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Segment Information | 9 Months Ended
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Sep. 30, 2023
Segment Information |
Segment Information | 16. Segment Information: ​ The Company distributes software developed by others through resellers indirectly to customers worldwide. We also resell computer software and hardware developed by others and provide technical services directly to customers worldwide. ​ FASB ASC Topic 280, “Segment Reporting,” requires that public companies report profits and losses and certain other information on their “reportable operating segments” in their annual and interim financial statements. The internal organization used by the public company’s Chief Operating Decision Maker (CODM) to assess performance and allocate resources determines the basis for reportable operating segments. The Company’s CODM is the Chief Executive Officer. ​ The Company is organized into two reportable operating segments. The “Distribution” segment distributes technical software to corporate resellers, value added resellers (VARs), consultants and systems integrators worldwide. The “Solutions” segment is a cloud solutions provider and value-added reseller of software, hardware and services to customers worldwide. ​ As permitted by FASB ASC Topic 280, the Company has utilized the aggregation criteria in combining its operations in Canada, Europe and the United Kingdom with the domestic segments as the international operations provide the same products and services to similar clients and are considered together when the Company’s CODM decides how to allocate resources. ​ Segment income is based on segment revenue less the respective segment’s cost of revenues as well as segment direct costs (including such items as payroll costs and payroll related costs, such as profit sharing, incentive awards and insurance) and excluding general and administrative expenses not attributed to an individual segment business unit. The Company only identifies accounts receivable, vendor prepayments and inventory by segment as shown below as “Selected Assets” by segment; it does not allocate its other assets, including capital expenditures by segment. The following segment reporting information of the Company is provided: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine months ended | ​ | Three months ended
​ | ​ | September 30, | ​ | September 30,
​ | ​ | 2023 |  | 2022 |  | 2023 |  | 2022
Net Sales: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 226,905 | ​ | $ | 195,304 | ​ | $ | 72,227 | ​ | $ | 66,529
Solutions | ​ |  | 18,324 | ​ |  | 20,139 | ​ |  | 6,230 | ​ |  | 9,732
​ | ​ |  | 245,229 | ​ |  | 215,443 | ​ |  | 78,457 | ​ |  | 76,261
Gross Profit: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 35,472 | ​ | $ | 30,953 | ​ | $ | 11,671 | ​ | $ | 11,101
Solutions | ​ |  | 7,704 | ​ |  | 7,031 | ​ |  | 2,603 | ​ |  | 2,416
​ | ​ |  | 43,176 | ​ |  | 37,984 | ​ |  | 14,274 | ​ |  | 13,517
Direct Costs: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 15,225 | ​ | $ | 11,374 | ​ | $ | 5,249 | ​ | $ | 4,123
Solutions | ​ |  | 3,844 | ​ |  | 3,262 | ​ |  | 1,226 | ​ |  | 1,113
​ | ​ |  | 19,069 | ​ |  | 14,636 | ​ |  | 6,475 | ​ |  | 5,236
Segment Income Before Taxes: (1) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 20,247 | ​ | $ | 19,579 | ​ | $ | 6,422 | ​ | $ | 6,978
Solutions | ​ |  | 3,860 | ​ |  | 3,769 | ​ |  | 1,377 | ​ |  | 1,303
Segment Income Before Taxes | ​ |  | 24,107 | ​ |  | 23,348 | ​ |  | 7,799 | ​ |  | 8,281
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
General and administrative | ​ | $ | 12,861 | ​ | $ | 10,390 | ​ | $ | 3,647 | ​ | $ | 3,686
Acquisition related costs | ​ | ​ | 277 | ​ | ​ | 445 | ​ | ​ | 246 | ​ | ​ | 365
Depreciation and amortization expense | ​ | ​ | 1,934 | ​ | ​ | 1,357 | ​ | ​ | 617 | ​ | ​ | 555
Interest, net | ​ |  | 760 | ​ |  | 40 | ​ | ​ | 318 | ​ | ​ | 58
Foreign currency transaction loss | ​ | ​ | (100) | ​ | ​ | (799) | ​ |  | (140) | ​ |  | (500)
Income before taxes | ​ | $ | 9,695 | ​ | $ | 10,397 | ​ | $ | 3,467 | ​ | $ | 3,233
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​
(1) | Excludes general corporate expenses including interest and foreign currency transaction loss
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | ​ |
​ | ​ | As of | ​ | As of | ​
​ | ​ | September 30, | ​ | December 31, | ​
Selected Assets by Segment: | ​ | 2023 | ​ | 2022 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Distribution | ​ | $ | 141,224 | ​ | $ | 180,602 | ​
Solutions | ​ |  | 26,116 | ​ |  | 21,420 | ​
Segment Select Assets | ​ |  | 167,340 | ​ |  | 202,022 | ​
Corporate Assets | ​ |  | 65,025 | ​ |  | 29,834 | ​
Total Assets | ​ | $ | 232,365 | ​ | $ | 231,856 | ​
​ ​ Geographic areas and net sales mix related to operations for the three and nine months ended September 30, 2023 and 2022 were as follows. Revenue is allocated to a geographic area based on the location of the sale, which is generally the customer’s country of domicile. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Nine months ended |  | Three months ended
​ | ​ | September 30, 2023 | ​ | September 30, 2023
​ | ​ | Distribution |  | Solutions | ​ | Total | ​ | Distribution |  | Solutions | ​ | Total
Geography | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​
USA | ​ | $ | 180,278 | ​ | $ | 9,908 | ​ | $ | 190,186 | ​ | $ | 60,891 | ​ | $ | 3,605 | ​ | $ | 64,496
Europe and United Kingdom | ​ |  | 28,903 | ​ |  | 7,508 | ​ |  | 36,411 | ​ |  | 6,353 | ​ |  | 2,418 | ​ |  | 8,771
Canada | ​ |  | 17,724 | ​ |  | 908 | ​ |  | 18,632 | ​ |  | 4,983 | ​ |  | 207 | ​ |  | 5,190
Total net sales | ​ | $ | 226,905 | ​ | $ | 18,324 | ​ | $ | 245,229 | ​ | $ | 72,227 | ​ | $ | 6,230 | ​ | $ | 78,457
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Timing of Revenue Recognition | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​
Transferred at a point in time where the Company is principal (1) | ​ | $ | 200,027 | ​ | $ | 13,290 | ​ | $ | 213,317 | ​ | $ | 63,587 | ​ | $ | 4,422 | ​ | $ | 68,009
Transferred at a point in time where the Company is agent (2) | ​ |  | 26,878 | ​ |  | 5,034 | ​ |  | 31,912 | ​ |  | 8,640 | ​ |  | 1,808 | ​ |  | 10,448
Total net sales | ​ | $ | 226,905 | ​ | $ | 18,324 | ​ | $ | 245,229 | ​ | $ | 72,227 | ​ | $ | 6,230 | ​ | $ | 78,457
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Nine months ended |  | Three months ended
​ | ​ | September 30, 2022 | ​ | September 30, 2022
​ | ​ | Distribution |  | Solutions | ​ | Total | ​ | Distribution |  | Solutions | ​ | Total
Geography | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​
USA | ​ | $ | 159,335 | ​ | $ | 12,027 | ​ | $ | 171,362 | ​ | $ | 54,812 | ​ | $ | 7,224 | ​ | $ | 62,036
Europe and United Kingdom | ​ |  | 19,252 | ​ |  | 6,816 | ​ |  | 26,068 | ​ |  | 5,933 | ​ |  | 2,077 | ​ |  | 8,010
Canada | ​ |  | 16,717 | ​ |  | 1,296 | ​ |  | 18,013 | ​ |  | 5,784 | ​ |  | 431 | ​ |  | 6,215
Total net sales | ​ | $ | 195,304 | ​ | $ | 20,139 | ​ | $ | 215,443 | ​ | $ | 66,529 | ​ | $ | 9,732 | ​ | $ | 76,261
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Timing of Revenue Recognition | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​
Transferred at a point in time where the Company is principal (1) | ​ | $ | 173,606 | ​ | $ | 15,076 | ​ | $ | 188,682 | ​ | $ | 58,669 | ​ | $ | 7,982 | ​ | $ | 66,651
Transferred at a point in time where the Company is agent (2) | ​ |  | 21,698 | ​ |  | 5,063 | ​ |  | 26,761 | ​ |  | 7,860 | ​ |  | 1,750 | ​ |  | 9,610
Total net sales | ​ | $ | 195,304 | ​ | $ | 20,139 | ​ | $ | 215,443 | ​ | $ | 66,529 | ​ | $ | 9,732 | ​ | $ | 76,261
​
(1) | Includes net sales from third-party hardware and software products.
​
(2) | Includes net sales from third-party maintenance, software support and services.
​ Geographic identifiable assets related to operations as of September 30, 2023 and December 31, 2022 were as follows. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, | ​ | December 31, |
Identifiable Assets by Geographic Areas | ​ | 2023 |  | 2022 | ​
USA | ​ | $ | 147,805 | ​ | $ | 137,877 | ​
Canada | ​ | ​ | 24,169 | ​ | ​ | 27,597 | ​
Europe and United Kingdom | ​ | ​ | 60,391 | ​ | ​ | 66,382 | ​
Total | ​ | $ | 232,365 | ​ | $ | 231,856 | ​
​

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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