Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Entity File Number | 0-23827 | |
Entity Registrant Name | PC CONNECTION, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 02-0513618 | |
Entity Address, Address Line One | 730 Milford Road | |
Entity Address, City or Town | Merrimack | |
Entity Address, State or Province | NH | |
Entity Address, Postal Zip Code | 03054 | |
City Area Code | 603 | |
Local Phone Number | 683-2000 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CNXN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,209,380 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001050377 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 89,728 | $ 95,655 |
Accounts receivable, net | 585,380 | 611,021 |
Inventories, net | 175,374 | 140,867 |
Prepaid expenses and other current assets | 11,797 | 11,437 |
Total current assets | 862,279 | 858,980 |
Property and equipment, net | 60,623 | 61,537 |
Right-of-use assets | 10,218 | 12,821 |
Goodwill | 73,602 | 73,602 |
Intangible assets, net | 6,173 | 7,088 |
Other assets | 1,031 | 1,345 |
Total Assets | 1,013,926 | 1,015,373 |
Current Liabilities: | ||
Accounts payable | 217,084 | 266,846 |
Accrued payroll | 24,023 | 17,828 |
Accrued expenses and other liabilities | 52,241 | 57,586 |
Total current liabilities | 293,348 | 342,260 |
Deferred income taxes | 18,525 | 18,525 |
Noncurrent operating lease liabilities | 7,353 | 9,631 |
Other liabilities | 8,528 | 8,630 |
Total Liabilities | 327,754 | 379,046 |
Stockholders' Equity: | ||
Common stock | 290 | 289 |
Additional paid-in capital | 122,214 | 119,891 |
Retained earnings | 609,605 | 562,084 |
Treasury stock, at cost | (45,937) | (45,937) |
Total Stockholders' Equity | 686,172 | 636,327 |
Total Liabilities and Stockholders' Equity | $ 1,013,926 | $ 1,015,373 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Consolidated Statements of Income | ||||
Net sales | $ 751,368 | $ 652,752 | $ 2,092,421 | $ 1,914,603 |
Cost of sales | 630,671 | 544,922 | 1,754,877 | 1,604,656 |
Gross profit | 120,697 | 107,830 | 337,544 | 309,947 |
Selling, general and administrative expenses | 93,369 | 86,753 | 272,332 | 256,640 |
Restructuring and other charges | 992 | |||
Income from operations | 27,328 | 21,077 | 65,212 | 52,315 |
Other (expenses) income, net | (17) | 7 | 80 | |
Income before taxes | 27,328 | 21,060 | 65,219 | 52,395 |
Income tax provision | (7,283) | (4,130) | (17,698) | (12,926) |
Net income | $ 20,045 | $ 16,930 | $ 47,521 | $ 39,469 |
Earnings per common share: | ||||
Basic | $ 0.77 | $ 0.65 | $ 1.81 | $ 1.51 |
Diluted | $ 0.76 | $ 0.64 | $ 1.80 | $ 1.50 |
Shares used in computation of earnings per common share: | ||||
Basic | 26,197 | 26,130 | 26,186 | 26,158 |
Diluted | 26,368 | 26,311 | 26,362 | 26,337 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Shares | Total |
Balance at Dec. 31, 2019 | $ 288 | $ 118,045 | $ 514,694 | $ (35,715) | $ 597,312 |
Balance (in shares) at Dec. 31, 2019 | 28,870 | (2,526) | |||
Issuance of common stock under Employee Stock Purchase Plan | 536 | 536 | |||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 12 | ||||
Stock-based compensation expense | 1,866 | 1,866 | |||
Restricted stock units vested | $ 1 | 1 | |||
Restricted stock units vested (in shares) | 33 | ||||
Shares withheld for taxes paid on stock awards | (685) | (685) | |||
Repurchase of common stock for treasury | $ (10,222) | (10,222) | |||
Repurchase of common stock for treasury (in shares) | (247) | ||||
Net income | 39,469 | 39,469 | |||
Balance at Sep. 30, 2020 | $ 289 | 119,762 | 554,163 | $ (45,937) | 628,277 |
Balance (in shares) at Sep. 30, 2020 | 28,915 | (2,773) | |||
Balance at Jun. 30, 2020 | $ 289 | 119,628 | 537,233 | $ (45,937) | 611,213 |
Balance (in shares) at Jun. 30, 2020 | 28,892 | (2,773) | |||
Stock-based compensation expense | 619 | 619 | |||
Restricted stock units vested (in shares) | 23 | ||||
Shares withheld for taxes paid on stock awards | (485) | (485) | |||
Net income | 16,930 | 16,930 | |||
Balance at Sep. 30, 2020 | $ 289 | 119,762 | 554,163 | $ (45,937) | 628,277 |
Balance (in shares) at Sep. 30, 2020 | 28,915 | (2,773) | |||
Balance at Dec. 31, 2020 | $ 289 | 119,891 | 562,084 | $ (45,937) | 636,327 |
Balance (in shares) at Dec. 31, 2020 | 28,943 | (2,773) | |||
Stock-based compensation expense | 3,118 | 3,118 | |||
Restricted stock units vested | $ 1 | (1) | |||
Restricted stock units vested (in shares) | 35 | ||||
Shares withheld for taxes paid on stock awards | (794) | (794) | |||
Net income | 47,521 | 47,521 | |||
Balance at Sep. 30, 2021 | $ 290 | 122,214 | 609,605 | $ (45,937) | 686,172 |
Balance (in shares) at Sep. 30, 2021 | 28,978 | (2,773) | |||
Balance at Jun. 30, 2021 | $ 289 | 121,659 | 589,560 | $ (45,937) | 665,571 |
Balance (in shares) at Jun. 30, 2021 | 28,960 | (2,773) | |||
Stock-based compensation expense | 1,026 | 1,026 | |||
Restricted stock units vested | $ 1 | (1) | |||
Restricted stock units vested (in shares) | 18 | ||||
Shares withheld for taxes paid on stock awards | (470) | (470) | |||
Net income | 20,045 | 20,045 | |||
Balance at Sep. 30, 2021 | $ 290 | $ 122,214 | $ 609,605 | $ (45,937) | $ 686,172 |
Balance (in shares) at Sep. 30, 2021 | 28,978 | (2,773) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows provided by Operating Activities: | ||
Net income | $ 47,521 | $ 39,469 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 9,165 | 10,335 |
Adjustments to credit losses reserve | 1,704 | 3,276 |
Stock-based compensation expense | 3,118 | 1,866 |
Loss on disposal of fixed assets | 2 | 13 |
Changes in assets and liabilities: | ||
Accounts receivable | 22,437 | (42,610) |
Inventories | (34,507) | (10,023) |
Prepaid expenses and other current assets | (360) | 43 |
Other non-current assets | 314 | (719) |
Accounts payable | (49,997) | 48,736 |
Accrued expenses and other liabilities | 9,437 | (3,987) |
Net cash provided by operating activities | 8,834 | 46,399 |
Cash Flows used in Investing Activities: | ||
Purchases of equipment and capitalized software | (7,092) | (9,611) |
Proceeds from life insurance | 1,500 | |
Net cash used in investing activities | (5,592) | (9,611) |
Cash Flows used in Financing Activities: | ||
Purchase of treasury shares | (10,222) | |
Dividend payments | (8,375) | (8,427) |
Issuance of stock under Employee Stock Purchase Plan | 536 | |
Payments of payroll taxes on stock-based compensation through shares withheld | (794) | (684) |
Net cash used in financing activities | (9,169) | (18,797) |
(Decrease) increase in cash and cash equivalents | (5,927) | 17,991 |
Cash and cash equivalents, beginning of period | 95,655 | 90,060 |
Cash and cash equivalents, end of period | 89,728 | 108,051 |
Non-cash Investing and Financing Activities: | ||
Accrued capital expenditures | 394 | 248 |
Supplemental Cash Flow Information: | ||
Income taxes paid | $ 20,600 | $ 13,798 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
Basis of Presentation | |
Basis of Presentation | Note 1–Basis of Presentation The accompanying unaudited condensed consolidated financial statements of PC Connection, Inc. and its subsidiaries (the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting and in accordance with accounting principles generally accepted in the United States of America (U.S.GAAP). Such principles were applied on a basis consistent with the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods reported and of the Company’s financial condition as of the date of the interim balance sheet. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. The operating results for the three and nine months ended September 30, 2021 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2021. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S.GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts and disclosures of assets and liabilities and the reported amounts and disclosures of revenue and expenses during the period. Management bases its estimates and judgments on the information available at the time and various other assumptions believed to be reasonable under the circumstances. By nature, estimates are subject to an inherent degree of uncertainty, including uncertainty in the current economic environment due to the coronavirus pandemic (“COVID-19 pandemic”). Actual results could differ from those estimates and assumptions, including the impact of the COVID-19 pandemic. Recently Issued Financial Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2021 | |
Revenue | |
Revenue | Note 2–Revenue The Company disaggregates revenue from its arrangements with customers by type of products and services, as it believes this method best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended September 30, 2021 and 2020, along with the reportable segment for each category. Three Months Ended September 30, 2021 Business Enterprise Public Sector Total Notebooks/Mobility $ 109,910 $ 117,017 $ 77,192 $ 304,119 Desktops 22,329 34,473 11,319 68,121 Software 28,761 22,829 9,678 61,268 Servers/Storage 25,775 12,560 13,407 51,742 Net/Com Products 21,091 23,887 8,259 53,237 Displays and Sound 26,321 33,490 15,287 75,098 Accessories 28,865 43,207 14,320 86,392 Other Hardware/Services 18,373 22,259 10,759 51,391 Total net sales $ 281,425 $ 309,722 $ 160,221 $ 751,368 Three Months Ended September 30, 2020 Business Enterprise Public Sector Total Notebooks/Mobility $ 72,694 $ 63,093 $ 66,761 $ 202,548 Desktops 20,097 33,451 9,861 63,409 Software 33,061 26,336 17,698 77,095 Servers/Storage 20,209 23,832 12,292 56,333 Net/Com Products 19,140 27,941 15,420 62,501 Displays and Sound 21,161 16,511 17,304 54,976 Accessories 27,855 40,538 14,842 83,235 Other Hardware/Services 16,768 28,065 7,822 52,655 Total net sales $ 230,985 $ 259,767 $ 162,000 $ 652,752 The following table represents a disaggregation of revenue from arrangements with customers for the nine months ended September 30, 2021 and 2020, along with the reportable segment for each category. Nine Months Ended September 30, 2021 Business Enterprise Public Sector Total Notebooks/Mobility $ 301,746 $ 293,680 $ 196,667 $ 792,093 Desktops 64,095 103,740 27,696 195,531 Software 89,025 71,496 28,745 189,266 Servers/Storage 67,434 56,822 27,689 151,945 Net/Com Products 61,855 64,404 25,831 152,090 Displays and Sound 71,920 86,238 42,023 200,181 Accessories 82,192 131,394 34,250 247,836 Other Hardware/Services 56,750 74,394 32,335 163,479 Total net sales $ 795,017 $ 882,168 $ 415,236 $ 2,092,421 Nine Months Ended September 30, 2020 Business Enterprise Public Sector Total Notebooks/Mobility $ 226,959 $ 222,139 $ 146,035 $ 595,133 Desktops 67,891 94,674 29,440 192,005 Software 93,710 77,394 33,340 204,444 Servers/Storage 69,685 63,042 32,058 164,785 Net/Com Products 54,916 72,172 32,674 159,762 Displays and Sound 64,338 58,603 38,433 161,374 Accessories 75,362 164,185 36,273 275,820 Other Hardware/Services 47,998 87,734 25,548 161,280 Total net sales $ 700,859 $ 839,943 $ 373,801 $ 1,914,603 Contract Balances The following table provides information about contract liabilities from arrangements with customers as of September 30, 2021 and December 31, 2020. September 30, 2021 December 31, 2020 Contract liabilities, which are included in "Accrued expenses and other liabilities" $ 7,823 $ 3,509 Changes in the contract liability balances during the nine months ended September 30, 2021 and 2020 are as follows: 2021 Balances at December 31, 2020 $ 3,509 Cash received in advance and not recognized as revenue (15,524) Amounts recognized as revenue as performance obligations satisfied 19,838 Balances at September 30, 2021 $ 7,823 2020 Balances at December 31, 2019 $ 5,942 Cash received in advance and not recognized as revenue 7,978 Amounts recognized as revenue as performance obligations satisfied (12,380) Balances at September 30, 2020 $ 1,540 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share | |
Earnings Per Share | Note 3–Earnings Per Share Basic earnings per common share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributable to non-vested stock units and stock options outstanding, if dilutive. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net income $ 20,045 $ 16,930 $ 47,521 $ 39,469 Denominator: Denominator for basic earnings per share 26,197 26,130 26,186 26,158 Dilutive effect of employee stock awards 171 181 176 179 Denominator for diluted earnings per share 26,368 26,311 26,362 26,337 Earnings per share: Basic $ 0.77 $ 0.65 $ 1.81 $ 1.51 Diluted $ 0.76 $ 0.64 $ 1.80 $ 1.50 For the three months and nine months ended September 30, 2021, the Company had no outstanding non-vested stock units that were excluded from the computation of diluted earnings per share because including them would have had an anti-dilutive effect. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Leases | Note 4—Leases The Company leases certain facilities from a related party, which is a company affiliated with us through common ownership. Included in the right-of-use asset (“ROU asset”) as of September 30, 2021 was $2,608 and a corresponding lease liability of $2,608 associated with related party leases. As of September 30, 2021, there were no additional operating leases that have not yet commenced. Refer to the following table for quantitative information related to the Company’s leases for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Related Parties Others Total Related Parties Others Total Lease Cost Capitalized operating lease cost $ 313 $ 753 $ 1,066 $ 940 $ 2,304 $ 3,244 Short-term lease cost 107 21 128 320 63 383 Total lease cost $ 420 $ 774 $ 1,194 $ 1,260 $ 2,367 $ 3,627 Other Information Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: Operating cash flows $ 313 $ 807 $ 1,120 $ 940 $ 2,404 $ 3,344 Weighted-average remaining lease term (in years): Capitalized operating leases 2.17 4.66 4.06 Weighted-average discount rate: Capitalized operating leases 3.92% 3.92% 3.92% Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Related Parties Others Total Related Parties Others Total Lease Cost Capitalized operating lease cost $ 313 $ 798 $ 1,111 $ 1,071 $ 2,379 $ 3,450 Short-term lease cost 107 2 109 188 6 194 Total lease cost $ 420 $ 800 $ 1,220 $ 1,259 $ 2,385 $ 3,644 Other Information Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: Operating cash flows $ 313 $ 832 $ 1,145 $ 1,071 $ 2,439 $ 3,510 Weighted-average remaining lease term (in years): Capitalized operating leases 3.17 5.81 5.13 Weighted-average discount rate: Capitalized operating leases 3.92% 3.92% 3.92% For the Years Ended December 31, Related Parties Others Total 2021, excluding the nine months ended September 30, 2021 $ 313 $ 774 $ 1,087 2022 1,253 2,268 3,521 2023 1,149 1,727 2,876 2024 — 1,699 1,699 2025 — 1,594 1,594 Thereafter — 888 888 $ 2,715 $ 8,950 $ 11,665 Imputed interest (810) Lease liability balance at September 30, 2021 $ 10,855 As of September 30, 2021, the ROU asset had a balance of $10,218. The long-term lease liability was $7,353 and the short-term lease liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, was $3,502. As of September 30, 2020, the ROU asset had a balance of $13,768. The long-term lease liability was $10,579 and the short-term lease liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, was $3,989. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2021 | |
Segment and Related Disclosures | |
Segment and Related Disclosures | Note 5–Segment Information The internal reporting structure used by the Company’s chief operating decision maker (“CODM”) to assess performance and allocate resources determines the basis for our reportable operating segments. The Company’s CODM is its Chief Executive Officer, and he evaluates operations and allocates resources based on a measure of operating income. The Company’s operations are organized under three reportable segments—the Business Solutions segment, which serves primarily small- and medium-sized businesses; the Enterprise Solutions segment, which serves primarily medium-to-large corporations; and the Public Sector Solutions segment, which serves primarily federal, state, and local governmental and educational institutions. In addition, the Headquarters/Other group provides services in areas such as finance, human resources, information technology, marketing, and product management. Most of the operating costs associated with the Headquarters/Other group functions are charged to the operating segments based on their estimated usage of the underlying functions. The Company reports these charges to the operating segments as “Allocations.” Certain headquarters costs relating to executive oversight and other fiduciary functions that are not allocated to the operating segments are included under the heading of Headquarters/Other in the tables below. Segment information applicable to our reportable operating segments for the three and nine months ended September 30, 2021 and 2020 is shown below: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Net sales: Business Solutions $ 281,425 $ 230,985 $ 795,017 $ 700,859 Enterprise Solutions 309,722 259,767 882,168 839,943 Public Sector Solutions 160,221 162,000 415,236 373,801 Total net sales $ 751,368 $ 652,752 $ 2,092,421 $ 1,914,603 Operating income (loss): Business Solutions $ 12,774 $ 8,827 $ 29,559 $ 21,579 Enterprise Solutions 19,151 14,843 52,203 45,233 Public Sector Solutions 619 3,165 (4,250) (1,964) Headquarters/Other (5,216) (5,758) (12,300) (12,533) Total operating income 27,328 21,077 65,212 52,315 Other (expenses) income, net — (17) 7 80 Income before taxes $ 27,328 $ 21,060 $ 65,219 $ 52,395 Selected operating expense: Depreciation and amortization: Business Solutions $ 169 $ 159 $ 487 $ 477 Enterprise Solutions 560 697 1,888 2,057 Public Sector Solutions 19 15 43 45 Headquarters/Other 2,199 2,962 6,747 7,756 Total depreciation and amortization $ 2,947 $ 3,833 $ 9,165 $ 10,335 Total assets: Business Solutions $ 375,557 $ 343,010 Enterprise Solutions 603,173 551,914 Public Sector Solutions 91,227 123,520 Headquarters/Other (56,031) (15,110) Total assets $ 1,013,926 $ 1,003,334 The assets of our three operating segments presented above consist primarily of accounts receivable, net intercompany receivable, goodwill, and other intangibles. Assets reported under the Headquarters/Other group are managed by corporate headquarters, including cash, inventory, property and equipment, right-of-use assets, and intercompany balance, net. As of September 30, 2021 and 2020, total assets for the Headquarters/Other group were presented net of intercompany balance eliminations of $39,209 and $60,802 , respectively. Our capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade our management information systems. These information systems serve all of our segments, to varying degrees, and accordingly, our CODM does not evaluate capital expenditures on a segment-by-segment basis. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 6–Commitments and Contingencies The Company is subject to various legal proceedings and claims, including patent infringement claims, which have arisen during the ordinary course of business. The outcome of such matters is not expected to have a material, adverse effect on our financial position, results of operations, and/or cash flows. The Company is subject to audits by states on sales and income taxes, employment matters, and other assessments. Additional liabilities for these and other audits could be assessed, but such outcomes are not expected to have a material, adverse impact on our financial position, results of operations, and/or cash flows. |
BANK BORROWINGS
BANK BORROWINGS | 9 Months Ended |
Sep. 30, 2021 | |
Bank Borrowings | |
Bank Borrowings | Note 7–Bank Borrowings The Company has a $50,000 credit facility collateralized by our account receivables that expires February 10, 2022 . This facility can be increased, at our option, to $80,000 for permitted acquisitions or other uses authorized by the lender on substantially the same terms. Amounts outstanding under this facility bear interest at the one-month LIBOR (0.08% at September 30, 2021), plus a spread based on our funded debt ratio, or in the absence of LIBOR, the prime rate (3.25% at September 30, 2021). The credit facility includes various customary financial ratios and operating covenants, including minimum net worth and maximum funded debt ratio requirements, and default acceleration provisions. The credit facility does not include restrictions on future dividend payments. Funded debt ratio is the ratio of average outstanding advances under the credit facility for a given quarter to our consolidated trailing twelve months Adjusted EBITDA (Earnings Before Interest Expense, Taxes, Depreciation, Amortization, and Special Charges). The maximum allowable funded debt ratio under the agreement is 2.0 to 1.0. Decreases in our consolidated trailing twelve months Adjusted EBITDA could limit our potential borrowing capacity under the credit facility. The Company had no outstanding bank borrowings at September 30, 2021 or 2020, and accordingly, the entire $50,000 facility was available for borrowings under the credit facility. As of September 30, 2021, the Company was in compliance with all financial covenants contained in the agreement governing the credit facility. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Basis of Presentation | |
Principles of Consolidation | The accompanying unaudited condensed consolidated financial statements of PC Connection, Inc. and its subsidiaries (the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting and in accordance with accounting principles generally accepted in the United States of America (U.S.GAAP). Such principles were applied on a basis consistent with the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods reported and of the Company’s financial condition as of the date of the interim balance sheet. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. The operating results for the three and nine months ended September 30, 2021 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2021. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S.GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts and disclosures of assets and liabilities and the reported amounts and disclosures of revenue and expenses during the period. Management bases its estimates and judgments on the information available at the time and various other assumptions believed to be reasonable under the circumstances. By nature, estimates are subject to an inherent degree of uncertainty, including uncertainty in the current economic environment due to the coronavirus pandemic (“COVID-19 pandemic”). Actual results could differ from those estimates and assumptions, including the impact of the COVID-19 pandemic. |
Recently Issued Financial Accounting Standards | Recently Issued Financial Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue | |
Schedule of disaggregation of revenue from contracts with customers | Three Months Ended September 30, 2021 Business Enterprise Public Sector Total Notebooks/Mobility $ 109,910 $ 117,017 $ 77,192 $ 304,119 Desktops 22,329 34,473 11,319 68,121 Software 28,761 22,829 9,678 61,268 Servers/Storage 25,775 12,560 13,407 51,742 Net/Com Products 21,091 23,887 8,259 53,237 Displays and Sound 26,321 33,490 15,287 75,098 Accessories 28,865 43,207 14,320 86,392 Other Hardware/Services 18,373 22,259 10,759 51,391 Total net sales $ 281,425 $ 309,722 $ 160,221 $ 751,368 Three Months Ended September 30, 2020 Business Enterprise Public Sector Total Notebooks/Mobility $ 72,694 $ 63,093 $ 66,761 $ 202,548 Desktops 20,097 33,451 9,861 63,409 Software 33,061 26,336 17,698 77,095 Servers/Storage 20,209 23,832 12,292 56,333 Net/Com Products 19,140 27,941 15,420 62,501 Displays and Sound 21,161 16,511 17,304 54,976 Accessories 27,855 40,538 14,842 83,235 Other Hardware/Services 16,768 28,065 7,822 52,655 Total net sales $ 230,985 $ 259,767 $ 162,000 $ 652,752 Nine Months Ended September 30, 2021 Business Enterprise Public Sector Total Notebooks/Mobility $ 301,746 $ 293,680 $ 196,667 $ 792,093 Desktops 64,095 103,740 27,696 195,531 Software 89,025 71,496 28,745 189,266 Servers/Storage 67,434 56,822 27,689 151,945 Net/Com Products 61,855 64,404 25,831 152,090 Displays and Sound 71,920 86,238 42,023 200,181 Accessories 82,192 131,394 34,250 247,836 Other Hardware/Services 56,750 74,394 32,335 163,479 Total net sales $ 795,017 $ 882,168 $ 415,236 $ 2,092,421 Nine Months Ended September 30, 2020 Business Enterprise Public Sector Total Notebooks/Mobility $ 226,959 $ 222,139 $ 146,035 $ 595,133 Desktops 67,891 94,674 29,440 192,005 Software 93,710 77,394 33,340 204,444 Servers/Storage 69,685 63,042 32,058 164,785 Net/Com Products 54,916 72,172 32,674 159,762 Displays and Sound 64,338 58,603 38,433 161,374 Accessories 75,362 164,185 36,273 275,820 Other Hardware/Services 47,998 87,734 25,548 161,280 Total net sales $ 700,859 $ 839,943 $ 373,801 $ 1,914,603 |
Schedule of changes in contract liability balances | September 30, 2021 December 31, 2020 Contract liabilities, which are included in "Accrued expenses and other liabilities" $ 7,823 $ 3,509 Changes in the contract liability balances during the nine months ended September 30, 2021 and 2020 are as follows: 2021 Balances at December 31, 2020 $ 3,509 Cash received in advance and not recognized as revenue (15,524) Amounts recognized as revenue as performance obligations satisfied 19,838 Balances at September 30, 2021 $ 7,823 2020 Balances at December 31, 2019 $ 5,942 Cash received in advance and not recognized as revenue 7,978 Amounts recognized as revenue as performance obligations satisfied (12,380) Balances at September 30, 2020 $ 1,540 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share | |
Computation of basic and diluted earnings per share | Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net income $ 20,045 $ 16,930 $ 47,521 $ 39,469 Denominator: Denominator for basic earnings per share 26,197 26,130 26,186 26,158 Dilutive effect of employee stock awards 171 181 176 179 Denominator for diluted earnings per share 26,368 26,311 26,362 26,337 Earnings per share: Basic $ 0.77 $ 0.65 $ 1.81 $ 1.51 Diluted $ 0.76 $ 0.64 $ 1.80 $ 1.50 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Schedule of lease cost | Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Related Parties Others Total Related Parties Others Total Lease Cost Capitalized operating lease cost $ 313 $ 753 $ 1,066 $ 940 $ 2,304 $ 3,244 Short-term lease cost 107 21 128 320 63 383 Total lease cost $ 420 $ 774 $ 1,194 $ 1,260 $ 2,367 $ 3,627 Other Information Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: Operating cash flows $ 313 $ 807 $ 1,120 $ 940 $ 2,404 $ 3,344 Weighted-average remaining lease term (in years): Capitalized operating leases 2.17 4.66 4.06 Weighted-average discount rate: Capitalized operating leases 3.92% 3.92% 3.92% Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Related Parties Others Total Related Parties Others Total Lease Cost Capitalized operating lease cost $ 313 $ 798 $ 1,111 $ 1,071 $ 2,379 $ 3,450 Short-term lease cost 107 2 109 188 6 194 Total lease cost $ 420 $ 800 $ 1,220 $ 1,259 $ 2,385 $ 3,644 Other Information Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: Operating cash flows $ 313 $ 832 $ 1,145 $ 1,071 $ 2,439 $ 3,510 Weighted-average remaining lease term (in years): Capitalized operating leases 3.17 5.81 5.13 Weighted-average discount rate: Capitalized operating leases 3.92% 3.92% 3.92% |
Schedule of future lease payments on capitalized operating leases | For the Years Ended December 31, Related Parties Others Total 2021, excluding the nine months ended September 30, 2021 $ 313 $ 774 $ 1,087 2022 1,253 2,268 3,521 2023 1,149 1,727 2,876 2024 — 1,699 1,699 2025 — 1,594 1,594 Thereafter — 888 888 $ 2,715 $ 8,950 $ 11,665 Imputed interest (810) Lease liability balance at September 30, 2021 $ 10,855 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment and Related Disclosures | |
Segment information applicable to reportable operating segments | Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Net sales: Business Solutions $ 281,425 $ 230,985 $ 795,017 $ 700,859 Enterprise Solutions 309,722 259,767 882,168 839,943 Public Sector Solutions 160,221 162,000 415,236 373,801 Total net sales $ 751,368 $ 652,752 $ 2,092,421 $ 1,914,603 Operating income (loss): Business Solutions $ 12,774 $ 8,827 $ 29,559 $ 21,579 Enterprise Solutions 19,151 14,843 52,203 45,233 Public Sector Solutions 619 3,165 (4,250) (1,964) Headquarters/Other (5,216) (5,758) (12,300) (12,533) Total operating income 27,328 21,077 65,212 52,315 Other (expenses) income, net — (17) 7 80 Income before taxes $ 27,328 $ 21,060 $ 65,219 $ 52,395 Selected operating expense: Depreciation and amortization: Business Solutions $ 169 $ 159 $ 487 $ 477 Enterprise Solutions 560 697 1,888 2,057 Public Sector Solutions 19 15 43 45 Headquarters/Other 2,199 2,962 6,747 7,756 Total depreciation and amortization $ 2,947 $ 3,833 $ 9,165 $ 10,335 Total assets: Business Solutions $ 375,557 $ 343,010 Enterprise Solutions 603,173 551,914 Public Sector Solutions 91,227 123,520 Headquarters/Other (56,031) (15,110) Total assets $ 1,013,926 $ 1,003,334 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of revenue | ||||
Net sales | $ 751,368 | $ 652,752 | $ 2,092,421 | $ 1,914,603 |
Notebooks/Mobility | ||||
Disaggregation of revenue | ||||
Net sales | 304,119 | 202,548 | 792,093 | 595,133 |
Desktops | ||||
Disaggregation of revenue | ||||
Net sales | 68,121 | 63,409 | 195,531 | 192,005 |
Software | ||||
Disaggregation of revenue | ||||
Net sales | 61,268 | 77,095 | 189,266 | 204,444 |
Servers/Storage | ||||
Disaggregation of revenue | ||||
Net sales | 51,742 | 56,333 | 151,945 | 164,785 |
Net/Com Products | ||||
Disaggregation of revenue | ||||
Net sales | 53,237 | 62,501 | 152,090 | 159,762 |
Displays and Sound | ||||
Disaggregation of revenue | ||||
Net sales | 75,098 | 54,976 | 200,181 | 161,374 |
Accessories | ||||
Disaggregation of revenue | ||||
Net sales | 86,392 | 83,235 | 247,836 | 275,820 |
Other Hardware/Services | ||||
Disaggregation of revenue | ||||
Net sales | 51,391 | 52,655 | 163,479 | 161,280 |
Small and Medium Sized Businesses segment | ||||
Disaggregation of revenue | ||||
Net sales | 281,425 | 230,985 | 795,017 | 700,859 |
Small and Medium Sized Businesses segment | Notebooks/Mobility | ||||
Disaggregation of revenue | ||||
Net sales | 109,910 | 72,694 | 301,746 | 226,959 |
Small and Medium Sized Businesses segment | Desktops | ||||
Disaggregation of revenue | ||||
Net sales | 22,329 | 20,097 | 64,095 | 67,891 |
Small and Medium Sized Businesses segment | Software | ||||
Disaggregation of revenue | ||||
Net sales | 28,761 | 33,061 | 89,025 | 93,710 |
Small and Medium Sized Businesses segment | Servers/Storage | ||||
Disaggregation of revenue | ||||
Net sales | 25,775 | 20,209 | 67,434 | 69,685 |
Small and Medium Sized Businesses segment | Net/Com Products | ||||
Disaggregation of revenue | ||||
Net sales | 21,091 | 19,140 | 61,855 | 54,916 |
Small and Medium Sized Businesses segment | Displays and Sound | ||||
Disaggregation of revenue | ||||
Net sales | 26,321 | 21,161 | 71,920 | 64,338 |
Small and Medium Sized Businesses segment | Accessories | ||||
Disaggregation of revenue | ||||
Net sales | 28,865 | 27,855 | 82,192 | 75,362 |
Small and Medium Sized Businesses segment | Other Hardware/Services | ||||
Disaggregation of revenue | ||||
Net sales | 18,373 | 16,768 | 56,750 | 47,998 |
Large Account Segment | ||||
Disaggregation of revenue | ||||
Net sales | 309,722 | 259,767 | 882,168 | 839,943 |
Large Account Segment | Notebooks/Mobility | ||||
Disaggregation of revenue | ||||
Net sales | 117,017 | 63,093 | 293,680 | 222,139 |
Large Account Segment | Desktops | ||||
Disaggregation of revenue | ||||
Net sales | 34,473 | 33,451 | 103,740 | 94,674 |
Large Account Segment | Software | ||||
Disaggregation of revenue | ||||
Net sales | 22,829 | 26,336 | 71,496 | 77,394 |
Large Account Segment | Servers/Storage | ||||
Disaggregation of revenue | ||||
Net sales | 12,560 | 23,832 | 56,822 | 63,042 |
Large Account Segment | Net/Com Products | ||||
Disaggregation of revenue | ||||
Net sales | 23,887 | 27,941 | 64,404 | 72,172 |
Large Account Segment | Displays and Sound | ||||
Disaggregation of revenue | ||||
Net sales | 33,490 | 16,511 | 86,238 | 58,603 |
Large Account Segment | Accessories | ||||
Disaggregation of revenue | ||||
Net sales | 43,207 | 40,538 | 131,394 | 164,185 |
Large Account Segment | Other Hardware/Services | ||||
Disaggregation of revenue | ||||
Net sales | 22,259 | 28,065 | 74,394 | 87,734 |
Public Sector | ||||
Disaggregation of revenue | ||||
Net sales | 160,221 | 162,000 | 415,236 | 373,801 |
Public Sector | Notebooks/Mobility | ||||
Disaggregation of revenue | ||||
Net sales | 77,192 | 66,761 | 196,667 | 146,035 |
Public Sector | Desktops | ||||
Disaggregation of revenue | ||||
Net sales | 11,319 | 9,861 | 27,696 | 29,440 |
Public Sector | Software | ||||
Disaggregation of revenue | ||||
Net sales | 9,678 | 17,698 | 28,745 | 33,340 |
Public Sector | Servers/Storage | ||||
Disaggregation of revenue | ||||
Net sales | 13,407 | 12,292 | 27,689 | 32,058 |
Public Sector | Net/Com Products | ||||
Disaggregation of revenue | ||||
Net sales | 8,259 | 15,420 | 25,831 | 32,674 |
Public Sector | Displays and Sound | ||||
Disaggregation of revenue | ||||
Net sales | 15,287 | 17,304 | 42,023 | 38,433 |
Public Sector | Accessories | ||||
Disaggregation of revenue | ||||
Net sales | 14,320 | 14,842 | 34,250 | 36,273 |
Public Sector | Other Hardware/Services | ||||
Disaggregation of revenue | ||||
Net sales | $ 10,759 | $ 7,822 | $ 32,335 | $ 25,548 |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Change in contract liability | |||
Beginning balance - Contract liability | $ 3,509 | $ 5,942 | |
Cash received in advance and not recognized as revenue | (15,524) | 7,978 | |
Amounts recognized as revenue as performance obligations satisfied | 19,838 | (12,380) | |
Ending balance - Contract liability | 7,823 | $ 1,540 | |
Accrued expenses and other liabilities | |||
Contract liabilities | |||
Contract liabilities | $ 7,823 | $ 3,509 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net income | $ 20,045 | $ 16,930 | $ 47,521 | $ 39,469 |
Denominator: | ||||
Denominator for basic earnings per share | 26,197 | 26,130 | 26,186 | 26,158 |
Dilutive effect of unvested employee stock awards | 171 | 181 | 176 | 179 |
Denominator for diluted earnings per share | 26,368 | 26,311 | 26,362 | 26,337 |
Earnings per share: | ||||
Basic | $ 0.77 | $ 0.65 | $ 1.81 | $ 1.51 |
Diluted | $ 0.76 | $ 0.64 | $ 1.80 | $ 1.50 |
Additional Disclosure | ||||
Employee stock awards excluded from computation of diluted earnings per share | 0 | 0 | 0 | 0 |
LEASES - Lease Cost and Other I
LEASES - Lease Cost and Other Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)lease | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Leases | |||||
Right-of-use assets | $ 10,218 | $ 13,768 | $ 10,218 | $ 13,768 | $ 12,821 |
Lease liability | 10,855 | $ 10,855 | |||
Number of additional operating or financing leases not yet commenced | lease | 0 | ||||
Lease Cost | |||||
Capitalized operating lease cost | 1,066 | 1,111 | $ 3,244 | 3,450 | |
Short-term lease cost | 128 | 109 | 383 | 194 | |
Total lease cost | 1,194 | 1,220 | 3,627 | 3,644 | |
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: | |||||
Operating cash flows | $ 1,120 | $ 1,145 | $ 3,344 | $ 3,510 | |
Weighted-average remaining lease term - Capitalized operating leases (in years) | 4 years 21 days | 5 years 1 month 17 days | 4 years 21 days | 5 years 1 month 17 days | |
Weighted-average discount rate - Capitalized operating leases | 3.92% | 3.92% | 3.92% | 3.92% | |
Related Parties | |||||
Leases | |||||
Right-of-use assets | $ 2,608 | $ 2,608 | |||
Lease liability | 2,608 | 2,608 | |||
Lease Cost | |||||
Capitalized operating lease cost | 313 | $ 313 | 940 | $ 1,071 | |
Short-term lease cost | 107 | 107 | 320 | 188 | |
Total lease cost | 420 | 420 | 1,260 | 1,259 | |
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: | |||||
Operating cash flows | $ 313 | $ 313 | $ 940 | $ 1,071 | |
Weighted-average remaining lease term - Capitalized operating leases (in years) | 2 years 2 months 1 day | 3 years 2 months 1 day | 2 years 2 months 1 day | 3 years 2 months 1 day | |
Weighted-average discount rate - Capitalized operating leases | 3.92% | 3.92% | 3.92% | 3.92% | |
Others | |||||
Lease Cost | |||||
Capitalized operating lease cost | $ 753 | $ 798 | $ 2,304 | $ 2,379 | |
Short-term lease cost | 21 | 2 | 63 | 6 | |
Total lease cost | 774 | 800 | 2,367 | 2,385 | |
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: | |||||
Operating cash flows | $ 807 | $ 832 | $ 2,404 | $ 2,439 | |
Weighted-average remaining lease term - Capitalized operating leases (in years) | 4 years 7 months 28 days | 5 years 9 months 21 days | 4 years 7 months 28 days | 5 years 9 months 21 days | |
Weighted-average discount rate - Capitalized operating leases | 3.92% | 3.92% | 3.92% | 3.92% |
LEASES - Future Lease Payments
LEASES - Future Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Future lease payments over the remaining term of capitalized operating leases | |||
2021, excluding the nine months ended September 30, 2021 | $ 1,087 | ||
2022 | 3,521 | ||
2023 | 2,876 | ||
2024 | 1,699 | ||
2025 | 1,594 | ||
Thereafter | 888 | ||
Total | 11,665 | ||
Imputed interest | (810) | ||
Lease liability balance | 10,855 | ||
Right-of-use assets | 10,218 | $ 12,821 | $ 13,768 |
Long-term lease liability | 7,353 | $ 9,631 | 10,579 |
Short-term lease liability | $ 3,502 | $ 3,989 | |
Current operating lease liability, Statement of Financial Position | Accrued expenses and other liabilities | Accrued expenses and other liabilities | |
Related Parties | |||
Future lease payments over the remaining term of capitalized operating leases | |||
2021, excluding the nine months ended September 30, 2021 | $ 313 | ||
2022 | 1,253 | ||
2023 | 1,149 | ||
Total | 2,715 | ||
Lease liability balance | 2,608 | ||
Right-of-use assets | 2,608 | ||
Others | |||
Future lease payments over the remaining term of capitalized operating leases | |||
2021, excluding the nine months ended September 30, 2021 | 774 | ||
2022 | 2,268 | ||
2023 | 1,727 | ||
2024 | 1,699 | ||
2025 | 1,594 | ||
Thereafter | 888 | ||
Total | $ 8,950 |
SEGMENT INFORMATION - Segment I
SEGMENT INFORMATION - Segment Information Applicable to Reportable Operating Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting Information | |||||
Number of reportable segments | segment | 3 | ||||
Number of operating segments | segment | 3 | ||||
Net sales: | |||||
Net sales | $ 751,368 | $ 652,752 | $ 2,092,421 | $ 1,914,603 | |
Operating income (loss): | |||||
Operating income (loss) | 27,328 | 21,077 | 65,212 | 52,315 | |
Other (expenses) income, net | (17) | 7 | 80 | ||
Income before taxes | 27,328 | 21,060 | 65,219 | 52,395 | |
Depreciation and amortization: | |||||
Depreciation and amortization | 2,947 | 3,833 | 9,165 | 10,335 | |
Total assets: | |||||
Total assets | 1,013,926 | 1,003,334 | 1,013,926 | 1,003,334 | $ 1,015,373 |
Goodwill | 73,602 | 73,602 | $ 73,602 | ||
Business Solutions | |||||
Net sales: | |||||
Net sales | 281,425 | 230,985 | 795,017 | 700,859 | |
Enterprise Solutions | |||||
Net sales: | |||||
Net sales | 309,722 | 259,767 | 882,168 | 839,943 | |
Public Sector Solutions | |||||
Net sales: | |||||
Net sales | 160,221 | 162,000 | 415,236 | 373,801 | |
Operating Segments | Business Solutions | |||||
Net sales: | |||||
Net sales | 281,425 | 230,985 | 795,017 | 700,859 | |
Operating income (loss): | |||||
Operating income (loss) | 12,774 | 8,827 | 29,559 | 21,579 | |
Depreciation and amortization: | |||||
Depreciation and amortization | 169 | 159 | 487 | 477 | |
Total assets: | |||||
Total assets | 375,557 | 343,010 | 375,557 | 343,010 | |
Operating Segments | Enterprise Solutions | |||||
Net sales: | |||||
Net sales | 309,722 | 259,767 | 882,168 | 839,943 | |
Operating income (loss): | |||||
Operating income (loss) | 19,151 | 14,843 | 52,203 | 45,233 | |
Depreciation and amortization: | |||||
Depreciation and amortization | 560 | 697 | 1,888 | 2,057 | |
Total assets: | |||||
Total assets | 603,173 | 551,914 | 603,173 | 551,914 | |
Operating Segments | Public Sector Solutions | |||||
Net sales: | |||||
Net sales | 160,221 | 162,000 | 415,236 | 373,801 | |
Operating income (loss): | |||||
Operating income (loss) | 619 | 3,165 | (4,250) | (1,964) | |
Depreciation and amortization: | |||||
Depreciation and amortization | 19 | 15 | 43 | 45 | |
Total assets: | |||||
Total assets | 91,227 | 123,520 | 91,227 | 123,520 | |
Headquarters/Other | |||||
Operating income (loss): | |||||
Operating income (loss) | (5,216) | (5,758) | (12,300) | (12,533) | |
Depreciation and amortization: | |||||
Depreciation and amortization | 2,199 | 2,962 | 6,747 | 7,756 | |
Total assets: | |||||
Assets net of intercompany balance eliminations | (56,031) | (15,110) | (56,031) | (15,110) | |
Intersegment Elimination | |||||
Total assets: | |||||
Total assets | $ (39,209) | $ (60,802) | $ (39,209) | $ (60,802) |
BANK BORROWINGS (Details)
BANK BORROWINGS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Subordinated Borrowing | ||
Line of credit, borrowing capacity | $ 50,000 | |
Credit facility, expiration date | Feb. 10, 2022 | |
Line of credit, maximum borrowing capacity | $ 80,000 | |
Debt instrument, description of variable rate basis | one-month LIBOR | |
Line of credit, outstanding borrowing | $ 0 | $ 0 |
Line of credit, available for borrowing | $ 50,000 | $ 50,000 |
Maximum | ||
Subordinated Borrowing | ||
Debt ratio | 2 | |
Prime Rate | ||
Subordinated Borrowing | ||
Debt instrument, interest rate | 3.25% | |
One-month LIBOR rate | ||
Subordinated Borrowing | ||
Debt instrument, interest rate | 0.08% |