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Global Industrial Company Reports Third Quarter 2024 Financial Results

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Global Industrial Company (NYSE:GIC) reported Q3 2024 financial results with sales of $342.4 million, down 3.4% from last year. Operating income decreased 21.3% to $22.2 million with a 6.5% operating margin. The company's gross margin improved to 34.0% from 32.8% last year. Net income per diluted share declined 18.5% to $0.44. Year-to-date sales increased 6.2% to $1.0 billion, though excluding the Indoff acquisition, sales growth was only 0.7%. The company maintains a strong balance sheet with $38.9 million in cash and declared a $0.25 dividend per share.

Global Industrial Company (NYSE:GIC) ha riportato i risultati finanziari per il terzo trimestre 2024 con vendite di $342,4 milioni, in calo del 3,4% rispetto all'anno precedente. Il reddito operativo è diminuito del 21,3% a $22,2 milioni con un margine operativo del 6,5%. Il margine lordo dell'azienda è migliorato al 34,0% rispetto al 32,8% dell'anno scorso. L'utile netto per azione diluita è diminuito del 18,5% a $0,44. Le vendite da inizio anno sono aumentate del 6,2% a $1,0 miliardo, anche se escludendo l'acquisizione di Indoff, la crescita delle vendite è stata solo dello 0,7%. L'azienda mantiene un bilancio solido con $38,9 milioni in contante e ha dichiarato un dividendo di $0,25 per azione.

Global Industrial Company (NYSE:GIC) reportó los resultados financieros del tercer trimestre de 2024 con ventas de $342.4 millones, una disminución del 3.4% en comparación con el año anterior. El ingreso operativo disminuyó un 21.3% a $22.2 millones con un margen operativo del 6.5%. El margen bruto de la compañía mejoró al 34.0% desde el 32.8% del año pasado. El ingreso neto por acción diluida disminuyó un 18.5% a $0.44. Las ventas acumuladas en lo que va del año aumentaron un 6.2% a $1.0 mil millones, aunque excluyendo la adquisición de Indoff, el crecimiento en las ventas fue solo del 0.7%. La compañía mantiene un balance sólido con $38.9 millones en efectivo y declaró un dividendo de $0.25 por acción.

글로벌 산업 회사 (NYSE:GIC)가 2024년 3분기 재무 결과를 발표했습니다. 매출은 $342.4백만으로 작년 대비 3.4% 감소했습니다. 운영 소득은 21.3% 감소하여 $22.2백만에 이르렀으며 운영 마진은 6.5%입니다. 회사의 총 마진은 작년의 32.8%에서 34.0%로 개선되었습니다. 희석 주당 순익은 18.5% 감소하여 $0.44입니다. 연초 대비 매출은 6.2% 증가하여 $1.0억에 달하였으나 Indoff 인수를 제외하면 매출 성장률은 0.7%에 불과했습니다. 회사는 $38.9백만의 현금을 보유하여 안정적인 대차 대조표를 유지하고 있으며 주당 $0.25의 배당금을 선언했습니다.

Global Industrial Company (NYSE:GIC) a annoncé les résultats financiers pour le troisième trimestre 2024, avec des ventes de $342,4 millions, en baisse de 3,4% par rapport à l'année précédente. Le bénéfice d'exploitation a diminué de 21,3% pour atteindre $22,2 millions, avec une marge opérationnelle de 6,5%. La marge brute de l'entreprise s'est améliorée à 34,0% contre 32,8% l'an dernier. Le revenu net par action diluée a chuté de 18,5% pour atteindre $0,44. Les ventes cumulées depuis le début de l'année ont augmenté de 6,2% pour atteindre $1,0 milliard, mais en excluant l'acquisition d'Indoff, la croissance des ventes n'était que de 0,7%. L'entreprise maintient un bilan solide avec $38,9 millions en liquidités et a déclaré un dividende de $0,25 par action.

Global Industrial Company (NYSE:GIC) berichtete über die finanziellen Ergebnisse für das 3. Quartal 2024 mit einem Umsatz von $342,4 Millionen, was einem Rückgang von 3,4% im Vergleich zum Vorjahr entspricht. Der Betriebsgewinn sank um 21,3% auf $22,2 Millionen bei einer Betriebsgewinnmarge von 6,5%. Die Bruttomarge des Unternehmens verbesserte sich auf 34,0% von 32,8% im Vorjahr. Der Nettogewinn pro verwässerter Aktie fiel um 18,5% auf $0,44. Der Umsatz seit Jahresbeginn stieg um 6,2% auf $1,0 Milliarden, wobei das Umsatzwachstum ohne die Indoff-Akquisition nur 0,7% betrug. Das Unternehmen weist eine starke Bilanz mit $38,9 Millionen in bar auf und erklärte eine Dividende von $0,25 pro Aktie.

Positive
  • Gross margin improved to 34.0% from 32.8% year-over-year
  • Year-to-date sales increased 6.2% to $1.0 billion
  • Strong balance sheet with $38.9 million cash and $120.6 million credit facility availability
  • Strategic account business showed strong growth
Negative
  • Q3 sales decreased 3.4% to $342.4 million
  • Operating income declined 21.3% to $22.2 million
  • Net income per diluted share decreased 18.5% to $0.44
  • Operating margin declined to 6.5% from 8.0% last year
  • Weak demand environment and softness in core small and medium business customer base

Insights

The Q3 results reveal concerning trends for Global Industrial Company. $342.4M in quarterly sales marks a 3.4% decline year-over-year, while operating income dropped significantly by 21.3% to $22.2M. The operating margin compression from 8.0% to 6.5% signals efficiency challenges.

The bright spot is gross margin improvement to 34.0%, up from 32.8%. However, weak demand from core SMB customers and reliance on lower-margin strategic accounts for growth suggests continued pressure on profitability. The healthy balance sheet with $38.9M cash and $120.6M credit availability provides stability, but operational improvements are needed to reverse the negative earnings trajectory.

Sales of $342.4 Million

Operating Income of $22.2 Million; Operating Margin 6.5%

Board Declares $0.25 Dividend

PORT WASHINGTON, NY / ACCESSWIRE / October 29, 2024 / Global Industrial Company (NYSE:GIC) today announced financial results for the third quarter ended September 30, 2024.

Performance Summary*
(U.S. dollars in millions, except per share data)

Highlights

Quarter Ended
September 30,

Nine Months Ended
September 30,

2024

2023

2024

2023

Net sales

$

342.4

$

354.6

$

1,013.6

$

954.2

Gross profit

$

116.3

$

116.3

$

349.7

$

327.6

Gross margin

34.0

%

32.8

%

34.5

%

34.3

%

Operating income from continuing operations

$

22.2

$

28.2

$

66.0

$

75.1

Operating margin

6.5

%

8.0

%

6.5

%

7.9

%

Net income from continuing operations

$

16.8

$

20.7

$

50.1

$

55.5

Net income per diluted share from continuing operations

$

0.44

$

0.54

$

1.30

$

1.44

Net income (loss) from discontinued operations

$

0.0

$

0.0

$

0.2

$

(0.1

)

Net income (loss) per diluted share from discontinued operations

$

0.00

$

0.00

$

0.01

$

0.00

* Global Industrial Company manages its business and reports using a 52-53 week fiscal year that ends at midnight on the Saturday closest to December 31. For clarity of presentation, fiscal years and quarters are described as if they ended on the last day of the respective calendar month. The actual fiscal quarters ended September 28, 2024 and September 30, 2023, respectively. The third quarters of both 2024 and 2023 included 13 weeks and the first nine months of both 2024 and 2023 included 39 weeks.

Average daily sales is calculated based upon the number of selling days in each period, with Canadian sales converted to US dollars using the current year's average exchange rate. There were 63 selling days in the U.S. in the third quarters of 2024 and 2023, respectively, and there were 191 selling days in the U.S. for the nine months ended 2024 and 2023, respectively. There were 62 selling days in Canada in the third quarters of 2024 and 2023, respectively, and there were 188 selling days in Canada for the nine months ended 2024 and 2023, respectively.

Third Quarter 2024 Financial Summary:

  • Consolidated sales decreased 3.4% to $342.4 million compared to $354.6 million last year.

  • Consolidated gross margin increased to 34.0% compared to 32.8% last year.

  • Consolidated operating income from continuing operations decreased 21.3% to $22.2 million compared to $28.2 million last year.

  • Net income per diluted share from continuing operations decreased 18.5% to $0.44 compared to $0.54 last year.

Year to Date Q3 2024 Financial Summary:

  • Consolidated sales increased 6.2% to $1.0 billion compared to $954.2 million last year. Excluding Indoff, acquired on May 19, 2023, sales increased 0.7%.

  • Consolidated gross margin increased to 34.5% compared to 34.3% last year. Excluding Indoff, gross margin was 36.1%, an 80 basis point improvement over prior year.

  • Consolidated operating income from continuing operations decreased 12.1% to $66.0 million compared to $75.1 million last year. Excluding Indoff, operating income was $61.0 million, a decrease of 14.7%.

  • Net income per diluted share from continuing operations decreased 9.7% to $1.30 compared to $1.44 last year.

Richard Leeds, Executive Chairman of the Board and Interim Chief Executive Officer, said, "Third quarter results reflect a weak demand environment and continued softness in our core small and medium business customer base. Our strategic account business delivered another quarter of strong growth and customer retention rates remain healthy."

"We have a terrific business and a talented team. However, we are disappointed with recent results and have identified key areas for improvement. We are addressing this through a renewed focus on engaging and serving core customers, better communicating our value proposition to the market, and playing to our competitive strengths. As our efforts gain traction over the next few quarters, and the market environment improves, we will be in a stronger position to enhance our performance. We continue to maintain an exceptional balance sheet, and make further investments in our growth initiatives to drive long-term value for our stockholders."

At September 30, 2024, the Company had total working capital of $180.9 million, cash and cash equivalents of $38.9 million, and excess availability under its credit facility of approximately $120.6 million. Operating cash flow provided by continuing operations in the quarter was $9.6 million. The Company's Board of Directors has declared a cash dividend of $0.25 per share to common stock shareholders of record at the close of business on November 11, 2024, payable on November 18, 2024.

Earnings Conference Call Details

Global Industrial Company will host a conference call and question and answer session on its third quarter 2024 results today, October 29, 2024 at 5:00 p.m. Eastern Time. A live webcast of the remarks will be available on the Company's website at https://investors.globalindustrial.com in the events section. The webcast will also be archived on the website for approximately 90 days.

About Global Industrial Company

Global Industrial Company (NYSE:GIC), through its operating subsidiaries, is a value-added distributor. For 75 years, Global Industrial has gone the extra mile for its customers, currently offering hundreds of thousands of industrial and MRO products needed to run businesses and facilities. Global Industrial is committed to its customer-centric strategy, and utilizes a team of subject matter experts, products from its Global Industrial Exclusive Brands TM , and national vendor relationships to help customers succeed. At Global Industrial, "We Can Supply That ® ".

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission or otherwise. Any such statements that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on management's estimates, assumptions and projections and are not guarantees of future performance. When used in this release, the words "anticipates," "believes," "estimates," "expects," "intends," and "plans" and variations thereof and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this report are based on the Company's beliefs and expectations as of the date of this report and are subject to risks and uncertainties which may have a significant impact on the Company's business, operating results or financial condition. Investors are cautioned that these forward-looking statements are inherently uncertain and undue reliance should not be placed on them. Important risk factors that may affect our future results of operations and financial condition are detailed from time to time in our Securities and Exchange Commission filings. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected events, except as may be required by applicable law.

Investor/Media Contacts:
Mike Smargiassi
The Plunkett Group
212-739-6729
mike@theplunkettgroup.com

GLOBAL INDUSTRIAL COMPANY
Condensed Consolidated Statements of Operations - Unaudited
(In millions, except per share amounts)

Quarter Ended
September 30,

Nine Months Ended
September 30,

2024

2023

2024

2023

Net sales

$

342.4

$

354.6

$

1,013.6

$

954.2

Cost of sales

226.1

238.3

663.9

626.6

Gross profit

116.3

116.3

349.7

327.6

Gross margin

34.0

%

32.8

%

34.5

%

34.3

%

Selling, distribution and administrative expenses

94.1

88.1

283.7

252.5

Operating income from continuing operations

22.2

28.2

66.0

75.1

Operating margin

6.5

%

8.0

%

6.5

%

7.9

%

Interest and other expense, net

0.0

0.7

0.3

1.2

Income from continuing operations before income taxes

22.2

27.5

65.7

73.9

Provision for income taxes

5.4

6.8

15.6

18.4

Net income from continuing operations

16.8

20.7

50.1

55.5

Net income (loss) from discontinued operations

0.0

0.0

0.2

(0.1

)

Net income

$

16.8

$

20.7

$

50.3

$

55.4

Net income per common share from continuing operations:

Basic

$

0.44

$

0.54

$

1.30

$

1.45

Diluted

$

0.44

$

0.54

$

1.30

$

1.44

Net income (loss) per common share from discontinued operations:

Basic

$

0.00

$

0.00

$

0.01

$

0.00

Diluted

$

0.00

$

0.00

$

0.01

$

0.00

Net income per common share:

Basic

$

0.44

$

0.54

$

1.31

$

1.45

Diluted

$

0.44

$

0.54

$

1.31

$

1.44

Weighted average common and common equivalent shares:

Basic

38.3

38.1

38.2

38.1

Diluted

38.4

38.2

38.4

38.2

GLOBAL INDUSTRIAL COMPANY
Condensed Consolidated Balance Sheets - Unaudited
(In millions)

September 30,

December 31,

2024

2023

Current assets:

Cash and cash equivalents

$

38.9

$

34.4

Accounts receivable, net

140.1

130.7

Inventories

165.3

150.8

Prepaid expenses and other current assets

14.6

13.9

Total current assets

358.9

329.8

Property, plant and equipment, net

19.7

20.0

Operating lease right-of-use assets

75.7

84.4

Goodwill and intangibles

66.5

69.3

Other assets

10.8

9.9

Total assets

$

531.6

$

513.4

Current liabilities:

Accounts payable and accrued expenses

$

163.7

$

160.1

Operating lease liabilities

14.3

14.1

Total current liabilities

178.0

174.2

Operating lease liabilities

72.0

81.4

Other liabilities

2.4

2.6

Shareholders' equity

279.2

255.2

Total liabilities and shareholders' equity

$

531.6

$

513.4

GLOBAL INDUSTRIAL COMPANY
Condensed Consolidated Statements of Cash Flows - Unaudited
(In millions)

Nine Months Ended
September 30,

2024

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income from continuing operations

$

50.1

$

55.5

Adjustments to reconcile net income from continuing operations to net cash provided by (used in) operating activities:

Depreciation and amortization

5.8

4.5

Stock-based compensation

1.1

2.1

Benefit from deferred taxes

(0.1

)

(0.1

)

Change in working capital

(24.2

)

39.3

Other, net

1.9

2.5

Net cash provided by operating activities from continuing operations

34.6

103.8

Net cash provided by (used in) operating activities from discontinued operations

0.2

(0.1

)

Net cash provided by operating activities

34.8

103.7

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property, plant and equipment

(3.1

)

(3.3

)

Purchase of Indoff LLC, net of cash acquired

0.0

(72.3

)

Net cash used in investing activities

(3.1

)

(75.6

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Net repayments of short-term borrowings

0.0

(0.6

)

Dividends paid

(28.8

)

(23.0

)

Stock-based compensation share issuances, net

1.7

1.3

Net cash used in financing activities

(27.1

)

(22.3

)

EFFECT OF EXCHANGE RATE CHANGES ON CASH

(0.1

)

0.0

NET INCREASE IN CASH

4.5

5.8

CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD

34.4

28.5

CASH AND CASH EQUIVALENTS - END OF PERIOD

$

38.9

$

34.3

SOURCE: Global Industrial Company



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FAQ

What was Global Industrial Company's (GIC) revenue in Q3 2024?

Global Industrial Company reported revenue of $342.4 million in Q3 2024, representing a 3.4% decrease from $354.6 million in Q3 2023.

What is GIC's dividend payment for Q3 2024?

Global Industrial Company declared a cash dividend of $0.25 per share, payable on November 18, 2024, to shareholders of record as of November 11, 2024.

How much did GIC's earnings per share decline in Q3 2024?

GIC's net income per diluted share from continuing operations decreased 18.5% to $0.44 in Q3 2024, compared to $0.54 in Q3 2023.

What was Global Industrial's (GIC) gross margin in Q3 2024?

Global Industrial Company's gross margin in Q3 2024 was 34.0%, an improvement from 32.8% in Q3 2023.

Global Industrial Company

NYSE:GIC

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1.05B
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Industrial Distribution
Wholesale-industrial Machinery & Equipment
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