Systemax(US:GIC)2026-02-24 21:42Financial Performance - Fourth quarter sales increased by 14.3% to $345.6 million compared to $302.3 million in the previous year[6] - Operating income from continuing operations improved by 35.2% to $19.6 million, up from $14.5 million last year[6] - Net income per diluted share from continuing operations grew by 40.7% to $0.38, compared to $0.27 in the prior year[6] - Full year sales reached $1.38 billion, an increase of 4.8% from $1.32 billion in 2024[6] - Average daily sales in the fourth quarter increased by 7.4% compared to the prior year[6] - Consolidated gross margin improved to 34.5% from 33.8% last year[6] - Net income from continuing operations increased to $72.0 million in 2025 from $60.7 million in 2024, representing a growth of 21.5%[17] Cash Flow and Working Capital - Total working capital at December 31, 2025, was $218.0 million, with cash and cash equivalents of $67.5 million[7] - Net cash provided by operating activities from continuing operations rose to $77.7 million in 2025, up from $50.4 million in 2024, marking a 54% increase[17] - The change in working capital improved to a negative $10.9 million in 2025 compared to a negative $22.3 million in 2024, indicating a reduction in working capital strain[17] - Cash and cash equivalents at the end of the period reached $67.5 million in 2025, up from $44.6 million in 2024, representing a growth of 51.8%[17] Investment and Financing Activities - Net cash used in investing activities from continuing operations was $7.1 million in 2025, compared to $3.8 million in 2024, showing an increase in investment outflows[17] - The net cash used in financing activities from continuing operations was $47.5 million in 2025, up from $36.7 million in 2024, indicating increased financing outflows[17] - The net increase in cash for the year was $22.9 million in 2025, compared to $10.2 million in 2024, reflecting a significant improvement[17] Shareholder Returns - The company repurchased approximately 326,000 shares of its common stock for an aggregate purchase price of $9.3 million during the fourth quarter[7] - The quarterly dividend was increased by 7.7% to $0.28 per share, marking the 11th consecutive year of dividend increases[7] - Dividends paid increased to $40.3 million in 2025 from $38.4 million in 2024, a rise of 4.9%[17] Strategic Initiatives - The company plans to continue its strategic initiatives to drive profitable growth and enhance customer-centric services in 2026 and beyond[7] Stock-Based Compensation - Stock-based compensation increased significantly to $7.4 million in 2025 from $2.8 million in 2024, reflecting a growth of 164.3%[17] Exchange Rate Impact - The effect of exchange rate changes on cash resulted in a decrease of $0.3 million in 2025, compared to no impact in 2024[17]