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Systemax Reports Second Quarter Financial Results

Systemax Inc. (NYSE: SYX) today announced financial results for the second quarter and six months ended June 30, 2011.

Performance Summary

(U.S. dollars in millions, except per share data)

Highlights   Quarter Ended June 30,   Six Months Ended

June 30,

    2011   2010   2011   2010
Sales   $872.2   $805.9   $1,802.1   $1,721.1
Gross Profit   $128.9   $113.4   $259.4   $238.0
Gross Margin   14.8%   14.1%   14.4%   13.8%
Operating Income   $21.8   $16.1   $40.5   $36.5
Operating Margin   2.5%   2.0%   2.2%   2.1%
Diluted earnings per share   $0.42   $0.25   $0.78   $0.56
Special (gains) charges, net   $(7.1)   $0.3   $(6.6)   $0.3
Special (gains) charges, net, per diluted share, after tax   $(0.13)   $0.01   $(0.12)   $0.01

Second Quarter 2011 Financial Highlights:

  • Consolidated sales grew 8% to a record $872.2 million in U.S. dollars. On a constant currency basis, sales grew 4%.
  • Business to business channel sales grew 16% to $482.5 million in U.S. dollars. On a constant currency basis, sales grew 10%.
  • Consumer channel sales were flat at $389.7 million in U.S. dollars. On a constant currency basis, sales declined 1%.
  • “Same store” business to business sales grew 7% and same store consumer sales declined 4% on a constant currency basis.
  • The Company recorded special gains, net of legal and professional fees, of $7.1 million on a pre-tax basis, or approximately $0.13 per diluted share, after tax, related to the previously disclosed investigation and settlement with a former officer and director.
  • Diluted earnings per share (EPS) were $0.42.

Six Months 2011 Financial Highlights:

  • Consolidated sales grew 5% to a record $1.8 billion in U.S. dollars. On a constant currency basis, sales grew 3%.
  • Business to business channel sales grew 12% to $963.0 million in U.S. dollars. On a constant currency basis, sales grew 8%.
  • Consumer channel sales declined 2% to $839.1 million in U.S. dollars. On a constant currency basis, sales declined 3%.
  • The Company recorded special gains, net of legal and professional fees, of $6.6 million on a pre-tax basis, or approximately $0.12 per diluted share after tax, related to the previously disclosed investigation and settlement with a former officer and director.
  • Diluted earnings per share (EPS) were $0.78.

Richard Leeds, Chairman and Chief Executive Officer, said, “We delivered solid top line growth in the quarter. Our business to business operations continue to perform well and once again led our performance as customers update their IT infrastructure. In addition, the Industrial Products group had another outstanding quarter, delivering 27% revenue growth as we continue to execute on our growth initiatives in this segment. Consumer channel sales were flat, reflecting a very competitive consumer technology market, particularly on the web. However, our retail stores once again showed solid growth.”

Stock quotes in this article: SYX 

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