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Mar 31, 2020
Global Industrial Q1 2020 Earnings Report
Systemax's first quarter earnings decreased due to the initial impact of COVID-19.
Key Takeaways
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.
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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