Reinforces Power of Business Model and
Strategy
CDW Corporation (Nasdaq:CDW):
(Dollars in millions, except per share amounts)
Three Months Ended December 31,
2020
Three Months Ended December 31,
2019
% Chg.
Year Ended December 31, 2020
Year Ended December 31, 2019
% Chg.
Net Sales
$
4,956.2
$
4,536.9
9.2
$
18,467.5
$
18,032.4
2.4
Average Daily Sales1
79.9
72.0
11.0
72.7
71.0
2.4
Gross Profit
880.9
777.5
13.3
3,210.1
3,039.9
5.6
Operating Income
332.2
283.8
17.1
1,179.2
1,133.6
4.0
Net Income
238.3
185.6
28.4
788.5
736.8
7.0
Non-GAAP Operating Income2
376.2
342.3
9.9
1,404.6
1,368.4
2.6
Net Income per Diluted Share
$
1.65
$
1.27
29.6
$
5.45
$
4.99
9.2
Non-GAAP Net Income per Diluted Share2
$
1.82
$
1.57
16.1
$
6.59
$
6.10
8.0
1 There were 62 and 63 selling days for
the three months ended December 31, 2020 and 2019, respectively.
There were 254 selling days for both the years ended December 31,
2020 and 2019.
2 Non-GAAP measures used in this release
that are not based on accounting principles generally accepted in
the United States of America ("US GAAP") are each defined and
reconciled to the most directly comparable US GAAP measures in the
attached schedules.
CDW Corporation (Nasdaq:CDW), a leading multi-brand provider of
information technology solutions to business, government, education
and healthcare customers in the United States, the United Kingdom
and Canada, today announced fourth quarter and year end 2020
results. The company also announced the approval by its Board of
Directors of a $1.25 billion increase to its share repurchase
authorization and a quarterly cash dividend to be paid in March
2021.
“Our strong fourth quarter and full year performance amidst
global health and macroeconomic challenges due to the COVID-19
pandemic demonstrated the power of our business model with balance
across customer end markets and our product and solutions
portfolio, and reinforced confidence in our strategy,” said
Christine A. Leahy, president and chief executive officer, CDW.
“2020 brought rapid and remarkable change in how we work and live,
and I am extremely proud of the commitment, agility and resolve of
our coworkers, who successfully helped our customers address their
mission-critical IT and operational needs across the full IT
solutions stack and lifecycle.”
“For 2020, we delivered an 8 percent increase in non-GAAP net
income per diluted share with operating results amplified by a
lower effective tax rate and share repurchases," said Collin B.
Kebo, chief financial officer of CDW. "Our performance drove strong
free cash flow, enabling us to return more than $560 million to our
shareholders in 2020 through share repurchases and dividends and
end the year with approximately $2.5 billion of liquidity.”
“For 2021, we expect to continue to outpace US IT market growth
by 200 to 300 basis points on a constant currency basis.
Macroeconomic uncertainty continues in the near term, so we will
focus on what we can control. We will continue to execute our
strategy, invest in the business, and be laser-focused on meeting
the needs of our more than 250,000 customers in the United States,
the United Kingdom and Canada and remaining the partner of choice
for more than 1,000 leading and emerging technology brands as the
technology market continues to evolve," concluded Leahy.
A quarterly cash dividend of $0.40 per share, which is 5.3
percent higher than the prior year period, will be paid on March
10, 2021 to all stockholders of record as of the close of business
on February 25, 2021.
Fourth Quarter of 2020
Highlights:
Total Net sales in the fourth quarter of 2020 were $4,956
million, compared to $4,537 million in the fourth quarter of 2019,
an increase of 9.2 percent. There were 62 and 63 selling days for
the three months ended December 31, 2020 and 2019, respectively. On
an average daily sales basis, Net sales growth increased 11.0
percent and Net sales on a constant currency basis average daily
sales basis increased 10.7 percent versus the fourth quarter of
2019. Currency impact to Net sales growth was driven by favorable
translation of the British pound and Canadian dollar to US dollar.
Fourth quarter Net sales performance, on an average daily sales
basis, included:
- Total Corporate segment Net sales of $1,718 million, 11.2
percent lower than the fourth quarter of 2019.
- Total Small Business segment Net sales of $367 million, 4.8
percent lower than the fourth quarter of 2019.
- Total Public segment Net sales of $2,297 million, 46.5 percent
higher than the fourth quarter of 2019. Public results were driven
by increased Net Sales to Education and Government customers of
142.3 percent and 29.9 percent, respectively. Net sales to
Healthcare customers decreased 13.8 percent.
- Net sales for CDW's UK and Canadian operations, combined as
"Other" for financial reporting purposes, of $576 million, 0.4
percent lower than the fourth quarter of 2019.
Gross profit was $881 million in the fourth quarter of 2020,
compared to $778 million in the fourth quarter of 2019,
representing an increase of 13.3 percent. Gross profit margin was
17.8 percent in the fourth quarter of 2020 versus 17.1 percent in
the fourth quarter of 2019. This increase in Gross profit margin
was primarily due to higher 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, including advertising
expense, were $549 million in the fourth quarter of 2020, compared
to $494 million in the fourth quarter of 2019, representing an
increase of 11.1 percent. This increase was primarily driven by
higher sales payroll expenses consistent with higher gross profit
and coworker compensation investments, partially offset by cost
saving measures.
Operating income was $332 million in the fourth quarter of 2020,
compared to $284 million in the fourth quarter of 2019,
representing an increase of 17.1 percent. Non-GAAP operating income
was $376 million in the fourth quarter of 2020, compared to $342
million in the fourth quarter of 2019, representing an increase of
9.9 percent. The Non-GAAP operating income margin was 7.6 percent
in the fourth quarter of 2020 versus 7.5 percent in the fourth
quarter of 2019.
Net interest expense was $37 million in the fourth quarter of
2020, compared to $38 million in the fourth quarter of 2019,
representing a decrease of 2.9 percent.
The effective tax rate was 19.2 percent in the fourth quarter of
2020, compared to 21.4 percent in the fourth quarter of 2019, which
resulted in tax expense of $57 million and $50 million,
respectively. The decrease in the effective tax rate is primarily
due to tax benefits associated with new regulations in 2020 and
higher excess tax benefits on equity-based compensation.
Net income was $238 million in the fourth quarter of 2020,
compared to $186 million in the fourth quarter of 2019,
representing an increase of 28.4 percent. Non-GAAP net income was
$264 million in the fourth quarter of 2020, compared to $229
million in the fourth quarter of 2019, representing an increase of
15.0 percent.
Weighted average diluted shares outstanding were 145 million for
the fourth quarter of 2020, compared to 146 million for the fourth
quarter of 2019. Net income per diluted share for the fourth
quarter of 2020 was $1.65, compared to $1.27 for the fourth quarter
of 2019, representing an increase of 29.6 percent. Non-GAAP net
income per diluted share for the fourth quarter of 2020 was $1.82,
compared to $1.57 for the fourth quarter of 2019, representing an
increase of 16.1 percent.
Full Year 2020 Highlights:
Total Net sales in 2020 were $18,468 million, compared to
$18,032 million in 2019, an increase of 2.4 percent. There were 254
selling days for both the years ended December 31, 2020 and 2019.
Net sales growth on a constant currency basis was also 2.4 percent.
Full year Net sales performance included:
- Total Corporate segment Net sales of $6,846 million, 8.7
percent lower than 2019.
- Total Small Business segment Net sales of $1,397 million, 7.5
percent lower than 2019.
- Total Public segment Net sales of $8,138 million, 18.5 percent
higher than 2019. Public results were driven by an increase in Net
sales to Education and Government customers of 43.4 percent and
18.2 percent, respectively. Net sales to Healthcare customers
decreased 12.0 percent.
- Net sales for CDW's UK and Canadian operations, combined as
"Other" for financial reporting purposes, of $2,087 million, 3.3
percent lower than 2019.
Gross profit was $3,210 million in 2020, compared to $3,040
million for 2019, representing an increase of 5.6 percent. Gross
profit margin was 17.4 percent in 2020 versus 16.9 percent in 2019.
This increase in Gross profit margin was primarily due to higher
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 $2,031 million in
2020, compared to $1,906 million in 2019, representing an increase
of 6.5 percent. This increase was primarily due to higher payroll
expenses consistent with higher Gross profit, higher average
coworker count and coworker compensation investments, and a higher
provision for credit losses driven by increased reserves reflecting
the expected economic impact of the COVID-19 pandemic, partially
offset by cost saving measures.
Operating income was $1,179 million in 2020, compared to $1,134
million in 2019, representing an increase of 4.0 percent. Non-GAAP
operating income was $1,405 million in 2020, compared to $1,368
million for 2019, representing an increase of 2.6 percent. The
Non-GAAP operating income margin was 7.6 percent for both 2020 and
2019.
Net interest expense was $155 million in 2020, compared to $159
million in 2019, representing a decrease of 2.8 percent.
The effective tax rate was 21.3 percent in 2020, compared to
22.4 percent in 2019, which resulted in tax expense of $214 million
and $213 million, respectively. The decrease in the effective tax
rate is primarily due to tax benefits associated with new
regulations in 2020 and higher excess tax benefits on equity-based
compensation.
Net income was $789 million in 2020, compared to $737 million in
2019, representing an increase of 7.0 percent. Non-GAAP net income
was $954 million in 2020, compared to $902 million in 2019,
representing an increase of 5.8 percent.
Weighted average diluted shares outstanding were 145 million in
2020, compared to 148 million in 2019. Net income per diluted share
in 2020 was $5.45, compared to $4.99 in 2019, representing an
increase of 9.2 percent. Non-GAAP net income per diluted share in
2020 was $6.59, compared to $6.10 in 2019, representing an increase
of 8.0 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 September 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.
Our annual targets are provided on a non-GAAP basis because
certain reconciling items are dependent on future events that
either cannot be controlled, such as currency impacts or interest
rates, or reliably predicted because they are not part of CDW's
routine activities, such as refinancing activities or acquisition
and integration expenses.
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 provider
of information technology solutions 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 year ended December 31, 2020, the company
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, February 10,
2021 at 7:30 a.m. CT/8:30 a.m. ET to discuss its fourth quarter and
full year 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)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
% Change(i)
2020
2019
% Change(i)
(unaudited)
(unaudited)
(unaudited)
Net sales
$
4,956.2
$
4,536.9
9.2
%
$
18,467.5
$
18,032.4
2.4
%
Cost of sales
4,075.3
3,759.4
8.4
15,257.4
14,992.5
1.8
Gross profit
880.9
777.5
13.3
3,210.1
3,039.9
5.6
Selling and administrative expenses
548.7
493.7
11.1
2,030.9
1,906.3
6.5
Operating income
332.2
283.8
17.1
1,179.2
1,133.6
4.0
Interest expense, net
(37.1
)
(38.3
)
(2.9
)
(154.9
)
(159.4
)
(2.8
)
Other expense, net
(0.1
)
(9.5
)
nm*
(22.0
)
(24.5
)
(9.9
)
Income before income taxes
295.0
236.0
25.0
1,002.3
949.7
5.5
Income tax expense
(56.7
)
(50.4
)
12.3
(213.8
)
(212.9
)
0.4
Net income
$
238.3
$
185.6
28.4
%
$
788.5
$
736.8
7.0
%
Net income per common share:
Basic
$
1.67
$
1.29
29.1
%
$
5.53
$
5.08
8.9
%
Diluted
$
1.65
$
1.27
29.6
%
$
5.45
$
4.99
9.2
%
Weighted-average common shares
outstanding:
Basic
142.7
143.5
142.6
145.1
Diluted
145.1
146.4
144.8
147.8
* Not meaningful
(i)
There were 62 and 63 selling days for the
three months ended December 31, 2020 and 2019, respectively. There
were 254 selling days for both the years ended December 31, 2020
and 2019.
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
months and years ended December 31, 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 December
31,
Year Ended December
31,
2020
% of Net sales
2019
% of Net sales
2020
% of Net sales
2019
% of Net sales
Operating income, as reported
$
332.2
6.7
%
$
283.8
6.3
%
$
1,179.2
6.4
%
$
1,133.6
6.3
%
Amortization of intangibles(i)
24.2
44.8
158.1
178.5
Equity-based compensation
16.6
10.8
42.5
48.5
Workforce reduction charges
—
—
8.5
—
Other adjustments(ii)
3.2
2.9
16.3
7.8
Non-GAAP operating income
$
376.2
7.6
%
$
342.3
7.5
%
$
1,404.6
7.6
%
$
1,368.4
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 December
31,
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
$
295.0
$
(56.7
)
$
238.3
19.2
%
$
236.0
$
(50.4
)
$
185.6
21.4
%
28.4
%
Amortization of intangibles(ii)
24.2
(6.0
)
18.2
44.8
(10.8
)
34.0
Equity-based compensation
16.6
(11.8
)
4.8
10.8
(7.9
)
2.9
Net loss on extinguishment of long-term
debt
—
—
—
6.0
(1.5
)
4.5
Other adjustments(iii)
3.2
(0.8
)
2.4
2.9
(0.8
)
2.1
Non-GAAP
$
339.0
$
(75.3
)
$
263.7
22.2
%
$
300.5
$
(71.4
)
$
229.1
23.7
%
15.0
%
US GAAP net income per diluted share
$
1.65
$
1.27
Non-GAAP net income per diluted share
$
1.82
$
1.57
Shares used in computing US GAAP and
Non-GAAP net income per diluted share
145.1
146.4
(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)
Year Ended December
31,
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
$
1,002.3
$
(213.8
)
$
788.5
21.3
%
$
949.7
$
(212.9
)
$
736.8
22.4
%
7.0
%
Amortization of intangibles(ii)
158.1
(36.8
)
121.3
178.5
(44.6
)
133.9
Equity-based compensation
42.5
(37.0
)
5.5
48.5
(36.6
)
11.9
Net loss on extinguishments of long-term
debt
27.3
(6.8
)
20.5
22.1
(5.5
)
16.6
Workforce reduction charges
8.5
(2.1
)
6.4
—
—
—
Other adjustments(iii)
16.3
(4.1
)
12.2
7.8
(4.9
)
2.9
Non-GAAP
$
1,255.0
$
(300.6
)
$
954.4
24.0
%
$
1,206.6
$
(304.5
)
$
902.1
25.2
%
5.8
%
US GAAP net income per diluted share
$
5.45
$
4.99
Non-GAAP net income per diluted share
$
6.59
$
6.10
Shares used in computing US GAAP and
Non-GAAP net income per diluted share
144.8
147.8
(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
NET SALES GROWTH ON A CONSTANT
CURRENCY BASIS
(dollars in millions)
(unaudited)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
% Change
Average Daily %
Change(i)
2020
2019
% Change(i)
Net sales, as reported
$
4,956.2
$
4,536.9
9.2
%
11.0
%
$
18,467.5
$
18,032.4
2.4
%
Foreign currency translation(ii)
—
12.7
—
(2.5
)
Net sales, on a constant currency
basis
$
4,956.2
$
4,549.6
8.9
%
10.7
%
$
18,467.5
$
18,029.9
2.4
%
(i)
There were 62 and 63 selling days for the
three months ended December 31, 2020 and 2019, respectively. There
were 254 selling days for both the years ended December 31, 2020
and 2019.
(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)
December 31, 2020
December 31, 2019
Assets
(unaudited)
Current assets:
Cash and cash equivalents
$
1,410.2
$
154.0
Accounts receivable, net of allowance for
credit losses of $29.6 and $7.9, respectively
3,212.6
3,002.2
Merchandise inventory
760.0
611.2
Miscellaneous receivables
379.5
395.1
Prepaid expenses and other
191.2
171.6
Total current assets
5,953.5
4,334.1
Operating lease right-of-use assets
130.8
131.8
Property and equipment, net
175.5
363.1
Goodwill
2,595.9
2,553.0
Other intangible assets, net
445.1
594.1
Other assets
43.9
23.3
Total assets
$
9,344.7
$
7,999.4
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable - trade
$
2,088.4
$
1,835.0
Accounts payable - inventory financing
524.6
429.9
Current maturities of long-term debt
70.9
34.1
Contract liabilities
243.7
252.2
Accrued expenses and other liabilities
970.7
940.2
Total current liabilities
3,898.3
3,491.4
Long-term liabilities:
Debt
3,856.3
3,283.2
Deferred income taxes
55.3
62.4
Operating lease liabilities
169.0
131.1
Other liabilities
68.7
71.0
Total long-term liabilities
4,149.3
3,547.7
Total stockholders’ equity
1,297.1
960.3
Total liabilities and stockholders’
equity
$
9,344.7
$
7,999.4
CDW CORPORATION AND
SUBSIDIARIES
NET SALES DETAIL
(dollars in millions)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
% Change
Average Daily %
Change(i)
2020
2019
% Change(i)
(unaudited)
(unaudited)
(unaudited)
Corporate
$
1,717.5
$
1,965.4
(12.6
)%
(11.2
)%
$
6,846.0
$
7,499.0
(8.7
)%
Small Business
366.5
391.1
(6.3
)
(4.8
)
1,397.1
1,510.3
(7.5
)
Public
Government
842.6
659.1
27.8
29.9
2,978.5
2,519.3
18.2
Education
1,026.9
430.6
138.5
142.3
3,458.1
2,411.6
43.4
Healthcare
427.0
503.4
(15.2
)
(13.8
)
1,701.1
1,933.9
(12.0
)
Total Public
2,296.5
1,593.1
44.2
46.5
8,137.7
6,864.8
18.5
Other
575.7
587.3
(2.0
)
(0.4
)
2,086.7
2,158.3
(3.3
)
Total Net sales
$
4,956.2
$
4,536.9
9.2
%
11.0
%
$
18,467.5
$
18,032.4
2.4
%
(i)
There were 62 and 63 selling days for the
three months ended December 31, 2020 and 2019, respectively. There
were 254 selling days for both the years ended December 31, 2020
and 2019.
CDW CORPORATION AND
SUBSIDIARIES
DEBT AND WORKING CAPITAL
INFORMATION
(dollars in millions)
(unaudited)
December 31, 2020
December 31, 2019
Debt and Revolver Availability
Cash and cash equivalents
$
1,410.2
$
154.0
Total debt
3,927.2
3,317.3
Revolver availability
1,059.3
1,106.2
Cash plus revolver availability
2,469.5
1,260.2
Working Capital(i)
Days of sales outstanding
57
57
Days of supply in inventory
14
14
Days of purchases outstanding
(54
)
(53
)
Cash conversion cycle
17
18
(i)
Based on a rolling three-month
average.
CDW CORPORATION AND
SUBSIDIARIES
CASH FLOW INFORMATION
(dollars in millions)
Year Ended December
31,
2020
2019
(unaudited)
Cash flows provided by operating
activities
$
1,314.3
$
1,027.2
Capital expenditures(i)
(158.0
)
(236.3
)
Acquisition of businesses, net of cash
acquired
(43.0
)
(95.1
)
Cash flows used in investing
activities
(201.0
)
(331.4
)
Net change in accounts payable - inventory
financing
93.0
(1.3
)
Financing payments for revenue generating
assets
(18.1
)
—
Other cash flows provided by (used in)
financing activities
63.9
(748.5
)
Cash flows provided by (used in) financing
activities
138.8
(749.8
)
Effect of exchange rate changes on cash
and cash equivalents
4.1
2.2
Net increase (decrease) in cash and cash
equivalents
1,256.2
(51.8
)
Cash and cash equivalents - beginning of
period
154.0
205.8
Cash and cash equivalents - end of
period
$
1,410.2
$
154.0
Supplementary disclosure of cash flow
information:
Interest paid
$
(139.4
)
$
(154.2
)
Income taxes paid, net
$
(245.6
)
$
(272.2
)
(i)
Includes expenditures for revenue
generating assets.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210210005100/en/
Investor Inquiries Brittany A.
Smith Vice President, Investor Relations and Financial Planning and
Analysis (847) 968-0238
Media Inquiries Sara Granack Vice
President, Corporate Communications (847) 419-7411
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