Systemax, Inc. (SYX) Reports In-Line Q2 EPS, Revenues Beat

Systemax, Inc. (NYSE: SYX) reported Q2 EPS of $0.48, in-line with the analyst estimate of $0.48. Revenue for the quarter came in at $363.1 million versus the consensus estimate of $361.77 million.

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.

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."

For earnings history and earnings-related data on Systemax, Inc. (SYX) click here.

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