This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Systemax Reports Third Quarter Financial Results

Stocks in this article: SYX

Systemax Inc. (NYSE: SYX) today announced financial results for the third quarter and nine months ended September 30, 2011.

 

Performance Summary

(U.S. dollars in millions, except per share data)
Highlights     Quarter Ended     Nine Months Ended
      September 30,     September 30,
      2011   2010     2011   2010
Sales     $ 901.2     $ 862.7       $ 2,703.3     $ 2,583.8  
Gross profit     $ 131.3     $ 115.3       $ 390.8     $ 353.3  
Gross margin       14.6 %     13.4 %       14.5 %     13.7 %
Operating income     $ 19.1     $ 12.1       $ 59.6     $ 48.6  
Operating margin       2.1 %     1.4 %       2.2 %     1.9 %
Diluted earnings per share     $ 0.29     $ 0.23       $ 1.07     $ 0.79  
Special (gains) charges, net     $ 0.4     $ 2.9       $ (6.2 )   $ 3.2  
Special (gains) charges, net, per diluted share, after tax     $ 0.01     $ 0.05       $ (0.11 )   $ 0.05  
   

Third Quarter 2011 Financial Highlights:

  • Consolidated sales grew 4% to a record $901.2 million in U.S. dollars. On a constant currency basis, sales grew 2%.
  • Business to business channel sales grew 17% to $508.2 million in U.S. dollars. On a constant currency basis, sales grew 12%.
  • Consumer channel sales declined 8% to $393.0 million in U.S. dollars. On a constant currency basis, sales declined 9%.
  • “Same store” business to business sales grew 9% and same store consumer sales declined 11% on a constant currency basis.
  • Special charges incurred were approximately $0.4 million on a pre-tax basis, or $0.01 per diluted share after tax, consisting of legal and professional fees, related to the previously disclosed investigation and settlement with a former officer and director.
  • Operating income grew 58% to $19.1 million.
  • Diluted earnings per share (EPS) grew 26% to $0.29.

Nine Months 2011 Financial Highlights:

  • Consolidated sales grew 5% to a record $2.7 billion in U.S. dollars. On a constant currency basis, sales grew 2%.
  • Business to business channel sales grew 13% to $1.5 billion in U.S. dollars. On a constant currency basis, sales grew 10%.
  • Consumer channel sales declined 4% to $1.2 billion in U.S. dollars. On a constant currency basis, sales declined 5%.
  • The Company recorded special gains, net of legal and professional fees, of $6.2 million on a pre-tax basis, or approximately $0.11 per diluted share after tax, related to the previously disclosed investigation and settlement with a former officer and director.
  • Operating income grew 23% to $59.6 million.
  • Diluted EPS grew 35% to $1.07.

Richard Leeds, Chairman and Chief Executive Officer, said, “I am pleased with our top line performance, which continues to be driven by our business-to-business channels and specifically our Industrial Products group, which posted a 28% revenue increase. Our retail stores delivered another solid quarterly performance; however, our consumer related sales remain challenging, particularly on the web. During the quarter we effected decisions to increase gross margins, which contributed to our 120 basis point improvement in consolidated gross margin. We also remain focused on improving our operating cost structure and are pleased with the initial results of our initiatives, which are just starting to flow through our results and contributed to our 70 basis point improvement in consolidated operating margin. Our efforts in this regard are ongoing and focused on driving inventory efficiencies, the optimization of our distribution centers and information technology investments.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs