PC Connection Reports 8% Increase in Total Assets, 4.6% Growth in Net Sales for Q3 2024

As of September 30, 2024, PC Connection, Inc. reported total assets of $1,285,745,000, reflecting an increase from $1,188,381,000 at the end of 2023. Total current assets rose to $1,151,726,000 from $1,048,639,000, driven by an increase in cash and cash equivalents to $167,511,000, up from $144,954,000. Short-term investments also saw a significant rise, reaching $261,603,000 compared to $152,232,000 at the end of 2023. However, total current liabilities increased to $367,453,000 from $327,965,000, contributing to a rise in total liabilities to $388,383,000 from $347,614,000. Retained earnings improved to $819,372,000 from $760,898,000, while total stockholders’ equity increased to $897,362,000 from $840,767,000.

For the third quarter of 2024, net sales were $724,717,000, a 4.6% increase from $693,086,000 in the same period of 2023. The nine-month net sales totaled $2,093,221,000, down from $2,154,178,000 year-over-year. Gross profit for Q3 2024 was $135,406,000, up from $131,888,000, while gross profit for the nine months increased to $390,020,000 from $381,961,000. However, income from operations for Q3 decreased to $30,041,000 from $32,022,000, and for the nine months, it fell to $74,424,000 from $75,210,000.

Net income for Q3 2024 was $27,059,000, compared to $25,598,000 in Q3 2023, while for the nine months, it rose to $66,374,000 from $59,493,000. Earnings per share for Q3 increased to $1.03 from $0.97, and for the nine months, it rose to $2.52 from $2.26.

The company reported restructuring charges of $0.4 million for the nine months ended September 30, 2024, down from $2.7 million in the same period of 2023, primarily related to workforce reductions. SG&A expenses for Q3 2024 increased to $105.4 million from $99.8 million in Q3 2023, reflecting a 5.6% rise year-over-year.

In terms of cash flow, net cash provided by operating activities for the nine months was $148,620,000, down from $185,665,000 in the previous year. The company also reported a significant increase in interest income for both the three and nine months ended September 30, 2024, attributed to higher cash equivalent balances and interest rates.

PC Connection continues to focus on enhancing its IT solutions business, with plans to invest in hiring skilled personnel to support higher-margin service revenues. The company operates under three segments: Enterprise Solutions, Business Solutions, and Public Sector Solutions, each contributing to its overall performance amidst varying market conditions.