Systemax(US:GIC)2020-02-25 23:32Financial Data and Key Metrics Changes - In 2019, the company generated nearly $950 million in revenue, with an operating income of $66 million and strong cash flow generation of $63 million from continuing operations [6][24] - For Q4 2019, revenue increased by 2% year-over-year, with non-GAAP operating income expanding by 23% [7][21] - Gross profit for Q4 was $75 million, up from $73 million the previous year, with a gross margin of 33.8%, an increase of 30 basis points [17][21] Business Line Data and Key Metrics Changes - Revenue in the fourth quarter was approximately $222 million, with U.S. growth of 1.9% and Canadian growth of 5.4% in local currency [16][17] - Key product categories showed mixed results, with strength in safety, packaging, and janitorial products, while heating products experienced significant softness due to mild winter weather [17][19] Market Data and Key Metrics Changes - The company maintained the same number of selling days in Q4 2019 compared to the previous year, which contributed to the revenue growth [16] - The company is monitoring the impact of the coronavirus situation in China but has not experienced any material disruptions to date [19] Company Strategy and Development Direction - The company is focused on a customer-centric strategy and has prioritized initiatives in six core areas, including enhancing customer experience and pursuing potential acquisitions [8][9][12] - Plans for 2020 include investing in sales growth, expanding product offerings, and improving customer service delivery [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the customer-focused strategy and its relevance, indicating that the company will continue to invest in growth despite short-term softness [15][21] - The company aims to achieve a 100% customer promise date delivery on orders and enhance digital self-service tools [14] Other Important Information - The company reported a strong balance sheet with a current ratio of 1.9:1, approximately $97.2 million in cash, and no borrowings [23][24] - The Board of Directors increased the quarterly dividend to $0.14 per share, a 17% increase, and announced a special cash dividend of $1 per share [24] 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 questions regarding the results [2][26]