PC Connection, Inc. Announces Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Gross Margin Guidance for the Third Quarter and Tax Rate Guidance for the Full Year of 2018
August 02, 2018 at 04:05 pm EDT
Share
PC Connection, Inc. announced consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company's net sales were $706,570,000 compared to $749,792,000 for the same period of last year. Income from operations was $24,947,000 compared to $22,440,000 for the same period of last year. Net income was $18,226,000 compared to $13,585,000 for the same period of last year. Basic and diluted earnings per share were $0.68 compared to $0.51 for the same period of last year. Net cash provided for operating activities was $4,274,000 compared to net cash used in operating activities of $35,187,000 for the same period of last year. Purchases of equipment were $4,920,000 compared to $3,044,000 for the same period of last year. EBITDA was $28,585,000 compared to $25,334,000 for the same period of last year. Adjusted EBITDA was $28,843,000 compared to $26,476,000 for the same period of last year. Adjusted net income was $14,154,000 or $0.53 per diluted share against $12,957,000 or $0.49 per diluted share a year ago. Return on equity was 11.0% compared to 12.3% for the same period of last year. Return on equity was 13.1% compared to 11.0% a year ago. Accrued capital expenditures was $1,281,000 compared to $662,000 a year ago.
For the six months, the company's net sales were $1,331,465,000 compared to $1,420,386,000 for the same period of last year. Income from operations was $40,419,000 compared to $33,892,000 for the same period of last year. Net income was $29,526,000 compared to $21,017,000 for the same period of last year. Diluted earnings per share were $1.10 compared to basic and diluted earnings per share of $0.78 for the same period of last year. EBITDA was $97,401,000 compared to $89,723,000 for the same period of last year. Adjusted EBITDA was $100,918,000 compared to $94,017,000 for the same period of last year. Net cash provided for operating activities was $41,518,000 compared to net cash used in operating activities of $9,758,000 for the same period of last year. Purchases of equipment were $9,927,000 compared to $4,531,000 for the same period of last year. Total book value per share as on June 30, 2018 was $19.09 against $17.07 as on June 30, 2017. Tangible book value per share as on June 30, 2018 was $15.94 against $17.07 as on June 30, 2017. Accrued capital expenditures were $1,281,000 compared to $662,000 a year ago.
The company expects third quarter gross margins to be similar to 2018 year-to-date levels.
The company expects tax rate for the year 2018 to be in the range of 27% to 29%.
PC Connection, Inc. delivers custom-configured computer systems overnight from its ISO 9001:2015 certified technical configuration lab at its distribution center in Wilmington, Ohio. The Company provides a range of information technology (IT) solutions, from the desktop to the cloud, including computer systems, data center solutions, software and peripheral equipment, networking communication, and other products and accessories, which the Company purchases from manufacturers, distributors and other suppliers. The Company operates through three segments: Connection Enterprise Solutions, Connection Business Solutions and Connection Public Sector Solutions. Connection Enterprise Solutions segment is engaged in serving large enterprise customers. Connection Business Solutions segment is engaged in serving small to medium-sized businesses (SMBs). Connection Public Sector Solutions segment is engaged in serving federal, state, and local government and educational institutions.
PC Connection, Inc. Announces Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Gross Margin Guidance for the Third Quarter and Tax Rate Guidance for the Full Year of 2018