Systemax(GIC) - 2020 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue increased by 17% to over $285 million, with operating income improving by 70% year-over-year to more than $31 million [5][16] - Earnings per share (EPS) rose over 77% year-over-year [5] - Free cash flow generated was robust at over $25 million, ending the quarter with $78 million in cash [6][24] Business Line Data and Key Metrics Changes - E-commerce accounted for more than 55% of transaction count, with double-digit growth across all sales channels [17] - Consumable products related to pandemic response made up approximately 11% of sales, compared to about 2% in the same period last year [18] - Gross profit for the quarter was $102.3 million, a 21.2% increase from last year, with gross margin at 35.8%, up 120 basis points [19] Market Data and Key Metrics Changes - U.S. revenue grew by 16.1%, while Canada experienced a 40% growth in local currency [16] - The company noted stable growth in the mid-teens for October following the third quarter [16] Company Strategy and Development Direction - The multi-year strategy introduced in 2019 focuses on enhancing customer experience and operational excellence [7][10] - The "Ready. Set." campaign was launched to empower customers with pandemic management solutions [12] - Continued investments in digital and marketing capabilities are aimed at strengthening the sales organization [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive despite economic disruptions caused by the pandemic [13] - The focus on customer-centric strategies is expected to drive growth and improve sales performance [13][14] Other Important Information - Selling, distribution, and administrative spending was $70.9 million, representing 24.8% of net sales, a reduction of 250 basis points from last year [21] - The company has a strong balance sheet with zero debt and significant liquidity [24][25] 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 inquiries [2][26]