Systemax (NYSE:SYX)
Historical Stock Chart
From Jun 2019 to Jun 2024
![Click Here for more Systemax Charts. Click Here for more Systemax Charts.](/p.php?pid=staticchart&s=NY%5ESYX&p=8&t=15)
Systemax Inc. (NYSE:SYX), a leading distributor and
manufacturer of PC hardware, related computer products and industrial
products in North America and Europe, today announced results for the
quarter ended March 31, 2006.
Net sales for the quarter increased 6.9% to $574.9 million
compared to $537.9 million in the year-ago quarter. Income from
operations increased more than four-fold to $20.9 million from $5.2
million in the first quarter of 2005. Richard Leeds, Chairman and
Chief Executive Officer said, "I am pleased to report this excellent
increase in operating income, which resulted from a combination of
increased sales and improved gross margins. We are also benefiting
from the cost cutting, streamlining and restructuring actions that we
have taken during the last two years. We have successfully reduced and
managed our selling, general and administrative expenses from 16.5% of
net sales in 2002 to our current rate of 12.2% for the first quarter
of 2006." Net income was $17.6 million or $.48 per diluted share
compared to $2.6 million or $.07 per diluted share in the year ago
period. Net income in 2006 would have been $.36 per diluted share
excluding a gain of $4.3 million, or $.12 per diluted share after tax,
from the sale of a warehouse facility.
Gilbert Fiorentino, CEO of Tiger Direct, commented that Systemax
remains focused on controlling its costs and growing the business. He
added, "North American sales grew 10.7% during the first quarter of
2006 with Tiger's increased e-commerce sales and expanded product
offerings leading the way. European sales decreased marginally in U.S.
dollars but increased 11.1% in constant dollars compared to the
year-ago quarter. Our gross profit margin increased to 15.8% from
14.8% last year as a result of a favorable product mix, reduced
warehouse costs and increased vendor rebates."
Steven Goldschein, Chief Financial Officer, noted that the
Company's reporting of its 2006 quarterly results has been delayed due
to the longer-than-expected 2005 year-end closing process. The Company
filed its 2005 quarterly reports on Form 10-Q and annual report on
Form 10-K earlier today. The Company currently anticipates reporting
its second quarter results in approximately six weeks.
Systemax Inc. (www.systemax.com) employs a system of branded
e-commerce web sites, direct mail catalogs and relationship marketers
to sell PC hardware, related computer products, consumer electronics
products and industrial products in North America and Europe. Systemax
is a Fortune 1000 company.
-0-
*T
SYSTEMAX INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share and share amounts)
Three Months Ended
March 31,
----------------------------
2006 2005
-------------- -------------
Net sales $574,908 $537,908
Cost of sales 484,145 458,133
-------------- -------------
Gross profit 90,763 79,775
Selling, general and administrative
expenses 69,885 72,643
Restructuring and other charges 1,975
-------------- -------------
Income from operations 20,878 5,157
Other non-operating (income) expense, net (6,638) 6
Interest (income) expense, net 15 565
-------------- -------------
Income before income taxes 27,501 4,586
Provision for income taxes 9,944 1,948
-------------- -------------
Net income $17,557 $2,638
============== =============
Net income per common share:
Basic $.51 $.08
============== =============
Diluted $.48 $.07
============== =============
Weighted average common and common equivalent shares:
Basic 34,761,878 34,472,352
============== =============
Diluted 36,553,096 35,364,412
============== =============
SYSTEMAX INC.
Condensed Consolidated Balance Sheets
(In thousands)
As of As of
March 31, December
2006 31, 2005
---------- ----------
CURRENT ASSETS:
Cash and cash equivalents $49,564 $70,925
Accounts receivable, net 148,700 143,001
Inventories 242,711 189,502
Prepaid expenses and other current assets 28,141 27,704
---------- ----------
Total Current Assets 469,116 431,132
Property, plant and equipment, net 46,781 57,259
Other assets 15,990 16,153
---------- ----------
TOTAL $531,887 $504,544
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings including current portions
of long-term debt $23,416 $26,773
Accounts payable and accrued expenses 253,463 234,555
---------- ----------
Total Current Liabilities 276,879 261,328
Long-term debt 507 8,028
Other liabilities 2,209 2,346
Shareholders' equity 252,292 232,842
---------- ----------
TOTAL $531,887 $504,544
========== ==========
*T
Forward-Looking Statements
This press release contains forward-looking statements about the
Company's performance. These statements are based on management's
estimates, assumptions and projections and are not guarantees of
future performance. The Company assumes no obligation to update these
statements. Actual results may differ materially from results
expressed or implied in these statements as the result of risks,
uncertainties and other factors including, but not limited to: (a)
unanticipated variations in sales volume, (b) economic conditions and
exchange rates, (c) actions by competitors, (d) the continuation of
key vendor relationships, (e) the ability to maintain satisfactory
loan agreements with lenders, (f) risks associated with the delivery
of merchandise to customers utilizing common carriers, (g) the
operation of the Company's management information systems, and (h)
unanticipated legal and administrative proceedings. Please refer to
"Risk Factors" and the Forward Looking Statements sections contained
in the Company's Form 10-K for a more detailed explanation of the
inherent limitations in such forward-looking statements.