Reinforces Power of Business Model and
Strategy
CDW Corporation (Nasdaq:CDW):
(Dollars in millions, except per
share amounts)
Three Months Ended September 30,
2020
Three Months Ended September 30,
2019
% Chg.
Nine Months Ended September 30,
2020
Nine Months Ended September 30,
2019
% Chg.
Net Sales
$
4,756.4
$
4,907.7
(3.1
)
$
13,511.3
$
13,495.5
0.1
Average Daily Sales1
74.3
76.7
(3.1
)
70.4
70.7
(0.4
)
Gross Profit
825.5
816.5
1.1
2,329.2
2,262.4
3.0
Operating Income
317.8
320.6
(0.9
)
847.0
849.8
(0.3
)
Net Income
193.2
201.7
(4.2
)
550.2
551.2
(0.2
)
Non-GAAP Operating Income2
386.3
380.4
1.5
1,028.4
1,026.1
0.2
Net Income per Diluted Share
$
1.33
$
1.37
(2.6
)
$
3.80
$
3.72
2.3
Non-GAAP Net Income per Diluted Share2
$
1.83
$
1.70
8.0
$
4.77
$
4.54
5.2
1 There were 64 selling days for both the
three months ended September 30, 2020 and 2019. There were 192 and
191 selling days for the nine months ended September 30, 2020 and
2019, respectively.
2 Non-GAAP measures used in this release
that are not based on accounting principles generally accepted in
the United States of America are each defined and reconciled to the
most directly comparable US GAAP measure in the attached
schedules.
CDW Corporation (Nasdaq:CDW), a leading multi-brand technology
solutions provider to business, government, education and
healthcare customers in the United States, the United Kingdom and
Canada, today announced third quarter 2020 results. CDW also
announced the approval by its Board of Directors of a 5.3 percent
increase to its quarterly cash dividend. The quarterly cash
dividend of $0.40 will be paid on December 10, 2020 to all
stockholders of record as of the close of business on November 25,
2020. It is the seventh consecutive year that CDW has increased its
dividend since its 2013 IPO.
“Our third quarter results demonstrated the balance and strength
of our business model, and reinforced our confidence in, and
commitment to, our strategy,” said Christine A. Leahy, chief
executive officer, CDW. “I am extremely proud of the resilient
performance of our coworkers, who successfully served our diverse
customer end-markets with our broad and evolving portfolio of
technology products, solutions and services, amidst macro
challenges. Given our performance and confidence, we are increasing
the dividend, resuming share repurchases, and continuing to invest
in our growth strategy,” added Leahy.
“Our balance sheet, liquidity position and our cash flow
generation capability remain strong,” said Collin B. Kebo, chief
financial officer, CDW. “After investing in the business, our
capital allocation priorities remain the dividend, managing
leverage to our target ratio, making strategic acquisitions, and
share repurchases.”
“The duration and varying potential implications of COVID-19 on
our more than 250,000 customers remain uncertain and unknowable.
However, we will remain laser-focused on meeting our customers’
needs, while being the partner of choice for more than 1,000
leading and emerging technology brands as the technology market
continues to evolve and becomes increasingly essential and more
complex,” noted Leahy.
Third Quarter of 2020
Highlights:
Total Net sales in the third quarter of 2020 were $4,756
million, compared to $4,908 million in the third quarter of 2019, a
decrease of 3.1 percent. There were 64 selling days for both the
three months ended September 30, 2020 and 2019. Net sales on a
constant currency basis decreased 3.3 percent. Currency impact to
Net sales growth was driven by favorable translation of the British
pound to US dollar and unfavorable translation of the Canadian
dollar to US dollar. Third quarter Net sales performance
included:
- Total Corporate segment Net sales of $1,660 million, 13.2
percent lower than the third quarter of 2019.
- Total Small Business segment Net sales of $337 million, 12.7
percent lower than the third quarter of 2019.
- Total Public segment Net sales of $2,294 million, 9.2 percent
higher than the third quarter of 2019. Public results were driven
by an increase in Net sales to Education and Government customers
of 33.6 percent and 6.8 percent, respectively. Net sales to
Healthcare customers decreased 26.5 percent.
- Net sales for CDW's UK and Canadian operations, combined as
“Other” for financial reporting purposes, of $466 million, 8.2
percent lower than the third quarter of 2019.
Gross profit in the third quarter of 2020 was $826 million,
compared to $817 million for the third quarter of 2019,
representing an increase of 1.1 percent. Gross profit margin was
17.4 percent in the third quarter of 2020 versus 16.6 percent in
the third quarter of 2019. The increase in Gross profit margin was
primarily due to increased product margin and the mix of netted
down revenues that are booked net of cost of goods sold, primarily
software as a service.
Total selling and administrative expenses were $508 million in
the third quarter of 2020, compared to $496 million in the third
quarter of 2019, representing an increase of 2.4 percent. This
increase was primarily due to costs associated with a workforce
reduction program.
Operating income was $318 million in the third quarter of 2020,
compared to $321 million in the third quarter of 2019, representing
a decrease of 0.9 percent. Non-GAAP operating income was $386
million in the third quarter of 2020, compared to $380 million in
the third quarter of 2019, representing an increase of 1.5 percent.
The Non-GAAP operating income margin was 8.1 percent for the third
quarter of 2020 versus 7.8 percent for the third quarter of
2019.
Net interest expense was $40 million in the third quarter of
2020 compared to $42 million in the third quarter of 2019,
representing a decrease of 5.1 percent.
The effective tax rate was 22.7 percent in the third quarter of
2020 and 2019, which resulted in tax expense of $57 million and $59
million, respectively.
Net income was $193 million in the third quarter of 2020,
compared to $202 million in the third quarter of 2019, representing
a decrease of 4.2 percent. Non-GAAP net income was $265 million in
the third quarter of 2020, compared to $250 million in the third
quarter of 2019, representing an increase of 6.2 percent.
Weighted average diluted shares outstanding were 145 million for
the third quarter of 2020, compared to 147 million for the third
quarter of 2019. Net income per diluted share for the third quarter
of 2020 was $1.33, compared to $1.37 for the third quarter of 2019,
representing a decrease of 2.6 percent. Non-GAAP net income per
diluted share for the third quarter of 2020 was $1.83, compared to
$1.70 for the third quarter of 2019, representing an increase of
8.0 percent.
Year to Date 2020 Highlights:
Total Net sales for the first nine months ("year to date") of
2020 were $13,511 million, compared to $13,496 million for year to
date 2019, an increase of $15 million. There were 192 and 191
selling days for the nine months ended September 30, 2020 and 2019,
respectively. On an average daily sales basis, Net sales growth
decreased 0.4 percent and Net sales growth on a constant currency
average daily sales basis decreased 0.3 percent. Currency impact to
Net sales growth was driven by unfavorable translation of the
Canadian dollar and British pound to US dollar. The year to date
Net sales performance, on an average daily sales basis,
included:
- Total Corporate segment Net sales of $5,129 million, 7.8
percent lower than 2019.
- Total Small Business segment Net sales of $1,031 million, 8.4
percent lower than 2019.
- Total Public segment Net sales of $5,841 million, 10.2 percent
higher than 2019. Public results were led by Net sales to Education
and Government customers which increased 22.1 percent and 14.2
percent, respectively. Net sales to Healthcare customers decreased
11.4 percent.
- Net sales for CDW's UK and Canadian operations, combined as
“Other” for financial reporting purposes, were $1,511 million, 4.3
percent lower than 2019.
Gross profit for year to date 2020 was $2,329 million, compared
to $2,262 million for 2019, representing an increase of 3.0
percent. Gross profit margin was 17.2 percent for year to date 2020
versus 16.8 percent for 2019. Gross profit margin was positively
impacted by product margin and by the mix of netted down revenues
that are booked net of cost of goods sold, primarily software as a
service.
Total selling and administrative expenses were $1,482 million
for year to date 2020, compared to $1,413 million for 2019,
representing an increase of 4.9 percent. The increase was primarily
due to higher payroll expenses consistent with higher coworker
count and higher Gross profit and a higher provision for credit
losses driven by increased reserves reflecting the expected
economic impact of the COVID-19 pandemic.
Operating income was $847 million for year to date 2020,
compared to $850 million in 2019, representing a decrease of 0.3
percent. Non-GAAP operating income was $1,028 million for year to
date 2020, compared to $1,026 million for 2019, representing an
increase of 0.2 percent. The Non-GAAP operating income margin was
7.6 percent for both 2020 and 2019.
Net interest expense was $118 million for year to date 2020,
compared to $121 million for 2019, representing a decrease of 2.8
percent.
The effective tax rate for year to date 2020 was 22.2 percent,
which resulted in tax expense of $157 million, compared to a 22.8
percent effective tax rate and tax expense of $163 million for
2019. The decrease in the effective tax rate was primarily due to a
discrete tax benefit from a state tax refund claim, lower global
intangible low tax income and lower non-deductible expenses,
partially offset by a discrete deferred tax expense as a result of
an increase in the UK corporate tax rate and a discrete tax benefit
related to CDW Canada's acquisition of Scalar Decisions Inc. in
2019.
Net income was $550 million for year to date 2020, compared to
$551 million for 2019, representing a decrease of 0.2 percent.
Non-GAAP net income was $691 million for year to date 2020,
compared to $673 million for 2019, representing an increase of 2.6
percent.
Weighted average diluted shares outstanding were 145 million for
year to date 2020, compared to 148 million for 2019. Net income per
diluted share for year to date 2020 was $3.80 compared to $3.72 for
2019, representing an increase of 2.3 percent. Non-GAAP net income
per diluted share for year to date 2020 was $4.77, compared to
$4.54 for 2019, representing an increase of 5.2 percent.
Forward-Looking Statements
Statements in this release that are not statements of historical
fact are forward-looking statements within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995, including without limitation statements regarding the
future financial performance and liquidity position of CDW. These
forward-looking statements are subject to risks and uncertainties
that may cause actual results or events to differ materially from
those described in such statements. These risks and uncertainties
include, among others, the COVID-19 pandemic and actions taken in
response thereto and the associated impact on our business, results
of operations, cash flows, financial condition and liquidity;
global and regional economic and political conditions; decreases in
spending on technology products and services; CDW's relationships
with vendor partners and terms of their agreements; continued
innovations in hardware, software and services offerings by CDW's
vendor partners; substantial competition that could reduce CDW's
market share; potential interruptions of the flow of products from
suppliers; CDW's level of indebtedness and ability to generate
sufficient cash to service such indebtedness; restrictions imposed
by agreements relating to CDW's indebtedness on its operations and
liquidity; changes in, or the discontinuation of, CDW's share
repurchase program or dividend payments; the continuing
development, maintenance and operation of CDW's information
technology systems; potential breaches of data security and failure
to protect our information technology systems from cybersecurity
threats; potential failures to comply with Public segment contracts
or applicable laws and regulations; potential failures to provide
high-quality services to CDW's customers; potential losses of any
key personnel; potential adverse occurrences at one of CDW's
primary facilities or customer data centers; increases in the cost
of commercial delivery services or disruptions of those services;
CDW's exposure to accounts receivable and inventory risks; future
acquisitions or alliances; fluctuations in CDW's operating results;
fluctuations in foreign currency; current and future legal
proceedings and audits; changes in laws, including regulations or
interpretations thereof; and other risk factors or uncertainties
identified from time to time in CDW's filings with the SEC.
Although CDW believes that its plans, intentions and other
expectations reflected in or suggested by such forward-looking
statements are reasonable, it can give no assurance that it will
achieve those plans, intentions or expectations. Reference is made
to a more complete discussion of forward-looking statements and
applicable risks contained under the captions "Forward-Looking
Statements" and "Risk Factors" in CDW's Annual Report on Form 10-K
for the year ended December 31, 2019 and Quarterly Report on Form
10-Q for the quarter ended June 30, 2020 and subsequent filings
with the SEC. CDW undertakes no obligation to update or revise any
of its forward-looking statements, whether as a result of new
information, future events or otherwise, except as otherwise
required by law.
Non-GAAP Financial Information
Non-GAAP operating income excludes, among other things, charges
related to the amortization of acquisition-related intangible
assets, equity-based compensation and related payroll taxes, a
workforce reduction program, and acquisition and integration
expenses. Non-GAAP operating income margin is defined as Non-GAAP
operating income as a percentage of Net sales. Non-GAAP income
before income taxes and Non-GAAP net income exclude, among other
things, charges related to acquisition-related intangible asset
amortization, equity-based compensation, net loss on extinguishment
of long-term debt, a workforce reduction program, acquisition and
integration expenses, and the associated tax effects of each. Net
sales growth on a constant currency basis is defined as Net sales
growth excluding the impact of foreign currency translation on Net
sales compared to the prior period.
Non-GAAP operating income, Non-GAAP operating income margin,
Non-GAAP income before income taxes, Non-GAAP net income, Non-GAAP
net income per diluted share and Net sales growth on a constant
currency basis are considered non-GAAP financial measures.
Generally, a non-GAAP financial measure is a numerical measure of a
company’s performance or financial position that either excludes or
includes amounts that are not normally included or excluded in the
most directly comparable measure calculated and presented in
accordance with US GAAP.
CDW believes these measures provide analysts, investors and
management with helpful information regarding the underlying
operating performance of CDW's business, as they remove the impact
of items that management believes are not reflective of underlying
operating performance. CDW uses these measures to evaluate
period-over-period performance as management believes they provide
a more comparable measure of the underlying business.
The financial statement tables that accompany this press release
include a reconciliation of non-GAAP financial measures to the
applicable most comparable US GAAP financial measures. Non-GAAP
measures used by CDW may differ from similar measures used by other
companies, even when similar terms are used to identify such
measures.
About CDW
CDW Corporation (Nasdaq:CDW) is a leading multi-brand technology
solutions provider to business, government, education and
healthcare customers in the United States, the United Kingdom and
Canada. A Fortune 500 company and member of the S&P 500 Index,
CDW was founded in 1984 and employs approximately 10,000 coworkers.
For the trailing twelve months ended September 30, 2020, CDW
generated Net sales over $18 billion. For more information about
CDW, please visit www.CDW.com.
Webcast
CDW Corporation will hold a conference call today, November 2,
2020 at 7:30 a.m. CT/8:30 a.m. ET to discuss its third quarter
financial results. The conference call, which will be broadcast
live via the Internet, and a copy of this press release along with
supplemental slides used during the call, can be accessed on CDW’s
website at investor.cdw.com. For those unable to participate in the
live call, a replay of the webcast will be available at
investor.cdw.com approximately 90 minutes after the completion of
the call and will be accessible on the site for approximately one
year.
CDWPR-FI
CDW CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(dollars and shares in millions,
except per-share amounts)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
% Change(i)
2020
2019
% Change(i)
Net sales
$
4,756.4
$
4,907.7
(3.1
)%
$
13,511.3
$
13,495.5
0.1
%
Cost of sales
3,930.9
4,091.2
(3.9
)
11,182.1
11,233.1
(0.5
)
Gross profit
825.5
816.5
1.1
2,329.2
2,262.4
3.0
Selling and administrative expenses
507.7
495.9
2.4
1,482.2
1,412.6
4.9
Operating income
317.8
320.6
(0.9
)
847.0
849.8
(0.3
)
Interest expense, net
(40.2
)
(42.3
)
(5.1
)
(117.8
)
(121.1
)
(2.8
)
Other expense, net
(27.5
)
(17.4
)
58.1
(21.9
)
(15.0
)
46.4
Income before income taxes
250.1
260.9
(4.2
)
707.3
713.7
(0.9
)
Income tax expense
(56.9
)
(59.2
)
(3.9
)
(157.1
)
(162.5
)
(3.3
)
Net income
$
193.2
$
201.7
(4.2
)%
$
550.2
$
551.2
(0.2
)%
Net income per common share:
Basic
$
1.36
$
1.39
(3.1
)%
$
3.86
$
3.78
2.0
%
Diluted
$
1.33
$
1.37
(2.6
)%
$
3.80
$
3.72
2.3
%
Weighted-average common shares
outstanding:
Basic
142.7
144.5
142.6
145.7
Diluted
144.8
147.2
144.7
148.2
* Not meaningful
(i)
There were 64 selling days for
both the three months ended September 30, 2020 and 2019. There were
192 and 191 selling days for the nine months ended September 30,
2020 and 2019, respectively.
CDW CORPORATION AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURE
RECONCILIATIONS
CDW has included reconciliations of Non-GAAP operating income,
Non-GAAP operating income margin, Non-GAAP income before income
taxes, Non-GAAP net income, Non-GAAP net income per diluted share
and Net sales growth on a constant currency basis for the three and
nine months ended September 30, 2020 and 2019 below.
CDW CORPORATION AND
SUBSIDIARIES
NON-GAAP OPERATING INCOME AND
NON-GAAP OPERATING INCOME MARGIN
(dollars in millions)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
% of Net
sales
2019
% of Net
sales
2020
% of Net
sales
2019
% of Net
sales
Operating income, as reported
$
317.8
6.7
%
$
320.6
6.5
%
$
847.0
6.3
%
$
849.8
6.3
%
Amortization of
intangibles(i)
44.9
44.6
133.9
133.7
Equity-based compensation
11.5
12.8
25.9
37.7
Workforce reduction charges
8.5
—
8.5
—
Other adjustments(ii)
3.6
2.4
13.1
4.9
Non-GAAP operating income
$
386.3
8.1
%
$
380.4
7.8
%
$
1,028.4
7.6
%
$
1,026.1
7.6
%
(i)
Includes amortization expense for
acquisition-related intangible assets, primarily customer
relationships, customer contracts and trade names.
(ii)
Includes other expenses such as
payroll taxes on equity-based compensation, expenses related to the
relocation of the downtown Chicago office, and acquisition and
integration expenses.
CDW CORPORATION AND
SUBSIDIARIES
NON-GAAP INCOME BEFORE INCOME
TAXES, NON-GAAP NET INCOME
AND NON-GAAP NET INCOME PER
DILUTED SHARE
(dollars and shares in millions,
except per-share amounts)
(unaudited)
Three Months Ended September
30,
2020
2019
Income before Income
Taxes
Income Tax Expense(i)
Net Income
Effective Tax Rate
Income before Income
Taxes
Income Tax Expense(i)
Net Income
Effective Tax Rate
Net Income % Change
US GAAP, as reported
$
250.1
$
(56.9
)
$
193.2
22.7
%
$
260.9
$
(59.2
)
$
201.7
22.7
%
(4.2
)%
Amortization of intangibles(ii)
44.9
(8.6
)
36.3
44.6
(11.3
)
33.3
Equity-based compensation
11.5
(5.1
)
6.4
12.8
(11.8
)
1.0
Net loss on extinguishment of long-term
debt
27.3
(6.8
)
20.5
16.1
(4.0
)
12.1
Workforce reduction charges
8.5
(2.1
)
6.4
—
—
—
Other adjustments(iii)
3.6
(1.0
)
2.6
2.4
(0.6
)
1.8
Non-GAAP
$
345.9
$
(80.5
)
$
265.4
23.3
%
$
336.8
$
(86.9
)
$
249.9
25.8
%
6.2
%
US GAAP net income per diluted share
$
1.33
$
1.37
Non-GAAP net income per diluted share
$
1.83
$
1.70
Shares used in computing US GAAP and
Non-GAAP net income per diluted share
144.8
147.2
(i)
Income tax on non-GAAP adjustments
includes excess tax benefits associated with equity-based
compensation.
(ii)
Includes amortization expense for
acquisition-related intangible assets, primarily customer
relationships, customer contracts and trade names.
(iii)
Includes other expenses such as payroll
taxes on equity-based compensation, expenses related to the
relocation of the downtown Chicago office, and acquisition and
integration expenses.
CDW CORPORATION AND
SUBSIDIARIES
NON-GAAP INCOME BEFORE INCOME
TAXES, NON-GAAP NET INCOME
AND NON-GAAP NET INCOME PER
DILUTED SHARE
(dollars and shares in millions,
except per-share amounts)
(unaudited)
Nine Months Ended September
30,
2020
2019
Income before Income
Taxes
Income Tax Expense(i)
Net Income
Effective Tax Rate
Income before Income
Taxes
Income Tax Expense(i)
Net Income
Effective Tax Rate
Net Income % Change
US GAAP, as reported
$
707.3
$
(157.1
)
$
550.2
22.2
%
$
713.7
$
(162.5
)
$
551.2
22.8
%
(0.2
)%
Amortization of
intangibles(ii)
133.9
(30.8
)
103.1
133.7
(33.8
)
99.9
Equity-based compensation
25.9
(25.2
)
0.7
37.7
(28.7
)
9.0
Net loss on extinguishment of
long-term debt
27.3
(6.8
)
20.5
16.1
(4.0
)
12.1
Workforce reduction charges
8.5
(2.1
)
6.4
—
—
—
Other adjustments(iii)
13.1
(3.3
)
9.8
4.9
(4.1
)
0.8
Non-GAAP
$
916.0
$
(225.3
)
$
690.7
24.6
%
$
906.1
$
(233.1
)
$
673.0
25.7
%
2.6
%
US GAAP net income per diluted
share
$
3.80
$
3.72
Non-GAAP net income per diluted
share
$
4.77
$
4.54
Shares used in computing US GAAP
and Non-GAAP net income per diluted share
144.7
148.2
(i)
Income tax on non-GAAP
adjustments includes excess tax benefits associated with
equity-based compensation.
(ii)
Includes amortization expense for
acquisition-related intangible assets, primarily customer
relationships, customer contracts and trade names.
(iii)
Includes other expenses such as
payroll taxes on equity-based compensation, expenses related to the
relocation of the downtown Chicago office, acquisition and
integration expenses.
CDW CORPORATION AND
SUBSIDIARIES
NET SALES GROWTH ON A CONSTANT
CURRENCY BASIS
(dollars in millions)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
% Change(i)
2020
2019
% Change
Average Daily %
Change(i)
Net sales, as reported
$
4,756.4
$
4,907.7
(3.1
)%
$
13,511.3
$
13,495.5
0.1
%
(0.4
)%
Foreign currency translation(ii)
—
12.8
—
(14.9
)
Net sales, on a constant currency
basis
$
4,756.4
$
4,920.5
(3.3
)%
$
13,511.3
$
13,480.6
0.2
%
(0.3
)%
(i)
There were 64 selling days for both the
three months ended September 30, 2020 and 2019. There were 192 and
191 selling days for the nine months ended September 30, 2020 and
2019, respectively.
(ii)
Represents the effect of translating the
prior year results of CDW UK and CDW Canada at the average exchange
rates applicable in the current year.
CDW CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(dollars in millions)
September 30, 2020
December 31, 2019
September 30, 2019
Assets
(unaudited)
(unaudited)
Current assets:
Cash and cash equivalents
$
1,249.5
$
154.0
$
166.9
Accounts receivable, net of allowance for
doubtful accounts of $32.7, $7.9, and $9.1 respectively
3,267.7
3,002.2
2,899.5
Merchandise inventory
648.1
611.2
603.6
Miscellaneous receivables
404.1
395.1
432.2
Prepaid expenses and other
190.2
171.6
193.1
Total current assets
5,759.6
4,334.1
4,295.3
Operating lease right-of-use assets
133.5
131.8
84.2
Property and equipment, net
268.0
363.1
171.1
Goodwill
2,573.4
2,553.0
2,515.9
Other intangible assets, net
461.8
594.1
616.1
Other assets
27.4
23.3
20.5
Total assets
$
9,223.7
$
7,999.4
$
7,703.1
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable - trade
$
1,922.0
$
1,835.0
$
1,900.0
Accounts payable - inventory financing
661.2
429.9
411.7
Current maturities of long-term debt
72.3
34.1
25.4
Contract liabilities
246.8
252.2
212.1
Accrued expenses and other current
liabilities
934.3
940.2
691.8
Total current liabilities
3,836.6
3,491.4
3,241.0
Long-term liabilities:
Debt
3,858.6
3,283.2
3,259.0
Deferred income taxes
63.1
62.4
111.3
Operating lease liabilities
151.5
131.1
81.7
Other liabilities
75.4
71.0
75.0
Total long-term liabilities
4,148.6
3,547.7
3,527.0
Total stockholders’ equity
1,238.5
960.3
935.1
Total liabilities and stockholders’
equity
$
9,223.7
$
7,999.4
$
7,703.1
CDW CORPORATION AND
SUBSIDIARIES
NET SALES DETAIL
(dollars in millions)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
% Change(i)
2020
2019
% Change
Average Daily %
Change(i)
Corporate
$
1,660.0
$
1,913.5
(13.2
)%
$
5,128.5
$
5,533.6
(7.3
)%
(7.8
)%
Small Business
337.0
386.2
(12.7
)
1,030.6
1,119.2
(7.9
)
(8.4
)
Public
Government
847.7
793.4
6.8
2,135.9
1,860.2
14.8
14.2
Education
1,078.2
807.0
33.6
2,431.2
1,981.0
22.7
22.1
Healthcare
367.9
500.5
(26.5
)
1,274.1
1,430.5
(10.9
)
(11.4
)
Total Public
2,293.8
2,100.9
9.2
5,841.2
5,271.7
10.8
10.2
Other
465.6
507.1
(8.2
)
1,511.0
1,571.0
(3.8
)
(4.3
)
Total Net sales
$
4,756.4
$
4,907.7
(3.1
)%
$
13,511.3
$
13,495.5
0.1
%
(0.4
)%
(i)
There were 64 selling days for both the
three months ended September 30, 2020 and 2019. There were 192 and
191 selling days for the nine months ended September 30, 2020 and
2019, respectively.
CDW CORPORATION AND
SUBSIDIARIES
DEBT AND WORKING CAPITAL
INFORMATION
(dollars in millions)
September 30, 2020
December 31, 2019
September 30, 2019
(unaudited)
(unaudited)
Debt and Revolver Availability
Cash and cash equivalents
$
1,249.5
$
154.0
$
166.9
Total debt
3,930.9
3,317.3
3,284.4
Revolver availability
920.6
1,106.2
1,129.5
Cash plus revolver availability
2,170.1
1,260.2
1,296.4
Working Capital(i)
Days of sales outstanding
61
57
56
Days of supply in inventory
13
14
13
Days of purchases outstanding
(58
)
(53
)
(52
)
Cash conversion cycle
16
18
17
(i)
Based on a rolling three-month
average.
CDW CORPORATION AND
SUBSIDIARIES
CASH FLOW INFORMATION
(dollars in millions)
(unaudited)
Nine Months Ended September
30,
2020
2019
Cash flows provided by operating
activities
$
738.4
$
682.3
Capital expenditures(i)
(133.6
)
(75.0
)
Acquisition of business, net of cash
acquired
(38.5
)
(75.0
)
Cash flows used in investing
activities
(172.1
)
(150.0
)
Net change in accounts payable - inventory
financing
232.5
(17.4
)
Other cash flows provided by (used in)
financing activities
299.2
(551.1
)
Cash flows provided by (used in) financing
activities
531.7
(568.5
)
Effect of exchange rate changes on cash
and cash equivalents
(2.5
)
(2.7
)
Net increase (decrease) in cash and cash
equivalents
1,095.5
(38.9
)
Cash and cash equivalents - beginning of
period
154.0
205.8
Cash and cash equivalents - end of
period
$
1,249.5
$
166.9
Supplementary disclosure of cash flow
information:
Interest paid
$
(90.5
)
$
(124.8
)
Taxes paid, net
$
(196.4
)
$
(203.0
)
(i)
Includes expenditures for revenue
generating assets.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201102005304/en/
Investor Inquiries Brittany A.
Smith Vice President, Investor Relations and Financial Planning and
Analysis (847) 968-0238 investorrelations@cdw.com
Media Inquiries Sara Granack Vice
President, Corporate Communications (847) 419-7411
mediarelations@cdw.com
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