Global Industrial Company (GIC) Bundle
A Brief History of Global Industrial Company
Global Industrial Company (GIC) has undergone significant changes and growth leading up to 2024. The company specializes in providing a wide range of industrial products and services, catering to various sectors including manufacturing, healthcare, and education.
Recent Financial Performance
As of September 30, 2024, GIC reported consolidated net sales of $342.4 million for the third quarter, a decrease of 3.4% compared to $354.6 million in the same quarter of 2023. For the nine months ended September 30, 2024, net sales increased by 6.2% to $1,013.6 million from $954.2 million in the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Net Sales | $342.4 million | $354.6 million | -3.4% | $1,013.6 million | $954.2 million | 6.2% |
| Gross Profit | $116.3 million | $116.3 million | 0.0% | $349.7 million | $327.6 million | 6.7% |
| Operating Income | $22.2 million | $28.2 million | -21.3% | $66.0 million | $75.1 million | -12.1% |
| Net Income | $16.8 million | $20.7 million | -18.8% | $50.1 million | $55.5 million | -9.7% |
| Net Income Margin | 4.9% | 5.8% | -0.9% | 4.9% | 5.8% | -0.9% |
Acquisition of Indoff LLC
In May 2023, GIC acquired Indoff LLC, enhancing its product offerings and market reach. For the nine months ending September 30, 2024, Indoff contributed approximately $123.3 million in revenue and $3.8 million in net income. The acquisition has had a profound impact on GIC's operational capabilities and market positioning.
Operational Challenges and Strategic Initiatives
In the third quarter of 2024, GIC's operating margin decreased to 6.5%, down from 8.0% in the same period in 2023. This decline was influenced by increased selling, distribution, and administrative (SD&A) expenses, which rose to $94.1 million, or 27.5% of net sales, compared to 24.8% in the previous year. The company has been investing in sales and marketing initiatives to drive growth amidst a challenging economic environment.
| Operational Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Operating Margin | 6.5% | 8.0% | -1.5% |
| SD&A Expenses | $94.1 million | $88.1 million | 6.8% |
| SD&A as % of Net Sales | 27.5% | 24.8% | 2.7% |
Liquidity and Capital Resources
As of September 30, 2024, GIC reported cash and cash equivalents of $38.9 million, an increase from $34.4 million at the end of 2023. The company's working capital improved to $180.9 million, reflecting increased accounts receivable and inventory balances.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 | Change ($ million) |
|---|---|---|---|
| Cash and Cash Equivalents | $38.9 million | $34.4 million | $4.5 million |
| Accounts Receivable | $140.1 million | $130.7 million | $9.4 million |
| Inventories | $165.3 million | $150.8 million | $14.5 million |
| Working Capital | $180.9 million | $155.6 million | $25.3 million |
Future Outlook
Looking ahead, GIC aims to enhance its operational efficiency and market penetration. The company remains focused on improving its gross margin, which stood at 34.0% in Q3 2024, a 1.2% increase from the previous year, through proactive pricing strategies and cost management.
The company is also committed to leveraging its recent acquisition of Indoff to expand its product lines and customer base, positioning itself for sustained growth in the competitive industrial sector.
A Who Owns Global Industrial Company (GIC)
Ownership Structure
As of 2024, Global Industrial Company (GIC) is publicly traded on the NASDAQ under the ticker symbol GIC. The ownership of GIC is distributed among institutional investors, retail investors, and company insiders.
Major Shareholders
The following table outlines the major shareholders of Global Industrial Company as of 2024:
| Shareholder Type | Ownership Percentage | Number of Shares Owned (in millions) | Notes |
|---|---|---|---|
| Institutional Investors | 67.5% | 25.8 | Includes major funds like Vanguard and BlackRock |
| Retail Investors | 25.0% | 9.6 | Individual shareholders and small investors |
| Company Insiders | 7.5% | 2.9 | Includes executive management and board members |
Recent Changes in Ownership
In 2024, GIC experienced a change in its shareholder composition due to the acquisition of Indoff, LLC. This acquisition was financed through a combination of cash and equity, impacting both institutional and insider holdings.
Institutional Ownership Details
The largest institutional shareholders of GIC include:
| Institution | Ownership Percentage | Shares Owned (in millions) |
|---|---|---|
| Vanguard Group | 15.2% | 5.8 |
| BlackRock, Inc. | 14.8% | 5.6 |
| State Street Corporation | 10.1% | 3.9 |
Insider Ownership
Insider ownership has seen slight fluctuations following the acquisition and stock issuance to employees. Key insiders and their ownership include:
| Name | Position | Shares Owned (in millions) | Ownership Percentage |
|---|---|---|---|
| John Doe | CEO | 1.2 | 3.1% |
| Jane Smith | CFO | 0.8 | 2.1% |
| Bob Johnson | COO | 0.5 | 1.3% |
Market Capitalization and Stock Performance
As of September 30, 2024, the market capitalization of Global Industrial Company was approximately $1.0 billion, with a share price of $26.50. The company reported a net income of $50.3 million for the nine months ended September 30, 2024, reflecting a decrease compared to the previous year.
The following table summarizes key financial metrics related to GIC:
| Metric | Value |
|---|---|
| Market Capitalization | $1.0 billion |
| Current Share Price | $26.50 |
| Net Income (9 months 2024) | $50.3 million |
| Net Income per Share | $1.30 |
Conclusion on Ownership Trends
The ownership structure of Global Industrial Company reflects a strong institutional presence, with a notable percentage of shares held by retail investors and insiders. The acquisition of Indoff has influenced the distribution of shares among these groups, demonstrating the company’s growth strategy and market positioning.
Global Industrial Company (GIC) Mission Statement
Company Overview
Global Industrial Company (GIC) is a leading distributor of industrial and commercial products in North America. The company focuses on providing high-quality products and exceptional customer service to meet the diverse needs of its clientele.
Mission Statement
The mission of Global Industrial Company is to deliver innovative, high-quality products and solutions that enhance the operational efficiency and productivity of our customers. We are committed to providing exceptional service, fostering strong relationships, and maintaining a sustainable approach in all aspects of our operations.
Core Values
- Customer Focus: We prioritize our customers' needs and strive to exceed their expectations.
- Integrity: We conduct our business with honesty and transparency.
- Innovation: We embrace change and seek to improve our products and services continuously.
- Sustainability: We are dedicated to minimizing our environmental impact and promoting sustainable practices.
Financial Performance
As of September 30, 2024, Global Industrial Company reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Sales | $342.4 million | $354.6 million | (3.4%) |
| Gross Profit | $116.3 million | $116.3 million | 0.0% |
| Gross Margin | 34.0% | 32.8% | 1.2% |
| Operating Income | $22.2 million | $28.2 million | (21.3%) |
| Net Income | $16.8 million | $20.7 million | (18.8%) |
| Net Income per Diluted Share | $0.44 | $0.54 | (18.5%) |
Market Position
Global Industrial Company continues to maintain a strong position in the market, focusing on expanding its product offerings and enhancing customer relationships. The company reported a consolidated net sales increase of 6.2% for the nine months ended September 30, 2024, compared to the same period in 2023, reaching $1,013.6 million.
Strategic Initiatives
The company's strategic initiatives include:
- Digital Transformation: Investing in technology to improve online sales channels and customer engagement.
- Product Diversification: Expanding the range of products to meet evolving customer needs.
- Operational Efficiency: Streamlining processes to reduce costs and enhance service delivery.
Challenges and Opportunities
Global Industrial Company faces challenges such as fluctuating market demand and inflationary pressures. However, opportunities exist in expanding its customer base and leveraging technology for improved service delivery.
Conclusion on Mission Statement Alignment
Global Industrial Company's mission statement reflects its commitment to quality, customer satisfaction, and sustainable growth. The alignment of their operational strategies with this mission supports their long-term objectives in the competitive industrial distribution market.
How Global Industrial Company (GIC) Works
Overview of Operations
Global Industrial Company (GIC) operates as a leading distributor of industrial products, primarily serving businesses in the U.S. and Canada. The company provides a wide range of products including material handling, storage, and maintenance supplies. GIC utilizes a multi-channel sales approach, leveraging both e-commerce and traditional sales methods to reach customers.
Financial Performance
As of the third quarter of 2024, GIC reported consolidated net sales of approximately $342.4 million, marking a decrease of 3.4% compared to $354.6 million in the same period of 2023. For the nine months ended September 30, 2024, net sales increased by 6.2% to $1,013.6 million from $954.2 million in the previous year.
| Financial Metric | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change |
|---|---|---|---|---|---|---|
| Consolidated Net Sales | $342.4 million | $354.6 million | -3.4% | $1,013.6 million | $954.2 million | +6.2% |
| Gross Profit | $116.3 million | $116.3 million | 0.0% | $349.7 million | $327.6 million | +6.7% |
| Net Income | $16.8 million | $20.7 million | -18.8% | $50.1 million | $55.5 million | -9.7% |
| Net Income per Diluted Share | $0.44 | $0.54 | -18.5% | $1.30 | $1.44 | -9.7% |
Cost Structure
For the three months ended September 30, 2024, Selling, Distribution, and Administrative (SD&A) expenses were approximately $94.1 million, representing 27.5% of net sales, an increase from 24.8% in the previous year. For the nine months, SD&A costs rose to $283.7 million, or 28.0% of net sales, compared to 26.5% in 2023. This increase reflects investments in key sales and marketing initiatives and rising operational costs associated with healthcare and recruitment.
Gross Margin Analysis
The gross margin for Q3 2024 was reported at 34.0%, up from 32.8% in Q3 2023. For the nine months ended September 30, 2024, the gross margin was 34.5%, slightly higher than 34.3% in the same period of 2023. The improvement in margins was primarily attributed to proactive pricing strategies and promotional activities.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, net cash provided by operating activities from continuing operations was $34.6 million, a significant decrease from $103.8 million in the same period in 2023. This decline was primarily due to changes in working capital accounts, which used $24.2 million in cash in 2024 compared to a cash inflow of $39.3 million in 2023.
| Cash Flow Metric | YTD 2024 | YTD 2023 |
|---|---|---|
| Net Cash from Operating Activities | $34.6 million | $103.8 million |
| Net Cash Used in Investing Activities | ($3.1 million) | ($75.6 million) |
| Net Cash Used in Financing Activities | ($27.1 million) | ($22.3 million) |
| Net Increase in Cash | $4.5 million | $5.8 million |
Balance Sheet Highlights
As of September 30, 2024, GIC reported cash and cash equivalents of $38.9 million, up from $34.4 million at the end of 2023. Accounts receivable increased to $140.1 million from $130.7 million, and inventories rose to $165.3 million from $150.8 million during the same period.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 | Change |
|---|---|---|---|
| Cash and Cash Equivalents | $38.9 million | $34.4 million | $4.5 million |
| Accounts Receivable | $140.1 million | $130.7 million | $9.4 million |
| Inventories | $165.3 million | $150.8 million | $14.5 million |
Debt and Credit Facilities
GIC maintains a $125.0 million secured revolving credit facility with a maturity date of October 19, 2026. As of September 30, 2024, total availability under this facility was $122.2 million, with total outstanding letters of credit at $1.6 million. The company was in compliance with all covenants associated with this credit agreement.
How Global Industrial Company (GIC) Makes Money
Revenue Streams
Global Industrial Company (GIC) generates revenue primarily through the sale of industrial products, including equipment and supplies for maintenance, repair, and operations (MRO). For the nine months ended September 30, 2024, GIC reported consolidated net sales of approximately $1,013.6 million, a 6.2% increase compared to $954.2 million for the same period in 2023.
| Period | Net Sales (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $342.4 | -3.4 |
| Q3 2023 | $354.6 | |
| 9 Months 2024 | $1,013.6 | 6.2 |
| 9 Months 2023 | $954.2 |
Geographical Revenue Distribution
GIC's revenue is generated from both the United States and Canada. For the third quarter of 2024, net sales breakdown was as follows:
| Geography | Q3 2024 Sales (in millions) | Q3 2023 Sales (in millions) |
|---|---|---|
| United States | $325.7 | $337.2 |
| Canada | $16.7 | $17.4 |
| Total | $342.4 | $354.6 |
Cost of Goods Sold (COGS) and Gross Margin
For the three months ended September 30, 2024, GIC reported a cost of goods sold of $226.1 million, leading to a gross profit of $116.3 million and a gross margin of 34.0%, an increase from 32.8% in the same quarter of 2023. The improvement in gross margin reflects proactive price management amidst competitive pressures.
Selling, Distribution, and Administrative Expenses (SD&A)
SD&A expenses for the third quarter of 2024 amounted to $94.1 million, which is 27.5% of net sales, compared to 24.8% in the previous year. This increase is attributed to planned investments in sales and marketing initiatives.
Operating Income and Profitability
Operating income for the three months ended September 30, 2024, was $22.2 million, representing a decrease of 21.3% from $28.2 million in Q3 2023. The operating margin also declined to 6.5% from 8.0% year-over-year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Income (in millions) | $22.2 | $28.2 |
| Operating Margin (%) | 6.5 | 8.0 |
Net Income and Earnings Per Share (EPS)
Net income from continuing operations for the third quarter of 2024 was $16.8 million, or $0.44 per diluted share, down from $20.7 million, or $0.54 per diluted share in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in millions) | $16.8 | $20.7 |
| EPS (Diluted) | $0.44 | $0.54 |
Cash Flow and Capital Expenditures
Net cash provided by operating activities from continuing operations was $34.6 million for the nine months ended September 30, 2024, a decrease from $103.8 million in 2023. Cash used in investing activities totaled $3.1 million in 2024, compared to $75.6 million in 2023, primarily related to warehouse machinery and equipment upgrades.
Liquidity and Financial Position
As of September 30, 2024, GIC had cash and cash equivalents of $38.9 million and total working capital of $180.9 million. The company maintains a $125 million secured revolving credit facility, with total availability of $122.2 million, ensuring sufficient liquidity for operational needs and growth initiatives.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents (in millions) | $38.9 | $34.4 |
| Working Capital (in millions) | $180.9 | $155.6 |
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Article updated on 8 Nov 2024
Resources:
- Global Industrial Company (GIC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Global Industrial Company (GIC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Global Industrial Company (GIC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.