PC Connection Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>PC Connection Inc. has submitted its 2023 Form 10-K, detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

PC CONNECTION INC (CNXN) filed a Annual Report (10-K) with the SEC on March 7, 2024. PC Connection Inc. filed its annual report on Form 10-K for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 730 Milford Rd, Merrimack, NH 03054. PC Connection Inc. is classified under SIC code 5961 as a Retail - Catalog & Mail-Order House. The report includes data related to various financial statement line items, including Allowance for Credit Loss and Contract with Customer Refund Liability for multiple fiscal years.

Why It Matters

For investors and stakeholders tracking PC CONNECTION INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of PC Connection Inc.'s financial health, operational results, and strategic positioning for the past fiscal year, which is crucial for investors and stakeholders to assess the company's performance and future prospects. The detailed financial data, including historical comparisons and specific line items, allows for a thorough analysis of trends, risks, and the company's ability to manage its liabilities and equity.

Risk Assessment

Risk Level: medium — PC CONNECTION INC shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not inherently signal immediate positive or negative developments beyond the typical disclosure of a company's annual performance and position.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand PC Connection Inc.'s performance and outlook for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-07 — Filing Date (Date of submission)
• 5961 — SIC Code (Industry classification)

Key Players & Entities

• PC CONNECTION INC (company) — Filer name
• CNXN (company) — Ticker symbol
• 20231231 (date) — Fiscal year end
• 20240307 (date) — Filing date
• 730 MILFORD RD (address) — Business address
• MERRIMACK (location) — Business city
• NH (location) — Business state
• 03054 (postal_code) — Business zip code

FAQ

Industry Context

PC Connection Inc. operates in the retail sector, specifically catalog and mail-order houses, indicating a business model focused on direct-to-consumer or business sales through non-storefront channels.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and operations annually.

What Investors Should Do

1. Analyze the financial statements for revenue trends, profitability, and balance sheet health.
2. Review management's discussion and analysis (MD&A) for insights into operational performance and strategic initiatives.
3. Examine the risk factors section for potential challenges and uncertainties facing the company.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-07: Filing Date — Date PC Connection Inc. submitted its 10-K to the SEC.

Year-Over-Year Comparison

This is the initial filing provided, so a comparison to a previous filing is not possible with the given data.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value CNXN Nasdaq Global Select
• $45.10 — e registrant on June 30, 2023, based on $45.10 per share, the last reported sale price

Filing Documents

• cnxn-20231231x10k.htm (10-K) — 2777KB
• cnxn-20231231xex21d1.htm (EX-21.1) — 5KB
• cnxn-20231231xex23d1.htm (EX-23.1) — 3KB
• cnxn-20231231xex31d1.htm (EX-31.1) — 16KB
• cnxn-20231231xex31d2.htm (EX-31.2) — 16KB
• cnxn-20231231xex32d1.htm (EX-32.1) — 6KB
• cnxn-20231231xex32d2.htm (EX-32.2) — 6KB
• cnxn-20231231xex97d1.htm (EX-97.1) — 21KB
• cnxn-20231231x10k002.jpg (GRAPHIC) — 59KB
• 0001558370-24-002727.txt (&nbsp;) — 11158KB
• cnxn-20231231.xsd (EX-101.SCH) — 53KB
• cnxn-20231231_cal.xml (EX-101.CAL) — 80KB
• cnxn-20231231_def.xml (EX-101.DEF) — 231KB
• cnxn-20231231_lab.xml (EX-101.LAB) — 468KB
• cnxn-20231231_pre.xml (EX-101.PRE) — 393KB
• cnxn-20231231x10k_htm.xml (XML) — 2346KB

Business

Business 1 ITEM 1A.

Risk Factors

Risk Factors 14 ITEM 1B. Unresolved Staff Comments 26 ITEM 1C. Cybersecurity 26 ITEM 2.

Properties

Properties 27 ITEM 3.

Legal Proceedings

Legal Proceedings 27 ITEM 4. Mine Safety Disclosures 27 PART II ITEM 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 28 ITEM 6. [Reserved] 29 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 ITEM 7A. Quantitative and Qualitative Disclosure About Market Risk 43 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 43 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 43 ITEM 9A.

Controls and Procedures

Controls and Procedures 43 ITEM 9B. Other Information 46 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 46 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 47 ITEM 11.

Executive Compensation

Executive Compensation 47 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 47 ITEM 13. Certain Relationships and Related Transactions and Director Independence 48 ITEM 14. Principal Accounting Fees and Services 48 PART IV ITEM 15. Exhibits and Financial Statement Schedules 49 ITEM 16. Form 10-K Summary 52

SIGNATURES

SIGNATURES 53 Table of Contents CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and include statements concerning, among other things, our future financial results, business plans (including statements regarding new products and services we may offer and future expenditures, costs and investments), liabilities, impairment charges, competition and the expected impact of current macroeconomic conditions on our businesses and results of operations. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "would," "should," "expects," "plans," "could," "intends," "target," "projects," "believes," "estimates," "anticipates," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These statements reflect our current views and are based on assumptions as of the date of this report. Such assumptions are based upon internal estimates and other analyses of current market conditions and trends, management expectations, plans, and strategies, economic conditions, and other factors. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements. Such differences may result from actions taken by us, including expense reduction or strategic initiatives (including reductions in force, capital investments and new or expanded product offerings or services), the execution of our business plans (including our in

Business

Item 1. Business GENERAL We are a Fortune 1000 Global Solutions Provider that simplifies the IT customer experience, guiding the connection between people and technology. Our dedicated account managers partner with customers to design, deploy, and support cutting-edge IT environments using the latest hardware, software, and services. We provide a wide range of IT solutions, from the desktop to the cloud—including computer systems, data center solutions, software and peripheral equipment, networking communications, and other products and accessories that we purchase from manufacturers, distributors, and other suppliers. In 2023, we restructured and combined our Technology Solutions Group and Technical Sales Organization into one organization to be referred to as our Technology Solutions Organization, or TSO. Our TSO and state-of-the-art Technology Integration and Distribution Center, or TIDC, with ISO 9001:2015 certified technical configuration lab offer end-to-end services related to the design, configuration, and implementation of IT solutions. Our team also provides a comprehensive portfolio of managed services and professional services. These services are performed by our personnel and by third-party providers. Our GlobalServe offering ensures worldwide coverage for our multinational customers, delivering global procurement solutions through our network of in-country suppliers in over 150 countries. The "Connection" brand includes Connection Enterprise Solutions, Connection Business Solutions, and Connection Public Sector Solutions. We united all of our subsidiaries into one cohesive brand, reflecting the promise of our blue arc and our mission to connect people with technology that enhances growth, elevates productivity, and empowers innovation. These entities represent our three operating segments and their respective markets: Connection Enterprise Solutions – serving large enterprise customers Connection Business Solutions – serving small to medium-si

View Full Filing

View this 10-K filing on SEC EDGAR