Systemax Inc. Declares Quarterly Cash Dividend, Payable on August 20, 2018; Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Tax Rate Guidance for the Full Year 2018
July 31, 2018 at 04:30 pm EDT
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Systemax Inc. declared a cash dividend of $0.11 per share to common stock shareholders of record at the close of business on August 13, 2018, payable on August 20, 2018. The company anticipates continuing a regular quarterly dividend in the future.
The company announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported net sales were $363.1 million against $313 million a year ago, an increase of 12.6% on a constant currency average daily sales basis. Operating income from continuing operations was $25.3 million against $21.7 million a year ago. Income from continuing operations before income taxes was $25.3 million against $21.8 million a year ago. Net income from continuing operations was $17.8 million against $19.3 million a year ago. Net income was $18.2 million against $13.8 million a year ago. Diluted net income per common share from continuing operations was $0.47 against $0.52 a year ago. Diluted net income per common share was $0.48 against $0.37 a year ago. Non- GAAP operating income was $25.9 million against $22.8 million a year ago, an improvement of 13.6%. GAAP net income from continuing operations was $18.1 million against $14.9 million a year ago. Non- GAAP net income per diluted share from continuing operations was $0.48 million against $0.4 million a year ago. Turning to results, second quarter consolidated revenue reflect double-digit top line growth in both Industrial and France. In the second quarter, revenue increased 13.8% over Second Quarter of last year, an improvement from the 11.5% year-over-year growth reported in the first quarter of 2018. The rate of growth accelerated in May and June, with strength across both the U.S. and Canadian operations. Canada delivered it's sixth consecutive quarter of double-digit gains, generating revenue growth of over 25%.
For the six months, the company reported net sales were $718.3 million against $615.5 million a year ago. Operating income from continuing operations was $45.4 million against $34.1 million a year ago. Income from continuing operations before income taxes was $45.3 million against $34.4 million a year ago. Net income from continuing operations was $32 million against $29.6 million a year ago. Net income was $32.8 million against net loss of $4.7 million a year ago. Diluted net income per common share from continuing operations was $0.84 against $0.79 a year ago. Diluted net income per common share was $0.87 against diluted net loss per common share of $0.13 a year ago. Non- GAAP operating income was $46.7 million against $36.1 million a year ago. GAAP net income from continuing operations was $32.6 million against $23.7 million a year ago. Non- GAAP net income per diluted share from continuing operations was $0.86 million against $0.64 million a year ago.
The company estimates that its normalized income tax rate, after closing of the transaction, to be approximately 26%, compared to an effective tax rate of approximately 30% in the first half of 2018, as France had operated in a higher corporate income tax rate environment. The company continue to anticipate 2018 CapEx within the Industrial business to range between $4 million and $6 million.
Global Industrial Company is an industrial distributor. The Company offers industrial and maintenance, repair, and operations (MRO) products, including its own Global Industrial brands, which are marketed in North America. Its products categories includes storage and shelving, safety and security, carts and trucks, heating, ventilation, air conditioning (HVAC) and fans, furniture and decor, material handling, janitorial and facility maintenance, workbenches and shop desks, tools and instruments, plumbing and pumps, office and school supplies, packaging and shipping, lighting and electrical, foodservice and retail, medical and laboratory, motors and power transmission, building supplies, machining, fasteners and hardware, vehicle maintenance, and raw materials. The Company's private brands include Global, GlobalIndustrial.com, Nexel, Paramount, Absocold and Interion. The Company offers its products through e-commerce Websites.
Systemax Inc. Declares Quarterly Cash Dividend, Payable on August 20, 2018; Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Tax Rate Guidance for the Full Year 2018