Global Industrial Company

Good afternoon, ladies and gentlemen, and welcome to the Global Industrials First Quarter 2022 Earnings Call. At this time, I'd like to turn the call over to Mike Smagiasi of the Pundit Group. Please go ahead.

Thank you, and welcome to the Global Industrial First Quarter 2022 Earnings Call. Leading today's call will be Barry Litwin, Chief Executive Officer, and Tex Clark, Senior Vice President and Chief Financial Officer. Formal remarks will be followed by a question and answer session. Today's discussion may include certain forward-looking statements. It should be understood that actual results could differ materially from those projected due to a number of factors, including those described under the forward-looking statements caption and under risk factors in the company's annual report on Form 10-K and quarterly reports on Form 10-Q. The press release is available on the company's website and it's been filed with the SEC on a Form 8K. This call is the property of Global Industrial Company. I will now turn the call over to Barry Litwin.

Thanks, Mike. Good afternoon, everyone, and thank you for joining us. We delivered an exceptional first quarter performance with record revenue and profitability, driven by strong demand and excellent execution across the business. Revenue of $288 million was a quarterly record, and improved nearly 15% over the prior year. For the third consecutive quarter, we delivered record gross margin, which reached 37.4% in the quarter. And we generated over $29 million in operating income, as operating margin surpassed 10%. Looking at our results on a 12-month basis, we achieved double-digit operating margin for the first time. I'm very pleased with how we have started 2022. It was truly a terrific quarter for Global Industrial and reflects the continued implementation of the ACE strategy, and most importantly, the commitment and efforts of our associates who made it happen. A focus on the customer continues to guide everything we do. We are making further investments that will position us to expand market share and capitalize on our growth opportunities. From sales and marketing to digital technology, procurement and distribution, we are enhancing the service we provide and elevating the customer experience. In the second quarter, we expect to launch a new digital e-commerce platform on both desktop and mobile that will redefine how we engage and interact with customers across all digital channels. We remain committed to digital leadership, and this is a ground-up undertaking designed to provide a completely new user interface and customer experience. Our expanded one-to-one managed sales organization continues to lead our growth. The team is making continued progress in the development of larger accounts as we look to grow share of wallet and build new customer relationships. Our NASCAR sponsorship in partnership with Richard Childress Racing and Austin Hill is helping to drive brand awareness and increase customer and associate engagement. It has been exciting to be a part of the 2022 NASCAR season and to capitalize on the benefits this national platform brings to global industrial. In Canada, we have seen tremendous growth, which has caused us to exceed the capacity of the current distribution network. In order to support our continued expansion, I'm pleased to announce we have entered into a long-term lease for a new state-of-the-art distribution center in the greater Toronto area. Operations in Canada have historically been serviced through a cross-stock fulfillment model relying on our U.S. distribution network. And this new facility, which is expected to begin operating this fall, will allow us to better service customers by significantly shortening delivery times. Finally, we will be hosting our annual Global Industrial National Trade Show on June 17 in New Orleans. This is an exciting event with more than a hundred vendors that will showcase our industrial solutions, know-how, and leadership team. In closing, we had a terrific start to the year with record revenue and profitability. Customer demand remains strong and we believe we are well positioned for long-term growth. We continue to focus on operational excellence, embracing digital transformation, and investing in our people, private brand, and operations. Execution of our ACE strategy is strengthening our customer-focused culture, driving top-line growth, and delivering sustainable improvements in profitability. We continue to elevate our position as a trusted partner to our customers, and remain excited about what the rest of 2022 has in store. I'll now turn the call over to Tex.