Systemax(GIC)2025-04-30 21:24Revenue and Sales Performance - The Company generated revenue of 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 0.34 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 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 6.3 million in Q1 2024, primarily due to changes in working capital[77]. - Cash and cash equivalents decreased by 44.6 million as of December 31, 2024, to 156 million of liquidity (cash and undrawn line of credit) in the U.S. as of March 31, 2025[85]. - The company maintains a 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 3.0 million for 2025, with no contractual commitments at this time[83]. - Regular quarterly dividends in Q1 2025 totaled approximately 0.26 per common share[79].