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Systemax cites productivity gains in higher sales, net income

The Port Washington seller of industrial and technology products said it has "financial flexibility to pursue strategic acquisitions."

The Port Washington headquarters of Systemax, a distributor

The Port Washington headquarters of Systemax, a distributor of industrial and technology products. Photo Credit: Systemax

Systemax Inc., a Port Washington-based distributor of industrial and technology products, Tuesday cited productivity initiatives in reporting gains in first quarter sales and net income.

Net sales for the period ended March 31 were $355.2 million, a 17.4 percent increase compared to the 2017 quarter.

Net income from continuing operations was $14.2 million, or 37 cents per diluted share, versus $10.3 million, or 28 cents per diluted share, in the prior year's quarter.

Systemax, with about 1,900 employees, sells technology products in France and industrial products in North America through e-commerce websites, catalogs, social media and a sales force.

"We are generating strong cash flows and continue to return capital to shareholders through our dividend, while maintaining significant financial flexibility to pursue strategic acquisitions," Larry Reinhold, Systemax president and chief executive, said in a statement.

"Gross and operating margins showed improvement as we increased leverage across our operations and continued to capitalize on our productivity initiatives." The financial term "leverage" refers to the use of borrowed money.

Shares of Systemax edged down 0.2 percent to close Tuesday at $31.37. The company's shares have more than doubled in the past 12 months.

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