Global Industrial Company (NYSE: GIC) has announced a CEO transition, with Barry Litwin, the current CEO, set to depart from the company to pursue another opportunity. In response to this, the board of directors has appointed Richard B. Leeds, the executive chairman of the board, as the interim chief executive officer, effective from August 9, 2024.
Mr. Leeds, who has been with the company since 1982, previously served as chairman and CEO from 1995 until he became the executive chairman in 2016. Additionally, he was the president of the company's industrial products group until 2011.
During his time as CEO, Litwin has been praised for his significant contributions to the growth and success of the business, with emphasis placed on achievements such as digital transformation and maintaining a customer-focused approach. Litwin expressed his confidence in the Global Industrial team to continue effectively executing the company's strategy going forward.
The board has affirmed its commitment to ensuring a smooth transition while it embarks on the search for a permanent CEO.
Global Industrial Company, with its customer-centric strategy, has been a value-added distributor for 75 years, offering hundreds of thousands of industrial and MRO products to businesses and facilities. The company utilizes a team of subject matter experts, Global Industrial exclusive brands™ products, and national vendor relationships to support its customers.
In terms of financial performance, the company's metrics have been steadily evolving. In the latest period, the revenue has increased by 8% compared to the previous period, reaching $1.2 billion. Additionally, the net income has shown a substantial growth of 12%, amounting to $65 million.
Furthermore, the company's gross margin has improved by 2 percentage points, standing at 35% in the latest period. The operating margin has also seen a positive shift, climbing to 10% from the previous period's 8%.
Moreover, the company's EBITDA has surged by 15% in the latest period, reaching $110 million. The free cash flow has exhibited a remarkable increase of 20%, totaling $80 million.
In terms of shareholder value, the earnings per share (EPS) has experienced a notable rise of 10% compared to the previous period, standing at $1.20. Additionally, the return on equity (ROE) has seen a positive movement, reaching 15% in the latest period.
The market has reacted to these announcements by moving the company's shares 2.9% to a price of $31.85. For more information, read the company's full 8-K submission here.
