Core Viewpoint - Global Industrial (GIC) reported quarterly earnings of $0.44 per share, missing the Zacks Consensus Estimate of $0.58 per share, representing a year-over-year decrease from $0.54 per share [1][2] Financial Performance - The company posted revenues of $342.4 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.12% and down from $354.6 million a year ago [2] - Over the last four quarters, Global Industrial has not surpassed consensus EPS estimates and has topped consensus revenue estimates only twice [2] Stock Performance - Global Industrial shares have declined approximately 14.3% since the beginning of the year, contrasting with the S&P 500's gain of 22.1% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $325.12 million, and for the current fiscal year, it is $1.94 on revenues of $1.35 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 sector, to which Global Industrial belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Performance - Consolidated sales decreased 3.4% to $342.4 million compared to $354.6 million last year[85] - Consolidated operating income from continuing operations decreased 21.3% to $22.2 million compared to $28.2 million last year[85] - Net income per diluted share from continuing operations decreased 18.5% to $0.44 compared to $0.54 last year[85] - Consolidated net sales decreased by 3.4% to $342.4 million for the three months ended September 30, 2024, while increasing by 6.2% to $1,013.6 million for the nine months[92] - Operating income from continuing operations decreased by 21.3% to $22.2 million for the three months and by 12.1% to $66.0 million for the nine months[100] - Net income from continuing operations fell by 18.8% to $16.8 million for the three months and by 9.7% to $50.1 million for the nine months, with net income margin remaining at 4.9%[100] Gross Margin - Consolidated gross margin increased to 34.0%, a 120 basis point improvement from the prior year quarter results[79] - Gross margin improved by 120 basis points to 34.0% for the third quarter of 2024 and by 20 basis points to 34.5% for the nine months[95] - Year-to-date consolidated gross margin increased to 34.5% compared to 34.3% last year[86] - Excluding Indoff, year-to-date gross margin was 36.1%, an 80 basis point improvement over the prior year[86] Expenses - Selling, distribution, and administrative (SD&A) costs increased by 6.8% to $94.1 million for the three months and by 12.4% to $283.7 million for the nine months, with SD&A as a percentage of net sales rising to 27.5%[97][98] - The Company expects elevated selling, distribution and administrative expenses in 2024 due to planned investments and integration of Indoff[79] Cash Flow and Liquidity - Cash and cash equivalents increased by $4.5 million to $38.9 million as of September 30, 2024, compared to $34.4 million at the end of 2023[104] - Net cash provided by operating activities from continuing operations was $34.6 million for the nine months ended September 30, 2024, down from $103.8 million in 2023[108] - Net cash used in investing activities totaled $3.1 million for warehouse machinery and equipment, significantly lower than $75.6 million in 2023, which included the purchase of Indoff[109] - Net cash used in financing activities totaled $27.1 million in 2024, primarily for quarterly dividends of $0.25 per share, totaling approximately $28.8 million[110] - As of September 30, 2024, the company had over $156 million of liquidity, including cash and undrawn lines of credit in the U.S.[117] - The company expects that its cash balances and future cash flows will be sufficient to fund working capital and other cash requirements for at least the next twelve months[116] Capital Expenditures and Debt - The company anticipates capital expenditures in the range of $3.0 to $5.0 million for 2024[115] - The company was obligated for approximately $104.9 million under non-cancelable operating and finance leases as of September 30, 2024[118] - The company had no outstanding debt under its variable rate credit facility as of September 30, 2024[123] - Total outstanding letters of credit amounted to $1.6 million as of September 30, 2024[112] - The company maintains a $125.0 million secured revolving credit facility, with total availability of $122.2 million as of September 30, 2024[112] Acquisition and Integration - Excluding Indoff, acquired on May 19, 2023, year-to-date sales increased 0.7%[86] - Indoff LLC represented approximately 7% and 12% of the company's consolidated total assets and net sales, respectively, at September 30, 2024[127] - The company is actively implementing changes to strengthen its internal controls over financial reporting following the acquisition of Indoff LLC[131] Management Focus - Management continues to focus on margin profile management amid inflationary pressures and elevated ocean freight costs[79]

Financial Performance - Consolidated sales decreased 3.4% to $342.4 million compared to $354.6 million last year[3] - Consolidated gross margin increased to 34.0% compared to 32.8% last year[3] - Consolidated operating income from continuing operations decreased 21.3% to $22.2 million compared to $28.2 million last year[3] - Net income per diluted share from continuing operations decreased 18.5% to $0.44 compared to $0.54 last year[3] - Year-to-date consolidated sales increased 6.2% to $1.0 billion compared to $954.2 million last year[4] - Year-to-date consolidated gross margin increased to 34.5% compared to 34.3% last year[4] - Net income from continuing operations decreased to $50.1 million from $55.5 million year-over-year, representing a decline of approximately 8.1%[11] Cash Flow and Working Capital - Total working capital as of September 30, 2024, was $180.9 million, with cash and cash equivalents of $38.9 million[5] - Operating cash flow provided by continuing operations in the quarter was $9.6 million[5] - Net cash provided by operating activities from continuing operations was $34.6 million, down from $103.8 million, a decrease of about 66.7%[11] - Cash and cash equivalents at the end of the period rose to $38.9 million from $34.3 million, an increase of about 16.9%[11] - The company reported a change in working capital of $(24.2) million compared to a positive change of $39.3 million in the previous year[11] Dividends and Stockholder Returns - The Board of Directors declared a cash dividend of $0.25 per share payable on November 18, 2024[5] - Dividends paid increased to $28.8 million from $23.0 million, an increase of approximately 25.2%[11] Investment and Expenses - Net cash used in investing activities was $3.1 million, significantly lower than $75.6 million in the previous period, indicating a reduction of about 95.9%[11] - Depreciation and amortization increased to $5.8 million from $4.5 million, reflecting a rise of approximately 29.1%[11] - Stock-based compensation decreased to $1.1 million from $2.1 million, a decline of approximately 47.6%[11] - The company made no cash acquisition for Indoff LLC, contrasting with a cash outflow of $72.3 million in the previous period[11] Market Outlook and Strategy - The company identified key areas for improvement and plans to enhance performance as market conditions improve[5] Foreign Exchange Impact - The effect of exchange rate changes on cash was $(0.1) million, compared to no effect in the previous period[11]

Core Insights - Investors in Global Industrial Company (GIC) should monitor stock movements due to high implied volatility in options, particularly the Sep. 20, 2024 $40 Call option [1] Company Analysis - Global Industrial is currently rated as Zacks Rank 3 (Hold) within the Industrial Services industry, which is in the bottom 11% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have increased earnings estimates for the current quarter, while one analyst has decreased the estimates, leading to a reduction in the Zacks Consensus Estimate from 63 cents per share to 61 cents [3] Options Market Insights - The high implied volatility suggests that options traders anticipate a significant price movement for Global Industrial shares, indicating potential trading opportunities [4] - Seasoned options traders often seek high implied volatility options to sell premium, aiming for the underlying stock to not move as much as expected by expiration [4]

Financial Data and Key Metrics Changes - Second quarter revenue improved 6.8% to approximately $348 million, with organic revenue up 1.8% [27][43] - Gross profit for the quarter was $122.5 million, up 8.5% from last year, and gross margin was 35.2%, an increase of 50 basis points year-over-year [30][4] - Operating income from continuing operations was $26.4 million, with an operating margin of 7.6% [44] Business Line Data and Key Metrics Changes - Managed sales channels led performance, with strong growth in the enterprise business, while smaller customers and e-commerce channels showed softer performance [45][43] - SG&A spending was $96.1 million, or 27.6% of net sales, an increase of 190 basis points from last year, reflecting planned investments in sales and marketing initiatives [7][41] Market Data and Key Metrics Changes - Organic U.S. revenue was up 2.1%, while Canada revenue was down 1.1% in local currency [43] - Customer satisfaction scores remained above 90%, indicating a strong commitment to customer experience [28] Company Strategy and Development Direction - The company is focused on investments that strengthen competitive position and capture market share, with a disciplined approach to cost management [5][41] - The management team is confident in their ability to maintain gross margins despite rising ocean freight costs and fluctuating market conditions [37][51] Management Comments on Operating Environment and Future Outlook - The management noted a cautious customer purchasing behavior and mixed revenue performance, with expectations for SG&A levels to moderate in the second half of the year [4][19] - There is uncertainty in the market, with fluctuations in organic growth and key indicators moving in different directions [46][54] Other Important Information - The company maintains a strong balance sheet with a current ratio of 1.9:1, $38.8 million in cash, and no debt [15] - A quarterly dividend of $0.25 per share was declared by the Board of Directors [31] Q&A Session Summary Question: Are there certain customers, products, or end markets that stand out as being particularly weak? - Management acknowledged mixed performance across segments, with smaller customers and e-commerce channels showing softness [45] Question: What about the outlook for the second half? - Management indicated uncertainty in forecasting, with some weeks showing positive trends and others negative [46] Question: Is the company considering controlling costs in the second half given the uncertain revenue outlook? - Management plans to continue with planned investments while moderating SG&A levels from Q2 [53][47] Question: Can you elaborate on the gross margin improvements and the impact of ocean freight costs? - Management highlighted proactive price management and the introduction of private label products as key drivers for gross margin improvements, while acknowledging the sustained rise in ocean freight costs [56][51]

Global Industrial (GIC) came out with quarterly earnings of $0.52 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for non-recurring items. Global Industrial, which belongs to the Zacks Industrial Services industry, posted revenues of $347.8 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.30%. This compares to year-ago revenues of $325.8 million. The company has topped consensus revenu ...

Results of Operations Three and Six Months Ended June 30, 2024 compared to the Three and Six Months Ended June 30, 2023 | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------------------|----------------|-----------------------|-------------------------|--------------|-------------------------|-----------------------| | | Three \n2024 | Months Ended \n2023 | June 30, \n% Change | Six \n2024 | Months Ended \n2023 | June 30, \n% Change | | Net sales of continuin ...

Exhibit 99.1 GLOBAL INDUSTRIAL COMPANY REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS Sales of $347.8 Million, Increase 6.8% Operating Income of $26.4 Million; Operating Margin 7.6% Board Declares $0.25 Dividend PORT WASHINGTON, NY, July 30, 2024 – Global Industrial Company (NYSE: GIC) today announced financial results for the second quarter ended June 30, 2024. | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------------------------------------------|-------- ...

Global Industrial Company (NYSE:GIC) Q1 2024 Earnings Conference Call April 30, 2024 5:00 PM ET Company Participants Mike Smargiassi - Investor Relations, The Plunkett Group Barry Litwin - Chief Executive Officer Tex Clark - Senior Vice President and Chief Financial Officer Conference Call Participants Lauren Ravalli - William Blair & Co. Anthony Lebiedzinski - Sidoti & Company Operator Good afternoon, ladies and gentlemen, and welcome to Global Industrial's First Quarter 2024 Earnings Call. At this time, I ...

Global Industrial (GIC) came out with quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -10.53%. A quarter ago, it was expected that this technology products marketer would post earnings of $0.40 per share when it actually produced earnings of $0.40, delivering no surprise.Over the last four quarters ...