PC nection(CNXN)

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Should Value Investors Buy PC Connection (CNXN) Stock?
ZACKS· 2024-09-16 14:47
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-a ...
Are Investors Undervaluing PC Connection (CNXN) Right Now?
ZACKS· 2024-08-19 14:45
Core Viewpoint - The article emphasizes the importance of value investing and highlights PC Connection (CNXN) as a strong value stock based on various valuation metrics [1][2][8]. Valuation Metrics - PC Connection (CNXN) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The Forward P/E ratio for CNXN is 18.15, which is slightly lower than the industry average of 18.27. Over the past year, CNXN's Forward P/E has ranged from 15.13 to 21.07, with a median of 18.13 [4]. - CNXN's PEG ratio stands at 1.82, comparable to the industry average of 1.83. The PEG ratio has fluctuated between 1.52 and 2.11 over the last 12 months, with a median of 1.84 [5]. - The P/B ratio for CNXN is 2.06, which is attractive compared to the industry's average P/B of 2.07. The P/B ratio has varied from 1.68 to 2.26 in the past year, with a median of 2 [6]. - CNXN's P/CF ratio is 19.17, which is solid against the industry average of 19.31. This ratio has ranged from 15.24 to 21.04 over the past 52 weeks, with a median of 18.29 [7]. Investment Outlook - The combination of these valuation metrics suggests that PC Connection is likely undervalued, making it one of the strongest value stocks in the market, especially considering its earnings outlook [8].
PC nection(CNXN) - 2024 Q2 - Earnings Call Transcript
2024-08-01 00:47
Financial Data and Key Metrics Changes - Connection achieved record net income of $26.2 million, an increase of 32.8% compared to $19.7 million in Q2 2023 [7] - Diluted earnings per share were $0.99, reflecting a 32% increase from $0.75 in Q2 2023 [7] - Consolidated net sales were $736.5 million, a slight increase of 0.4% year-over-year [7] - Gross profit increased by 6.9% to $136.5 million, with gross margins up 112 basis points to 18.5% [7][11] Business Line Data and Key Metrics Changes - Business Solutions segment net sales were $278.2 million, up 6.6% year-over-year, with gross profit increasing by 8.1% [8] - Public Sector Solutions segment net sales decreased by 14% to $159.5 million, while gross profit increased by 3% [9] - Enterprise Solutions segment net sales rose by 4.1% to $298.8 million, with gross profit up 7.2% [10] Market Data and Key Metrics Changes - Manufacturing revenue increased by 13% year-over-year, driven by productivity gains and security needs [15] - Healthcare revenue grew by 4% due to major software and system upgrades [15] - Financial Services revenue increased by 15% year-over-year, attributed to improved IT system interoperability [15] Company Strategy and Development Direction - The company is focused on strengthening AI capabilities through the Connection Helix initiatives, targeting the SMB sector for growth opportunities [16] - Connection aims to connect customers with technology that enhances growth and productivity while navigating the complex IT landscape [18] - The company anticipates modest improvements in performance for the remainder of 2024, expecting to outperform the IT market growth rate by 200 basis points [18] Management's Comments on Operating Environment and Future Outlook - Management noted cautious investment in infrastructure due to macroeconomic uncertainties and the upcoming election year [17] - The company is optimistic about the second half of 2024, expecting improvements in Q3 over Q2 [27] - Management highlighted the importance of device refresh cycles, particularly around Windows 11, with expectations for increased adoption of next-generation PCs [21] Other Important Information - The company paid a quarterly dividend of $0.10 per share and repurchased shares worth $3.6 million during the quarter [12] - Cash generated from operations for the first half of 2024 was $95.7 million, with a decrease in accounts receivable and an increase in inventory [13] Q&A Session Summary Question: Insights on Device Refresh Cycle - Management indicated that the Device Refresh is primarily driven by Windows 11, with early adopters noted but significant AI PC adoption expected later [21] Question: Trends and Q3 Outlook - Management observed a strong finish to Q2 with a spike in shipments, and they expect Q3 to be historically strong with large projects in the funnel [26][27] Question: Impact of CrowdStrike Issues - The company was not directly affected by CrowdStrike issues but used the opportunity to support clients, enhancing customer relationships [28] Question: Sustainability of Software and Storage Growth - Management expressed uncertainty about the timing of purchase orders but remains well-positioned for future growth in the enterprise business [29]
PC Connection (CNXN) Beats Q2 Earnings and Revenue Estimates
ZACKS· 2024-07-31 23:36
PC Connection (CNXN) came out with quarterly earnings of $1 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.80 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 20.48%. A quarter ago, it was expected that this information technology services provider would post earnings of $0.64 per share when it actually produced earnings of $0.50, delivering a surprise of -21.88%. Over the l ...
PC nection(CNXN) - 2024 Q2 - Quarterly Report
2024-07-31 20:20
Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value CNXN Nasdaq Global Select Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934* For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period fr ...
PC nection(CNXN) - 2024 Q2 - Quarterly Results
2024-07-31 20:05
Exhibit 99.1 Investor Relations Contact: Thomas Baker, 603.683.2505 Senior Vice President, CFO, and Treasurer tom@connection.com CONNECTION (CNXN) REPORTS SECOND QUARTER 2024 RESULTS Record Quarter for Net Income and Earnings per Share SECOND QUARTER SUMMARY: ● Net sales: $736.5 million, increase of 0.4% y/y ● Gross profit: $136.5 million, up 6.9% y/y ● Gross margin: 18.5%, up 112 basis points y/y ● Net income: $26.2 million, increase of 32.8% y/y ● Diluted EPS: $0.99, compared to $0.75 Merrimack, NH—July 3 ...
PC nection(CNXN) - 2024 Q1 - Earnings Call Transcript
2024-05-02 01:40
Financial Data and Key Metrics Changes - Consolidated net sales for Q1 2024 were $632 million, a decrease of 13.1% compared to the previous year [21] - Gross profit decreased by 3.5% to $118.1 million, but gross margins increased by 187 basis points to 18.7% [21] - Operating income was $13.5 million, down 25.7% year-over-year, with operating income as a percentage of net sales at 2.1% compared to 2.5% in the prior year [10] - Net income for Q1 was $13.2 million, a decrease of 7.4% from $14.2 million in the prior year [10][33] - Diluted earnings per share were $0.50, a decrease of 7.7% from $0.54 in Q1 2023 [84] Business Line Data and Key Metrics Changes - Public Sector Solutions net sales were $93.5 million, down 33.4% year-over-year, primarily due to the absence of large projects that occurred in Q1 2023 [11] - Gross profit for the Public Sector segment was $15 million, a decrease of 26.3%, but gross margin increased by 156 basis points to 16% [12] - Enterprise Solutions segment net sales were $282.7 million, down 10% year-over-year, while gross profit increased by 1.6% to $42.7 million, with gross margin rising by 172 basis points to 15.1% [12] Market Data and Key Metrics Changes - The IT industry is undergoing rapid transformation driven by advancements in AI, cloud computing, and edge technologies, but customers remain cautious with their AI investments [28] - In retail, there was a year-over-year decline, but sequential quarterly revenue growth was observed, indicating momentum [45] - Financial Services revenue and gross profit increased by 8% year-over-year, while healthcare saw a significant rise in proposal requests for services and cybersecurity [46] Company Strategy and Development Direction - The company is focused on helping customers prepare for AI initiatives and expects stronger performance in the second half of the year [20] - The launch of the Helix Center for Applied AI Robotics is seen as a competitive advantage in the AI space [39] - The company remains committed to investing in both organic and inorganic growth opportunities while returning cash to shareholders through dividends and stock repurchases [36] Management's Comments on Operating Environment and Future Outlook - Management noted that customer spending on new technology is uncertain, but they are optimistic about returning to normalized growth rates in the second half of 2024 [42] - The company anticipates that the adoption of AI solutions will drive demand for additional infrastructure, storage, compute, and cybersecurity solutions [38] - Management highlighted that the timing of technology rollouts is becoming clearer, with customers preparing for Windows 11 and AI applications [52] Other Important Information - The Board authorized an additional $40 million increase to the existing share repurchase program, bringing the total available for repurchases to $72.1 million [25] - Cash flow from operations improved by $37.8 million year-over-year to $57.3 million [25] - The effective tax rate for Q1 was 27%, up from 26.8% due to changes in state tax rates [32] Q&A Session Summary Question: Sales cadence throughout the quarter and outlook for Q2 - Management indicated that revenue was approximately 34% in March, lower than the typical range, due to economic apprehension [50] - For Q2, operating income is expected to be flat to low single digits year-over-year, with gross profit also anticipated to see low single-digit growth [51] Question: Acquisitions and valuation multiples - The company is still looking for acquisition opportunities and has the balance sheet to support this, with M&A activity starting to heat up [64] Question: Guidance for gross profit dollar growth for the year - Management expects low single-digit growth in gross profit for the year, with Q2 looking weaker than initially expected [67] Question: Impact of AI-enabled PCs on business - The next generation of AI PCs is expected to drive demand, with a focus on security and performance improvements [74]
PC nection(CNXN) - 2024 Q1 - Quarterly Report
2024-05-01 20:11
PART I FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents PC Connection, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, income statements, and cash flows, for Q1 2024 and Q4 2023 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :------------------------------------ | :---------------------------- | :----------------------------- | | Total Assets | $1,161,065 | $1,188,381 | | Total Liabilities | $308,393 | $347,614 | | Total Stockholders' Equity | $852,672 | $840,767 | | Cash and cash equivalents | $147,579 | $144,954 | | Short-term investments | $204,374 | $152,232 | | Accounts receivable, net | $527,259 | $606,834 | | Accounts payable | $218,801 | $263,682 | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | 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 | $103,282 | | Restructuring and other charges | $— | $897 | | Income from operations | $13,464 | $18,117 | | Interest income, net | $4,567 | $1,286 | | Income before taxes | $18,031 | $19,403 | | Income tax provision | $(4,877) | $(5,205) | | Net income | $13,154 | $14,198 | | Basic Earnings per common share | $0.50 | $0.54 | | Diluted Earnings per common share | $0.50 | $0.54 | - Net sales decreased by **13.1%** year-over-year, from **$727,545 thousand** in Q1 2023 to **$632,025 thousand** in Q1 2024[80](index=80&type=chunk) - Gross profit decreased by **3.5%** year-over-year, from **$122,296 thousand** in Q1 2023 to **$118,072 thousand** in Q1 2024[80](index=80&type=chunk) [Condensed Consolidated Statements of Other Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Other%20Comprehensive%20Income) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net income | $13,154 | $14,198 | | Unrealized losses on available-for-sale investments, net of tax | $(143) | $— | | Comprehensive income | $13,011 | $14,198 | - The company reported unrealized losses on available-for-sale investments of **$143 thousand** (net of tax) in Q1 2024, compared to no such losses in Q1 2023[81](index=81&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) | Item | Balance - December 31, 2023 (in thousands) | Stock-based compensation expense (in thousands) | Dividend declaration (in thousands) | Net income (in thousands) | Other comprehensive loss, net of tax (in thousands) | Balance - March 31, 2024 (in thousands) | | :----------------------------------- | :--------------------------------------- | :------------------------------------ | :---------------------------------- | :------------------------ | :-------------------------------------------------- | :-------------------------------------- | | Common Shares | 29,262 | — | — | — | — | 29,271 | | Stock Amount | $293 | — | — | — | — | $293 | | Additional Paid-In Capital | $130,878 | $1,949 | — | — | — | $132,596 | | Retained Earnings | $760,898 | — | $(2,636) | $13,154 | — | $771,416 | | Accumulated Other Comprehensive (Loss) Income | $81 | — | — | — | $(143) | $(62) | | Treasury Shares | (2,902) | — | — | — | — | (2,905) | | Shares Amount | $(51,383) | — | — | — | — | $(51,571) | | Total | $840,767 | $1,949 | $(2,636) | $13,154 | $(143) | $852,672 | - Total stockholders' equity increased from **$840,767 thousand** at December 31, 2023, to **$852,672 thousand** at March 31, 2024[89](index=89&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net cash provided by operating activities | $57,285 | $19,505 | | Net cash used in investing activities | $(51,607) | $(1,882) | | Net cash used in financing activities | $(3,053) | $(5,743) | | Increase in cash and cash equivalents | $2,625 | $11,880 | | Cash and cash equivalents, end of period | $147,579 | $134,810 | - Net cash provided by operating activities significantly increased to **$57,285 thousand** in Q1 2024 from **$19,505 thousand** in Q1 2023, primarily due to a decrease in accounts receivable[22](index=22&type=chunk)[102](index=102&type=chunk) - Net cash used in investing activities increased substantially to **$(51,607) thousand** in Q1 2024, mainly due to purchases of short-term investments[22](index=22&type=chunk)[199](index=199&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) - The financial statements are prepared in accordance with U.S. GAAP and consistent with the accounting policies in the Company's 2023 Annual Report on Form 10-K[15](index=15&type=chunk) - Interest income, net, on cash equivalents and short-term investments increased to **$4,565 thousand** for Q1 2024, up from **$1,308 thousand** for Q1 2023[18](index=18&type=chunk) - No restructuring and other charges were recorded for Q1 2024, compared to **$897 thousand** in Q1 2023 related to workforce reduction[35](index=35&type=chunk)[36](index=36&type=chunk) - Contract liabilities increased to **$8,453 thousand** as of March 31, 2024, from **$4,206 thousand** as of December 31, 2023[28](index=28&type=chunk) - All short-term investments are classified as available-for-sale and recorded at fair value using **Level 1 inputs**[94](index=94&type=chunk)[30](index=30&type=chunk)[41](index=41&type=chunk) - Basic and diluted earnings per share both decreased to **$0.50** for Q1 2024 from **$0.54** for Q1 2023[44](index=44&type=chunk) - The company's operations are organized into three segments: **Enterprise Solutions**, **Business Solutions**, and **Public Sector Solutions**[58](index=58&type=chunk) - The Public Sector Solutions segment experienced the largest decrease in net sales, down **33.4%** year-over-year[60](index=60&type=chunk)[163](index=163&type=chunk) - The company has a **$50,000 thousand** credit facility available until March 31, 2025, with no outstanding borrowings as of March 31, 2024[64](index=64&type=chunk)[69](index=69&type=chunk)[200](index=200&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial performance, condition, liquidity, capital resources, and critical accounting policies [CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS](index=21&type=section&id=CAUTIONARY%20NOTE%20CONCERNING%20FORWARD-LOOKING%20STATEMENTS) - The report contains forward-looking statements regarding future financial results, business plans, liabilities, competition, and macroeconomic impacts[70](index=70&type=chunk) - These statements are based on current views and assumptions but are subject to known and unknown risks and uncertainties[70](index=70&type=chunk) - Key risks include substantial competition, price competition, loss of major vendors, IT virtualization, service interruptions, increased shipping costs, loss of key personnel, cyberattacks, and macroeconomic factors like inflation and changing interest rates[65](index=65&type=chunk) [OVERVIEW](index=24&type=section&id=OVERVIEW) - PC Connection, Inc. is a **Fortune 1000 Global Solutions Provider** offering IT solutions and services through its Enterprise, Business, and Public Sector Solutions segments[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) - The company mitigates direct sales efforts by manufacturers by providing comprehensive, product-neutral IT solutions and higher-margin service offerings through its **Technology Solutions Organization (TSO)**[146](index=146&type=chunk) - Primary challenges include increasing product/service revenues and gross margin, recruiting/retaining sales and technical support personnel, and controlling SG&A expenses while investing in IT systems[147](index=147&type=chunk) [RESULTS OF OPERATIONS](index=26&type=section&id=RESULTS%20OF%20OPERATIONS) Key Financial Performance Indicators (as % of Net Sales) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net sales | $632.0 million | $727.5 million | | Gross margin | 18.7% | 16.8% | | Selling, general and administrative expenses | 16.6% | 14.2% | | Income from operations | 2.1% | 2.5% | - Net sales decreased by **$95.5 million (13.1%)** year-over-year in Q1 2024, primarily due to decreases in notebooks/mobility, software, and net/com products[137](index=137&type=chunk) - Gross profit decreased by **$4.2 million (3.5%)**, but gross margin increased to **18.7%** from **16.8%**, driven by an increase in software sales recognized on a net basis[137](index=137&type=chunk) Net Sales and Gross Profit by Segment (in millions) | Segment | Net Sales Q1 2024 | Net Sales Q1 2023 | $ Change | % Change | Gross Profit Q1 2024 | Gross Profit Q1 2023 | $ Change | % Change | | :-------------------- | :---------------- | :---------------- | :------- | :------- | :------------------- | :------------------- | :------- | :------- | | Enterprise Solutions | $282.6 | $313.9 | $(31.3) | (10.0)% | $42.7 | $42.1 | $0.6 | 1.6% | | Business Solutions | $255.9 | $273.1 | $(17.2) | (6.3)% | $60.4 | $59.9 | $0.5 | 0.8% | | Public Sector Solutions | $93.5 | $140.5 | $(47.0) | (33.4)% | $15.0 | $20.3 | $(5.3) | (26.3)% | | Total | $632.0 | $727.5 | $(95.5) | (13.1)% | $118.1 | $122.3 | $(4.2) | (3.5)% | SG&A Expenses (in millions) | Category | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Personnel costs | $78.5 | $79.2 | | Advertising | $7.4 | $6.6 | | Service contracts/subscriptions | $6.0 | $5.2 | | Professional fees | $3.4 | $3.8 | | Depreciation and amortization | $3.3 | $3.1 | | Facilities operations | $1.8 | $2.2 | | Credit card fees | $1.6 | $1.5 | | Other | $2.6 | $1.7 | | Total SG&A expense | $104.6 | $103.3 | | As a percentage of net sales | 16.6% | 14.2% | - Income from operations decreased to **$13.5 million** in Q1 2024 from **$18.1 million** in Q1 2023, primarily due to lower net sales and gross profit[178](index=178&type=chunk) - Interest income, net, increased significantly to **$4.6 million** in Q1 2024 from **$1.3 million** in Q1 2023, driven by higher cash equivalent balances and interest rates[179](index=179&type=chunk) - Net income decreased to **$13.2 million** in Q1 2024 from **$14.2 million** in Q1 2023[168](index=168&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary liquidity sources are internally generated funds from operations, short-term investments, and borrowings under the credit facility[169](index=169&type=chunk) - The company expects to have sufficient funds for the next twelve months and beyond, with **$147.6 million** in cash and cash equivalents, **$204.4 million** in short-term investments, and a **$50.0 million** available credit facility as of March 31, 2024[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[181](index=181&type=chunk) Summary of Sources and Uses of Cash (in millions) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $57.3 | $19.5 | | Net cash used in investing activities | $(51.6) | $(1.9) | | Net cash used in financing activities | $(3.1) | $(5.7) | | Increase in cash and cash equivalents | $2.6 | $11.9 | - The cash conversion cycle decreased to **53 days** for Q1 2024, down from **65 days** for Q1 2023, primarily due to improved collections (DSO decreased to **70 days** from **71 days**) and inventory management (DIO decreased to **22 days** from **30 days**)[103](index=103&type=chunk)[104](index=104&type=chunk)[196](index=196&type=chunk)[198](index=198&type=chunk) - The **$50.0 million** credit facility, collateralized by accounts receivable, is available until March 2025, with no outstanding borrowings as of March 31, 2024[188](index=188&type=chunk)[200](index=200&type=chunk) - The company was in compliance with all financial covenants as of March 31, 2024, including minimum consolidated net worth (**$852.7 million** actual vs. **$609.6 million** required) and funded debt ratio (**0.0 to 1.0** actual vs. **2.0 to 1.0** maximum)[64](index=64&type=chunk)[110](index=110&type=chunk)[203](index=203&type=chunk) [APPLICATION OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=39&type=section&id=APPLICATION%20OF%20CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) - The company's critical accounting policies and estimates have not materially changed from those discussed in its Annual Report on Form 10-K for the year ended December 31, 2023[204](index=204&type=chunk) [RECENTLY ISSUED FINANCIAL ACCOUNTING STANDARDS](index=39&type=section&id=RECENTLY%20ISSUED%20FINANCIAL%20ACCOUNTING%20STANDARDS) - Information on recently issued financial accounting standards is detailed in Note 1, 'Basis of Presentation,' within the Notes to Unaudited Condensed Consolidated Financial Statements[189](index=189&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Reports no material changes to market risks since December 31, 2023, referring to the Annual Report on Form 10-K - No material changes related to the company's market risks have occurred since December 31, 2023[206](index=206&type=chunk) - For a comprehensive description of market risks, refer to Item 7A. 'Quantitative and Qualitative Disclosures About Market Risk' in the Annual Report on Form 10-K for the year ended December 31, 2023[206](index=206&type=chunk) [ITEM 4. Controls and Procedures](index=41&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Details evaluation of disclosure controls and procedures, confirming effectiveness and no material changes in internal control [Disclosure Controls and Procedures](index=41&type=section&id=Disclosure%20Controls%20and%20Procedures) - Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures as of March 31, 2024[207](index=207&type=chunk) - It was concluded that the disclosure controls and procedures were effective at the reasonable assurance level[207](index=207&type=chunk) [Changes in Internal Control over Financial Reporting](index=41&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - There were no changes in internal control over financial reporting during the fiscal quarter ended March 31, 2024, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[116](index=116&type=chunk) PART II OTHER INFORMATION [ITEM 1. Legal Proceedings](index=42&type=section&id=ITEM%201.%20Legal%20Proceedings) This section incorporates legal proceedings information by reference, noting no expected material adverse effect - Information related to legal proceedings is incorporated by reference from Note 8 - 'Commitments and Contingencies' in the Notes to Unaudited Condensed Consolidated Financial Statements[209](index=209&type=chunk) [ITEM 1A. Risk Factors](index=42&type=section&id=ITEM%201A.%20Risk%20Factors) Refers to the Annual Report on Form 10-K for comprehensive risk factors that could materially affect the business - Readers should carefully consider Item 1A. 'Risk Factors' in the Annual Report on Form 10-K for the year ended December 31, 2023, for factors that could materially affect the business, financial position, and results of operations[117](index=117&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the stock repurchase program, shares purchased, remaining authorization, and confirms no D&O trading Common Stock Repurchase Program Activity (in thousands, except per share data) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value that May Yet Be Under the Plans or Programs (in millions) | | :----------------- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------------------- | :------------------------------------------------------------------------------- | | 01/01/24-01/31/24 | — | — | — | $32.3 | | 02/01/24-02/29/24 | — | — | — | $32.3 | | 03/01/24-03/31/24 | 2,898 | $64.40 | 2,898 | $32.1 | | Total | 2,898 | $64.40 | 2,898 | | - The Board of Directors approved an increase of **$40.0 million** to the repurchase program on May 1, 2024, bringing the aggregate authorized amount to **$120.0 million**[118](index=118&type=chunk) [Director and Officer Trading Arrangements](index=42&type=section&id=Director%20and%20Officer%20Trading%20Arrangements) - No directors or officers adopted or terminated a Rule 10b5-1 trading agreement or a non-Rule 10b5-1 trading agreement during the first quarter of 2024[128](index=128&type=chunk)[222](index=222&type=chunk) [ITEM 5. Other Information](index=42&type=section&id=ITEM%205.%20Other%20Information) This section serves as a placeholder and contains no specific content [ITEM 6. Exhibits](index=44&type=section&id=ITEM%206.%20Exhibits) Lists all exhibits filed with the Quarterly Report on Form 10-Q, including corporate governance documents and XBRL data - Exhibits include Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, Director Compensation and Executive Bonus Plan, Section 302 and 906 certifications, and various Inline XBRL Taxonomy documents[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk) - The financial statements and notes are attached as Exhibit 101, formatted in XBRL (Extensible Business Reporting Language)[229](index=229&type=chunk) [SIGNATURES](index=45&type=section&id=SIGNATURES) Contains the official signatures of the company's authorized officers, confirming report submission - The report was signed by Thomas C. Baker, Senior Vice President, Chief Financial Officer and Treasurer, and Timothy J. McGrath, President and Chief Executive Officer, on May 1, 2024[124](index=124&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)
PC nection(CNXN) - 2024 Q1 - Quarterly Results
2024-05-01 20:05
Exhibit 99.1 Investor Relations Contact: Thomas Baker, 603.683.2505 Senior Vice President, CFO, and Treasurer tom@connection.com CONNECTION (CNXN) REPORTS FIRST QUARTER 2024 RESULTS FIRST QUARTER SUMMARY: ● Net sales: $632.0 million, decrease of 13.1% y/y ● Gross profit: $118.1 million, down 3.5% y/y ● Gross margin: 18.7%, up 187 basis points y/y ● Net income: $13.2 million, decrease of 7.4% y/y ● Diluted EPS: $0.50, compared to $0.54 Merrimack, NH—May 1, 2024—Connection (PC Connection, Inc.; NASDAQ: CNXN), ...
Connection Announces 2024 IT Superhero Awards
Businesswire· 2024-03-14 15:00
MERRIMACK, N.H.--(BUSINESS WIRE)--Connection (PC Connection, Inc.; NASDAQ: CNXN), a leading information technology solutions provider to business, government, healthcare, and education markets, is pleased to announce the fourth annual IT Superhero Awards. The awards program recognizes IT professionals, nominated by their colleagues, for going above and beyond the call of duty to save the day for their team. The IT Superhero Awards program is open to IT professionals from organizations of all sizes and indu ...