Global Industrial Company Reports Third Quarter 2024 Financial Results

Third Quarter 2024 Financial Summary:

• Consolidated sales decreased 3.4% to $342.4 million compared to $354.6 million last year.

• Consolidated gross margin increased to 34.0% compared to 32.8% last year.

• Consolidated operating income from continuing operations decreased 21.3% to $22.2 million compared to $28.2 million last year.

• Net income per diluted share from continuing operations decreased 18.5% to $0.44 compared to $0.54 last year.

Year to Date Q3 2024 Financial Summary:

• Consolidated sales increased 6.2% to $1.0 billion compared to $954.2 million last year. Excluding Indoff, acquired on May 19, 2023, sales increased 0.7%.

• Consolidated gross margin increased to 34.5% compared to 34.3% last year. Excluding Indoff, gross margin was 36.1%, an 80 basis point improvement over prior year.

• Consolidated operating income from continuing operations decreased 12.1% to $66.0 million compared to $75.1 million last year. Excluding Indoff, operating income was $61.0 million, a decrease of 14.7%.

• Net income per diluted share from continuing operations decreased 9.7% to $1.30 compared to $1.44 last year.

Richard Leeds, Executive Chairman of the Board and Interim Chief Executive Officer, said, "Third quarter results reflect a weak demand environment and continued softness in our core small and medium business customer base. Our strategic account business delivered another quarter of strong growth and customer retention rates remain healthy."

"We have a terrific business and a talented team. However, we are disappointed with recent results and have identified key areas for improvement. We are addressing this through a renewed focus on engaging and serving core customers, better communicating our value proposition to the market, and playing to our competitive strengths. As our efforts gain traction over the next few quarters, and the market environment improves, we will be in a stronger position to enhance our performance. We continue to maintain an exceptional balance sheet, and make further investments in our growth initiatives to drive long-term value for our stockholders."

At September 30, 2024, the Company had total working capital of $180.9 million, cash and cash equivalents of $38.9 million, and excess availability under its credit facility of approximately $120.6 million. Operating cash flow provided by continuing operations in the quarter was $9.6 million. The Company's Board of Directors has declared a cash dividend of $0.25 per share to common stock shareholders of record at the close of business on November 11, 2024, payable on November 18, 2024.

Earnings Conference Call Details

Global Industrial Company will host a conference call and question and answer session on its third quarter 2024 results today, October 29, 2024 at 5:00 p.m. Eastern Time. A live webcast of the remarks will be available on the Company's website at https://investors.globalindustrial.com in the events section. The webcast will also be archived on the website for approximately 90 days.

About Global Industrial Company

Global Industrial Company (NYSE:GIC), through its operating subsidiaries, is a value-added distributor. For 75 years, Global Industrial has gone the extra mile for its customers, currently offering hundreds of thousands of industrial and MRO products needed to run businesses and facilities. Global Industrial is committed to its customer-centric strategy, and utilizes a team of subject matter experts, products from its Global Industrial Exclusive Brands ^TM , and national vendor relationships to help customers succeed. At Global Industrial, "We Can Supply That ^® ".

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. Any such statements 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. 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. Forward-looking statements in this report are based on the Company's beliefs and expectations as of the date of this report and are subject to risks and uncertainties which may have a significant impact on the Company's business, operating results or financial condition. Investors are cautioned that these forward-looking statements are inherently uncertain and undue reliance should not be placed on them. Important risk factors that may affect our future results of operations and financial condition are detailed from time to time in our Securities and Exchange Commission filings. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected events, except as may be required by applicable law.

Investor/Media Contacts:
Mike Smargiassi
The Plunkett Group
212-739-6729
[email protected]

GLOBAL INDUSTRIAL COMPANY
Condensed Consolidated Statements of Operations - Unaudited
(In millions, except per share amounts)