Systemax(GIC) - 2024 Q3 - Quarterly Results

Financial Performance - Consolidated sales decreased 3.4% to $342.4 million compared to $354.6 million last year[3] - Consolidated gross margin increased to 34.0% compared to 32.8% last year[3] - Consolidated operating income from continuing operations decreased 21.3% to $22.2 million compared to $28.2 million last year[3] - Net income per diluted share from continuing operations decreased 18.5% to $0.44 compared to $0.54 last year[3] - Year-to-date consolidated sales increased 6.2% to $1.0 billion compared to $954.2 million last year[4] - Year-to-date consolidated gross margin increased to 34.5% compared to 34.3% last year[4] - Net income from continuing operations decreased to $50.1 million from $55.5 million year-over-year, representing a decline of approximately 8.1%[11] Cash Flow and Working Capital - Total working capital as of September 30, 2024, was $180.9 million, with cash and cash equivalents of $38.9 million[5] - Operating cash flow provided by continuing operations in the quarter was $9.6 million[5] - Net cash provided by operating activities from continuing operations was $34.6 million, down from $103.8 million, a decrease of about 66.7%[11] - Cash and cash equivalents at the end of the period rose to $38.9 million from $34.3 million, an increase of about 16.9%[11] - The company reported a change in working capital of $(24.2) million compared to a positive change of $39.3 million in the previous year[11] Dividends and Stockholder Returns - The Board of Directors declared a cash dividend of $0.25 per share payable on November 18, 2024[5] - Dividends paid increased to $28.8 million from $23.0 million, an increase of approximately 25.2%[11] Investment and Expenses - Net cash used in investing activities was $3.1 million, significantly lower than $75.6 million in the previous period, indicating a reduction of about 95.9%[11] - Depreciation and amortization increased to $5.8 million from $4.5 million, reflecting a rise of approximately 29.1%[11] - Stock-based compensation decreased to $1.1 million from $2.1 million, a decline of approximately 47.6%[11] - The company made no cash acquisition for Indoff LLC, contrasting with a cash outflow of $72.3 million in the previous period[11] Market Outlook and Strategy - The company identified key areas for improvement and plans to enhance performance as market conditions improve[5] Foreign Exchange Impact - The effect of exchange rate changes on cash was $(0.1) million, compared to no effect in the previous period[11]