Potential $15 million Book Gain
EL SEGUNDO, Calif.--(BUSINESS WIRE)--Aug. 8, 2014-- PCM, Inc. (NASDAQ: PCMI), a leading technology solutions provider, announced that on August 6, 2014, one of its wholly-owned subsidiaries entered into an agreement with The Regents of the University of California to sell certain real property to them for a total cash sales price of $20.2 million. The real property is located in Santa Monica, California and includes two parcels. The first parcel is approximately 32,500 square feet of land together with a building of approximately 9,750 square feet. The building is currently being used by our subsidiary as a technology products retail store. The second parcel is adjacent to the first, and is approximately 5,000 square feet of land together with a building of approximately 3,297 square feet. The agreement currently contemplates a closing of the purchase and sale transaction in the fourth quarter of 2014 and will result in a book gain of over $15 million.
We intend to pursue a tax deferred exchange under Section 1031 of the Internal Revenue Code of 1986 through one or more purchases of real property to be used in connection with our company's business and operations. We are evaluating potential properties to identify for such an exchange, but would expect that any exchange we make will benefit us through direct ownership of strategic facilities, through reductions in our lease obligations or through other ancillary benefits.
In conjunction with the sale of the properties, we intend to shut down the operations of the retail store, and combined with the announced shutdowns of our three other retail stores, will help us to optimize the operations of our MacMall segment by allowing us to increase our focus on this segment's remaining web and outbound business-to-business components.
For more details about this transaction, please see our Form 8-K filed with the Securities and Exchange Commission earlier today.
About PCM, Inc.
PCM, Inc., through its wholly-owned subsidiaries, is a leading technology solutions provider to small and medium sized businesses, mid-market and enterprise customers, government and educational institutions and individual consumers. In the 12 months ended June 30, 2014, we generated approximately $1.4 billion in revenue and now have over 2,800 employees, 65% of which are in sales or service positions. For more information please visit investor.pcm.com or call (310) 354-5600.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements regarding our expectations, hopes or intentions regarding the future, including but not limited to, statements related to expected timing of the closing of the sale, the expected gain on sale of the properties and statements related to our ability to pursue and benefit from a 1031 exchange. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Factors that could cause our actual results to differ are discussed under the heading “Risk Factors” in Item 1A, Part II of our Form 10-Q for the period ended March 31, 2014, on file with the Securities and Exchange Commission, and in our other reports filed from time to time with the SEC. All forward-looking statements in this document are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statements.
Source: PCM, Inc.
Genesis Select Corporation
Budd Zuckerman, 303-415-0200