UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 9, 2012
PC Mall, Inc.
(Exact name of registrant as specified in its charter)
Delaware |
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000-25790 |
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95-4518700 |
(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
1940 E. Mariposa Ave.
El Segundo, California 90245
(Address of principal executive offices)(zip code)
(310) 354-5600
(Registrants telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On May 9, 2012, PC Mall, Inc. (the Company) issued an earnings release announcing its financial results for the quarter ended March 31, 2012. The release did not include certain financial statements, related notes and certain other financial information that will be filed with the Securities and Exchange Commission (SEC) as part of the Companys Quarterly Report on Form 10-Q for the period ended March 31, 2012. A copy of the press release, relating to such announcement, dated May 9, 2012, is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press Release dated May 9, 2012 (furnished pursuant to Item 2.02 of Form 8-K)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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PC MALL, INC. | |
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| |
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By: |
/s/ Brandon H. LaVerne |
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Name: |
Brandon H. LaVerne |
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Title: |
Chief Financial Officer |
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Dated: May 9, 2012 |
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EXHIBIT 99.1
Contact:
Joe Hayek, Executive Vice President
PC Mall, Inc.
(310) 354-5600
or
Matt Selinger, Partner
Genesis Select Corporation
(303) 415-0200
PC MALL REPORTS FIRST QUARTER 2012 RESULTS
First Quarter Highlights (2012 compared to 2011):
· Q1 net sales increased 2% to a first quarter record $342.3 million
· Q1 gross profit increased 8% to a first quarter record $46.8 million;
· Q1 gross profit margin increased to 13.7% from 12.9%
· Q1 operating profit decreased 93% to $0.1 million
· Q1 EBITDA decreased 20% to $3.3 million
· Diluted loss per share was $0.04 for Q1 2012 compared to diluted earnings per share of $0.06
El Segundo, California May 9, 2012 PC Mall, Inc. (NASDAQ:MALL), a leading IT solutions provider, today reported financial results for the first quarter of 2012. Consolidated net sales for Q1 2012 were a first quarter record $342.3 million, an increase of 2%, from $335.9 million in Q1 2011, and was impacted by a $27.1 million decrease in sales to promotional companies under a vendor program change in Q4 by a large vendor. Excluding the effect of this program change, our sales grew $33.5 million, or 11% compared to Q1 2011. Consolidated gross profit for Q1 2012 increased 8% to a first quarter record $46.8 million from $43.5 million in Q1 2011. Consolidated gross profit margin was 13.7% in Q1 2012 compared to 12.9% in Q1 2011. Consolidated operating profit for Q1 2012, which includes $0.6 million of severance and restructuring related costs, decreased 93% to $0.1 million compared to $1.9 million for Q1 2011. EBITDA (as defined below) for Q1 2012 decreased $0.8 million to $3.3 million from $4.1 million in Q1 2011. Consolidated net loss for Q1 2012 was $0.5 million compared to consolidated net income of $0.7 million for Q1 2011. Diluted loss per share for Q1 2012 was $0.04 compared to diluted EPS of $0.06 for Q1 2011.
Commenting on the Companys first quarter results, Frank Khulusi, Chairman, President and CEO of PC Mall, Inc. said, We are pleased that we grew sales by 11% excluding the program change mentioned above, and that we grew our gross margin to 13.7% from 12.9% year over year. This margin growth was primarily due to our continued focus on improving our mix of services and solutions sales. Our operating profit in Q1 was impacted by a number of factors, including our ongoing investments, our IT upgrades and $0.6 million of severance and restructuring related costs incurred during the quarter. As we previously discussed on our Q4 2011 conference call, we are committed to our goal of generating $30 million to $32 million in EBITDA in 2012, excluding any severance or restructuring related expenses.
Strategic Developments
Khulusi continued, As we discussed on our Q4 2011 conference call, we are in the midst of several strategic initiatives with the goal being to unify our commercial brands and streamline our go-to-market strategies. An important part of these initiatives is a focused reduction of our overhead expenses. To that end, we took actions in Q1 that will result in $1.7 million of annualized cost savings. These and other actions resulted in severance and restructuring related expenses of approximately $0.6 million in Q1. We are evaluating additional actions to take place in Q2 and Q3 and would expect incremental annualized cost reductions of at least $3.5 million resulting from those actions. We currently expect that we will incur additional severance and restructuring related costs in connection with these actions. Looking forward, as we discussed on our fourth quarter conference call, we believe that when our commercial brands are unified and we simplify our go-to-market strategies we will be able to achieve additional synergies, including simplified and more effective sales and marketing campaigns and additional reductions in overhead.
Segment Results
As stated last quarter, in Q1 2012 we restored operating and reporting of the OnSale and MacMall businesses within a single segment and now have four operating segments SMB, MME, Public Sector and MacMall/OnSale. We include corporate related expenses such as legal, accounting, information technology, product management, certain professional and pre-sales support services and other administrative costs that are not otherwise allocated to our reportable operating segments in Corporate and Other. All historical segment financial information provided herein has been revised to reflect these new reportable operating segments.
SMB
Q1 2012 net sales for our SMB segment were $117.6 million compared to $138.7 million in Q1 2011, a decrease of $21.1 million, or 15%. This decrease was due to a $21.6 million decline in sales to promotional companies as a result of the program change mentioned earlier, offset by a $0.5 million increase in sales to customers outside that program. As we indicated previously, the effects of this program change will continue to have an impact on year over year comparisons throughout 2012. In 2011, sales under this program were approximately $23.2 million, $20.0 million, $12.7 million and $8.8 million in Q1, Q2, Q3 and Q4 respectively.
Q1 2012 SMB gross profit decreased by $0.1 million, or 1%, to $16.8 million compared to $16.9 million in Q1 2011 resulting primarily from the SMB net sales decrease discussed above, but offset by an increase in gross profit for the core SMB business. SMB gross profit margin increased to 14.3% in Q1 2012 compared to 12.2% in Q1 2011 primarily due to an increase in selling margin for the core SMB business as well as a decrease in sales to promotional companies at lower margins.
Q1 2012 SMB operating profit increased by $0.1 million, or 2%, to $9.3 million compared to $9.2 million in Q1 2011. This increase resulted primarily from a decrease in bad debt expense of $0.2 million and a decrease in facility expenses of $0.1 million, partially offset by the SMB gross profit decrease discussed above and a $0.2 million increase in personnel costs primarily due to increased variable compensation expenses related to higher selling margin for SMBs core business.
MME
Q1 2012 net sales for our MME segment were $137.3 million compared to $110.5 million in Q1 2011, an increase of $26.8 million, or 24%. This increase was primarily due to a 25% increase in net sales of products in Q1 2012 compared to Q1 2011, as well as a 23% increase in sales of services.
MME gross profit increased by $1.9 million, or 10%, to $19.9 million in Q1 2012 compared to $18.0 million in Q1 2011, and MME gross profit margin decreased to 14.5% in Q1 2012 compared to 16.3% in Q1 2011. The increase in MME gross profit was due to the increased MME net sales discussed above, partially offset by a decrease in product margins. The decrease in MME gross profit margin was primarily due to a 55 basis point decrease in vendor consideration as a percentage of sales and a competitive pricing environment for product sales.
MME operating profit in Q1 2012 increased by $1.1 million, or 22%, to $6.3 million compared to $5.2 million in Q1 2011. The increase was primarily due to the increased MME gross profit discussed above, partially offset by a $0.3 million increase in depreciation and amortization expenses primarily related to the accelerated amortization of SARCOMs trademark resulting from our rebranding strategy, and increases in personnel costs of $0.2 million and variable fulfillment costs of $0.2 million.
Public Sector
Q1 2012 net sales for our Public Sector segment were $32.2 million compared to $31.7 million in Q1 2011, an increase of $0.5 million, or 2%. This increase in Public Sector net sales was due to a 26% increase in sales to state and local government and educational institutions (SLED) resulting primarily from increased account executive headcount focused on SLED business, partially offset by an 18% decrease in our federal government business.
Public Sector gross profit increased by $0.6 million, or 18%, to $3.8 million in Q1 2012 compared to $3.2 million in Q1 2011. Public Sector gross profit margin increased to 11.7% in Q1 2012 compared to 10.1% in Q1 2011. The increase in Public Sector gross profit was primarily due to the increased Public Sector net sales discussed above, an increase in selling margin and a $0.2 million increase in vendor consideration. The increase in Public Sector gross profit margin was primarily due to a 51 basis point increase in vendor consideration as a percentage of sales and an improvement in mix of higher margin solutions.
Public Sector operating profit was $36,000 in Q1 2012 compared to $41,000 in Q1 2011. Public Sector operating profit was primarily impacted by a $0.5 million increase in personnel costs and a $0.1 million increase in variable fulfillment costs, partially offset by the increased Public Sector gross profit discussed above.
MacMall/OnSale
Q1 2012 net sales for our MacMall/OnSale segment were $55.2 million compared to $55.3 million in Q1 2011. These results included a $5.5 million decrease in MacMall net sales due to the vendor program change mentioned earlier. As previously indicated, we expect the effects of the program change to have an impact on year-over-year comparisons throughout the first half of 2012. Sales under this program in 2011 were approximately $5.5 million and $2.7 million in each of the first two quarters of 2011.
MacMall/OnSale gross profit increased by $0.5 million, or 8%, to $6.3 million in Q1 2012 compared to $5.8 million in Q1 2011. MacMall/OnSale gross profit margin increased to 11.4% in Q1 2012 compared to 10.5% in Q1 2011. The increase in MacMall/OnSale gross profit and gross profit margin was primarily due to an increase in selling margin and a reduction in sales at low margins to promotional companies.
MacMall/OnSale operating profit decreased by $0.5 million to $0.3 million in Q1 2012 compared to $0.8 million in Q1 2011. This decrease was primarily due to an increase in personnel costs of $0.8 million due to increased costs associated with our retail stores and incremental marketing resources, as well as a $0.1 million increase in severance costs, partially offset by an increase in MacMall/OnSale gross profit discussed above. The OnSale business, including the results of eCost, incurred a loss during Q1 2012 of $0.8 million, and we expect this part of the business to be profitable beginning in Q2 2012 as a result of the operating changes mentioned above.
Corporate & Other
Corporate & Other operating expenses includes corporate related expenses such as legal, accounting, information technology, product management and certain professional and pre-sales support services and other administrative costs that are not otherwise included in our reportable operating segments. Q1 2012 Corporate & Other operating expenses increased by $2.5 million, or 20%, to $15.8 million from $13.3 million in Q1 2011. The increase in Q1 2012 was primarily related to a $0.6 million increase in depreciation expense associated with the completed portions of our on-going systems upgrades, a $0.5 million increase in net costs associated with our professional and pre-sales support services supporting our commercial segments, a $0.4 million increase in legal and accounting costs, and other increases in costs associated with our back office infrastructure, partially offset by a $0.5 million decrease in costs associated with the write-down of first generation iPads in Q1 2011 that did not have a corresponding charge in Q1 2012. In January 2012, we settled a lawsuit that significantly impacted legal costs in prior quarters without liability to the company.
Consolidated Balance Sheet
Accounts receivable at March 31, 2012 was $190.7 million and decreased by $17.3 million from December 31, 2011. Inventory at March 31, 2012 was $60.1 million and decreased $19.3 million from December 31, 2011, reflecting a sell-through of seasonal purchases made in later 2011. Accounts payable at March 31, 2012 was $114.9 million and decreased by $7.6 million from December 31, 2011. We completed the financing of our headquarters building improvements, furniture and fixtures, totaling approximately $7.2 million of increases to notes and leases payable during the first quarter of 2012. Capital expenditures during Q1 2012 were $2.5 million compared to capital expenditures of $11.5 million during Q1 2011, with the decrease primarily due to the purchase in Q1 2011 of our new headquarters building for $9.6 million. Outstanding borrowings under our line of credit decreased by $27.6 million to $64.2 million at March 31, 2012 compared to December 31, 2011. Working capital increased by $6.5 million as of March 31, 2012 compared to December 31, 2011.
Selected Segment Information
Selected information for our reportable operating segments is as follows (in thousands, except headcount data):
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Three Months Ended |
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Three Months Ended |
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Net Sales |
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Gross Profit |
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Operating |
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Net Sales |
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Gross Profit |
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Operating |
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SMB |
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$ |
117,555 |
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$ |
16,764 |
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$ |
9,348 |
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$ |
138,738 |
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$ |
16,918 |
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$ |
9,184 |
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MME |
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137,333 |
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19,856 |
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6,271 |
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110,509 |
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17,986 |
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5,159 |
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Public Sector |
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32,230 |
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3,776 |
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36 |
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31,677 |
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3,197 |
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41 |
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MacMall/OnSale |
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55,229 |
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6,274 |
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320 |
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55,275 |
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5,812 |
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784 |
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Corporate & Other |
|
(1 |
) |
102 |
|
(15,846 |
) |
(261 |
) |
(444 |
) |
(13,253 |
) | ||||||
Total |
|
$ |
342,346 |
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$ |
46,772 |
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$ |
129 |
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$ |
335,938 |
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$ |
43,469 |
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$ |
1,915 |
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Average Account Executive |
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Three Months Ended |
| ||
Headcount By Segment(1): |
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2012 |
|
2011 |
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SMB |
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353 |
|
374 |
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MME |
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111 |
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111 |
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Public Sector |
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134 |
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103 |
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MacMall/OnSale |
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153 |
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125 |
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Total |
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751 |
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713 |
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(1) Headcount numbers are calculated based on an average of all sales executives and trainees employed during the period.
Non-GAAP Measures
We are presenting earnings before interest, taxes, depreciation and amortization expenses (EBITDA), which is a financial measure that is not determined in accordance with accounting principles generally accepted in the United States of America, or GAAP. EBITDA should be used in conjunction with other GAAP financial measures and is not presented as an alternative measure of operating results, as determined in accordance with GAAP. We believe that this non-GAAP financial measure allows a more meaningful comparison of our operating performance trends to both management and investors that is more indicative of our consolidated operating results across reporting periods. Depreciation and amortization expenses primarily represent an allocation to current expense of the cost of historical capital expenditures and for acquired intangible assets resulting from prior business acquisitions. A reconciliation of the non-GAAP consolidated financial measure is included in a table below.
Conference Call
Management will hold a conference call, which will be webcast, on May 9, 2012 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss first quarter results. To listen to PC Mall managements discussion of its first quarter results live, access www.pcmall.com/investor.
The archived webcast can be accessed at www.pcmall.com/investor under Calendar of Events. A replay of the conference call by phone will be available from 7:30 p.m. ET on May 9, 2012 until May 16, 2012 and can be accessed by calling: (888) 286-8010 and inputting pass code 67548725.
About PC Mall, Inc.
PC Mall, Inc., through its wholly-owned subsidiaries, is a leading value added direct marketer of technology products, services and solutions to small and medium sized businesses, mid-market and enterprise customers, government and educational institutions and individual consumers. Our brands include: PC Mall, PC Mall Gov, Sarcom, MacMall, Abreon, NSPI, eCost and OnSale. In the twelve months ended March 31, 2012, we generated approximately $1.5 billion in revenue and now have over 2,900 employees, over 65% of which are in sales or service positions. For more information please visit pcmall.com/investor or call (310) 354-5600.
Forward-looking Statements
This press release may contain 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. Such forward-looking statements include statements regarding our expectations, hopes or intentions regarding the future; including, but not limited to expectations or statements relating to expanded business models and opportunities and benefits of our investments in these business models and markets, statements related to strategic developments such as statements related to our brand strategy and related potential benefits of a more streamlined and unified brand strategy, statements related to our new headquarters and the related benefits to our customers, vendors and employees and impact on future growth, statements related to the benefits of the coupon business or other statements or expectations or goals for sales growth or operating leverage. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Factors that could cause our actual results to differ materially include without limitation the following: risks or uncertainties related to our ability to retain key employees, expanded business models and related investments; risks relates to our IT infrastructure, uncertainties relating to the relationship between the number of our account executives and productivity; risks related to our ability to receive expected returns on strategic investments such as investments in new offices, decreased sales related to any of our segments, including but not limited to, potential decreases in sales resulting from the loss of or a reduction in purchases from significant customers; availability of key vendor incentives and other vendor assistance, increased competition, including, but not limited to, increased competition from direct sales by some of our largest vendors and increased pricing pressures which affect our pricing strategy in any given period; the effect of the our pricing strategy on our operating results; risks related to our ability to identify suitable acquisition targets, to complete acquisitions of identified targets (including the challenges and costs of closing the transaction), and our ability to integrate companies we may acquire and our ability to achieve synergies expected from such acquisitions; the impact of acquisitions on relationships with key customers and vendors; potential decreases in sales related to changes in our vendors products; risks of decreased sales related to the potential lack of availability of government funding applicable to our PC Mall Gov contracts; the impact of seasonality on our sales; availability of products from third party suppliers at reasonable prices; risks of business and other conditions in the Asia Pacific region and our limited experience
operating in the Philippines, which could prevent us from realizing expected benefits from our Philippines operations; increased expenses, including, but not limited to, interest expense, foreign currency transaction gains/losses, and other expenses which may increase as a result of future inflationary pressures; our advertising, marketing and promotional efforts may be costly and may not achieve desired results; risks due to shifts in market demand or price erosion of owned inventory; risks related to our expanded coupon business, including regulatory and litigation risks, market acceptance of the expanded business model, competition and emerging market risks; risks related to foreign currency fluctuations; risks related to warranties and indemnities we may be required to provide to third parties through our commercial contracts; risks related to data security; litigation by or against us; and availability of financing, including availability under our existing credit lines. Additional factors that could cause our actual results to differ are discussed under the heading Risk Factors in Item 1A, Part I of our Form 10-K for the fiscal year ended December 31, 2011, on file with the Securities and Exchange Commission, and in our other reports filed from time to time with the SEC. All forward-looking statements in this document are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statements.
-Financial Tables Follow-
PC MALL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
|
|
Three Months Ended |
| ||||
|
|
2012 |
|
2011 |
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Net sales |
|
$ |
342,346 |
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$ |
335,938 |
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Cost of goods sold |
|
295,574 |
|
292,469 |
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Gross profit |
|
46,772 |
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43,469 |
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Selling, general and administrative expenses |
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46,643 |
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41,554 |
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Operating profit |
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129 |
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1,915 |
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Interest expense, net |
|
931 |
|
723 |
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(Loss) income before income taxes |
|
(802 |
) |
1,192 |
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Income tax (benefit) expense |
|
(332 |
) |
465 |
| ||
Net (loss) income |
|
$ |
(470 |
) |
$ |
727 |
|
|
|
|
|
|
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Basic and Diluted Earnings (Loss) Per Common Share |
|
|
|
|
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Basic |
|
$ |
(0.04 |
) |
$ |
0.06 |
|
Diluted |
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(0.04 |
) |
0.06 |
| ||
|
|
|
|
|
| ||
Weighted average number of common shares outstanding: |
|
|
|
|
| ||
Basic |
|
12,001 |
|
12,232 |
| ||
Diluted |
|
12,001 |
|
12,607 |
|
PC MALL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO
CONSOLIDATED OPERATING PROFIT
|
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Three Months Ended |
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|
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2012 |
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2011 |
| ||
|
|
|
|
|
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EBITDA(a): |
|
|
|
|
| ||
Consolidated operating profit |
|
$ |
129 |
|
$ |
1,915 |
|
Add: Consolidated depreciation expense |
|
2,404 |
|
1,660 |
| ||
Consolidated amortization expense |
|
746 |
|
505 |
| ||
EBITDA |
|
$ |
3,279 |
|
$ |
4,080 |
|
(a) EBITDA earnings before interest, taxes, depreciation and amortization.
PC MALL, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except per share amounts and share data)
|
|
March 31, |
|
December 31, |
| ||
ASSETS |
|
|
|
|
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Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
8,613 |
|
$ |
9,484 |
|
Accounts receivable, net of allowances of $1,645 and $1,642 |
|
190,718 |
|
207,985 |
| ||
Inventories, net |
|
60,129 |
|
79,456 |
| ||
Prepaid expenses and other current assets |
|
11,401 |
|
9,681 |
| ||
Deferred income taxes |
|
4,023 |
|
3,937 |
| ||
Total current assets |
|
274,884 |
|
310,543 |
| ||
Property and equipment, net |
|
45,206 |
|
44,745 |
| ||
Deferred income taxes |
|
273 |
|
247 |
| ||
Goodwill |
|
25,510 |
|
25,510 |
| ||
Intangible assets, net |
|
9,094 |
|
9,840 |
| ||
Other assets |
|
2,357 |
|
2,387 |
| ||
Total assets |
|
$ |
357,324 |
|
$ |
393,272 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Accounts payable |
|
$ |
114,940 |
|
$ |
122,523 |
|
Accrued expenses and other current liabilities |
|
27,442 |
|
31,797 |
| ||
Deferred revenue |
|
15,457 |
|
18,079 |
| ||
Line of credit |
|
64,231 |
|
91,852 |
| ||
Notes payable current |
|
1,064 |
|
1,015 |
| ||
Total current liabilities |
|
223,134 |
|
265,266 |
| ||
Notes payable and other long-term liabilities |
|
17,389 |
|
11,574 |
| ||
Deferred income taxes |
|
5,606 |
|
5,606 |
| ||
Total liabilities |
|
246,129 |
|
282,446 |
| ||
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; 14,401,434 and 14,368,888 shares issued; and 12,028,250 and 11,995,704 shares outstanding, respectively |
|
14 |
|
14 |
| ||
Additional paid-in capital |
|
108,712 |
|
108,061 |
| ||
Treasury stock, at cost: 2,373,184 shares at each period |
|
(9,733 |
) |
(9,733 |
) | ||
Accumulated other comprehensive income |
|
2,444 |
|
2,256 |
| ||
Retained earnings |
|
9,758 |
|
10,228 |
| ||
Total stockholders equity |
|
111,195 |
|
110,826 |
| ||
Total liabilities and stockholders equity |
|
$ |
357,324 |
|
$ |
393,272 |
|
PC MALL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
|
|
Three Months ended |
| ||||
|
|
2012 |
|
2011 |
| ||
Cash Flows From Operating Activities |
|
|
|
|
| ||
Net (loss) income |
|
$ |
(470 |
) |
$ |
727 |
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
|
|
|
|
| ||
Depreciation and amortization |
|
3,150 |
|
2,165 |
| ||
Provision for deferred income taxes |
|
32 |
|
231 |
| ||
Net tax benefit related to stock option exercises |
|
|
|
1 |
| ||
Excess tax benefit related to stock option exercises |
|
(39 |
) |
(660 |
) | ||
Non-cash stock-based compensation |
|
571 |
|
534 |
| ||
Gain on sale of fixed assets |
|
|
|
(4 |
) | ||
Change in operating assets and liabilities: |
|
|
|
|
| ||
Accounts receivable |
|
17,075 |
|
13,949 |
| ||
Inventories |
|
19,327 |
|
6,621 |
| ||
Prepaid expenses and other current assets |
|
(1,531 |
) |
(714 |
) | ||
Other assets |
|
30 |
|
14 |
| ||
Accounts payable |
|
(7,100 |
) |
(30,291 |
) | ||
Accrued expenses and other current liabilities |
|
(5,307 |
) |
(6,005 |
) | ||
Deferred revenue |
|
(2,622 |
) |
4,868 |
| ||
Total adjustments |
|
23,586 |
|
(9,291 |
) | ||
Net cash provided by (used in) operating activities |
|
23,116 |
|
(8,564 |
) | ||
Cash Flows From Investing Activities |
|
|
|
|
| ||
Purchase of El Segundo building |
|
|
|
(9,565 |
) | ||
Purchases of property and equipment |
|
(2,456 |
) |
(1,898 |
) | ||
Acquisition of assets, net |
|
|
|
(2,327 |
) | ||
Proceeds from sale of fixed assets |
|
|
|
9 |
| ||
Net cash used in investing activities |
|
(2,456 |
) |
(13,781 |
) | ||
Cash Flows From Financing Activities |
|
|
|
|
| ||
Net (payments) borrowings under line of credit |
|
(27,621 |
) |
11,730 |
| ||
Capital lease proceeds |
|
4,377 |
|
|
| ||
Borrowing under notes payable |
|
2,859 |
|
|
| ||
Repayments under notes payable |
|
(259 |
) |
(196 |
) | ||
Change in book overdraft |
|
(567 |
) |
6,719 |
| ||
Payments of obligations under capital lease |
|
(438 |
) |
(299 |
) | ||
Payments for deferred financing costs |
|
|
|
(25 |
) | ||
Proceeds from stock issued under stock option plans |
|
80 |
|
665 |
| ||
Excess tax benefit related to stock option exercises |
|
39 |
|
660 |
| ||
Net cash (used in) provided by financing activities |
|
(21,530 |
) |
19,254 |
| ||
Effect of foreign currency on cash flow |
|
(1 |
) |
(21 |
) | ||
Net change in cash and cash equivalents |
|
(871 |
) |
(3,112 |
) | ||
Cash and cash equivalents at beginning of the period |
|
9,484 |
|
10,711 |
| ||
Cash and cash equivalents at end of the period |
|
$ |
8,613 |
|
$ |
7,599 |
|
Supplemental Cash Flow Information |
|
|
|
|
| ||
Interest paid |
|
$ |
809 |
|
$ |
608 |
|
Income taxes paid |
|
406 |
|
2,323 |
| ||
Supplemental Non-Cash Investing and Financing Activities |
|
|
|
|
| ||
Purchase of infrastructure system |
|
$ |
325 |
|
$ |
1,146 |
|
Deferred financing costs |
|
|
|
38 |
|