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Fourth Quarter 2023 Financial Summary:

Consolidated sales increased 22.9% to $320.1 million in U.S. dollars compared to $260.5 million last year. Excluding Indoff, acquired on May 19, 2023, sales increased 5.1% as compared to the year ago period and 5.2% on an average daily sales basis .
Consolidated gross margin declined to 33.8% compared to 36.0% last year. Excluding Indoff, gross margin was 35.9%, a 10 basis point reduction to prior year.
Consolidated operating income from continuing operations increased 20.9% to $21.4 million compared to $17.7 million last year. Excluding Indoff, operating income was $19.3 million, an increase of 9.0%.
Net income per diluted share from continuing operations increased 14.3% to $0.40 compared to $0.35 last year.

Year Ended 2023 Financial Summary:

Consolidated sales increased 9.3% to $1.27 billion in U.S. dollars compared to $1.17 billion last year. Excluding Indoff, sales declined 0.7% as compared to the year ago period and 0.3% on an average daily sales basis.
Consolidated gross margin declined to 34.2% compared to 36.1% last year. Excluding Indoff, gross margin was 35.5%.
Consolidated operating income from continuing operations decreased 8.3% to $96.5 million compared to $105.2 million last year. Excluding Indoff, operating income was $90.8 million, a decrease of 13.7%.
Net income per diluted share from continuing operations decreased 9.8% to $1.84 compared to $2.04 last year.

Barry Litwin, Chief Executive Officer, said "In 2023 we continued to execute against our ACE strategy. Revenue reached a record $1.27 billion, as we benefited from the acquisition of Indoff, while organic revenue performance reflects the soft start to the year. As we moved through 2023, the demand environment improved, pricing pressures eased and we delivered solid second half results. In the fourth quarter we posted our best top line growth of the year as organic revenue improved 5.1%. These gains reflect continued volume improvement and strength in our e-commerce channel. We ended the year with a modest increase in our cash position, even after we fully funded the Indoff acquisition. Given the strong cash flow generation of the business, today we announced a 25% increase in the quarterly recurring dividend, the 8th consecutive annual increase."

"In 2024, we are committed to making the investments that will drive our future performance. Initiatives across the business are designed to elevate Global Industrial's position as an indispensable business partner, enhance the buying experience, expand our Global Industrial Exclusive Brands products, and highlight the value we bring every day to our customers. These efforts will position us to strengthen our competitive position, drive operational efficiencies, and capture share. While the market environment remains one of caution, we have seen modest organic growth to start the year. We remain well positioned to execute on our strategy, invest in our growth drivers, evaluate strategic opportunities, and build long-term value for our stakeholders."

At December 31, 2023, the Company had total working capital of $155.6 million, cash and cash equivalents of $34.4 million, and excess availability under its credit facility of approximately $101.2 million. Operating cash flow generated by continuing operations in the quarter was approximately $8.2 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 March 11, 2024, payable on March 18, 2024. The Company anticipates continuing a regular quarterly dividend in the future.

Global Industrial Company will host a conference call and question and answer session on its fourth quarter 2023 results today, February 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.

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 and national vendor relationships to help customers succeed. Global Industrial. "We Can Supply That".

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.

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

GLOBAL INDUSTRIAL COMPANY
Condensed Consolidated Balance Sheets - Unaudited
(In millions)

GLOBAL INDUSTRIAL COMPANY
Condensed Consolidated Statements of Cash Flows - Unaudited
(In millions)

	Year Ended December 31,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income from continuing operations	$	70.7		$	78.1
Adjustments to reconcile net income from continuing operations to net cash provided by (used in) operating activities:
Depreciation and amortization		6.4			3.9
Stock-based compensation		3.0			4.5
Provision for deferred taxes		2.0			0.0
Change in working capital		26.7			(38.2	)
Other, net		3.2			1.5
Net cash provided by operating activities from continuing operations		112.0			49.8
Net cash provided by operating activities from discontinued operations		0.0			0.4
Net cash provided by operating activities		112.0			50.2

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(3.9	)		(7.4	)
Proceeds from disposals of property, plant and equipment		0.0			0.3
Purchase of Indoff LLC, net of cash acquired		(72.3	)		0.0
Net cash used in investing activities from continuing operations		(76.2	)		(7.1	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under credit facility		(0.6	)		(3.9	)
Dividends paid		(30.6	)		(27.6	)
Stock-based compensation share issuances, net		1.5			1.8
Net cash used in financing activities from continuing operations		(29.7	)		(29.7	)

EFFECT OF EXCHANGE RATE CHANGES ON CASH		(0.2	)		(0.3	)

NET INCREASE IN CASH		5.9			13.1
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR		28.5			15.4
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	34.4		$	28.5

SOURCE: Global Industrial Company

Global Industrial Reports Fourth Quarter and Full Year 2023 Financial Results