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8-K - 8-K - PCM, INC.a13-17931_18k.htm

EXHIBIT 99.1

 

Contact:

Matt Selinger, Partner

Genesis Select Corporation

(303) 415-0200

 

PCM REPORTS RECORD SECOND QUARTER RESULTS

 

Second Quarter Highlights (2013 compared to 2012):

 

·                  Record Q2 net sales: increased 4% to $366.4 million

·                  Record Q2 gross profit: increased 5% to $51.1 million — gross profit margin increased to 14.0% from 13.8%

·                  Record Q2 EBITDA: increased 40% to $9.2 million, or $9.3 million excluding severance and restructuring related costs

·                  Record Q2 operating profit: increased 84% to $6.3 million

·                   Record Q2 diluted earnings per share (EPS): increased 125% to $0.27 and adjusted EPS was $0.29 excluding severance and restructuring related costs

 

El Segundo, California — August 6, 2013 — PCM, Inc. (NASDAQ: PCMI), a leading technology solutions provider, today reported financial results for the second quarter of 2013. Consolidated net sales for Q2 2013 were $366.4 million, an increase of $14.7 million, or 4%, from $351.7 million in Q2 2012. Consolidated gross profit for Q2 2013 increased $2.6 million, or 5%, to $51.1 million from $48.5 million in Q2 2012. Consolidated gross profit margin was 14.0% in Q2 2013, up from 13.8% in Q2 2012. EBITDA (as defined below), which includes $0.1 million and $0.6 million of severance and restructuring related costs for Q2 2013 and Q2 2012, respectively, increased $2.6 million, or 40%, to $9.2 million from $6.6 million in Q2 2012. Consolidated operating profit for Q2 2013, which includes $0.4 million and $0.8 million of severance and restructuring related costs in Q2 2013 and Q2 2012, respectively, increased $2.9 million, or 84%, to $6.3 million compared to $3.4 million for Q2 2012. Consolidated net income, which includes $0.2 million and $0.4 million of severance and restructuring related costs, net of tax, in Q2 2013 and Q2 2012, respectively, increased $1.8 million, or 121%, to $3.2 million in Q2 2013 compared to $1.4 million for Q2 2012. Diluted EPS for Q2 2013 was $0.27 compared to diluted EPS of $0.12 for Q2 2012, an increase of 125%. Excluding severance and restructuring related costs, adjusted EPS was $0.29 in Q2 2013 compared to diluted EPS of $0.15 for Q2 2012, an increase of 93%.

 

Commenting on the Company’s second quarter results, Frank Khulusi, Chairman, President and CEO of PCM, Inc. said, “I am very pleased to report our record second quarter results. In a stable but still challenging demand environment, we believe we were able to grow our market-share by increasing sales by 4% year-over-year and 9% sequentially. More importantly, we grew our gross profit margin to 14.0% from 13.8%, despite lower margin sales to certain government accounts and nearly doubled our operating profit to a Q2 record. While achieving this faster than market growth, our teams improved our commercial sales mix and kept SG&A expenses flat, resulting in the operating leverage that drove our Q2 record $0.29 in EPS for this quarter, excluding severance and restructuring related costs. We saw strength in many of our strategic offerings, including software, networking, storage and notebooks, which increased 20%, 24%, 37% and 25%, respectively. The productivity of our teams continues to improve, and we remain focused on the growth of our solutions portfolio and on providing our customers with customized IT solutions. Our rebranding and other growth initiatives and investments continue, and we look forward to those initiatives making more substantive contributions to our future results.”

 

Reclassifications

 

As previously announced, we have revised the December 31, 2012 balance sheet to reduce accounts receivable and deferred revenue by $12.2 million to correct for an immaterial error resulting from the timing of the recognition of the related amounts. We had previously recognized deferred revenue when the related amounts had been billed rather than when the cash had been received in advance of product delivery. Also, we have revised the cash flow statement for the six months ended June 30, 2012 included herein to reflect the reclassification related to the accounts receivable and deferred revenues as discussed above.

 

As we stated in the fourth quarter of 2012, we revised our accounting for revenue recognition of certain software maintenance and subscription transactions that were previously recorded on a gross basis, to record such transactions on a net sales basis with no corresponding cost of goods sold. We have revised revenues and cost of sales in all reported prior periods to reflect this immaterial change, which had no impact on our consolidated gross profit, operating profit or earnings per share.

 

1



 

Results of Operations

 

Net Sales

 

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

 

 

 

Three Months Ended June 30,

 

 

 

 

 

 

 

2013

 

2012

 

 

 

 

 

 

 

Net Sales

 

Percentage of
Total Net Sales

 

Net Sales

 

Percentage of
Total Net Sales

 

Dollar Change

 

Percent
Change

 

Commercial

 

$

257,373

 

70

%

$

259,539

 

74

%

$

(2,166

)

(1

)%

Public Sector

 

61,190

 

17

 

35,841

 

10

 

25,349

 

71

 

MacMall

 

47,858

 

13

 

56,324

 

16

 

(8,466

)

(15

)

Corporate & Other

 

(1

)

 

(30

)

 

29

 

NM

(1)

Consolidated

 

$

366,420

 

100

%

$

351,674

 

100

%

$

14,746

 

4

%

 


(1)  Not meaningful.

 

Consolidated net sales were $366.4 million in Q2 2013 compared to $351.7 million in Q2 2012, an increase of $14.7 million, or 4%.  Consolidated sales of services were $32.6 million in Q2 2013 compared to $31.1 million in Q2 2012, an increase of $1.5 million, or 5%, and represented 9% of net sales in each of Q2 2013 and Q2 2012.

 

Commercial segment net sales were $257.4 million in Q2 2013 compared to $259.5 million in Q2 2012, a decrease of $2.1 million, or 1%. Sales of services in the Commercial segment increased by $0.7 million, or 2%, to $30.9 million in Q2 2013 from $30.2 million in Q2 2012, and represented 12% of Commercial segment net sales in each of Q2 2013 and Q2 2012.

 

Public Sector net sales were $61.2 million in Q2 2013 compared to $35.8 million in Q2 2012, an increase of $25.4 million, or 71%. This increase was primarily due to a $27.6 million, or 218%, increase in our federal government business, partially offset by a $1.8 million, or 8%, decrease in our state and local government and educational institutions (SLED) business. The increase in our federal government business was primarily due to sales made under our new or expanded contracts awarded in the fourth quarter of 2012. The decrease in our SLED business was primarily due to a higher mix of software maintenance products that are reported on a net basis.

 

MacMall net sales were $47.9 million in Q2 2013 compared to $56.3 million in Q2 2012, a decrease of $8.4 million, or 15%. This decrease in MacMall net sales was primarily due to a decrease in sales of tablets during Q2 2013 compared to Q2 2012.

 

Gross Profit and Gross Profit Margin

 

Consolidated gross profit was $51.1 million in Q2 2013, an increase of $2.6 million, or 5%, from $48.5 million in Q2 2012. Consolidated gross profit margin grew to 14.0% from in Q2 2013 from 13.8% in Q2 2012, reflecting our improved product mix and a focus on solutions sales.  We were able to improve our gross profit margin despite lower margin sales to certain federal customers.

 

Selling, General & Administrative Expenses

 

Consolidated SG&A expenses were $44.8 million in Q2 2013 compared to $45.1 million in Q2 2012, a decrease of $0.3 million, or 1%. Consolidated SG&A expenses as a percentage of net sales decreased to 12.2% in Q2 2013 from 12.8% in Q2 2012.

 

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
June 30,

 

 

 

 

 

Change in
Operating

 

 

 

2013

 

2012

 

Change in

 

Profit

 

 

 

Operating

 

Operating
Profit/(Loss)

 

Operating

 

Operating
Profit/(Loss)

 

Operating
Profit (Loss)

 

(Loss)
Margin

 

 

 

Profit (Loss)

 

Margin(1)

 

Profit/(Loss

 

Margin(1)

 

$

 

%

 

%

 

Commercial

 

$

16,989

 

6.6

%

$

15,787

 

6.1

%

$

1,202

 

8

%

0.5

%

Public Sector

 

1,757

 

2.9

 

(240

)

(0.7

)

1,997

 

NM

(2)

3.6

 

MacMall

 

667

 

1.4

 

753

 

1.3

 

(86

)

(11

)

0.1

 

Corporate & Other

 

(13,123

)

(3.6

)(1)

(12,875

)

(3.7

)(1)

(248

)

2

 

0.1

(1)

Consolidated

 

$

6,290

 

1.7

%

$

3,425

 

1.0

 

$

2,865

 

84

%

0.7

%

 


(1)         Operating profit margin for Corporate and 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.

(2)         Not meaningful.

 

Consolidated operating profit was $6.3 million in Q2 2013 compared to $3.4 million in Q2 2012, an increase of $2.9 million or 84%.

 

Commercial operating profit was $17.0 million in Q2 2013 compared to $15.8 million in Q2 2012, an increase of $1.2 million, or 8% primarily due to increased net sales discussed above and the related $1.8 million increase in Commercial gross profit, as well as a $0.3 million decrease in amortization expenses, partially offset by a $0.4 million increase in personnel costs, and a $0.3 million increase in each of its consulting expenses and other business taxes.

 

Public Sector operating profit was $1.8 million in Q2 2013 compared to an operating loss of $0.2 million in Q2 2012. This increase was primarily due to a $1.6 million increase in Public Sector gross profit and a decrease in personnel costs of $0.4 million and other improvements in SG&A expenses.

 

MacMall operating profit was $0.7 million in Q2 2013 compared to $0.8 million in Q2 2012, a decrease of $0.1 million primarily due to a $0.7 million decrease in MacMall gross profit and a $0.4 million increase in advertising expenses, partially offset by a $0.4 million reduction in personnel costs and a $0.2 million decrease in credit card processing fees.

 

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 Q2 2013 compared to $12.9 million in Q2 2012, an increase of $0.2 million, or 2%, primarily due to a $0.2 million increase in personnel costs.

 

Consolidated Balance Sheet

 

Accounts receivable at June 30, 2013 was $217.4 million, an increase of $27.3 million from December 31, 2012 primarily due to sales growth. Inventory at June 30, 2013 was $67.3 million, a decrease of $1.6 million from December 31, 2012. Accounts payable at June 30, 2013 was $112.2 million, an increase of $9.2 million from December 31, 2012. Capital expenditures during the six months ended June 30, 2013 were $5.7 million compared to capital expenditures of $5.1 million during the six months ended June 30, 2012. Outstanding borrowings under our line of credit increased by $12.8 million to $100.4 million at June 30, 2013 compared to December 31, 2012. Working capital increased to $58.8 million at June 30, 2013 from $55.4 million at December 31, 2012, despite a $1.6 million investment in stock repurchases during that time period.

 

Account Executive Headcount

 

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

 

Average Account Executive

 

Three Months Ended
June 30,

 

Headcount By Segment(1):

 

2013

 

2012

 

Commercial

 

465

 

474

 

Public Sector

 

113

 

122

 

MacMall

 

136

 

144

 

Total

 

714

 

740

 

 


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

 

3



 

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.

 

 

 

Three Months Ended
June 30,

 

Y/Y
Sales

 

Product Sales Mix:

 

2013

 

2012

 

Growth

 

Software (1)

 

17

%

16

%

20

%

Notebooks

 

17

 

15

 

25

 

Desktops

 

9

 

11

 

(2

)

Networking

 

9

 

8

 

24

 

Delivered services

 

9

 

9

 

5

 

Storage

 

6

 

4

 

37

 

Displays

 

5

 

5

 

16

 

Manufacturer service and warranty

 

5

 

4

 

49

 

Input devices

 

4

 

3

 

56

 

Tablets

 

4

 

7

 

(44

)

Accessories

 

3

 

3

 

(3

)

Servers

 

2

 

3

 

(18

)

Other (2)

 

10

 

12

 

(2

)

Total

 

100

%

100

%

 

 

 


(1)         Software includes gross sales billed to customers including software licenses, maintenance and enterprise agreements at their full billed value.

(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) 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. Adjusted EPS removes the effect of restructuring expenses related to our rebranding initiative. EBITDA and adjusted EPS should be used in conjunction with other GAAP financial measures and are not presented as an alternative measure of operating results, as determined in accordance with GAAP. We believe that these non-GAAP financial measures allow 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 measures is included in a table below.

 

Conference Call

 

Management will hold a conference call, which will be webcast, on August 6, 2013 at 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time) to discuss second quarter results. To listen to PCM management’s discussion of its second quarter results live, access http://investor.pcm.com/events.cfm.

 

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 12:00 p.m. ET on August 6, 2013 until August 13, 2013 and can be accessed by calling: (855) 859-2056 (International (404) 537-3406) and inputting pass code 23223465.

 

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 June 30, 2013, we generated over $1.4 billion in revenue and now have over 2,800 employees, 67% of which are in sales or service positions. For more information please visit investor.pcm.com or call (310) 354-5600.

 

4



 

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 strategic developments such as statements related to our branding and other growth initiatives and related potential benefits, our focus on sales of solutions in our commercial segment, the productivity of our teams or other statements or expectations or goals for sales growth, gross profit, operating leverage or EBITDA. 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 IT infrastructure; the relationship between the number of our account executives and productivity; our ability to attract and retain key employees; our ability to receive expected returns on strategic investments including without limit investments in our brands and new go to market strategy and expanded business models, including without limit, our services and consultative selling capabilities and new data center; 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; 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 the our pricing strategy on our operating results; 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; 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 March 31, 2013, 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
June 30,

 

Six Months Ended
June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Net sales

 

$

366,420

 

$

351,674

 

$

703,589

 

$

686,371

 

Cost of goods sold

 

315,285

 

303,169

 

605,500

 

591,094

 

Gross profit

 

51,135

 

48,505

 

98,089

 

95,277

 

Selling, general and administrative expenses

 

44,845

 

45,255

 

88,921

 

91,898

 

Revaluation of earnout liability

 

 

(175

)

 

(175

)

Operating profit

 

6,290

 

3,425

 

9,168

 

3,554

 

Interest expense, net

 

781

 

909

 

1,553

 

1,840

 

Income before income taxes

 

5,509

 

2,516

 

7,615

 

1,714

 

Income tax expense

 

2,346

 

1,085

 

3,216

 

753

 

Net income

 

$

3,163

 

$

1,431

 

$

4,399

 

$

961

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Earnings Per Common Share

 

 

 

 

 

 

 

 

 

Basic

 

$

0.28

 

$

0.12

 

$

0.38

 

$

0.08

 

Diluted

 

0.27

 

0.12

 

0.37

 

0.08

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

11,488

 

12,032

 

11,483

 

12,016

 

Diluted

 

11,771

 

12,166

 

11,734

 

12,221

 

 

6



 

PCM, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO

CONSOLIDATED OPERATING PROFIT AND DILUTED EPS

(unaudited, in thousands, except per share amounts)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

EBITDA(a):

 

 

 

 

 

 

 

 

 

Consolidated operating profit

 

$

6,290

 

$

3,425

 

$

9,168

 

$

3,554

 

Add:

Consolidated depreciation expense

 

2,408

 

2,365

 

4,849

 

4,769

 

 

Consolidated amortization expense

 

524

 

787

 

1,048

 

1,533

 

EBITDA

 

$

9,222

 

$

6,577

 

$

15,065

 

$

9,856

 

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

Consolidated income before income taxes

 

$

5,509

 

$

2,516

 

$

7,615

 

$

1,714

 

Less: Income tax expense

 

(2,346

)

(1,085

)

(3,216

)

(753

)

Consolidated net income

 

$

3,163

 

$

1,431

 

$

4,399

 

$

961

 

 

 

 

 

 

 

 

 

 

 

Consolidated income before income taxes

 

$

5,509

 

$

2,516

 

$

7,615

 

$

1,714

 

Add: Severance & restructuring related costs (b)

 

353

 

783

 

812

 

1,538

 

Adjusted income before income taxes

 

5,862

 

3,299

 

8,427

 

3,252

 

Less: Adjusted income tax expense

 

(2,497

)

(1,422

)

(3,556

)

(1,428

)

Non-GAAP net income

 

$

3,365

 

$

1,877

 

$

4,871

 

$

1,824

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

GAAP diluted EPS

 

$

0.27

 

$

0.12

 

$

0.37

 

$

0.08

 

Non-GAAP diluted EPS

 

0.29

 

0.15

 

0.42

 

0.15

 

Diluted weighted average number of common shares outstanding

 

11,771

 

12,166

 

11,734

 

12,221

 

 


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

(b)         Relates to severance and restructuring related costs in connection with our 2012 rebranding and cost savings initiatives.

 

7



 

PCM, INC.

CONSOLIDATED BALANCE SHEETS

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

 

 

 

June 30,
2013

 

December 31,
2012

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

11,378

 

$

6,535

 

Accounts receivable, net of allowances of $1,340 and $1,459

 

217,361

 

190,079

 

Inventories

 

67,335

 

68,942

 

Prepaid expenses and other current assets

 

22,341

 

14,028

 

Deferred income taxes

 

3,244

 

3,004

 

Total current assets

 

321,659

 

282,588

 

Property and equipment, net

 

51,040

 

48,180

 

Deferred income taxes

 

277

 

380

 

Goodwill

 

25,510

 

25,510

 

Intangible assets, net

 

6,050

 

7,098

 

Other assets

 

4,679

 

1,979

 

Total assets

 

$

409,215

 

$

365,735

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

112,176

 

$

102,972

 

Accrued expenses and other current liabilities

 

29,661

 

30,371

 

Deferred revenue

 

19,615

 

5,411

 

Line of credit

 

100,396

 

87,630

 

Notes payable — current

 

1,022

 

812

 

Total current liabilities

 

262,870

 

227,196

 

Notes payable and other long-term liabilities

 

19,251

 

16,750

 

Deferred income taxes

 

6,539

 

5,678

 

Total liabilities

 

288,660

 

249,624

 

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; 14,790,853 and 14,560,801 shares issued; and 11,528,460 and 11,525,459 shares outstanding, respectively

 

15

 

14

 

Additional paid-in capital

 

114,133

 

111,952

 

Treasury stock, at cost: 3,262,393 and 3,035,342 shares, respectively

 

(15,246

)

(13,688

)

Accumulated other comprehensive income

 

1,932

 

2,511

 

Retained earnings

 

19,721

 

15,322

 

Total stockholders’ equity

 

120,555

 

116,111

 

Total liabilities and stockholders’ equity

 

$

409,215

 

$

365,735

 

 

8



 

PCM, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

 

 

Six Months Ended
June 30,

 

 

 

2013

 

2012

 

Cash Flows From Operating Activities

 

 

 

 

 

Net income

 

$

4,399

 

$

961

 

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

5,897

 

6,302

 

Provision for deferred income taxes

 

726

 

2,015

 

Excess tax benefit related to stock option exercises

 

(37

)

(39

)

Non-cash stock-based compensation

 

783

 

1,051

 

Decrease in earnout liability

 

 

(175

)

Change in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(27,282

)

8,028

 

Inventories

 

1,607

 

3,036

 

Prepaid expenses and other current assets

 

(8,532

)

(3,053

)

Other assets

 

(1,816

)

51

 

Accounts payable

 

410

 

8,303

 

Accrued expenses and other current liabilities

 

(717

)

(4,602

)

Deferred revenue

 

14,204

 

(547

)

Total adjustments

 

(14,757

)

20,370

 

Net cash (used in) provided by operating activities

 

(10,358

)

21,331

 

Cash Flows From Investing Activities

 

 

 

 

 

Purchases of property and equipment

 

(5,732

)

(5,082

)

Net cash used in investing activities

 

(5,732

)

(5,082

)

Cash Flows From Financing Activities

 

 

 

 

 

Net borrowings (payments) under line of credit

 

12,766

 

(20,099

)

Capital lease proceeds

 

206

 

4,356

 

Borrowing under note payable

 

2,393

 

2,859

 

Payments under notes payable

 

(458

)

(552

)

Change in book overdraft

 

8,722

 

(2,744

)

Payments of obligations under capital lease

 

(1,431

)

(1,123

)

Proceeds from stock issued under stock option plans

 

1,399

 

92

 

Payment for deferred financing costs

 

(752

)

 

Common shares repurchased and held in treasury

 

(1,558

)

 

Excess tax benefit related to stock option exercises

 

37

 

39

 

Net cash provided by (used in) financing activities

 

21,324

 

(17,172

)

Effect of foreign currency on cash flow

 

(391

)

(3

)

Net change in cash and cash equivalents

 

4,843

 

(926

)

Cash and cash equivalents at beginning of the period

 

6,535

 

9,484

 

Cash and cash equivalents at end of the period

 

$

11,378

 

$

8,558

 

Supplemental Cash Flow Information

 

 

 

 

 

Interest paid

 

$

1,393

 

$

1,638

 

Income taxes paid

 

2,134

 

969

 

Supplemental Non-Cash Investing and Financing Activities

 

 

 

 

 

Purchase of property and equipment

 

$

1,985

 

$

346

 

Deferred financing costs

 

228

 

 

 

9