Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 28, 2022 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
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, $0.01 par value | |
Trading Symbol | CNXN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,288,356 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001050377 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 116,190 | $ 108,310 |
Accounts receivable, net | 646,656 | 607,532 |
Inventories, net | 213,316 | 206,555 |
Prepaid expenses and other current assets | 10,095 | 10,016 |
Total current assets | 986,257 | 932,413 |
Property and equipment, net | 59,913 | 61,011 |
Right-of-use assets | 8,495 | 9,579 |
Goodwill | 73,602 | 73,602 |
Intangible, net | 4,953 | 5,868 |
Other assets | 905 | 910 |
Total Assets | 1,134,125 | 1,083,383 |
Current Liabilities: | ||
Accounts payable | 258,596 | 281,836 |
Accrued payroll | 31,478 | 30,966 |
Accrued expenses and other liabilities | 62,846 | 61,830 |
Total current liabilities | 352,920 | 374,632 |
Deferred income taxes | 19,278 | 19,278 |
Noncurrent operating lease liabilities | 5,620 | 6,789 |
Other liabilities | 200 | 211 |
Total Liabilities | 378,018 | 400,910 |
Stockholders' Equity: | ||
Common stock | 291 | 290 |
Additional paid-in capital | 125,591 | 122,354 |
Retained earnings | 676,162 | 605,766 |
Treasury stock, at cost | (45,937) | (45,937) |
Total Stockholders' Equity | 756,107 | 682,473 |
Total Liabilities and Stockholders' Equity | $ 1,134,125 | $ 1,083,383 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Consolidated Statements of Income | ||||
Net sales | $ 775,692 | $ 751,368 | $ 2,392,545 | $ 2,092,421 |
Cost of sales | 639,066 | 630,671 | 1,990,712 | 1,754,877 |
Gross profit | 136,626 | 120,697 | 401,833 | 337,544 |
Selling, general and administrative expenses | 104,887 | 93,369 | 305,189 | 272,332 |
Income from operations | 31,739 | 27,328 | 96,644 | 65,212 |
Other income, net | 308 | 319 | 7 | |
Income before taxes | 32,047 | 27,328 | 96,963 | 65,219 |
Income tax provision | (8,841) | (7,283) | (26,567) | (17,698) |
Net income | $ 23,206 | $ 20,045 | $ 70,396 | $ 47,521 |
Earnings per common share: | ||||
Basic | $ 0.88 | $ 0.77 | $ 2.68 | $ 1.81 |
Diluted | $ 0.88 | $ 0.76 | $ 2.66 | $ 1.80 |
Shares used in computation of earnings per common share: | ||||
Basic | 26,279 | 26,197 | 26,267 | 26,186 |
Diluted | 26,455 | 26,368 | 26,432 | 26,362 |
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, 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) | |||
Balance at Dec. 31, 2021 | $ 290 | 122,354 | 605,766 | $ (45,937) | 682,473 |
Balance (in shares) at Dec. 31, 2021 | 29,025 | (2,773) | |||
Stock-based compensation expense | 4,072 | 4,072 | |||
Restricted stock units vested | $ 1 | (1) | |||
Restricted stock units vested (in shares) | 36 | ||||
Shares withheld for taxes paid on stock awards | (834) | (834) | |||
Net income | 70,396 | 70,396 | |||
Balance at Sep. 30, 2022 | $ 291 | 125,591 | 676,162 | $ (45,937) | 756,107 |
Balance (in shares) at Sep. 30, 2022 | 29,061 | (2,773) | |||
Balance at Jun. 30, 2022 | $ 290 | 124,690 | 652,956 | $ (45,937) | 731,999 |
Balance (in shares) at Jun. 30, 2022 | 29,045 | (2,773) | |||
Stock-based compensation expense | 1,282 | 1,282 | |||
Restricted stock units vested | $ 1 | (1) | |||
Restricted stock units vested (in shares) | 16 | ||||
Shares withheld for taxes paid on stock awards | (380) | (380) | |||
Net income | 23,206 | 23,206 | |||
Balance at Sep. 30, 2022 | $ 291 | $ 125,591 | $ 676,162 | $ (45,937) | $ 756,107 |
Balance (in shares) at Sep. 30, 2022 | 29,061 | (2,773) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows provided by Operating Activities: | ||
Net income | $ 70,396 | $ 47,521 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,000 | 9,165 |
Adjustments to credit losses reserve | 2,658 | 1,704 |
Stock-based compensation expense | 4,072 | 3,118 |
Loss on disposal of fixed assets | 16 | 2 |
Changes in assets and liabilities: | ||
Accounts receivable | (41,782) | 22,437 |
Inventories | (6,761) | (34,507) |
Prepaid expenses and other current assets | (79) | (360) |
Other non-current assets | 5 | 314 |
Accounts payable | (23,268) | (49,997) |
Accrued expenses and other liabilities | 1,432 | 9,437 |
Net cash provided by operating activities | 15,689 | 8,834 |
Cash Flows used in Investing Activities: | ||
Purchases of equipment and capitalized software | (6,975) | (7,092) |
Proceeds from life insurance | 1,500 | |
Net cash used in investing activities | (6,975) | (5,592) |
Cash Flows used in Financing Activities: | ||
Proceeds from short-term borrowings | 36,463 | |
Repayment of short-term borrowings | (36,463) | |
Dividend payments | (8,375) | |
Payments of payroll taxes on stock-based compensation through shares withheld | (834) | (794) |
Net cash used in financing activities | (834) | (9,169) |
Increase (decrease) in cash and cash equivalents | 7,880 | (5,927) |
Cash and cash equivalents, beginning of year | 108,310 | 95,655 |
Cash and cash equivalents, end of period | 116,190 | 89,728 |
Non-cash Investing and Financing Activities: | ||
Accrued capital expenditures | 362 | 394 |
Supplemental Cash Flow Information: | ||
Income taxes paid | 30,759 | $ 20,600 |
Interest paid | $ 4 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2022 | |
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, 2021, 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 for the year ended December 31, 2021. 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, 2022 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2022. 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. Actual results could differ from those estimates and assumptions. 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, 2022 | |
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, 2022 and 2021, along with the reportable segment for each category. Three Months Ended September 30, 2022 Business Solutions Enterprise Solutions Public Sector Solutions Total Notebooks/Mobility $ 120,689 $ 95,017 $ 60,960 $ 276,666 Desktops 21,151 37,045 13,113 71,309 Software 36,965 36,996 12,186 86,147 Servers/Storage 27,016 15,857 12,213 55,086 Net/Com Products 27,732 19,625 8,189 55,546 Displays and Sound 28,377 30,011 20,633 79,021 Accessories 33,007 46,051 17,808 96,866 Other Hardware/Services 20,879 24,908 9,264 55,051 Total net sales $ 315,816 $ 305,510 $ 154,366 $ 775,692 Three Months Ended September 30, 2021 Business Solutions Enterprise Solutions Public Sector Solutions 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 The following table represents a disaggregation of revenue from arrangements with customers for the nine months ended September 30, 2022 and 2021, along with the reportable segment for each category. Nine Months Ended September 30, 2022 Business Solutions Enterprise Solutions Public Sector Solutions Total Notebooks/Mobility $ 374,298 $ 333,764 $ 185,021 $ 893,083 Desktops 68,459 134,541 44,368 247,368 Software 111,440 79,578 27,963 218,981 Servers/Storage 78,878 43,085 31,441 153,404 Net/Com Products 74,789 66,060 22,856 163,705 Displays and Sound 92,170 104,822 53,263 250,255 Accessories 100,904 151,786 46,423 299,113 Other Hardware/Services 63,672 76,225 26,739 166,636 Total net sales $ 964,610 $ 989,861 $ 438,074 $ 2,392,545 Nine Months Ended September 30, 2021 Business Solutions Enterprise Solutions Public Sector Solutions 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 Contract Balances The following table provides information about contract liabilities from arrangements with customers as of September 30, 2022 and December 31, 2021. September 30, 2022 December 31, 2021 Contract liabilities, which are included in "Accrued expenses and other liabilities" $ 5,027 $ 8,628 Changes in the contract liability balances during the nine months ended September 30, 2022 and 2021 are as follows: 2022 Balance at December 31, 2021 $ 8,628 Cash received in advance and not recognized as revenue 18,943 Amounts recognized as revenue as performance obligations satisfied (22,544) Balance at September 30, 2022 $ 5,027 2021 Balance at December 31, 2020 $ 3,509 Cash received in advance and not recognized as revenue 19,838 Amounts recognized as revenue as performance obligations satisfied (15,524) Balance at September 30, 2021 $ 7,823 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 2021 2022 2021 Numerator: Net income $ 23,206 $ 20,045 $ 70,396 $ 47,521 Denominator: Denominator for basic earnings per share 26,279 26,197 26,267 26,186 Dilutive effect of employee stock awards 176 171 165 176 Denominator for diluted earnings per share 26,455 26,368 26,432 26,362 Earnings per share: Basic $ 0.88 $ 0.77 $ 2.68 $ 1.81 Diluted $ 0.88 $ 0.76 $ 2.66 $ 1.80 For the three and nine months ended September 30, 2022 and 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, 2022 | |
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, 2022 was $1,432 and a corresponding lease liability of $1,432 associated with related party leases. As of September 30, 2022, 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, 2022 and 2021: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Related Parties Others Total Related Parties Others Total Lease Cost Capitalized operating lease cost $ 313 $ 693 $ 1,006 $ 940 $ 2,112 $ 3,052 Short-term lease cost 107 58 165 321 100 421 Total lease cost $ 420 $ 751 $ 1,171 $ 1,261 $ 2,212 $ 3,473 Other Information Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: Operating cash flows $ 313 $ 713 $ 1,026 $ 940 $ 2,147 $ 3,087 Weighted-average remaining lease term (in years): Capitalized operating leases 1.17 4.26 3.78 Weighted-average discount rate: Capitalized operating leases 3.92% 4.03% 4.02% 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% As of September 30, 2022, For the Years Ended December 31, Related Parties Others Total 2022, excluding the nine months ended September 30, 2022 $ 313 $ 699 $ 1,012 2023 1,149 2,260 3,409 2024 — 1,860 1,860 2025 — 1,798 1,798 2026 — 1,115 1,115 Thereafter — 575 575 $ 1,462 $ 8,307 $ 9,769 Imputed interest (678) Lease liability balance at September 30, 2022 $ 9,091 As of September 30, 2022, the ROU asset had a balance of $8,495. The long-term lease liability was $5,620 and the short-term lease liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, was $3,471. 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2022 | |
Segment Information | |
Segment Information | 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 the Company’s 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 the Company’s reportable operating segments for the three and nine months ended September 30, 2022 and 2021 is shown below: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Net sales: Business Solutions $ 315,816 $ 281,425 $ 964,610 $ 795,017 Enterprise Solutions 305,510 309,722 989,861 882,168 Public Sector Solutions 154,366 160,221 438,074 415,236 Total net sales $ 775,692 $ 751,368 $ 2,392,545 $ 2,092,421 Operating income (loss): Business Solutions $ 19,278 $ 12,774 $ 62,230 $ 29,559 Enterprise Solutions 12,401 19,151 42,103 52,203 Public Sector Solutions 4,211 619 4,156 (4,250) Headquarters/Other (4,151) (5,216) (11,845) (12,300) Total operating income 31,739 27,328 96,644 65,212 Other expenses, net 308 — 319 7 Income before taxes $ 32,047 $ 27,328 $ 96,963 $ 65,219 Selected operating expense: Depreciation and amortization: Business Solutions $ 167 $ 169 $ 502 $ 487 Enterprise Solutions 482 560 1,517 1,888 Public Sector Solutions 20 19 59 43 Headquarters/Other 2,351 2,199 6,922 6,747 Total depreciation and amortization $ 3,020 $ 2,947 $ 9,000 $ 9,165 Total assets: Business Solutions $ 451,872 $ 375,557 Enterprise Solutions 647,592 603,173 Public Sector Solutions 113,820 91,227 Headquarters/Other (79,159) (56,031) Total assets $ 1,134,125 $ 1,013,926 The assets of the Company’s 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 and cash equivalents, inventories, property and equipment, ROU assets, and intercompany balance, net. As of September 30, 2022 and 2021, total assets for the Headquarters/Other group were presented net of intercompany balance eliminations of $62,154 , and $39,209 , respectively. The Company’s capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade our management information systems. These information systems serve all of the Company’s segments, to varying degrees, and accordingly, the CODM does not evaluate capital expenditures on a segment-by-segment basis. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 6–Commitments and Contingencies The Company is subject to various legal proceedings and 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 the Company’s 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 the Company’s financial position, results of operations, and/or cash flows. |
BANK BORROWINGS
BANK BORROWINGS | 9 Months Ended |
Sep. 30, 2022 | |
Bank Borrowings | |
Bank Borrowings | Note 7–Bank Borrowings The Company has a $50,000 credit facility collateralized by its account receivables that expires March 31, 2025. This facility can be increased, at the Company’s 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, plus a spread based on our funded debt ratio, or in the absence of LIBOR, the prime rate (6.25% at September 30, 2022). 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 consolidated trailing twelve months Adjusted Earnings Before Interest Expense, Taxes, Depreciation, Amortization, and Special Charges (“Adjusted EBITDA”). The maximum allowable funded debt ratio under the agreement is 2.0 to 1.0. Decreases in the Company’s consolidated trailing twelve months Adjusted EBITDA could limit its potential borrowing capacity under the credit facility. As of September 30, 2022, the Company was in compliance with all financial covenants contained in the agreement governing the credit facility. During the nine months ended September 30, 2022, the Company borrowed $36,463 under the credit facility, which was fully repaid prior to September 30, 2022. The Company had no outstanding borrowings under the credit facility as of September 30, 2022 or 2021, and accordingly, the entire $50,000 credit facility was available for borrowings on such date. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2021, 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 for the year ended December 31, 2021. 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, 2022 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2022. |
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. Actual results could differ from those estimates and assumptions. |
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, 2022 | |
Revenue | |
Schedule of disaggregation of revenue from contracts with customers | Three Months Ended September 30, 2022 Business Solutions Enterprise Solutions Public Sector Solutions Total Notebooks/Mobility $ 120,689 $ 95,017 $ 60,960 $ 276,666 Desktops 21,151 37,045 13,113 71,309 Software 36,965 36,996 12,186 86,147 Servers/Storage 27,016 15,857 12,213 55,086 Net/Com Products 27,732 19,625 8,189 55,546 Displays and Sound 28,377 30,011 20,633 79,021 Accessories 33,007 46,051 17,808 96,866 Other Hardware/Services 20,879 24,908 9,264 55,051 Total net sales $ 315,816 $ 305,510 $ 154,366 $ 775,692 Three Months Ended September 30, 2021 Business Solutions Enterprise Solutions Public Sector Solutions 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 Nine Months Ended September 30, 2022 Business Solutions Enterprise Solutions Public Sector Solutions Total Notebooks/Mobility $ 374,298 $ 333,764 $ 185,021 $ 893,083 Desktops 68,459 134,541 44,368 247,368 Software 111,440 79,578 27,963 218,981 Servers/Storage 78,878 43,085 31,441 153,404 Net/Com Products 74,789 66,060 22,856 163,705 Displays and Sound 92,170 104,822 53,263 250,255 Accessories 100,904 151,786 46,423 299,113 Other Hardware/Services 63,672 76,225 26,739 166,636 Total net sales $ 964,610 $ 989,861 $ 438,074 $ 2,392,545 Nine Months Ended September 30, 2021 Business Solutions Enterprise Solutions Public Sector Solutions 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 |
Schedule of changes in contract liability balances | September 30, 2022 December 31, 2021 Contract liabilities, which are included in "Accrued expenses and other liabilities" $ 5,027 $ 8,628 Changes in the contract liability balances during the nine months ended September 30, 2022 and 2021 are as follows: 2022 Balance at December 31, 2021 $ 8,628 Cash received in advance and not recognized as revenue 18,943 Amounts recognized as revenue as performance obligations satisfied (22,544) Balance at September 30, 2022 $ 5,027 2021 Balance at December 31, 2020 $ 3,509 Cash received in advance and not recognized as revenue 19,838 Amounts recognized as revenue as performance obligations satisfied (15,524) Balance at September 30, 2021 $ 7,823 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share | |
Computation of basic and diluted earnings per share | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net income $ 23,206 $ 20,045 $ 70,396 $ 47,521 Denominator: Denominator for basic earnings per share 26,279 26,197 26,267 26,186 Dilutive effect of employee stock awards 176 171 165 176 Denominator for diluted earnings per share 26,455 26,368 26,432 26,362 Earnings per share: Basic $ 0.88 $ 0.77 $ 2.68 $ 1.81 Diluted $ 0.88 $ 0.76 $ 2.66 $ 1.80 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
Schedule of lease cost | Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Related Parties Others Total Related Parties Others Total Lease Cost Capitalized operating lease cost $ 313 $ 693 $ 1,006 $ 940 $ 2,112 $ 3,052 Short-term lease cost 107 58 165 321 100 421 Total lease cost $ 420 $ 751 $ 1,171 $ 1,261 $ 2,212 $ 3,473 Other Information Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: Operating cash flows $ 313 $ 713 $ 1,026 $ 940 $ 2,147 $ 3,087 Weighted-average remaining lease term (in years): Capitalized operating leases 1.17 4.26 3.78 Weighted-average discount rate: Capitalized operating leases 3.92% 4.03% 4.02% 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% |
Schedule of future lease payments on capitalized operating leases | For the Years Ended December 31, Related Parties Others Total 2022, excluding the nine months ended September 30, 2022 $ 313 $ 699 $ 1,012 2023 1,149 2,260 3,409 2024 — 1,860 1,860 2025 — 1,798 1,798 2026 — 1,115 1,115 Thereafter — 575 575 $ 1,462 $ 8,307 $ 9,769 Imputed interest (678) Lease liability balance at September 30, 2022 $ 9,091 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Information | |
Segment information applicable to reportable operating segments | Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Net sales: Business Solutions $ 315,816 $ 281,425 $ 964,610 $ 795,017 Enterprise Solutions 305,510 309,722 989,861 882,168 Public Sector Solutions 154,366 160,221 438,074 415,236 Total net sales $ 775,692 $ 751,368 $ 2,392,545 $ 2,092,421 Operating income (loss): Business Solutions $ 19,278 $ 12,774 $ 62,230 $ 29,559 Enterprise Solutions 12,401 19,151 42,103 52,203 Public Sector Solutions 4,211 619 4,156 (4,250) Headquarters/Other (4,151) (5,216) (11,845) (12,300) Total operating income 31,739 27,328 96,644 65,212 Other expenses, net 308 — 319 7 Income before taxes $ 32,047 $ 27,328 $ 96,963 $ 65,219 Selected operating expense: Depreciation and amortization: Business Solutions $ 167 $ 169 $ 502 $ 487 Enterprise Solutions 482 560 1,517 1,888 Public Sector Solutions 20 19 59 43 Headquarters/Other 2,351 2,199 6,922 6,747 Total depreciation and amortization $ 3,020 $ 2,947 $ 9,000 $ 9,165 Total assets: Business Solutions $ 451,872 $ 375,557 Enterprise Solutions 647,592 603,173 Public Sector Solutions 113,820 91,227 Headquarters/Other (79,159) (56,031) Total assets $ 1,134,125 $ 1,013,926 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of revenue | ||||
Net sales | $ 775,692 | $ 751,368 | $ 2,392,545 | $ 2,092,421 |
Notebooks/Mobility | ||||
Disaggregation of revenue | ||||
Net sales | 276,666 | 304,119 | 893,083 | 792,093 |
Desktops | ||||
Disaggregation of revenue | ||||
Net sales | 71,309 | 68,121 | 247,368 | 195,531 |
Software | ||||
Disaggregation of revenue | ||||
Net sales | 86,147 | 61,268 | 218,981 | 189,266 |
Servers/Storage | ||||
Disaggregation of revenue | ||||
Net sales | 55,086 | 51,742 | 153,404 | 151,945 |
Net/Com Products | ||||
Disaggregation of revenue | ||||
Net sales | 55,546 | 53,237 | 163,705 | 152,090 |
Displays and Sound | ||||
Disaggregation of revenue | ||||
Net sales | 79,021 | 75,098 | 250,255 | 200,181 |
Accessories | ||||
Disaggregation of revenue | ||||
Net sales | 96,866 | 86,392 | 299,113 | 247,836 |
Other Hardware/Services | ||||
Disaggregation of revenue | ||||
Net sales | 55,051 | 51,391 | 166,636 | 163,479 |
Business Solutions | ||||
Disaggregation of revenue | ||||
Net sales | 315,816 | 281,425 | 964,610 | 795,017 |
Business Solutions | Notebooks/Mobility | ||||
Disaggregation of revenue | ||||
Net sales | 120,689 | 109,910 | 374,298 | 301,746 |
Business Solutions | Desktops | ||||
Disaggregation of revenue | ||||
Net sales | 21,151 | 22,329 | 68,459 | 64,095 |
Business Solutions | Software | ||||
Disaggregation of revenue | ||||
Net sales | 36,965 | 28,761 | 111,440 | 89,025 |
Business Solutions | Servers/Storage | ||||
Disaggregation of revenue | ||||
Net sales | 27,016 | 25,775 | 78,878 | 67,434 |
Business Solutions | Net/Com Products | ||||
Disaggregation of revenue | ||||
Net sales | 27,732 | 21,091 | 74,789 | 61,855 |
Business Solutions | Displays and Sound | ||||
Disaggregation of revenue | ||||
Net sales | 28,377 | 26,321 | 92,170 | 71,920 |
Business Solutions | Accessories | ||||
Disaggregation of revenue | ||||
Net sales | 33,007 | 28,865 | 100,904 | 82,192 |
Business Solutions | Other Hardware/Services | ||||
Disaggregation of revenue | ||||
Net sales | 20,879 | 18,373 | 63,672 | 56,750 |
Enterprise Solutions | ||||
Disaggregation of revenue | ||||
Net sales | 305,510 | 309,722 | 989,861 | 882,168 |
Enterprise Solutions | Notebooks/Mobility | ||||
Disaggregation of revenue | ||||
Net sales | 95,017 | 117,017 | 333,764 | 293,680 |
Enterprise Solutions | Desktops | ||||
Disaggregation of revenue | ||||
Net sales | 37,045 | 34,473 | 134,541 | 103,740 |
Enterprise Solutions | Software | ||||
Disaggregation of revenue | ||||
Net sales | 36,996 | 22,829 | 79,578 | 71,496 |
Enterprise Solutions | Servers/Storage | ||||
Disaggregation of revenue | ||||
Net sales | 15,857 | 12,560 | 43,085 | 56,822 |
Enterprise Solutions | Net/Com Products | ||||
Disaggregation of revenue | ||||
Net sales | 19,625 | 23,887 | 66,060 | 64,404 |
Enterprise Solutions | Displays and Sound | ||||
Disaggregation of revenue | ||||
Net sales | 30,011 | 33,490 | 104,822 | 86,238 |
Enterprise Solutions | Accessories | ||||
Disaggregation of revenue | ||||
Net sales | 46,051 | 43,207 | 151,786 | 131,394 |
Enterprise Solutions | Other Hardware/Services | ||||
Disaggregation of revenue | ||||
Net sales | 24,908 | 22,259 | 76,225 | 74,394 |
Public Sector Solutions | ||||
Disaggregation of revenue | ||||
Net sales | 154,366 | 160,221 | 438,074 | 415,236 |
Public Sector Solutions | Notebooks/Mobility | ||||
Disaggregation of revenue | ||||
Net sales | 60,960 | 77,192 | 185,021 | 196,667 |
Public Sector Solutions | Desktops | ||||
Disaggregation of revenue | ||||
Net sales | 13,113 | 11,319 | 44,368 | 27,696 |
Public Sector Solutions | Software | ||||
Disaggregation of revenue | ||||
Net sales | 12,186 | 9,678 | 27,963 | 28,745 |
Public Sector Solutions | Servers/Storage | ||||
Disaggregation of revenue | ||||
Net sales | 12,213 | 13,407 | 31,441 | 27,689 |
Public Sector Solutions | Net/Com Products | ||||
Disaggregation of revenue | ||||
Net sales | 8,189 | 8,259 | 22,856 | 25,831 |
Public Sector Solutions | Displays and Sound | ||||
Disaggregation of revenue | ||||
Net sales | 20,633 | 15,287 | 53,263 | 42,023 |
Public Sector Solutions | Accessories | ||||
Disaggregation of revenue | ||||
Net sales | 17,808 | 14,320 | 46,423 | 34,250 |
Public Sector Solutions | Other Hardware/Services | ||||
Disaggregation of revenue | ||||
Net sales | $ 9,264 | $ 10,759 | $ 26,739 | $ 32,335 |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Change in contract liability | |||
Beginning balance - Contract liability | $ 8,628 | $ 3,509 | |
Cash received in advance and not recognized as revenue | 18,943 | 19,838 | |
Amounts recognized as revenue as performance obligations satisfied | (22,544) | (15,524) | |
Ending balance - Contract liability | 5,027 | $ 7,823 | |
Accrued expenses and other liabilities | |||
Contract liabilities | |||
Contract liabilities | $ 5,027 | $ 8,628 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||
Net income | $ 23,206 | $ 20,045 | $ 70,396 | $ 47,521 |
Denominator: | ||||
Denominator for basic earnings per share | 26,279 | 26,197 | 26,267 | 26,186 |
Dilutive effect of unvested employee stock awards | 176 | 171 | 165 | 176 |
Denominator for diluted earnings per share | 26,455 | 26,368 | 26,432 | 26,362 |
Earnings per share: | ||||
Basic | $ 0.88 | $ 0.77 | $ 2.68 | $ 1.81 |
Diluted | $ 0.88 | $ 0.76 | $ 2.66 | $ 1.80 |
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, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) lease | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Leases | |||||
Right-of-use assets | $ 8,495 | $ 10,218 | $ 8,495 | $ 10,218 | $ 9,579 |
Lease liability | 9,091 | $ 9,091 | |||
Number of additional operating or financing leases not yet commenced | lease | 0 | ||||
Lease Cost | |||||
Capitalized operating lease cost | 1,006 | 1,066 | $ 3,052 | 3,244 | |
Short-term lease cost | 165 | 128 | 421 | 383 | |
Total lease cost | 1,171 | 1,194 | 3,473 | 3,627 | |
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: | |||||
Operating cash flows | $ 1,026 | $ 1,120 | $ 3,087 | $ 3,344 | |
Weighted-average remaining lease term - Capitalized operating leases (in years) | 3 years 9 months 10 days | 4 years 21 days | 3 years 9 months 10 days | 4 years 21 days | |
Weighted-average discount rate - Capitalized operating leases | 4.02% | 3.92% | 4.02% | 3.92% | |
Related Parties | |||||
Leases | |||||
Right-of-use assets | $ 1,432 | $ 1,432 | |||
Lease liability | 1,432 | 1,432 | |||
Lease Cost | |||||
Capitalized operating lease cost | 313 | $ 313 | 940 | $ 940 | |
Short-term lease cost | 107 | 107 | 321 | 320 | |
Total lease cost | 420 | 420 | 1,261 | 1,260 | |
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: | |||||
Operating cash flows | $ 313 | $ 313 | $ 940 | $ 940 | |
Weighted-average remaining lease term - Capitalized operating leases (in years) | 1 year 2 months 1 day | 2 years 2 months 1 day | 1 year 2 months 1 day | 2 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 | $ 693 | $ 753 | $ 2,112 | $ 2,304 | |
Short-term lease cost | 58 | 21 | 100 | 63 | |
Total lease cost | 751 | 774 | 2,212 | 2,367 | |
Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: | |||||
Operating cash flows | $ 713 | $ 807 | $ 2,147 | $ 2,404 | |
Weighted-average remaining lease term - Capitalized operating leases (in years) | 4 years 3 months 3 days | 4 years 7 months 28 days | 4 years 3 months 3 days | 4 years 7 months 28 days | |
Weighted-average discount rate - Capitalized operating leases | 4.03% | 3.92% | 4.03% | 3.92% |
LEASES - Future Lease Payments
LEASES - Future Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Future lease payments over the remaining term of capitalized operating leases | |||
2022, excluding the nine months ended September 30, 2022 | $ 1,012 | ||
2023 | 3,409 | ||
2024 | 1,860 | ||
2025 | 1,798 | ||
2026 | 1,115 | ||
Thereafter | 575 | ||
Total | 9,769 | ||
Imputed interest | (678) | ||
Lease liability balance | 9,091 | ||
Right-of-use assets | 8,495 | $ 9,579 | $ 10,218 |
Long-term lease liability | 5,620 | $ 6,789 | 7,353 |
Short-term lease liability | $ 3,471 | $ 3,502 | |
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 | |||
2022, excluding the nine months ended September 30, 2022 | $ 313 | ||
2023 | 1,149 | ||
Total | 1,462 | ||
Lease liability balance | 1,432 | ||
Right-of-use assets | 1,432 | ||
Others | |||
Future lease payments over the remaining term of capitalized operating leases | |||
2022, excluding the nine months ended September 30, 2022 | 699 | ||
2023 | 2,260 | ||
2024 | 1,860 | ||
2025 | 1,798 | ||
2026 | 1,115 | ||
Thereafter | 575 | ||
Total | $ 8,307 |
SEGMENT INFORMATION - Segment I
SEGMENT INFORMATION - Segment Information Applicable to Reportable Operating Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) segment | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) segment | Dec. 31, 2021 USD ($) | |
Segment Reporting Information | |||||
Number of reportable segments | segment | 3 | 3 | 3 | 3 | |
Number of operating segments | segment | 3 | 3 | 3 | 3 | |
Net sales: | |||||
Net sales | $ 775,692 | $ 751,368 | $ 2,392,545 | $ 2,092,421 | |
Operating income (loss): | |||||
Operating income (loss) | 31,739 | 27,328 | 96,644 | 65,212 | |
Other expenses, net | 308 | 319 | 7 | ||
Income before taxes | 32,047 | 27,328 | 96,963 | 65,219 | |
Depreciation and amortization: | |||||
Depreciation and amortization | 3,020 | 2,947 | 9,000 | 9,165 | |
Total assets: | |||||
Total assets | 1,134,125 | 1,013,926 | 1,134,125 | 1,013,926 | $ 1,083,383 |
Business Solutions | |||||
Net sales: | |||||
Net sales | 315,816 | 281,425 | 964,610 | 795,017 | |
Enterprise Solutions | |||||
Net sales: | |||||
Net sales | 305,510 | 309,722 | 989,861 | 882,168 | |
Public Sector Solutions | |||||
Net sales: | |||||
Net sales | 154,366 | 160,221 | 438,074 | 415,236 | |
Operating Segments | Business Solutions | |||||
Net sales: | |||||
Net sales | 315,816 | 281,425 | 964,610 | 795,017 | |
Operating income (loss): | |||||
Operating income (loss) | 19,278 | 12,774 | 62,230 | 29,559 | |
Depreciation and amortization: | |||||
Depreciation and amortization | 167 | 169 | 502 | 487 | |
Total assets: | |||||
Total assets | 451,872 | 375,557 | 451,872 | 375,557 | |
Operating Segments | Enterprise Solutions | |||||
Net sales: | |||||
Net sales | 305,510 | 309,722 | 989,861 | 882,168 | |
Operating income (loss): | |||||
Operating income (loss) | 12,401 | 19,151 | 42,103 | 52,203 | |
Depreciation and amortization: | |||||
Depreciation and amortization | 482 | 560 | 1,517 | 1,888 | |
Total assets: | |||||
Total assets | 647,592 | 603,173 | 647,592 | 603,173 | |
Operating Segments | Public Sector Solutions | |||||
Net sales: | |||||
Net sales | 154,366 | 160,221 | 438,074 | 415,236 | |
Operating income (loss): | |||||
Operating income (loss) | 4,211 | 619 | 4,156 | (4,250) | |
Depreciation and amortization: | |||||
Depreciation and amortization | 20 | 19 | 59 | 43 | |
Total assets: | |||||
Total assets | 113,820 | 91,227 | 113,820 | 91,227 | |
Headquarters/Other | |||||
Operating income (loss): | |||||
Operating income (loss) | (4,151) | (5,216) | (11,845) | (12,300) | |
Depreciation and amortization: | |||||
Depreciation and amortization | 2,351 | 2,199 | 6,922 | 6,747 | |
Total assets: | |||||
Assets net of intercompany balance eliminations | (79,159) | (56,031) | (79,159) | (56,031) | |
Intersegment Elimination | |||||
Total assets: | |||||
Total assets | $ (62,154) | $ (39,209) | $ (62,154) | $ (39,209) |
BANK BORROWINGS (Details)
BANK BORROWINGS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Subordinated Borrowing | ||
Line of credit, borrowing capacity | $ 50,000 | |
Credit facility, expiration date | Mar. 31, 2025 | |
Line of credit, maximum borrowing capacity | $ 80,000 | |
Proceeds from short-term borrowings | 36,463 | |
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 | 6.25% |