Good day, ladies and gentlemen, and welcome to the Systemax Incorporated Fourth Quarter 2014 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct the question-and-answer session and instructions will be given at that time (Operator Instructions). As a reminder, today's conference is being recorded. I would now like to turn the call over to Mike Smargiassi.

Thank you, Jamie. Welcome to the Systemax fourth quarter 2014 earnings conference call. I’m here today with Richard Leeds, Chairman and Chief Executive Officer of Systemax; and Larry Reinhold, Executive Vice President and Chief Financial Officer. 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 caption, Forward-looking Statements in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. I would like to highlight, the non-GAAP metrics that are included in today’s press release. The Company believes that by excluding certain recurring and non-recurring adjustments from comparable GAAP measures, investors have an additional meaningful measurement of the Company’s performance. As a result, this call will include the discussion of certain non-GAAP financial measures. The Company has provided a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures in today’s press release. The press release is available on the Company’s Web site and will be filed with the SEC and our Form 8-K. This call is the property of, and is copyrighted, by Systemax Inc. I will now turn the call over to Mr. Richard Leeds.

Good afternoon. And thank you for joining us today. Overall, our fourth quarter performance was similar to the trends we witnessed throughout 2014, with our B2B channels delivering top-line growth, offset by continued difficulties in our consumer business. Our results highlight the focus we’ve placed on our B2B channels during the past several years and our opportunities for growth in these businesses. Across the Company, we've taken steps to optimize our operating performance and competitive position. And today, we're announcing the strategic decision to accelerate our B2B and public sector customer focus by substantially exiting our brick-and-mortar retail stores. This decision is driven, as much by the excitement we have for our B2B operations, as well as the reflection on the realities of the consumer and retail businesses, over the past few years. Exiting retail will allow us to place additional resources behind our B2B growth initiatives and will generate an immediate improvement of our overall financial performance, excluding the onetime exit costs we'll incur. I'll provide additional details in a moment, before I start to review our B2B Industrial Products and EMEA businesses. Industrial Products group delivered another quarter of terrific performance, with revenue increasing 15% over the last year. Full year revenue increased 17% to $556 million and adjusted operating income was $43 million. Global Industrial continues to gain market share. And we're making prudent investments in the business that will further strengthen our competitive position and enhance our ability to execute on our operating plan. Our efforts and focus on bringing additional value to customers by adding customized expertise to our sales force and expanding our productive SKU count, both of which, are helping us meet the specific needs of our customers. Over the past few years, we’ve grown industrial SKU count dramatically. Some of those SKUs…

Thank you, Richard. Looking at our results on a consolidated basis. The fourth quarter 2014 total sales were $912.9 million, an increase of 4.4% compared to the fourth quarter of 2013. On a constant currency basis, and excluding the acquisition of SCC Services which we have rebranded as Misco Solutions, sales increased 3.2%. Our consolidated sales performance was led by strong growth in our Industrial Products Group and supported by solid performance from our B2B North America and EMEA technology businesses, which was partially offset by softness in consumer and retail. Looking at our revenue by channel. Fourth quarter B2B channel sales were $652.5 million, an increase of 7.0%, or 4.9% on the constant currency basis and excluding Misco Solutions. Our consumer sales were $260.4 million, a decrease of 1.6%, or a 0.7% on a constant currency basis. Turning to our reporting segments. The Industrial Products Group increased fourth quarter revenue, 15% year-over-year to $142.1 million, as we benefited from strength across both our core and new product lines. Margins declined slightly and reflect increased marketing spend year-over-year to drive traffic and a slight decline in gross product margins. As the growth rate of Industrial domestically sourced products, is greater than the growth of rate of the imported private label products. At the end of the quarter, total SKUs offered on globalindustrial.com Web site totaled almost 1.4 million, an increase of 30% from a year-ago. Sales for our Technology Product segment, which includes our European and North America operations, increased 2.7% to $769.3 million, as reported, and increased 1.3% on a constant currency basis and excluding Misco Solutions. The non-GAAP operating loss was $7.3 million and primarily reflects the soft performance in certain EMEA countries and our North American consumer operations. Looking at our Technology Group segment, on a geographic…

(Operator Instructions) The first question comes from Anthony Lebiedzinski from Sidoti & Company.

I have few questions here or so first just wanted just to clarify, as far as the exit of the retail store operation. So looks like, from what I glance at your 8-K, it looks like you’re keeping the online piece of TigerDirect just wanted to clarify that first right.

Yes, that is correct, Anthony.

And is that going to be a drag on your bottom line performance as far as you keeping the online piece of TigerDirect?

Anthony, we expect that the restructuring actions will improve the financial operations of our NA Tech business significantly and that’s again after the onetime costs, we expect that this will -- the losses will be eliminated.

And can you just tell us the stores that you are closing, how much revenue do they do in 2014?

About $400 million.

Okay 400 million, so if I look -- okay got it, so roughly -- okay all right -- that’s helpful. And also when I look at the press release commentary, so on a GAAP basis -- I am sorry non-GAAP basis, the Tech segment had an operating loss $25.6 million for 2014. So if I were to exclude the drag from the retail operations of $20 million, if you take the midpoint of $18 million to $22 million, then, is it fair to say that the rest of the Tech B2B business had a negative $5.6 million impact in 2014? Just want to see if that’s the right way to think about the business kind of on a go forward basis?

I am sorry there is, again as we said, there will be savings from the retail store exit with savings from the distribution center exit and there will be savings from the back office restructuring as well. So, it’s a bigger pot than just where you’re looking at there.

But I just wanted to get a better understanding of the profitability of the Tech B2B segment, because the way you report now is you do provide revenue numbers for the Tech businesses, both Europe and North America. But when I look at the operating income results, you have technology all lumped into one. So I just wanted to get a better understanding of the profitability of the business now on a go forward basis?

Again, there is a combination of cost structure reductions that we’ve outlined in there. We expect that the business performance will be enhanced by more than the cost structure reductions. We talked about the ability to focus our investments on B2B growth and the number of other actions. So again, we expect that the business -- the losses in the North America Tech will be curtailed and it will be a significant improvement to our bottom line of our Tech operations, and the consolidated operations.

Just switching gears to the industrial segment. So the margin was down for the quarter and for the year. And I think from, what I heard from Richard that it sounds like going forward there will be little bit more -- so I guess focus or discipline as far as which products to allocate to that segment?

No, I mean there is -- what I was talking about was the SKU count and the expectation of the SKU count growth going forward. So, we’re looking at the productivity of all those SKUs that we’ve added over the last few years where we grew the SKU count by 1 million SKUs or whatever. And we’re probably -- we are going to be calling a bunch of them out of the non-productive SKUs because they’re; one is, they request to maintain them; and two is, they clutter up the site; and three is, they might be from some vendors that are not willing to give us a better prices or terms. And so those vendors, we might have to see some business with if they don’t give us better pricing in turn. So, there was going to be some calling of SKUs and that’s what I was referring to. The overall SKU count might not increase as high as it has in the past or as high as we talked about in the past as well, there will up might be less as we’ve talked about in the past.

And in addition Anthony the industrial businesses as Richard said it's integrating the C&H acquisition, so it’s a significant change to the business and a significant project to integrate it. The results reflect industry headcount to support sales operations that reflect increased spending in marketing. And again there is a mix shift, as we alluded to, related to importing the highest margin imported products versus the growth of other domestically sourced product that has come from all the SKU counts, the increased SKU count. So, there is a lot of things going on in it but the business is performing very well and we expect to continue and accelerate with the integration of C&H.

I mean I would consider these high-class problems, not real problems. These are just operational decisions that we’re making as we go along.

And also just couple of quick housekeeping items here. Do you have the -- Larry the cash from operations for 2014 and your CapEx and any sort of thoughts on 2015?

I’ve got papers all over my desk here. Cash from op -- for the full year, operating cash was flat and in the quarter it was $37.3 million of cash provided from operations.

(Operator Instructions) And it showed no further questions. I would now like to turn the call back over to Richard Leeds.

Thank you for listening to our call. And we look forward to speaking to you next quarter. Bye.