PC Connection, Inc. Announces Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2018; Provides Tax Rate Guidance for the Remainder of 2018
May 03, 2018 at 04:05 pm EDT
Share
PC Connection, Inc. announced unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, net income increased by 52.1% to $11.3 million, or $0.42 per basic and diluted share, compared to net income of $7.4 million, or $0.28 per basic and diluted share for the prior year's quarter. Prior to the impact of the new accounting standard, basic and diluted EPS would have been $0.41 per share. Net sales as presented for the quarter ended March 31, 2018 were $624.9 million. Net sales prior to the impact of the new revenue recognition standard for the quarter ended March 31, 2018 increased by 4.5% to $700.5 million, compared to $670.6 million for the prior year's quarter. Operating income as presented for the quarter ended March 31, 2018 was $15.5 million. Operating income prior to the impact of the new revenue recognition standard was $15.0 million, compared to $11.5 million in the same quarter a year ago. Net income prior to the impact of the new revenue recognition standard was $10.9 million, compared to $7.4 million in the first quarter a year ago, an increase of 47%. EBITDA was at $18.914 million against $14.35 million reported last year. Net cash provided by operating activities for the quarter was at $37.244 million against $25.425 million reported last year. Purchases of equipment was at $5.01 million against $1.49 million reported last year. Adjusted EBITDA was $19,121,000 compared to $14,537,000 a year ago. Moving to capital expenditures. During first quarter of 2018, the company capitalized $2 million for new ERP system upgrade that is in process.
The company expect tax rate for the remainder of 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 Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2018; Provides Tax Rate Guidance for the Remainder of 2018