Performance Summary* | ||||
Highlights |
Quarter Ended |
Year Ended | ||
GAAP Results** |
2016 |
2015 |
2016 |
2015 |
Net sales |
|
|
|
|
Gross profit |
|
|
|
|
Gross margin |
19.7% |
18.7% |
19.3% |
18.5% |
Operating income (loss) |
|
|
|
( |
Operating margin |
1.7% |
0.3% |
0.2% |
(1.3)% |
Net income (loss) from continuing operations |
|
( |
( |
( |
Net income (loss) per share from continuing operations |
|
( |
( |
( |
Net income (loss) from discontinued operations |
( |
( |
( |
( |
Net income (loss) per share from discontinued operations |
( |
( |
( |
( |
Non-GAAP Results** |
||||
Net sales |
|
|
|
|
Gross profit |
|
|
|
|
Gross margin |
19.6% |
18.9% |
19.5% |
19.2% |
Operating income |
|
|
|
|
Operating margin |
1.6% |
0.8% |
0.9% |
1.2% |
Net income from continuing operations |
|
|
|
|
Net income per share from continuing operations |
|
|
|
|
Net income (loss) from discontinued operations |
|
( |
(30.4) |
|
Net income (loss) per share from discontinued operations |
|
( |
|
|
* The actual fiscal quarter ended on |
** On |
GAAP Fourth Quarter 2016 Financial Summary:
As the fourth quarter of 2015 included 14 weeks and the fourth quarter of 2016 included 13 weeks, the fourth quarter results are not directly comparable. The Company is now reporting "average daily sales" in order to enhance comparability.
Non-GAAP Fourth Quarter 2016 Continuing Operations Financial Summary:
GAAP Full Year 2016 Financial Summary:
As 2015 included 53 weeks and 2016 included 52 weeks, the full year results are not directly comparable. The Company is now reporting "average daily sales" in order to enhance comparability.
Non-GAAP Full Year 2016 Continuing Operations Financial Summary:
"
"Our
At
Earnings Conference Call Details
About
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
Other factors that may affect our future results of operations and financial condition include, but are not limited to, unanticipated developments in any one or more of the following areas, as well as other factors which may be detailed from time to time in our
Investor/Media Contacts:
212-986-6667
smarg@braincomm.com
perales@braincomm.com
Condensed Consolidated Statements of Operations - GAAP (In millions, except per share amounts) | |||||||||
Quarter Ended |
Year Ended |
||||||||
|
|
||||||||
2016 |
2015 |
2016 |
2015 |
||||||
Net sales |
|
|
|
|
|||||
Cost of sales |
333.0 |
378.4 |
1,355.4 |
1,512.0 |
|||||
Gross profit |
|
|
|
|
|||||
Gross margin |
19.7% |
18.7% |
19.3% |
18.5% |
|||||
Selling, general and administrative expenses |
72.4 |
84.2 |
314.7 |
|
|||||
Special charges |
2.3 |
1.5 |
5.9 |
|
|||||
Operating income (loss) from continuing operations |
|
|
|
( |
|||||
Operating margin |
1.7% |
0.3% |
0.2% |
(1.3)% |
|||||
Interest and other (income) expense, net |
1.9 |
2.5 |
2.0 |
|
|||||
Income (loss) from continuing operations before income taxes |
|
( |
|
( |
|||||
Provision for income taxes |
4.4 |
10.3 |
10.0 |
|
|||||
Net income (loss) from continuing operations |
|
( |
( |
( |
|||||
Net income (loss) from discontinued operations |
( |
( |
( |
( |
|||||
Net income (loss) |
|
( |
( |
( |
|||||
Net income (loss) per common share from continuing operations: |
|||||||||
Basic |
|
( |
( |
( |
|||||
Diluted |
|
( |
( |
( |
|||||
Net income (loss) per common share from discontinued operations: |
|||||||||
Basic |
( |
( |
( |
( |
|||||
Diluted |
( |
( |
( |
( |
|||||
Weighted average common and common equivalent shares: |
|||||||||
Basic |
37.2 |
37.1 |
37.2 |
37.1 |
|||||
Diluted |
37.2 |
37.1 |
37.2 |
37.1 |
|||||
Condensed Consolidated Balance Sheets - GAAP (In millions) | |||
|
| ||
2016
|
2015
| ||
Current assets: |
|||
Cash and cash equivalents |
|
| |
Accounts receivable, net |
214.5 |
266.3 | |
Inventories |
140.7 |
144.4 | |
Prepaid expenses and other current assets |
6.3 |
14.5 | |
Total current assets |
511.2 |
640.3 | |
Property, plant and equipment, net |
29.5 |
38.3 | |
|
25.4 |
31.5 | |
Total assets |
|
| |
Current liabilities: |
|||
Short-term debt |
|
| |
Accounts payable and accrued expenses |
324.9 |
425.5 | |
Total current liabilities |
325.0 |
426.1 | |
Long-term debt |
0.1 |
0.4 | |
Other liabilities |
26.6 |
29.7 | |
Shareholders' equity |
214.4 |
253.9 | |
Total liabilities and shareholders' equity |
|
|
* |
| ||||||
Supplemental Non-GAAP Continuing Operation Business Unit Summary Results - Unaudited | ||||||
| ||||||
Quarter Ended |
Year Ended | |||||
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
Sales |
|
|
(1.7)% |
|
|
2.4% |
Average daily sales* |
|
|
4.7% |
|
|
2.8% |
Gross profit |
|
|
(5.6)% |
|
|
(0.2)% |
Gross margin |
27.8% |
29.0% |
27.7% |
28.4% |
||
Operating income |
|
|
(1.0)% |
|
|
(20.0)% |
Operating margin |
5.6% |
5.5% |
4.9% |
6.3% |
||
| ||||||
Quarter Ended |
Year Ended | |||||
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
Sales |
|
|
(11.2)% |
|
|
(6.7)% |
Average daily sales** |
|
|
0.9% |
|
|
(2.1)% |
Gross profit |
|
|
(1.5)% |
|
|
(3.2)% |
Gross margin |
13.5% |
12.2% |
13.1% |
12.6% |
||
Operating loss |
|
( |
100.0% |
( |
( |
13.3% |
Operating margin |
0.0% |
(0.6)% |
(0.6)% |
(0.6)% |
||
Corporate & Other | ||||||
Quarter Ended |
Year Ended | |||||
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
Operating loss |
( |
( |
29.8% |
( |
( |
14.4% |
Consolidated | ||||||
Quarter Ended |
Year Ended | |||||
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
Sales |
|
|
(7.4)% |
|
|
(2.9)% |
Gross profit |
|
|
(4.0)% |
|
|
(1.4)% |
Gross margin |
19.6% |
18.9% |
19.5% |
19.2% |
||
Operating income |
|
|
80.6% |
|
|
(27.1)% |
Operating margin |
1.6% |
0.8% |
0.9% |
1.2% |
*Percentages are calculated using sales data in hundreds of thousands. |
** Percentages are calculated using sales data excluding Misco Germany in hundreds of thousands. |
1 On |
2 |
Reconciliation of Segment GAAP Operating Income (Loss) from Continuing Operations to Non-GAAP Operating Income (Loss) from Continuing Operations - Unaudited (In millions) | |||||||
Quarter Ended |
Year Ended | ||||||
|
| ||||||
2016 |
2015 |
2016 |
2015 | ||||
Industrial Products |
|
|
|
| |||
Technology Products - |
(1.9) |
(2.6) |
(12.5) |
(10.8) | |||
Technology Products - NA |
(0.4) |
(0.9) |
(2.8) |
(38.2) | |||
Corporate and Other |
(0.2) |
(5.0) |
(14.9) |
(18.8) | |||
GAAP operating income (loss) |
7.0 |
1.2 |
4.1 |
(24.1) | |||
Non-GAAP adjustments: |
|||||||
Industrial Products: |
|||||||
Integration Costs |
0.0 |
0.6 |
0.0 |
1.0 | |||
Intangible asset amortization |
0.2 |
0.1 |
0.5 |
0.3 | |||
Stock based and other special compensation |
0.1 |
(0.5) |
0.4 |
(1.0) | |||
Total Non-GAAP Adjustments - Industrial Products |
0.3 |
0.2 |
0.9 |
0.3 | |||
Technology Products - |
|||||||
Reverse results of Germany Operations |
(0.1) |
0.5 |
4.7 |
3.0 | |||
Severance and other reorganization charges |
0.0 |
0.0 |
0.0 |
0.7 | |||
Asset Impairment Charges |
2.0 |
0.4 |
2.0 |
0.7 | |||
Intangible asset amortization |
0.1 |
0.0 |
0.5 |
0.3 | |||
Stock based compensation |
(0.1) |
0.1 |
0.1 |
0.1 | |||
Total Non-GAAP Adjustments: Technology Products Europe |
1.9 |
1.0 |
7.3 |
4.8 | |||
Technology Products - NA: |
|||||||
Reverse results of NATG included in GAAP continuing operations |
0.4 |
0.9 |
2.8 |
38.2 | |||
Total Non-GAAP Adjustments : |
0.4 |
0.9 |
2.8 |
38.2 | |||
Corporate and Other: |
|||||||
Gain on sale of Afligo |
(3.9) |
0.0 |
(3.9) |
0.0 | |||
Reverse results of Afligo included in GAAP continuing operations |
0.5 |
0.2 |
2.2 |
0.1 | |||
Stock based compensation |
0.3 |
0.1 |
1.1 |
0.6 | |||
Total Non-GAAP Adjustments: Corporate and Other |
(3.1) |
0.3 |
(0.6) |
0.7 | |||
Industrial Products |
9.8 |
9.9 |
35.2 |
44.0 | |||
Technology Products- |
0.0 |
(1.6) |
(5.2) |
(6.0) | |||
|
0.0 |
0.0 |
0.0 |
0.0 | |||
Corporate and Other |
(3.3) |
(4.7) |
(15.5) |
(18.1) | |||
Non-GAAP operating income (loss) |
|
|
|
|
Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Non-GAAP Net Income (Loss) from Continuing Operations - Unaudited (In millions) | |||||||
Quarter Ended |
Year Ended | ||||||
|
| ||||||
2016 |
2015 |
2016 |
2015 | ||||
GAAP |
|||||||
Net income (loss) from continuing operations |
|
( |
( |
( | |||
Provision for (benefit from) income taxes from continuing operations |
4.4 |
10.3 |
10.0 |
13.5 | |||
Income (loss) from continuing operations before income taxes |
5.1 |
(1.3) |
2.1 |
(34.8) | |||
Interest and other (income) expense from continuing operations, net |
1.9 |
2.5 |
2.0 |
10.7 | |||
Operating income (loss) from continuing operations |
7.0 |
1.2 |
4.1 |
(24.1) | |||
Non-GAAP |
|||||||
Reverse results of NATG and |
0.3 |
1.4 |
7.5 |
41.2 | |||
Non-recurring adjustments |
0.0 |
0.6 |
0.0 |
1.7 | |||
Asset impairment charge |
2.0 |
0.4 |
2.0 |
0.7 | |||
Gain on Sale of Afligo |
(3.9) |
0.0 |
(3.9) |
0.0 | |||
Reverse results of Afligo included in GAAP continuing operations |
0.5 |
0.2 |
2.2 |
0.1 | |||
Recurring adjustments |
0.6 |
(0.2) |
2.6 |
0.3 | |||
Adjusted operating income (loss) |
6.5 |
3.6 |
14.5 |
19.9 | |||
Interest and other expense (income), net |
1.9 |
2.5 |
2.0 |
10.7 | |||
Reverse results of NATG and |
0.0 |
(0.9) |
(0.1) |
(5.1) | |||
Income before income taxes |
4.6 |
2.0 |
12.6 |
14.3 | |||
Normalized provision for (benefit from) income taxes |
1.6 |
0.7 |
4.4 |
5.0 | |||
Normalized effective tax rate(1) |
35.0% |
35.0% |
35.0% |
35.0% | |||
Non-GAAP net income from continuing operations |
|
|
|
| |||
GAAP net income (loss) per diluted share from continuing operations |
|
( |
( |
( | |||
Non-GAAP net income (loss) per diluted share from continuing operations |
|
|
|
|
(1) Effective tax rate of 35% used in all periods. |
Reconciliation of GAAP Net Income (Loss) from Discontinued Operations to Non-GAAP Net Income (Loss) from Discontinued Operations - Unaudited (In millions) | |||||||
Quarter Ended |
Year Ended | ||||||
|
| ||||||
2016 |
2015 |
2016 |
2015 | ||||
GAAP |
|||||||
Net income (loss) from discontinued operations |
( |
( |
( |
( | |||
Non-GAAP additions to discontinued operations |
|||||||
Results of NATG and |
(0.3) |
(1.4) |
(7.5) |
(41.2) | |||
Results of Afligo included in GAAP operating income from continuing operations |
(0.5) |
(0.2) |
(2.2) |
(0.1) | |||
NATG net tax adjustments |
0.3 |
(3.3) |
0.0 |
2.9 | |||
Gain on sale of Afligo |
3.9 |
0.0 |
3.9 |
0.0 | |||
NATG, |
0.0 |
0.9 |
0.1 |
5.1 | |||
Total Non-GAAP adjustments |
3.4 |
(4.0) |
(5.7) |
(33.3) | |||
Non-GAAP net income (loss) from discontinued operations |
|
( |
|
| |||
GAAP net income (loss) per diluted share from discontinued operations |
( |
( |
( |
( | |||
Non-GAAP net income (loss) per diluted share from discontinued operations |
|
|
|
| |||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/systemax-reports-fourth-quarter-2016-financial-results-300415196.html
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