We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Systemax Inc | NYSE:SYX | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 35.16 | 0 | 01:00:00 |
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
11-3262067
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer ☐
|
|
Accelerated filer ☒
|
Non-accelerated filer ☐
|
|
Smaller reporting company ☐
|
|
|
Emerging growth company ☐
|
Available Information
|
|
|
|
|
|
Part I
|
Financial Information
|
|
Item 1.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
Part II
|
Other Information
|
|
Item 1.
|
||
Item 6.
|
||
|
|
|
|
•
|
Corporate Ethics Policy for officers, directors and employees
|
•
|
Charter for the Audit Committee of the Board of Directors
|
•
|
Charter for the Compensation Committee of the Board of Directors
|
•
|
Charter for the Nominating/Corporate Governance Committee of the Board of Directors
|
•
|
Corporate Governance Guidelines and Principles
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
ASSETS:
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash
|
$
|
176.0
|
|
|
$
|
149.7
|
|
Accounts receivable, net
|
164.5
|
|
|
148.6
|
|
||
Inventories
|
122.9
|
|
|
116.7
|
|
||
Prepaid expenses and other current assets
|
5.1
|
|
|
3.9
|
|
||
Current assets of discontinued operations
|
—
|
|
|
92.3
|
|
||
Total current assets
|
468.5
|
|
|
511.2
|
|
||
|
|
|
|
||||
Property, plant and equipment, net
|
15.1
|
|
|
16.4
|
|
||
Deferred income taxes
|
2.8
|
|
|
4.2
|
|
||
Goodwill and intangibles
|
14.7
|
|
|
15.7
|
|
||
Other assets
|
1.6
|
|
|
1.5
|
|
||
Long term assets of discontinued operations
|
—
|
|
|
17.1
|
|
||
Total assets
|
$
|
502.7
|
|
|
$
|
566.1
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY:
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
178.8
|
|
|
$
|
181.3
|
|
Accrued expenses and other current liabilities
|
63.1
|
|
|
49.2
|
|
||
Current liabilities of discontinued operations
|
—
|
|
|
94.5
|
|
||
Total current liabilities
|
241.9
|
|
|
325.0
|
|
||
Deferred income tax liability
|
0.3
|
|
|
0.3
|
|
||
Other liabilities
|
25.0
|
|
|
24.3
|
|
||
Long term liabilities of discontinued operations
|
—
|
|
|
2.1
|
|
||
Total liabilities
|
267.2
|
|
|
351.7
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
||
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
|
|
||
Preferred stock
|
—
|
|
|
—
|
|
||
Common stock
|
0.4
|
|
|
0.4
|
|
||
Additional paid-in capital
|
186.1
|
|
|
185.5
|
|
||
Treasury stock
|
(22.1
|
)
|
|
(23.9
|
)
|
||
Retained earnings
|
70.5
|
|
|
73.1
|
|
||
Accumulated other comprehensive income (loss)
|
0.6
|
|
|
(20.7
|
)
|
||
Total shareholders’ equity
|
235.5
|
|
|
214.4
|
|
||
Total liabilities and shareholders’ equity
|
$
|
502.7
|
|
|
$
|
566.1
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net sales
|
$
|
319.3
|
|
|
$
|
290.2
|
|
|
$
|
934.8
|
|
|
$
|
874.7
|
|
Cost of sales
|
229.7
|
|
|
214.5
|
|
|
671.9
|
|
|
645.1
|
|
||||
Gross profit
|
89.6
|
|
|
75.7
|
|
|
262.9
|
|
|
229.6
|
|
||||
Selling, distribution & administrative expenses
|
71.5
|
|
|
70.9
|
|
|
210.5
|
|
|
214.4
|
|
||||
Special charges
|
0.1
|
|
|
1.7
|
|
|
0.3
|
|
|
3.6
|
|
||||
Operating income from continuing operations
|
18.0
|
|
|
3.1
|
|
|
52.1
|
|
|
11.6
|
|
||||
Interest and other (income) expense, net
|
0.3
|
|
|
0.4
|
|
|
—
|
|
|
1.3
|
|
||||
Income from continuing operations before income taxes
|
17.7
|
|
|
2.7
|
|
|
52.1
|
|
|
10.3
|
|
||||
Provision for income taxes
|
3.6
|
|
|
1.1
|
|
|
8.4
|
|
|
4.9
|
|
||||
Net income from continuing operations
|
14.1
|
|
|
1.6
|
|
|
43.7
|
|
|
5.4
|
|
||||
Loss from discontinued operations, net of tax
|
(2.8
|
)
|
|
(7.4
|
)
|
|
(37.1
|
)
|
|
(35.9
|
)
|
||||
Net income (loss)
|
$
|
11.3
|
|
|
$
|
(5.8
|
)
|
|
$
|
6.6
|
|
|
$
|
(30.5
|
)
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted EPS:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income per share from continuing operations-basic
|
$
|
0.38
|
|
|
$
|
0.04
|
|
|
$
|
1.18
|
|
|
$
|
0.15
|
|
Net income per share from continuing operations-diluted
|
$
|
0.37
|
|
|
$
|
0.04
|
|
|
$
|
1.17
|
|
|
$
|
0.15
|
|
Net loss per share from discontinued operations-basic and diluted
|
$
|
(0.08
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(1.00
|
)
|
|
$
|
(0.97
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common and common equivalent shares:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
37.0
|
|
|
37.2
|
|
|
37.0
|
|
|
37.2
|
|
||||
Diluted
|
37.7
|
|
|
37.2
|
|
|
37.4
|
|
|
37.2
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Dividends declared and paid
|
$
|
0.10
|
|
|
$
|
0.05
|
|
|
$
|
0.25
|
|
|
$
|
0.05
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income (loss)
|
$
|
11.3
|
|
|
$
|
(5.8
|
)
|
|
$
|
6.6
|
|
|
$
|
(30.5
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation
|
2.1
|
|
|
0.1
|
|
|
6.9
|
|
|
(1.1
|
)
|
||||
Total comprehensive income (loss)
|
$
|
13.4
|
|
|
$
|
(5.7
|
)
|
|
$
|
13.5
|
|
|
$
|
(31.6
|
)
|
|
Nine Months Ended
September 30, |
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Income from continuing operations
|
$
|
43.7
|
|
|
$
|
5.4
|
|
Adjustments to reconcile income from continuing operations to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
3.8
|
|
|
3.8
|
|
||
Other non-cash benefit
|
—
|
|
|
(0.4
|
)
|
||
Provision for returns and doubtful accounts
|
1.1
|
|
|
3.0
|
|
||
Compensation expense related to equity compensation plans
|
1.1
|
|
|
1.2
|
|
||
Provision for deferred taxes
|
0.5
|
|
|
—
|
|
||
Gain on disposition and abandonment
|
(0.1
|
)
|
|
(0.5
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Accounts receivable
|
(7.0
|
)
|
|
26.6
|
|
||
Inventories
|
(1.9
|
)
|
|
25.9
|
|
||
Prepaid expenses and other current assets
|
(0.4
|
)
|
|
4.0
|
|
||
Income taxes payable
|
2.7
|
|
|
0.3
|
|
||
Accounts payable
|
(11.9
|
)
|
|
(95.2
|
)
|
||
Accrued expenses, other current liabilities and other liabilities
|
11.1
|
|
|
(5.0
|
)
|
||
Net cash provided by (used in) operating activities from continuing operations
|
42.7
|
|
|
(30.9
|
)
|
||
Net cash used in operating activities from discontinued operations
|
(9.3
|
)
|
|
(27.2
|
)
|
||
Net cash provided by (used in) operating activities
|
33.4
|
|
|
(58.1
|
)
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
||
Purchases of property, plant and equipment
|
(1.6
|
)
|
|
(2.1
|
)
|
||
Proceeds from disposals of property, plant and equipment
|
0.1
|
|
|
0.6
|
|
||
Net cash used in investing activities from continuing operations
|
(1.5
|
)
|
|
(1.5
|
)
|
||
Net cash used in investing activities from discontinued operations
|
(0.1
|
)
|
|
(0.8
|
)
|
||
Net cash used in investing activities
|
(1.6
|
)
|
|
(2.3
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
||
Dividends paid
|
(9.2
|
)
|
|
(1.9
|
)
|
||
Proceeds from issuance of common stock
|
1.6
|
|
|
—
|
|
||
Repurchase of treasury shares
|
(0.3
|
)
|
|
—
|
|
||
Repayments of capital lease obligations
|
(0.1
|
)
|
|
(0.3
|
)
|
||
Net cash used in financing activities
|
(8.0
|
)
|
|
(2.2
|
)
|
||
|
|
|
|
||||
Effects of exchange rates on cash
|
2.5
|
|
|
(0.1
|
)
|
||
|
|
|
|
||||
Net increase (decrease) in cash
|
26.3
|
|
|
(62.7
|
)
|
||
Cash – beginning of period
|
149.7
|
|
|
215.1
|
|
||
Cash – end of period
|
$
|
176.0
|
|
|
$
|
152.4
|
|
|
|
|
|
||||
Supplemental disclosures of non-cash investing and financing activities:
|
|
|
|
||||
Acquisition of equipment through capital leases
|
$
|
0.3
|
|
|
$
|
—
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Number of
Shares
Outstanding
|
|
Amount
|
|
Additional
Paid-in
Capital
|
|
Treasury
Stock,
At Cost
|
|
Retained
Earnings
|
|
Accumulated Other
Comprehensive Income
(Loss)
|
|
Total
Equity
|
|||||||||||||
Balances, January 1, 2017
|
36,924
|
|
|
$
|
0.4
|
|
|
$
|
185.5
|
|
|
$
|
(23.9
|
)
|
|
$
|
73.1
|
|
|
$
|
(20.7
|
)
|
|
$
|
214.4
|
|
Stock-based compensation expense
|
|
|
|
|
|
|
1.1
|
|
|
|
|
|
|
|
|
|
|
|
1.1
|
|
||||||
Issuance of restricted stock
|
52
|
|
|
|
|
|
(0.7
|
)
|
|
0.7
|
|
|
|
|
|
|
|
|
—
|
|
||||||
Restricted stock withheld for employee taxes
|
(22
|
)
|
|
|
|
|
—
|
|
|
(0.3
|
)
|
|
|
|
|
|
|
|
(0.3
|
)
|
||||||
Proceeds from issuance of common stock
|
117
|
|
|
|
|
|
0.2
|
|
|
1.4
|
|
|
|
|
|
|
|
|
1.6
|
|
||||||
Dividends paid
|
|
|
|
|
|
|
|
|
|
|
|
|
(9.2
|
)
|
|
|
|
|
(9.2
|
)
|
||||||
Discontinued European entities cumulative translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14.4
|
|
|
14.4
|
|
||||||
Change in cumulative translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.9
|
|
|
6.9
|
|
||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
6.6
|
|
|
|
|
|
6.6
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balances, September 30, 2017
|
37,071
|
|
|
$
|
0.4
|
|
|
$
|
186.1
|
|
|
$
|
(22.1
|
)
|
|
$
|
70.5
|
|
|
$
|
0.6
|
|
|
$
|
235.5
|
|
1.
|
Basis of Presentation
|
2.
|
Discontinued Operations
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net sales
|
$
|
0.0
|
|
|
$
|
124.6
|
|
|
$
|
117.0
|
|
|
$
|
402.7
|
|
Cost of sales
|
—
|
|
|
111.5
|
|
|
102.9
|
|
|
356.8
|
|
||||
Gross profit
|
0.0
|
|
|
13.1
|
|
|
14.1
|
|
|
45.9
|
|
||||
Selling, distribution & administrative expenses
|
2.4
|
|
|
20.3
|
|
|
22.4
|
|
|
73.5
|
|
||||
Special charges
|
0.3
|
|
|
(0.3
|
)
|
|
28.6
|
|
|
9.0
|
|
||||
Operating loss from discontinued operations
|
(2.7
|
)
|
|
(6.9
|
)
|
|
(36.9
|
)
|
|
(36.6
|
)
|
||||
Interest and other income, net
|
0.3
|
|
|
—
|
|
|
0.8
|
|
|
(1.1
|
)
|
||||
Loss from discontinued operations before income taxes
|
(3.0
|
)
|
|
(6.9
|
)
|
|
(37.7
|
)
|
|
(35.5
|
)
|
||||
Provision for (benefit from) income taxes
|
(0.2
|
)
|
|
0.5
|
|
|
(0.6
|
)
|
|
0.4
|
|
||||
Net loss from discontinued operations
|
$
|
(2.8
|
)
|
|
$
|
(7.4
|
)
|
|
$
|
(37.1
|
)
|
|
$
|
(35.9
|
)
|
Net loss per share – basic and diluted
|
$
|
(0.08
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(1.00
|
)
|
|
$
|
(0.97
|
)
|
3.
|
Net Income (Loss) per Common Share
|
4.
|
Credit Facilities
|
5.
|
Special Charges
|
|
ETG-Severance
and other costs
|
|
ETG – Lease
liabilities and
other costs
|
|
NATG – Lease
liabilities and
other exit costs
|
|
Total
|
||||||||
Balance January 1, 2017
|
$
|
—
|
|
|
$
|
1.2
|
|
|
$
|
19.3
|
|
|
$
|
20.5
|
|
Charged to expense
|
0.3
|
|
|
—
|
|
|
3.8
|
|
|
4.1
|
|
||||
Paid or otherwise settled
|
(0.3
|
)
|
|
—
|
|
|
(5.9
|
)
|
|
(6.2
|
)
|
||||
Balance September 30, 2017
|
$
|
—
|
|
|
$
|
1.2
|
|
|
$
|
17.2
|
|
|
$
|
18.4
|
|
6.
|
Segment Information
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net sales:
|
|
|
|
|
|
|
|
||||||||
IPG
|
$
|
204.4
|
|
|
$
|
187.4
|
|
|
$
|
597.3
|
|
|
$
|
539.8
|
|
ETG
|
114.9
|
|
|
101.9
|
|
|
337.5
|
|
|
332.1
|
|
||||
Corporate and other
|
—
|
|
|
0.9
|
|
|
—
|
|
|
2.8
|
|
||||
Consolidated
|
$
|
319.3
|
|
|
$
|
290.2
|
|
|
$
|
934.8
|
|
|
$
|
874.7
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||
IPG
|
$
|
19.8
|
|
|
$
|
8.3
|
|
|
$
|
55.2
|
|
|
$
|
24.8
|
|
ETG
|
5.3
|
|
|
0.1
|
|
|
16.8
|
|
|
6.7
|
|
||||
NATG – continuing operations
|
(0.3
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
(2.4
|
)
|
||||
Corporate and other expenses
|
(6.8
|
)
|
|
(5.3
|
)
|
|
(19.2
|
)
|
|
(17.5
|
)
|
||||
Consolidated
|
$
|
18.0
|
|
|
$
|
3.1
|
|
|
$
|
52.1
|
|
|
$
|
11.6
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
$
|
196.3
|
|
|
$
|
181.4
|
|
|
$
|
573.5
|
|
|
$
|
522.4
|
|
France
|
114.9
|
|
|
94.4
|
|
|
337.5
|
|
|
298.2
|
|
||||
Other Europe
|
—
|
|
|
7.5
|
|
|
—
|
|
|
33.9
|
|
||||
Other North America
|
8.1
|
|
|
6.9
|
|
|
23.8
|
|
|
20.2
|
|
||||
Consolidated
|
$
|
319.3
|
|
|
$
|
290.2
|
|
|
$
|
934.8
|
|
|
$
|
874.7
|
|
7.
|
Fair Value Measurements
|
8.
|
Legal Proceedings
|
•
|
Consolidated sales increased 10.0% to $319.3 million for the three month period ended
September 30, 2017
compared to 2016 and increased 6.9% to $934.8 million for the nine month period ended
September 30, 2017
compared to 2016. On a
|
•
|
IPG sales grew 9.1% and 10.7% for the three and nine month periods ended
September 30, 2017
compared to 2016. On a constant currency basis, average daily sales grew 8.9% and 11.2% for the three and nine month periods ended
September 30, 2017
compared to 2016.
|
•
|
IPG operating income more than doubled in the three and nine month periods ended
September 30, 2017
compared to
2016
.
|
•
|
ETG sales, comprising France and the divested German operations, increased 12.8% and 1.6% for the three and nine month periods ended
September 30, 2017
compared to
2016
. On a constant currency basis, average daily sales increased 6.8% and 3.1% for the three and nine month periods ended
September 30, 2017
compared to
2016
. Sales in France increased 21.7% and 13.2% for the quarter and nine month period ended
September 30, 2017
compared to
2016
and on a constant currency basis, average daily sales increased 15.3% and 14.6% for the three and nine month periods ended
September 30, 2017
compared to
2016
.
|
•
|
Consolidated operating income grew to $18.0 million for the three month period ended
September 30, 2017
compared to $3.1 million in 2016 and grew to $52.1 million for the nine month period ended
September 30, 2017
compared to $11.6 million in
2016
.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended
September 30,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
%
Change
|
|
2017
|
|
2016
|
|
%
Change
|
||||||||||
Net sales of continuing operations by segment
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
IPG
|
$
|
204.4
|
|
|
$
|
187.4
|
|
|
9.1
|
%
|
|
$
|
597.3
|
|
|
$
|
539.8
|
|
|
10.7
|
%
|
ETG – continuing operations
|
114.9
|
|
|
101.9
|
|
|
12.8
|
%
|
|
337.5
|
|
|
332.1
|
|
|
1.6
|
%
|
||||
Corporate and other
|
—
|
|
|
0.9
|
|
|
(100.0
|
)%
|
|
—
|
|
|
2.8
|
|
|
(100.0
|
)%
|
||||
Consolidated net sales
|
$
|
319.3
|
|
|
$
|
290.2
|
|
|
10.0
|
%
|
|
$
|
934.8
|
|
|
$
|
874.7
|
|
|
6.9
|
%
|
Consolidated gross profit
|
$
|
89.6
|
|
|
$
|
75.7
|
|
|
18.4
|
%
|
|
$
|
262.9
|
|
|
$
|
229.6
|
|
|
14.5
|
%
|
Consolidated gross margin
|
28.1
|
%
|
|
26.1
|
%
|
|
2.0
|
%
|
|
28.1
|
%
|
|
26.2
|
%
|
|
1.9
|
%
|
||||
Consolidated SG&A costs**
|
$
|
71.6
|
|
|
$
|
72.6
|
|
|
(1.4
|
)%
|
|
$
|
210.8
|
|
|
$
|
218.0
|
|
|
(3.3
|
)%
|
Consolidated SG&A costs** as a % of net sales
|
22.4
|
%
|
|
25.0
|
%
|
|
(2.6
|
)%
|
|
22.6
|
%
|
|
24.9
|
%
|
|
(2.3
|
)%
|
||||
Operating income (loss) from continuing operations by segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
IPG
|
$
|
19.8
|
|
|
$
|
8.3
|
|
|
138.6
|
%
|
|
$
|
55.2
|
|
|
$
|
24.8
|
|
|
122.6
|
%
|
ETG – continuing operations
|
5.3
|
|
|
0.1
|
|
|
NM
|
|
|
16.8
|
|
|
6.7
|
|
|
150.7
|
%
|
||||
Corporate and other
|
(6.8
|
)
|
|
(5.3
|
)
|
|
(28.3
|
)%
|
|
(19.2
|
)
|
|
(17.5
|
)
|
|
(9.7
|
)%
|
||||
NATG – continuing operations
|
(0.3
|
)
|
|
—
|
|
|
NM
|
|
|
(0.7
|
)
|
|
(2.4
|
)
|
|
70.8
|
%
|
||||
Consolidated operating income
|
$
|
18.0
|
|
|
$
|
3.1
|
|
|
480.6
|
%
|
|
$
|
52.1
|
|
|
$
|
11.6
|
|
|
349.1
|
%
|
Operating margin from continuing operations by segment
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
IPG
|
9.7
|
%
|
|
4.4
|
%
|
|
5.3
|
%
|
|
9.2
|
%
|
|
4.6
|
%
|
|
4.6
|
%
|
||||
ETG – continuing operations
|
4.6
|
%
|
|
0.1
|
%
|
|
4.5
|
%
|
|
5.0
|
%
|
|
2.0
|
%
|
|
3.0
|
%
|
||||
Consolidated operating margin from continuing operations
|
5.6
|
%
|
|
1.1
|
%
|
|
4.5
|
%
|
|
5.6
|
%
|
|
1.3
|
%
|
|
4.3
|
%
|
||||
Effective income tax rate
|
20.3
|
%
|
|
40.7
|
%
|
|
(20.4
|
)%
|
|
16.1
|
%
|
|
47.6
|
%
|
|
(31.5
|
)%
|
||||
Net income from continuing operations
|
$
|
14.1
|
|
|
$
|
1.6
|
|
|
781.3
|
%
|
|
$
|
43.7
|
|
|
$
|
5.4
|
|
|
709.3
|
%
|
Net margin from continuing operations
|
4.4
|
%
|
|
0.6
|
%
|
|
3.8
|
%
|
|
4.7
|
%
|
|
0.6
|
%
|
|
4.1
|
%
|
||||
Net loss from discontinued operations
|
$
|
(2.8
|
)
|
|
$
|
(7.4
|
)
|
|
62.2
|
%
|
|
$
|
(37.1
|
)
|
|
$
|
(35.9
|
)
|
|
(3.3
|
)%
|
Supplemental Non-GAAP Continuing Operation
Business Unit Summary Results – Unaudited (In millions)
|
||||||||||||||||
Industrial Products Group
|
||||||||||||||||
|
Quarter Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
2017
|
2016
|
Change
|
2017
|
2016
|
Change
|
|||||||||||
Sales
|
$
|
204.4
|
|
$
|
187.4
|
|
9.1
|
%
|
$
|
597.3
|
|
$
|
539.8
|
|
10.7
|
%
|
Average daily sales*
|
$
|
3.2
|
|
$
|
3.0
|
|
9.1
|
%
|
$
|
3.1
|
|
$
|
2.8
|
|
11.2
|
%
|
Gross profit
|
$
|
71.2
|
|
$
|
59.8
|
|
19.1
|
%
|
$
|
207.9
|
|
$
|
175.7
|
|
18.3
|
%
|
Gross margin
|
34.8
|
%
|
31.9
|
%
|
|
|
34.8
|
%
|
32.5
|
%
|
|
|
||||
Operating income
|
$
|
20.2
|
|
$
|
8.5
|
|
137.6
|
%
|
$
|
56.2
|
|
$
|
25.4
|
|
121.3
|
%
|
Operating margin
|
9.9
|
%
|
4.5
|
%
|
|
|
9.4
|
%
|
4.7
|
%
|
|
|
||||
European Technology Products Group (France)
|
||||||||||||||||
|
Quarter Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
2017
|
2016
|
Change
|
2017
|
2016
|
Change
|
|||||||||||
Sales
|
$
|
114.9
|
|
$
|
94.4
|
|
21.7
|
%
|
$
|
337.5
|
|
$
|
298.2
|
|
13.2
|
%
|
Average daily sales*
|
$
|
1.8
|
|
$
|
1.5
|
|
21.7
|
%
|
$
|
1.8
|
|
$
|
1.6
|
|
14.4
|
%
|
Gross profit
|
$
|
18.4
|
|
$
|
15.1
|
|
21.9
|
%
|
$
|
55.0
|
|
$
|
49.6
|
|
10.9
|
%
|
Gross margin
|
16.0
|
%
|
16.0
|
%
|
|
|
16.3
|
%
|
16.6
|
%
|
|
|
||||
Operating income
|
$
|
5.4
|
|
$
|
3.2
|
|
68.8
|
%
|
$
|
17.2
|
|
$
|
11.8
|
|
45.8
|
%
|
Operating margin
|
4.7
|
%
|
3.4
|
%
|
|
|
5.1
|
%
|
4.0
|
%
|
|
|
||||
Corporate & Other
|
||||||||||||||||
|
Quarter Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
2017
|
2016
|
Change
|
2017
|
2016
|
Change
|
|||||||||||
Operating expenses
|
$
|
(6.6
|
)
|
$
|
(4.3
|
)
|
(53.5
|
)%
|
$
|
(18.3
|
)
|
$
|
(15.0
|
)
|
(22.0
|
)%
|
Consolidated
(1,2)
|
||||||||||||||||
|
Quarter Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
2017
|
2016
|
Change
|
2017
|
2016
|
Change
|
|||||||||||
Sales
|
$
|
319.3
|
|
$
|
281.8
|
|
13.3
|
%
|
$
|
934.8
|
|
$
|
838.0
|
|
11.6
|
%
|
Gross profit***
|
$
|
89.6
|
|
$
|
74.9
|
|
19.6
|
%
|
$
|
262.9
|
|
$
|
225.3
|
|
16.7
|
%
|
Gross margin
|
28.1
|
%
|
26.6
|
%
|
|
|
28.1
|
%
|
26.9
|
%
|
|
|
||||
Operating income
|
$
|
19.0
|
|
$
|
7.4
|
|
156.8
|
%
|
$
|
55.1
|
|
$
|
22.2
|
|
148.2
|
%
|
Operating margin
|
6.0
|
%
|
2.6
|
%
|
|
|
5.9
|
%
|
2.6
|
%
|
|
|
|
Quarter Ended
September 30,
|
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Industrial Products
|
$
|
204.4
|
|
|
$
|
187.4
|
|
|
$
|
597.3
|
|
|
$
|
539.8
|
|
Technology Products - Europe
|
114.9
|
|
|
101.9
|
|
|
337.5
|
|
|
332.1
|
|
||||
Corporate and Other
|
—
|
|
|
0.9
|
|
|
—
|
|
|
2.8
|
|
||||
GAAP Net Sales
|
319.3
|
|
|
290.2
|
|
|
934.8
|
|
|
874.7
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Technology Products - Europe:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reverse results of Germany included in GAAP Net Sales
|
—
|
|
|
(7.5
|
)
|
|
—
|
|
|
(33.9
|
)
|
||||
Total Non-GAAP Adjustments: Technology Products Europe
|
—
|
|
|
(7.5
|
)
|
|
—
|
|
|
(33.9
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate and Other:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reverse results of Afligo included in GAAP Net Sales
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
(2.8
|
)
|
||||
Total Non-GAAP Adjustments: Corporate and Other
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
(2.8
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Industrial Products
|
204.4
|
|
|
187.4
|
|
|
597.3
|
|
|
539.8
|
|
||||
Technology Products- France
|
114.9
|
|
|
94.4
|
|
|
337.5
|
|
|
298.2
|
|
||||
Corporate and Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Non-GAAP Net Sales
|
$
|
319.3
|
|
|
$
|
281.8
|
|
|
$
|
934.8
|
|
|
$
|
838.0
|
|
|
Quarter Ended
September 30,
|
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Industrial Products
|
$
|
71.2
|
|
|
$
|
59.8
|
|
|
$
|
207.9
|
|
|
$
|
175.7
|
|
Technology Products - Europe
|
18.4
|
|
|
15.6
|
|
|
55.0
|
|
|
52.5
|
|
||||
Corporate and Other
|
—
|
|
|
0.3
|
|
|
—
|
|
|
1.4
|
|
||||
GAAP Gross Profit
|
89.6
|
|
|
75.7
|
|
|
262.9
|
|
|
229.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Technology Products - Europe:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reverse results of Germany included in GAAP Gross Profit
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
(2.9
|
)
|
||||
Total Non-GAAP Adjustments: Technology Products Europe
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
(2.9
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate and Other:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reverse results of Afligo included in GAAP Gross Profit
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
(1.4
|
)
|
||||
Total Non-GAAP Adjustments: Corporate and Other
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
(1.4
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Industrial Products
|
71.2
|
|
|
59.8
|
|
|
207.9
|
|
|
175.7
|
|
||||
Technology Products- France
|
18.4
|
|
|
15.1
|
|
|
55.0
|
|
|
49.6
|
|
||||
Corporate and Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Non-GAAP Gross Profit
|
$
|
89.6
|
|
|
$
|
74.9
|
|
|
$
|
262.9
|
|
|
$
|
225.3
|
|
|
Quarter Ended
September 30,
|
|
Nine Months Ended
September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Industrial Products
|
$
|
19.8
|
|
|
$
|
8.3
|
|
|
$
|
55.2
|
|
|
$
|
24.8
|
|
Technology Products - Europe
|
5.3
|
|
|
0.1
|
|
|
16.8
|
|
|
6.7
|
|
||||
Technology Products - NA
|
(0.3
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
(2.4
|
)
|
||||
Corporate and Other
|
(6.8
|
)
|
|
(5.3
|
)
|
|
(19.2
|
)
|
|
(17.5
|
)
|
||||
GAAP operating income
|
18.0
|
|
|
3.1
|
|
|
52.1
|
|
|
11.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Industrial Products:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Intangible asset amortization
|
0.3
|
|
|
0.1
|
|
|
0.8
|
|
|
0.3
|
|
||||
Stock based and other special compensation
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.3
|
|
||||
Total Non-GAAP Adjustments – Industrial Products
|
0.4
|
|
|
0.2
|
|
|
1.0
|
|
|
0.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Technology Products - Europe:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reverse results of Germany included in GAAP continuing operations
|
0.1
|
|
|
3.0
|
|
|
0.3
|
|
|
4.8
|
|
||||
Intangible asset amortization
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
0.3
|
|
||||
Total Non-GAAP Adjustments: Technology Products Europe
|
0.1
|
|
|
3.1
|
|
|
0.4
|
|
|
5.1
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Technology Products - NA:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reverse results of NATG included in GAAP continuing operations
|
0.3
|
|
|
—
|
|
|
0.7
|
|
|
2.4
|
|
||||
Total Non-GAAP Adjustments: Technology Products NA
|
0.3
|
|
|
—
|
|
|
0.7
|
|
|
2.4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Corporate and Other:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reverse results of Afligo included in GAAP continuing operations
|
—
|
|
|
0.7
|
|
|
—
|
|
|
1.7
|
|
||||
Stock based compensation
|
0.2
|
|
|
0.3
|
|
|
0.9
|
|
|
0.8
|
|
||||
Total Non-GAAP Adjustments: Corporate and Other
|
0.2
|
|
|
1.0
|
|
|
0.9
|
|
|
2.5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Industrial Products
|
20.2
|
|
|
8.5
|
|
|
56.2
|
|
|
25.4
|
|
||||
Technology Products- France
|
5.4
|
|
|
3.2
|
|
|
17.2
|
|
|
11.8
|
|
||||
Technology Products- NA
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Corporate and Other
|
(6.6
|
)
|
|
(4.3
|
)
|
|
(18.3
|
)
|
|
(15.0
|
)
|
||||
Non-GAAP operating income
|
$
|
19.0
|
|
|
$
|
7.4
|
|
|
$
|
55.1
|
|
|
$
|
22.2
|
|
|
September 30, 2017
|
|
December 31, 2016
|
|
$ Change
|
||||||
Cash
|
$
|
176.0
|
|
|
$
|
149.7
|
|
|
$
|
26.3
|
|
Accounts receivable, net
|
$
|
164.5
|
|
|
$
|
148.6
|
|
|
$
|
15.9
|
|
Inventories
|
$
|
122.9
|
|
|
$
|
116.7
|
|
|
$
|
6.2
|
|
Prepaid expenses and other current assets
|
$
|
5.1
|
|
|
$
|
3.9
|
|
|
$
|
1.2
|
|
Accounts payable
|
$
|
178.8
|
|
|
$
|
181.3
|
|
|
$
|
(2.5
|
)
|
Accrued expenses and other current liabilities
|
$
|
63.1
|
|
|
$
|
49.2
|
|
|
$
|
13.9
|
|
Working capital
|
$
|
226.6
|
|
|
$
|
186.2
|
|
|
$
|
40.4
|
|
|
Total
|
|
Less than
1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than
5 years
|
||||||||||
Contractual Obligations:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital lease obligations
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-cancelable operating leases, net of subleases
|
133.2
|
|
|
15.9
|
|
|
44.1
|
|
|
28.2
|
|
|
45.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase & other obligations
|
22.6
|
|
|
4.6
|
|
|
9.0
|
|
|
9.0
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total contractual obligations
|
$
|
155.9
|
|
|
$
|
20.6
|
|
|
$
|
53.1
|
|
|
$
|
37.2
|
|
|
$
|
45.0
|
|
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
101.INS
|
XBRL Instance Document
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
SYSTEMAX INC.
|
|
|
|
|
Date: November 7, 2017
|
By:
|
/s/ Lawrence Reinhold
|
|
|
Lawrence Reinhold
|
|
|
President and Chief Executive Officer
|
|
SYSTEMAX INC.
|
|
|
|
|
Date: November 7, 2017
|
By:
|
/s/ Thomas Clark
|
|
|
Thomas Clark
|
|
|
Vice President and Chief Financial Officer
|
1 Year Systemax Chart |
1 Month Systemax Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions