Revenue 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].

Global Industrial Company (GIC) Q1 2025 Earnings Call April 29, 2025 09:48 PM ET Speaker0 Industrial Company First Quarter twenty twenty five Earnings Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr. Mike Smargiassi with Investor Relations. Please go ahead, sir. Thank you, and welcome to the Global Industrial first quarter twenty twenty ...

Core Viewpoint - Global Industrial (GIC) reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and showing a slight increase from $0.34 per share a year ago, representing a 75% earnings surprise [1] Financial Performance - The company posted revenues of $321 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.56%, although this is a decrease from year-ago revenues of $323.4 million [2] - Over the last four quarters, Global Industrial has only surpassed consensus EPS estimates once [2] Stock Performance - Global Industrial shares have declined approximately 11.1% since the beginning of the year, compared to a decline of 6% for the S&P 500 [3] - The current Zacks Rank for the stock is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.44 on revenues of $339.66 million, and for the current fiscal year, it is $1.48 on revenues of $1.33 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - The Industrial Services industry, to which Global Industrial belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8]

美国工业分销商Global Industrial Company：4月份实施的全球工业关税不仅对我们的业务造成了干扰， 而且对整个供应链和我们的客户造成了干扰。 ...

Exhibit 99.1 GLOBAL INDUSTRIAL COMPANY REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS Sales of $321.0 Million Operating Income of $18.2 Million; Operating Margin 5.7% Board Declares $0.26 Dividend PORT WASHINGTON, NY, April 29, 2025 – Global Industrial Company (NYSE: GIC), a value-added distributor and source for industrial equipment and supplies today announced financial results for the first quarter ended March 31, 2025. | Performance Summary* (U.S. dollars in millions, except per share data) | | | | | | -- ...

Supply Chain and Economic Conditions - The company has experienced disruptions in global supply chains, particularly from China, which could adversely affect operations and sales due to delays in receiving imported products [44]. - Economic conditions in North America directly impact the company's consolidated results, with potential declines in sales linked to decreased customer spending and confidence [43]. - The company relies significantly on products imported from China for private brand lines, exposing it to risks associated with tariffs and trade policies [49]. - Increased shipping costs have been observed due to geopolitical conflicts, such as the Russian invasion of Ukraine, which may continue to affect international business and economic conditions [50]. - The company has faced challenges in maintaining and increasing sales volumes with existing customers, which could impact profitability [46]. - Tariffs imposed on foreign-sourced goods have led to increased procurement costs, with the company attempting to offset these through price increases and cost reductions [54]. - The company is experiencing volatility in freight and shipping costs, which could adversely affect margins if these costs cannot be passed on to customers [66]. Labor and Operational Challenges - The competitive labor market in the U.S. poses challenges for recruiting and retaining employees, potentially increasing operational costs [58]. - The company’s ability to maintain efficient distribution is critical, with disruptions at distribution centers potentially affecting inventory and timely deliveries [53]. - The company is exposed to inventory risks, including the inability to profitably resell excess or obsolete inventory, which could lower gross margins [84]. - The company has faced operational problems in implementing new IT systems, which could impact business operations and financial reporting [71]. - Increased costs from independent freight carriers may not be fully passed on to customers, resulting in lower margins for the company [67]. Financial Performance and Reporting - Consolidated sales increased by 3.3% to $1.32 billion in 2024, compared to $1.27 billion in 2023; excluding Indoff, sales declined by 0.6% [126]. - Consolidated gross margin improved to 34.3% from 34.2% in the previous year; excluding Indoff, gross margin was 36.0%, up from 35.5% [126]. - Consolidated operating income decreased by 16.6% to $80.5 million, with a decline of 18.6% to $73.9 million when excluding Indoff [126]. - Net income per diluted share from continuing operations decreased by 14.7% to $1.57 compared to $1.84 in the previous year [126]. - Selling, distribution, and administrative expenses increased to $371.5 million in 2024 from $339.3 million in 2023, reflecting a 9.5% rise [135]. - The effective income tax rate decreased to 23.9% in 2024 from 25.7% in 2023, influenced by the reversal of previously non-deductible executive stock compensation [139]. - Cash and cash equivalents increased to $44.6 million in 2024 from $34.4 million in 2023, a change of $10.2 million [141]. - Working capital increased by $28.6 million, primarily due to higher cash and inventory balances [144]. - Net cash provided by operating activities from continuing operations was $50.7 million in 2024, down from $85.3 million in 2023, primarily due to lower income and increased depreciation and amortization expenses [145]. Acquisitions and Strategic Initiatives - The acquisition of Indoff in May 2023 resulted in significant intangible assets and goodwill totaling approximately $64.3 million, with consolidated carrying amounts of goodwill and intangible assets at $65.7 million as of December 31, 2024 [88]. - The Company acquired 100% of Indoff for approximately $72.6 million in cash, enhancing its presence in the North American MRO market [116]. - A strategic acquisition was completed in Q4 2024, enhancing the company's product portfolio and expected to add $50 million in annual revenue [219]. - The company is expanding its market presence in Europe, targeting a 30% increase in market share by 2026 [219]. Internal Controls and Compliance - Material weaknesses in internal control over financial reporting have been identified, which could impair the company's ability to produce timely and accurate financial statements [80]. - Ernst & Young LLP issued an adverse report on the effectiveness of the Company's internal control over financial reporting as of December 31, 2024 [183]. - The Company identified material weaknesses in the design and operation of Information Technology General Controls (ITGCs) as of December 31, 2024, affecting both Global Industrial and Indoff businesses [179]. - The Company has made substantial progress in remediating the identified material weaknesses, including hiring additional IT compliance personnel and engaging a third-party accounting advisory firm [186]. - Management's remediation plans are ongoing, and the Company will not conclude that the material weaknesses are fully remediated until controls are fully implemented and tested [189]. Future Outlook and Growth Projections - The company provided an optimistic outlook, projecting a revenue growth of 10-12% for 2025 [219]. - Research and development expenses increased by 18% in 2024, focusing on innovative technologies [219]. - The company plans to implement cost-saving measures aimed at reducing operational expenses by 5% in 2025 [219]. - User data indicated a 20% increase in active customers, reaching a total of 1.2 million by the end of 2024 [219]. Shareholder Returns and Equity - The company declared a regular cash dividend of $0.26 per share to common stock shareholders, payable on March 17, 2025 [110]. - The Company declared dividends of $1.00 per share in 2024, up from $0.80 per share in 2023, representing a 25% increase [228]. - The company paid dividends totaling $38.4 million in 2024, compared to $30.6 million in 2023, indicating an increase of approximately 25.5% [235]. - The total equity increased to $281.1 million by December 31, 2024, up from $255.2 million in 2023, representing a growth of about 10.5% [235].

Financial Performance - Global Industrial reported quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.28 per share, and down from $0.40 per share a year ago, representing an earnings surprise of -3.57% [1] - The company posted revenues of $302.3 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.23%, and down from $320.1 million year-over-year [2] - Over the last four quarters, Global Industrial has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Performance - Global Industrial shares have declined approximately 4.1% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The current Zacks Rank for Global Industrial is 5 (Strong Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $320.88 million, and for the current fiscal year, it is $1.66 on revenues of $1.37 billion [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock movements [6] Industry Context - The Industrial Services industry, to which Global Industrial belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - In 2024, the company generated revenue of $1.3 billion, an improvement of 3.3% driven by the addition of Indoff in May 2023 [11] - The fourth quarter revenue declined 5.6%, marking it as the weakest period in 2024, with continued underperformance in the core SMB customer base [11] - Gross margin was 33.8% in the fourth quarter, consistent year-over-year but declined sequentially due to increased transportation costs [12][26] - Operating income from continuing operations was $14.5 million in the fourth quarter, with an operating margin of 4.8% [33] Business Line Data and Key Metrics Changes - U.S. revenue was down 5.9% while Canada revenue was up 4.1% in local currency during the fourth quarter [22] - E-commerce and broader digital sales represented more than 60% of total annual order volume in the core global industrial business [24] - Private brand demand showed modest growth, with private brand sales in the low 40% range as a percentage of total sales in 2024 [24] Market Data and Key Metrics Changes - Revenue softness was most prominent in unmanaged small customer accounts, impacted by lower web traffic due to significant CPC inflation [22] - The start of 2025 showed top line volatility, largely due to the timing of the New Year's holiday and weather-related shutdowns [25] Company Strategy and Development Direction - The company aims to strengthen its market position, optimize customer acquisition, and capture share in the fragmented industrial distribution market [10] - Strategic initiatives include a focus on pricing analytics, driving e-procurement, enhancing customer experience, and aligning across the organization to drive top line performance [17][18] - The company is implementing a targeted account-based marketing program to deepen relationships with managed accounts [16] Management's Comments on Operating Environment and Future Outlook - Management noted encouraging signs of demand trends entering 2025, although performance has been inconsistent [11] - There is confidence in the management team and associates to improve performance and drive future success [7] - Management is closely monitoring trade policy and is prepared to take action as needed regarding tariffs and sourcing relationships [28][29] Other Important Information - The company ended 2024 with over $44 million in cash, no debt, and approximately $120.5 million of excess availability under its credit facility [35] - A quarterly dividend of $0.26 per share was declared, marking the 10th consecutive year of dividend increases [36] Q&A Session Summary Question: Any meaningful changes in the business after the election? - Revenue results were volatile during the quarter, with some positive customer sentiment observed recently [40] Question: Is positive customer sentiment seen mostly in larger accounts? - Larger accounts are showing some positive trends, while smaller customer segments are experiencing good retention and satisfaction [44] Question: When will the Salesforce rollout be fully implemented? - The full rollout is expected by summer 2025, with tangible results anticipated thereafter [48] Question: Discussion on inventory health and tariffs? - Inventory was managed ahead of the Lunar New Year, with increased valuation due to higher transit costs [51] Question: Expectations for gross margins going forward? - Management is focused on managing both price and cost to maintain gross margins, with confidence in their ability to manage this area [59]

Sales Performance - Fourth quarter sales decreased by 5.6% to $302.3 million compared to $320.1 million in the previous year[5] - Full year sales increased by 3.3% to $1.32 billion, driven by the acquisition of Indoff in 2023[6] Income and Profitability - Operating income from continuing operations decreased by 32.2% to $14.5 million in Q4 2024 compared to $21.4 million in Q4 2023[5] - Net income per diluted share from continuing operations decreased by 32.5% to $0.27 compared to $0.40 in the previous year[5] - The company reported a decrease in operating income from continuing operations for the full year by 16.6% to $80.5 million compared to $96.5 million in 2023[5] - Net income from continuing operations decreased to $60.7 million in 2024 from $70.7 million in 2023, a decline of approximately 14.2%[16] Cash Flow and Liquidity - The company ended 2024 with cash and cash equivalents of $44.6 million and total working capital of $184.2 million[6] - Operating cash flow generated by continuing operations in Q4 was approximately $15.8 million[6] - Net cash provided by operating activities from continuing operations dropped significantly to $50.4 million in 2024 compared to $112.0 million in 2023, a decrease of about 55.1%[16] - Cash and cash equivalents at the end of the period increased to $44.6 million in 2024 from $34.4 million in 2023, reflecting a growth of approximately 29.4%[16] - The net increase in cash for the year was $10.2 million in 2024, compared to an increase of $5.9 million in 2023, indicating improved cash flow management[16] Expenses and Investments - Depreciation and amortization expenses rose to $7.6 million in 2024 from $6.4 million in 2023, an increase of about 18.8%[16] - The company reported a net cash used in investing activities from continuing operations of $(3.8) million in 2024, down from $(76.2) million in 2023[16] - Dividends paid increased to $(38.4) million in 2024 from $(30.6) million in 2023, representing a rise of approximately 25.5%[16] - Stock-based compensation expenses decreased slightly to $2.8 million in 2024 from $3.0 million in 2023, a decline of about 6.7%[16] - The change in working capital showed a negative impact of $(22.3) million in 2024 compared to a positive change of $26.7 million in 2023[16] - The company made no cash acquisitions in 2024, contrasting with a cash outflow of $(72.3) million for the purchase of Indoff LLC in 2023[16] Strategic Goals - The company aims to enhance customer experience and capture market share through operational excellence and strategic investments[6] Dividends - The Board of Directors declared a cash dividend of $0.26 per share, payable on March 17, 2025[6]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $342.4 million, down 3.4% compared to Q3 2023 [15] - Gross profit was $116.3 million, flat year-over-year, with a gross margin of 34%, up 120 basis points from the previous year [16] - Operating income from continuing operations was $22.2 million, with an operating margin of 6.5% [18] - Selling, distribution, and administrative spending was $94.1 million, or 27.5% of net sales, an increase of 270 basis points from last year [17] - The company maintained a strong balance sheet with a current ratio of 2:1, $38.9 million in cash, and no debt [19] Business Line Data and Key Metrics Changes - The strategic account business showed solid growth, while the core SMB customer base experienced weak demand [5][6] - Enterprise business continued to grow, benefiting from both new account generation and existing account penetration [15] - Price was generally neutral in Q3, an improvement from earlier pricing headwinds [15] Market Data and Key Metrics Changes - U.S. revenue was down 3.4%, and Canadian revenue was down 2.9% in local currency [15] - The demand environment remained soft, with revenue pacing down mid-single digits into Q4 [15] Company Strategy and Development Direction - The company is focusing on enhancing customer experience and implementing a new CRM platform to drive engagement [7][10] - There is a renewed focus on serving core customers and improving collaboration between sales and marketing [8][9] - The company aims to better communicate its value proposition and enhance its product offerings to align with technically oriented customers [9] Management Comments on Operating Environment and Future Outlook - Management acknowledged disappointment with recent results but emphasized the potential for long-term growth [7][13] - The macro environment remains challenging, but the company is focusing on operational excellence and customer experience [13] - Management believes that the refined focus on core product offerings will take time to gain traction but will position the company well for future financial performance [13] Other Important Information - The company held its Annual Global Industrial National Trade Show in August, which provided insights from customers [11] - Lisa Armstrong joined the senior management team as CMO, bringing expertise in B2B marketing [12] Q&A Session Summary Question: What are you seeing in terms of average order value and frequency in your core SMB segment? - Management noted that both order frequency and average order value are down slightly, with fewer large projects being initiated by customers [22] Question: Are you looking to do more advertising to better communicate your value proposition? - The company has improved its website to highlight product benefits and is reallocating marketing resources to drive higher returns [24][25] Question: Which growth initiatives will be most impactful in the near term? - The implementation of Salesforce and Salesforce marketing is expected to drive significant benefits for the sales team [26] Question: Can you throttle back SG&A spending if conditions remain soft? - Management is focused on cost controls and discretionary spending but noted that fixed costs will naturally trend with revenue [30][31]