Finance & Accounting Update

Julie Frank Executive Vice President & CFO

So what have we been doing in Finance and Accounting since the Global acquisition? Let’s see, where do I begin? I’ll start with the ownership and name change. Since we do business in almost every state, we are updating filings with 40+ Secretaries of State, sales tax agencies, and hundreds of cities. We also hold a GSA contract that must go through a novation process. Ashley is leading the effort to get all these updated, a process that will continue for several more months. We will also be rolling out a name change on our forms to remove the “Inc” from our name and to reflect that we are a Global Industrial company.

Next up is the financial reporting. Reporting requirements are pretty simple when you are a privately held company; the users of our financial statements were the owners, our bank and an occasional vendor or customer. As a subsidiary of a publicly held company??? Now we must follow SEC rules and guidelines as our numbers roll up into those of the publicly traded Global Industrial – blessedly, Global’s CFO and Corporate Controller are working with us so we don’t run screaming from the building.

As Langston has shared, we are moving towards having our accounting periods match Global’s. We have operated on a calendar month; Global (like many public companies) operates on 13-week quarters with two four-week “months” and one fiveweek “month” per quarter. We have begun moving towards their cycle with our June closing, and when we make the final shift, we’ll do it in a fiveweek period to maximize our billing capture (and corresponding commissions).

All of the above is just administrative work that has to be done through this integration; none of this will affect Partners or our basic business. We share the excitement over the many opportunities that this combination presents to our Partners and customers; the future looks bright.

I will keep you all updated as changes roll out that may impact you. As always, if you have any questions I can answer, please feel free to contact me by phone or email.

Now I think I’ll take a much needed vacation!

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