NYSE$GIC

Global Industrial Company · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Systemax's first quarter earnings decreased due to the initial impact of COVID-19.

Systemax reported a decrease in consolidated sales by 2.1% to $227.3 million. Operating income also decreased by 12.9% to $11.5 million. Net income per diluted share from continuing operations decreased by 19.2% to $0.21.

  • Consolidated sales decreased 2.1% to $227.3 million.
  • Consolidated operating income decreased 12.9% to $11.5 million.
  • Net income per diluted share from continuing operations decreased 19.2% to $0.21.
  • The company's e-commerce centric business model provides a competitive advantage.

Headline financials

Total Revenue

$227M

Previous: $232M-2.1%
EPS (adj)

$0.21

Previous: $0.29-27.6%
Capital Expenditures

-$300K

Previous: -$1M+70.0%
Free Cash Flow

$7.9M

Previous: $8.7M-9.2%
Net Income

$8.2M

Previous: $9.7M-15.5%
Operating Income

$11.5M

Previous: $13.2M-12.9%
Gross Profit

$76.7M

Previous: $80.3M-4.5%
Cash & Equivalents

$64.1M

Previous: $70M-8.4%
Total Assets

$361M

Previous: $358M+0.9%
Stock-Based Comp

$1M

Previous: $1.5M-33.3%

Revenue & EPS history

Global Industrial · Revenue · Quarterly

$227M

Q1 2020-2.1%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The company anticipates they will be able to ship a portion of their backlog in the second quarter as visibility into their supply chain and product lead times has improved.

Tailwinds

  • Strong platform to manage cost structure.
  • Investing in customer focused strategy.
  • Committed to delivering higher service levels.
  • Committed to greater end-to-end transaction transparency to customers.
  • Strong and liquid balance sheet provides significant flexibility.

Headwinds

  • Revenue for the quarter was down 2%.
  • Impact of business shutdowns and a shift in customer priorities into sourcing cleaning, personal protection equipment, and other direct response COVID related items.
  • Worldwide constrained availability of many products.
  • Backlog has increased substantially as they were unable to fulfill many orders.
  • Recorded low double-digit revenue declines during the closing weeks of the quarter which now appear to have stabilized at approximately 20% in April.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.4%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+0.7%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+32.5%

Q2 2015

Best reaction

-27.5%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-10.9%-6.9%
Q4 2025+7.6%+8.9%+0.5%
Q3 2025-18.2%-19.8%-18.4%
Q1 2025+15.7%+15.4%+17.4%
Q4 2024-0.4%-4.2%-7.2%
Q3 2024-21.2%-19.8%-14.4%
Q2 2024-0.9%-5.5%-5.7%
Q1 2024-12.4%-11.7%-13.3%
Q4 2023-3.7%+1.6%+2.2%
Q3 2023+10.4%+8.5%+11.7%
Q2 2023+4.0%+11.7%+18.7%
Q1 2023-14.3%-12.6%-4.4%
Q4 2022-0.8%-3.8%-12.0%
Q3 2022-27.5%-25.2%-21.1%
Q2 2022-12.4%-10.0%-17.7%
Q1 2022+17.6%+9.3%+15.2%
Q4 2021-1.2%-7.6%+0.7%
Q3 2021-4.2%-1.2%-5.7%
Q2 2021+2.0%-0.2%+0.6%
Q1 2021-23.1%-19.8%-20.9%
Q4 2020-15.8%-18.2%-10.9%
Q3 2020+23.9%+21.2%+33.7%
Q2 2020+17.7%+14.8%+11.6%
Q1 2020+3.7%+1.0%+5.5%
Q4 2019-4.3%-8.2%-17.0%
Q3 2019-10.0%-12.9%-5.9%
Q2 2019+14.5%+6.8%+5.4%
Q1 2019+4.2%+3.0%-10.2%
Q4 2018-15.7%-13.6%-10.6%
Q3 2018+25.1%+19.7%+8.6%
Q2 2018+5.1%-12.9%-16.5%
Q1 2018-2.4%-2.4%+5.1%
Q4 2017-7.1%-6.0%-7.2%
Q3 2017+13.8%+9.4%+9.5%
Q2 2017+29.5%+43.2%+34.9%
Q1 2017+29.3%+29.7%+31.0%
Q4 2016+12.9%+13.8%+38.7%
Q3 2016-5.3%-4.1%+11.2%
Q2 2016+2.2%+0.6%-7.1%
Q1 2016-1.5%
Q4 2015+5.3%
Q3 2015-5.6%
Q2 2015+32.5%
Q1 2015-3.6%
Q4 2014+3.3%
Q3 2014+0.2%
Q2 2014+9.2%
Q1 2014-3.1%
Q4 2013+6.5%
Q3 2013+0.4%
Q2 2013+1.4%
Q1 2013-3.7%
Q4 2012-0.8%
Q3 2012-4.3%
Q4 2011+2.5%
Q2 2012+2.5%
Q1 2011-3.7%
Q1 2012+2.3%
Q4 2009+1.9%
Q3 2010+4.0%
Q3 2011+4.0%
Q2 2011+2.7%
Q2 2010+2.7%
Q4 2010+2.7%
Q1 2010-2.8%

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