Global Industrial Company (NYSE:GIC) Q1 2024 Earnings Call Transcript

Tex Clark: Sure. Let me give you a little color on that, Anthony. So when we think about the year-over-year number at 16%, you got to remember that, obviously, we acquired a business that made up nearly over 10% of revenue. So that alone contributed about half of the SG&A growth rate just by having an additional business in the portfolio in Q1 this year as compared to last year. When we think about sequential changes, there’s obviously – we had highlighted in past quarters that we were going to be investing in sales and marketing initiatives that we think that’s prudent in a market that is somewhat challenged to be able to take share where we can and make sure we’re investing in those key growth elements even if it’s at the bottom line to drive that topline up right now.

And that’s one area that we’re going to continue to focus on. The only other thing we highlighted on today’s call, we did have about $900,000 of a quasi onetime related charge in the period, which is contributed to some of that incremental year-over-year growth.

Anthony Lebiedzinski: Got you. Okay. That’s very helpful. Okay. And then last question for me. So now that you’re almost one year after the Indoff deal, are you looking for any other additional acquisitions?

Barry Litwin: Yes, good question. So we’ve been pretty consistent in that. I mean, I think as much as we focus on our organic strategy, we absolutely consider acquisition as a component of our business going forward. So we definitely are looking at new types of opportunities that can bring us into new categories that can add to our business model, add customers, new channels to sell our private brand. Those are all really important to us. And when we come across those deals, we would take advantage of that. We’ve been pleased so far with what’s happened with Indoff up until this point, and we think there’s a lot more value to go there. But certainly, we’re constantly keeping our eyes out for opportunities on the acquisition front.

Anthony Lebiedzinski: Sounds good. Well, thank you very much, and best of luck.

Barry Litwin: Thank you.

Tex Clark: Thanks, Anthony.

Operator: …our question-and-answer session and conference for today. Thank you for attending today’s presentation. You may now disconnect.