Item 5. Market for Registrant’s Common Equity
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
Market Information
Our common stock commenced trading on March 3, 1998, on the Nasdaq Global Select Market and trades today under the symbol “CNXN”. As of March 12, 2021, there were 26,174,844 shares of our common stock outstanding, held by approximately 47 stockholders of record. This figure does not include an estimate of the number of beneficial holders whose shares are held of record by brokerage firms.
Dividends
In 2020, we declared a special cash dividend of $0.32 per share. The total cash payment of $8.4 million was made on January 29, 2021 to stockholders of record at the close of business on January 12, 2021. In 2019, we declared a special cash dividend of $0.32 per share. The total cash payment of $8.4 million was made on January 10, 2020 to stockholders of record at the close of business on December 27, 2019. Declaration of any future cash dividends will depend upon our financial position, strategic plans, and general business conditions.
Share Repurchase Authorization
The following table sets forth certain information with respect to repurchases of our common stock during the quarter ended December 31, 2020.
ISSUER PURCHASES OF EQUITY SECURITIES
Total Number of
Approximate Dollar Value
Shares Purchased as
of Shares that May Yet Be
Total Number
Part of Publicly
Purchased Under the Plans
of Shares
Average Price Paid
Announced Plans or
or Programs
Period
Purchased
Per Share
Programs
(in thousands) (1)
10/01/20-10/31/20
—
$
—
—
$
12,692
11/01/20-11/30/20
—
—
—
$
12,692
12/01/20-12/31/20
—
—
—
$
12,692
—
$
—
—
(1) In 2001, our Board of Directors authorized the spending of up to $15.0 million to repurchase shares of our common stock. In 2014, our Board approved a new share repurchase program authorizing up to an additional $15.0 million in share repurchases, for a total authorized repurchase amount of $30.0 million. We consider block repurchases directly from larger stockholders, as well as open market purchases, in carrying out our ongoing stock repurchase program.
In 2018, our Board approved a new share repurchase program authorizing up to $25.0 million in additional share repurchases. There is no fixed termination date for this repurchase program. Purchases may be made in open-market transactions, block transactions on or off an exchange, or in privately negotiated transactions. The timing and amount of any share repurchases will be based on market conditions and other factors.
In 2020, we repurchased 0.2 million shares for $10.2 million under the Board-approved repurchase programs. As of December 31, 2020, we have repurchased an aggregate of 2.6 million shares for $42.3 million under our Board-approved repurchase programs. At December 31, 2020, the maximum approximate dollar value of shares that may yet be purchased under Board-authorized programs was $12.7 million.
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Stock Performance Graph
The following performance graph and related information shall not be deemed “soliciting material” or to be “filed” with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or the Exchange Act, each as amended, except to the extent that we specifically incorporate it by reference into such filing.
The following stock performance graph compares cumulative total stockholder return on our common stock for the period from December 31, 2015 through December 31, 2020 with the cumulative total return for (i) the Nasdaq Stock Market Composite and (ii) the Nasdaq Retail Trade Stocks (Peer Index) for the period starting December 31, 2015 and ending December 31, 2020. This graph assumes the investment of $100 on December 31, 2015 in our common stock and in each of the two Nasdaq indices, and that dividends are reinvested.
Base Period
Years Ended
Company Name / Index
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
PC Connection, Inc.
100.00
125.59
118.69
136.12
228.79
217.87
Nasdaq Stock Market-Composite
100.00
108.87
141.13
137.12
187.44
271.64
Nasdaq Retail Trade (Peer Index)
100.00
101.15
107.60
108.09
130.05
154.18
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Item 6. Selected Financial Data
The following selected financial data should be read in conjunction with our Consolidated Financial Statements and the Notes thereto, and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other financial information included elsewhere in this Annual Report on Form 10-K.
Years Ended December 31,
2020
2019
2018
2017
2016
(dollars in thousands, except per share)
Consolidated Statement of Operations Data:
Net sales
$
2,590,290
$
2,820,034
$
2,699,489
$
2,911,883
$
2,692,592
Cost of sales
2,171,483
2,368,724
2,288,403
2,529,807
2,321,435
Gross profit
418,807
451,310
411,086
382,076
371,157
Selling, general and administrative expenses
345,741
338,635
324,433
300,913
287,231
Restructuring and other charges
992
703
967
3,636
3,406
Income from operations
72,074
111,972
85,686
77,527
80,520
Other income (expenses)
1,122
707
2,978
98
(67)
Income before taxes
73,196
112,679
88,664
77,625
80,453
Income tax provision
(17,431)
(30,568)
(24,072)
(22,768)
(32,342)
Net income
$
55,765
$
82,111
$
64,592
$
54,857
$
48,111
Basic earnings per share
$
2.13
$
3.12
$
2.42
$
2.05
$
1.81
Diluted earnings per share
$
2.12
$
3.10
$
2.41
$
2.04
$
1.80
As of December 31,
2020
2019
2018
2017
2016
(dollars in thousands)
Consolidated Balance Sheet Data:
Working capital
$
516,720
$
467,488
$
409,380
$
368,080
$
328,917
Total assets
1,015,373
937,335
805,355
747,851
686,134
Total stockholders’ equity
636,327
597,312
525,903
482,252
433,442
Cash dividends declared per share
$
0.32
$
0.32
$
0.32
$
0.34
$
0.34
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