[January 29, 2015] |
|
PC Connection, Inc. Reports Fourth Quarter and Record Full Year 2014 Results
PC Connection, Inc. (NASDAQ: PCCC):
FOURTH QUARTER SUMMARY:
|
|
|
|
|
FULL YEAR SUMMARY:
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Net sales: $630.8 million, up 9.0% y/y
|
|
|
|
|
-
Net sales: $2.46 billion, up 10.9% y/y
|
-
Diluted EPS: $0.45, up 22% y/y
|
|
|
|
|
-
Diluted EPS: $1.61, up 19% y/y
|
|
|
|
|
|
|
PC Connection, Inc. (NASDAQ: PCCC), a national provider of a full
range of information technology (IT) solutions to business, government,
healthcare, and education markets, today announced results for the
quarter ended December 31, 2014. Net sales for the fourth quarter of
2014 increased by 9.0% to $630.8 million, compared to $578.6 million for
the prior year quarter. Net income for the quarter ended December 31,
2014 increased by 21.4% to $11.9 million, or $0.45 per diluted share,
compared to net income of $9.8 million, or $0.37 per diluted share for
the prior year quarter.
Net sales for the year ended December 31, 2014 were $2.46 billion, an
increase of $241.7 million or 10.9%, compared to $2.22 billion for the
year ended December 31, 2013. Net income for the year ended December 31,
2014 increased by 19.6% to $42.7 million, or $1.61 per diluted share,
compared to net income of $35.7 million, or $1.35 per diluted share, for
the year ended December 31, 2013. Earnings before interest, taxes,
depreciation and amortization, adjusted for stock-based compensation
expense ("Adjusted EBITDA") totaled $80.5 million for the year ended
December 31, 2014, compared to $67.4 million for the year ended December
31, 2013. Net sales, net income, and diluted per share amounts for the
year ended December 31, 2014 represent full year records for the Company.
Quarterly Sales by Segment:
-
Net sales for the SMB segment increased by 9.2% to $261.7 million in
the fourth quarter of 2014, compared to the prior year quarter. Sales
of notebooks, the largest SMB category, increased by 23.4% compared to
the prior year quarter.
-
Net sales for the Large Account segment increased by 3.5% to $225.6
million in the fourth quarter of 2014, compared to the prior year
quarter. Storage and software sales were strong in this segment with
an increase of 31.9% and 21.9%, respectively. Commercial sales, which
consists of SMB and Large Account sales, increased by 6.5% from the
prior year quarter.
-
Net sales to the Public Sector segment increased by 18.7% to $143.5
million in the fourth quarter of 2014, compared to the prior year
quarter. Sales to state and local government and educational
institutions increased by 18.4%, compared to the prior year quarter,
while sales to the federal government increased by 19.1%. Net/Com
product sales for the Public Sector were strong with 55% growth from
the prior year quarter.
Quarterly Sales by Product Mix:
-
Notebook/tablet sales, the Company's largest product category,
increased by 15% year over year and accounted for 20% of net sales in
the fourth quarter of 2014 compared to 19% of net sales in the prior
year quarter. Continued corporate refresh activity and increased
demand for Chromebooks resulted in strong year-over-year growth in
this category in both SMB and Public Sector segments.
-
Software sales increased by 13% year over year and accounted for 18%
of net sales in the fourth quarter of 2014 compared to 17% of net
sales in the prior year quarter. We experienced strong growth in
security, office productivity, and operating system software,
including cloud-based offerings.
-
Net/Com product sales increased by 19% year over year and accounted
for 10% of net sales in the fourth quarter of 2014 and 2013. We
experienced significant sales growth in Public Sector segment in this
product category.
-
Storage sales increased by 11% year over year and accounted for 7% of
net sales in the fourth quarter of 2014 and 2013. We experienced
significant sales growth in our Large Account segment in this product
category.
Overall gross profit dollars increased by $7.4 million, or 9.8%, in the
fourth quarter of 2014, compared to the prior year quarter. Consolidated
gross margin, as a percentage of net sales, slightly increased to 13.2%
in the fourth quarter of 2014, compared to 13.1% in the prior year
quarter as a result of increased demand in advanced technologies that
generate relatively higher margins.
Total selling, general and administrative dollars increased in the
fourth quarter of 2014 to $63.0 million from $59.3 million in the prior
year quarter, but decreased as a percentage of net sales from 10.3% to
10.0% due to leveraging our fixed costs over higher net sales. Variable
SG&A increased year over year due to the higher levels of sales and
gross profit achieved in 2014. We continue to invest in technical
solution sales capabilities and expect SG&A expenses to rise
accordingly. However, we are highly focused on improving efficiencies
and streamlining wherever possible.
The Company generated significant cash flow during the year ended
December 31, 2014. Total cash was $60.9 million at December 31, 2014,
compared to $42.5 million at December 31, 2013. Our December 31, 2014
cash balance is lower than our September 30, 2014 balance due to the
$10.5 million special dividend we paid in the fourth quarter of 2014 and
seasonal working capital fluctuations. Days sales outstanding were 40
days at December 31, 2014, and inventory turns were 26 turns in the
fourth quarter of 2014.
"We are encouraged with PC Connection's strong performance this quarter
and for the year ended December 31, 2014. We had solid execution across
all three of our sales segments, reinforcing the strength and diversity
of our business model," said Timothy McGrath, President and Chief
Executive Officer. "As a National Solutions Provider, our goal is to
consistently invest in more complex solutions capabilities while
delivering solid financial performance; we were able to accomplish that
goal in 2014 with an 11% sales increase and a 20% increase in net
income. In a rapidly changing industry, we believe our team and the
strategies we have in place well position PC Connection to gain market
share and increase long-term shareholder value."
Non-GAAP Financial Information
Adjusted EBITDA is a non-GAAP financial measure. This information is
included to provide information with respect to the Company's operating
performance and earnings.
About PC Connection, Inc.
PC Connection, Inc., a Fortune 1000 company, has three wholly owned
sales subsidiaries: PC Connection Sales Corporation, MoreDirect, Inc.,
and GovConnection, Inc., headquartered in Merrimack, NH; Boca Raton, FL;
and Rockville, MD; respectively. All three companies can deliver
custom-configured computer systems overnight from our ISO 9001:2008
certified technical configuration lab at our distribution center in
Wilmington, OH. Investors and media can find more information about
PC Connection, Inc. at http://ir.pcconnection.com.
PC Connection Sales Corporation (800-800-5555), the original business of
PC Connection, Inc. serving primarily the small- and medium-sized
business sector, is a rapid-response provider of IT products and
services. It offers more than 300,000 brand-name products through its
staff of technically trained sales account managers, catalogs,
publications, and its website at www.pcconnection.com.
This company also serves consumer and small office users and is, under
its MacConnection brand (800-800-2222), one of Apple's largest
authorized online resellers at www.macconnection.com.
MoreDirect, Inc. (561-237-3300), www.moredirect.com,
provides corporate technology buyers with best-in-class IT solutions,
in-depth IT supply-chain expertise, and access to over 300,000 products
and 1,600 vendors through TRAXX™, our proprietary cloud-based
eProcurement system. Backed by over 500 technical certifications,
MoreDirect's team of engineers, software licensing specialists, and
project managers help reduce the cost and complexity of buying hardware,
software, and services throughout the entire IT lifecycle.
GovConnection, Inc. (800-800-0019) is a rapid-response provider of IT
products and services to federal, state, and local government agencies
and educational institutions through specialized account managers,
catalogs, publications, and online at www.govconnection.com.
pccc-g
# # #
"Safe Harbor" Statement Under the Private Securities Litigation Reform
Act of 1995: This release contains forward-looking statements that are
subject to risks and uncertainties, including, but not limited to, the
impact of changes in market demand and the overall level of economic
activity and environment, or in the level of business investment in
information technology products, competitive products and pricing,
product availability and market acceptance, new products, fluctuations
in operating results, and the ability of the Company to manage costs in
response to fluctuations in revenue, and other risks that could cause
actual results to differ materially from expectations, including those
detailed under the caption "Risk Factors" in the Company's Annual Report
on Form 10-K filed with the Securities and Exchange Commission for the
year ended December 31, 2013. More specifically, the statements in this
release concerning the Company's outlook for selling, general, and
administrative expenses, the Company's efforts in improving efficiencies
and streamlining its business and other statements of a non-historical
basis (including statements regarding the Company's ability to increase
market share and enhance long-term shareholder value) are
forward-looking statements that involve certain risks and uncertainties.
Such risks and uncertainties include the ability to realize market
demand for and competitive pricing pressures on the products and
services marketed by the Company, the continued acceptance of the
Company's distribution channel by vendors and customers, continuation of
key vendor and customer relationships and support programs, the ability
of the Company to gain or maintain market share, and the ability of the
Company to hire and retain qualified sales representatives and other
essential personnel. The Company disclaims any obligation to update the
information in this press release or revise any forward-looking
statements, whether as a result of any new information, future events,
or otherwise.
|
|
|
CONSOLIDATED SELECTED FINANCIAL INFORMATION
|
At or for the Three Months Ended December 31,
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
% of
|
|
|
|
%
|
(Amounts and shares in thousands, except operating data, P/E
ratio, and per share data)
|
|
|
|
|
|
|
Net Sales
|
|
|
|
|
|
|
Net Sales
|
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
630,765
|
|
|
|
|
|
|
|
$
|
578,572
|
|
|
|
|
|
|
|
9
|
%
|
Diluted earnings per share
|
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
$
|
0.37
|
|
|
|
|
|
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
13.1
|
%
|
|
|
|
|
|
|
|
Operating margin
|
|
|
|
|
3.2
|
%
|
|
|
|
|
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
Return on equity (1)
|
|
|
|
|
12.5
|
%
|
|
|
|
|
|
|
|
11.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory turns
|
|
|
|
|
26
|
|
|
|
|
|
|
|
|
24
|
|
|
|
|
|
|
|
|
Days sales outstanding
|
|
|
|
|
40
|
|
|
|
|
|
|
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notebook/Tablet
|
|
|
|
$
|
123,485
|
|
|
|
20
|
%
|
|
|
|
$
|
107,051
|
|
|
|
19
|
%
|
|
|
|
15
|
%
|
Software
|
|
|
|
|
113,129
|
|
|
|
18
|
|
|
|
|
|
100,543
|
|
|
|
17
|
|
|
|
|
13
|
%
|
Desktop/Server
|
|
|
|
|
91,815
|
|
|
|
14
|
|
|
|
|
|
90,551
|
|
|
|
16
|
|
|
|
|
1
|
%
|
Net/Com Product
|
|
|
|
|
66,571
|
|
|
|
10
|
|
|
|
|
|
56,034
|
|
|
|
10
|
|
|
|
|
19
|
%
|
Video, Imaging & Sound
|
|
|
|
|
54,539
|
|
|
|
9
|
|
|
|
|
|
51,582
|
|
|
|
9
|
|
|
|
|
6
|
%
|
Storage
|
|
|
|
|
42,850
|
|
|
|
7
|
|
|
|
|
|
38,730
|
|
|
|
7
|
|
|
|
|
11
|
%
|
Printer & Printer Supplies
|
|
|
|
|
35,344
|
|
|
|
6
|
|
|
|
|
|
35,339
|
|
|
|
6
|
|
|
|
|
-
|
|
Memory & System Enhancement
|
|
|
|
|
19,240
|
|
|
|
3
|
|
|
|
|
|
20,613
|
|
|
|
3
|
|
|
|
|
(7
|
%)
|
Accessory/Services/Other
|
|
|
|
|
83,792
|
|
|
|
13
|
|
|
|
|
|
78,129
|
|
|
|
13
|
|
|
|
|
7
|
%
|
Total Net Sales
|
|
|
|
$
|
630,765
|
|
|
|
100
|
%
|
|
|
|
$
|
578,572
|
|
|
|
100
|
%
|
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Performance Indicators:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual shares outstanding
|
|
|
|
|
26,343
|
|
|
|
|
|
|
|
|
26,200
|
|
|
|
|
|
|
|
|
Total book value per share
|
|
|
|
$
|
13.44
|
|
|
|
|
|
|
|
$
|
12.21
|
|
|
|
|
|
|
|
|
Tangible book value per share
|
|
|
|
$
|
11.42
|
|
|
|
|
|
|
|
$
|
10.14
|
|
|
|
|
|
|
|
|
Closing price
|
|
|
|
$
|
24.55
|
|
|
|
|
|
|
|
$
|
24.85
|
|
|
|
|
|
|
|
|
Market capitalization
|
|
|
|
$
|
646,721
|
|
|
|
|
|
|
|
$
|
651,070
|
|
|
|
|
|
|
|
|
Trailing price/earnings ratio
|
|
|
|
|
15.3
|
|
|
|
|
|
|
|
|
18.4
|
|
|
|
|
|
|
|
|
LTM Adjusted EBITDA (2)
|
|
|
|
$
|
80,475
|
|
|
|
|
|
|
|
$
|
67,443
|
|
|
|
|
|
|
|
|
Adjusted market capitalization/LTM Adjusted EBITDA (3)
|
|
|
|
|
7.3
|
|
|
|
|
|
|
|
|
9.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Based on last twelve months' net income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Adjusted EBITDA is defined as EBITDA (earnings before interest,
taxes, depreciation and amortization) adjusted for stock-based
compensation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Adjusted market capitalization is defined as gross market
capitalization less cash balance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE AND MARGIN INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended December 31,
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
Net
|
|
|
Gross
|
|
|
|
Net
|
|
|
Gross
|
|
|
|
|
(amounts in thousands)
|
|
|
|
Sales
|
|
|
Margin
|
|
|
|
Sales
|
|
|
Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SMB
|
|
|
|
$
|
261,661
|
|
|
|
15.2
|
%
|
|
|
|
$
|
239,628
|
|
|
|
15.3
|
%
|
|
|
|
|
Large Account
|
|
|
|
|
225,609
|
|
|
|
11.6
|
|
|
|
|
|
218,015
|
|
|
|
11.4
|
|
|
|
|
|
Public Sector
|
|
|
|
|
143,495
|
|
|
|
11.9
|
|
|
|
|
|
120,929
|
|
|
|
11.7
|
|
|
|
|
|
Total
|
|
|
|
$
|
630,765
|
|
|
|
13.2
|
%
|
|
|
|
$
|
578,572
|
|
|
|
13.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
Three Months Ended December 31,
|
|
|
|
2014
|
|
|
|
|
2013
|
|
(amounts in thousands, except per share data)
|
|
|
|
Amount
|
|
|
% of Net Sales
|
|
|
|
Amount
|
|
|
% of Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
630,765
|
|
|
|
100.0
|
%
|
|
|
|
$
|
578,572
|
|
|
|
100.0
|
%
|
Cost of sales
|
|
|
|
|
547,641
|
|
|
|
86.8
|
|
|
|
|
|
502,879
|
|
|
|
86.9
|
|
Gross profit
|
|
|
|
|
83,124
|
|
|
|
13.2
|
|
|
|
|
|
75,693
|
|
|
|
13.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
63,035
|
|
|
|
10.0
|
|
|
|
|
|
59,315
|
|
|
|
10.3
|
|
Income from operations
|
|
|
|
|
20,089
|
|
|
|
3.2
|
|
|
|
|
|
16,378
|
|
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest/other expense, net
|
|
|
|
|
(14
|
)
|
|
|
-
|
|
|
|
|
|
(14
|
)
|
|
|
-
|
|
Income tax provision
|
|
|
|
|
(8,131
|
)
|
|
|
(1.3
|
)
|
|
|
|
|
(6,523
|
)
|
|
|
(1.1
|
)
|
Net income
|
|
|
|
$
|
11,944
|
|
|
|
1.9
|
%
|
|
|
|
$
|
9,841
|
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
$
|
0.38
|
|
|
|
|
Diluted
|
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
$
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the computation of earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
26,311
|
|
|
|
|
|
|
|
|
26,181
|
|
|
|
|
Diluted
|
|
|
|
|
26,554
|
|
|
|
|
|
|
|
|
26,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
Years Ended December 31,
|
|
|
|
2014
|
|
|
|
2013
|
(amounts in thousands, except per share data)
|
|
|
|
Amount
|
|
|
% of Net Sales
|
|
|
|
Amount
|
|
|
% of Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
2,463,339
|
|
|
|
100.0
|
%
|
|
|
|
$
|
2,221,638
|
|
|
|
100.0
|
%
|
Cost of sales
|
|
|
|
|
2,139,950
|
|
|
|
86.9
|
|
|
|
|
|
1,928,638
|
|
|
|
86.8
|
|
Gross profit
|
|
|
|
|
323,389
|
|
|
|
13.1
|
|
|
|
|
|
293,000
|
|
|
|
13.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
251,935
|
|
|
|
10.2
|
|
|
|
|
|
233,604
|
|
|
|
10.5
|
|
Income from operations
|
|
|
|
|
71,454
|
|
|
|
2.9
|
|
|
|
|
|
59,396
|
|
|
|
2.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest/other expense, net
|
|
|
|
|
(86
|
)
|
|
|
-
|
|
|
|
|
|
(149
|
)
|
|
|
-
|
|
Income tax provision
|
|
|
|
|
(28,687
|
)
|
|
|
(1.2
|
)
|
|
|
|
|
(23,565
|
)
|
|
|
(1.1
|
)
|
Net income
|
|
|
|
$
|
42,681
|
|
|
|
1.7
|
%
|
|
|
|
$
|
35,682
|
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
1.63
|
|
|
|
|
|
|
|
$
|
1.37
|
|
|
|
|
Diluted
|
|
|
|
$
|
1.61
|
|
|
|
|
|
|
|
$
|
1.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the computation of earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
26,246
|
|
|
|
|
|
|
|
|
26,120
|
|
|
|
|
Diluted
|
|
|
|
|
26,512
|
|
|
|
|
|
|
|
|
26,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA AND ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of EBITDA and Adjusted EBITDA is detailed below.
Adjusted EBITDA is defined as EBITDA (earnings before interest,
taxes, depreciation and amortization) adjusted for stock-based
compensation. Both EBITDA and Adjusted EBITDA are considered
non-GAAP financial measures. Generally, a non-GAAP financial measure
is a numerical measure of a company's performance, financial
position, or cash flows that either includes or excludes amounts
that are not normally included or excluded in the most directly
comparable measure calculated and presented in accordance with GAAP.
We believe that EBITDA and Adjusted EBITDA provide helpful
information with respect to our operating performance including our
ability to fund our future capital expenditures and working capital
requirements. Adjusted EBITDA also provides helpful information as
it is the primary measure used in certain financial covenants
contained in our credit agreements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in thousands)
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Years Ended December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
% Change
|
|
|
|
2014
|
|
|
2013
|
|
|
% Change
|
Net income
|
|
|
|
$
|
11,944
|
|
|
$
|
9,841
|
|
|
|
|
|
|
$
|
42,681
|
|
|
$
|
35,682
|
|
|
|
Depreciation and amortization
|
|
|
|
|
2,095
|
|
|
|
2,078
|
|
|
|
|
|
|
|
8,092
|
|
|
|
7,089
|
|
|
|
Income tax expense
|
|
|
|
|
8,131
|
|
|
|
6,523
|
|
|
|
|
|
|
|
28,687
|
|
|
|
23,565
|
|
|
|
Interest/other expense, net
|
|
|
|
|
14
|
|
|
|
14
|
|
|
|
|
|
|
|
86
|
|
|
|
149
|
|
|
|
EBITDA
|
|
|
|
|
22,184
|
|
|
|
18,456
|
|
|
|
|
|
|
|
79,546
|
|
|
|
66,485
|
|
|
|
Stock-based compensation
|
|
|
|
|
228
|
|
|
|
205
|
|
|
|
|
|
|
|
929
|
|
|
|
958
|
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
22,412
|
|
|
$
|
18,661
|
|
|
20
|
%
|
|
|
|
$
|
80,475
|
|
|
$
|
67,443
|
|
|
19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
2014
|
|
|
2013
|
(amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
60,909
|
|
|
|
$
|
42,547
|
|
Accounts receivable, net
|
|
|
|
|
293,027
|
|
|
|
|
283,051
|
|
Inventories
|
|
|
|
|
90,917
|
|
|
|
|
79,141
|
|
Deferred income taxes
|
|
|
|
|
7,749
|
|
|
|
|
6,382
|
|
Prepaid expenses and other current assets
|
|
|
|
|
5,332
|
|
|
|
|
5,117
|
|
Income taxes receivable
|
|
|
|
|
212
|
|
|
|
|
2,256
|
|
Total current assets
|
|
|
|
|
458,146
|
|
|
|
|
418,494
|
|
Property and equipment, net
|
|
|
|
|
27,861
|
|
|
|
|
27,600
|
|
Goodwill
|
|
|
|
|
51,276
|
|
|
|
|
51,276
|
|
Other intangibles, net
|
|
|
|
|
1,953
|
|
|
|
|
2,854
|
|
Other assets
|
|
|
|
|
724
|
|
|
|
|
720
|
|
Total Assets
|
|
|
|
$
|
539,960
|
|
|
|
$
|
500,944
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
124,893
|
|
|
|
$
|
124,821
|
|
Accrued expenses and other liabilities
|
|
|
|
|
22,011
|
|
|
|
|
22,362
|
|
Accrued payroll
|
|
|
|
|
17,793
|
|
|
|
|
14,935
|
|
Total current liabilities
|
|
|
|
|
164,697
|
|
|
|
|
162,118
|
|
Deferred income taxes
|
|
|
|
|
18,803
|
|
|
|
|
16,224
|
|
Other liabilities
|
|
|
|
|
2,452
|
|
|
|
|
2,773
|
|
Total Liabilities
|
|
|
|
|
185,952
|
|
|
|
|
181,115
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
282
|
|
|
|
|
281
|
|
Additional paid-in capital
|
|
|
|
|
106,956
|
|
|
|
|
104,932
|
|
Retained earnings
|
|
|
|
|
262,632
|
|
|
|
|
230,478
|
|
Treasury stock at cost
|
|
|
|
|
(15,862
|
)
|
|
|
|
(15,862
|
)
|
Total Stockholders' Equity
|
|
|
|
|
354,008
|
|
|
|
|
319,829
|
|
Total Liabilities and Stockholders' Equity
|
|
|
|
$
|
539,960
|
|
|
|
$
|
500,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Years Ended December 31,
|
|
|
|
2014
|
|
|
|
2013
|
(amounts in thousands)
|
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
42,681
|
|
|
|
|
$
|
35,682
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
8,092
|
|
|
|
|
|
7,089
|
|
Provision for doubtful accounts
|
|
|
|
|
1,383
|
|
|
|
|
|
1,078
|
|
Deferred income taxes
|
|
|
|
|
1,212
|
|
|
|
|
|
4,578
|
|
Stock-based compensation expense
|
|
|
|
|
929
|
|
|
|
|
|
958
|
|
Loss on disposal of fixed assets
|
|
|
|
|
14
|
|
|
|
|
|
5
|
|
Excess tax benefit from exercise of equity awards
|
|
|
|
|
(556
|
)
|
|
|
|
|
(260
|
)
|
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(11,359
|
)
|
|
|
|
|
(16,819
|
)
|
Inventories
|
|
|
|
|
(11,776
|
)
|
|
|
|
|
(9,504
|
)
|
Prepaid expenses and other current assets
|
|
|
|
|
1,829
|
|
|
|
|
|
(3,005
|
)
|
Other non-current assets
|
|
|
|
|
(4
|
)
|
|
|
|
|
(6
|
)
|
Accounts payable
|
|
|
|
|
202
|
|
|
|
|
|
(1,371
|
)
|
Accrued expenses and other liabilities
|
|
|
|
|
2,751
|
|
|
|
|
|
1,231
|
|
Net cash provided by operating activities
|
|
|
|
|
35,398
|
|
|
|
|
|
19,656
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
Purchases of equipment
|
|
|
|
|
(7,609
|
)
|
|
|
|
|
(7,607
|
)
|
Proceeds from sale of equipment
|
|
|
|
|
13
|
|
|
|
|
|
2
|
|
Net cash used for investing activities
|
|
|
|
|
(7,596
|
)
|
|
|
|
|
(7,605
|
)
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
Dividend payment
|
|
|
|
|
(10,527
|
)
|
|
|
|
|
(10,475
|
)
|
Issuance of stock under Employee Stock Purchase Plan
|
|
|
|
|
753
|
|
|
|
|
|
591
|
|
Excess tax benefit from exercise of equity awards
|
|
|
|
|
556
|
|
|
|
|
|
260
|
|
Exercise of stock options
|
|
|
|
|
356
|
|
|
|
|
|
1,779
|
|
Payment of payroll taxes on stock-based compensation through shares
withheld
|
|
|
|
|
(578
|
)
|
|
|
|
|
(577
|
)
|
Repayment of capital lease obligation to affiliate
|
|
|
|
|
-
|
|
|
|
|
|
(989
|
)
|
Net cash used for financing activities
|
|
|
|
|
(9,440
|
)
|
|
|
|
|
(9,411
|
)
|
Increase in cash and cash equivalents
|
|
|
|
|
18,362
|
|
|
|
|
|
2,640
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
42,547
|
|
|
|
|
|
39,907
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
60,909
|
|
|
|
|
$
|
42,547
|
|
|
|
|
|
|
|
|
|
|
Non-cash Investing Activities:
|
|
|
|
|
|
|
|
|
Accrued capital expenditures
|
|
|
|
$
|
205
|
|
|
|
|
$
|
335
|
|
Issuance of nonvested stock from treasury
|
|
|
|
|
-
|
|
|
|
|
$
|
403
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
|
|
|
Income taxes paid
|
|
|
|
$
|
24,219
|
|
|
|
|
$
|
20,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
pccc-g
[ Back To TMCnet.com's Homepage ]
|