Good afternoon, ladies and gentlemen, and welcome to Systemax Inc.'s Second Quarter 2018 Earnings Call. At this time, I would like to turn the call over to Mike Smargiassi of The Plunkett Group.

Thank you, Rocco, and welcome to the Systemax Second Quarter 2018 Earnings Call. Today's call will include formal remarks from Larry Reinhold, President and Chief Executive Officer; and Tex Clark, Vice President and Chief Financial Officer. We will not be hosting a live Q&A session at the end of today's call. If you should have any questions on the results, please contact The Plunkett Group or Systemax. Contact details can be found in the press release issued today and at systemax.com. 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. I would like to highlight the non-GAAP metrics that are included in today's press release. The company believes that by presenting the entire North American Technology Products Group and our divested European operations, excluding France, as discontinued operations as well as excluding certain recurring and nonrecurring adjustments from comparable GAAP measures, investors have an additional, meaningful measurement of the company's performance. Further, unless otherwise specified, when discussing revenue changes, management will be referring to constant currency average daily sales results. This call will include a 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 website and will be filed with the SEC in the Form 8-K. This call is the property of and is copyrighted by Systemax Inc. I will now turn the call over to Mr. Larry Reinhold.

Thanks, Mike. Good afternoon, everyone, and thank you for joining us today. Our Industrial and France businesses both delivered another quarter of strong financial performance, with double-digit revenue increases, healthy margins and strong cash flow generation. These businesses have continued to organically grow their top and bottom line quarter after quarter, and both are well positioned for the future. I would like to recognize all of our employees for their efforts. They are truly the key to our success. On a consolidated, continuing operations basis, Systemax generated $363.1 million in revenue in the second quarter, an increase of 12.6% on a constant currency average daily sales basis, and non-GAAP operating profit of $25.9 million, an improvement of 13.6%. In June, our Board of Directors declared a special onetime cash dividend of $1 per share and today, declared our regular quarterly dividend of $0.11 per share. Including today's dividend, we will have returned more than $100 million to shareholders in 2018, which is a direct reflection of our strong financial performance and the strength of our balance sheet. Before turning to our business review, I would like to comment on our IT business in France, where we have had operations since 1991. Inmac Wstore is highly successful, having delivered in local currency, organic revenue growth at a compounded annual growth rate of 11.6% from 2012 through 2017. This revenue growth has outpaced the French IT market, and its margins are among the best in the industry. It is the success of our operations in France that made it an attractive asset to both strategic and financial buyers, and we have been evaluating strategic alternatives for the business through a managed bidding process for a period of time. In July, we received an irrevocable binding offer from Bechtle AG, Germany's largest independent…

Thank you, Larry. I will now address our segment financial performance in more detail. Both the 2017 and 2018 second quarters had the same number of selling days in the U.S. and France, while our operations in Canada had 1 additional selling day in the second quarter this year compared to the second quarter of last. Turning to our results, second quarter consolidated revenue reflect double-digit top line growth in both Industrial and France, while consolidated gross profit improved 10.5% year-over-year, with gross margin of 27.8%. Consolidated SD&A improved 120 basis points as a percentage of sales, driven by leverage gains across most key cost functions. Non-GAAP operating profit was $25.9 million, an increase of 13.6%, and margin decreased 20 basis points to 7.1% compared to the last year's second quarter, primarily driven by lower margin performance in Industrial, which we did anticipate. Starting with Industrial's financial performance. In the second quarter, revenue increased 13.8% over Q2 of last year, an improvement from the 11.5% year-over-year growth reported in the first quarter of 2018. The rate of growth accelerated in May and June, with strength across both the U.S. and Canadian operations. Canada delivered it's sixth consecutive quarter of double-digit gains, generating revenue growth of over 25%. Industrial's gross profit for the quarter increased to $80 million from $73.3 million last year. Gross margin declined 160 basis points from the year-ago quarter, reflecting primarily a shift in freight and product mix. Margin improved to 40 basis points sequentially and is in line with our previously stated expectations for our second quarter margin performance. Selling, distribution and administrative spending for the quarter was $56.8 million, a 20 basis point improvement as a percentage of sales from last year. This cost benefit was largely driven by leverage within our fixed cost structure,…