Systemax(US:GIC)2025-04-30 21:24Revenue and Sales Performance - The Company generated revenue of $321.0 million, a decline of 0.7% from $323.4 million in the same period last year[60]. - U.S. sales declined 0.3% for the quarter compared to the same period in 2024, while Canada sales declined 8.8% (2.5% in local currency)[64]. Profitability and Margins - Consolidated gross margin increased to 34.9%, up from 34.3% year-over-year, benefiting from proactive price management[60]. - Operating margin for Q1 2025 increased by 30 basis points compared to Q1 2024, attributed to improved gross margin and cost control measures[70]. - Net income per diluted share from continuing operations increased 2.9% to $0.35 compared to $0.34 last year[60]. - Gross margin for Q1 2025 was 34.9%, a 60 basis point improvement from 34.3% in Q1 2024, driven by price capture and freight management[67]. Expenses and Cost Management - Selling, distribution and administrative expenses (SD&A) were $93.9 million, representing 29.3% of net sales, up from 28.9% last year[61]. - Selling, distribution, and administrative expenses (SD&A) as a percentage of sales increased by approximately 40 basis points year-over-year, with total salary and related costs rising by $2.7 million[69]. - The Company continues to maintain strong cost controls within discretionary spending[54]. - The Company is focused on integrating Indoff's operations and optimizing its cost structure amid ongoing IT control remediation[54]. Cash Flow and Liquidity - Net cash provided by operating activities from continuing operations was $3.3 million in Q1 2025, down from $6.3 million in Q1 2024, primarily due to changes in working capital[77]. - Cash and cash equivalents decreased by $5.6 million from $44.6 million as of December 31, 2024, to $39.0 million as of March 31, 2025[74]. - The company had over $156 million of liquidity (cash and undrawn line of credit) in the U.S. as of March 31, 2025[85]. - The company maintains a $125.0 million secured revolving credit facility, with total availability of approximately $122.2 million as of March 31, 2025[80]. Future Outlook - The Company anticipates increased volatility in margin rates due to market inflation and tariff-related cost increases[54]. - The company anticipates capital expenditures in the range of $2.0 to $3.0 million for 2025, with no contractual commitments at this time[83]. - Regular quarterly dividends in Q1 2025 totaled approximately $10.1 million, reflecting a dividend of $0.26 per common share[79].