PCM, Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2016; Revises Earnings Guidance for the Year 2016; Provides Earnings Guidance for the Fourth Quarter of 2016
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.