Global Industrial Co (GIC, Financial) released its earnings report for the third quarter ended September 30, 2023, on October 31, 2023. The company reported a significant increase in sales and a slight increase in operating income compared to the same period last year.
Financial Performance
Global Industrial Co (GIC, Financial) reported consolidated sales of $354.6 million, an increase of 18.8% compared to $298.5 million in the same period last year. Excluding Indoff, which was acquired on May 19, 2023, sales increased by 3.2%. The company's consolidated gross margin declined to 32.8% compared to 35.7% last year. Excluding Indoff, the gross margin was 34.5%, a 120 basis point reduction from the previous year.
Operating income from continuing operations increased by 2.5% to $28.2 million compared to $27.5 million last year. Excluding Indoff, operating income was $25.7 million, a decrease of 6.5%. Net income per diluted share from continuing operations increased by 1.9% to $0.54 compared to $0.53 last year.
Year to Date Financial Summary
For the first nine months of 2023, consolidated sales increased by 5.4% to $954.2 million compared to $905.6 million last year. Excluding Indoff, sales declined by 2.4% and 1.9% on an average daily sales basis. Consolidated operating income from continuing operations decreased by 14.2% to $75.1 million compared to $87.5 million last year. Excluding Indoff, operating income was $71.5 million, a decrease of 18.3%. Net income per diluted share from continuing operations decreased by 14.8% to $1.44 compared to $1.69 last year.
CEO Commentary
Third quarter revenue increased 18.8%, as we benefited from a return to organic revenue growth and the addition of Indoff for the full period. On an organic basis, revenue improved 3.2% driven by volume improvement, which more than offset continued price headwinds. Top line performance was once again led by our e-commerce channel, as recent investments and actions to drive digital transformation and enhance the online shopping experience are delivering returns. Gross margin was 32.8% and primarily reflects the inclusion of Indoff’s lower margin profile. During the quarter, we further normalized our inventory position, generated strong cash flow from operations and fully paid off the outstanding balance on the credit facility." - Barry Litwin, Chief Executive Officer
Financial Position and Dividend Declaration
As of September 30, 2023, Global Industrial Co (GIC, Financial) had total working capital of $142.9 million, cash and cash equivalents of $34.3 million, and excess availability under its credit facility of approximately $108.9 million. Operating cash flow provided by continuing operations in the quarter was $38.3 million. The company's Board of Directors declared a cash dividend of $0.20 per share to common stock shareholders of record at the close of business on November 13, 2023, payable on November 20, 2023.
Explore the complete 8-K earnings release (here) from Global Industrial Co for further details.
