Record Gross Margin Drives Improved Profitability
Sales of $262.0 Million, Down 4.3%; Sales Increase 3.5% on an Average Daily Sales Basis
Operating Income of $26.1 Million, Up 23.7% from Prior Year; Operating Margin Expands to 10.0%
EPS From Continuing Operations Increases 26.2% to $0.53
Board Declares $0.18 Dividend, an Increase of 12.5%

PORT WASHINGTON, NY / ACCESSWIRE / February 15, 2022 / Global Industrial Company (NYSE:GIC) today announced financial results for the fourth quarter ended December 31, 2021.

Performance Summary* (U.S. dollars in millions, except per share data)
Highlights		Quarter Ended December 31,		Year Ended December 31,
		2021	2020	2021	2020
Net sales		$ 262.0	$ 273.9	$ 1,063.1	$ 1,029.0
Gross profit		$ 97.0	$ 93.1	$ 374.3	$ 356.9
Gross margin		37.0 %	34.0 %	35.2 %	34.7 %
Operating income from continuing operations		$ 26.1	$ 21.1	$ 88.0	$ 84.1
Operating margin		10.0 %	7.7 %	8.3 %	8.2 %
Net income from continuing operations		$ 20.3	$ 16.4	$ 70.1	$ 64.1
Net income per diluted share from continuing operations		$ 0.53	$ 0.42	$ 1.84	$ 1.68

Net income (loss) from discontinued operations		$ 22.7	$ (0.2)	$ 33.2	$ 1.3
Net income (loss) per diluted share from discontinued operations		$ 0.60	$ (0.01)	$ 0.87	$ 0.03
*	Global Industrial Company manages its business and reports using a 52-53 week fiscal year that ends at midnight on the Saturday closest to December 31. For clarity of presentation, fiscal years and quarters are described as if they ended on the last day of the respective calendar month. The actual fiscal fourth quarter ended on January 1, 2022 and January 2, 2021, respectively. Average daily sales is calculated based upon the number of selling days in each period, with Canadian sales converted to US dollars using the current year's average exchange rate. The fourth quarter of 2021 included 13 weeks and 61 selling days, 5 fewer days, as compared to the fourth quarter of 2020 which included 14 weeks and 66 selling days. For the full year, 2021 had 4 fewer selling days than 2020. This is 7.6% and 1.6% less selling days for the quarter and year respectively.

Fourth Quarter 2021 Financial Summary:

Consolidated sales decreased 4.3% to $262.0 million in U.S. dollars compared to $273.9 million last year. The fourth quarter of 2021 had 61 selling days, five fewer days than the fourth quarter of 2020. Sales increased 3.5% on an average daily sales basis.
Consolidated operating income grew 23.7% to $26.1 million compared to $21.1 million last year.
Net income per diluted share from continuing operations increased 26.2% to $0.53 compared to $0.42 last year.

Year Ended 2021 Financial Summary:

Consolidated sales increased 3.3% to $1.06 billion in U.S. dollars compared to $1.03 billion last year. Sales increased 5.0% on an average daily sales basis.
Consolidated operating income increased 4.6% to $88.0 million compared to $84.1 million last year.
Net income per diluted share from continuing operations increased 9.5% to $1.84 compared to $1.68 last year.

Barry Litwin, Chief Executive Officer, said, "We ended 2021 with another solid financial performance on both the top and bottom line. Revenue in the quarter increased 3.5% on an average daily sales basis led by our managed sales channel, which continues to drive growth from core customers. For the full year, revenue grew to $1.06 billion, average daily sales improved 5.0% and our two-year compounded annual growth rate was 6%. Customer demand was strong throughout the quarter, and we were very pleased with the performance of core product lines. Open orders remained elevated as a result of ongoing constraints within the supply chain, which restricted top line results and had a modest impact on operational leverage. We drove improved profitability as we navigated supply chain and inflationary pressures and optimized pricing intelligence to deliver a 37.0% gross margin, a quarterly record. Operating income improved 23.7% and for the second consecutive quarter we achieved double digit operating margins, a significant achievement."

"I'm proud of how our organization has responded and risen to the challenges of the last year, as we executed on our strategy and delivered for our customers. As we move into 2022, we will continue to innovate and strengthen our competitive position. We are investing in key strategic initiatives, specifically in areas such as sales, marketing, private brand, digital transformation, and distribution. We believe these efforts will help us drive better execution, enhance our ability to deliver an exceptional customer experience, allow us to expand market share and support our growth for years to come."

At December 31, 2021, the Company had total working capital of $121.5 million, cash and cash equivalents of $15.4 million, debt of $4.5 million and availability under its credit facility of approximately $66.5 million. Operating cash flow generated by continuing operations in the quarter was approximately $5.0 million. In the fourth quarter of 2021 the Company recorded net income in its discontinued operations of approximately $22.7 million, primarily related to the resolution of certain liabilities of its previously discontinued operations. The Company's Board of Directors has declared a cash dividend of $0.18 per share to common stock shareholders of record at the close of business on February 28, 2022, payable on March 7, 2022. The Company anticipates continuing a regular quarterly dividend in the future.

Earnings Conference Call Details

Global Industrial Company will host a conference call and question and answer session on its fourth quarter 2021 results today, February 15, 2022 at 5:00 p.m. Eastern Time. A live webcast of the remarks will be available on the Company's website at investors.globalindustrial.com in the events section. The webcast will also be archived on investors.globalindustrial.com for approximately 90 days.

About Global Industrial Company

Global Industrial Company (NYSE:GIC), through its operating subsidiaries, is a value-added industrial distributor. For more than 70 years Global Industrial has gone the extra mile for its customers and offers more than a million industrial and MRO products, including its own Global Industrial exclusive brands. With extensive product knowledge and a solutions-based approach, Global Industrial helps customers solve problems and be more successful. At Global Industrial, "We can supply that®."

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 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. Forward-looking statements may include, but are not limited to statements regarding: i) projections or estimates of revenue, income or loss, exit costs, cash flow needs and capital expenditures; ii) fluctuations in general economic conditions; iii) future operations, such as, risks regarding strategic business initiatives, plans relating to new distribution facilities, plans for utilizing alternative sources of supply in response to government tariffs and trade actions and/or due to supply chain disruptions arising from the Coronavirus pandemic, and plans for new products or services; iv) plans for acquisition or sale of businesses, including expansion or restructuring plans; v) financing needs, and compliance with financial covenants in loan agreements; vi) assessments of materiality; vii) predictions of future events and the effects of pending and possible litigation; and viii) assumptions relating to the foregoing. In addition, 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. 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.

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 Securities and Exchange Commission filings: general economic conditions, such as customer inventory levels, interest rates, borrowing ability and economic conditions in the manufacturing and/or distribution industries generally, as well as government spending levels, will continue to impact our business; the temporary closing of many businesses, and reduced business activity, during the Coronavirus pandemic has negatively impacted the general economy, and decreased customer purchasing volume, generally, which negatively affected our business and may do so in future quarters until general business activity reaches pre-pandemic levels; additionally governmental mandated shutdowns of or restrictions on entities deemed to be non-essential businesses has negatively impacted sales of our products to those businesses and will continue to impact our sales as long as these restrictions are in place; the extent to which the Coronavirus pandemic continues to impact our operations and financial results will depend on numerous evolving factors including: the duration of the pandemic, our ability to keep our distribution centers operating productively and with minimal down time for Coronavirus safety and remediation efforts, governmental actions such as "stay at home" or "shelter in place" regulations or guidelines, that have been and continue to be taken in response to the pandemic, the impact, duration and severity of the pandemic on economic activity, how long it will take to return to more historic levels of economic growth, and the effect of the economic downturn on our customers and customer demand for our products; factors affecting the global supply chain and the shipping and distribution of products imported to the United States by us or our domestic vendors, such as extreme weather conditions, global availability of shipping containers, port congestion, and freight and fuel costs have adversely impacted our results and could continue to do so; these increases in freight and shipping costs have from time to time impacted our margins to the extent the increases could not be passed along to customers in a timely manner and may impact our margins again in the future; our reliance on common carrier delivery services for shipping inventoried merchandise to customers and our reliance on drop ship deliveries directly to customers by our product vendors for products we do not hold in inventory has also been adversely affected by these supply chain challenges; delays in the timely availability of products from our suppliers could delay receipt of needed product and result in lost sales; in this regard, global supply chains and the timely availability of products, particularly products, or product components used in domestic manufacturing, imported from China and other Asian nations as well as from other countries, have been, and in the future could continue to be adversely affected by allocation restrictions of difficult to source products by our vendors; the imposition of tariffs and other trade barriers, as well as retaliatory trade measures, have caused us to raise the prices on certain of our products and seek alternate sources of supply, which could negatively impact our sales or disrupt our operations in the future if we are not able to mitigate these measures; our use of alternate sources of supply, such as utilizing new vendors in additional countries, entails various risks, such as identifying, vetting and managing new business relationships, reliance on new vendors and maintaining quality control over their products, and protecting our intellectual property rights; quarantines, factory slowdowns or shutdowns, border closings and travel restrictions resulting from the Coronavirus pandemic have in the past and could in the future adversely affect the timely availability of products resulting in delayed or lost sales; liquidity constraints on our vendors or customers; our ability to maintain available capacity in our distribution operations for stocked inventory and to enable on time shipment and deliveries, such as by timely implementing additional temporary or permanent distribution resources, whether in the form of additional facilities we operate or by outsourcing certain functions to third party distribution and logistics partners; we compete with other companies for recruiting, training, integrating and retaining talented and experienced employees, particularly in markets where we and they have central distribution facilities; this aspect of competition is aggravated by the current tight labor market in the U.S. which is also undergoing competitive changes due to the Coronavirus pandemic; risks involved with e-commerce, including possible loss of business and customer dissatisfaction if outages or other computer-related problems should preclude customer access to our products and services; our information systems and other technology platforms supporting our sales, procurement and other operations are critical to our operations and disruptions or delays have occurred and could occur in the future, and if not timely addressed could have a material adverse effect on us; a data security breach due to our e-commerce, data storage or other information systems being hacked by those seeking to steal Company, vendor, employee or customer information, or due to employee error, resulting in disruption to our operations, litigation and/or loss of reputation or business; managing various inventory risks, such as being unable to profitably resell excess or obsolete inventory and/or the loss of product return rights from our vendors; meeting credit card industry compliance standards in order to maintain our ability to accept credit cards; rising interest rates, increased borrowing costs or limited credit availability, including our own ability to maintain satisfactory credit agreements and to renew credit facilities, could impact both our and our customers' ability to fund purchases and conduct operations in the ordinary course; pending or threatened litigation and investigations, and other government actions, such as anti-dumping, unclaimed property, or trade and customs actions have occurred in the past and although had no material impact to our business, could adversely affect our business and results of operation in the future and extreme weather conditions could disrupt our product supply chain and our ability to ship or receive products, which would adversely impact sales.

Investor/Media Contacts:

Mike Smargiassi
The Plunkett Group
212-739-6729
mike@theplunkettgroup.com

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


	Quarter Ended December 31,		Year Ended December 31,
	2021	2020	2021	2020
Net sales	$ 262.0	$ 273.9	$ 1,063.1	$ 1,029.0
Cost of sales	165.0	180.8	688.8	672.1
Gross profit	97.0	93.1	374.3	356.9
Gross margin	37.0 %	34.0 %	35.2 %	34.7 %
Selling, distribution and administrative expenses	70.9	72.0	286.3	272.8
Operating income from continuing operations	26.1	21.1	88.0	84.1
Operating margin	10.0 %	7.7 %	8.3 %	8.2 %
Interest and other expense, net	0.0	0.0	0.4	0.1
Income from continuing operations before income taxes	26.1	21.1	87.6	84.0
Provision for income taxes	5.8	4.7	17.5	19.9
Net income from continuing operations	20.3	16.4	70.1	64.1
Net income (loss) from discontinued operations	22.7	(0.2)	33.2	1.3
Net income	$ 43.0	$ 16.2	$ 103.3	$ 65.4

Net income per common share from continuing operations:
Basic	$ 0.53	$ 0.42	$ 1.85	$ 1.69
Diluted	$ 0.53	$ 0.42	$ 1.84	$ 1.68

Net income (loss) per common share from discontinued operations:
Basic	$ 0.60	$ (0.01)	$ 0.88	$ 0.03
Diluted	$ 0.60	$ (0.01)	$ 0.87	$ 0.03

Net income per common share:
Basic	$ 1.13	$ 0.41	$ 2.73	$ 1.72
Diluted	$ 1.13	$ 0.41	$ 2.71	$ 1.71

Weighted average common and common equivalent shares:
Basic	37.9	37.5	37.8	37.5
Diluted	38.0	37.7	38.0	37.7

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

	December 31,		December 31,
	2021		2020
Current assets:
Cash and cash equivalents	$	15.4	$	22.4
Accounts receivable, net		106.8		102.3
Inventories		172.8		132.3
Prepaid expenses and other current assets		6.4		6.8
Total current assets		301.4		263.8
Property, plant and equipment, net		16.5		16.6
Operating lease right-of-use assets		68.8		77.3
Goodwill, intangibles and other assets		18.3		17.2
Total assets	$	405.0	$	374.9

Current liabilities:
Accounts payable and accrued expenses	$	164.9	$	176.1
Short term debt		4.5		0.0
Operating lease liabilities		10.5		10.3
Total current liabilities		179.9		186.4
Other liabilities		3.0		4.5
Operating lease liabilities		68.5		77.2
Shareholders' equity		153.6		106.8
Total liabilities and shareholders' equity	$	405.0	$	374.9

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


	Year Ended December 31,
	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income from continuing operations	$	70.1		$	64.1
Adjustments to reconcile net income from continuing operations to net cash provided by (used in) operating activities:
Depreciation and amortization		3.7			4.1
Stock-based compensation		2.9			4.7
Benefit from deferred taxes		(3.2	)		(0.5	)
Change in working capital		(28.7	)		(6.3	)
Other, net		2.8			1.2
Net cash provided by operating activities from continuing operations		47.6			67.3
Net cash provided by operating activities from discontinued operations		2.2			0.9
Net cash provided by operating activities		49.8			68.2

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(3.4	)		(2.7	)
Net cash used in investing activities		(3.4	)		(2.7	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under credit facility		4.5			0.0
Dividends paid		(62.5	)		(134.3	)
Stock-based compensation share issuances, net		3.0			2.7
Repurchase of treasury shares		0.0			(7.2	)
Net cash used in financing activities from continuing operations		(55.0	)		(138.8	)

EFFECT OF EXCHANGE RATE CHANGES ON CASH		0.0			0.1

NET DECREASE IN CASH		(8.6	)		(73.2	)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR		24.0			97.2
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	15.4		$	24.0

SOURCE: Global Industrial Company

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Global Industrial Reports Fourth Quarter 2021 Financial Results