PORT WASHINGTON, N.Y.,
July 31, 2018 /PRNewswire/
-- Systemax Inc. (NYSE: SYX) today announced financial
results for the second quarter ended June
30, 2018 and that it has executed a definitive agreement to
sell its France based IT value
added reseller business to Bechtle AG for an enterprise value of
$246 million at current exchange
rates. Upon completion of the sale, Systemax's
operations will be its Industrial Products Group ("IPG") business
in North America, which is focused
on industrial supplies and MRO (maintenance, repair, and
operations), markets the Company has served since 1949.
Performance
Summary*
(U.S. dollars in
millions, except per share data)
|
Highlights
|
Quarter Ended
June 30,
|
Six Months
Ended
June 30,
|
GAAP
Results**
|
2018
|
2017
|
2018
|
2017
|
Net sales
|
$
|
363.1
|
|
$
|
313.0
|
|
$
|
718.3
|
|
$
|
615.5
|
|
Gross
profit
|
$
|
101.1
|
|
$
|
91.5
|
|
$
|
197.8
|
|
$
|
173.3
|
|
Gross
margin***
|
27.8
|
%
|
29.2
|
%
|
27.5
|
%
|
28.2
|
%
|
Operating
income
|
$
|
25.3
|
|
$
|
21.7
|
|
$
|
45.4
|
|
$
|
34.1
|
|
Operating
margin
|
7.0
|
%
|
6.9
|
%
|
6.3
|
%
|
5.5
|
%
|
Net income from
continuing operations
|
$
|
17.8
|
|
$
|
19.3
|
|
$
|
32.0
|
|
$
|
29.6
|
|
Net income per
diluted share from continuing operations
|
$
|
0.47
|
|
$
|
0.52
|
|
$
|
0.84
|
|
$
|
0.79
|
|
Net income (loss)
from discontinued operations
|
$
|
0.4
|
|
$
|
(5.5)
|
|
$
|
0.8
|
|
$
|
(34.3)
|
|
Net income (loss) per
diluted share from discontinued operations
|
$
|
0.01
|
|
$
|
(0.15)
|
|
$
|
0.02
|
|
$
|
(0.92)
|
|
Non-GAAP
Results**
|
|
|
|
|
Operating
income
|
$
|
25.9
|
|
$
|
22.8
|
|
$
|
46.7
|
|
$
|
36.1
|
|
Operating
margin
|
7.1
|
%
|
7.3
|
%
|
6.5
|
%
|
5.9
|
%
|
Net income from
continuing operations
|
$
|
18.1
|
|
$
|
14.9
|
|
$
|
32.6
|
|
$
|
23.7
|
|
Net income per
diluted share from continuing operations
|
$
|
0.48
|
|
$
|
0.40
|
|
$
|
0.86
|
|
$
|
0.64
|
|
Second Quarter 2018 Financial Summary:
- Consolidated sales increased 16.0% to $363.1 million in U.S. dollars. On a constant
currency basis, average daily sales increased 12.6%.
- Industrial Products Group ("IPG") sales grew 14.1% to
$231.2 million in U.S. dollars. On a
constant currency basis, average daily sales increased 13.8%.
- France sales increased 19.6%
to $131.9 million in U.S. dollars. On
a constant currency basis, average daily sales increased
10.6%.
- Consolidated operating income grew 16.6% to $25.3 million compared to $21.7 million last year on a GAAP Basis. On a
Non-GAAP basis, consolidated operating income grew 13.6% to
$25.9 million.
- Net income per diluted share from continuing operations
decreased 9.6% to $0.47. Non-GAAP net
income per diluted share from continuing operations grew 20.0% to
$0.48.
Six Months 2018 Financial Summary:
- Consolidated sales increased 16.7% to $718.3 million in U.S. dollars. On a constant
currency basis, average daily sales increased 12.2%.
- IPG sales grew 12.9% to $443.4
million in U.S. dollars. On a constant currency basis,
average daily sales increased 12.6%.
- France sales increased 23.5%
to $274.9 million in U.S. dollars. On
a constant currency basis, average daily sales increased
11.4%.
- Consolidated operating income grew 33.1% to $45.4 million compared to $34.1 million last year on a GAAP Basis. On a
Non-GAAP basis, consolidated operating income grew 29.4% to
$46.7 million.
- Net income per diluted share from continuing operations grew
6.3% to $0.84. Non-GAAP net income
per diluted share from continuing operations grew 34.4% to
$0.86.
Larry Reinhold, Chief Executive
Officer, said, "We delivered another quarter of strong financial
performance as our Industrial and France businesses posted double digit revenue
increases and strong cash flow generation. Industrial revenue
improved 14% on a constant currency average daily sales basis as we
benefited from robust demand across our broad customer end markets,
product offerings and sales channels. Operating leverage
remained strong as our product, gross and operating margins were
in-line with our internal expectations and showed improvement on a
sequential quarter basis. France produced revenue growth of 11% on a
constant currency average daily sales basis. Its top line
results once again outpaced the French IT market and operating
margins remain among the best in the industry, resulting in a 28%
increase in operating income."
"The definitive agreement we executed with Bechtle AG for the
sale of our France IT business recognizes the substantial value we
have built in France and we
believe Bechtle will be a good home for our French business, our
employees and our customers. Upon closing of the transaction,
we will be solely focused on the growth of Industrial where we are
making further investments to enhance its competitive position,
expand the value we bring to our customers and position it for
further success. Industrial is a terrific business that has
significantly expanded its operations, improved its profitability
and has multiple growth opportunities. With a strong balance
sheet and with the additional liquid capital that the business will
have after the completion of the sale of our French Business, we
have significant financial flexibility to evaluate strategic
acquisitions for Industrial and to return capital to shareholders
through dividends and share repurchases."
The agreement to sell our France Business is denominated on a
cash-free, debt-free basis, and will include normalized working
capital adjustments. The sale is subject to customary
regulatory approvals and is expected to close later in 2018.
On a Pro Forma basis, assuming it had closed on June 30, 2018 and using current exchange rates of
1.17 Euro to USD, the enterprise
value would have been $246.0 million
and its equity value, inclusive of net cash on hand and other
adjustments, would have been approximately $270.0 million. We anticipate recognizing a
pretax book gain of between $182 and
$188 million on the sale, and after
funding transaction expenses, the total cash available to U.S.
shareholders on a tax-effected basis resulting from this
transaction would have been between $238 and $245
million. Systemax estimates that its normalized income
tax rate, after closing of the transaction, to be approximately
26%, compared to an effective tax rate of approximately 30% in the
first half of 2018.
At June 30, 2018, the Company had total working capital of
$163.2 million, cash and cash
equivalents of $96.9 million and
excess availability under its credit facility of approximately
$71.0 million. The Company has
significant flexibility to return capital to shareholders, execute
on its business plans, invest in strategic M&A, and continue
investing in growth opportunities. The Company's board of directors
has declared a cash dividend of $0.11
per share to common stock shareholders of record at the close of
business on August 13, 2018, payable
on August 20, 2018. The Company
anticipates continuing a regular quarterly dividend in the
future.
The Company also announced today that its Board of Directors has
approved a share repurchase program with a repurchase authorization
of up to two million shares of the Company's common stock.
Under the share repurchase program, the Company is authorized to
purchase shares from time to time through open market purchases,
tender offerings or negotiated purchases, subject to market
conditions and other factors. The share repurchase program
does not obligate the Company to repurchase any specific number of
shares and may be suspended or terminated at any time.
Earnings Conference Call Details
Systemax Inc. will
provide pre-recorded remarks on its second quarter 2018 results
today, July 31, 2018 at 5:00 p.m. Eastern Time. A live webcast of the
remarks will be available on the Company's website at
www.systemax.com in the investor relations section. The
webcast will also be archived on www.systemax.com for
approximately 90 days.
About Systemax Inc.
Systemax Inc. (www.systemax.com),
through its operating subsidiaries, is a provider of industrial
products in North America and
technology products in France,
going to market through a system of branded e-Commerce websites and
relationship marketers. The primary brands are Global
Industrial and Inmac Wstore.
Forward-Looking Statements
This press release contains forward looking statements within
the meaning of that term in the Private Securities Litigation
Reform Act of 1995 (Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934).
Additional written or oral forward looking statements may be made
by the Company from time to time in filings with the Securities and
Exchange Commission or otherwise. Statements contained in
this press release that are not historical facts are forward
looking statements made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995, and 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. Forward looking statements
may include, but are not limited to, projections or estimates of
revenue, income or loss, exit costs, cash flow needs and capital
expenditures, statements regarding future operations, expansion or
restructuring plans, including our exit from and winding down of
our sold NATG operations, financing needs, compliance with
financial covenants in loan agreements, plans relating to products
or services of the Company, assessments of materiality, predictions
of future events and the effects of pending and possible
litigation, as well as assumptions relating to the foregoing. In
addition, when used in this release, the words "anticipates,"
"believes," "estimates," "expects," "intends," and "plans" and
variations thereof and similar expressions are intended to identify
forward looking statements.
Other factors that may affect our future results of
operations and financial condition include, but are not limited to,
unanticipated developments in any one or more of the following
areas, as well as other factors which may be detailed from time to
time in our Securities and Exchange Commission filings: risks
involved with e-commerce, including possible loss of business and
customer dissatisfaction if outages or other computer-related
problems should preclude customer access to our products and
services; the Company's management information systems and other
technology platforms supporting our sales, procurement and other
operations are critical to our operations and disruptions or delays
have occurred and could occur in the future, and if not timely
addressed would have a material adverse effect on us; we could
suffer a data security breach due to our e-commerce and data
storage systems being hacked by those seeking to steal Company
information, vendor, employee or customer personal information, or
due to employee error, resulting in disruption to our operations,
loss of information and privacy, legal claims and adverse material
impact on our reputation and business; meeting credit card industry
compliance standards in order to maintain our ability to accept
credit cards; technological change has had and can continue to have
a material effect on our product mix and results of operations;
general economic conditions will continue to impact our business;
extreme weather conditions could disrupt our product supply chain
and our ability to ship or receive products, which would adversely
impact sales; our international operations are subject to risks
such as fluctuations in currency rates and foreign regulatory
requirements, and our operations are subject to the impact of newly
enacted US and foreign tariffs, and political uncertainty; and
managing various inventory risks, such as being unable to
profitably resell excess or obsolete inventory and/or the loss of
product return rights and price protection from our
vendors.
Investor/Media Contacts:
Mike
Smargiassi
The Plunkett Group
212-739-6740
mike@theplunkettgroup.com
* Systemax manages its business and reports using a 52-53
week fiscal year that ends at midnight on the Saturday closest to
December 31. For clarity of presentation, fiscal years and
quarters are described as if they ended on the last day of the
respective calendar month. The actual fiscal quarters ended
on June 30, 2018 and July 1, 2017. The second quarter of both 2018 and
2017 included 13 weeks and the first six months of both 2018 and
2017 included 26 weeks.
** On December 1, 2015 the
Company closed on the sale of certain assets of its North American
Technology Group ("NATG"). Pursuant to this transaction, the
Company continues to wind down the remaining operations of NATG
during 2018. Costs of the wind down in 2018 are included in
discontinued operations. Costs of the wind down in the second
quarter of 2017 are included in continuing operations and year to
date costs are included in continuing and discontinued
operations. On March 24, 2017,
the Company closed on the sale of its European Technology Group
businesses, other than its operations in France. Prior and
current year results of these divested businesses, along with the
associated loss on the sale recorded in 2017, have been classified
as discontinued operations.
*** During the second quarter of 2017, the Company decided to
amend its presentation of certain costs associated with operating
our Distribution Centers as well as costs associated with our
Purchasing and Product Development Teams. Historically these
costs have been included as a component of costs of goods
sold. We are now including those costs as a component
of Selling, Distribution, and Administrative Expenses.
This change is reflected in current and prior year periods and is
not a restatement of any amounts, rather, an amendment to the
presentation of these costs to better align with the Company's
MRO-oriented peer group in North
America.
Condensed
Consolidated Statements of Operations – GAAP -
Unaudited
|
(In millions, except
per share amounts)
|
|
|
Quarter Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net sales
|
$
|
363.1
|
|
|
$
|
313.0
|
|
|
$
|
718.3
|
|
|
$
|
615.5
|
|
Cost of
sales
|
262.0
|
|
|
221.5
|
|
|
520.5
|
|
|
442.2
|
|
Gross
profit
|
101.1
|
|
|
91.5
|
|
|
197.8
|
|
|
173.3
|
|
Gross
margin
|
27.8
|
%
|
|
29.2
|
%
|
|
27.5
|
%
|
|
28.2
|
%
|
Selling, distribution
and administrative expenses
|
75.8
|
|
|
69.6
|
|
|
152.4
|
|
|
139.0
|
|
Special
charges
|
0.0
|
|
|
0.2
|
|
|
0.0
|
|
|
0.2
|
|
Operating income from
continuing operations
|
25.3
|
|
|
21.7
|
|
|
45.4
|
|
|
34.1
|
|
Operating
margin
|
7.0
|
%
|
|
6.9
|
%
|
|
6.3
|
%
|
|
5.5
|
%
|
Interest and other
(income) expense, net
|
0.0
|
|
|
(0.1)
|
|
|
0.1
|
|
|
(0.3)
|
|
Income from
continuing operations before income taxes
|
25.3
|
|
|
21.8
|
|
|
45.3
|
|
|
34.4
|
|
Provision for income
taxes
|
7.5
|
|
|
2.5
|
|
|
13.3
|
|
|
4.8
|
|
Net income from
continuing operations
|
17.8
|
|
|
19.3
|
|
|
32.0
|
|
|
29.6
|
|
Net income (loss)
from discontinued operations
|
0.4
|
|
|
(5.5)
|
|
|
0.8
|
|
|
(34.3)
|
|
Net income
(loss)
|
$
|
18.2
|
|
|
$
|
13.8
|
|
|
$
|
32.8
|
|
|
$
|
(4.7)
|
|
|
|
|
|
|
|
|
|
Net income per common
share from continuing operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.48
|
|
|
$
|
0.52
|
|
|
$
|
0.86
|
|
|
$
|
0.80
|
|
Diluted
|
$
|
0.47
|
|
|
$
|
0.52
|
|
|
$
|
0.84
|
|
|
$
|
0.79
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share from discontinued operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.01
|
|
|
$
|
(0.15)
|
|
|
$
|
0.02
|
|
|
$
|
(0.93)
|
|
Diluted
|
$
|
0.01
|
|
|
$
|
(0.15)
|
|
|
$
|
0.02
|
|
|
$
|
(0.92)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.49
|
|
|
$
|
0.37
|
|
|
$
|
0.88
|
|
|
$
|
(0.13)
|
|
Diluted
|
$
|
0.48
|
|
|
$
|
0.37
|
|
|
$
|
0.87
|
|
|
$
|
(0.13)
|
|
|
|
|
|
|
|
|
|
Weighted average
common and common equivalent shares:
|
|
|
|
|
|
|
|
Basic
|
37.2
|
|
|
37.0
|
|
|
37.2
|
|
|
37.0
|
|
Diluted
|
37.9
|
|
|
37.4
|
|
|
37.9
|
|
|
37.3
|
|
SYSTEMAX
INC.
|
Condensed
Consolidated Balance Sheets – GAAP - Unaudited
|
(In
millions)
|
|
|
June
30,
|
|
December
31,
|
|
2018
|
|
2017
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
96.9
|
|
|
$
|
184.5
|
|
Accounts receivable,
net
|
189.5
|
|
|
174.3
|
|
Inventories
|
126.4
|
|
|
131.5
|
|
Prepaid expenses and
other current assets
|
5.7
|
|
|
3.8
|
|
Total current
assets
|
418.5
|
|
|
494.1
|
|
Property, plant and
equipment, net
|
14.6
|
|
|
15.1
|
|
Goodwill, intangibles
and other assets
|
41.3
|
|
|
42.2
|
|
Total
assets
|
$
|
474.4
|
|
|
$
|
551.4
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
255.3
|
|
|
$
|
260.1
|
|
Dividend
payable
|
0.0
|
|
|
55.7
|
|
Total current
liabilities
|
255.3
|
|
|
315.8
|
|
Deferred tax
liability
|
0.1
|
|
|
0.1
|
|
Other
liabilities
|
21.7
|
|
|
23.7
|
|
Shareholders'
equity
|
197.3
|
|
|
211.8
|
|
Total liabilities and
shareholders' equity
|
$
|
474.4
|
|
|
$
|
551.4
|
|
Supplemental
Continuing Operations
Business Unit
Summary Results - Unaudited (In millions)
|
Industrial
Products Group
|
|
Quarter Ended June
30,
|
Six Months Ended
June 30,
|
2018
|
2017
|
Change
|
2018
|
2017
|
Change
|
Sales
|
$
|
231.2
|
|
$
|
202.7
|
|
14.1
|
%
|
$
|
443.4
|
|
$
|
392.9
|
|
12.9
|
%
|
Average daily
sales*
|
$
|
3.6
|
|
$
|
3.2
|
|
14.1
|
%
|
$
|
3.5
|
|
$
|
3.1
|
|
12.9
|
%
|
Gross
profit
|
$
|
80.0
|
|
$
|
73.3
|
|
9.1
|
%
|
$
|
152.5
|
|
$
|
136.7
|
|
11.6
|
%
|
Gross
margin
|
34.6
|
%
|
36.2
|
%
|
|
34.4
|
%
|
34.8
|
%
|
|
Operating
income (Non-GAAP)**
|
$
|
23.2
|
|
$
|
23.1
|
|
0.4
|
%
|
$
|
39.9
|
|
$
|
36.0
|
|
10.8
|
%
|
Operating margin (Non-GAAP)
|
10.0
|
%
|
11.4
|
%
|
|
9.0
|
%
|
9.2
|
%
|
|
European
Technology Products Group (France)
|
|
Quarter Ended June
30,
|
Six Months Ended
June 30,
|
2018
|
2017
|
Change
|
2018
|
2017
|
Change
|
Sales
|
$
|
131.9
|
|
$
|
110.3
|
|
19.6
|
%
|
$
|
274.9
|
|
$
|
222.6
|
|
23.5
|
%
|
Average daily
sales*
|
$
|
2.2
|
|
$
|
1.8
|
|
19.6
|
%
|
$
|
2.2
|
|
$
|
1.8
|
|
24.5
|
%
|
Gross
profit
|
$
|
21.1
|
|
$
|
18.2
|
|
15.9
|
%
|
$
|
45.3
|
|
$
|
36.6
|
|
23.8
|
%
|
Gross
margin
|
16.0
|
%
|
16.5
|
%
|
|
16.5
|
%
|
16.4
|
%
|
|
Operating
income (Non-GAAP)**
|
$
|
7.4
|
|
$
|
5.8
|
|
27.6
|
%
|
$
|
16.8
|
|
$
|
11.8
|
|
42.4
|
%
|
Operating margin (Non-GAAP)
|
5.6
|
%
|
5.3
|
%
|
|
6.1
|
%
|
5.3
|
%
|
|
Corporate &
Other
|
|
Quarter Ended June
30,
|
Six Months Ended
June 30,
|
2018
|
2017
|
Change
|
2018
|
2017
|
Change
|
Operating expenses (Non-GAAP)**
|
$
|
(4.7)
|
|
$
|
(6.1)
|
|
23.0
|
%
|
$
|
(10.0)
|
|
$
|
(11.7)
|
|
14.5
|
%
|
Consolidated
(1,2)
|
|
Quarter Ended June
30,
|
Six Months Ended
June 30,
|
2018
|
2017
|
Change
|
2018
|
2017
|
Change
|
Sales
|
$
|
363.1
|
|
$
|
313.0
|
|
16.0
|
%
|
$
|
718.3
|
|
$
|
615.5
|
|
16.7
|
%
|
Gross
profit
|
$
|
101.1
|
|
$
|
91.5
|
|
10.5
|
%
|
$
|
197.8
|
|
$
|
173.3
|
|
14.1
|
%
|
Gross
margin
|
27.8
|
%
|
29.2
|
%
|
|
27.5
|
%
|
28.2
|
%
|
|
Operating income
(Non-GAAP)**
|
$
|
25.9
|
|
$
|
22.8
|
|
13.6
|
%
|
$
|
46.7
|
|
$
|
36.1
|
|
29.4
|
%
|
Operating margin
(Non-GAAP)
|
7.1
|
%
|
7.3
|
%
|
|
6.5
|
%
|
5.9
|
%
|
|
|
*
|
Percentages are
calculated using sales data in hundreds of thousands. In Q2
2018, IPG and France had 64 and 60 selling days, respectively, for
the first six months of 2018, IPG and France had 128 and 124
selling days, respectively. In Q2 2017, IPG and France had 64
and 60 selling days, respectively, and for the first six months of
2017 IPG and France had 128 and 125 selling days,
respectively.
|
|
|
|
|
**
|
See Reconciliation
of Segment and Consolidated GAAP Operating Income (Loss) from
Continuing Operations to Segment and Consolidated Non-GAAP
Operating Income (Loss) from Continuing Operations –
Unaudited
|
|
|
|
|
1
|
On December 1,
2015 the Company closed on the sale of certain assets of its North
American Technology Group ("NATG"). Pursuant to this transaction,
the Company continues to wind down the remaining operations of NATG
during 2018. Costs of the wind down in 2018 are included in
discontinued operations. Costs of the wind down in the second
quarter of 2017 are included in continuing operations and year to
date costs are included in continuing and discontinued
operations. On March 24, 2017, the Company closed on the sale
of its European Technology Group businesses, other than its
operations in France. Prior and current year results of these
divested businesses, along with the associated loss on the sale
recorded in 2017, have been classified as discontinued
operations.
|
|
|
|
|
2
|
Systemax manages
its business and reports using a 52-53 week fiscal year that ends
at midnight on the Saturday closest to December 31. For
clarity of presentation, fiscal years and quarters are described as
if they ended on the last day of the respective calendar
month. The actual fiscal quarter ended on June 30, 2018 and
July 1, 2017. The second quarters of both 2018 and 2017 included 13
weeks and the first six months of both 2018 and 2017 included 26
weeks.
|
SYSTEMAX
INC.
|
Reconciliation of
Segment and Consolidated GAAP Operating Income (Loss) from
Continuing Operations to Segment and Consolidated Non-GAAP
Operating Income (Loss) from Continuing Operations –
Unaudited
|
(In
millions)
|
|
|
Quarter Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Industrial
Products
|
$
|
23.0
|
|
|
$
|
22.9
|
|
|
$
|
39.3
|
|
|
$
|
35.4
|
|
Technology Products -
Europe
|
7.2
|
|
|
5.7
|
|
|
16.5
|
|
|
11.5
|
|
Technology Products -
NA
|
0.0
|
|
|
(0.4)
|
|
|
0.0
|
|
|
(0.4)
|
|
Corporate and
Other
|
(4.9)
|
|
|
(6.5)
|
|
|
(10.4)
|
|
|
(12.4)
|
|
GAAP operating
income
|
25.3
|
|
|
21.7
|
|
|
45.4
|
|
|
34.1
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
Industrial
Products:
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
0.2
|
|
|
0.2
|
|
|
0.5
|
|
|
0.5
|
|
Stock based
compensation
|
0.0
|
|
|
0.0
|
|
|
0.1
|
|
|
0.1
|
|
Total Non-GAAP
Adjustments – Industrial Products
|
0.2
|
|
|
0.2
|
|
|
0.6
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
Technology
Products - Europe:
|
|
|
|
|
|
|
|
Reverse results of
Germany included in GAAP continuing
operations
|
0.0
|
|
|
0.1
|
|
|
0.0
|
|
|
0.2
|
|
Intangible asset
amortization
|
0.0
|
|
|
0.0
|
|
|
0.0
|
|
|
0.1
|
|
Stock based
compensation
|
0.2
|
|
|
0.0
|
|
|
0.3
|
|
|
0.0
|
|
Total Non-GAAP
Adjustments: Technology Products Europe
|
0.2
|
|
|
0.1
|
|
|
0.3
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
Technology
Products - NA:
|
|
|
|
|
|
|
|
Reverse results of
NATG included in GAAP continuing
operations
|
0.0
|
|
|
0.4
|
|
|
0.0
|
|
|
0.4
|
|
Total Non-GAAP
Adjustments: Technology Products NA
|
0.0
|
|
|
0.4
|
|
|
0.0
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
Corporate and
Other:
|
|
|
|
|
|
|
|
Stock based
compensation
|
0.2
|
|
|
0.4
|
|
|
0.4
|
|
|
0.7
|
|
Total Non-GAAP
Adjustments: Corporate and Other
|
0.2
|
|
|
0.4
|
|
|
0.4
|
|
|
0.7
|
|
|
|
|
|
|
|
|
|
Industrial
Products
|
23.2
|
|
|
23.1
|
|
|
39.9
|
|
|
36.0
|
|
Technology Products-
France
|
7.4
|
|
|
5.8
|
|
|
16.8
|
|
|
11.8
|
|
Technology Products-
NA
|
0.0
|
|
|
0.0
|
|
|
0.0
|
|
|
0.0
|
|
Corporate and
Other
|
(4.7)
|
|
|
(6.1)
|
|
|
(10.0)
|
|
|
(11.7)
|
|
Non-GAAP operating
income
|
$
|
25.9
|
|
|
$
|
22.8
|
|
|
$
|
46.7
|
|
|
$
|
36.1
|
|
SYSTEMAX
INC.
|
Reconciliation of
GAAP Net Income (Loss) from Continuing Operations to
Non-GAAP
|
Net Income (Loss)
from Continuing Operations – Unaudited
|
(In
millions)
|
|
|
Quarter Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
GAAP
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
|
17.8
|
|
|
$
|
19.3
|
|
|
$
|
32.0
|
|
|
$
|
29.6
|
|
Provision for income
taxes from continuing operations
|
7.5
|
|
|
2.5
|
|
|
13.3
|
|
|
4.8
|
|
Income from
continuing operations before income taxes
|
25.3
|
|
|
21.8
|
|
|
45.3
|
|
|
34.4
|
|
Interest and other
(income) expense from continuing operations, net
|
0.0
|
|
|
(0.1)
|
|
|
0.1
|
|
|
(0.3)
|
|
Operating income from
continuing operations
|
25.3
|
|
|
21.7
|
|
|
45.4
|
|
|
34.1
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
Reverse results of
Germany included in GAAP operating income
from continuing operations
|
0.0
|
|
|
0.5
|
|
|
0.0
|
|
|
0.6
|
|
Recurring
adjustments
|
0.6
|
|
|
0.6
|
|
|
1.3
|
|
|
1.4
|
|
Adjusted operating
income
|
25.9
|
|
|
22.8
|
|
|
46.7
|
|
|
36.1
|
|
Interest and other
expense (income), net
|
0.0
|
|
|
(0.1)
|
|
|
0.1
|
|
|
(0.3)
|
|
Income before income
taxes
|
25.9
|
|
|
22.9
|
|
|
46.6
|
|
|
36.4
|
|
Normalized provision
for income taxes
|
7.8
|
|
|
8.0
|
|
|
14.0
|
|
|
12.7
|
|
Normalized effective
tax rate (1)
|
30.0
|
%
|
|
35.0
|
%
|
|
30.0
|
%
|
|
35.0
|
%
|
Non-GAAP net income
from continuing operations
|
$
|
18.1
|
|
|
$
|
14.9
|
|
|
$
|
32.6
|
|
|
$
|
23.7
|
|
|
|
|
|
|
|
|
|
GAAP net income
per diluted share from continuing operations
|
$
|
0.47
|
|
|
$
|
0.52
|
|
|
$
|
0.84
|
|
|
$
|
0.79
|
|
Non-GAAP net
income per diluted share from continuing
operations
|
$
|
0.48
|
|
|
$
|
0.40
|
|
|
$
|
0.86
|
|
|
$
|
0.64
|
|
|
(1)
Effective tax rate of 30% used in the second quarter and first half
of 2018 and 35% in the second quarter and first half of
2017.
|
View original
content:http://www.prnewswire.com/news-releases/systemax-reports-second-quarter-2018-financial-results-and-enters-definitive-agreement-for-sale-of-france-operations-300689496.html
SOURCE Systemax Inc.