Systemax Inc. (SYX) saw its loss narrow to $5.80 million, or $0.16 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $10.30 million, or $0.27 a share.
Revenue during the quarter went down marginally by 2.01 percent to $414.80 million from $423.30 million in the previous year period. Gross margin for the quarter contracted 73 basis points over the previous year period to 18.83 percent. Operating margin for the quarter stood at negative 0.84 percent as compared to a positive 0.80 percent for the previous year period.
Operating loss for the quarter was $3.50 million, compared with an operating income of $3.40 million in the previous year period.
However, the adjusted operating income for the quarter stood at $0.30 million compared to $5.60 million in the prior year period. At the same time, adjusted operating margin contracted 125 basis points in the quarter to 0.07 percent from 1.32 percent in the last year period.
Larry Reinhold, Chief Executive Officer, said, "During the quarter our Industrial Products Group extended its record of revenue growth to 27 consecutive quarters despite a somewhat soft market. Industrial continued the integration and optimization of its national distribution network, expanded its sales force by almost 10 percent, and held two additional Customer and Vendor Trade Shows, in Wisconsin and New York. In the past 5 years we have more than doubled Industrial’s size and scope of operations, the vast majority of which has been organic."
Working capital declines
Systemax Inc. has witnessed a decline in the working capital over the last year. It stood at $188.50 million as at Sep. 30, 2016, down 24.48 percent or $61.10 million from $249.60 million on Sep. 30, 2015. Current ratio was at 1.59 as on Sep. 30, 2016, up from 1.58 on Sep. 30, 2015.
Days sales outstanding went down to 61 days for the quarter compared with 68 days for the same period last year.
Days inventory outstanding has decreased to 16 days for the quarter compared with 63 days for the previous year period.
Debt comes down significantly
Systemax Inc. has recorded a decline in total debt over the last one year. It stood at $0.30 million as on Sep. 30, 2016, down 82.35 percent or $1.40 million from $1.70 million on Sep. 30, 2015. Total debt was 0.05 percent of total assets as on Sep. 30, 2016, compared with 0.23 percent on Sep. 30, 2015.
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