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Sep 30, 2020
Global Industrial Q3 2020 Earnings Report
Reported record third quarter results with sales increasing and EPS up.
Key Takeaways
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.
Forward Guidance
The Company is currently on track for a strong finish to the year.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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