PC nection(CNXN)2025-02-05 21:05Financial Performance - Net sales for Q4 2024 increased by 1.8% year over year to $708.9 million, while full year net sales decreased by 1.7% to $2.8 billion[3][11] - Gross profit for Q4 2024 was flat at $129.8 million, with a gross margin of 18.3%, down 30 basis points year over year; for the full year, gross profit increased by 1.6% to $519.8 million, with a gross margin of 18.6%, up 60 basis points[5][11] - Net income for Q4 2024 decreased by 12.9% to $20.7 million, or $0.78 per diluted share, compared to $23.8 million, or $0.90 per diluted share, in the prior year quarter; full year net income increased by 4.6% to $87.1 million, or $3.29 per diluted share[3][11] - Adjusted EBITDA for the full year 2024 decreased by 5% to $118.9 million compared to $125.5 million in 2023[12] - Adjusted EBITDA for Q4 2024 was $28,083, down 14% from $32,738 in Q4 2023; for the year, it decreased by 5% to $118,936 from $125,516[33] - Adjusted Net Income for Q4 2024 was $20,721, a decrease of 13% from $23,778 in Q4 2023; for the year, it increased by 1% to $86,142 from $85,249[36] - Diluted Earnings per Share for Q4 2024 was $0.78, down 13% from $0.90 in Q4 2023; for the year, it increased by 4% to $3.29 from $3.15[36] Segment Performance - The Business Solutions segment saw a 3.7% decrease in net sales to $262.4 million in Q4 2024, while the Public Sector Solutions segment experienced a 42.9% increase to $143.7 million[6] - Notebook/mobility and desktop sales increased by 14% year over year, accounting for 46% of net sales in Q4 2024, while software sales decreased by 35%[14] Expenses and Investments - Selling, general and administrative expenses increased to $107.1 million in Q4 2024, representing 15.1% of net sales, up from 14.6% in the prior year quarter[9] - The company made significant investments in AI and modern infrastructure to enhance integrated solutions capabilities[2] - Stock-based compensation expense increased by 43% to $2,279 in Q4 2024 from $1,597 in Q4 2023; for the year, it rose by 21% to $8,475 from $7,022[33] Cash and Assets - Cash and cash equivalents and short-term investments were $442.6 million as of December 31, 2024, compared to $297.2 million a year earlier[10] - Total assets increased to $1,299,354,000 from $1,188,381,000 year-over-year[30] - Cash and cash equivalents rose to $178,318,000, up from $144,954,000 in the previous year[30] Market and Shareholder Information - The company declared a quarterly dividend of $0.15 per share, payable on March 14, 2025[1] - Market capitalization increased to $1,821,801,000 from $1,771,656,000 year-over-year[26] - Total stockholders' equity grew to $910,990,000, compared to $840,767,000 in the previous year[30] Cash Flow - Cash provided by operating activities for Q4 2024 was $25,248, compared to $12,289 in Q4 2023; for the year, it decreased to $173,868 from $197,954[31] - Cash used in investing activities for Q4 2024 was $5,603, significantly lower than $104,148 in Q4 2023; for the year, it decreased to $115,286 from $160,202[31] - Cash used in financing activities for Q4 2024 was $8,838, compared to $3,696 in Q4 2023; for the year, it increased to $25,218 from $15,728[31] Other Financial Metrics - Inventory turns improved to 23, compared to 17 in the same quarter last year[26] - The product mix showed an increase in Notebooks/Mobility sales to 36% of net sales, up from 32%[26] - The company recorded $1.7 million of income from a legal settlement, impacting other income positively[34] - The company reported a decrease in accounts receivable by $27,441 in Q4 2024 compared to a decrease of $19,270 in Q4 2023[31]