Gross Profit Increased 5% to $85.1
millionGross Profit Margin Increased 170 Basis Points to an
all-time record 16.7%Operating Profit Margin Increased 180
Basis Points to 2.1%Non-GAAP EBITDA Margin Increased 120
Basis Points to 3.1%Diluted EPS Increased $0.53 to
$0.47Non-GAAP Adjusted EPS Increased 126% to $0.61
PCM, Inc. (NASDAQ: PCMI), a leading technology solutions
provider, today reported financial results for the third quarter of
2018.
Third Quarter Consolidated Financial
Summary
Three Months
Ended September 30,
(in millions, except per share data)
2018
2017
%
Change
Net Sales $ 510.6 $ 543.3 (6) Gross Profit 85.1 81.5 5 Gross Profit
Margin 16.7% 15.0% 170bp SG&A Expenses $ 74.6 $ 80.0 (7)
Operating Profit 10.6 1.5 601 Net Income (Loss) 6.0 (0.8) 878
Non-GAAP Net Income 7.8 3.5 123 EBITDA 13.9 5.2 167 Adjusted
EBITDA 15.8 10.3 53 Diluted Earnings (Loss) Per Share 0.47
(0.06) NM Adjusted Diluted Earnings Per Share 0.61 0.27 126
Frank Khulusi, Chairman and CEO of PCM, Inc., stated, “Q3 was
another fantastic quarter for PCM. I am very pleased with our
continued success in executing in our strategic areas of focus and
investment. Much like we saw in the second quarter, we increased
our focus on higher margin sales such as managed services, advanced
technologies, cloud and security solutions, and again walked away
from some non-strategic low-margin volume business we identified as
unprofitable. As a result, we achieved our highest ever gross
margin of 16.7%, 170 basis points higher than the same quarter last
year, and 20 basis points higher than our previous record in Q2 of
this year. Our gross profit dollars, the primary volume-growth
metric we are focused on, increased 5%, while net sales, a GAAP
measure which in its calculation nets down certain hardware and
software maintenance and subscription sales, was impacted by a
higher than anticipated additional $29 million in sales reported on
a net basis. Gross billings, a metric which neutralizes the effects
of the net-downs, declined by only 1%, despite us walking away from
the non-strategic low-margin volume business I mentioned earlier,
as well as integrated circuit supply shortages from a major chip
manufacturer due to their high demand, which shortages affected the
supply of certain notebooks and desktops. We also reduced our
consolidated SG&A by 7%, which combined with the 5% increase in
gross profit, fueled a 601% increase in GAAP operating profit and a
53% increase in adjusted EBITDA. These improvements resulted in
GAAP diluted EPS of $0.47 and non-GAAP adjusted EPS of $0.61. Along
with our increased profitability, we continued to drive operating
cash flow, bucking our normal seasonal trend, by delivering an
additional $15.5 million in cash from operations in the third
quarter. This brought our total cash provided by operations for the
year to $87.9 million, which helped reduce our net debt by $81.3
million since the end of 2017.”
Commenting on PCM’s outlook, Mr. Khulusi concluded, “Given our
continued strong performance and solid outlook for the fourth
quarter, we are increasing our 2018 guidance for non-GAAP earnings
per share to a range of $2.22 to $2.32 and increasing our gross
margin guidance for the year to a range of 16.15% to 16.35%,
assuming Q4 net revenue roughly in line with Q3. This reflects our
expected focus on gross profit dollar growth while continuing to
shed certain non-strategic low-margin volume business during the
fourth quarter. As we cycle out of non-strategic lower-margin
volume business while we continue to deliver growth in our areas of
strategic focus, we should in the longer-term be able to also drive
meaningful consolidated top-line growth. We strongly feel that the
future for PCM is very bright, and we’re better positioned than
ever. I am extremely grateful to our PCM team who through their
hard work, dedication and unwavering commitment to our vision are
making our success possible.
New Accounting Standard
In May 2014, the FASB issued ASU 2014-09, “Revenue from
Contracts with Customers (Topic 606),” which, along with amendments
issued in 2015 and 2016, replaced most existing revenue recognition
guidance under GAAP and eliminate industry specific guidance. The
core principle of the new guidance is that an entity should
recognize revenue for the transfer of goods and services equal to
an amount it expects to be entitled to receive for those goods and
services. We adopted the guidance on January 1, 2018 using the full
retrospective method, which resulted in adjustments to our
consolidated statement of operations for the three and nine months
ended September 30, 2017, and our consolidated statement of cash
flows for the nine months ended September 30, 2017 presented
herein.
Third Quarter Segment Sales
Summary
Three Months Ended September 30,
2018 2017 Net Sales
Percentage ofTotal Net Sales Net Sales
Percentage ofTotal Net Sales Dollar Change
PercentChange Commercial $ 381,564 75 % $ 423,479 78
% $ (41,915 ) (10 )% Public Sector 68,278 13 79,110 15 (10,832 )
(14 ) Canada 43,861 9 38,086 7 5,775 15 United Kingdom 17,032 3
2,737 1 14,295 522 Corporate & Other (155 ) — (137 ) — (18 )
(13 ) Consolidated $ 510,580 100 % $ 543,275 100 %(1) $ (32,695 )
(6 )
(1) Does not foot due to rounding.
Results of Operations
Net Sales
Consolidated net sales were $510.6 million in the three months
ended September 30, 2018 compared to $543.3 million in the three
months ended September 30, 2017, a decrease of $32.7 million or 6%.
Consolidated sales of services were $44.7 million in the three
months ended September 30, 2018 compared to $40.2 million in the
three months ended September 30, 2017, an increase of $4.5 million,
or 11%, and represented 9% and 7% of consolidated net sales in the
three months ended September 30, 2018 and 2017, respectively.
Commercial net sales were $381.6 million in the three months
ended September 30, 2018 compared to $423.5 million in the three
months ended September 30, 2017, a decrease of $41.9 million or
10%. Sales of services in our Commercial segment were $30.5 million
in the three months ended September 30, 2018 compared to $29.7
million in the three months ended September 30, 2017, an increase
of $0.8 million or 3%, and represented 8% and 7% of Commercial net
sales in the three months ended September 30, 2018 and 2017,
respectively. The decrease in our Commercial segment net sales in
the three months ended September 30, 2018 was primarily due to a
$17.1 million increase in sales reported on a net basis, the impact
of a couple large, lower-margin enterprise customer projects in the
prior year that did not reoccur, and several specific customer
deals we elected not to pursue based on our focus on profitable
growth. In addition, we believe we were negatively impacted by
integrated circuit supply shortages from a major chip manufacturer
due to their high demand, which shortages affected finished goods
supply of certain notebooks and desktops.
Public Sector net sales were $68.3 million in the three months
ended September 30, 2018 compared to $79.1 million in the three
months ended September 30, 2017, a decrease of $10.8 million or
14%, primarily due to a 43% decrease in our federal sales which
were negatively impacted in the quarter by the loss of a single
Federal contract, which we were unwilling to rebid at a loss as we
stated over the last few quarters and a large rollout to a
different Federal agency that did not reoccur. Sales of services in
our Public Sector segment were $5.3 million in the three months
ended September 30, 2018 compared to $2.7 million in the three
months ended September 30, 2017, an increase of $2.6 million or
97%, and represented 8% and 3% of Public Sector net sales in the
three months ended September 30, 2018 and 2017, respectively. The
decrease in Public Sector net sales was also impacted by an $11.5
million increase in sales reported on a net basis, partially offset
by an increase in sales account executive productivity in our state
and local government and educational institution (“SLED”)
business.
Canada net sales were $43.9 million in the three months ended
September 30, 2018 compared to $38.1 million in the three months
ended September 30, 2017, an increase of $5.8 million, or 15%.
Sales of services in our Canada segment remained relatively flat at
$7.8 million in each of the three months ended September 30, 2018
and 2017, and represented 18% and 21% of Canada net sales in the
three months ended September 30, 2018 and 2017, respectively.
Our United Kingdom segment, which officially launched in the
second quarter of 2017, generated net sales of $17.0 million in the
three months ended September 30, 2018 compared to $2.7 million in
the three months ended September 30, 2017, an increase of $14.3
million.
Gross Profit and Gross Profit Margin
Consolidated gross profit was $85.1 million in the three months
ended September 30, 2018 compared to $81.5 million in the three
months ended September 30, 2017, an increase of $3.6 million, or
5%. Consolidated gross profit margin increased to 16.7% in the
three months ended September 30, 2018 from 15.0% in the same period
last year. The increase in consolidated gross profit was primarily
due to a shift in mix toward higher margin solutions and service
sales, partially offset by a decrease in vendor consideration. The
increase in gross profit margin was primarily due to the increase
in sales recorded on a net basis and the increased gross profit
margin was associated with the shift in mix toward higher margin
solutions and services, partially offset by a decrease in vendor
consideration as a percentage of net sales.
Selling, General & Administrative Expenses
Consolidated SG&A expenses were $74.6 million in the three
months ended September 30, 2018 compared to $80.0 million in the
three months ended September 30, 2017, a decrease of $5.4 million
or 7%. Consolidated SG&A expenses as a percentage of net sales
decreased to 14.6% in the three months ended September 30, 2018
from 14.7% in the same period last year. The decrease in
consolidated SG&A expenses was primarily due to a decrease in
personnel costs of $2.4 million, which includes a $1.0 million
decrease in severance costs, a decrease in restructuring charges of
$2.0 million, which includes $0.9 million of prior year duplicative
expenses associated with our terminated back office support
services provided by our former service provider in Pakistan, a
$0.7 million decrease in M&A and related litigation costs and a
$0.6 million decrease in outside service costs.
Operating Profit
Consolidated operating profit increased by $9.1 million to $10.6
million compared to $1.5 million in the prior year, due to the
increase in gross profit and reduction in SG&A expenses as
discussed above.
Income Taxes
Income tax expense was $2.4 million in the three months ended
September 30, 2018 compared to $0.5 million in the three months
ended September 30, 2017. Our effective tax rate was 28.5% compared
to 161.8% in the prior year. Income taxes in the three months ended
September 30, 2018 reflect excess tax benefits associated with
stock-based compensation, offset by $0.3 million associated with
adjustments to 2017 tax year provisional estimates previously
recorded related to the Tax Cuts and Jobs Act of 2017. Income taxes
in the three months ended September 30, 2017 were impacted by the
increased impact of discrete items and increased forecasted losses
of captive foreign subsidiaries on the effective tax rate due to
lower levels of pretax book income during the quarter.
Net Income (Loss)
Net income for the three months ended September 30, 2018 was
$6.0 million compared to a net loss of $0.8 million for the three
months ended September 30, 2017. Diluted earnings per share was
$0.47 compared to a loss per share of $0.06 in the same period of
the prior year.
Adjusted EPS
Non-GAAP EPS (adjusted EPS) was $0.61 for the three months ended
September 30, 2018 compared to $0.27 for the three months ended
September 30, 2017.
Consolidated Balance Sheet and Cash Flow
We had cash and cash equivalents of $8.5 million at September
30, 2018 compared to $9.1 million at December 31, 2017. We had
$87.9 million of net cash provided by operating activities during
the nine months ended September 30, 2018 compared to $29.4 million
of net cash used in operating activities in the nine months ended
September 30, 2017.
Accounts receivable at September 30, 2018 was $451.5 million, an
increase of $11.8 million from December 31, 2017. Inventory at
September 30, 2018 was $64.0 million, a decrease of $39.5 million
from December 31, 2017, primarily related to the sell through
of certain purchases made in the fourth quarter of 2017. Accounts
payable at September 30, 2018 was $312.1 million, an increase of
$22.9 million from December 31, 2017.
Cash used in investing activities during the nine months ended
September 30, 2018 totaled $3.9 million compared to $15.8 million
during the nine months ended September 30, 2017. Investing
activities for the nine months ended September 30, 2018 were
primarily related to expenditures relating to investments in our IT
infrastructure. Investing activities for the nine months ended
September 30, 2017 were primarily related to $14.1 million of
capital expenditures, including a purchase of real property in
Woodridge, Illinois for $3.1 million, expenditures relating to
investments in our IT infrastructure and leasehold improvements and
the acquisition of Stack Technology in the UK for $1.7 million.
Within cash flows from financing activities, we paid earnout
payments totaling $2.2 million in the nine months ended September
30, 2018, compared to $11.1 million in the nine months ended
September 30, 2017. The earnout period ended as of March 31,
2018.
Our outstanding borrowings under our line of credit was $134.5
million at September 30, 2018, a $79.3 million decline compared to
$213.8 million at December 31, 2017 as a result of the cash
flow generated from our earnings combined with our focus on working
capital management during the nine months ended September 30,
2018.
Sales Mix
The following table sets forth our gross billed sales (net of
returns) by major categories as a percentage of total gross billed
sales (net of returns) for the periods presented, determined based
upon our internal product code classifications:
Three Months EndedSeptember 30,
Y/YSales
2018
2017
Growth
Software (1) 30 % 29 % 2 % Notebooks and tablets 16 19 (12 )
Delivered services 9 7 11 Networking 8 6 25 Manufacturer service
and warranties (1) 7 6 8 Desktops 7 8 (10 ) Display 5 4 7
Accessories 3 3 (4 ) Storage 3 3
(9
)
Input Devices 2 2 15 Servers 2 3 (30 ) Printers 2 3 (31 ) Other (2)
6 7 (3 ) Total 100 % 100 % (1) Software, including software
licenses, maintenance and enterprise agreements, and manufacturer
service and warranties are shown, for purposes of this table, on a
gross sales billed to customers basis, net of returns and do not
reflect the net down impact related to revenue recognition for
sales of such products. (2) Other includes power, supplies,
consumer electronics, memory, iPod/MP3 and miscellaneous other
items.
Non-GAAP Measures
We are presenting earnings before interest, taxes, depreciation
and amortization expenses (EBITDA), adjusted EBITDA and non-GAAP
EPS (adjusted EPS), which are financial measures that are not
determined in accordance with accounting principles generally
accepted in the United States of America, or GAAP. Adjusted EBITDA
and adjusted EPS remove the effect of severance and restructuring
related expenses related to our cost reduction initiatives and
stock-based compensation, as well as uncommon, non-recurring or
special items. Adjusted EPS also removes the effect of amortization
of intangibles acquired in acquisitions. Depreciation and
amortization expenses primarily represent an allocation to current
expense of the cost of historical capital expenditures and for
acquired intangible assets resulting from prior business
acquisitions. EBITDA, adjusted EBITDA and adjusted EPS should be
used in conjunction with other GAAP financial measures and are not
presented as an alternative measure of operating results, as
determined in accordance with GAAP. We believe that these non-GAAP
financial measures allow a more meaningful comparison of our
operating performance trends to both management and investors that
is more indicative of our consolidated operating results across
reporting periods. We believe that adjusted EBITDA and adjusted EPS
provide a better understanding of our company’s operating
performance and cash flows. A reconciliation of the non-GAAP
consolidated financial measures is included in a table below.
Conference Call
Management will hold a conference call, which will be webcast,
on October 24, 2018 at 4:30 p.m. Eastern Time (1:30 p.m.
Pacific Time) to discuss its third quarter results. To listen to
PCM management’s discussion of its third quarter results live,
access http://investor.pcm.com/events-presentations.
The archived webcast can be accessed at http://investor.pcm.com
under “Events & Presentations.” A replay of the conference
call by phone will be available from 7:30 p.m. ET on October
24, 2018 until October 31, 2018 and can be accessed by calling
(855) 859-2056 (International (404) 537-3406) and inputting code
7192559.
About PCM, Inc.
PCM, Inc., through its wholly-owned subsidiaries, is a leading
multi-vendor provider of technology solutions, including hardware,
software and services to small, medium and enterprise businesses,
state, local and federal governments and educational institutions
across the United States, Canada and the UK. We generated net sales
of approximately $2.2 billion in the twelve months ended September
30, 2018. For more information, please visit investor.pcm.com or
call (310) 354-5600.
Forward-looking
Statements
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Such forward-looking statements include
statements regarding our expectations, hopes or intentions
regarding the future, including but not limited to, statements
related to expectations of reaping the benefits of our investments
in security, cloud, hybrid data center, managed services and
advanced technologies; expectations of financial performance,
opportunities, expectations or intentions for top or bottom line
operating results; expectations for non-GAAP earnings per share;
and expectations for gross margins. Forward-looking statements
involve certain risks and uncertainties, and actual results may
differ materially from those discussed in any such statement.
Factors that could cause our actual results to differ materially
include without limitation risks and uncertainties related to the
following: our ability to attract and retain key employees; our
ability to receive expected returns on changes in our sales and
services organizations or strategic investments, including without
limit, investments in security, cloud, hybrid data center, advanced
technology solutions and services, our call centers and our
international expansion; risks associated with our ability to
integrate our acquisitions; availability of key vendor incentives
and other vendor assistance; our IT infrastructure; risks
associated with cyber and data security including compliance with
related regulatory requirements such as the European Union General
Data Protection Regulation; the relationship between the number of
our account executives and productivity; decreased sales related to
any of our segments, including but not limited to, potential
decreases in sales resulting from the loss of or a reduction in
purchases from significant customers; the effect of any failure by
us to continue to successfully transition outsourced BPO services
historically provided to our En Pointe business under a service
agreement we acquired in connection with our En Pointe acquisition;
possible discontinuance of IT licenses or authorizations used to
operate our business which are provided by vendors; increased
competition, including, but not limited to, increased competition
from direct sales by some of our largest vendors and increased
pricing pressures which affect our pricing strategy in any given
period; the misappropriation or unauthorized use of our proprietary
or confidential information by competitors or others; our loss of
personnel to competitors; the effect of our pricing strategy on our
operating results; potential decreases in sales related to changes
in our vendors products; the potential lack of availability of
government funding applicable to our Public Sector business; the
impact of seasonality on our sales; availability of products from
third party suppliers at reasonable prices; business and other
conditions in Canada, the UK and Europe and the Asia Pacific
region and the related effects on our Canadian, UK and our
Asia-Pacific operations, including without limitation our executive
management’s lack of experience operating in some of these markets;
increased expenses, including, but not limited to, interest
expense, foreign currency transaction gains/losses and other
expenses which may increase as a result of future inflationary
pressures; our advertising, marketing and promotional efforts may
be costly and may not achieve desired results; shifts in
market demand or price erosion of owned inventory; other risks
related to foreign currency fluctuations; warranties and
indemnities we may be required to provide to third parties through
our commercial contracts; litigation by or against us, including
without limitation the litigation and other actions related to our
En Pointe acquisition; and availability of financing, including
availability under our existing credit lines. Additional factors
that could cause our actual results to differ are discussed under
the heading “Risk Factors” in Item 1A, Part II of our
Form 10-Q for the period ended June 30, 2018, on file with the
Securities and Exchange Commission, and in our other reports filed
from time to time with the SEC. All forward-looking statements in
this document are made as of the date hereof, based on information
available to us as of the date hereof, and we assume no obligation
to update any forward-looking statements.
PCM, INC. CONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited, in thousands, except per share
amounts) Three Months EndedSeptember
30, Nine Months EndedSeptember 30, 2018
2017 2018 2017 Net sales $
510,580 $ 543,275 $ 1,599,842 $ 1,622,117 Cost of goods sold
425,446 461,818 1,340,695 1,377,017 Gross profit 85,134 81,457
259,147 245,100 Selling, general and administrative expenses 74,580
79,951 229,156 233,479 Operating profit 10,554 1,506 29,991 11,621
Interest expense, net 2,273 1,950 7,050 5,589 Equity income from
unconsolidated affiliate 73 151 377 424 Income (loss) before income
taxes 8,354 (293 ) 23,318 6,456 Income tax expense 2,383 474 6,653
685 Net income (loss) $ 5,971 $ (767 ) $ 16,665 $ 5,771
Basic and Diluted Earnings (Loss) Per Common Share Basic $
0.50 $ (0.06 ) $ 1.40 $ 0.46 Diluted 0.47 (0.06 ) 1.35 0.43
Weighted average number of common shares outstanding: Basic 12,050
12,248 11,936 12,418 Diluted 12,795 12,248 12,343 13,325
PCM, INC. RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES (unaudited, in thousands, except per share
amounts) Three Months Ended Nine Months
Ended September 30, September 30, 2018
2017 2018 2017 EBITDA(a)
Consolidated operating profit $ 10,554 $ 1,506 $ 29,991 $ 11,621
Add: Consolidated depreciation expense
2,575 2,531 7,906 7,389 Consolidated amortization expense 747 1,038
2,329 3,093
Equity income from unconsolidated
affiliate(b)
73 151 377 424
EBITDA $ 13,949 $ 5,226 $
40,603 $ 22,527
EBITDA Adjustments Stock-based
compensation $ 826 $ 695 $ 2,258 $ 1,919 M&A and related
litigation costs and fees(c) 173 837 1,312 2,377 Severance and
restructuring related costs(d) 722 3,555 1,286 5,336 Foreign
exchange (gain) loss 95 (37 ) 282 (3 )
Total
EBITDA adjustments $ 1,816 $ 5,050 $ 5,138 $ 9,629
Adjusted EBITDA EBITDA $ 13,949 $ 5,226 $ 40,603 $ 22,527
Add: EBITDA Adjustments 1,816 5,050 5,138 9,629
Adjusted EBITDA $ 15,765 $ 10,276 $ 45,741 $ 32,156
Net income (loss) Income (loss) before income taxes $ 8,354
$ (293 ) $ 23,318 $ 6,456 Less: Income tax expense 2,383 474
6,653 685
Net income (loss) $ 5,971 $ (767 ) $ 16,665
$ 5,771 Income (loss) before income taxes $ 8,354 $ (293 ) $
23,318 $ 6,456 Add: EBITDA Adjustments 1,816 5,050 5,138 9,629
Amortization of purchased intangibles(e) 743 1,034 2,317 3,080
One-time interest charge(f) — — — 321 Adjusted income before income
taxes 10,913 5,791 30,773 19,486 Less: Adjusted income tax
expense(g) 3,110 2,287 8,770 7,697
Non-GAAP net
income $ 7,803 $ 3,504 $ 22,003 $ 11,789
Diluted
earnings (loss) per share GAAP diluted EPS $ 0.47 $ (0.06 ) $
1.35 $ 0.43 Non-GAAP diluted EPS 0.61 0.27 1.78 0.88 GAAP
diluted weighted average number of common shares outstanding
12,795
12,248
12,343
13,325
Non-GAAP diluted weighted average number of common shares
outstanding
12,795
12,882
(h)
12,343
13,325
(a) EBITDA — earnings from operations before interest,
taxes, depreciation and amortization expenses. (b) Represents our
equity income resulting from our 49% ownership interest in the NCE.
(c) Includes acquisition-related costs and fees, including
litigation. (d) Includes employee severance related costs related
to our cost reduction initiatives, duplicate costs associated with
the Ovex transition, lease vacancy costs and other restructuring
related costs. (e) Includes amortization expense for
acquisition-related intangible assets, which include trademarks,
trade names, non-compete agreements and customer relationships. (f)
Represents interest expense levied against the company for
unclaimed property reports for periods dating back to 2003. (g) The
2018 adjusted income tax expense assumes an estimated annual
effective tax rate of 28.5%, which excludes out of period impacts
of the Tax Reform and Jobs Act of 2017. The 2017 adjusted income
tax expense for three and nine months ended September 30, 2017 were
computed using an estimated annual effective tax rate of 39.5%. Our
actual effective tax rates for the three and nine months ended
September 30, 2017 were 161.8% and 10.6%, respectively. (h)
Includes approximately 634,000 dilutive shares for the three months
ended September 30, 2017 for computation of non-GAAP diluted EPS.
PCM, INC. CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except per share amounts and share
data) September 30,
December 31, 2018 2017 ASSETS Current
assets: Cash and cash equivalents $ 8,549 $ 9,113 Accounts
receivable, net of allowances of $2,228 and $2,181 451,485 439,658
Inventories 63,989 103,471 Prepaid expenses and other current
assets 8,989 9,333 Total current assets 533,012 561,575 Property
and equipment, net 69,014 71,551 Goodwill 87,505 87,768 Intangible
assets, net 8,848 11,090 Deferred income taxes 1,274 1,759
Investment and other assets 4,775 6,509 Total assets $ 704,428 $
740,252
LIABILITIES AND STOCKHOLDERS’ EQUITY Current
liabilities: Accounts payable $ 312,079 $ 289,201 Accrued expenses
and other current liabilities 58,521 55,040 Deferred revenue 8,077
7,913 Line of credit 134,517 213,778 Notes payable — current 3,284
3,362 Total current liabilities 516,478 569,294 Notes payable
30,330 32,892 Other long-term liabilities 6,671 7,338 Deferred
income taxes 4,051 3,102 Total liabilities 557,530 612,626
Commitments and contingencies Stockholders’ equity: Preferred
stock, $0.001 par value; 5,000,000 shares authorized; none issued
and outstanding — — Common stock, $0.001 par value; 30,000,000
shares authorized; 17,534,250 and 17,170,273 shares issued;
12,143,598 and 11,779,621 shares outstanding 18
17
Additional paid-in capital 137,785 134,646 Treasury stock, at cost:
5,390,652 shares (38,536 ) (38,536 ) Accumulated other
comprehensive income (282 ) 251 Retained earnings 47,913 31,248
Total stockholders’ equity
146,898
127,626 Total liabilities and stockholders’ equity $ 704,428 $
740,252
PCM, INC. CONSOLIDATED STATEMENTS
OF CASH FLOWS (unaudited, in thousands) Nine
Months EndedSeptember 30, 2018 2017
Cash Flows From Operating Activities Net income $ 16,665 $
5,771 Adjustments to reconcile net income to net cash provided by
(used in) operating activities: Depreciation and amortization
10,235 10,482 Equity income from an unconsolidated affiliate (377 )
(424 ) Distribution from equity method investee 225 — Provision for
deferred income taxes 1,426 266 Non-cash stock-based compensation
2,258 1,918 Change in operating assets and liabilities: Accounts
receivable (11,827 ) (55,566 ) Inventories 39,482 10,621 Prepaid
expenses and other current assets 344 6,346 Other assets 2,079
1,181 Accounts payable 22,864 (7,145 ) Accrued expenses and other
current liabilities 4,373 3,547 Deferred revenue 164 (6,438 ) Total
adjustments
71,246
(35,212 ) Net cash provided by (used in) operating activities
87,911 (29,441 )
Cash Flows From Investing Activities
Purchases of property and equipment (3,816 ) (14,122 ) Acquisition
of Stack Technology, net of cash acquired (35 ) (1,723 ) Net cash
used in investing activities (3,851 ) (15,845 )
Cash Flows From
Financing Activities Net borrowings (payments) under line of
credit (79,261 ) 60,948 Borrowings under notes payable — 5,212
Payments under notes payable (2,631 ) (2,777 ) Change in book
overdraft (42 ) 1,885 Payments of obligations under capital leases
(813 ) (1,113 ) Payments of earn-out liability (2,199 ) (11,058 )
Proceeds from capital lease obligations — 587 Net proceeds from
stock issued under stock option plans 1,409 5,007 Payments for
deferred financing costs (273 ) (669 ) Common shares repurchased
and held in treasury — (11,354 ) Payment of taxes related to
net-settled stock awards (513 ) (808 ) Net cash provided by (used
in) financing activities (84,323 ) 45,860 Effect of foreign
currency on cash flow (301 ) 600 Net change in cash and cash
equivalents (564 ) 1,174 Cash and cash equivalents at beginning of
the period 9,113 7,172 Cash and cash equivalents at end of the
period $ 8,549 $ 8,346
Supplemental Cash Flow Information
Interest paid $ 6,726 $ 4,970 Income taxes paid, net 1,306 3,826
Supplemental Non-Cash Investing and Financing Activities
Financed and accrued purchases of property and equipment $ 1,560 $
520
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181024005864/en/
Investor Relations:Hayden IRKim Rogers(385)
831-7337kim@haydenir.com
PCM (NASDAQ:PCMI)
Historical Stock Chart
From Mar 2024 to Apr 2024
PCM (NASDAQ:PCMI)
Historical Stock Chart
From Apr 2023 to Apr 2024