May 24, 2018 6:30 AM ET

Electronic Equipment, Instruments and Components

Company Overview of CDW Corporation

Company Overview

CDW Corporation provides integrated information technology (IT) solutions to business, government, education, and healthcare customers in the United States, Canada, and the United Kingdom. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products, as well as integrated IT solutions, including mobility, security, data center optimization, cloud computing, virtualization, and collaboration. Its hardware products comprise notebooks/mobile devices, tablets, network communications, desktop computers, video monitors, enterprise and data storage, printers, and servers; and software products include application suites, secur...

75 Tri-State International

Lincolnshire, IL 60069

United States

Founded in 1984

8,750 Employees

Phone:

847-465-6000

Key Executives for CDW Corporation

Senior VP of Operations & Chief Information Officer
Age: 47
Total Annual Compensation: $354.0K
Compensation as of Fiscal Year 2016.

CDW Corporation Key Developments

CDW Corporation Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2018; Provides Earnings Guidance for the Second Quarter, First Half, Second Half and Full Year of 2018

CDW Corporation reported unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company's net sales were $3,606.4 million compared to $3,256.0 million a year ago. Income from operations was $204.1 million compared to $170.7 million a year ago. Income before income taxes was $165.7 million compared to $74.5 million a year ago. Net income was $127.0 million compared to $58.2 million a year ago. Diluted net income per common share was $0.82 compared to $0.36 a year ago. EBITDA was $270.0 million compared to $178.4 million a year ago. Adjusted EBITDA was $279.8 million compared to $250.1 million a year ago. Cash flows from operating activities were $222.2 million compared to $369.9 million a year ago. Capital expenditures were $15.9 million compared to $19.6 million a year ago. Non-GAAP net income was $162.8 million compared to $121.9 million a year ago, representing an increase of 33.6%. Non-GAAP net income per diluted share was $1.05 compared to $0.75 for the first quarter of 2017, representing an increase of 40.5%. Non-GAAP income before income taxes was $221.0 million compared to $192.0 million a year ago. Net debt was $3 billion. The company's historical sales seasonality has been roughly 48% first half, 52% second half. Based on first quarter results and expectations for the rest of the year, the company look for roughly 50 basis points of sales to shift from the second half to the first half of the year. Given first quarter's better-than-historical sequential growth, the company looks for second quarter seasonality to run below historical seasonality. Given first quarter performance and year-to-go expectations, the company expects to exceed its initial 2018 non-GAAP EPS growth target in constant currency and now look for non-GAAP EPS growth to be in the mid to high 20s, which the company define as 25% to 27%. The company expects currency to have a similar impact on EPS growth to sales growth. The company continues to expect its adjusted EBITDA margin to come in roughly 5 to 10 basis points-or-so below the high end of its high 7% to 8% annual target range as tax reform investments and tax expenses. The company now expects annual depreciation and amortization to run a little less than $10 million above 2017 at roughly $68 million per quarter, $47 million of which is for purchased intangibles. With the impact of its term loan reprising in April, annual book interest expense is expected to come in at roughly $155 million. Annual non-GAAP EPS is expected to grow approximately 300 basis points faster than non-GAAP net income, as share repurchases contribute to its annual target of mid- to high 20% non-GAAP EPS growth. The company expects capital expenditures to be slightly above 0.5% of net sales on an annual basis. The company continues to expect its full year non-GAAP effective tax rate to be between 26% and 27%. The company expects a cash tax rate in the 26% to 27% range to be applied to pretax book income before acquisition-related intangibles amortization, which is approximately $47 million per quarter.

CDW Corporation Announces Quarterly Cash Dividend, Payable on June 11, 2018

CDW Corporation announced that a quarterly cash dividend of $0.21 per share, which is 31% higher than the prior year period, will be paid on June 11, 2018 to all stockholders of record as of the close of business on May 25, 2018.

CDW Corporation, Q1 2018 Earnings Call, May 02, 2018

CDW Corporation, Q1 2018 Earnings Call, May 02, 2018

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