NYSE$GIC

Global Industrial Company · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported record third quarter results with sales increasing and EPS up.

Systemax Inc. reported an exceptional third quarter performance, achieving an all-time high in quarterly operating profit and operating margin. Revenue increased 17%, operating income improved 70% to more than $31 million and net income per diluted share from continuing operations increased 77.8% to $0.64.

  • Consolidated sales increased 17.1% to $285.7 million.
  • Consolidated operating income grew 69.7% to $31.4 million.
  • Net income per diluted share from continuing operations increased 77.8% to $0.64.
  • The Board of Directors has declared a cash dividend of $0.14 per share.

Headline financials

Total Revenue

$286M

Previous: $244M+17.1%
EPS (adj)

$0.64

Previous: $0.36+77.8%
Operating Margin

11.0%

Previous: 7.6%+44.7%
Capital Expenditures

-$1.2M

Previous: -$6.2M+80.6%
Free Cash Flow

$23.4M

Previous: $6.5M+260.0%
Net Income

$24.6M

Previous: $12.7M+93.7%
Operating Income

$31.4M

Previous: $18.5M+69.7%
Gross Profit

$102M

Previous: $84.4M+21.2%
Cash & Equivalents

$78.4M

Previous: $97.6M-19.7%
Total Assets

$443M

Previous: $400M+10.8%
Stock-Based Comp

$1.7M

Previous: $1.2M+41.7%

Revenue & EPS history

Global Industrial · Revenue · Quarterly

$286M

Q3 2020+17.1%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The Company is currently on track for a strong finish to the year.

Tailwinds

  • Strategy and its focus on the customer, which is delivering results across customer growth.
  • Quality improvement.
  • Sales performance optimization.
  • Private label product expansion.
  • Exceptional e-commerce centric platform and differentiated go to market strategy.

Headwinds

  • General economic conditions, such as customer inventory levels, interest rates, borrowing ability and economic conditions in the manufacturing industry generally will continue to impact our business.
  • The temporary closing of many businesses, and reduced business activity, during the Coronavirus pandemic has negatively impacted the general economy, and decreased customer purchasing volume, generally, which negatively affected our business and may do so in future quarters until general business activity reaches pre-pandemic levels.
  • The imposition of tariffs and other trade barriers, as well as retaliatory trade measures, have caused us to raise the prices on certain of our products and seek alternate sources of supply, which could negatively impact our sales or disrupt our operations in the future.
  • Increases in freight and shipping costs have from time to time impacted our margins to the extent the increases could not be passed along to customers in a timely manner and may impact our margins again in the future, and factors affecting the shipping and distribution of products imported to the United States by us or our domestic vendors, such as global availability of shipping containers and fuel costs can impact our results as well.
  • Our reliance on common carrier delivery services for shipping inventoried merchandise to customers.

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 Q3 2020

Historical avgQ3 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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