Reinforces Power of Business Model and
Strategy
CDW Corporation (Nasdaq: CDW):
(Dollars in millions, except per share
amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2022
2021
% Chg.
2022
2021
% Chg.
Net Sales
$
6,145.8
$
5,146.4
19.4
$
12,094.9
$
9,983.9
21.1
Average Daily Sales1
96.0
80.4
19.4
95.2
78.6
21.1
Gross Profit
1,168.2
882.8
32.3
2,272.3
1,678.0
35.4
Operating Income
435.3
369.9
17.7
822.2
693.3
18.6
Net Income
279.3
274.1
1.9
529.5
506.7
4.5
Non-GAAP Operating Income2
516.3
418.1
23.5
978.4
785.8
24.5
Non-GAAP Net Income2
339.5
286.1
18.7
641.0
535.5
19.7
Net Income per Diluted Share
$
2.04
$
1.93
5.6
$
3.87
$
3.56
8.8
Non-GAAP Net Income per Diluted Share2
$
2.49
$
2.02
23.0
$
4.69
$
3.76
24.6
1 There were 64 selling days for both the
three months ended June 30, 2022 and 2021. There were 127 selling
days for both the six months ended June 30, 2022 and 2021.
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 2022 results. CDW also
announced the approval by its Board of Directors of a quarterly
cash dividend of $0.50 per share to be paid on September 9, 2022 to
all stockholders of record as of the close of business on August
25, 2022.
“Outstanding second quarter Net sales and profit growth
continues to demonstrate our ability to pivot to meet customers’
evolving business needs. Record quarterly results once again
highlight the strength of our business model and the power of our
broad product and solutions portfolio addressing priorities across
diverse customer end markets," said Christine A. Leahy, president
and chief executive officer, CDW. “Customers turn to CDW as a
trusted advisor with the breadth, depth, expertise and scale to
deliver business-enhancing outcomes across the full technology
stack and lifecycle. I am extremely proud of the commitment,
agility and resolve of our coworkers, who successfully delivered
for customers in a supply constrained environment.”
“Strong operating results, our flexible business model, and our
disciplined approach to capital allocation delivered outstanding
earnings growth with a 5.6 and 23.0 percent increase in GAAP and
Non-GAAP earnings per diluted share,” said Albert J. Miralles,
chief financial officer, CDW. "We continue to intend to use cash
flow after dividends to achieve our net leverage target range by
the end of 2022."
“We expect to exceed our initial 2022 outlook to outpace US IT
market growth by 200 to 300 basis points on a constant currency
basis. 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 around the globe and remain the partner of
choice for more than 1,000 leading and emerging technology brands
as the market continues to evolve," concluded Leahy.
Second Quarter of 2022
Highlights:
Net sales in the second quarter of 2022 were $6,146 million,
compared to $5,146 million in the second quarter of 2021, an
increase of 19.4 percent. This increase includes the contribution
from the acquisition of Sirius Computer Solutions ("Sirius") which
closed on December 1, 2021. There were 64 selling days for both the
three months ended June 30, 2022 and 2021. Net sales growth on a
constant currency basis increased 20.5 percent. Currency impact to
Net sales growth was driven by unfavorable translation of the
British pound and Canadian dollar to US dollar. Second quarter Net
sales performance included:
- Total Corporate segment Net sales of $2,661 million, 34.2
percent higher than 2021.
- Total Small Business segment Net sales of $500 million, 3.5
percent higher than 2021.
- Total Public segment Net sales of $2,243 million, 7.8 percent
higher than 2021. Public results were driven by an increase in Net
sales to Healthcare and Government customers of 30.1 percent and
18.7 percent, respectively. Net sales to Education customers
decreased by 6.4 percent.
- Net sales for CDW's UK and Canadian operations, combined as
"Other" for financial reporting purposes, were $742 million, 23.8
percent higher than 2021.
Gross profit in the second quarter of 2022 was $1,168 million,
compared to $883 million for the second quarter of 2021,
representing an increase of 32.3 percent. Gross profit margin was
19.0 percent in the second quarter of 2022 versus 17.2 percent in
the second quarter of 2021. The increase in Gross profit margin was
primarily driven by more favorable product mix and rate and higher
mix of netted down revenue, primarily within software as a service,
as well as increased Net sales and margins on professional services
as a result of the recent business acquisitions.
Total selling and administrative expenses were $733 million in
the second quarter of 2022, compared to $513 million in the second
quarter of 2021, representing an increase of 42.9 percent. The
increase was primarily driven by higher payroll consistent with
higher Gross profit and higher coworker count, including the impact
of the acquisition of Sirius, as well as higher intangible asset
amortization and integration expenses from the acquisition of
Sirius.
Operating income was $435 million in the second quarter of 2022,
compared to $370 million in the second quarter of 2021,
representing an increase of 17.7 percent. Non-GAAP operating income
was $516 million in the second quarter of 2022, compared to $418
million in the second quarter of 2021, representing an increase of
23.5 percent. The Non-GAAP operating income margin was 8.4 percent
for the second quarter of 2022 versus 8.1 percent for the second
quarter of 2021.
Net interest expense was $58 million in the second quarter of
2022, compared to $36 million in the second quarter of 2021,
representing an increase of 62.5 percent. The increase was
primarily driven by additional interest expense from the $2.5
billion aggregate principal amount of senior notes issued on
December 1, 2021, the net proceeds of which were used to fund the
acquisition of Sirius.
The effective tax rate was 26.0 percent in the second quarter of
2022, compared to 26.2 percent in the second quarter of 2021, which
resulted in tax expense of $98 million and $97 million,
respectively. The decrease in effective tax rate was primarily
attributable to a prior year discrete deferred tax expense as a
result of an increase in the UK corporate tax rate effective in
2023, partially offset by lower excess tax benefits on equity-based
compensation and higher non-deductible expenses.
Net income was $279 million in the second quarter of 2022,
compared to $274 million in the second quarter of 2021,
representing an increase of 1.9 percent. Net income in the second
quarter of 2021 included a $36 million gain from the sale of an
equity method investment, as reported within Other (expense)
income, net. Non-GAAP net income was $340 million in the second
quarter of 2022, compared to $286 million in the second quarter of
2021, representing an increase of 18.7 percent.
Weighted average diluted shares outstanding were 137 million for
the second quarter of 2022, compared to 142 million for the second
quarter of 2021. Net income per diluted share for the second
quarter of 2022 was $2.04, compared to $1.93 for the second quarter
of 2021, representing an increase of 5.6 percent. Non-GAAP net
income per diluted share for the second quarter of 2022 was $2.49,
compared to $2.02 for the second quarter of 2021, representing an
increase of 23.0 percent.
Year to Date 2022 Highlights:
Net sales for the first six months ("year to date") of 2022 were
$12,095 million, compared to $9,984 million for year to date 2021,
an increase of 21.1 percent. This increase includes the
contribution from the acquisition of Sirius which closed on
December 1, 2021. There were 127 selling days for both the six
months ended June 30, 2022 and 2021. Net sales growth on a constant
currency basis increased 21.9 percent. Currency impact to Net sales
growth was driven by unfavorable translation of the British pound
and Canadian dollar to US dollar. The year to date Net sales
performance included:
- Total Corporate segment Net sales of $5,288 million, 39.6
percent higher than 2021.
- Total Small Business segment Net sales of $1,024 million, 11.8
percent higher than 2021.
- Total Public segment Net sales of $4,276 million, 6.8 percent
higher than 2021. Public results were driven by an increase in Net
sales to Healthcare and Government customers of 28.4 percent and
12.0 percent, respectively. Net sales to Education customers
decreased 5.4 percent.
- Net sales for CDW's UK and Canadian operations, combined as
“Other” for financial reporting purposes, were $1,507 million, 18.0
percent higher than 2021.
Gross profit in year to date 2022 was $2,272 million, compared
to $1,678 million in year to date 2021, representing an increase of
35.4 percent. Gross profit margin was 18.8 percent in year to date
2022 versus 16.8 percent in year to date 2021. The increase in
Gross profit margin was primarily driven by more favorable product
mix and rate and higher mix of netted down revenue, primarily
within software as a service, as well as increased Net sales and
margins on professional services as a result of the recent business
acquisitions.
Total selling and administrative expenses were $1,450 million in
year to date 2022, compared to $985 million in year to date 2021,
representing an increase of 47.3 percent. The increase was
primarily driven by higher payroll consistent with higher Gross
profit and higher coworker count, including the impact of the
acquisition of Sirius, as well as higher intangible asset
amortization and integration expenses from the acquisition of
Sirius.
Operating income was $822 million in year to date 2022, compared
to $693 million in year to date 2021, representing an increase of
18.6 percent. Non-GAAP operating income was $978 million in year to
date 2022, compared to $786 million in year to date 2021,
representing an increase of 24.5 percent. The Non-GAAP operating
income margin was 8.1 percent for year to date 2022 versus 7.9
percent for year to date 2021.
Net interest expense was $114 million in year to date 2022,
compared to $71 million for year to date 2021, representing an
increase of 59.9 percent. The increase was primarily driven by
additional interest expense from the $2.5 billion aggregate
principal amount of senior notes issued on December 1, 2021, the
net proceeds of which were used to fund the acquisition of
Sirius.
The effective tax rate was 25.2 percent in year to date 2022,
compared to 23.2 percent in year to date 2021, which resulted in
tax expense of $178 million and $153 million, respectively. The
increase in effective tax rate was primarily attributable to lower
excess tax benefits on equity-based compensation and higher
non-deductible expenses, partially offset by a prior year discrete
deferred tax expense as a result of an increase in the UK corporate
tax rate effective in 2023.
Net income was $530 million in year to date 2022, compared to
$507 million in year to date 2021, representing an increase of 4.5
percent. Non-GAAP net income was $641 million for year to date
2022, compared to $536 million in year to date 2021, representing
an increase of 19.7 percent.
Weighted average diluted shares outstanding were 137 million for
year to date 2022, compared to 142 million for year to date 2021.
Net income per diluted share for year to date 2022 was $3.87,
compared to $3.56 for 2021, representing an increase of 8.8
percent. Non-GAAP net income per diluted share for year to date
2022 was $4.69, compared to $3.76 for year to date 2021,
representing an increase of 24.6 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 section entitled "Risk Factors" included in
our Annual Report on Form 10-K for the year ended December 31, 2021
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, 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; inflationary
pressures; level of interest rates; CDW's relationships with vendor
partners and terms of their agreements; 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 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; 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 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, 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, 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 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.
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. 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. 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 14,600
coworkers. For the trailing twelve months ended June 30, 2022, CDW
generated Net sales of approximately $23 billion. For more
information about CDW, please visit www.CDW.com.
Webcast
CDW Corporation will hold a conference call today, August 3,
2022 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,
2022
2021
% Change(i)
2022
2021
% Change(i)
Net sales
$
6,145.8
$
5,146.4
19.4
%
$
12,094.9
$
9,983.9
21.1
%
Cost of sales
4,977.6
4,263.6
16.7
9,822.6
8,305.9
18.3
Gross profit
1,168.2
882.8
32.3
2,272.3
1,678.0
35.4
Selling and administrative expenses
732.9
512.9
42.9
1,450.1
984.7
47.3
Operating income
435.3
369.9
17.7
822.2
693.3
18.6
Interest expense, net
(57.7
)
(35.5
)
62.5
(113.7
)
(71.1
)
59.9
Other (expense) income, net
(0.4
)
36.8
nm*
(0.9
)
37.9
nm*
Income before income taxes
377.2
371.2
1.6
707.6
660.1
7.2
Income tax expense
(97.9
)
(97.1
)
0.8
(178.1
)
(153.4
)
16.1
Net income
$
279.3
$
274.1
1.9
%
$
529.5
$
506.7
4.5
%
Net income per common share:
Basic
$
2.07
$
1.96
5.6
%
$
3.92
$
3.60
8.8
%
Diluted
$
2.04
$
1.93
5.6
%
$
3.87
$
3.56
8.8
%
Weighted-average common shares
outstanding:
Basic
135.2
139.8
135.1
140.6
Diluted
136.8
141.7
136.8
142.4
* not meaningful
(i)
There were 64 selling days for both the
three months ended June 30, 2022 and 2021. There were 127 selling
days for both the six months ended June 30, 2022 and 2021.
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 six months ended June 30, 2022 and
2021 below.
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,
2022
% of Net sales
2021
% of Net sales
2022
% of Net sales
2021
% of Net sales
Operating income, as reported
$
435.3
7.1
%
$
369.9
7.2
%
$
822.2
6.8
%
$
693.3
6.9
%
Amortization of intangibles(i)
40.7
24.4
81.6
46.0
Equity-based compensation
23.5
20.6
44.6
36.4
Acquisition and integration expenses
14.9
2.8
26.6
6.4
Other adjustments
1.9
0.4
3.4
3.7
Non-GAAP operating income
$
516.3
8.4
%
$
418.1
8.1
%
$
978.4
8.1
%
$
785.8
7.9
%
(i)
Includes amortization expense for
acquisition-related intangible assets, primarily customer
relationships, customer contracts and trade names.
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 June
30,
2022
2021
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
As reported
$
377.2
$
(97.9
)
$
279.3
26.0
%
$
371.2
$
(97.1
)
$
274.1
26.2
%
1.9
%
Gain on sale of equity method
investment
—
—
—
(36.0
)
8.8
(27.2
)
Amortization of intangibles(ii)
40.7
(10.6
)
30.1
24.4
(1.8
)
22.6
Equity-based compensation
23.5
(5.9
)
17.6
20.6
(6.2
)
14.4
Acquisition and integration expenses
14.9
(3.8
)
11.1
2.8
(0.7
)
2.1
Other adjustments
2.0
(0.6
)
1.4
0.4
(0.3
)
0.1
Non-GAAP
$
458.3
$
(118.8
)
$
339.5
25.9
%
$
383.4
$
(97.3
)
$
286.1
25.4
%
18.7
%
Net income per diluted share
$
2.04
$
1.93
Non-GAAP net income per diluted share
$
2.49
$
2.02
Shares used in computing reported and
Non-GAAP net income per diluted share
136.8
141.7
(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.
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)
Six Months Ended June
30,
2022
2021
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
As reported
$
707.6
$
(178.1
)
$
529.5
25.2
%
$
660.1
$
(153.4
)
$
506.7
23.2
%
4.5
%
Amortization of intangibles(ii)
81.6
(21.2
)
60.4
46.0
(7.2
)
38.8
Equity-based compensation
44.6
(15.6
)
29.0
36.4
(27.0
)
9.4
Gain on sale of equity method
investment
—
—
—
(36.0
)
8.8
(27.2
)
Acquisition and integration expenses
26.6
(6.8
)
19.8
6.4
(1.6
)
4.8
Other adjustments
3.4
(1.1
)
2.3
4.1
(1.1
)
3.0
Non-GAAP
$
863.8
$
(222.8
)
$
641.0
25.8
%
$
717.0
$
(181.5
)
$
535.5
25.3
%
19.7
%
Net income per diluted share
$
3.87
$
3.56
Non-GAAP net income per diluted share
$
4.69
$
3.76
Shares used in computing reported and
Non-GAAP net income per diluted share
136.8
142.4
(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.
CDW CORPORATION AND
SUBSIDIARIES
NET SALES GROWTH ON A CONSTANT
CURRENCY BASIS
(dollars in millions)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
% Change(i)
2022
2021
% Change
Net sales, as reported
$
6,145.8
$
5,146.4
19.4
%
$
12,094.9
$
9,983.9
21.1
%
Foreign currency translation(ii)
—
(44.9
)
—
(60.2
)
Net sales, on a constant currency
basis
$
6,145.8
$
5,101.5
20.5
%
$
12,094.9
$
9,923.7
21.9
%
(i)
There were 64 selling days for both the
three months ended June 30, 2022 and 2021. There were 127 selling
days for both the six months ended June 30, 2022 and 2021.
(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, 2022
December 31, 2021
June 30, 2021
Assets
(unaudited)
(unaudited)
Current assets:
Cash and cash equivalents
$
541.6
$
258.1
$
501.2
Accounts receivable, net of allowance for
credit losses of $22.9, $20.4, and $21.2, respectively
4,474.8
4,499.4
3,370.5
Merchandise inventory
1,020.1
927.6
888.7
Miscellaneous receivables
463.7
435.5
430.9
Prepaid expenses and other
539.6
357.5
230.3
Total current assets
7,039.8
6,478.1
5,421.6
Operating lease right-of-use assets
154.5
155.6
124.7
Property and equipment, net
194.7
195.8
176.1
Goodwill
4,369.6
4,382.9
2,731.9
Other intangible assets, net
1,556.6
1,628.1
487.3
Other assets
337.9
358.9
49.3
Total assets
$
13,653.1
$
13,199.4
$
8,990.9
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable - trade
$
3,315.6
$
3,114.2
$
2,207.4
Accounts payable - inventory financing
453.1
448.3
375.2
Current maturities of long-term debt
105.5
102.7
19.8
Contract liabilities
431.3
402.9
325.7
Accrued expenses and other current
liabilities
1,110.1
1,027.9
842.0
Total current liabilities
5,415.6
5,096.0
3,770.1
Long-term liabilities:
Debt
6,481.4
6,755.8
3,909.2
Deferred income taxes
214.9
222.3
33.1
Operating lease liabilities
179.3
184.2
161.5
Other liabilities
255.7
235.4
68.2
Total long-term liabilities
7,131.3
7,397.7
4,172.0
Total stockholders’ equity
1,106.2
705.7
1,048.8
Total liabilities and stockholders’
equity
$
13,653.1
$
13,199.4
$
8,990.9
CDW CORPORATION AND
SUBSIDIARIES
NET SALES DETAIL
(dollars in millions)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
% Change(i)
2022
2021
% Change(i)
Corporate
$
2,660.7
$
1,983.3
34.2
%
$
5,288.3
$
3,788.9
39.6
%
Small Business
500.0
482.9
3.5
1,024.0
915.6
11.8
Public
Government
609.5
513.4
18.7
1,153.4
1,029.5
12.0
Education
1,041.3
1,112.1
(6.4
)
1,944.1
2,055.4
(5.4
)
Healthcare
592.2
455.2
30.1
1,178.5
917.5
28.4
Total Public
2,243.0
2,080.7
7.8
4,276.0
4,002.4
6.8
Other
742.1
599.5
23.8
1,506.6
1,277.0
18.0
Total Net sales
$
6,145.8
$
5,146.4
19.4
%
$
12,094.9
$
9,983.9
21.1
%
(i)
There were 64 selling days for both the
three months ended June 30, 2022 and 2021. There were 127 selling
days for both the six months ended June 30, 2022 and 2021.
CDW CORPORATION AND
SUBSIDIARIES
DEBT AND WORKING CAPITAL
INFORMATION
(dollars in millions)
June 30, 2022
December 31, 2021
June 30, 2021
(unaudited)
(unaudited)
Debt and Revolver Availability
Cash and cash equivalents
$
541.6
$
258.1
$
501.2
Total debt
6,586.9
6,858.5
3,929.0
Revolver availability
1,141.4
987.3
1,228.5
Cash plus revolver availability
1,683.0
1,245.4
1,729.7
Working Capital(i)
Days of sales outstanding
64
65
56
Days of supply in inventory
18
17
16
Days of purchases outstanding
(63
)
(58
)
(51
)
Cash conversion cycle
19
24
21
(i)
Based on a rolling three-month
average.
CDW CORPORATION AND
SUBSIDIARIES
CASH FLOW INFORMATION
(dollars in millions)
(unaudited)
Six Months Ended June
30,
2022
2021
Cash flows provided by operating
activities
$
761.1
$
344.9
Capital expenditures(i)
(63.6
)
(38.5
)
Acquisition of business, net of cash
acquired
(28.0
)
(211.6
)
Proceeds from the sale of equity method
investment
—
36.0
Cash flows used in investing
activities
(91.6
)
(214.1
)
Net change in accounts payable - inventory
financing
19.9
(150.1
)
Financing payments for revenue generating
assets
—
(46.1
)
Other cash flows used in financing
activities
(394.8
)
(846.3
)
Cash flows used in financing
activities
(374.9
)
(1,042.5
)
Effect of exchange rate changes on cash
and cash equivalents
(11.1
)
2.7
Net increase (decrease) in cash and cash
equivalents
283.5
(909.0
)
Cash and cash equivalents - beginning of
period
258.1
1,410.2
Cash and cash equivalents - end of
period
$
541.6
$
501.2
Supplementary disclosure of cash flow
information:
Interest paid
$
(106.4
)
$
(66.4
)
Income taxes paid, net
$
(160.9
)
$
(157.6
)
(i)
Includes expenditures for revenue
generating assets.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220803005149/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
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