[July 27, 2017] |
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Connection (CNXN) Reports Record Second Quarter 2017 Results
Connection (PC Connection, Inc.; NASDAQ: CNXN),
a leading technology solutions provider of a full range of information
technology (IT) solutions to business, government, and education
markets, today announced results for the quarter ended June 30, 2017.
Net sales for the quarter ended June 30, 2017 increased by 10.9% to
$749.8 million, compared to $676.2 million for the prior year quarter.
Net income for the quarter ended June 30, 2017 increased by 9.0% to
$13.6 million, or $0.51 per diluted share, compared to net income of
$12.5 million, or $0.47 per diluted share for the prior year quarter.
The second quarter 2017 results include $0.9 million of severance and
restructuring costs. Earnings per share, adjusted for severance and
restructuring charges, increased to $0.53 cents per share for the
quarter ended June 30, 2017, compared to $0.49 cents per share for the
prior year quarter.
Net sales for the six months ended June 30, 2017 were $1,420.4 million,
an increase of $171.8 million or 13.8%, compared to $1,248.6 million for
the six months ended June 30, 2016. Net income for the six months ended
June 30, 2017 was $21.0 million, or $0.78 per diluted share, compared to
net income of $21.5 million, or $0.81 per diluted share, for the six
months ended June 30, 2016. Earnings before interest, taxes,
depreciation and amortization, adjusted for stock-based compensation
expense and rebranding, acquisition and restructuring costs ("Adjusted
EBITDA") totaled $94.0 million for the twelve months ended June 30,
2017, compared to $93.1 million for the twelve months ended June 30,
2016.
Quarterly Performance by Segment:
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Net sales for the Business Solutions (SMB) segment increased by 9.4%
to $296.4 million in the second quarter of 2017, compared to the prior
year quarter. Software, mobility, and desktop products were strong in
this segment with an increase of 12%, 11%, and 11%, respectively.
Gross margin decreased by 44 basis points due to increased sales of
lower-margin mobility and desktop products.
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Net sales for the Enterprise Solutions (Large Account) segment
increased by 12.1% to $302.1 million in the second quarter of 2017,
compared to the prior year quarter. Software and net/com products had
strong growth during this quarter at 23% and 60%, respectively. Gross
margin decreased by 39 basis points due to an increase in large
project rollouts and a competitive sales environment.
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Net sales to the Public Sector Solutions segment increased by 11.5% to
$151.3 million in the second quarter of 2017, compared to the prior
year quarter. Sales to the federal government increased by 44.7%,
while sales to state and local government and educational institutions
increased by 3.1%. Gross margin decreased by 119 basis points due to
the completion of several large project rollouts that included
lower-margin products such as desktops, which grew 48% during the
quarter.
Quarterly Sales by Product Mix:
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Software sales, the Company's largest product category, increased by
15% year over year and accounted for 23% of net sales in the second
quarter of 2017 compared to 22% of net sales in the prior year
quarter. We experienced growth in cloud-based offerings, security, and
office productivity.
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Notebook/mobility sales increased by 2% year over year and accounted
for 21% of net sales in the second quarter of 2017 compared to 23% of
net sales in the prior year quarter. Business Solutions experienced
strong year-over-year growth in notebook/mobility sales.
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Desktop sales increased by 6% year over year and accounted for 10% of
net sales in the second quarter of both 2017 and 2016. The Business
Solutions and Public Sector Solutions segments experienced strong
year-over-year growth in desktop sales.
Overall gross profit increased by $5.8 million, or 6.2%, in the second
quarter of 2017, compared to the prior year quarter. Consolidated gross
margin, as a percentage of net sales, decreased to 13.3% in the second
quarter of 2017, compared to 13.9% for the prior year quarter.
Selling, general and administrative dollars, excluding severance and
restructuring costs, increased in the second quarter of 2017 to $76.3
million from $72.0 million in the prior year quarter, with variable cost
increasing due to higher levels of gross profit. We also had three
months of Softmart SG&A in the current quarter. 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.
Total cash was $28.1 million at June 30, 2017, compared to $49.2 million
at December 31, 2016. Days sales outstanding were 47 days at June 30,
2017, and inventory turns were 22 turns in the second quarter of 2017.
"We are pleased with our record sales and gross profit for the quarter
and with our ability to execute well in all three sales segments in this
hyper-competitive demand environment. The Company achieved strong growth
in software, networking communications, and services," said Tim McGrath,
President and Chief Executive Officer. "We believe our team and the
strategies we have in place position Connection well to gain market
share and increase shareholder value," concluded Mr. McGrath.
Non-GAAP Financial Information
Adjusted EBITDA and Adjusted EPS are 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 that they can solve the most complex issues of
their 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, competitive products and
pricing, product availability and market acceptance, new products,
market acceptance of the Company's new branding, fluctuations in
operating results, the ability of the Company to manage personnel levels
in response to fluctuations in revenue, 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, 2016. 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, and integrate its
two acquisitions in an effective manner, and the Company's continuing
investments in technical solution sales capabilities) 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 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.
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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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2017
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2016
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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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Change
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Operating Data:
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Net sales
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$
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749,792
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$
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676,165
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11%
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Diluted earnings per share
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$
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0.51
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$
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0.47
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9%
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Adjusted diluted earnings per share
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$
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0.53
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$
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0.49
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8%
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Gross margin
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13.3%
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13.9%
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Operating margin
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3.0%
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3.1%
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Return on equity (1)
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11.0%
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12.3%
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Inventory turns
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22
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22
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Days sales outstanding
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47
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45
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% of
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% of
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Product Mix:
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Net Sales
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Net Sales
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Software
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23%
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22%
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Notebooks/Mobility
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21
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23
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Servers/Storage
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9
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10
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Net/Com Products
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8
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7
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Other Hardware/Services
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39
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38
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Total Net Sales
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100%
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100%
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Stock Performance Indicators:
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Actual shares outstanding
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26,785
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26,522
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Total book value per share
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$ 17.07
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$15.65
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Tangible book value per share
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$ 13.88
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$ 12.63
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Closing price
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$ 27.06
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$ 23.80
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Market capitalization
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$ 724,802
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$ 631,224
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Trailing price/earnings ratio
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15.1
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13.1
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LTM Adjusted EBITDA (2)
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$94,017
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$ 93,092
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Adjusted market capitalization/LTM Adjusted EBITDA (3)
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7.4
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6.3
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(1) Based on last twelve months' net income. (2) Adjusted EBITDA is
defined as EBITDA (earnings before interest, taxes, depreciation and
amortization) adjusted for acquisition, rebranding, and restructuring
costs, and stock-based compensation. (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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2017
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2016
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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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Business Solutions (SMB) (1)
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$
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296,420
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15.6%
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$
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270,962
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16.1%
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Enterprise Solutions (Large Account) (1)
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302,077
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12.3
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269,482
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12.7
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Public Sector Solutions
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151,295
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10.8
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135,721
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11.9
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Total
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$
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749,792
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13.3%
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$
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676,165
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13.9%
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(1) The Q2 2016 results for the Business Solutions and Enterprise
Solutions have been updated to reflect our segment methodology used in
our 2016 10-K, which divides operating results for Softmart between our
SMB and Large Account segments. Our previously reported Q2 2016 results
reported all of the operating results of Softmart in our SMB segment.
Accordingly, in comparison to our previously reported Q2 2016 results,
the above Q2 2016 results reflect the reclassification of net sales of
$9,852 and gross profit of $1,979 from our SMB segment to our Large
Account segment attributable to Softmart.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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Three Months Ended June 30,
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2017
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2016
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(amounts in thousands, except per share data)
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Amount
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% of Net Sales
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Amount
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% of Net Sales
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Net sales
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$
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749,792
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100.0
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%
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$
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676,165
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100.0
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%
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Cost of sales
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650,122
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86.7
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582,291
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86.1
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Gross profit
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99,670
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13.3
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93,874
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13.9
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Restructuring and acquisition costs
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941
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0.1
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841
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0.1
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Selling, general and administrative expenses, other
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76,289
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10.2
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72,023
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10.7
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Income from operations
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22,440
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3.0
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21,010
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3.1
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Interest/other expense, net
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9
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-
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(12
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-
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Income tax provision
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(8,864
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(1.2
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(8,540
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(1.3
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Net income
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$
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13,585
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1.8
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%
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$
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12,458
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1.8
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%
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Earnings per common share:
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Basic
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$
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0.51
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$
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0.47
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Diluted
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$
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0.51
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$
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0.47
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Shares used in the computation of earnings per common share:
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Basic
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26,761
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26,501
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Diluted
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26,893
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26,691
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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Six Months Ended June 30,
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2017
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2016
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(amounts in thousands, except per share data)
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Amount
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% of Net Sales
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Amount
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% of Net Sales
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Net sales
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$
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1,420,386
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100.0
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%
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$
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1,248,559
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100.0
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%
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Cost of sales
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1,233,983
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86.9
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1,072,492
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85.9
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Gross profit
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186,403
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13.1
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176,067
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14.1
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Restructuring and acquisition costs
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941
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0.1
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841
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0.1
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Selling, general and administrative expenses, other
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151,570
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10.6
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139,052
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11.1
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Income from operations
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|
|
33,892
|
|
|
|
2.4
|
|
|
|
|
36,174
|
|
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest/other expense, net
|
|
|
|
28
|
|
|
|
-
|
|
|
|
|
(26
|
)
|
|
|
-
|
|
Income tax provision
|
|
|
|
(12,903
|
)
|
|
|
(0.9
|
)
|
|
|
|
(14,627
|
)
|
|
|
(1.2
|
)
|
Net income
|
|
|
$
|
21,017
|
|
|
|
1.5
|
%
|
|
|
$
|
21,521
|
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.79
|
|
|
|
|
|
|
$
|
0.81
|
|
|
|
|
Diluted
|
|
|
$
|
0.78
|
|
|
|
|
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the computation of earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
26,729
|
|
|
|
|
|
|
|
26,500
|
|
|
|
|
Diluted
|
|
|
|
26,879
|
|
|
|
|
|
|
|
26,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
2017
|
|
|
2016
|
|
|
% Change
|
|
|
2017
|
|
|
2016
|
|
|
% Change
|
Net income
|
|
|
$
|
13,585
|
|
|
$
|
12,458
|
|
|
|
|
|
$
|
47,607
|
|
|
$
|
48,135
|
|
|
|
Depreciation and amortization
|
|
|
|
2,855
|
|
|
|
2,388
|
|
|
|
|
|
|
11,359
|
|
|
|
9,394
|
|
|
|
Income tax expense
|
|
|
|
8,864
|
|
|
|
8,540
|
|
|
|
|
|
|
30,618
|
|
|
|
32,716
|
|
|
|
Interest/other expense, net
|
|
|
|
30
|
|
|
|
12
|
|
|
|
|
|
|
139
|
|
|
|
75
|
|
|
|
EBITDA
|
|
|
|
25,334
|
|
|
|
23,398
|
|
|
|
|
|
|
89,723
|
|
|
|
90,320
|
|
|
|
Restructuring and acquisition costs (2)
|
|
|
|
941
|
|
|
|
841
|
|
|
|
|
|
|
3,506
|
|
|
|
1,596
|
|
|
|
Stock-based compensation
|
|
|
|
201
|
|
|
|
356
|
|
|
|
|
|
|
788
|
|
|
|
1,176
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
26,476
|
|
|
$
|
24,595
|
|
|
8%
|
|
|
$
|
94,017
|
|
|
$
|
93,092
|
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) LTM: Last twelve months (2) Restructuring and acquisition costs
consist of severance, the relocation of our Softmart facility, and
certain non-recurring Softmart charges, and in 2016, included our
acquisition of Softmart, the rebranding of the Company, and duplicate
costs incurred with the move of our Chicago-area facility.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation from Net Income to Adjusted Net Income is
detailed below. Adjusted Net Income is defined as Net Income plus
the Acquisition and Restructuring Costs, net of tax. Adjusted Net
Income and Adjusted Earnings Per Share are considered non-GAAP
financial measures (see note above in Adjusted EBITDA for a
description of non-GAAP financial measures). The Company believes
that these non-GAAP disclosures provide helpful information with
respect to the Company's operating performance.
|
|
|
(amounts in thousands, except per share data)
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
% Change
|
|
|
2017
|
|
|
2016
|
|
|
% Change
|
Net income
|
|
|
$
|
13,585
|
|
|
$
|
12,458
|
|
|
|
|
|
$
|
21,017
|
|
|
$
|
21,521
|
|
|
|
Restructuring and acquisition costs, net of tax (1)
|
|
|
|
569
|
|
|
|
499
|
|
|
|
|
|
|
583
|
|
|
|
499
|
|
|
|
Adjusted Net Income
|
|
|
$
|
14,154
|
|
|
$
|
12,957
|
|
|
|
|
|
$
|
21,600
|
|
|
$
|
22,020
|
|
|
|
Diluted shares
|
|
|
|
26,893
|
|
|
|
26,691
|
|
|
|
|
|
|
26,879
|
|
|
|
26,681
|
|
|
|
Adjusted Diluted Earnings per Share
|
|
|
$
|
0.53
|
|
|
$
|
0.49
|
|
|
8%
|
|
|
$
|
0.80
|
|
|
$
|
0.83
|
|
|
-3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Restructuring and acquisition costs consist of severance, the
relocation of our Softmart facility, and certain non-recurring Softmart
charges, and in 2016, included our acquisition of Softmart, the
rebranding of the Company, and duplicate costs incurred with the move of
our Chicago-area facility.
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
2017
|
|
|
2016
|
(amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
28,131
|
|
|
|
$
|
49,180
|
|
Accounts receivable, net
|
|
|
|
426,439
|
|
|
|
|
411,883
|
|
Inventories
|
|
|
|
118,226
|
|
|
|
|
90,535
|
|
Prepaid expenses and other current assets
|
|
|
|
5,517
|
|
|
|
|
5,453
|
|
Income taxes receivable
|
|
|
|
4,604
|
|
|
|
|
2,120
|
|
Total current assets
|
|
|
|
582,917
|
|
|
|
|
559,171
|
|
Property and equipment, net
|
|
|
|
39,601
|
|
|
|
|
39,402
|
|
Goodwill
|
|
|
|
73,602
|
|
|
|
|
73,602
|
|
Other intangibles, net
|
|
|
|
11,759
|
|
|
|
|
12,586
|
|
Other assets
|
|
|
|
5,450
|
|
|
|
|
1,373
|
|
Total Assets
|
|
|
$
|
713,329
|
|
|
|
$
|
686,134
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
187,343
|
|
|
|
$
|
177,862
|
|
Accrued expenses and other liabilities
|
|
|
|
27,358
|
|
|
|
|
31,047
|
|
Accrued payroll
|
|
|
|
19,669
|
|
|
|
|
21,345
|
|
Total current liabilities
|
|
|
|
234,370
|
|
|
|
|
230,254
|
|
Deferred income taxes
|
|
|
|
19,766
|
|
|
|
|
19,602
|
|
Other liabilities
|
|
|
|
2,068
|
|
|
|
|
2,836
|
|
Total Liabilities
|
|
|
|
256,204
|
|
|
|
|
252,692
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
Common stock
|
|
|
|
286
|
|
|
|
|
285
|
|
Additional paid-in capital
|
|
|
|
113,746
|
|
|
|
|
111,081
|
|
Retained earnings
|
|
|
|
358,955
|
|
|
|
|
337,938
|
|
Treasury stock at cost
|
|
|
|
(15,862
|
)
|
|
|
|
(15,862
|
)
|
Total Stockholders' Equity
|
|
|
|
457,125
|
|
|
|
|
433,442
|
|
Total Liabilities and Stockholders' Equity
|
|
|
$
|
713,329
|
|
|
|
$
|
686,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Three Months Ended June 30,
|
|
|
2017
|
|
|
2016
|
(amounts in thousands)
|
|
|
|
|
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
21,017
|
|
|
|
$
|
21,521
|
|
Adjustments to reconcile net income to net cash (used for)
provided by operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
5,710
|
|
|
|
|
4,803
|
|
Provision for doubtful accounts
|
|
|
|
613
|
|
|
|
|
131
|
|
Stock-based compensation expense
|
|
|
|
385
|
|
|
|
|
645
|
|
Deferred income taxes
|
|
|
|
164
|
|
|
|
|
27
|
|
Excess tax benefit from exercise of equity awards
|
|
|
|
-
|
|
|
|
|
(32
|
)
|
|
|
|
|
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(15,169
|
)
|
|
|
|
(10,370
|
)
|
Inventories
|
|
|
|
(27,691
|
)
|
|
|
|
(9,558
|
)
|
Prepaid expenses and other current assets
|
|
|
|
(2,548
|
)
|
|
|
|
(1,192
|
)
|
Other non-current assets
|
|
|
|
(4,077
|
)
|
|
|
|
(26
|
)
|
Accounts payable
|
|
|
|
8,930
|
|
|
|
|
10,457
|
|
Accrued expenses and other liabilities
|
|
|
|
2,908
|
|
|
|
|
596
|
|
Net cash (used for) provided by operating activities
|
|
|
|
(9,758
|
)
|
|
|
|
17,002
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
Purchases of equipment
|
|
|
|
(4,531
|
)
|
|
|
|
(5,782
|
)
|
Purchase of Softmart
|
|
|
|
-
|
|
|
|
|
(33,983
|
)
|
Net cash used for investing activities
|
|
|
|
(4,531
|
)
|
|
|
|
(39,765
|
)
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
Dividend payment
|
|
|
|
(9,041
|
)
|
|
|
|
(10,591
|
)
|
Exercise of stock options
|
|
|
|
1,678
|
|
|
|
|
-
|
|
Issuance of stock under Employee Stock Purchase Plan
|
|
|
|
603
|
|
|
|
|
473
|
|
Excess tax benefit from exercise of equity awards
|
|
|
|
-
|
|
|
|
|
32
|
|
Payment of payroll taxes on stock-based compensation through shares
withheld
|
|
|
|
-
|
|
|
|
|
(40
|
)
|
Net cash used for financing activities
|
|
|
|
(6,760
|
)
|
|
|
|
(10,126
|
)
|
Decrease in cash and cash equivalents
|
|
|
|
(21,049
|
)
|
|
|
|
(32,889
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
|
49,180
|
|
|
|
|
80,188
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
28,131
|
|
|
|
$
|
47,299
|
|
|
|
|
|
|
|
|
Non-cash Investing Activities:
|
|
|
|
|
|
|
Accrued capital expenditures
|
|
|
$
|
662
|
|
|
|
$
|
338
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
|
Income taxes paid
|
|
|
$
|
15,705
|
|
|
|
$
|
15,658
|
|
|
|
|
|
|
|
|
cnxn-g
|
|
|
|
|
|
|
###
View source version on businesswire.com: http://www.businesswire.com/news/home/20170727006392/en/
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