Business
Connection (CNXN) Reports Fourth Quarter and Full Year 2024 Results
FOURTH QUARTER SUMMARY: Net sales: $708.9 million, up 1.8% y/y Gross profit: $129.8 million, flat y/y Gross margin: 18.3%, down 30 basis points y/y Net
About this update from Pc Connection, Inc.
[{"type":"text","content":"\nFOURTH QUARTER SUMMARY:\n\n\n\nNet sales: $708.9 million, up 1.8% y/y\n\n\n\nGross profit: $129.8 million, flat y/y\n\n\n\nGross margin: 18.3%, down 30 basis points y/y\n\n\n\nNet income: $20.7 million, down 12.9% y/y\n\n\n\nDiluted EPS: $0.78, compared to $0.90 y/y\n\n\n\nFULL YEAR SUMMARY:\n\n\n\nNet sales: $2.8 billion, down 1.7% y/y\n\n\n\nGross profit: $519.8 million, up 1.6% y/y\n\n\n\nGross margin: 18.6%, up 60 basis points y/y\n\n\n\nNet income: $87.1 million, up 4.6% y/y\n\n\n\nDiluted EPS: $3.29, compared to $3.15 y/y\n\n\n\n MERRIMACK, N.H.--(BUSINESS WIRE)--\nConnection (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, 2024. The Company also announced that its Board of Directors declared a quarterly dividend of $0.15 per share of the Company’s common stock. Payment will be made on March 14, 2025, to shareholders of record on February 25, 2025.\n\n\n\"In 2024, we had record gross margins driven by sales of advanced technologies, which include cloud, software, and security solutions,\" said Timothy McGrath, President and Chief Executive Officer of Connection. \"Also, during the year we made significant investments to enhance our integrated solutions capabilities including AI and modern infrastructure. Moving forward, we believe that the market for IT products and solutions will gradually improve as the year progresses,\" concluded Mr. McGrath.\n\n\nFourth Quarter of 2024 Results:\n\n\nNet sales for the quarter ended December 31, 2024 increased by 1.8%, year over year. Gross profit was flat while gross margin decreased 30 basis points to 18.3%, compared to the prior year quarter. Net income for the quarter ended December 31, 2024 decreased by 12.9% to $20.7 million, or $0.78 per diluted share, compared to net income of $23.8 million, or $0.90 per diluted share, for the prior year quarter.\n\n\nPerformance by Segment:\n\n\n\nNet sales for the Business Solutions segment decreased by 3.7% to $262.4 million in the fourth quarter of 2024, compared to $272.4 million in the prior year quarter. Gross profit decreased by 0.8% to $62.6 million in the fourth quarter of 2024, compared to $63.2 million in the prior year quarter. Gross margin increased by 70 bas...