PCM, INC.

CIK:0000937941|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Net sales	$ 548,326	$ 546,430	$ 1,082,315	$ 1,089,262
Cost of goods sold	457,367	456,013	908,242	915,249
Gross profit	90,959	90,417	174,073	174,013
Selling, general and administrative expenses	78,090	77,222	152,777	154,576
Operating profit	12,869	13,195	21,296	19,437
Interest expense, net	2,293	2,315	4,582	4,777
Equity income from unconsolidated affiliate	425	129	698	304
Income before income taxes	11,001	11,009	17,412	14,964
Income tax expense	2,799	3,126	4,535	4,270
Net income	$ 8,202	$ 7,883	$ 12,877	$ 10,694
Basic and Diluted Earnings Per Common Share
Basic	$ 0.67	$ 0.66	$ 1.05	$ 0.90
Diluted	$ 0.62	$ 0.64	$ 0.97	$ 0.88
Weighted average number of common shares outstanding:
Basic	12,289	11,912	12,253	11,878
Diluted	13,242	12,259	13,211	12,145

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash Flows From Operating Activities
Net income	$ 12,877	$ 10,694
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,093	6,913
Equity income from unconsolidated affiliate	(698)	(304)
Distribution from equity method investee	279	162
Provision for deferred income taxes	649	984
Non-cash stock-based compensation	1,570	1,432
Change in operating assets and liabilities:
Accounts receivable	(35,340)	(82,414)
Inventories	8,785	24,980
Prepaid expenses and other current assets	(635)	135
Other assets	3,986	1,571
Accounts payable	27,216	102,681
Accrued expenses and other current liabilities	(9,477)	1,247
Deferred revenue	(851)	4,291
Total adjustments	1,577	61,678
Net cash provided by operating activities	14,454	72,372
Cash Flows From Investing Activities
Purchases of property and equipment	(3,281)	(2,358)
Acquisition of Stack Technology		(166)
Net cash used in investing activities	(3,281)	(2,524)
Cash Flows From Financing Activities
Net payments under line of credit	(11,295)	(64,478)
Borrowing under note payable	10,000
Payments under notes payable	(1,656)	(1,638)
Change in book overdraft	(6,566)	1,952
Payments of earn-out liability		(2,199)
Payments of obligations under capital lease	(761)	(349)
Proceeds from stock issued under stock option plans	825	261
Payment for deferred financing costs	(108)	(43)
Payment of taxes related to net-settled stock awards	(1,504)	(450)
Net cash used in financing activities	(11,065)	(66,944)
Effect of foreign currency on cash flow	695	(514)
Net change in cash and cash equivalents	803	2,390
Cash and cash equivalents at beginning of the period	6,032	9,113
Cash and cash equivalents at end of the period	6,835	11,503
Supplemental Cash Flow Information
Interest paid	4,382	4,579
Income taxes paid (refund), net	8,578	(1,558)
Supplemental Non-Cash Investing and Financing Activities
Financed and accrued purchases of property and equipment	$ 638	$ 1,134

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 6,835	$ 6,032
Accounts receivable, net of allowances of $1,730 and $1,714	498,827	463,487
Inventories	52,832	61,617
Prepaid expenses and other current assets	9,170	8,535
Total current assets	567,664	539,671
Property and equipment, net	68,062	69,286
Goodwill	87,397	87,226
Intangible assets, net	7,144	8,103
Deferred income taxes	1,384	1,483
Investment and other assets	44,252	15,181
Total assets	775,903	720,950
Current liabilities:
Accounts payable	377,862	357,212
Accrued expenses and other current liabilities	61,454	63,213
Deferred revenue	7,115	7,966
Line of credit	77,104	88,399
Notes payable - current	3,569	3,283
Total current liabilities	527,104	520,073
Notes payable	37,569	29,507
Other long-term liabilities	41,262	16,583
Deferred income taxes	2,424	1,894
Total liabilities	608,359	568,057
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; none issued and outstanding
Common stock, $0.001 par value; 30,000,000 shares authorized; 17,718,443 and 17,573,700 shares issued; 12,327,791 and 12,183,048 shares outstanding	18	18
Additional paid-in capital	139,597	138,703
Treasury stock, at cost: 5,390,652 shares	(38,536)	(38,536)
Accumulated other comprehensive loss	(433)	(1,313)
Retained earnings	66,898	54,021
Total stockholders' equity	167,544	152,893
Total liabilities and stockholders' equity	$ 775,903	$ 720,950