Canadian growth of 5.4% in local currency [16][17] - Key product categories showed mixed results, with strength in safety, packaging, and janitorial products, while heating products experienced significant softness due to mild winter weather [17][19] Market Data and Key Metrics Changes - The company maintained the same number of selling days in Q4 2019 compared to the previous year, which contributed to the revenue growth [16] - The company is monitoring the impact of the coronavirus situation in China but has not experienced any material disruptions to date [19] Company Strategy and Development Direction - The company is focused on a customer-centric strategy and has prioritized initiatives in six core areas, including enhancing customer experience and pursuing potential acquisitions [8][9][12] - Plans for 2020 include investing in sales growth, expanding product offerings, and improving customer service delivery [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the customer-focused strategy and its relevance, indicating that the company will continue to invest in growth despite short-term softness [15][21] - The company aims to achieve a 100% customer promise date delivery on orders and enhance digital self-service tools [14] Other Important Information - The company reported a strong balance sheet with a current ratio of 1.9:1, approximately $97.2 million in cash, and no borrowings [23][24] - The Board of Directors increased the quarterly dividend to $0.14 per share, a 17% increase, and announced a special cash dividend of $1 per share [24] 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 questions regarding the results [2][26]

Systemax Inc. (SYX) Q3 2019 Earnings Conference Call October 29, 2019 5:00 PM ET Company Participants Mike Smargiassi - The Plunkett Group Barry Litwin - CEO Tex Clark - VP and CFO Conference Call Participants Operator Operator Good afternoon, ladies and gentlemen, and welcome to Systemax Incorporated Third Quarter 2019 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 the Systemax third quarte ...

Systemax Inc. (SYX) Q2 2019 Results Conference Call July 30, 2019 5:00 PM ET Company Participants Mike Smargiassi - The Plunkett Group Barry Litwin - Chief Executive Officer Tex Clark - Vice President and Chief Financial Officer Operator Good afternoon, ladies and gentlemen, and welcome to Systemax Incorporated's Second Quarter 2019 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 the Systemax ...

Systemax Inc. (SYX) Q1 2019 Results Earnings Conference Call April 30, 2019 5:00 PM ET Company Participants Mike Smargiassi - The Plunkett Group Barry Litwin - Chief Executive Officer Tex Clark - Vice President and Chief Financial Officer Conference Call Participants Operator Good afternoon, ladies and gentlemen, and welcome to Systemax Inc.'s First Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] At this time, I would now like to turn the call ove ...

Systemax Inc. (SYX) Q4 2018 Earnings Conference Call February 26, 2019 5:00 PM ET Company Participants Michael Smargiassi - The Plunkett Group Barry Litwin - Chief Executive Officer Tex Clark - Vice President and Chief Financial Officer Conference Call Participants Operator Good afternoon, ladies and gentlemen, and welcome to Systemax Inc.'s Fourth Quarter 2018 Earnings Conference Call. At this time, I would like to turn the call over to Mike Smargiassi of The Plunkett Group. Please go ahead, sir. Michael S ...