Strong Margins and Execution Reinforce
Durability of Strategy
CDW Corporation (Nasdaq: CDW):
(Dollars in millions, except per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
% Chg.
2023
2022
% Chg.
Net Sales
$
5,626.1
$
6,145.8
(8.5
)
$
10,729.2
$
12,094.9
(11.3
)
Average Daily Sales1
87.9
96.0
(8.5
)
83.8
95.2
(12.0
)
Gross Profit
1,181.5
1,168.2
1.1
2,270.9
2,272.3
(0.1
)
Operating Income
412.2
435.3
(5.3
)
767.5
822.2
(6.7
)
Net Income
262.6
279.3
(6.0
)
492.7
529.5
(6.9
)
Non-GAAP Operating Income2
529.8
516.3
2.6
964.1
978.4
(1.5
)
Net Income per Diluted Share
$
1.92
$
2.04
(5.5
)
$
3.60
$
3.87
(6.9
)
Non-GAAP Net Income per Diluted Share2
$
2.56
$
2.49
3.2
$
4.59
$
4.69
(2.0
)
1 There were 64 selling days for both the
three months ended June 30, 2023 and 2022. There were 128 and 127
selling days for the six months ended June 30, 2023 and 2022,
respectively.
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 measure 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 second quarter 2023 results. CDW also
announced the approval by its Board of Directors of a quarterly
cash dividend of $0.59 per share to be paid on September 12, 2023
to all stockholders of record as of the close of business on August
25, 2023.
“Strong execution by the team, underpinned by the power of our
resilient business model, balanced portfolio of customer
end-markets, and broad solutions set delivered profit growth in a
challenging market," said Christine A. Leahy, chair and chief
executive officer, CDW. “Technology remains the vital foundation of
our customers' abilities to achieve their mission critical
outcomes. Our customer focus and value proposition as a trusted
advisor are stronger than ever.”
“Our financial discipline delivered consistent profits and
returns despite commercial customers' spending caution. We
continued to convert earnings to cash at a productive rate and
optimize our use of cash flow through dividends, share repurchases
and strategic M&A, while maintaining an appropriate capital
structure," said Albert J. Miralles, chief financial officer,
CDW.
“Through this ongoing period of economic uncertainty, customers
continue to turn to CDW to address their mission-critical IT and
operational needs across the full IT solutions stack and lifecycle.
We remain well-positioned to attain our target of exceeding US IT
market growth by 200 to 300 basis points on a constant currency
basis. To achieve this, we will continue our laser focus on meeting
the needs of our more than 250,000 customers around the globe and
remaining the partner of choice for more than 1,000 leading and
emerging technology brands as the IT market continues to evolve,"
concluded Leahy.
Second Quarter of 2023
Highlights:
Net sales in the second quarter of 2023 were $5,626 million,
compared to $6,146 million in the second quarter of 2022, a
decrease of 8.5 percent. There were 64 selling days for both the
three months ended June 30, 2023 and 2022. The decline in Net sales
was driven by the Corporate and Small Business segments and our UK
and Canadian operations, partially offset by an increase in the
Public segment. The increase in economic uncertainty has led
customers to focus their business priorities, resulting in a
reduction of their technology spend, most notably in the Corporate
and Small Business segments. Net sales on a constant currency basis
decreased 8.2 percent. Currency impact to Net sales was driven by
favorable translation of the British pound and Canadian dollar to
US dollar. Second quarter Net sales performance included:
- Corporate segment Net sales of $2,245 million, 15.6 percent
lower than 2022.
- Small Business segment Net sales of $396 million, 20.8 percent
lower than 2022.
- Public segment Net sales of $2,295 million, 2.3 percent higher
than 2022. Public results were primarily driven by an increase in
Net sales to Government customers of 11.8 percent, partially offset
by a decrease in Net sales to Education customers.
- Net sales for CDW's UK and Canadian operations, combined as
"Other" for financial reporting purposes, were $690 million, 7.0
percent lower than 2022.
Gross profit in the second quarter of 2023 was $1,182 million,
compared to $1,168 million for the second quarter of 2022,
representing an increase of 1.1 percent. Gross profit margin was
21.0 percent in the second quarter of 2023 versus 19.0 percent in
the second quarter of 2022. The increase in Gross profit margin was
primarily driven by higher product margin due to lower mix in
notebooks and increased rate across various categories and a higher
mix of netted down revenue, primarily within software as a
service.
Selling and administrative expenses were $769 million in the
second quarter of 2023, compared to $733 million in the second
quarter of 2022, representing an increase of 5.0 percent. The
increase was primarily due to costs related to the reduction of our
workforce and real estate portfolio (collectively "workplace
optimization"), increased payroll expenses associated with higher
year-over-year coworker count, partially offset by the impact of
reduced discretionary expenses.
Operating income was $412 million in the second quarter of 2023,
compared to $435 million in the second quarter of 2022,
representing a decrease of 5.3 percent. Non-GAAP operating income
was $530 million in the second quarter of 2023, compared to $516
million in the second quarter of 2022, representing an increase of
2.6 percent. The Operating income margin and Non-GAAP operating
income margin was 7.3 percent and 9.4 percent, respectively, for
the second quarter of 2023 versus 7.1 percent and 8.4 percent,
respectively, for the second quarter of 2022.
Interest expense, net was $58 million for second quarter of 2023
and 2022. Interest expense, net remained consistent due to higher
variable interest rate on the senior unsecured term loan, partially
offset by lower debt levels.
The effective tax rate was 25.7 percent in the second quarter of
2023, compared to 26.0 percent in the second quarter of 2022, which
resulted in tax expense of $91 million and $98 million,
respectively. The decrease in the effective tax rate was primarily
attributable to higher excess tax benefits on equity-based
compensation.
Net income was $263 million in the second quarter of 2023,
compared to $279 million in the second quarter of 2022,
representing a decrease of 6.0 percent. Non-GAAP net income was
$349 million in the second quarter of 2023, compared to $340
million in the second quarter of 2022, representing an increase of
2.8 percent.
Weighted average diluted shares outstanding were 136 million for
the second quarter of 2023, compared to 137 million for the second
quarter of 2022. Net income per diluted share for the second
quarter of 2023 was $1.92, compared to $2.04 for the second quarter
of 2022, representing a decrease of 5.5 percent. Non-GAAP net
income per diluted share for the second quarter of 2023 was $2.56,
compared to $2.49 for the second quarter of 2022, representing an
increase of 3.2 percent.
Forward-Looking Statements
This release contains "forward-looking statements" within the
meaning of the federal securities laws. All statements other than
statements of historical fact are forward-looking statements. These
statements relate to analyses and other information, which are
based on forecasts of future results or events and estimates of
amounts not yet determinable. These statements also relate to our
future prospects, developments and business strategies. We claim
the protection of The Private Securities Litigation Reform Act of
1995 for all forward-looking statements in this release.
These forward-looking statements are identified by the use of
terms and phrases such as "anticipate," "assume," "believe,"
"estimate," "expect," "goal," "intend," "plan," "potential,"
"predict," "project," "target" and similar terms and phrases or
future or conditional verbs such as "could," "may," "should,"
"will," and "would." However, these words are not the exclusive
means of identifying such statements. Although we believe that our
plans, intentions and other expectations reflected in or suggested
by such forward-looking statements are reasonable, we cannot assure
you that we will achieve those plans, intentions or expectations.
All forward-looking statements are subject to risks and
uncertainties that may cause actual results or events to differ
materially from those that we expected.
Important factors that could cause actual results or events to
differ materially from our expectations, or cautionary statements,
are disclosed under the sections entitled "Risk Factors" and
"Trends and Key Factors Affecting our Financial Performance"
included in our Annual Report on Form 10-K for the year ended
December 31, 2022 and from time to time in our subsequent Quarterly
Reports on Form 10-Q and our other US Securities and Exchange
Commission ("SEC") filings and public communications. These factors
include, among others, inflationary pressures; level of interest
rates; CDW's relationships with vendor partners and terms of their
agreements; the COVID-19 pandemic, including resurgences and the
emergence of new variants, and actions taken in response thereto
and the associated impact on our business, results of operations,
cash flows, financial condition and liquidity; continued
innovations in hardware, software and services by CDW's vendor
partners; substantial competition that could reduce CDW's market
share; 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 provide
high-quality services to CDW's customers; potential losses of any
key personnel, significant increases in labor costs or ineffective
workforce management; potential adverse occurrences at one of CDW's
primary facilities or third-party data centers, including as a
result of climate change; increases in the cost of commercial
delivery services or disruptions of those services; CDW's exposure
to accounts receivable and inventory risks; the potential failure
to achieve the anticipated benefits of the acquisition of Sirius in
the expected timeframe or at all; future acquisitions or alliances;
fluctuations in CDW's operating results; fluctuations in foreign
currency; global and regional economic and political conditions,
including impacts of the ongoing military conflict between Russia
and Ukraine and related sanctions against Russia; potential
interruptions of the flow of products from suppliers; decreases in
spending on technology products and services; potential failures to
comply with Public segment contracts or applicable laws and
regulations; current and future legal proceedings, investigations
and audits, including intellectual property infringement claims;
changes in laws, including regulations or interpretations thereof,
or the potential failure to meet stakeholder expectations on
environmental sustainability and corporate responsibility matters;
CDW's level of indebtedness; restrictions imposed by agreements
relating to CDW's indebtedness on its operations and liquidity;
failure to maintain the ratings assigned to CDW's debt securities
by rating agencies; changes in, or the discontinuation of, CDW's
share repurchase program or dividend payments; and other risk
factors or uncertainties identified from time to time in CDW's
filings with the SEC. All written and oral forward-looking
statements attributable to us, or persons acting on our behalf, are
expressly qualified in their entirety by those cautionary
statements as well as other cautionary statements that are made
from time to time in our other SEC filings and public
communications. You should evaluate all forward-looking statements
made in this release in the context of these risks and
uncertainties.
We caution you that the important factors referenced above may
not reflect all of the factors that could cause actual results or
events to differ from our expectations. In addition, we cannot
assure you that we will realize the results or developments we
expect or anticipate or, even if substantially realized, that they
will result in the consequences or affect us or our operations in
the way we expect. The forward-looking statements included in this
release are made only as of the date hereof. We undertake no
obligation to publicly update or revise any forward-looking
statement 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,
acquisition and integration expenses, transformation initiatives
and workplace optimization. Non-GAAP operating income margin is
defined as Non-GAAP operating income as a percentage of Net sales.
Non-GAAP net income excludes, among other things, charges related
to acquisition-related intangible asset amortization, equity-based
compensation, acquisition and integration expenses, transformation
initiatives, workplace optimization and the associated tax effects
of each. Net sales on a constant currency basis is defined as Net
sales excluding the impact of foreign currency translation on Net
sales compared to the prior period. Free cash flow is defined as
cash flows from operating activities less capital expenditures,
adjusted for the net change in accounts payable-inventory financing
and other financed purchases.
Non-GAAP operating income, Non-GAAP operating income margin,
Non-GAAP net income, Non-GAAP net income per diluted share, Net
sales on a constant currency basis and Free cash flow are
considered non-GAAP financial measures. Generally, a non-GAAP
financial measure is a numerical measure of a company’s performance
or financial condition 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. Non-GAAP measures used by management may differ from similar
measures used by other companies, even when similar terms are used
to identify such measures.
CDW believes Non-GAAP operating income, Non-GAAP operating
income margin, Non-GAAP net income, and Net sales on a constant
currency basis 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. We also present Free cash flow
as we believe this measure provides more information regarding our
liquidity and capital resources. Certain non-GAAP financial
measures are also used to determine certain components of
performance-based compensation.
CDW's 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.
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 14,900
coworkers. For the trailing twelve months ended June 30, 2023, CDW
generated Net sales of approximately $22 billion. For more
information about CDW, please visit www.CDW.com.
Webcast
CDW Corporation will hold a conference call today, August 2,
2023 at 7:30 a.m. CT/8:30 a.m. ET to discuss its second 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 June
30,
Six Months Ended June
30,
2023
2022
% Change(i)
2023
2022
% Change(i)
Net sales
$
5,626.1
$
6,145.8
(8.5
)%
$
10,729.2
$
12,094.9
(11.3
)%
Cost of sales
4,444.6
4,977.6
(10.7
)
8,458.3
9,822.6
(13.9
)
Gross profit
1,181.5
1,168.2
1.1
2,270.9
2,272.3
(0.1
)
Selling and administrative expenses
769.3
732.9
5.0
1,503.4
1,450.1
3.7
Operating income
412.2
435.3
(5.3
)
767.5
822.2
(6.7
)
Interest expense, net
(58.2
)
(57.7
)
0.9
(115.9
)
(113.7
)
1.9
Other expense, net
(0.6
)
(0.4
)
nm*
(1.9
)
(0.9
)
n.m.*
Income before income taxes
353.4
377.2
(6.3
)
649.7
707.6
(8.2
)
Income tax expense
(90.8
)
(97.9
)
(7.3
)
(157.0
)
(178.1
)
(11.8
)
Net income
$
262.6
$
279.3
(6.0
)%
$
492.7
$
529.5
(6.9
)%
Net income per common share:
Basic
$
1.95
$
2.07
(5.6
)%
$
3.65
$
3.92
(7.0
)%
Diluted
$
1.92
$
2.04
(5.5
)%
$
3.60
$
3.87
(6.9
)%
Weighted-average common shares
outstanding:
Basic
134.6
135.2
135.1
135.1
Diluted
136.1
136.8
136.7
136.8
* not meaningful
(i) There were 64 selling days for both
the three months ended June 30, 2023 and 2022. There were 128 and
127 selling days for the six months ended June 30, 2023 and 2022,
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 net income, Non-GAAP net income per diluted share and Net
sales on a constant currency basis for the three and six months
ended June 30, 2023 and 2023 below. In addition, a reconciliation
of Free cash flow is included for the six months ended June 30,
2023 and 2022.
CDW CORPORATION AND
SUBSIDIARIES
NON-GAAP OPERATING INCOME AND
NON-GAAP OPERATING INCOME MARGIN
(dollars in millions)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
% of Net sales
2022
% of Net sales
2023
% of Net sales
2022
% of Net sales
Operating income, as reported
$
412.2
7.3
%
$
435.3
7.1
%
$
767.5
7.2
%
$
822.2
6.8
%
Amortization of intangibles(i)
37.3
40.7
78.9
81.6
Equity-based compensation
24.8
23.5
45.6
44.6
Acquisition and integration expenses
8.7
14.9
17.6
26.6
Transformation initiatives(ii)
4.6
1.2
9.6
2.4
Workplace optimization(iii)
42.0
—
42.9
—
Other adjustments
0.2
0.7
2.0
1.0
Non-GAAP operating income
$
529.8
9.4
%
$
516.3
8.4
%
$
964.1
9.0
%
$
978.4
8.1
%
(i)
Includes amortization expense for acquisition-related intangible
assets, primarily customer relationships, customer contracts and
trade names.
(ii)
Includes costs related to strategic transformation initiatives
focused on optimizing various operations and systems.
(iii)
Includes costs related to the workforce reduction program and
charges related to the reduction of our real estate lease
portfolio.
CDW CORPORATION AND
SUBSIDIARIES
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 June
30,
2023
2022
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
$
353.4
$
(90.8
)
$
262.6
25.7
%
$
377.2
$
(97.9
)
$
279.3
26.0
%
(6.0
)%
Amortization of intangibles(ii)
37.3
(9.6
)
27.7
40.7
(10.6
)
30.1
Equity-based compensation
24.8
(7.1
)
17.7
23.5
(5.9
)
17.6
Acquisition and integration expenses
8.7
(2.3
)
6.4
14.9
(3.8
)
11.1
Transformation initiatives(iii)
4.6
(1.2
)
3.4
1.2
(0.3
)
0.9
Workplace optimization(iv)
42.0
(10.9
)
31.1
—
—
—
Other adjustments
0.2
(0.1
)
0.1
0.8
(0.3
)
0.5
Non-GAAP
$
471.0
$
(122.0
)
$
349.0
25.9
%
$
458.3
$
(118.8
)
$
339.5
25.9
%
2.8
%
US GAAP net income per diluted share
$
1.92
$
2.04
Non-GAAP net income per diluted share
$
2.56
$
2.49
Shares used in computing US GAAP and
Non-GAAP net income per diluted share
136.1
136.8
(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 costs related to strategic
transformation initiatives focused on optimizing various operations
and systems.
(iv)
Includes costs related to the
workforce reduction program and charges related to the reduction of
our real estate lease portfolio.
CDW CORPORATION AND
SUBSIDIARIES
NON-GAAP NET INCOME
AND NON-GAAP NET INCOME PER
DILUTED SHARE
(dollars and shares in millions,
except per-share amounts)
(unaudited)
Six Months Ended June
30,
2023
2022
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
$
649.7
$
(157.0
)
$
492.7
24.2
%
$
707.6
$
(178.1
)
$
529.5
25.2
%
(6.9
)%
Amortization of intangibles(ii)
78.9
(20.5
)
58.4
81.6
(21.2
)
60.4
Equity-based compensation
45.6
(22.4
)
23.2
44.6
(15.6
)
29.0
Acquisition and integration expenses
17.6
(4.6
)
13.0
26.6
(6.8
)
19.8
Transformation initiatives(iii)
9.6
(2.5
)
7.1
2.4
(0.6
)
1.8
Workplace optimization(iv)
42.9
(11.1
)
31.8
—
—
—
Other adjustments
2.0
(0.5
)
1.5
1.0
(0.5
)
0.5
Non-GAAP
$
846.3
$
(218.6
)
$
627.7
25.8
%
$
863.8
$
(222.8
)
$
641.0
25.8
%
(2.1
)%
US GAAP net income per diluted share
$
3.60
$
3.87
Non-GAAP net income per diluted share
$
4.59
$
4.69
Shares used in computing US GAAP and
Non-GAAP net income per diluted share
136.7
136.8
(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 costs related to strategic
transformation initiatives focused on optimizing various operations
and systems.
(iv)
Includes costs related to the workforce
reduction program and charges related to the reduction of our real
estate lease portfolio.
CDW CORPORATION AND
SUBSIDIARIES
NET SALES CHANGE ON A CONSTANT
CURRENCY BASIS
(dollars in millions)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
% Change(i)
2023
2022
% Change
Average Daily %
Change(i)
Net sales, as reported
$
5,626.1
$
6,145.8
(8.5
)%
$
10,729.2
$
12,094.9
(11.3
)%
(12.0
)%
Foreign currency translation(ii)
—
(14.9
)
—
(78.0
)
Net sales, on a constant currency
basis
$
5,626.1
$
6,130.9
(8.2
)%
$
10,729.2
$
12,016.9
(10.7
)%
(11.4
)%
(i)
There were 64 selling days for both the
three months ended June 30, 2023 and 2022. There were 128 and 127
selling days for the six months ended June 30, 2023 and 2022,
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)
June 30, 2023
December 31, 2022
June 30, 2022
Assets
(unaudited)
(unaudited)
Current assets:
Cash and cash equivalents
$
203.9
$
315.2
$
541.6
Accounts receivable, net of allowance for
credit losses
of $26.0, $25.7, and $22.9,
respectively
4,496.9
4,461.3
4,474.8
Merchandise inventory
789.8
800.2
1,020.1
Miscellaneous receivables
518.3
489.1
463.7
Prepaid expenses and other
479.1
498.2
539.6
Total current assets
6,488.0
6,564.0
7,039.8
Operating lease right-of-use assets
137.2
149.2
154.5
Property and equipment, net
194.4
188.8
194.7
Goodwill
4,428.2
4,342.7
4,369.6
Other intangible assets, net
1,424.6
1,490.7
1,556.6
Other assets
313.5
396.1
337.9
Total assets
$
12,985.9
$
13,131.5
$
13,653.1
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable - trade
$
2,866.8
$
2,821.3
$
3,315.6
Accounts payable - inventory financing
616.2
519.0
453.1
Current maturities of long-term debt
42.2
56.3
105.5
Contract liabilities
442.1
485.5
431.3
Accrued expenses and other current
liabilities
1,030.0
1,065.0
1,110.1
Total current liabilities
4,997.3
4,947.1
5,415.6
Long-term liabilities:
Debt
5,721.0
5,866.4
6,481.4
Deferred income taxes
180.2
203.4
214.9
Operating lease liabilities
173.6
175.2
179.3
Other liabilities
300.6
336.1
255.7
Total long-term liabilities
6,375.4
6,581.1
7,131.3
Total stockholders’ equity
1,613.2
1,603.3
1,106.2
Total liabilities and stockholders’
equity
$
12,985.9
$
13,131.5
$
13,653.1
CDW CORPORATION AND
SUBSIDIARIES
NET SALES DETAIL
(dollars in millions)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
% Change(i)
2023
2022
% Change
Average Daily %
Change(i)
Corporate
$
2,245.0
$
2,660.7
(15.6
)%
$
4,448.7
$
5,288.3
(15.9
)%
(16.5
)%
Small Business
396.2
500.0
(20.8
)
807.6
1,024.0
(21.1
)
(21.7
)
Public
Government
681.2
609.5
11.8
1,232.7
1,153.4
6.9
6.0
Education
1,026.8
1,041.3
(1.4
)
1,692.5
1,944.1
(12.9
)
(13.6
)
Healthcare
587.1
592.2
(0.9
)
1,182.7
1,178.5
0.4
(0.4
)
Total Public
2,295.1
2,243.0
2.3
4,107.9
4,276.0
(3.9
)
(4.7
)
Other
689.8
742.1
(7.0
)
1,365.0
1,506.6
(9.4
)
(10.1
)
Total Net sales
$
5,626.1
$
6,145.8
(8.5
)%
$
10,729.2
$
12,094.9
(11.3
)%
(12.0
)%
(i) There were 64 selling days for both the three months
ended June 30, 2023 and 2022. There were 128 and 127 selling days
for the six months ended June 30, 2023 and 2022, respectively.
CDW CORPORATION AND
SUBSIDIARIES
TIMING OF REVENUE
RECOGNITION
(dollars in millions)
(unaudited)
Three Months Ended June 30,
2023
Corporate
Small Business
Public
Other
Total
Timing of Revenue Recognition
Transferred at a point in time where CDW
is principal
$
1,891.3
$
354.9
$
2,080.7
$
607.3
$
4,934.2
Transferred at a point in time where CDW
is agent
185.0
32.9
116.7
26.7
361.3
Transferred over time where CDW is
principal
168.7
8.4
97.7
55.8
330.6
Total Net sales
$
2,245.0
$
396.2
$
2,295.1
$
689.8
$
5,626.1
Three Months Ended June 30,
2022
Corporate
Small Business
Public
Other
Total
Timing of Revenue Recognition
Transferred at a point in time where CDW
is principal
$
2,325.9
$
456.2
$
2,032.4
$
662.6
$
5,477.1
Transferred at a point in time where CDW
is agent
172.3
33.4
103.5
19.3
328.5
Transferred over time where CDW is
principal
162.5
10.4
107.1
60.2
340.2
Total Net sales
$
2,660.7
$
500.0
$
2,243.0
$
742.1
$
6,145.8
CDW CORPORATION AND
SUBSIDIARIES
TIMING OF REVENUE
RECOGNITION
(dollars in millions)
(unaudited)
Six Months Ended June 30,
2023
Corporate
Small Business
Public
Other
Total
Timing of Revenue Recognition
Transferred at a point in time where CDW
is principal
$
3,752.7
$
720.2
$
3,689.3
$
1,197.8
$
9,360.0
Transferred at a point in time where CDW
is agent
370.4
69.7
218.2
55.1
713.4
Transferred over time where CDW is
principal
325.6
17.7
200.4
112.1
655.8
Total Net sales
$
4,448.7
$
807.6
$
4,107.9
$
1,365.0
$
10,729.2
Six Months Ended June 30,
2022
Corporate
Small Business
Public
Other
Total
Timing of Revenue Recognition
Transferred at a point in time where CDW
is principal
$
4,617.1
$
936.2
$
3,872.7
$
1,339.7
$
10,765.7
Transferred at a point in time where CDW
is agent
352.9
67.7
199.8
48.8
669.2
Transferred over time where CDW is
principal
318.3
20.1
203.5
118.1
660.0
Total Net sales
$
5,288.3
$
1,024.0
$
4,276.0
$
1,506.6
$
12,094.9
CDW CORPORATION AND
SUBSIDIARIES
DEBT AND WORKING CAPITAL
INFORMATION
(dollars in millions)
June 30, 2023
December 31, 2022
June 30, 2022
(unaudited)
(unaudited)
Debt and Revolver Availability
Cash and cash equivalents
$
203.9
$
315.2
$
541.6
Total debt
5,763.2
5,922.7
6,586.9
Revolver availability
984.4
1,083.6
1,141.4
Cash plus revolver availability
1,188.3
1,398.8
1,683.0
Working Capital(i)
Days of sales outstanding
67
71
64
Days of supply in inventory
14
17
18
Days of purchases outstanding
(67
)
(67
)
(63
)
Cash conversion cycle
14
21
19
(i) Based on a rolling three-month average.
CDW CORPORATION AND
SUBSIDIARIES
CASH FLOW INFORMATION
(dollars in millions)
(unaudited)
Six Months Ended June
30,
2023
2022
Cash flows provided by operating
activities
$
593.6
$
761.1
Capital expenditures
(71.3
)
(63.6
)
Acquisition of businesses, net of cash
acquired
(75.5
)
(28.0
)
Cash flows used in investing
activities
(146.8
)
(91.6
)
Net change in accounts payable - inventory
financing
161.6
19.9
Other cash flows used in financing
activities
(721.1
)
(394.8
)
Cash flows used in financing
activities
(559.5
)
(374.9
)
Effect of exchange rate changes on cash
and cash equivalents
1.4
(11.1
)
Net (decrease) increase in cash and cash
equivalents
(111.3
)
283.5
Cash and cash equivalents - beginning of
period
315.2
258.1
Cash and cash equivalents - end of
period
$
203.9
$
541.6
Supplementary disclosure of cash flow
information:
Interest paid
$
(117.0
)
$
(106.4
)
Income taxes paid, net
$
(174.9
)
$
(160.9
)
CDW CORPORATION AND
SUBSIDIARIES
FREE CASH FLOW
RECONCILIATION
(dollars in millions)
(unaudited)
Six Months Ended June
30,
2023
2022
Net cash provided by operating
activities
$
593.6
$
761.1
Capital expenditures
(71.3
)
(63.6
)
Net change in accounts payable - inventory
financing
161.6
19.9
Free cash flow(1)
$
683.9
$
717.4
(1) Free cash flow is adjusted to include
cash flows from financing activities that relate to the purchase of
inventory.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230802676604/en/
Investor Inquiries Steven O'Brien
Vice President, Investor Relations (847) 968-0238
investorrelations@cdw.com Media
Inquiries Sara Granack Vice President, Corporate
Communications (847) 419-7411 mediarelations@cdw.com
CDW (NASDAQ:CDW)
過去 株価チャート
から 4 2024 まで 5 2024
CDW (NASDAQ:CDW)
過去 株価チャート
から 5 2023 まで 5 2024