Global Industrial Company reported its financial results for the three and nine months ended September 30, 2024, revealing a mixed performance compared to the previous fiscal period. For the third quarter, net sales decreased by 3.4% to $342.4 million, down from $354.6 million in Q3 2023. However, for the nine-month period, net sales increased by 6.2% to $1,013.6 million, compared to $954.2 million in the same period last year. The decline in quarterly sales was attributed to cautious demand from small and medium business customers, while the year-to-date growth was bolstered by a 6.7% increase in U.S. sales.
Gross profit for Q3 2024 remained stable at $116.3 million, while gross profit for the nine months rose to $349.7 million from $327.6 million in 2023. The gross margin for Q3 improved to 34.0%, up from 32.8% in the prior year, primarily due to effective price management. However, operating income from continuing operations fell by 21.3% to $22.2 million for the quarter and by 12.1% to $66.0 million for the nine months, reflecting increased selling, distribution, and administrative expenses.
Net income from continuing operations for Q3 2024 was $16.8 million, down from $20.7 million in Q3 2023, while year-to-date net income decreased to $50.1 million from $55.5 million. Correspondingly, net income per diluted share from continuing operations fell to $0.44 for Q3 2024, down from $0.54 in the prior year, and to $1.30 for the nine months, down from $1.44.
The company’s balance sheet showed improvements, with total current assets rising to $358.9 million from $329.8 million as of December 31, 2023. Cash and cash equivalents increased to $38.9 million, up from $34.4 million. Retained earnings saw a significant rise to $87.5 million from $66.0 million.
Strategically, Global Industrial completed the acquisition of Indoff LLC on May 19, 2023, for approximately $72.6 million, which contributed $44.8 million in revenue for Q3 2024 and $123.3 million for the nine months. The acquisition is expected to enhance the company's market presence in North America. However, the integration of Indoff's operations has led to increased costs, particularly in marketing and healthcare.
The company continues to face operational challenges, including a tight labor market and rising costs, while also working to strengthen its internal controls following identified weaknesses in its IT general controls.
About GLOBAL INDUSTRIAL Co
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