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Systemax(GIC) - 2024 Q3 - Quarterly Results
GICSystemax(GIC)2024-10-29 20:55

Financial Performance - Consolidated sales decreased 3.4% to 342.4millioncomparedto342.4 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 22.2millioncomparedto22.2 million compared to 28.2 million last year[3] - Net income per diluted share from continuing operations decreased 18.5% to 0.44comparedto0.44 compared to 0.54 last year[3] - Year-to-date consolidated sales increased 6.2% to 1.0billioncomparedto1.0 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 50.1millionfrom50.1 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 180.9million,withcashandcashequivalentsof180.9 million, with cash and cash equivalents of 38.9 million[5] - Operating cash flow provided by continuing operations in the quarter was 9.6million[5]−Netcashprovidedbyoperatingactivitiesfromcontinuingoperationswas9.6 million[5] - Net cash provided by operating activities from continuing operations was 34.6 million, down from 103.8million,adecreaseofabout66.7103.8 million, a decrease of about 66.7%[11] - Cash and cash equivalents at the end of the period rose to 38.9 million from 34.3million,anincreaseofabout16.934.3 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 39.3millioninthepreviousyear[11]DividendsandStockholderReturns−TheBoardofDirectorsdeclaredacashdividendof39.3 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 28.8millionfrom28.8 million from 23.0 million, an increase of approximately 25.2%[11] Investment and Expenses - Net cash used in investing activities was 3.1million,significantlylowerthan3.1 million, significantly lower than 75.6 million in the previous period, indicating a reduction of about 95.9%[11] - Depreciation and amortization increased to 5.8millionfrom5.8 million from 4.5 million, reflecting a rise of approximately 29.1%[11] - Stock-based compensation decreased to 1.1millionfrom1.1 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 72.3millioninthepreviousperiod[11]MarketOutlookandStrategy−Thecompanyidentifiedkeyareasforimprovementandplanstoenhanceperformanceasmarketconditionsimprove[5]ForeignExchangeImpact−Theeffectofexchangeratechangesoncashwas72.3 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]