Global Industrial Company (NYSE:GIC) Q3 2023 Earnings Call Transcript

Barry Litwin: I would tell you that we’ve talked about Indoff is kind of a unique model and that it’s a project based business with more engineering support around it. So the business for them, I would tell you from a demand perspective, they feel very positive in terms of where they are with the business at this point. We are certainly pleased with the performance of the business. We’ve certainly been in since May, since we consummated the transaction and certainly learning and growing with the business. So I think that right now, the demand market for them, they see pockets and strength. And I don’t see necessarily a significant change in the demand profile for them going forward.

Anthony Lebiedzinski: Got you. Okay. That’s good to hear. And then last question here for me. So certainly a nice job on your balance sheet with your inventory debt reduction. So do you think there’s more room to go as far as inventory decreases by the end of the year? Or do you think you’re kind of tapped out with that?

Tex Clark: I will take that one, Barry. So Anthony, I think on the inventory, as you saw in my prepared remarks, that we think that we are back to more of a normalized level of inventory. They’ve always assumed as every category of inventory turns a little bit differently, is there may be some price inflation still in some of our inventory. But generally, we think we are at a point where it’s much more stable and overall inventory change will be less of an impact to the cash flow generation of the business. There really be more seasonal variations with inventory as we’re making individual stocking strategies. But I think that the general inflation that was built into our inventory, we’ve been able to work through the majority of that and we are at a more normalized level.

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

Barry Litwin: Thanks, Anthony.

Operator: Thank you. And ladies and gentlemen, there are no further questions at this time. So this concludes the question-and-answer session and today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines, and have a wonderful day.