PCM, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2016. Consolidated net sales were $584.9 million in the three months ended September 30, 2016 compared to $404.9 million in the three months ended September 30, 2015, an increase of $180.0 million, or 44%. This increase was primarily due to the addition of sales from fourth quarter 2015 acquisitions and strong organic growth predominantly in field sales organization, as well as growth in state, local and educational business within the public sector segment. Consolidated operating profit was $10.7 million compared to $1.0 million in the three months ended September 30, 2015, an increase of $9.7 million. Income from continuing operations (after tax) was $5.3 million, or $0.43 per diluted share compared to loss from continuing operation of $0.5 million, or $0.04 per diluted share, in the same period last year. Net income was $5.3 million or $0.43 per diluted share against net loss of $0.8 million or $0.07 per diluted share reported last year. Income from continuing operations before income taxes was $9.1 million against loss from continuing operations before income taxes of $0.06 million reported last year. Adjusted EBITDA was $15.2 million compared to $6.2 million for the three months ended September 30, 2015. EBITDA was $14.6 million against $4.1 million reported last year. Adjusted EBITDA was $15.2 million against $6.2 million reported last year. Non-GAAP consolidated income from continuing operations was $6.5 million or $0.52 per diluted share against $1.6 million or $0.12 per diluted share reported last year.

For the nine months, the company reported income from continuing operations of $12.9 million or $1.04 per share compared to loss from continuing operations of $3.8 million or $0.32 per share reported in the same period last year. Operating profit was $25.6 million against operating loss of $3.4 million reported last year. Net sales were $1,664 million against $1,179.8 million reported last year. Income from continuing operations before income taxes was $21.05 million against loss from continuing operations before income taxes of $6.1 million reported last year. Net income was $12.9 million or $1.04 per diluted share against net loss of $4.1 million or $0.34 per diluted share reported last year. EBITDA was $37.5 million against $5.7 million reported last year. Adjusted EBITDA was $40.6 million against $15.2 million reported last year. Non-GAAP consolidated income from continuing operations was $17.45 million or $1.41 per diluted share against $2.7 million or $0.22 per diluted share reported last year. Cash flow from operations for the nine months ended September 30, 2016 of $73.1 million, compared to cash used in operations of $6.3 million in the nine months ended September 30, 2015. Purchases of property and equipment (capital expenditures) were $5.1 million against $19.7 million reported last year.

The company is increasing its full year adjusted EPS guidance to a range of $1.81 to $1.89 per share on sales in the range of $2.23 billion to $2.24 billion. Previous guidance was $1.51 to $1.64 in adjusted EPS for the 2016 fiscal year. The company is increasing its expectation on gross margin from a range of 13.5% to 14% to a range of 13.75% to 14.25% and annual tax rate of approximately 39%.

For the fourth quarter, this translates to adjusted EPS expected in the range of $0.40 to $0.48 per share on revenues of $565 million to $580 million.