Systemax(GIC) - 2025 Q1 - Quarterly Results

Performance Highlights For the first quarter of 2025, Global Industrial Company reported net sales of $321.0 million, a slight decrease of 0.7% year-over-year, while improving profitability with gross margin expanding to 34.9% and operating margin increasing to 5.7% Q1 2025 vs Q1 2024 Performance Summary (U.S. dollars in millions, except per share data) | Performance Summary (U.S. dollars in millions, except per share data) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $321.0 | $323.4 | | Gross profit | $112.1 | $110.9 | | Gross margin | 34.9% | 34.3% | | Operating income from continuing operations | $18.2 | $17.4 | | Operating margin | 5.7% | 5.4% | | Net income from continuing operations | $13.5 | $13.1 | | Net income per diluted share from continuing operations | $0.35 | $0.34 | - Consolidated sales decreased by 0.7% year-over-year[7] - Consolidated gross margin increased from 34.3% to 34.9%[7] - Consolidated operating income from continuing operations increased by 4.6%[7] - Net income per diluted share from continuing operations increased by 2.9%[7] Management Commentary and Outlook Management attributed the slight revenue decline to the New Year's holiday timing, noting improved performance in March and strong cost controls, while actively mitigating new tariff impacts - Q1 revenue of $321 million was down less than 1% year-over-year, but would have increased by low single digits excluding the New Year's holiday impact[4] - Performance improved sequentially through the quarter, culminating in revenue growth in March, led by Indoff and the company's largest strategic accounts[4] - The company is actively working to mitigate the impact of tariffs enacted in April, which have caused disruption to the entire supply chain[4] Financial Position and Shareholder Returns As of March 31, 2025, the company maintained a solid financial position with $192.5 million in working capital and $39.0 million in cash, while declaring a quarterly cash dividend of $0.26 per share Liquidity and Capital Position (as of March 31, 2025, in millions) | Metric | Value (in millions) | | :--- | :--- | | Total working capital | $192.5 | | Cash and cash equivalents | $39.0 | | Excess availability under credit facility | $120.5 | - Operating cash flow provided by continuing operations in the first quarter was $3.3 million[4] - The Board of Directors declared a cash dividend of $0.26 per share, payable on May 19, 2025, to shareholders of record on May 12, 2025[4] Condensed Consolidated Financial Statements The unaudited condensed consolidated financial statements provide a comprehensive view of the company's financial health and operational results for the first quarter ended March 31, 2025 Condensed Consolidated Statements of Operations For Q1 2025, net sales slightly decreased to $321.0 million, but operating income from continuing operations increased to $18.2 million, resulting in net income of $13.6 million Q1 2025 Statement of Operations (in millions) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $321.0 | $323.4 | | Gross profit | $112.1 | $110.9 | | Operating income from continuing operations | $18.2 | $17.4 | | Net income from continuing operations | $13.5 | $13.1 | | Net income | $13.6 | $13.2 | | Diluted EPS from continuing operations | $0.35 | $0.34 | Condensed Consolidated Balance Sheets As of March 31, 2025, total assets increased to $536.7 million, driven by higher accounts receivable and inventories, with shareholders' equity also rising to $287.9 million Balance Sheet Summary (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $39.0 | $44.6 | | Inventories | $178.6 | $167.1 | | Total current assets | $372.9 | $352.6 | | Total assets | $536.7 | $520.7 | | Total current liabilities | $180.4 | $168.4 | | Total liabilities | $248.8 | $239.6 | | Shareholders' equity | $287.9 | $281.1 | Condensed Consolidated Statements of Cash Flows In Q1 2025, operating cash flow from continuing activities was $3.3 million, leading to a net decrease in cash of $5.6 million, with the quarter-end cash balance at $39.0 million Cash Flow Summary (in millions) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $3.4 | $6.4 | | Net cash used in investing activities | ($0.2) | ($1.3) | | Net cash used in financing activities | ($8.8) | ($9.6) | | Net decrease in cash | ($5.6) | ($4.5) | | Cash and cash equivalents – End of period | $39.0 | $29.9 |