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):  February 7, 2022
 
PC Connection, Inc.
(Exact name of registrant as specified in charter)

 
Delaware
0-23827
02-0513618
(State or other juris-
diction of incorporation
(Commission
File Number)
(IRS Employer
Identification No.)

 

730 Milford Road
Merrimack, New Hampshire
03054
(Address of principal executive offices)
(Zip Code)

 
Registrant’s telephone number, including area code:  (603) 683-2000
 
N/A
(Former name or former address, if changed since last report)

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
 
 

Soliciting material pursuant to Rule 14a‑12 under the Exchange Act (17 CFR 240.14a‑12)
 
 
 
 

Pre-commencement communications pursuant to Rule 14d‑2(b) under the Exchange Act (17 CFR 240.14d‑2(b))
 
 
 
 

Pre-commencement communications pursuant to Rule 13e‑4(c) under the Exchange Act (17 CFR 240.13e‑4(c))

Securities registered pursuant to Section 12(b) of the Act:
 
     
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Common Stock
CNXN
The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐


Item 2.02. Results of Operations and Financial Condition
 
On February 7, 2022, PC Connection, Inc. announced its financial results for the quarter and year ended December 31, 2021.  The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
 
The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
 
Item 9.01.
Financial Statements and Exhibits



(d)
Exhibit No.
Description








104
Cover Page Interactive Data File (embedded within the Inline XBRL document).

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.
 
Date:  February 7, 2022
PC CONNECTION, INC.




By:
/s/ Thomas C. Baker


Thomas C. Baker


Senior Vice President, Chief Financial Officer & Treasurer

Exhibit 99.1

Connection (CNXN) Reports Fourth Quarter and Full Year 2021 Results

FOURTH QUARTER SUMMARY:

  • Net sales: $800.2 million, up 18.4% y/y
  • Gross profit: $127.0 million, up 16.7% y/y
  • Net income: $22.4 million, up 37.4% y/y
  • Diluted EPS: $0.85, up 37.1% y/y

FULL YEAR SUMMARY:

  • Net sales: $2.9 billion, up 11.7% y/y
  • Gross profit: $464.6 million, up 10.9% y/y
  • Net income: $69.9 million, up 25.4% y/y
  • Diluted EPS: $2.65, up 25.2% y/y

MERRIMACK, N.H.--(BUSINESS WIRE)--February 7, 2022--Connection (PC Connection, Inc.; NASDAQ: CNXN), a leading information technology solutions provider to business, government, healthcare and education markets, today announced results for the fourth quarter and year ended December 31, 2021.

“We are pleased to report record fourth quarter consolidated revenue and gross profit. Our Enterprise and Business Solutions segments achieved record revenues on a quarterly basis. These results demonstrate the continued execution of our business strategy to connect our customers with technology that enhances growth, elevates productivity, and empowers innovation. This strong financial performance was significantly impacted by the ongoing needs of our customers to work-from-anywhere,” said Tim McGrath, President and CEO of Connection.

Net sales for the quarter ended December 31, 2021 increased by 18.4% to $800.2 million, compared to $675.7 million for the prior year quarter. Net income for the quarter ended December 31, 2021 increased by 37.4% to $22.4 million, or $0.85 per diluted share, compared to net income of $16.3 million, or $0.62 per diluted share, for the prior year quarter.

Net sales for the year ended December 31, 2021 increased by 11.7% to $2.9 billion, compared to $2.6 billion for the year ended December 31, 2020. Net income for the year ended December 31, 2021 increased by 25.4% to $69.9 million, or $2.65 per diluted share, compared to net income of $55.8 million, or $2.12 per diluted share for the year ended December 31, 2020.

Earnings before interest, taxes, depreciation and amortization, adjusted for stock-based compensation expense and restructuring and other charges (“Adjusted EBITDA”) totaled $113.0 million for the year ended December 31, 2021, compared to $90.6 million for the twelve months ended December 31, 2020. 1


Quarterly Highlights

  • Strong performance across our vertical markets:
    • Healthcare saw revenue growth of 29% year-over-year which was largely attributed to organizations striving to improve overall productivity and patient care.
    • In the Retail vertical, we grew revenue 31% year-over-year as we saw companies invest to improve the technology experience and employee efficiency.
    • Revenue for the Manufacturing vertical also increased slightly year-over-year as companies continue to invest in core IT technologies including cloud, infrastructure, security, and workplace productivity.

Quarterly Performance by Segment:

  • Net sales for the Business Solutions segment increased by 14.4% to $303.5 million in the fourth quarter of 2021, compared to $265.2 million in the prior year quarter. Gross profit increased by 14.4% to $58.0 million in the fourth quarter of 2021, compared to $50.7 million in the prior year quarter. Gross margin remained relatively flat at 19.1%.
  • Net sales for the Public Sector Solutions segment decreased by 4.1% to $129.4 million in the fourth quarter of 2021, compared to $134.9 million in the prior year quarter. Sales to state and local government and educational institutions increased by 9.1%, compared to the prior year quarter, while sales to the federal government decreased by 35.3% primarily due to the timing of customer rollouts. Gross profit increased slightly to $18.6 million in the fourth quarter of 2021, compared to $18.5 million in the prior year quarter. Gross margin increased by 69 basis points to 14.4% primarily due to a change in product and customer mix.
  • Net sales for the Enterprise Solutions segment increased by 33.3% to $367.3 million in the fourth quarter of 2021, compared to $275.6 million in the prior year quarter. Gross profit increased by 27.1% to $50.5 million in the fourth quarter of 2021, compared to $39.7 million in the prior year quarter. Gross margin decreased by 67 basis points to 13.7% primarily due to a higher mix of end-point devices.

Quarterly Sales by Product Mix:

  • Notebook/mobility sales, the Company’s largest product category, increased 32% year over year and accounted for 38% of net sales in the fourth quarter of 2021, compared to 34% of net sales in the fourth quarter of 2020. The increase in this product category was primarily due to the growing hybrid work environment.
  • Accessories sales increased by 5% year over year and accounted for 11% of net sales in the fourth quarter of 2021, compared to 13% of net sales in the fourth quarter of 2020.
  • Software sales increased by 14% year over year and accounted for 11% of net sales in the fourth quarter of 2021, compared to 12% in the fourth quarter of 2020.
  • Desktop sales increased by 24% year over year and accounted for 10% of net sales in the fourth quarter of 2021, compared to 9% of net sales in the fourth quarter of 2020.

Selling, general and administrative (“SG&A”) expenses increased in the fourth quarter of 2021 to $95.7 million from $89.1 million in the prior year quarter. SG&A as a percentage of net sales was 12.0%, compared to 13.2% in the prior year quarter. The increase in SG&A was primarily due to an increase in variable compensation due to the higher levels of gross profit and an increase in employee benefit costs.

Cash and cash equivalents were $108.3 million at December 31, 2021, compared to $95.7 million at December 31, 2020.


Conference Call and Webcast

Connection will host a conference call and live web cast today, February 7, 2022 at 4:30 p.m. ET to discuss its fourth quarter financial results. To access the conference call (audio only), please dial 877-776-4016 (US) or 973-638-3231 (International) and enter the confirmation number 9987005. A web-cast of the conference call, which will be broadcast live via the Internet, and a copy of this press release, can be accessed on Connection’s website at ir.connection.com. For those unable to participate in the live call, a replay of the webcast will be available at ir.connection.com approximately 90 minutes after the completion of the call and will be accessible on the site for approximately one year.

Non-GAAP Financial Information

EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted Earnings per Share are non-GAAP financial measures. These measures are included to provide additional information with respect to the Company’s operating performance and earnings. Non-GAAP measures are not a substitute for GAAP measures and should be considered together with the GAAP financial measures. Our non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. A reconciliation to the most directly comparable GAAP measures are available in the tables at the end of this release.

About Connection

PC Connection, Inc. and its subsidiaries, dba Connection, (www.connection.com; NASDAQ: CNXN) is a Fortune 1000 company headquartered in Merrimack, NH. With offices throughout the United States, Connection delivers custom-configured computer systems overnight from its ISO 9001:2015 certified technical configuration lab at its distribution center in Wilmington, OH. In addition, the Company has over 2,500 technical certifications to ensure that it can solve the most complex issues of its customers. Connection also services international customers through its GlobalServe subsidiary, a global IT procurement and service management company. Investors and media can find more information about Connection at http://ir.connection.com.

Connection–Business Solutions (800.800.5555) is a rapid-response provider of IT products and services serving primarily the small-and medium-sized business sector. It offers more than 460,000 brand-name products through its staff of technically trained sales account managers, publications, and its website at www.connection.com.

Connection–Enterprise Solutions (561.237.3300), www.connection.com/enterprise, provides corporate technology buyers with best-in-class IT solutions, in-depth IT supply-chain expertise, and real-time access to over 460,000 products and 2,500 vendors through MarkITplace®, a proprietary next-generation, cloud-based supply chain solution. The team’s engineers, software licensing specialists, and subject matter experts help reduce the cost and complexity of buying hardware, software, and services throughout the entire IT lifecycle.

Connection–Public Sector Solutions (800.800.0019), is a rapid-response provider of IT products and services to federal, state, and local government agencies and educational institutions through specialized account managers, publications, and online at www.connection.com/publicsector.


Cautionary Note Regarding Forward-Looking Statements

Statements in this release, other than statements of historical fact, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve important risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. You can generally identify forward-looking statements by words such as "believe," "expect," "intend," "plan," "estimate," "anticipate," "may," "should," "will," or similar statements or variations of such terms, although not all forward-looking statements include such terms. Such risks and uncertainties include, but are not limited to, the continuation of the COVID-19 pandemic, including, without limitation, its impact on global supply chains and responses to it, the impact of changes in market demand and the overall level of economic activity and environment, or in the level of business investment in information technology products, product availability and market acceptance, new products, continuation of key vendor and customer relationships and support programs, the ability to realize market demand for and competitive pricing pressures on the products and services marketed by the Company, fluctuations in operating results and the ability of the Company to manage personnel levels in response to fluctuations in revenue, the ability of the Company to hire and retain qualified sales representatives and other essential personnel, the impact of changes in accounting requirements, and other risks detailed in the Company's filings with the Securities and Exchange Commission, including under the caption "Risk Factors" in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2020. The Company assumes no obligation to update the information in this press release or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise, except as required by law.

1 Adjusted EBITDA is a non-GAAP measure. See page 10 for the definition and reconciliation.












 
CONSOLIDATED SELECTED FINANCIAL INFORMATION









At or for the Three Months Ended December 31,

2021


2020













%

(Amounts and shares in thousands, except operating data, P/E ratio, and per share data)








Change











 
Operating Data:









Net sales

$

800,174

 




$

675,686

 




18

%

Diluted earnings per share

$

0.85

 




$

0.62

 




37

%











 
Gross margin

 

15.9

%




 

16.1

%





Operating margin

 

3.9

%




 

2.9

%















 
Inventory turns

 

14

 




 

18

 





Days sales outstanding

 

65

 




 

75

 















 


% of


% of



Product Mix:
Net Sales


Net Sales



Notebooks/Mobility

 

38

%




 

34

%





Accessories

 

11

 




 

13

 





Displays

 

11

 




 

8

 





Software

 

11

 




 

12

 





Desktops

 

10

 




 

9

 





Servers/Storage

 

6

 




 

7

 





Net/Com Products

 

6

 




 

9

 





Other Hardware/Services

 

7

 




 

8

 





Total Net Sales

 

100

%




 

100

%















 










 
Stock Performance Indicators:









Actual shares outstanding

 

26,252

 




 

26,170

 





Total book value per share

$

26.00

 




$

24.32

 





Tangible book value per share

$

22.97

 




$

21.23

 





Closing price

$

43.13

 




$

47.29

 





Market capitalization

$

1,132,249

 




$

1,237,579

 





Trailing price/earnings ratio

 

16.3

 




 

22.3

 





LTM Adjusted EBITDA (1)

$

112,959

 




$

90,566

 





Adjusted market capitalization/LTM Adjusted EBITDA (2)

 

9.1

 




 

12.6

 















 
(1) Adjusted EBITDA is defined as EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted for stock-based compensation and restructuring and other related charges.
(2) Adjusted market capitalization is defined as gross market capitalization less cash balance.










 










 
REVENUE AND MARGIN INFORMATION









For the Three Months Ended December 31,

2021


2020





Net
Gross
Net
Gross

(amounts in thousands)
Sales
Margin
Sales
Margin











 
Enterprise Solutions

$

367,291

 


13.7

%


$

275,625

 


14.4

%



Business Solutions

 

303,479

 


19.1

 


 

265,173

 


19.1

 



Public Sector Solutions

 

129,404

 


14.4

 


 

134,888

 


13.7

 



Total

$

800,174

 


15.9

%


$

675,686

 


16.1

%













 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME









Three Months Ended December 31,


Years Ended December 31,


(amounts in thousands, except per share data)

 

2021

 


 

2020

 


 

2021

 


 

2020

 











 
Net sales

$

800,174

 


$

675,686

 


$

2,892,595

 


$

2,590,290

 


Cost of sales

 

673,139

 


 

566,827

 


 

2,428,016

 


 

2,171,483

 


Gross profit

 

127,035

 


 

108,859

 


 

464,579

 


 

418,807

 











 
Selling, general and administrative expenses

 

95,731

 


 

89,101

 


 

368,062

 


 

345,741

 


Restructuring and other charges

 

-

 


 

-

 


 

-

 


 

992

 


Income from operations

 

31,304

 


 

19,758

 


 

96,517

 


 

72,074

 











 
Other income, net

 

(1

)


 

(18

)


 

5

 


 

61

 


Gain from insurance policies

 

-

 


 

1,061

 


 

-

 


 

1,061

 


Income tax provision

 

(8,918

)


 

(4,505

)


 

(26,616

)


 

(17,431

)


Net income

$

22,385

 


$

16,296

 


$

69,906

 


$

55,765

 











 
Earnings per common share:








Basic

$

0.85

 


$

0.62

 


$

2.67

 


$

2.13

 


Diluted

$

0.85

 


$

0.62

 


$

2.65

 


$

2.12

 











 
Shares used in the computation of earnings per common share:








Basic

 

26,229

 


 

26,156

 


 

26,196

 


 

26,157

 


Diluted

 

26,372

 


 

26,328

 


 

26,364

 


 

26,336

 











 





 


December 31,


December 31,

CONDENSED CONSOLIDATED BALANCE SHEETS

 

2021

 


 

2020

 

(amounts in thousands)







 
ASSETS



Current Assets:



Cash and cash equivalents

$

108,310

 


$

95,655

 

Accounts receivable, net

 

608,307

 


 

611,021

 

Inventories, net

 

206,555

 


 

140,867

 

Prepaid expenses and other current assets

 

10,016

 


 

11,437

 

Total current assets

 

933,188

 


 

858,980

 

Property and equipment, net

 

61,011

 


 

61,537

 

Right-of-use assets, net

 

9,579

 


 

12,821

 

Goodwill

 

73,602

 


 

73,602

 

Intangibles assets, net

 

5,868

 


 

7,088

 

Other assets

 

910

 


 

1,345

 

Total Assets

$

1,084,158

 


$

1,015,373

 





 
LIABILITIES AND STOCKHOLDERS’ EQUITY



Current Liabilities:



Accounts payable

$

281,836

 


$

266,846

 

Accrued payroll

 

31,741

 


 

17,828

 

Accrued expenses and other liabilities

 

61,830

 


 

57,586

 

Total current liabilities

 

375,407

 


 

342,260

 

Deferred income taxes

 

19,278

 


 

18,525

 

Operating lease liability

 

6,789

 


 

9,631

 

Other liabilities

 

211

 


 

8,630

 

Total Liabilities

 

401,685

 


 

379,046

 

Stockholders’ Equity:



Common stock

 

290

 


 

289

 

Additional paid-in capital

 

122,354

 


 

119,891

 

Retained earnings

 

605,766

 


 

562,084

 

Treasury stock at cost

 

(45,937

)


 

(45,937

)

Total Stockholders’ Equity

 

682,473

 


 

636,327

 

Total Liabilities and Stockholders’ Equity

$

1,084,158

 


$

1,015,373

 










 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS









Three Months Ended December 31,


Years Ended December 31,

(amounts in thousands)

 

2021

 


 

2020

 


 

2021

 


 

2020

 

Cash Flows from Operating Activities:







Net income

$

22,385

 


$

16,296

 


$

69,906

 


$

55,765

 

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







Depreciation and amortization

 

3,037

 


 

3,268

 


 

12,202

 


 

13,603

 

Adjustments to credit losses reserve

 

1,603

 


 

40

 


 

3,307

 


 

3,316

 

Stock-based compensation expense

 

1,113

 


 

802

 


 

4,231

 


 

2,668

 

Deferred income taxes

 

753

 


 

(1,645

)


 

753

 


 

(1,645

)

Gain on life insurance proceeds

 

-

 


 

(1,061

)


 

-

 


 

(1,061

)

(Gain) loss on disposal of fixed assets

 

(38

)


 

15

 


 

(36

)


 

28

 









 
Changes in assets and liabilities:







Accounts receivable

 

(24,530

)


 

(20,115

)


 

(2,093

)


 

(63,650

)

Inventories

 

(31,181

)


 

(6,178

)


 

(65,688

)


 

(16,201

)

Prepaid expenses and other current assets

 

1,781

 


 

(346

)


 

1,421

 


 

622

 

Other non-current assets

 

121

 


 

321

 


 

435

 


 

(398

)

Accounts payable

 

64,811

 


 

(16,221

)


 

14,814

 


 

32,515

 

Accrued expenses and other liabilities

 

9,065

 


 

14,523

 


 

18,502

 


 

10,536

 

Net cash provided by (used in) operating activities

 

48,920

 


 

(10,301

)


 

57,754

 


 

36,098

 









 
Cash Flows from Investing Activities:







Purchases of equipment and capitalized software

 

(3,210

)


 

(1,422

)


 

(10,302

)


 

(11,033

)

Proceeds from sale of equipment

 

69

 




 

69

 



Proceeds from life insurance

 

-

 


 

-

 


 

1,500

 


 

-

 

Net cash used in investing activities

 

(3,141

)


 

(1,422

)


 

(8,733

)


 

(11,033

)









 
Cash Flows from Financing Activities:







Purchase of treasury shares

 

-

 


 

-

 


 

-

 


 

(10,222

)

Dividend payments

 

(26,224

)


 

-

 


 

(34,599

)


 

(8,427

)

Issuance of stock under Employee Stock Purchase Plan

 

-

 


 

-

 


 

-

 


 

536

 

Payment of payroll taxes on stock-based compensation through shares withheld

 

(973

)


 

(673

)


 

(1,767

)


 

(1,357

)

Net cash used in financing activities

 

(27,197

)


 

(673

)


 

(36,366

)


 

(19,470

)

Increase (decrease) in cash and cash equivalents

 

18,582

 


 

(12,396

)


 

12,655

 


 

5,595

 

Cash and cash equivalents, beginning of period

 

89,728

 


 

108,051

 


 

95,655

 


 

90,060

 

Cash and cash equivalents, end of period

$

108,310

 


$

95,655

 


$

108,310

 


$

95,655

 









 
Non-cash Investing Activities:







Dividend declaration

$

-

 


$

8,375

 


$

-

 


$

8,375

 

Life insurance proceeds recorded as receivable

$

-

 


$

1,500

 


$

-

 


$

1,500

 

Accrued capital expenditures

$

334

 


$

442

 


 

334

 


 

442

 









 
Supplemental Cash Flow Information:







Income taxes paid

$

865

 


$

5,643

 


$

21,465

 


$

19,441

 















 
EBITDA AND ADJUSTED EBITDA













 
A reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure is detailed below. Adjusted EBITDA is defined as EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted for restructuring and other charges, and stock-based compensation. Both EBITDA and Adjusted EBITDA are considered non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either includes or excludes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. We believe that EBITDA and Adjusted EBITDA provide helpful information with respect to our operating performance including our ability to fund our future capital expenditures and working capital requirements. Adjusted EBITDA also provides helpful information as it is the primary measure used in certain financial covenants contained in our credit agreements. When analyzing our operating performance, investors should use EBITDA and Adjusted EBITDA in addition to, and not as alternatives for Net income or any other performance measure presented in accordance with GAAP. Our non-GAAP financial measures may not be comparable to other similar titled measures of other companies.













 
(amounts in thousands)

Three Months Ended December 31,


Years Ended December 31, (1)




2021


2020


% Change


2021


2020


% Change


Net income

$

22,385


$

16,296


37

%


$

69,906


$

55,765


25

%


Depreciation and amortization

 

3,037


 

3,269


(7

%)


 

12,202


 

13,603


(10

%)


Income tax expense

 

8,918


 

4,505


98

%


 

26,616


 

17,431


53

%


Interest expense

 

4


 

29


(86

%)


 

4


 

107


(96

%)


EBITDA

 

34,344


 

24,099


43

%


 

108,728


 

86,906


25

%


Restructuring and other charges (2)

 

-


 

-


0

%


 

-


 

992


(100

%)


Stock-based compensation

 

1,113


 

801


39

%


 

4,231


 

2,668


59

%


Adjusted EBITDA

$

35,457


$

24,900


42

%


$

112,959


$

90,566


25

%















 
(1) LTM: Last twelve months












(2) Restructuring and other charges in 2020 consist of severance and other charges related to internal restructuring activities.

















 













 













 
ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE













 
A reconciliation from Net Income to Adjusted Net Income is detailed below. Adjusted Net Income is defined as Net Income plus restructuring and other charges, net of tax. A reconciliation from Diluted Earnings per Share to Adjusted Diluted Earnings per Share is detailed below. Adjusted Diluted Earnings per Share is defined Diluted Earnings per Shared adjusted for restructuring and other charges, net of tax. Adjusted Net Income and Adjusted Diluted Earnings Per Share are considered non-GAAP financial measures (see note above in Adjusted EBITDA for a description of non-GAAP financial measures). The Company believes that these non-GAAP disclosures provide helpful information with respect to the Company's operating performance. When analyzing our operating performance, investors should use Adjusted Net Income and Adjusted Diluted Earnings per Share in addition to, and not as alternatives for Net income and Diluted Earnings per Share or any other performance measure presented in accordance with GAAP.





 
(amounts in thousands, except per share data)

Three Months Ended December 31,


Years Ended December 31,




2021


2020


% Change


2021


2020


% Change


Net income

$

22,385


$

16,296


37

%


$

69,906


$

55,765


25

%


Restructuring and other charges, net of tax (1)

 

-


 

-


0

%


 

-


 

755


-100

%


Adjusted Net Income

$

22,385


$

16,296


37

%


$

69,906


$

56,520


24

%


Diluted shares

 

26,372


 

26,328




 

26,364


 

26,336




Diluted Earnings per Share

$

0.85


$

0.62


37

%


$

2.65


$

2.12


25

%


Adjusted Diluted Earnings per Share

$

0.85


$

0.62


37

%


$

2.65


$

2.15


24

%















 
(1) Restructuring and other charges in 2020 consist of severance and other charges related to internal restructuring activities.

 

Contacts

Investor Relations Contact:
Thomas Baker, 603.683.2505
Senior Vice President, CFO, and Treasurer
tom@connection.com