PCM Reports Record Second Quarter 2019 Results, Announced Proposed Merger with Insight
Summary
EL SEGUNDO, Calif.--(BUSINESS WIRE)--PCM, Inc. (NASDAQ: PCMI), a leading technology solutions provider, today reported financial results for the second quarter and six months ended June 30, 2019. These results benefited from our investments in advanced technologies, including cloud, security, hybrid data center and collaboration, as our capabilities in these and other areas have been resonating with our customers and vendors alike. The following table sets forth our gross billed sales (net of returns) by major categories as a percentage of total gross billed sales (net of returns) for the periods presented, determined based upon our internal product code classifications: We are presenting earnings before interest, taxes, depreciation and amortization expenses (EBITDA), adjusted EBITDA and non-GAAP EPS (adjusted EPS), which are financial measures that are not determined in accordance with accounting principles generally accepted in the United States of America, or GAAP. Additional information regarding PCM’s directors and executive officers respective interests in PCM by security holdings or otherwise is set forth in PCM’s Definitive Proxy Statement filed with the SEC on July 26, 2019. Factors that could cause our actual results to differ materially include without limitation risks and uncertainties related to the following: risks regarding our ability to complete the proposed acquisition by Insight in a timely manner or at all and the effects of any such delay or failure on our business, financial condition, operating results, financial condition or stock price; risks associated with limitations on our ability to pursue alternative transactions pursuant to the provisions of the merger agreement with Insight; our ability to attract and retain key employees; our loss of personnel to competitors; the misappropriation or unauthorized use of our proprietary or confidential information by competitors or others; our IT infrastructure; risks associated with cyber and data security including compliance with related regulatory requirements such as the European Union General Data Protection Regulation; availability of key vendor incentives and other vendor assistance; possible discontinuance of IT licenses or authorizations used to operate our business which are provided by vendors; the potential lack of availability of government funding applicable to our Public Sector business; our ability to receive expected returns on changes in our sales and services organizations or strategic investments, including without limit, investments in security, cloud, hybrid data center, advanced technology solutions and services, our call centers and our international expansion; 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; 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 impact of seasonality on our sales; availability of products from third party suppliers at reasonable prices; business and other conditions in Canada, the UK and Europe and the Asia Pacific region and the related effects on our Canadian, UK and our Asia-Pacific operations, including without limitation our executive management’s lack of experience operating in some of these markets; 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; other risks related to foreign currency fluctuations; warranties and indemnities we may be required to provide to third parties through our commercial and government contracts; litigation by or against us, including without limitation the litigation and other actions related to our En Pointe acquisition; and availability of financing, including availability under our existing credit lines.