PC Mall Reports Fourth Quarter And Fiscal Year 2011 Results
PC Mall, Inc. (NASDAQ:MALL), a leading IT solutions provider, today reported financial results for the fourth quarter of 2011. Consolidated net sales for Q4 2011 were $389.8 million, a decrease of 8%, from $425.4 million in Q4 2010, primarily due to a $48.5 million decrease in sales to promotional companies under a vendor program change in Q4 by a large vendor. Excluding the effect of this program change, sales grew $12.9 million. Consolidated gross profit for Q4 2011 increased 2% to $50.4 million from $49.5 million in Q4 2010. Consolidated gross profit margin was 12.9% in Q4 2011 compared to 11.6% in Q4 2010. Consolidated operating profit for Q4 2011 decreased 84% to $1.1 million compared to $6.8 million for Q4 2010. Non-GAAP operating profit (as defined below) was $4.0 million in Q4 2011 compared to $6.8 million in Q4 2010. Consolidated operating profit margin for Q4 2011 decreased to 0.3% compared to 1.6% in Q4 2010. Non-GAAP operating profit margin (as defined below) was 1.0% in Q4 2011 compared to 1.6% in Q4 2010. Including the effects of the adjustments described below, consolidated net loss was $0.4 million for Q4 2011 compared to consolidated net income of $3.9 million for Q4 2010. Diluted loss per share for Q4 2011 was $0.03 compared to diluted EPS of $0.32 for Q4 2010. Adjusted EBITDA (as defined below) for Q4 2011 decreased 22% to $7.4 million from $9.6 million in Q4 2010.
Commenting on the Company’s fourth quarter results, Frank Khulusi, Chairman, President and CEO of PC Mall, Inc. said, “In the 4 th quarter we were able to grow our gross profit by 2%, despite a sales decline driven by tough comparisons and a significant decline in sales of certain products made to promotional companies under a program change which we discussed on our Q3 conference call. Our gross margin increased to 12.9%, the highest it has been in Q4 since 2008. Our mix improved in Q4 2011, driven by our continued focus on our services and solutions business. In fact, our services revenue increased by 23% on a consolidated basis, with double digit increases in each of our commercial segments. On the SG&A side, our costs were elevated in Q4, in part because of some one-time expenses and charges. At the same time, we continue to believe that the investments we are making are critical to our success going forward. We expect our investments in people, processes and systems will benefit us in an increasingly visible way in 2012 and beyond. While we are continuing to grow and invest in our services and solutions business, are monetizing real estate assets and are today announcing important strategic developments that I will discuss below, we are always focused on the near-term profitability of our business. As we build for the future, we feel we are well positioned to reach our previously announced financial goals in 2012.”
Commenting on strategic developments, Mr. Khulusi stated, “We are excited to announce significant strategic developments that we think are important to our continued success. Given our growth expectations and strategic initiatives, we have elected to add to our leadership team. I am very pleased to announce the hiring of Mark McGrath as President of PC Mall, Inc., working directly with me in my capacity as Chief Executive Officer, beginning March 5, 2012. Mark brings a wealth of experience and talent to our company as discussed in the corresponding press release, which speaks to Mark’s background, his role going forward, and additional information.”
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