[May 03, 2018] |
|
Connection (CNXN) Reports Record First Quarter Results; EPS and Operating Income Increase by 50% and 35%, Respectively, from Prior Q1
Connection (PC Connection, Inc.; NASDAQ: CNXN),
a leading technology solutions provider to business, government, and
education markets, today announced results for the first quarter ended
March 31, 2018. Net income for the first quarter ended March 31, 2018
increased by 52.1% to $11.3 million, or $0.42 per basic and diluted
share, compared to net income of $7.4 million, or $0.28 per basic and
diluted share for the prior year's quarter.
Effective January 1, 2018, the Company adopted a new revenue recognition
standard. Please note that the financial results presented in this
release include both amounts, "as presented," which reflect the
implementation of the new revenue recognition standard, as well as
amounts prior to the impact of the new revenue recognition standard to
allow for comparability against historical results. Starting in calendar
year 2019, we will no longer present our financial results under the
previous revenue recognition standard. For additional information and
reconciliations of our financial results between the new and prior
revenue recognition standards, please see the additional tables included
in this press release.
Net sales as presented for the quarter ended March 31, 2018 were $624.9
million. Net sales prior to the impact of the new revenue recognition
standard for the quarter ended March 31, 2018 increased by 4.5% to
$700.5 million, compared to $670.6 million for the prior year's quarter.
Gross profit as presented for the quarter ended March 31, 2018 was $96.4
million. Gross profit prior to the impact of the new revenue recognition
standard for the quarter ended March 31, 2018 was $95.8 million,
compared to $86.7 million in the first quarter a year ago, an increase
of 10.4%.
Gross margin as presented for the quarter ended March 31, 2018 was
15.4%. Gross margin prior to the impact of the new revenue recognition
standard was 13.7%, compared to 12.9% in the same quarter a year ago.
Operating income as presented for the quarter ended March 31, 2018 was
$15.5 million. Operating income prior to the impact of the new revenue
recognition standard was $15.0 million, compared to $11.5 million in the
same quarter a year ago.
Net income as presented for the quarter ended March 31, 2018 was $11.3
million. Net income prior to the impact of the new revenue recognition
standard was $10.9 million, compared to $7.4 million in the first
quarter a year ago, an increase of 47%.
Earnings per share ("EPS") on both a basic and diluted basis as
presented for the quarter ended March 31, 2018 was $0.42. EPS prior to
the impact of the new revenue recognition standard was $0.41 per share,
compared to the prior year's $0.28 on both a basic and diluted basis.
Earnings before interest, taxes, depreciation and amortization, adjusted
for stock-based compensation expense and rebranding, acquisition and
restructuring costs ("Adjusted EBITDA"), a non-GAAP measure, totaled
$98.6 million for the twelve months ended March 31, 2018, Adjusted
EBITDA prior to the impact of the new revenue recognition standard was
$98.1 million, compared to $92.1 million for the twelve months ended
March 31, 2017.
Quarterly Performance by Segment:
-
Net sales as presented for the first quarter of 2018 were $263.3
million for the Business Solutions (SMB) segment. Net sales prior to
the impact of the new revenue recognition standard for the first
quarter of 2018 increased by 9.1% to $298.7 million, compared to
$273.6 million for the prior year's quarter. Servers/storage and
net/com products experienced strong revenue growth in this segment
with an increase of 19% and 18%, respectively. Gross margin increased
by 229 basis points to 17.6% primarily due to the adoption of the new
revenue recognition standard and the increase in invoice selling
margins.
-
Net sales as presented for the first quarter of 2018 were $257.2
million for the Enterprise Solutions (Large Account) segment. Net
sales prior to the impact of the new revenue recognition standard for
the first quarter of 2018 increased by 14.7% to $290.2 million,
compared to $252.9 million for the prior year's quarter. Mobility and
server/storage products experienced solid growth during the quarter at
27% and 13%, respectively. Gross margin increased by 176 basis points
to 14.3% primarily due to the adoption of the new revenue recognition
standard and the increase in invoice selling margins.
-
Net sales as presented for the first quarter of 2018 were $104.4
million for the Public Sector Solutions segment. Net sales prior to
the impact of the new revenue recognition standard for the first
quarter of 2018 decreased by 22.5% to $111.6 million, compared to
$144.0 million for the prior year's quarter. Gross margin increased by
364 basis points to 12.9% primarily due to the adoption of the new
revenue recognition standard and the increase in invoice selling
margins.
Quarterly Sales by Product Mix:
-
Notebook/mobility sales, the Company's largest product category, as
presented, increased by 7% year over year and accounted for 26% of net
sales in the first quarter of 2018, compared to 22% of net sales in
the prior year quarter. Excluding the impact of the adoption of the
new revenue recognition standard, notebook/mobility sales increased by
6% year over year and accounted for 23% of net sales in the first
quarter of 2018, compared to 22% in the prior year quarter. Sales of
this product category grew year over year in Enterprise Solutions, but
were offset by lower notebook sales made under federal contracts in
our Public Sector, compared to the prior year quarter.
-
Servers/storage, as presented, increased by 21% year over year and
accounted for 12% of net sales in the first quarter of 2018, compared
to 9% of net sales in the prior year quarter. Excluding the impact of
the adoption of the new revenue recognition standard, servers/storage
sales increased by 21% year over year and accounted for 10% of net
sales in the first quarter of 2018, compared to 9% in the prior year
quarter. All three selling segments experienced strong year-over-year
growth in server/storage sales.
-
Software sales, as presented, decreased by 46% year over year and
accounted for 11% of net sales in the first quarter of 2018, compared
to 19% of net sales in the prior year quarter. The decrease in
software sales was due to the adoption the new revenue recognition
standard. Excluding the impact of the adoption of the new revenue
recognition standard, software sales increased by 15% year over year
and accounted for 21% of net sales in the first quarter of 2018,
compared to 19% of net sales in the prior year quarter. We experienced
solid growth in cloud-based offerings, security, and office
productivity.
As reported, gross profit increased by $9.6 million, or 11.1%, in the
first quarter of 2018, compared to the prior year quarter. Gross profit
prior to the impact of the new revenue recognition standard increased by
$9.0 million, or 10.4% from the first quarter a year ago. Consolidated
gross margin as reported, as a percentage of net sales, increased to
15.4% in the first quarter of 2018, compared to 12.9% for the prior year
quarter. Gross margin prior to the impact of the new revenue recognition
standard was 13.7% compared to 12.9% a year ago. The increase in gross
margin was attributed to an increase in invoice selling margins related
to an increase in higher-margin advanced solution sales.
Selling, general and administrative ("SG&A") expenses as reported,
increased in the first quarter of 2018 to $80.9 million from $75.3
million in the prior year quarter. SG&A in the first quarter of 2018
prior to the impact of the new revenue recognition standard was $80.8
million. The increase was primarily the result of increased variable
compensation associated with our higher gross profits as well as
investments made in our technology solutions group. SG&A as reported as
a percentage of net sales was 12.9%, compared to 11.2% in the prior year
quarter. However, SG&A in the first quarter of 2018, prior to the impact
of the new revenue recognition standard, was 11.5%.
Cash and cash equivalents were $71.0 million at March 31, 2018, compared
to $50.0 million at December 31, 2017. During the quarter we paid a $9.1
million special dividend to our shareholders. Also during the first
quarter of 2018, the Company repurchased 116,241 shares of stock for
$3.0 million. As of March 31, 2018, the Company had $14.8 million
available for stock repurchases remaining under previous authorizations
made by its Board of Directors. Days sales outstanding were 53 days at
March 31, 2018, up from 48 days in the prior year quarter; the increase
of 5 days from 48 days was due to the adoption of the new revenue
recognition standard. Inventory turns were 23 turns in the first quarter
of 2018, down from 25 turns in the prior year quarter; excluding the
impact of the new revenue recognition standard, inventory turns would
have increased to 26 turns.
"We are pleased with our record first quarter results in gross margin
and earnings per share, while generating significant operating cash
flow. It was also good to see continued execution and double-digit
growth in our vertical markets; retail, manufacturing, healthcare, and
finance." said Tim McGrath, President and Chief Executive Officer. "We
remain focused on our strategic plan to help our customers solve their
business challenges with innovative technology solutions," concluded Mr.
McGrath.
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. Non-GAAP measures are not a substitute for
GAAP measures and should be considered together with the GAAP financial
measures. Our non-GAAP financial measures may not be comparable to other
similarly titled measures of other companies.
About Connection
PC Connection, Inc. and its subsidiaries, dba Connection, (www.connection.com;
NASDAQ: CNXN) is a Fortune 1000 company headquartered in Merrimack, NH.
With offices throughout the United States, Connection delivers
custom-configured computer systems overnight from its ISO 9001:2008
certified technical configuration lab at its distribution center in
Wilmington, OH. In addition, the Company has over 2,500 technical
certifications to ensure it can solve the most complex issues of its
customers. Connection also services international customers through its
GlobalServe subsidiary, a global IT procurement and service management
company. Investors and media can find more information about Connection
at http://ir.pcconnection.com.
Connection - Business Solutions (800-800-5555), (the original business
of PC Connection) operating through our PC Connection Sales Corp.
subsidiary, is a rapid-response provider of IT products and services
serving primarily the small- and medium-sized business sector. It offers
more than 300,000 brand-name products through its staff of technically
trained sales account managers, publications, and its website at www.connection.com.
Connection - Public Sector Solutions (800-800-0019), operating through
our GovConnection, Inc. subsidiary, is a rapid-response provider of IT
products and services to federal, state, and local government agencies
and educational institutions through specialized account managers,
publications, and online at www.connection.com/publicsector.
Connection - Enterprise Solutions (561-237-3300), www.connection.com/enterprise,
operating through our MoreDirect, Inc. subsidiary, 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™, a proprietary cloud-based eProcurement system.
The team's engineers, software licensing specialists, and project
managers help reduce the cost and complexity of buying hardware,
software, and services throughout the entire IT lifecycle.
cnxn-g
"Safe Harbor" Statement Under the Private Securities Litigation Reform
Act of 1995: This release contains forward-looking statements that are
based on currently available information, operating plans, and
projections about future events and trends. Terms such as "believe,"
"expect," "intend," "plan," "estimate," "anticipate," "may," "should,"
"will," or similar statements or variations of such terms are intended
to identify forward-looking statements, although not all forward-looking
statements include such terms. Forward-looking statements inherently
involve risks and uncertainties that could cause actual results to
differ materially from those predicted in such forward-looking
statements. Such risks and uncertainties include, but are 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, product availability and
market acceptance, new products, continuation of key vendor and customer
relationships and support programs, the ability to realize market demand
for and competitive pricing pressures on the products and services
marketed by the Company, fluctuations in operating results and the
ability of the Company to manage personnel levels in response to
fluctuations in revenue, the ability of the Company to hire and retain
qualified sales representatives and other essential personnel, the
impact of changes in accounting requirements, and other risks detailed
in the Company's filings with the Securities and Exchange Commission,
including 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, 2017. The Company assumes no
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, except as required by law.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED SELECTED FINANCIAL INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the Three Months Ended March 31,
|
|
|
2018
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
(Amounts and shares in thousands, except operating data, P/E
ratio, and per share data)
|
|
|
|
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
624,895
|
|
|
|
|
|
$
|
670,594
|
|
|
|
|
|
(7
|
%)
|
Diluted earnings per share
|
|
|
$
|
0.42
|
|
|
|
|
|
$
|
0.28
|
|
|
|
|
|
50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
15.4
|
%
|
|
|
|
|
|
12.9
|
%
|
|
|
|
|
|
Operating margin
|
|
|
|
2.5
|
%
|
|
|
|
|
|
1.7
|
%
|
|
|
|
|
|
Return on equity (1)
|
|
|
|
12.5
|
%
|
|
|
|
|
|
11.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory turns
|
|
|
|
23
|
|
|
|
|
|
|
25
|
|
|
|
|
|
|
Days sales outstanding
|
|
|
|
53
|
|
|
|
|
|
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
|
|
|
Product Mix:
|
|
|
Net Sales
|
|
|
|
|
Net Sales
|
|
|
|
|
|
Notebooks/Mobility
|
|
|
|
26
|
%
|
|
|
|
|
|
22
|
%
|
|
|
|
|
|
Servers/Storage
|
|
|
|
12
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
Software
|
|
|
|
11
|
|
|
|
|
|
|
19
|
|
|
|
|
|
|
Net/Com Products
|
|
|
|
8
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
Other Hardware/Services
|
|
|
|
43
|
|
|
|
|
|
|
41
|
|
|
|
|
|
|
Total Net Sales
|
|
|
|
100
|
%
|
|
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Performance Indicators:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual shares outstanding
|
|
|
|
26,737
|
|
|
|
|
|
|
26,761
|
|
|
|
|
|
|
Total book value per share
|
|
|
$18.40
|
|
|
|
|
|
$16.54
|
|
|
|
|
|
|
Tangible book value per share
|
|
|
$15.25
|
|
|
|
|
|
$13.34
|
|
|
|
|
|
|
Closing price
|
|
|
$25.00
|
|
|
|
|
|
$29.79
|
|
|
|
|
|
|
Market capitalization
|
|
|
$668,425
|
|
|
|
|
|
$797,210
|
|
|
|
|
|
|
Trailing price/earnings ratio
|
|
|
|
11.4
|
|
|
|
|
|
|
17.0
|
|
|
|
|
|
|
LTM Adjusted EBITDA (2)
|
|
|
$98,551
|
|
|
|
|
|
$92,136
|
|
|
|
|
|
|
Adjusted market capitalization/LTM Adjusted EBITDA (3)
|
|
|
|
6.1
|
|
|
|
|
|
|
7.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 and
|
|
|
acquisition, rebranding, and restructuring costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Adjusted market capitalization is defined as gross market
capitalization less cash balance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE AND MARGIN INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
Net
|
|
Gross
|
|
|
Net
|
|
Gross
|
|
|
|
(amounts in thousands)
|
|
|
Sales
|
|
Margin
|
|
|
Sales
|
|
Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Solutions (SMB)
|
|
|
$
|
263,278
|
|
|
17.6
|
%
|
|
|
$
|
273,633
|
|
|
15.3
|
%
|
|
|
|
Enterprise Solutions (Large Account)
|
|
|
|
257,244
|
|
|
14.3
|
|
|
|
|
252,918
|
|
|
12.5
|
|
|
|
|
Public Sector Solutions
|
|
|
|
104,373
|
|
|
12.9
|
|
|
|
|
144,043
|
|
|
9.2
|
|
|
|
|
Total
|
|
|
$
|
624,895
|
|
|
15.4
|
%
|
|
|
$
|
670,594
|
|
|
12.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
|
Three Months Ended March 31,
|
|
|
2018
|
|
|
|
2017 (1)
|
|
(amounts in thousands, except per share data)
|
|
Amount
|
|
|
% of Net Sales
|
|
|
|
Amount
|
|
|
% of Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
624,895
|
|
|
|
100.0
|
%
|
|
|
|
$
|
670,594
|
|
|
|
|
100.0
|
%
|
|
|
Cost of sales
|
|
|
|
|
528,523
|
|
|
|
84.6
|
|
|
|
|
|
583,861
|
|
|
|
|
87.1
|
|
|
|
Gross profit
|
|
|
|
|
96,372
|
|
|
|
15.4
|
|
|
|
|
|
86,733
|
|
|
|
|
12.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
80,900
|
|
|
|
12.9
|
|
|
|
|
|
75,281
|
|
|
|
|
11.2
|
|
|
|
Income from operations
|
|
|
|
|
15,472
|
|
|
|
2.5
|
|
|
|
|
|
11,452
|
|
|
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest/other expense, net
|
|
|
|
|
116
|
|
|
|
-
|
|
|
|
|
|
19
|
|
|
|
|
-
|
|
|
|
Income tax provision
|
|
|
|
|
(4,288
|
)
|
|
|
(0.7
|
)
|
|
|
|
|
(4,039
|
)
|
|
|
|
(0.6
|
)
|
|
|
Net income
|
|
|
|
$
|
11,300
|
|
|
|
1.8
|
%
|
|
|
|
$
|
7,432
|
|
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
$
|
0.28
|
|
|
|
|
|
|
Diluted
|
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the computation of earnings per common share:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
26,835
|
|
|
|
|
|
|
|
|
26,697
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
26,916
|
|
|
|
|
|
|
|
|
26,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts are not restated and represent the amounts recognized
under generally accepted accounting principles in place during that
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and special charges. 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 March 31,
|
|
|
|
LTM Ended March 31, (1)
|
|
|
2018
|
|
2017
|
|
|
% Change
|
|
|
|
2018
|
|
|
2017
|
|
% Change
|
Net income
|
|
$
|
11,300
|
|
$
|
7,432
|
|
|
|
52
|
%
|
|
|
|
$
|
58,725
|
|
|
|
$
|
46,480
|
|
|
26
|
%
|
Depreciation and amortization
|
|
|
3,301
|
|
|
2,855
|
|
|
|
16
|
%
|
|
|
|
|
12,285
|
|
|
|
|
10,892
|
|
|
13
|
%
|
Income tax expense
|
|
|
4,288
|
|
|
4,039
|
|
|
|
6
|
%
|
|
|
|
|
23,017
|
|
|
|
|
30,294
|
|
|
(24
|
%)
|
Interest expense
|
|
|
25
|
|
|
28
|
|
|
|
(11
|
%)
|
|
|
|
|
123
|
|
|
|
|
121
|
|
|
2
|
%
|
EBITDA
|
|
|
18,914
|
|
|
14,354
|
|
|
|
32
|
%
|
|
|
|
|
94,150
|
|
|
|
|
87,787
|
|
|
7
|
%
|
Special charges (2)
|
|
|
-
|
|
|
-
|
|
|
|
N/A
|
|
|
|
|
|
3,636
|
|
|
|
|
3,406
|
|
|
7
|
%
|
Stock-based compensation
|
|
|
207
|
|
|
183
|
|
|
|
13
|
%
|
|
|
|
|
765
|
|
|
|
|
943
|
|
|
(19
|
%)
|
Adjusted EBITDA
|
|
$
|
19,121
|
|
$
|
14,537
|
|
|
|
32
|
%
|
|
|
|
$
|
98,551
|
|
|
|
$
|
92,136
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) LTM: Last twelve months (2) Special charges in 2017 consist of
a fourth quarter one-time bonus paid to all employees except executive
officers as well as severance and relocation costs for our Softmart
facility incurred in the second quarter 2017. Special charges in 2016
consist of our acquisition of Softmart, the rebranding of the Company,
and duplicate costs incurred with the move of our Chicago-area facility.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
2018
|
|
|
2017(1)
|
(amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
$
|
70,967
|
|
|
|
$
|
49,990
|
|
Accounts receivable, net
|
|
|
|
|
|
|
|
408,334
|
|
|
|
|
449,682
|
|
Inventories
|
|
|
|
|
|
|
|
85,582
|
|
|
|
|
106,753
|
|
Prepaid expenses and other current assets
|
|
|
|
|
|
|
6,437
|
|
|
|
|
5,737
|
|
Income taxes receivable
|
|
|
|
|
|
|
|
380
|
|
|
|
|
3,933
|
|
Total current assets
|
|
|
|
|
|
|
|
571,700
|
|
|
|
|
616,095
|
|
Property and equipment, net
|
|
|
|
|
|
|
|
44,019
|
|
|
|
|
41,491
|
|
Goodwill
|
|
|
|
|
|
|
|
73,602
|
|
|
|
|
73,602
|
|
Other intangibles, net
|
|
|
|
|
|
|
|
10,645
|
|
|
|
|
11,025
|
|
Long-term accounts receivable
|
|
|
|
|
|
|
|
1,890
|
|
|
|
|
-
|
|
Other assets
|
|
|
|
|
|
|
|
1,714
|
|
|
|
|
5,638
|
|
Total Assets
|
|
|
|
|
|
|
$
|
703,570
|
|
|
|
$
|
747,851
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
Borrowings under bank line of credit
|
|
|
|
|
|
$
|
859
|
|
|
|
$
|
-
|
|
Accounts payable
|
|
|
|
|
|
|
|
152,115
|
|
|
|
|
194,257
|
|
Accrued expenses and other liabilities
|
|
|
|
|
|
|
23,434
|
|
|
|
|
31,096
|
|
Accrued payroll
|
|
|
|
|
|
|
|
17,207
|
|
|
|
|
22,662
|
|
Total current liabilities
|
|
|
|
|
|
|
|
193,615
|
|
|
|
|
248,015
|
|
Deferred income taxes
|
|
|
|
|
|
|
|
16,125
|
|
|
|
|
15,696
|
|
Other liabilities
|
|
|
|
|
|
|
|
1,871
|
|
|
|
|
1,888
|
|
Total Liabilities
|
|
|
|
|
|
|
|
211,611
|
|
|
|
|
265,599
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
|
|
|
287
|
|
|
|
|
287
|
|
Additional paid-in capital
|
|
|
|
|
|
|
|
114,361
|
|
|
|
|
114,154
|
|
Retained earnings
|
|
|
|
|
|
|
|
396,170
|
|
|
|
|
383,673
|
|
Treasury stock at cost
|
|
|
|
|
|
|
|
(18,859
|
)
|
|
|
|
(15,862
|
)
|
Total Stockholders' Equity
|
|
|
|
|
|
|
|
491,959
|
|
|
|
|
482,252
|
|
Total Liabilities and Stockholders' Equity
|
|
|
|
|
|
$
|
703,570
|
|
|
|
$
|
747,851
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts are not restated and represent the amounts recognized under
generally accepted accounting principles in place during that period.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2018
|
|
|
2017(1)
|
(amounts in thousands)
|
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
11,300
|
|
|
|
$
|
7,432
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
3,300
|
|
|
|
|
2,855
|
|
Deferred income taxes
|
|
|
|
|
|
429
|
|
|
|
|
38
|
|
Provision for doubtful accounts
|
|
|
|
|
|
417
|
|
|
|
|
545
|
|
Stock-based compensation expense
|
|
|
|
|
|
207
|
|
|
|
|
183
|
|
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
|
57,389
|
|
|
|
|
32,885
|
|
Inventories
|
|
|
|
|
|
10,302
|
|
|
|
|
(9,438
|
)
|
Prepaid expenses and other current assets
|
|
|
|
|
|
2,721
|
|
|
|
|
1,016
|
|
Other non-current assets
|
|
|
|
|
|
(1,880
|
)
|
|
|
|
22
|
|
Accounts payable
|
|
|
|
|
|
(42,521
|
)
|
|
|
|
(6,177
|
)
|
Accrued expenses and other liabilities
|
|
|
|
|
|
(4,420
|
)
|
|
|
|
(3,936
|
)
|
Net cash provided by operating activities
|
|
|
|
|
|
37,244
|
|
|
|
|
25,425
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
Purchases of equipment
|
|
|
|
|
|
(5,007
|
)
|
|
|
|
(1,487
|
)
|
Net cash used for investing activities
|
|
|
|
|
|
(5,007
|
)
|
|
|
|
(1,487
|
)
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from short-term borrowings
|
|
|
|
|
|
859
|
|
|
|
|
-
|
|
Purchase of treasury shares
|
|
|
|
|
|
(2,997
|
)
|
|
|
|
-
|
|
Dividend payment
|
|
|
|
|
|
(9,122
|
)
|
|
|
|
(9,041
|
)
|
Exercise of stock options
|
|
|
|
|
|
-
|
|
|
|
|
1,678
|
|
Net cash used for financing activities
|
|
|
|
|
|
(11,260
|
)
|
|
|
|
(7,363
|
)
|
Increase in cash and cash equivalents
|
|
|
|
|
|
20,977
|
|
|
|
|
16,575
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
|
49,990
|
|
|
|
|
49,180
|
|
Cash and cash equivalents, end of period
|
|
|
|
|
$
|
70,967
|
|
|
|
$
|
65,755
|
|
|
|
|
|
|
|
|
|
|
Non-cash Investing Activities:
|
|
|
|
|
|
|
|
|
Accrued capital expenditures
|
|
|
|
|
$
|
1,140
|
|
|
|
$
|
291
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
|
|
|
Income taxes paid
|
|
|
|
|
$
|
320
|
|
|
|
$
|
1,546
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts are not restated and represent the amounts recognized under
generally accepted accounting principles in place during that period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF CHANGES IN REVENUE STANDARD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
Change
|
|
|
Three Months Ended March 31,
|
|
|
As Presented
|
|
|
Previous Revenue Standard
|
|
|
2018
|
|
|
2017
|
|
|
Amount
|
|
|
Percent
|
|
|
Amount
|
|
|
Percent
|
|
|
As
|
|
|
|
|
Impact of New
|
|
Previous Revenue Standard
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Presented
|
|
% of Net Sales
|
|
|
Revenue Standard
|
|
Amount
|
|
% of Net Sales
|
|
Amount
|
|
% of Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
624,895
|
|
|
100.0
|
%
|
|
|
$
|
75,558
|
|
|
|
$
|
700,453
|
|
|
100.0
|
%
|
|
|
$
|
670,594
|
|
|
100.0
|
%
|
|
|
$
|
(45,699
|
)
|
|
|
(6.8
|
%)
|
|
|
$
|
29,859
|
|
|
|
4.5
|
%
|
Cost of sales
|
|
|
528,523
|
|
|
84.6
|
%
|
|
|
|
76,168
|
|
|
|
|
604,691
|
|
|
86.3
|
%
|
|
|
|
583,861
|
|
|
87.1
|
%
|
|
|
|
(55,338
|
)
|
|
|
(9.5
|
%)
|
|
|
|
20,830
|
|
|
|
3.6
|
%
|
Gross profit
|
|
|
96,372
|
|
|
15.4
|
%
|
|
|
|
(610
|
)
|
|
|
|
95,762
|
|
|
13.7
|
%
|
|
|
|
86,733
|
|
|
12.9
|
%
|
|
|
|
9,639
|
|
|
|
11.1
|
%
|
|
|
|
9,029
|
|
|
|
10.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
80,900
|
|
|
12.9
|
%
|
|
|
|
(113
|
)
|
|
|
|
80,787
|
|
|
11.5
|
%
|
|
|
|
75,281
|
|
|
11.2
|
%
|
|
|
|
5,619
|
|
|
|
7.5
|
%
|
|
|
|
5,506
|
|
|
|
7.3
|
%
|
Income from operations
|
|
|
15,472
|
|
|
2.5
|
%
|
|
|
|
(497
|
)
|
|
|
|
14,975
|
|
|
2.1
|
%
|
|
|
|
11,452
|
|
|
1.7
|
%
|
|
|
|
4,020
|
|
|
|
35.1
|
%
|
|
|
|
3,523
|
|
|
|
30.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
|
|
116
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
116
|
|
|
-
|
|
|
|
|
19
|
|
|
-
|
|
|
|
|
97
|
|
|
|
510.5
|
%
|
|
|
|
97
|
|
|
|
510.5
|
%
|
Income tax provision
|
|
|
(4,288
|
)
|
|
(0.7
|
%)
|
|
|
|
135
|
|
|
|
|
(4,153
|
)
|
|
(0.6
|
%)
|
|
|
|
(4,039
|
)
|
|
(0.6
|
%)
|
|
|
|
(249
|
)
|
|
|
6.2
|
%
|
|
|
|
(114
|
)
|
|
|
2.8
|
%
|
Net income
|
|
$
|
11,300
|
|
|
1.8
|
%
|
|
|
$
|
(362
|
)
|
|
|
$
|
10,938
|
|
|
1.6
|
%
|
|
|
$
|
7,432
|
|
|
1.1
|
%
|
|
|
$
|
3,868
|
|
|
|
52.0
|
%
|
|
|
$
|
3,506
|
|
|
|
47.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.42
|
|
|
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
0.41
|
|
|
|
|
|
$
|
0.28
|
|
|
|
|
|
$
|
0.14
|
|
|
|
50.0
|
%
|
|
|
$
|
0.13
|
|
|
|
46.4
|
%
|
Diluted
|
|
$
|
0.42
|
|
|
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
0.41
|
|
|
|
|
|
$
|
0.28
|
|
|
|
|
|
$
|
0.14
|
|
|
|
50.0
|
%
|
|
|
$
|
0.13
|
|
|
|
46.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the computation of earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
26,835
|
|
|
|
|
|
|
|
|
|
26,835
|
|
|
|
|
|
|
26,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
26,916
|
|
|
|
|
|
|
|
|
|
26,916
|
|
|
|
|
|
|
26,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED SELECTED FINANCIAL INFORMATION UNDER PREVIOUS
REVENUE RECOGNITION STANDARD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
|
|
Impact of New
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Presented
|
|
Revenue Standard
|
|
|
Previous Revenue Standard
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory turns
|
|
|
23
|
|
|
3
|
|
|
|
|
26
|
|
|
|
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days sales outstanding
|
|
|
53
|
|
|
(5
|
)
|
|
|
|
48
|
|
|
|
|
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Mix:
|
|
Net Sales
|
|
|
|
|
Net Sales
|
|
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notebooks/Mobility
|
|
|
26
|
%
|
|
(3
|
)
|
|
|
|
23
|
%
|
|
|
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servers/Storage
|
|
|
12
|
|
|
(2
|
)
|
|
|
|
10
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software
|
|
|
11
|
|
|
10
|
|
|
|
|
21
|
|
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net/Com Products
|
|
|
8
|
|
|
(1
|
)
|
|
|
|
7
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Hardware/Services
|
|
|
43
|
|
|
(4
|
)
|
|
|
|
39
|
|
|
|
|
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Sales
|
|
|
100
|
%
|
|
|
|
|
|
100
|
%
|
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF CHANGES IN REVENUE STANDARD FOR SEGMENT NET
SALES
|
|
|
|
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
Change
|
|
|
Three Months Ended March 31,
|
|
As Presented
|
|
Previous Revenue Standard
|
|
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
|
|
Impact of New
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
Presented
|
|
Revenue Standard
|
|
Previous Revenue Standard
|
|
|
|
|
Business Solutions (SMB)
|
|
$
|
263,278
|
|
|
$
|
35,388
|
|
|
$
|
298,666
|
|
|
$
|
273,633
|
|
|
$
|
(10,355
|
)
|
|
(3.8
|
%)
|
|
$
|
25,033
|
|
|
9.1
|
%
|
Enterprise Solutions (Large Account)
|
|
|
257,244
|
|
|
|
32,951
|
|
|
|
290,195
|
|
|
|
252,918
|
|
|
|
4,326
|
|
|
1.7
|
%
|
|
|
37,277
|
|
|
14.7
|
%
|
Public Sector Solutions
|
|
|
104,373
|
|
|
|
7,219
|
|
|
|
111,592
|
|
|
|
144,043
|
|
|
|
(39,670
|
)
|
|
(27.5
|
%)
|
|
|
(32,451
|
)
|
|
(22.5
|
%)
|
Total
|
|
$
|
624,895
|
|
|
$
|
75,558
|
|
|
$
|
700,453
|
|
|
$
|
670,594
|
|
|
$
|
(45,699
|
)
|
|
(6.8
|
%)
|
|
$
|
29,859
|
|
|
4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF CHANGES IN REVENUE STANDARD FOR SEGMENT GROSS
PROFITS
|
|
|
|
|
|
|
|
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
Change
|
|
|
Three Months Ended March 31,
|
|
As Presented
|
|
Previous Revenue Standard
|
|
|
2018
|
|
|
|
|
|
2017
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
|
|
Impact of New
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profits
|
|
Presented
|
|
Revenue Standard
|
|
Previous Revenue Standard
|
|
|
|
|
Business Solutions (SMB)
|
|
$
|
46,235
|
|
|
$
|
(203
|
)
|
|
$
|
46,032
|
|
|
$
|
41,791
|
|
|
$
|
4,444
|
|
|
10.6
|
%
|
|
$
|
4,241
|
|
|
10.1
|
%
|
Enterprise Solutions (Large Account)
|
|
|
36,694
|
|
|
|
(408
|
)
|
|
|
36,286
|
|
|
|
31,629
|
|
|
|
5,065
|
|
|
16.0
|
%
|
|
|
4,657
|
|
|
14.7
|
%
|
Public Sector Solutions
|
|
|
13,443
|
|
|
|
-
|
|
|
|
13,443
|
|
|
|
13,313
|
|
|
|
130
|
|
|
1.0
|
%
|
|
|
130
|
|
|
1.0
|
%
|
Total
|
|
$
|
96,372
|
|
|
$
|
(611
|
)
|
|
$
|
95,761
|
|
|
$
|
86,733
|
|
|
$
|
9,639
|
|
|
11.1
|
%
|
|
$
|
9,028
|
|
|
10.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF CHANGES IN REVENUE STANDARD FOR SEGMENT GROSS
MARGINS
|
|
|
|
|
|
|
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
Change
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
As Presented
|
|
Previous Revenue Standard
|
|
|
|
|
|
|
2018
|
|
2017
|
|
Amount
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
|
|
Impact of New
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margins
|
|
Presented
|
|
Revenue Standard
|
|
Previous Revenue Standard
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Solutions (SMB)
|
|
|
17.6
|
%
|
|
|
(215
|
)
|
|
|
15.4
|
%
|
|
|
15.3
|
%
|
|
|
229
|
|
|
14
|
|
|
|
|
|
Enterprise Solutions (Large Account)
|
|
|
14.3
|
%
|
|
|
(176
|
)
|
|
|
12.5
|
%
|
|
|
12.5
|
%
|
|
|
176
|
|
|
(0
|
)
|
|
|
|
|
Public Sector Solutions
|
|
|
12.9
|
%
|
|
|
(83
|
)
|
|
|
12.0
|
%
|
|
|
9.2
|
%
|
|
|
364
|
|
|
280
|
|
|
|
|
|
Total
|
|
|
15.4
|
%
|
|
|
(175
|
)
|
|
|
13.7
|
%
|
|
|
12.9
|
%
|
|
|
249
|
|
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF CHANGES IN REVENUE STANDARD FOR 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 and special charges. 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
Change
|
(amounts in thousands)
|
|
Three Months Ended March 31,
|
|
As Presented
|
|
Previous Revenue Standard
|
|
|
2018
|
|
2017
|
|
Percent
|
|
Percent
|
|
|
As
|
|
Impact of New
|
|
|
|
|
|
|
|
|
|
|
Presented
|
|
Revenue Standard
|
|
Previous Revenue Standard
|
|
|
Net income
|
|
$
|
11,300
|
|
$
|
(362
|
)
|
|
$
|
10,938
|
|
$
|
7,432
|
|
52
|
%
|
|
47
|
%
|
Depreciation and amortization
|
|
|
3,301
|
|
|
-
|
|
|
|
3,301
|
|
|
2,855
|
|
16
|
%
|
|
16
|
%
|
Income tax expense
|
|
|
4,288
|
|
|
(135
|
)
|
|
|
4,153
|
|
|
4,039
|
|
6
|
%
|
|
3
|
%
|
Interest expense
|
|
|
25
|
|
|
-
|
|
|
|
25
|
|
|
28
|
|
(11
|
%)
|
|
(11
|
%)
|
EBITDA
|
|
|
18,914
|
|
|
(497
|
)
|
|
|
18,417
|
|
|
14,354
|
|
32
|
%
|
|
28
|
%
|
Special charges
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
N/A
|
|
|
N/A
|
|
Stock-based compensation
|
|
|
207
|
|
|
-
|
|
|
|
207
|
|
|
183
|
|
13
|
%
|
|
13
|
%
|
Adjusted EBITDA
|
|
$
|
19,121
|
|
$
|
(497
|
)
|
|
$
|
18,624
|
|
$
|
14,537
|
|
32
|
%
|
|
28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
Change
|
(amounts in thousands)
|
|
LTM Ended March 31, (1)
|
|
As Presented
|
|
Previous Revenue Standard
|
|
|
2018
|
|
2017
|
|
Percent
|
|
Percent
|
|
|
As
|
|
Impact of New
|
|
|
|
|
|
|
|
|
|
|
Presented
|
|
Revenue Standard
|
|
Previous Revenue Standard
|
|
|
Net income
|
|
$
|
58,725
|
|
$
|
(362
|
)
|
|
$
|
58,363
|
|
$
|
46,480
|
|
26
|
%
|
|
26
|
%
|
Depreciation and amortization
|
|
|
12,285
|
|
|
-
|
|
|
|
12,285
|
|
|
10,892
|
|
13
|
%
|
|
13
|
%
|
Income tax expense
|
|
|
23,017
|
|
|
(135
|
)
|
|
|
22,882
|
|
|
30,294
|
|
(24
|
%)
|
|
(24
|
%)
|
Interest expense
|
|
|
123
|
|
|
-
|
|
|
|
123
|
|
|
121
|
|
2
|
%
|
|
2
|
%
|
EBITDA
|
|
|
94,150
|
|
|
(497
|
)
|
|
|
93,653
|
|
|
87,787
|
|
7
|
%
|
|
7
|
%
|
Special charges (2)
|
|
|
3,636
|
|
|
-
|
|
|
|
3,636
|
|
|
3,406
|
|
7
|
%
|
|
7
|
%
|
Stock-based compensation
|
|
|
765
|
|
|
-
|
|
|
|
765
|
|
|
943
|
|
(19
|
%)
|
|
(19
|
%)
|
Adjusted EBITDA
|
|
$
|
98,551
|
|
$
|
(497
|
)
|
|
$
|
98,054
|
|
$
|
92,136
|
|
7
|
%
|
|
6
|
%
|
(1) LTM: Last twelve months (2) Special charges in 2017 consist of
a fourth quarter one-time bonus paid to all employees except executive
officers as well as severance and relocation costs for our Softmart
facility incurred in the second quarter 2017. Special charges in 2016
consist of our acquisition of Softmart, the rebranding of the Company,
and duplicate costs incurred with the move of our Chicago-area facility.
cnxn-g
View source version on businesswire.com: https://www.businesswire.com/news/home/20180503006598/en/
[ Back To TMCnet.com's Homepage ]
|