EX-99.1 2 a15-4219_1ex99d1.htm EX-99.1

EXHIBIT 99.1

 

Contact:

Budd Zuckerman

Genesis Select Corporation

(303) 415-0200

 

PCM REPORTS FOURTH QUARTER RESULTS

 

Highlights (Continuing Operations for Fourth Quarter 2014 compared to Fourth Quarter 2013):

 

·                  Net sales: increased 1% to $359.2 million

·                  Gross profit: increased 4% to $50.2 million

·                  Gross profit margin: increased to 14.0% from 13.5%

·                  Operating profit: increased 7% to $4.5 million

·                  EBITDA: increased 4% to $7.3 million

·                   Diluted earnings per share (EPS): was $0.16

·                  Generated $11.6 million of operating cash flow during the quarter

·                  Repurchased 118,036 shares at an average price of $9.22

 

El Segundo, California — February 12, 2015 — PCM, Inc. (NASDAQ: PCMI), a leading technology solutions provider, today reported financial results for the fourth quarter of 2014. Consolidated net sales in Q4 2014 were $359.2 million, an increase of $2.0 million, or 1%, from $357.2 million in Q4 2013. Consolidated gross profit for Q4 2014 was $50.2 million, an increase of $2.1 million, or 4%, from $48.1 million in Q4 2013. Consolidated gross profit margin was 14.0% in Q4 2014 compared to consolidated gross profit margin of 13.5% in Q4 2013. EBITDA (as defined below) for Q4 2014 increased $0.3 million, or 4%, to $7.3 million from $7.0 million in Q4 2013. Consolidated operating profit for Q4 2014 increased $0.2 million, or 7%, to $4.5 million compared to $4.3 million for Q4 2013. Consolidated income from continuing operations increased $0.2 million, or 6%, to $2.1 million in Q4 2014 compared to $1.9 million for Q4 2013. Consolidated net income (including discontinued operations) was $1.6 million in Q4 2014 compared to $1.8 million for Q4 2013. Diluted EPS from continuing operations for Q4 2014 and Q4 2013 was $0.16.

 

Commenting on the Company’s results, Frank Khulusi, Chairman and CEO of PCM, Inc., said, “I am generally pleased with our fourth quarter results. While our revenues grew 1%, we were able to grow our gross profit by four times that percentage growth, and improved our gross margin by 50 basis points to 14% on the strength of some of our most strategic categories, such as software, networking and storage, which grew at 15%, 55% and 13%, respectively. I am also pleased with how Jay Miley has begun to put his mark on the organization since his joining in December.”

 

Jay Miley, President of PCM, Inc., said, “When I decided to join PCM, I knew I was joining one of the leading and most capable technology solution providers in North America. Since joining this past December, I have been amazed to see how much passion and enthusiasm the PCM team members have for our company and their jobs. I believe PCM has a tremendous opportunity to achieve better than market growth, and to that end I have been busy assessing all areas of the business to drive and accelerate such growth. I have recently made several changes in the sales organization, such as shifting management responsibilities and realigning business units and sales territories, and I have made significant investments in our field sales resources and software sales teams. While I expect such changes to be somewhat disruptive to the first quarter, I also expect the benefits to quickly accrue into the subsequent quarters of 2015 and beyond. To that end, we continue to target double-digit growth beginning in the second quarter and our non-GAAP EBITDA margin to exceed 2.5% by the fourth quarter. I firmly believe that our continued transformation towards a value-added IT solution provider, combined with the benefits of these recent and upcoming moves, should significantly improve shareholder value over this year. I accepted my position at PCM based on my belief that PCM is very well positioned for the future, and based on where I believe I can help drive the equity value going forward.”

 

Results of Operations

 

During the fourth quarter of 2014, we discontinued the operation of our remaining retail store located in Santa Monica, California. As previously announced, during the second and third quarters of 2014, we discontinued the operation of our other three retail stores and our OnSale and eCost businesses. We reflected the results of these operations, which were historically reported as a part of our MacMall segment, as discontinued operations for all periods presented herein on our Consolidated Statements of Operations and Consolidated Balance Sheets.

 

1


 

Net Sales

 

The following table presents our net sales by segment for the periods presented (in thousands):

 

 

 

Three Months Ended December 31,

 

 

 

 

 

 

 

2014

 

2013

 

 

 

 

 

 

 

Net Sales

 

Percentage of
Total Net Sales

 

Net Sales

 

Percentage of
Total Net Sales

 

Dollar Change

 

Percent
Change

 

Commercial

 

$

257,913

 

72

%

$

273,445

 

77

%

$

(15,532

)

(6

)%

Public Sector

 

63,403

 

18

 

39,235

 

11

 

24,168

 

62

 

MacMall

 

37,922

 

10

 

44,451

 

12

 

(6,529

)

(15

)

Corporate & Other

 

(5

)

—

 

60

 

—

 

(65

)

NM

(1)

Consolidated

 

$

359,233

 

100

%

$

357,191

 

100

%

$

2,042

 

1

%

 

(1)  Not meaningful.

 

Consolidated net sales were $359.2 million in Q4 2014 compared to $357.2 million in Q4 2013, an increase of $2.0 million or 1%. Consolidated sales of services were 8% of net sales in each of Q4 2014 and Q4 2013.

 

Commercial net sales were $257.9 million in Q4 2014 compared to $273.4 million in Q4 2013, a decrease of $15.5 million or 6%. Consistent with our previously disclosed expectations for Q4 2014, our Commercial net sales were negatively impacted in Q4 2014 by $36.0 million, resulting from reductions in sales from three large enterprise customers. Other than the impact of these three customers, who continue to actively purchase from us, we believe our growth was strong in the remainder of our commercial business. We continue to expect that our revenue growth will be impacted, but to a lesser extent, in the first quarter of 2015 by reductions from certain large enterprise customers. We believe we are seeing traction from the investments we are making in the area of sales headcount, software and advanced technology solutions. Looking forward, we expect to see accelerated improvements from these investments.

 

Public Sector net sales were $63.4 million in Q4 2014 compared to $39.2 million in Q4 2013, an increase of $24.2 million, or 62%. This increase in Public Sector net sales was due to a $26.5 million, or 111%, increase in sales in our federal government business, partially offset by a $2.3 million, or 15%, decrease in our state and local government and educational institutions business (SLED) sales. The increase in sales in our federal government business was due to significant increases across multiple federal contracts. The decrease in SLED sales was due to a higher mix of software maintenance products that are reported on a net basis, but otherwise increased on a gross billed basis.

 

MacMall net sales were $37.9 million in Q4 2014 compared to $44.5 million in Q4 2013, a decrease of $6.6 million, or 15%. The decrease in MacMall net sales was primarily due to reductions in Apple notebooks and tablets, but partially offset by an increase in Apple desktops. MacMall sales were negatively impacted by a very competitive online environment for the sales of Apple products.

 

Gross Profit and Gross Profit Margin

 

Consolidated gross profit was $50.2 million in Q4 2014, an increase of $2.0 million, or 4%, from $48.2 million in Q4 2013. Consolidated gross profit margin increased to 14.0% in Q4 2014 from 13.5% in Q4 2013. The increase in consolidated gross profit was primarily due to an increase in Public Sector selling margin. The increase in consolidated gross profit margin was primarily due to higher mix of solution sales, including an increase in sales reported on a net basis.

 

Selling, General & Administrative Expenses

 

Consolidated SG&A expenses were $45.6 million in Q4 2014 compared to $43.9 million in Q4 2013, an increase of $1.7 million, or 4%. Consolidated SG&A expenses as a percentage of net sales increased to 12.7% in Q4 2014 from 12.3% in Q4 2013. The increase in consolidated SG&A expenses in Q4 2014 was primarily due to a $2.3 million increase in personnel costs related to an increase in sales headcount including software sales, advanced solutions and our new Austin office, partially offset by a $0.4 million decrease in advertising expenditures and a $0.3 million bad debt expense in Q4 2013 in our Public Sector segment that did not reoccur in Q4 2014.

 

2


 

Operating Profit

 

The following table presents our operating profit and operating profit margin by segment for the periods presented (in thousands):

 

 

 

Three Months Ended December 31,

 

 

 

 

 

Change in

 

 

 

2014

 

2013

 

Change in

 

Operating

 

 

 

Operating

 

Operating
Profit

 

Operating

 

Operating
Profit

 

Operating
Profit

 

Profit
Margin

 

 

 

Profit

 

Margin(1)

 

Profit

 

Margin(1)

 

$

 

%

 

%

 

Commercial

 

$

13,305

 

5.2

%

$

16,081

 

5.9

%

$

(2,776

)

(17

)%

(0.7

)%

Public Sector

 

3,973

 

6.3

 

65

 

0.2

 

3,908

 

6,012

 

6.1

 

MacMall

 

422

 

1.1

 

972

 

2.2

 

(550

)

(57

)

(1.1

)

Corporate & Other

 

(13,154

)

(3.7

)(1)

(12,864

)

(3.6

)(1)

(290

)

2

 

(0.1

)

Consolidated

 

$

4,546

 

1.3

%

$

4,254

 

1.2

 

$

292

 

7

%

0.1

%

 

(1) Operating profit margin for Corporate & Other is computed based on consolidated net sales. Operating profit margin for each of the other segments is computed based on the respective segment’s net sales.

 

Consolidated operating profit was $4.5 million in Q4 2014 compared to $4.3 million in Q4 2013, an increase of $0.2 million, or 7%.

 

Commercial operating profit was $13.3 million in Q4 2014 compared to $16.1 million in Q4 2013, a decrease of $2.8 million, or 17%. The decrease is primarily due to a $0.8 million decrease in Commercial gross profit, a $1.7 million increase in personnel costs and a $0.6 million increase in facility related costs.

 

Public Sector operating profit was $4.0 million in Q4 2014 compared to $65,000 in Q4 2013, an increase of $3.9 million. The increase in Public Sector operating profit was primarily due to a $3.9 million increase in Public Sector gross profit, a $0.4 million decrease in bad debt expense, partially offset by a $0.6 million increase in personnel costs.

 

MacMall operating profit was $0.4 million in Q4 2014 compared to operating profit of $1.0 million in Q4 2013, a decrease of $0.6 million, or 57%, primarily due to a $1.0 million decrease in MacMall gross profit associated with the reduction in sales in Q4 2014.

 

Corporate & Other operating expenses include corporate related expenses such as legal, accounting, information technology, product management and certain other administrative costs that are not otherwise included in our reportable operating segments. Corporate & Other operating expenses were $13.1 million in Q4 2014 compared to $12.9 million in Q4 2013, an increase of $0.2 million, or 2%, primarily due to a $0.2 million increase in personnel costs.

 

Consolidated Balance Sheet and Cash Flow

 

We generated cash flow from operations for the year ended December 31, 2014 of $73.3 million, compared to cash provided by operations for the year ended December 31, 2013 of $0.9 million. Accounts receivable at December 31, 2014 was $199.6 million, an increase of $3.9 million from December 31, 2013. Inventory at December 31, 2014 was $50.7 million, a decrease of $60.7 million from December 31, 2013 primarily due to the sell through of the inventory purchased for specific customer contracts and large strategic purchases made near the end of the prior year. Accounts payable at December 31, 2014 was $122.3 million, a decrease of $8.5 million from December 31, 2013. We invested in capital expenditures during the year ended December 31, 2014 totaling $26.7 million compared to capital expenditures of $17.2 million during the year ended December 31, 2013. The increase in capital expenditures during 2014 was primarily due to our construction of a new cloud data center in New Albany, Ohio, leasehold improvements and other build-out costs related to our new Chicago and Austin offices, as well as increased costs associated with our ERP upgrade. Such costs were partially financed through various notes payable totaling $13.3 million during the year ended December 31, 2014. Outstanding borrowings under our line of credit decreased by $57.7 million to $52.8 million at December 31, 2014 compared to December 31, 2013.  Working capital increased to $63.4 million at December 31, 2014 from $57.6 million at December 31, 2013.

 

3


 

Account Executive Headcount

 

The following table presents our average account executive headcount, by segment, for our continuing operations for the periods presented:

 

Average Account Executive

 

Three Months Ended
December 31,

 

Headcount By Segment(1):

 

2014

 

2013

 

 

 

 

 

 

 

Commercial

 

491

 

445

 

Public Sector

 

106

 

109

 

MacMall

 

75

 

96

 

Total

 

672

 

650

 

 

(1)    Headcount numbers are calculated based on an average of all sales executives and trainees employed during the period.

 

Product Sales Mix

 

The following table sets forth our net billed sales by major categories as a percentage of total net billed sales for the periods presented, determined based upon our internal product code classifications, and excluding the results of our discontinued operations, which are discussed above.

 

 

 

Three Months Ended
December 31,

 

Y/Y
Sales

 

Product Sales Mix:

 

2014

 

2013

 

Growth

 

Software (1)

 

17

%

15

%

15

%

Notebooks

 

15

 

18

 

(16

)

Networking

 

11

 

7

 

55

 

Desktops

 

8

 

9

 

(6

)

Delivered services

 

8

 

8

 

(8

)

Tablets

 

7

 

9

 

(19

)

Storage

 

7

 

7

 

13

 

Manufacturer service and warranty (1)

 

6

 

5

 

24

 

Displays

 

4

 

5

 

(15

)

Accessories

 

3

 

3

 

8

 

Servers

 

3

 

3

 

3

 

Input devices

 

2

 

2

 

23

 

Other (2)

 

9

 

9

 

(2

)

Total

 

100

%

100

%

 

 

 

(1)  Software, including software licenses, maintenance and enterprise agreements, and manufacturer service and warranties are shown, for purposes of this table, on a gross sales billed to customers basis, net of returns and do not reflect the net down impact related to revenue recognition for sales of such products.

(2)  All other includes power, printers, supplies, consumer electronics, memory, iPod/MP3 and miscellaneous other items.

 

Non-GAAP Measure

 

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 EBITDA 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 February 12, 2015 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its fourth quarter results. To listen to PCM management’s discussion of its fourth quarter results live, access http://investor.pcm.com/events.cfm.

 

4


 

The archived webcast can be accessed at www.investor.pcm.com under “Events & Presentations.” A replay of the conference call by phone will be available from 7:30 p.m. ET on February 12, 2015 until February 18, 2015 and can be accessed by calling (855) 859-2056 (International (404) 537-3406) and inputting pass code 85660303.

 

About PCM, Inc.

 

PCM, Inc., through its wholly-owned subsidiaries, is a leading technology solutions provider to small and medium sized businesses, mid-market and enterprise customers, government and educational institutions and individual consumers. In the 12 months ended December 31, 2014, we generated approximately $1.4 billion in revenue and now have approximately 2,700 employees, 64% of which are in sales or service positions. For more information please visit investor.pcm.com 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, statements related to the impact of strategic investments; statements regarding expectations related to the impact of our hiring of Mr. Miley; potential disruption related to changes in the sales organization; opportunities for market growth and improvement in shareholder value; statements regarding expectations related to reductions in sales to large enterprise customers; statements regarding expectations for revenue growth and non-GAAP EBITDA margin; expectations for annual SG&A savings; and statements regarding the impacts of discontinuing operations on the future of our continuing operations. 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 risks and uncertainties related to the following: our ability to attract and retain key employees; our ability to receive expected returns on strategic investments including without limit investments in advanced technology solutions and services; availability of key vendor incentives and other vendor assistance; our IT infrastructure; the relationship between the number of our account executives and productivity; 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; possible discontinuance of IT licenses used to operate our business which are provided by vendors; 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 our pricing strategy on our operating results; potential decreases in sales related to changes in our vendors products; the potential lack of availability of government funding applicable to our PCMG contracts; the impact of seasonality on our sales; availability of products from third party suppliers at reasonable prices; business and other conditions in the Asia Pacific region and the related effects on 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; shifts in market demand or price erosion of owned inventory; risks related to foreign currency fluctuations; warranties and indemnities we may be required to provide to third parties through our commercial contracts; 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 II of our Form 10-Q for the period ended September 30, 2014, 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-

 

5


 

PCM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

 

2014

 

2013

 

2014

 

2013

 

Net sales

 

$

359,233

 

$

357,191

 

$

1,356,362

 

$

1,359,999

 

Cost of goods sold

 

309,046

 

309,048

 

1,164,295

 

1,170,500

 

Gross profit

 

50,187

 

48,143

 

192,067

 

189,499

 

Selling, general and administrative expenses

 

45,641

 

43,889

 

176,362

 

171,279

 

Operating profit

 

4,546

 

4,254

 

15,705

 

18,220

 

Interest expense, net

 

799

 

894

 

3,180

 

3,339

 

Income from continuing operations before income taxes

 

3,747

 

3,360

 

12,525

 

14,881

 

Income tax expense

 

1,693

 

1,417

 

5,490

 

6,236

 

Income from continuing operations

 

2,054

 

1,943

 

7,035

 

8,645

 

Loss from discontinued operations, net of taxes

 

(481

)

(136

)

(1,570

)

(515

)

Net income

 

$

1,573

 

$

1,807

 

$

5,465

 

$

8,130

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Earnings (Loss) Per Common Share

 

 

 

 

 

 

 

 

 

Basic EPS:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.17

 

$

0.16

 

$

0.57

 

$

0.75

 

Loss from discontinued operations, net of taxes

 

(0.04

)

(0.01

)

(0.12

)

(0.05

)

Net income

 

0.13

 

0.15

 

0.45

 

0.70

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.16

 

$

0.16

 

$

0.55

 

$

0.73

 

Loss from discontinued operations, net of taxes

 

(0.04

)

(0.01

)

(0.13

)

(0.05

)

Net income

 

0.12

 

0.15

 

0.42

 

0.68

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

12,353

 

11,741

 

12,251

 

11,583

 

Diluted

 

12,911

 

12,158

 

12,881

 

11,923

 

 

6


 

PCM, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO

CONSOLIDATED OPERATING PROFIT

(unaudited, in thousands)

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

 

2014

 

2013

 

2014

 

2013

 

EBITDA(a):

 

 

 

 

 

 

 

 

 

Consolidated operating profit

 

$

4,546

 

$

4,254

 

$

15,705

 

$

18,220

 

Add: Consolidated depreciation expense

 

2,644

 

2,410

 

10,329

 

9,312

 

Consolidated amortization expense

 

74

 

341

 

318

 

1,734

 

EBITDA

 

$

7,264

 

$

7,005

 

$

26,352

 

$

29,266

 

 

(a)         EBITDA — earnings from continuing operations before interest, taxes, depreciation and amortization.

 

7


 

PCM, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except per share amounts and share data)

 

 

 

At December 31,

 

 

 

2014

 

2013

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

8,892

 

$

9,992

 

Accounts receivable, net of allowances of $426 and $1,407

 

199,604

 

195,749

 

Inventories

 

50,687

 

111,444

 

Prepaid expenses and other current assets

 

15,936

 

14,893

 

Deferred income taxes

 

3,922

 

2,583

 

Current assets of discontinued operations

 

26

 

5,846

 

Total current assets

 

279,067

 

340,507

 

Property and equipment, net

 

74,368

 

55,793

 

Deferred income taxes

 

—

 

225

 

Goodwill

 

25,510

 

25,510

 

Intangible assets, net

 

4,673

 

4,684

 

Other assets

 

5,558

 

6,804

 

Non-current assets of discontinued operations

 

14

 

1,299

 

Total assets

 

$

389,190

 

$

434,822

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

122,333

 

$

130,810

 

Accrued expenses and other current liabilities

 

26,107

 

30,296

 

Deferred revenue

 

10,089

 

9,427

 

Line of credit

 

52,795

 

110,499

 

Notes payable — current

 

3,741

 

1,167

 

Current liabilities of discontinued operations

 

577

 

713

 

Total current liabilities

 

215,642

 

282,912

 

Notes payable and other long-term liabilities

 

28,015

 

18,247

 

Deferred income taxes

 

12,217

 

7,901

 

Total liabilities

 

255,874

 

309,060

 

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; 15,758,714 and 15,053,067 shares issued; and 12,267,550 and 11,790,674 shares outstanding

 

16

 

15

 

Additional paid-in capital

 

120,915

 

115,801

 

Treasury stock, at cost: 3,491,164 and 3,262,393 shares

 

(17,472

)

(15,321

)

Accumulated other comprehensive income

 

941

 

1,816

 

Retained earnings

 

28,916

 

23,451

 

Total stockholders’ equity

 

133,316

 

125,762

 

Total liabilities and stockholders’ equity

 

$

389,190

 

$

434,822

 

 

8


 

PCM, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

 

 

Year Ended
December 31,

 

 

 

2014

 

2013

 

Cash Flows From Operating Activities

 

 

 

 

 

Net income

 

$

5,465

 

$

8,129

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

11,893

 

11,830

 

Provision for deferred income taxes

 

2,987

 

1,539

 

Excess tax benefit related to stock option exercises

 

(291

)

(291

)

Non-cash stock-based compensation

 

1,502

 

1,517

 

Change in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(3,545

)

(5,999

)

Inventories

 

66,267

 

(48,019

)

Prepaid expenses and other current assets

 

(1,335

)

(1,119

)

Other assets

 

855

 

(3,913

)

Accounts payable

 

(8,576

)

31,042

 

Accrued expenses and other current liabilities

 

(2,593

)

2,161

 

Deferred revenue

 

636

 

4,045

 

Total adjustments

 

67,800

 

(7,207

)

Net cash provided by operating activities

 

73,265

 

922

 

Cash Flows From Investing Activities

 

 

 

 

 

Purchases of property and equipment

 

(26,666

)

(17,213

)

Net cash used in investing activities

 

(26,666

)

(17,213

)

Cash Flows From Financing Activities

 

 

 

 

 

Net (payments) borrowings under line of credit

 

(57,704

)

22,869

 

Capital lease proceeds

 

—

 

206

 

Borrowing under note payable

 

13,734

 

4,599

 

Payments under notes payable

 

(2,487

)

(1,461

)

Change in book overdraft

 

(98

)

(3,034

)

Payments of obligations under capital lease

 

(2,625

)

(2,932

)

Proceeds from stock issued under stock option plans

 

3,887

 

2,362

 

Payment for deferred financing costs

 

(30

)

(1,163

)

Common shares repurchased and held in treasury

 

(2,151

)

(1,633

)

Excess tax benefit related to stock option exercises

 

291

 

291

 

Net cash (used in) provided by financing activities

 

(47,183

)

20,104

 

Effect of foreign currency on cash flow

 

(517

)

(356

)

Net change in cash and cash equivalents

 

(1,101

)

3,457

 

Cash and cash equivalents at beginning of the period

 

9,992

 

6,535

 

Cash and cash equivalents at end of the period

 

$

8,891

 

$

9,992

 

Supplemental Cash Flow Information

 

 

 

 

 

Interest paid

 

$

3,093

 

$

3,228

 

Income taxes paid

 

6,213

 

2,974

 

Supplemental Non-Cash Investing and Financing Activities

 

 

 

 

 

Financed purchase of property and equipment

 

$

2,332

 

$

1,106

 

 

9