[October 26, 2017] |
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Connection (CNXN) Reports Third 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 September 30,
2017. Net sales for the quarter ended September 30, 2017 increased by
2.9% to $729.2 million, compared to $708.5 million for the prior year
quarter. Our revenue growth in the quarter ended September 30, 2017 was
affected by Hurricanes Harvey and Irma. We experienced delays in
shipments from key suppliers and affected customers were unable to
receive products which negatively impacted revenue by approximately 3%.
Net income for the quarter ended September 30, 2017 decreased by 3.5% to
$13.1 million, or $0.49 per diluted share, compared to net income of
$13.6 million, or $0.51 per diluted share for the prior year quarter.
Net sales for the nine months ended September 30, 2017 were $2,149.6
million, an increase of $192.6 million or 9.8%, compared to $1,957.0
million for the nine months ended September 30, 2016. Net income for the
nine months ended September 30, 2017 was $34.1 million, or $1.27 per
diluted share, compared to net income of $35.1 million, or $1.32 per
diluted share, for the nine months ended September 30, 2016. 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
$92.4 million for the twelve months ended September 30, 2017, compared
to $94.8 million for the twelve months ended September 30, 2016.
Quarterly Performance by Segment:
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Net sales for the Business Solutions (SMB) segment increased by 3.1%
to $290.6 million in the third quarter of 2017, compared to the prior
year quarter. Desktop and mobility products were strong in this
segment with an increase of 29% and 11%, respectively. Gross margin
decreased by 55 basis points due to product mix and changes in certain
vendor channel programs.
-
Net sales for the Enterprise Solutions (Large Account) segment
increased by 5.4% to $268.0 million in the third quarter of 2017,
compared to the prior year quarter. Server, storage, software, and
mobility had solid growth during this quarter at 13%, 7%, 6%, and 6%,
respectively. Gross margin decreased by 71 basis points due to a
competitive sales environment.
-
Net sales to the Public Sector Solutions segment decreased by 1.0% to
$170.6 million in the third quarter of 2017, compared to the prior
year quarter. Sales to state and local government and educational
institutions decreased by 2.4%, compared to the prior year quarter,
while sales to the federal government increased by 2.8%. Gross margin
decreased by 18 basis points primarily due to changes in certain
vendor channel programs.
Quarterly Sales by Product Mix:
-
Software sales, the Company's largest product category, increased by
14% year over year and accounted for 24% of net sales in the third
quarter of 2017 compared to 21% 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 slightly year over year and
accounted for 23% of net sales in the third quarter of 2017 compared
to 24% 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 8% year over year and accounted for 10% of
net sales in the third quarter of 2017 compared to 9% of net sales in
the prior year quarter. The Business Solutions segment experienced
strong year-over-year growth in desktop sales.
Overall gross profit decreased by $0.8 million, or 0.8%, in the third
quarter of 2017, compared to the prior year quarter. Consolidated gross
margin, as a percentage of net sales, decreased to 13.2% in the third
quarter of 2017, compared to 13.7% for the prior year quarter. The
decline in gross margin was attributed to a competitive demand
environment and changes in certain vendor channel programs.
Selling, general and administrative dollars excluding special charges
increased in the third quarter of 2017 to $74.4 million from $73.5
million in the prior year 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 $62.3 million at September 30, 2017, compared to $49.2
million at December 31, 2016. Days sales outstanding were 43 days at
September 30, 2017, and inventory turns were 22 turns in the third
quarter of 2017.
"There were bright spots in the quarter, and we are encouraged by the
growth in the vertical markets; manufacturing, retail, and finance. In
addition, we saw strong growth in software and workforce productivity,"
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 long-term 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 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, 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. 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 September 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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729,230
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$
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708,485
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3
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%
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Diluted earnings per share
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$
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0.49
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$
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0.51
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(4
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%)
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Adjusted diluted earnings per share
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$
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0.49
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$
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0.53
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(8
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%)
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Gross margin
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13.2
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%
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13.7
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%
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Operating margin
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3.0
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%
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3.2
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%
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Return on equity (1)
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10.6
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%
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12.1
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%
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Inventory turns
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22
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23
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Days sales outstanding
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43
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42
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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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24
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%
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21
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%
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Notebooks/Mobility
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23
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24
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Servers/Storage
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8
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9
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Net/Com Products
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7
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8
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Other Hardware/Services
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38
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38
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Total Net Sales
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100
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%
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100
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%
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Stock Performance Indicators:
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Actual shares outstanding
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26,816
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26,559
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Total book value per share
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$
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17.52
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$
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16.14
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Tangible book value per share
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$
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14.35
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$
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13.15
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Closing price
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$
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28.19
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$
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26.42
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Market capitalization
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$
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755,943
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$
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701,689
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Trailing price/earnings ratio
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15.9
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14.4
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LTM Adjusted EBITDA (2)
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$
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92,359
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$
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94,819
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Adjusted market capitalization/LTM Adjusted EBITDA (3)
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7.5
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6.7
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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 September 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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290,569
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14.9
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%
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$
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281,915
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15.5
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%
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Enterprise Solutions (Large Account) (1)
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268,022
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12.7
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254,273
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13.4
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Public Sector Solutions
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170,639
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11.0
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172,297
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11.1
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Total
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$
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729,230
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13.2
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%
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$
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708,485
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13.7
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%
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(1) The Q3 2016 results for Business and Enterprise Solutions have been
updated to reflect segment methodology used in our 2016 Annual Report on
Form 10-K, which allocated the operating results for Softmart between
these two segments. In the previously reported Q3 '16 results, the
operating results of Softmart was reported solely in the Business
Solutions segment. Accordingly, in comparison to our previously reported
Q3 '16 results, the above Q3 '16 results reflect the reclassification of
net sales of $20,495 and gross profit of $2,940 from our SMB segment to
our Large Account segment attributable to Softmart.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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Three Months Ended September 30,
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2017
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2016
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(amounts in thousands, except per share data)
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Amount
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% of Net Sales
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Amount
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% of Net Sales
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Net sales
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$
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729,230
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100.0
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%
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$
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708,485
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100.0
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%
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Cost of sales
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633,087
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86.8
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611,518
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86.3
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Gross profit
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96,143
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13.2
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96,967
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13.7
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Restructuring and acquisition costs
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-
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-
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1,054
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0.1
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Selling, general and administrative expenses, other
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74,404
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10.2
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73,468
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10.4
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Income from operations
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21,739
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3.0
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22,445
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3.2
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Interest/other expense, net
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(8
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-
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(27
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-
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Income tax provision
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(8,614
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(1.2
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(8,825
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(1.3
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Net income
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$
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13,117
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1.8
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%
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$
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13,593
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1.9
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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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0.49
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$
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0.51
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Diluted
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$
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0.49
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$
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0.51
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Shares used in the computation of earnings per common share:
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Basic
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26,802
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26,542
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Diluted
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26,899
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26,736
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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Nine Months Ended September 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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2,149,616
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100.0
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%
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$
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1,957,044
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100.0
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%
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Cost of sales
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1,867,070
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86.9
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1,684,010
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86.0
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Gross profit
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282,546
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13.1
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273,034
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14.0
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Restructuring and acquisition costs
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941
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-
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1,895
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0.1
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Selling, general and administrative expenses, other
|
|
|
|
|
225,974
|
|
|
|
10.5
|
|
|
|
|
212,520
|
|
|
|
10.9
|
|
Income from operations
|
|
|
|
|
55,631
|
|
|
|
2.6
|
|
|
|
|
58,619
|
|
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest/other expense, net
|
|
|
|
|
20
|
|
|
|
-
|
|
|
|
|
(53
|
)
|
|
|
-
|
|
Income tax provision
|
|
|
|
|
(21,517
|
)
|
|
|
(1.0
|
)
|
|
|
|
(23,452
|
)
|
|
|
(1.2
|
)
|
Net income
|
|
|
|
$
|
34,134
|
|
|
|
1.6
|
%
|
|
|
$
|
35,114
|
|
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
1.28
|
|
|
|
|
|
|
$
|
1.32
|
|
|
|
|
Diluted
|
|
|
|
$
|
1.27
|
|
|
|
|
|
|
$
|
1.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the computation of earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
26,754
|
|
|
|
|
|
|
|
26,514
|
|
|
|
|
Diluted
|
|
|
|
|
26,886
|
|
|
|
|
|
|
|
26,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30,
|
|
|
LTM Ended September 30, (1)
|
|
|
|
2017
|
|
|
2016
|
|
|
% Change
|
|
|
2017
|
|
|
2016
|
|
|
% Change
|
Net income
|
|
|
$
|
13,115
|
|
|
$
|
13,593
|
|
|
|
|
|
|
$
|
47,131
|
|
|
$
|
48,727
|
|
|
|
Depreciation and amortization
|
|
|
|
2,935
|
|
|
|
2,701
|
|
|
|
|
|
|
|
11,593
|
|
|
|
9,869
|
|
|
|
Income tax expense
|
|
|
|
8,614
|
|
|
|
8,825
|
|
|
|
|
|
|
|
30,407
|
|
|
|
32,710
|
|
|
|
Interest/other expense, net
|
|
|
|
31
|
|
|
|
27
|
|
|
|
|
|
|
|
142
|
|
|
|
73
|
|
|
|
EBITDA
|
|
|
|
24,695
|
|
|
|
25,146
|
|
|
|
|
|
|
|
89,273
|
|
|
|
91,379
|
|
|
|
Restructuring and acquisition costs (2)
|
|
|
|
-
|
|
|
|
1,054
|
|
|
|
|
|
|
|
2,452
|
|
|
|
2,191
|
|
|
|
Stock-based compensation
|
|
|
|
176
|
|
|
|
330
|
|
|
|
|
|
|
|
634
|
|
|
|
1,249
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
24,871
|
|
|
$
|
26,530
|
|
|
-6
|
%
|
|
|
|
$
|
92,359
|
|
|
$
|
94,819
|
|
|
-3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 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 September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
% Change
|
|
2017
|
|
|
2016
|
|
|
% Change
|
Net income
|
|
|
$
|
13,117
|
|
|
$
|
13,593
|
|
|
|
|
|
$
|
34,134
|
|
|
$
|
35,114
|
|
|
|
Restructuring and acquisition costs, net of tax (1)
|
|
|
|
-
|
|
|
|
639
|
|
|
|
|
|
|
577
|
|
|
|
1,137
|
|
|
|
Adjusted Net Income
|
|
|
$
|
13,117
|
|
|
$
|
14,232
|
|
|
|
|
|
$
|
34,711
|
|
|
$
|
36,251
|
|
|
|
Diluted shares
|
|
|
|
26,899
|
|
|
|
26,736
|
|
|
|
|
|
|
26,886
|
|
|
|
26,699
|
|
|
|
Adjusted Diluted Earnings per Share
|
|
|
$
|
0.49
|
|
|
$
|
0.53
|
|
|
-8
|
%
|
|
|
$
|
1.29
|
|
|
$
|
1.36
|
|
|
-5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
December 31,
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
2017
|
|
|
|
2016
|
|
(amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
$
|
62,338
|
|
|
$
|
49,180
|
|
Accounts receivable, net
|
|
|
|
|
|
|
|
382,666
|
|
|
|
411,883
|
|
Inventories
|
|
|
|
|
|
|
|
106,724
|
|
|
|
90,535
|
|
Prepaid expenses and other current assets
|
|
|
|
|
|
|
|
5,185
|
|
|
|
5,453
|
|
Income taxes receivable
|
|
|
|
|
|
|
|
4,579
|
|
|
|
2,120
|
|
Total current assets
|
|
|
|
|
|
|
|
561,492
|
|
|
|
559,171
|
|
Property and equipment, net
|
|
|
|
|
|
|
|
40,077
|
|
|
|
39,402
|
|
Goodwill
|
|
|
|
|
|
|
|
73,602
|
|
|
|
73,602
|
|
Other intangibles, net
|
|
|
|
|
|
|
|
11,393
|
|
|
|
12,586
|
|
Other assets
|
|
|
|
|
|
|
|
5,318
|
|
|
|
1,373
|
|
Total Assets
|
|
|
|
|
|
|
$
|
691,882
|
|
|
$
|
686,134
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
|
|
$
|
164,883
|
|
|
$
|
177,862
|
|
Accrued expenses and other liabilities
|
|
|
|
|
|
|
|
18,294
|
|
|
|
31,047
|
|
Accrued payroll
|
|
|
|
|
|
|
|
16,938
|
|
|
|
21,345
|
|
Total current liabilities
|
|
|
|
|
|
|
|
200,115
|
|
|
|
230,254
|
|
Deferred income taxes
|
|
|
|
|
|
|
|
19,766
|
|
|
|
19,602
|
|
Other liabilities
|
|
|
|
|
|
|
|
2,083
|
|
|
|
2,836
|
|
Total Liabilities
|
|
|
|
|
|
|
|
221,964
|
|
|
|
252,692
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
|
|
|
287
|
|
|
|
285
|
|
Additional paid-in capital
|
|
|
|
|
|
|
|
113,421
|
|
|
|
111,081
|
|
Retained earnings
|
|
|
|
|
|
|
|
372,072
|
|
|
|
337,938
|
|
Treasury stock at cost
|
|
|
|
|
|
|
|
(15,862
|
)
|
|
|
(15,862
|
)
|
Total Stockholders' Equity
|
|
|
|
|
|
|
|
469,918
|
|
|
|
433,442
|
|
Total Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
$
|
691,882
|
|
|
$
|
686,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
(amounts in thousands)
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
34,134
|
|
|
$
|
35,114
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
8,645
|
|
|
|
7,504
|
|
Provision for doubtful accounts
|
|
|
|
|
|
1,116
|
|
|
|
239
|
|
Stock-based compensation expense
|
|
|
|
|
|
560
|
|
|
|
975
|
|
Deferred income taxes
|
|
|
|
|
|
164
|
|
|
|
165
|
|
Excess tax benefit from exercise of equity awards
|
|
|
|
|
|
-
|
|
|
|
(385
|
)
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
|
28,101
|
|
|
|
19,530
|
|
Inventories
|
|
|
|
|
|
(16,189
|
)
|
|
|
954
|
|
Prepaid expenses and other current assets
|
|
|
|
|
|
(2,191
|
)
|
|
|
506
|
|
Other non-current assets
|
|
|
|
|
|
(3,945
|
)
|
|
|
(141
|
)
|
Accounts payable
|
|
|
|
|
|
(13,162
|
)
|
|
|
(20,922
|
)
|
Accrued expenses and other liabilities
|
|
|
|
|
|
(8,872
|
)
|
|
|
(3,757
|
)
|
Net cash provided by operating activities
|
|
|
|
|
|
28,361
|
|
|
|
39,782
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
Purchases of equipment
|
|
|
|
|
|
(7,944
|
)
|
|
|
(8,746
|
)
|
Purchase of Softmart
|
|
|
|
|
|
-
|
|
|
|
(33,983
|
)
|
Net cash used for investing activities
|
|
|
|
|
|
(7,944
|
)
|
|
|
(42,729
|
)
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
Dividend payment
|
|
|
|
|
|
(9,041
|
)
|
|
|
(10,591
|
)
|
Exercise of stock options
|
|
|
|
|
|
1,679
|
|
|
|
-
|
|
Issuance of stock under Employee Stock Purchase Plan
|
|
|
|
|
|
603
|
|
|
|
473
|
|
Excess tax benefit from exercise of equity awards
|
|
|
|
|
|
-
|
|
|
|
385
|
|
Payment of payroll taxes on stock-based compensation through shares
withheld
|
|
|
|
|
|
(500
|
)
|
|
|
(625
|
)
|
Net cash used for financing activities
|
|
|
|
|
|
(7,259
|
)
|
|
|
(10,358
|
)
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
|
|
13,158
|
|
|
|
(13,305
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
|
49,180
|
|
|
|
80,188
|
|
Cash and cash equivalents, end of period
|
|
|
|
|
$
|
62,338
|
|
|
$
|
66,883
|
|
|
|
|
|
|
|
|
|
Non-cash Investing Activities:
|
|
|
|
|
|
|
|
Accrued capital expenditures
|
|
|
|
|
$
|
294
|
|
|
$
|
160
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
|
|
Income taxes paid
|
|
|
|
|
$
|
24,293
|
|
|
$
|
23,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
cnxn-g
View source version on businesswire.com: http://www.businesswire.com/news/home/20171026006329/en/
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