PC Connection Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>PC Connection Inc. has filed its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

PC CONNECTION INC (CNXN) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. PC Connection Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on December 31st. PC Connection Inc. is incorporated in Delaware. The company's principal business address is in Merrimack, New Hampshire.

Why It Matters

For investors and stakeholders tracking PC CONNECTION INC, this filing contains several important signals. This filing provides an update on the company's financial performance and position for the first quarter of 2024. Investors and analysts can use this report to assess the company's recent operational results and make informed investment decisions.

Risk Assessment

Risk Level: — PC CONNECTION INC shows moderate risk based on this filing. The filing is a standard quarterly report and does not contain immediate red flags.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand the company's current operational health.

Key Players & Entities

• PC CONNECTION INC (company) — FILER
• 0001050377 (company) — CENTRAL INDEX KEY
• DE (company) — STATE OF INCORPORATION
• MERRIMACK (company) — CITY
• NH (company) — STATE
• 03054 (company) — ZIP
• 6036832000 (company) — BUSINESS PHONE
• 20240331 (date) — CONFORMED PERIOD OF REPORT

FAQ

Industry Context

PC Connection Inc. operates in the retail catalog and mail-order houses industry, classified under SIC code 5961.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the consolidated balance sheets for changes in assets, liabilities, and equity.
2. Analyze the consolidated statements of operations for revenue and net income trends.
3. Examine the segment information to understand performance across different business units.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-01: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the 2023 annual report.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value CNXN Nasdaq Global Select

Filing Documents

• cnxn-20240331x10q.htm (10-Q) — 1465KB
• cnxn-20240331xex10d1.htm (EX-10.1) — 17KB
• cnxn-20240331xex31d1.htm (EX-31.1) — 16KB
• cnxn-20240331xex31d2.htm (EX-31.2) — 16KB
• cnxn-20240331xex32d1.htm (EX-32.1) — 8KB
• cnxn-20240331xex32d2.htm (EX-32.2) — 8KB
• 0001558370-24-006387.txt (&nbsp;) — 5689KB
• cnxn-20240331.xsd (EX-101.SCH) — 28KB
• cnxn-20240331_cal.xml (EX-101.CAL) — 46KB
• cnxn-20240331_def.xml (EX-101.DEF) — 114KB
• cnxn-20240331_lab.xml (EX-101.LAB) — 240KB
• cnxn-20240331_pre.xml (EX-101.PRE) — 193KB
• cnxn-20240331x10q_htm.xml (XML) — 1086KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Page ITEM 1. Unaudited Condensed Consolidated Financial Statements: Condensed Consolidated Balance Sheets–March 31, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Income–Three Months Ended March 31, 2024 and 2023 2 Condensed Consolidated Statements of Other Comprehensive Income–Three Months Ended March 31, 2024 and 2023 3 Condensed Consolidated Statements of Stockholders' Equity–Three Months Ended March 31, 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows–Three Months Ended March 31, 2024 and 2023 5 Notes to Unaudited Condensed Consolidated Financial Statements 6 ITEM 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 ITEM 3 .

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 ITEM 4 .

Controls and Procedures

Controls and Procedures 26

OTHER INFORMATION

PART II OTHER INFORMATION ITEM 1 .

Legal Proceedings

Legal Proceedings 27 ITEM 1A .

Risk Factors

Risk Factors 27 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 27 ITE M 5. Other Information 27 ITEM 6 . Exhibits 28

SIGNATURES

SIGNATURES 29 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS PC CONNECTION, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET S (Unaudited) (amounts in thousands) March 31, December 31, 2024 2023 ASSETS Current Assets: Cash and cash equivalents $ 147,579 $ 144,954 Short-term investments 204,374 152,232 Accounts receivable, net 527,259 606,834 Inventories, net 123,900 124,179 Income taxes receivable 3,318 4,348 Prepaid expenses and other current assets 16,926 16,092 Total current assets 1,023,356 1,048,639 Property and equipment, net 55,529 56,658 Right-of-use assets 4,020 4,340 Goodwill 73,602 73,602 Intangibles, net 3,124 3,428 Other assets 1,434 1,714 Total Assets $ 1,161,065 $ 1,188,381 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 218,801 $ 263,682 Accrued payroll 22,607 20,440 Accrued expenses and other liabilities 48,400 43,843 Total current liabilities 289,808 327,965 Deferred income taxes 15,806 15,844 Noncurrent operating lease liabilities 2,760 3,181 Other liabilities 19 624 Total Liabilities 308,393 347,614 Stockholders' Equity: Common stock 293 293 Additional paid-in capital 132,596 130,878 Retained earnings 771,416 760,898 Accumulated other comprehensive (loss) income ( 62 ) 81 Treasury stock, at cost ( 51,571 ) ( 51,383 ) Total Stockholders' Equity 852,672 840,767 Total Liabilities and Stockholders' Equity $ 1,161,065 $ 1,188,381 See notes to unaudited condensed consolidated financial statements. 1 Table of Contents PC CONNECTION, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOM E (Unaudited) (amounts in thousands, except per share data) Three Months Ended March 31, 2024 2023 Net sales $ 632,025 $ 727,545 Cost of sales 513,953 605,249 Gross profit 118,072 122,296 Selling, general and administrative expenses 104,608 103,28

FINANCIAL INFORMATION

PART IFINANCIAL INFORMATION

inancial Statements

Item 1Financial Statements NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENT S (amounts in thousands, except per share data) Note 1– Basis of Presentation The accompanying unaudited condensed consolidated financial statements of PC Connection, Inc. and its subsidiaries, or the Company, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting and in accordance with accounting principles generally accepted in the United States of America, or 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, 2023, filed with the SEC. The accompanying unaudited 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, 2023. 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 months ended March 31, 2024 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2024. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conf

Business

Business Solutions Public Sector Solutions Total Notebooks/Mobility $ 90,231 $ 92,156 $ 38,882 $ 221,269 Desktops 38,037 18,118 8,747 64,902 Software 27,120 30,652 5,550 63,322 Servers/Storage 12,367 21,611 8,506 42,484 Net/Com Products 19,962 21,845 5,605 47,412 Displays and Sound 31,264 21,752 10,603 63,619 Accessories 41,532 30,373 7,596 79,501 Other Hardware/Services 22,146 19,362 8,008 49,516 Total net sales $ 282,659 $ 255,869 $ 93,497 $ 632,025 Three Months Ended March 31, 2023 Enterprise Solutions

Business

Business Solutions Public Sector Solutions Total Notebooks/Mobility $ 114,318 $ 94,919 $ 51,774 $ 261,011 Desktops 30,142 18,762 14,417 63,321 Software 39,234 34,576 9,917 83,727 Servers/Storage 12,507 24,291 9,987 46,785 Net/Com Products 20,532 28,304 13,320 62,156 Displays and Sound 26,720 22,813 13,202 62,735 Accessories 47,594 28,735 13,473 89,802 Other Hardware/Services 22,896 20,714 14,398 58,008 Total net sales $ 313,943 $ 273,114 $ 140,488 $ 727,545 Contract Balances The following table provides information about contract liabilities from arrangements with customers as of March 31, 2024 and December 31, 2023 (in thousands). March 31, 2024 December 31, 2023 Contract liabilities, which are included in "Accrued expenses and other liabilities" $ 8,453 $ 4,206 Changes in the contract liability balances during the three months ended March 31, 2024 and 2023 are as follows (in thousands): 2024 Balance at December 31, 2023 $ 4,206 Cash received in advance and not recognized as revenue 5,795 Amounts recognized as revenue as performance obligations satisfied ( 1,548 ) Balance at March 31, 2024 $ 8,453 2023 Balance at December 31, 2022 $ 4,266 Cash received in advance and not recognized as revenue 7,656 Amounts recognized as revenue as performance obligations satisfied ( 4,388 ) Balance at March 31, 2023 $ 7,534 8 Table of Contents Note 3–Fair Value Measurements Cash equivalents and short-term investments consist of the following (in thousands): March 31, 2024 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Money market funds $ 123,996 $ — $ — $ 123,996 Short-term investments: U.S. Government treasury securities 204,452 — ( 78 ) 204,374 Total $ 328,448 $ — $ ( 78 ) $ 328,370 December 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fai

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View this 10-Q filing on SEC EDGAR