Global Industrial Co. reports near-19% sales growth
In third-quarter reporting October 31, Global Industrial Co. said its consolidated sales increased 18.8% to $354.6 million compared to $298.5 million last year.
Chief Executive Officer Barry Litwin said, "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.
"We are executing against the core pillars of our ACE strategy, committed to delivering an exceptional experience to customers, and focused on operational excellence in every part of the business. The investments we are making in growth and productivity initiatives are designed to strengthen our competitive position. While the environment remains one of caution, our proactive management approach and ability to adjust to market conditions, places us in a position to continue to succeed in the marketplace."
Additional Third Quarter 2023 Financial Summary:
- Excluding Indoff, acquired on May 19, 2023, sales increased 3.2%.
- Consolidated gross margin declined to 32.8% compared to 35.7% last year. Excluding Indoff, gross margin was 34.5%, a 120 basis point reduction to prior year.
- Consolidated operating income from continuing operations increased 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 1.9% to $0.54 compared to $0.53 last year.
Year to Date Q3 2023 Financial Summary:
- Consolidated sales increased 5.4% to $954.2 million compared to $905.6 million last year. Excluding Indoff, sales declined 2.4% and 1.9% on an average daily sales basis.
- Consolidated gross margin declined to 34.3% compared to 36.2% last year. Excluding Indoff, gross margin was 35.3%.
- Consolidated operating income from continuing operations decreased 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 14.8% to $1.44 compared to $1.69 last year.
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