[July 31, 2014] |
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PC Connection, Inc. Reports Record Second Quarter 2014 Results
MERRIMACK, N.H. --(Business Wire)--
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 June 30, 2014. Net sales for the second quarter of 2014
increased by 13.6% to $633.2 million, compared to $557.3 million for the
prior year quarter. Net income for the quarter ended June 30, 2014
increased by 24.9% to $11.4 million, or $0.43 per diluted share,
compared to net income of $9.2 million, or $0.35 per diluted share for
the prior year quarter. Sales, net income, and earnings per share
amounts represent quarterly records for the Company.
Net sales for the six months ended June 30, 2014 were $1,193.0 million,
an increase of $130.3 million or 12.3%, compared to $1,062.7 million for
the six months ended June 30, 2013. Net income for the six months ended
June 30, 2014 increased by 21.7% to $18.6 million, or $0.70 per diluted
share, compared to net income of $15.3 million, or $0.58 per diluted
share, for the six months ended June 30, 2013. Earnings before interest,
taxes, depreciation and amortization, adjusted for stock-based
compensation expense ("Adjusted EBITDA") totaled $73.6 million for the
twelve months ended June 30, 2014, compared to $64.1 million for the
twelve months ended June 30, 2013.
Quarterly Sales by Segment:
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Net sales for the SMB segment increased by 10.7% to $268.1 million in
the second quarter of 2014, compared to the prior year quarter. Sales
of software, desktop, and notebook products each grew at double-digit
rates.
-
Net sales for the Large Account segment increased by 13.3% to $222.3
million in the second quarter of 2014, compared to the prior year
quarter. Notebook and software sales were strong in this segment with
an increase of 27.7% and 33.0%, respectively. Commercial sales, which
consists of SMB and Large Account sales, increased by 11.9% from the
prior year quarter.
-
Net sales to the Public Sector segment (government and education
customers) increased by 20.2% to $142.9 million in the second quarter
of 2014, compared to the prior year quarter. Sales to state and local
government and educational institutions increased by 19.0%, compared
to the prior year quarter, while sales to the federal government
increased by 24.9%.
Quarterly Sales by Product Mix:
-
Notebook/tablet sales, the Company's largest product category,
increased by 30% year over year and accounted for 22% of net sales in
the second quarter of 2014 compared to 19% of net sales in the prior
year quarter. The expiration of Windows XP and increased demand for
Chromebooks resulted in strong year-over-year growth in this category
in all three of our sales segments.
-
Software, the Company's second largest product category, increased by
15% year over year and accounted for 16% of net sales in the second
quarter of 2014 and 2013. We experienced strong growth in security,
office productivity, and operating system software.
-
Desktop/Server sales increased by 17% year over year and accounted for
16% of net sales in the second quarter of 2014 and 2013. We
experienced significant sales growth in both our SMB and Public Sector
segments in this product category.
-
Net/com product sales increased by 10% year over year and accounted
for 9% of net sales in the second quarter of 2014 and 2013. Our SMB
and Public Sector segments achieved strong sales growth compared to
the prior year quarter due to increased demand for integration of
multiple types of mobile devices.
Overall gross profit dollars increased by $9.9 million, or 13.3%, in the
second quarter of 2014, compared to the prior year quarter. Consolidated
gross margin, as a percentage of net sales, slightly decreased to 13.2%
in the second quarter of 2014, compared to 13.3% in the prior year
quarter as a result of increased demand in notebooks and desktops which
generate relatively lower margins.
Total selling, general and administrative dollars increased in the
second quarter of 2014 to $64.6 million from $58.5 million in the prior
year quarter, but decreased as a percentage of net sales from 10.5% to
10.2% due to leveraging our fixed costs over higher net sales. As noted
in previous releases, approximately $0.5 million of this increase in
SG&A is due to depreciation expense related to the Customer Master Data
Management software project that we recently placed into service. Also,
variable SG&A increased year over year due to the higher levels of sales
and gross profit achieved in the second quarter. We continue to invest
in technical solution sales capabilities, including our Cloud Connection
team, and expect SG&A expenses to rise accordingly. However, we are
highly focused on improving efficiencies and streamlining wherever
possible.
The Company has generated significant cash flow during the six months
ended June 30, 2014. Total cash was $60.3 million at June 30, 2014,
compared to $42.5 million at December 31, 2013. Days sales outstanding
were 40 days at June 30, 2014, and inventory turns were 28 turns in the
second quarter of 2014.
"We are encouraged with PC Connection's strong performance this quarter.
We had solid execution across all three of our sales segments,
reinforcing the strength of our business model," said Timothy McGrath,
President and Chief Executive Officer. PC Connection continued to see
increased demand for notebooks and desktops in Q2 due to the expiration
of Windows XP. In addition, their investments in technical solution
sales led to strong growth in servers, networking, and software. As a
National Solutions Provider, PC Connection's goal is to consistently
invest in more complex solutions capabilities while delivering solid
financial performance; they were able to accomplish that goal in Q2 with
a double-digit sales increase and a 25% increase in earnings. Mr.
McGrath concluded, "We believe the team and the strategies we have in
place position PC Connection well 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 companies: 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 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 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
in 2014, the Company's efforts in improving efficiencies and
streamlining its business, the Company's anticipated product growth
categories and areas of future investments it plans to make in its
business, and other statements of a non-historical basis (including
statements regarding the Company's ability to grow revenues, 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.
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CONSOLIDATED SELECTED FINANCIAL INFORMATION
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At or for the Three Months Ended June 30,
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2014
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2013
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% of
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% of
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%
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(Amounts and shares in thousands, except operating data, P/E
ratio, and per share data)
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Net Sales
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Net Sales
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Change
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Operating Data:
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Net sales
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$
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633,244
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$
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557,287
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14
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%
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Diluted earnings per share
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$
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0.43
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$
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0.35
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23
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%
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Gross margin
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13.2
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%
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13.3
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%
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Operating margin
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3.0
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%
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2.8
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%
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Return on equity (1)
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12.1
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%
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11.4
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%
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Inventory turns
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28
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30
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Days sales outstanding
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40
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39
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Product Mix:
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Notebook/Tablet
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$
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136,126
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22
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%
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$
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104,415
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19
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%
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30
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%
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Software
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104,157
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16
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90,629
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16
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15
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%
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Desktop/Server
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101,404
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16
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86,720
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16
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17
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%
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Net/Com Product
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57,908
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9
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52,540
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9
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10
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%
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Video, Imaging & Sound
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56,775
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9
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49,950
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9
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14
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%
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Storage
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39,452
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6
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36,085
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6
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9
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%
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Printer & Printer Supplies
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37,175
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6
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36,826
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7
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1
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%
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Memory & System Enhancement
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21,349
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3
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16,810
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3
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27
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%
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Accessory/Services/Other
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78,898
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13
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83,312
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15
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(5
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%)
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Total Net Sales
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$
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633,244
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100
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%
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$
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557,287
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100
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%
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14
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%
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Stock Performance Indicators:
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Actual shares outstanding
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26,224
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26,112
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Total book value per share
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$
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12.94
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$
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11.83
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Tangible book value per share
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$
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10.89
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$
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9.74
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Closing price
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$
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20.68
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$
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15.45
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Market capitalization
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$
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542,312
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$
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403,430
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Trailing price/earnings ratio
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14.1
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12.1
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LTM Adjusted EBITDA (2)
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$
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73,595
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$
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64,073
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Adjusted market capitalization/LTM Adjusted EBITDA (3)
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6.5
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5.3
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(1) Based on last twelve months' net income.
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(2) Adjusted EBITDA is defined as EBITDA (earnings before interest,
taxes, depreciation and amortization) adjusted for stock-based
compensation.
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(3) Adjusted market capitalization is defined as gross market
capitalization less cash balance.
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REVENUE AND MARGIN INFORMATION
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For the Three Months Ended June 30,
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2014
|
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2013
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Net
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Gross
|
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Net
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Gross
|
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(amounts in thousands)
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Sales
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Margin
|
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Sales
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Margin
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SMB
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$
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268,056
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15.3
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%
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$
|
242,194
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15.8
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%
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Large Account
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222,276
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12.3
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196,152
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11.2
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Public Sector
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142,912
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10.8
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118,941
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11.5
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Total
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$
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633,244
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13.2
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%
|
|
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$
|
557,287
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|
13.3
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%
|
|
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|
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
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|
|
|
|
|
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|
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Three Months Ended June 30,
|
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|
2014
|
|
|
2013
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(amounts in thousands, except per share data)
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|
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Amount
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% of Net Sales
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Amount
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% of Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
633,244
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|
|
|
100.0
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%
|
|
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$
|
557,287
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|
|
|
100.0
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%
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Cost of sales
|
|
|
|
549,478
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|
|
86.8
|
|
|
|
|
483,371
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|
|
|
86.7
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Gross profit
|
|
|
|
83,766
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|
|
|
13.2
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|
|
|
|
73,916
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|
|
13.3
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Selling, general and administrative expenses
|
|
|
|
64,564
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|
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|
10.2
|
|
|
|
|
58,533
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|
|
10.5
|
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Income from operations
|
|
|
|
19,202
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|
|
|
3.0
|
|
|
|
|
15,383
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|
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Interest/other expense, net
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|
|
|
(26
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)
|
|
|
-
|
|
|
|
|
(46
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)
|
|
|
-
|
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Income tax provision
|
|
|
|
(7,747
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)
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|
|
(1.2
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)
|
|
|
|
(6,183
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)
|
|
|
(1.2
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)
|
Net income
|
|
|
$
|
11,429
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|
|
|
1.8
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%
|
|
|
$
|
9,154
|
|
|
|
1.6
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%
|
|
|
|
|
|
|
|
|
|
|
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|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
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Basic
|
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$
|
0.44
|
|
|
|
|
|
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$
|
0.35
|
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|
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|
Diluted
|
|
|
$
|
0.43
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$
|
0.35
|
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Shares used in the computation of earnings per common share:
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Basic
|
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26,206
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|
|
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|
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|
|
26,127
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Diluted
|
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|
26,487
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|
|
|
|
|
|
26,379
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|
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|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
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|
|
Six Months Ended June 30,
|
|
|
2014
|
|
|
2013
|
(amounts in thousands, except per share data)
|
|
|
Amount
|
|
|
% of Net Sales
|
|
|
Amount
|
|
|
% of Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
1,193,004
|
|
|
|
100.0
|
%
|
|
|
$
|
1,062,710
|
|
|
|
100.0
|
%
|
Cost of sales
|
|
|
|
1,036,391
|
|
|
|
86.9
|
|
|
|
|
921,956
|
|
|
|
86.8
|
|
Gross profit
|
|
|
|
156,613
|
|
|
|
13.1
|
|
|
|
|
140,754
|
|
|
|
13.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
125,665
|
|
|
|
10.5
|
|
|
|
|
115,246
|
|
|
|
10.8
|
|
Income from operations
|
|
|
|
30,948
|
|
|
|
2.6
|
|
|
|
|
25,508
|
|
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest/other expense, net
|
|
|
|
(36
|
)
|
|
|
-
|
|
|
|
|
(96
|
)
|
|
|
-
|
|
Income tax provision
|
|
|
|
(12,352
|
)
|
|
|
(1.0
|
)
|
|
|
|
(10,160
|
)
|
|
|
(1.0
|
)
|
Net income
|
|
|
$
|
18,560
|
|
|
|
1.6
|
%
|
|
|
$
|
15,252
|
|
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.71
|
|
|
|
|
|
|
$
|
0.59
|
|
|
|
|
Diluted
|
|
|
$
|
0.70
|
|
|
|
|
|
|
$
|
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the computation of earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
26,204
|
|
|
|
|
|
|
|
26,063
|
|
|
|
|
Diluted
|
|
|
|
26,485
|
|
|
|
|
|
|
|
26,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30,
|
|
|
LTM Ended June 30, (1)
|
|
|
|
2014
|
|
|
2013
|
|
|
% Change
|
|
|
2014
|
|
|
2013
|
|
|
% Change
|
Net income
|
|
|
$
|
11,429
|
|
|
$
|
9,154
|
|
|
|
|
|
$
|
38,990
|
|
|
|
$
|
34,022
|
|
|
|
|
Depreciation and amortization
|
|
|
|
1,786
|
|
|
|
1,709
|
|
|
|
|
|
|
7,616
|
|
|
|
|
7,050
|
|
|
|
|
Income tax expense
|
|
|
|
7,747
|
|
|
|
6,183
|
|
|
|
|
|
|
25,757
|
|
|
|
|
22,250
|
|
|
|
|
Interest/other expense, net
|
|
|
|
26
|
|
|
|
46
|
|
|
|
|
|
|
89
|
|
|
|
|
174
|
|
|
|
|
EBITDA
|
|
|
|
20,988
|
|
|
|
17,092
|
|
|
|
|
|
|
72,452
|
|
|
|
|
63,496
|
|
|
|
|
Stock-based compensation
|
|
|
|
327
|
|
|
|
153
|
|
|
|
|
|
|
1,143
|
|
|
|
|
577
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
21,315
|
|
|
$
|
17,245
|
|
|
24
|
%
|
|
|
$
|
73,595
|
|
|
|
$
|
64,073
|
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) LTM: Last twelve months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
(amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
$
|
60,289
|
|
|
|
$
|
42,547
|
|
|
|
|
Accounts receivable, net
|
|
|
|
|
|
|
|
|
|
|
|
|
295,327
|
|
|
|
|
283,051
|
|
|
|
|
Inventories
|
|
|
|
|
|
|
|
|
|
|
|
|
97,187
|
|
|
|
|
79,141
|
|
|
|
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
6,382
|
|
|
|
|
6,382
|
|
|
|
|
Prepaid expenses and other current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
4,533
|
|
|
|
|
5,117
|
|
|
|
|
Income taxes receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
783
|
|
|
|
|
2,256
|
|
|
|
|
Total current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
464,501
|
|
|
|
|
418,494
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
|
|
|
|
|
|
|
|
27,679
|
|
|
|
|
27,600
|
|
|
|
|
Goodwill
|
|
|
|
|
|
|
|
|
|
|
|
|
51,276
|
|
|
|
|
51,276
|
|
|
|
|
Other intangibles, net
|
|
|
|
|
|
|
|
|
|
|
|
|
2,404
|
|
|
|
|
2,854
|
|
|
|
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
698
|
|
|
|
|
720
|
|
|
|
|
Total Assets
|
|
|
|
|
|
|
|
|
|
|
|
$
|
546,558
|
|
|
|
$
|
500,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
|
|
|
|
|
|
|
$
|
153,222
|
|
|
|
$
|
124,821
|
|
|
|
|
Accrued expenses and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
20,161
|
|
|
|
|
22,362
|
|
|
|
|
Accrued payroll
|
|
|
|
|
|
|
|
|
|
|
|
|
15,139
|
|
|
|
|
14,935
|
|
|
|
|
Total current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
188,522
|
|
|
|
|
162,118
|
|
|
|
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
16,281
|
|
|
|
|
16,224
|
|
|
|
|
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
2,504
|
|
|
|
|
2,773
|
|
|
|
|
Total Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
207,307
|
|
|
|
|
181,115
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
281
|
|
|
|
|
281
|
|
|
|
|
Additional paid-in capital
|
|
|
|
|
|
|
|
|
|
|
|
|
105,794
|
|
|
|
|
104,932
|
|
|
|
|
Retained earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
249,038
|
|
|
|
|
230,478
|
|
|
|
|
Treasury stock at cost
|
|
|
|
|
|
|
|
|
|
|
|
|
(15,862
|
)
|
|
|
|
(15,862
|
)
|
|
|
|
Total Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
339,251
|
|
|
|
|
319,829
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
$
|
546,558
|
|
|
|
$
|
500,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
2014
|
|
|
2013
|
(amounts in thousands)
|
|
|
|
|
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
18,560
|
|
|
|
$
|
15,252
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
3,863
|
|
|
|
|
3,337
|
|
Provision for doubtful accounts
|
|
|
|
365
|
|
|
|
|
564
|
|
Deferred income taxes
|
|
|
|
57
|
|
|
|
|
(110
|
)
|
Stock-based compensation expense
|
|
|
|
486
|
|
|
|
|
301
|
|
Excess tax benefit from exercise of equity awards
|
|
|
|
(34
|
)
|
|
|
|
(228
|
)
|
Loss on disposal of fixed assets
|
|
|
|
-
|
|
|
|
|
5
|
|
Income tax benefit from stock-based compensation
|
|
|
|
-
|
|
|
|
|
196
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(12,641
|
)
|
|
|
|
10,613
|
|
Inventories
|
|
|
|
(18,046
|
)
|
|
|
|
(7,498
|
)
|
Prepaid expenses and other current assets
|
|
|
|
2,057
|
|
|
|
|
(660
|
)
|
Other non-current assets
|
|
|
|
22
|
|
|
|
|
13
|
|
Accounts payable
|
|
|
|
28,392
|
|
|
|
|
(1,400
|
)
|
Accrued expenses and other liabilities
|
|
|
|
(2,232
|
)
|
|
|
|
6,590
|
|
Net cash provided by operating activities
|
|
|
|
20,849
|
|
|
|
|
26,975
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
Purchases of equipment
|
|
|
|
(3,493
|
)
|
|
|
|
(4,257
|
)
|
Proceeds from sale of equipment
|
|
|
|
10
|
|
|
|
|
-
|
|
Net cash used for investing activities
|
|
|
|
(3,483
|
)
|
|
|
|
(4,257
|
)
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
Exercise of stock options
|
|
|
|
16
|
|
|
|
|
1,586
|
|
Issuance of stock under Employee Stock Purchase Plan
|
|
|
|
360
|
|
|
|
|
307
|
|
Excess tax benefit from exercise of equity awards
|
|
|
|
34
|
|
|
|
|
228
|
|
Payment of payroll taxes on stock-based compensation through shares
withheld
|
|
|
|
(34
|
)
|
|
|
|
-
|
|
Repayment of capital lease obligation to affiliate
|
|
|
|
-
|
|
|
|
|
(527
|
)
|
Net cash provided by financing activities
|
|
|
|
376
|
|
|
|
|
1,594
|
|
Increase in cash and cash equivalents
|
|
|
|
17,742
|
|
|
|
|
24,312
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
42,547
|
|
|
|
|
39,907
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
60,289
|
|
|
|
$
|
64,219
|
|
|
|
|
|
|
|
|
Non-cash Investing Activity:
|
|
|
|
|
|
|
Accrued capital expenditures
|
|
|
$
|
343
|
|
|
|
$
|
151
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
|
Income taxes paid
|
|
|
$
|
10,933
|
|
|
|
$
|
10,936
|
|
|
|
|
|
|
|
|
pccc-g
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