LINCOLNSHIRE, Ill., Feb. 09, 2016 (WORLD NEWSWIRE)– CDW Corporation (NASDAQ: CDW), a leading multi-brand technology solutions company to business, government, education and healthcare, today announced its fourth quarter and full year 2015 outcomes.
2015 was another year of strategic development and strong financial efficiency, as we captured market share and provided exceptional earnings while remaining to purchase our future, said Thomas E. Richards, chairman and primary executive officer of CDW. As soon as once again our performance showed the power of our business design as we leveraged our balanced portfolio of channels, diverse product suite and focus on execution to deliver mid-single digit natural topline development – an outstanding result provided ins 2014 double-digit development sustained by PC refresh and Common Core gadgets. We completed the year with strong efficiency in our United States options business, which provided low-teens development in the 4th quarter.
Strong natural operating results were magnified by lower interest expenditure, incremental revenues from the acquisition of UK IT solutions supplier, Kelway, and share repurchases and we delivered a 23 percent boost in non-GAAP net income per diluted share in the quarter, said Ann E. Ziegler, CDWs chief monetary officer. In spite of anticipated currency headwinds we expect to attain our 2016 to 2018 yearly medium term target of low-double digit incomes per share development in 2016.
We mean to continue to perform versus our strategy for development in 2016 and deliver profitable, consistent currency organic topline development 200 to 300 basis points greater than the US IT market, which we now expect to grow between 2 and 3 percent, continued Richards. That doesn’t consist of the incremental development we expect from our expanded partnership with Dell and Kelway acquisition. At the exact same time, we will remain to pursue our method of getting share of wallet and brand-new customers while investing in high growth solutions locations and services.
A quarterly cash dividend payment of $0.1075 per share will be paid on March 10, 2016 to all investors of record since the close of business on February 25, 2016.
Fourth Quarter of 2015 Emphasizes:
Total net sales in the fourth quarter of 2015 were $3.418 billion, compared to $3.050 billion in the fourth quarter of 2014, a boost of 12.1 percent. Organic net sales development, which excludes the effect of the Kelway acquisition, was 5.1 percent. Organic net sales growth on a constant currency basis versus fourth quarter 2014 was 5.8 percent, reflecting undesirable foreign currency translation in the business Canadian company. Average daily sales in the 4th quarter of 2015 were $54.3 million, compared to $48.4 million in the fourth quarter of 2014. There were 63 selling days in the 4th quarters of both 2015 and 2014.
- Total Corporate segment net sales in the 4th quarter of 2015 were $1.757 billion, 3.9 percent greater than the 4th quarter of 2014. Business average everyday sales in the 4th quarter of 2015 were $27.9 million, compared with $26.8 million in the fourth quarter of 2014. Corporate results showed a 3.7 percent sales increase to Medium and Big clients and a 5.0 percent sales enhance to Small Business customers.Total Public sector net sales in
- the 4th quarter of 2015 were$1.277 billion, 9.2 percent greater than the 4th quarter of 2014. Public average day-to-day sales in the fourth quarter of 2015 were$20.3 million, compared to $18.6 million in the 4th quarter of 2014. Public results were led by a sales increase of 16.5 percent to Government customers, partly balanced out by a 1.3 percent decline in Education sales. Health care sales increased 10.2 percent.Net sales for CDW’s Advanced Services business, Canadian and Kelway operations, integrated as”Other” for monetary
- reporting purposes, were$384.5 million in the fourth quarter of 2015, $194.5 million greater than the 4th quarter of 2014. High-single digit growth in Advanced Solutions was offset by a mid-teens decrease in US dollar-denominated Canadian sales. Canadian sales in regional currency were fairly flat. Net sales produced by Kelway throughout the quarter were$ 212.3 million. Other average day-to-day sales in the 4th quarter of 2015 were $6.1 million, compared with$3.0 million in the fourth quarter of 2014. CDW’s Advanced Solutions business includes personalized engineering services delivered by CDW expert engineers and handled services, consisting of hosting and information center services. Gross profit for the fourth quarter of 2015 was$557.6 million, compared to $491.9 million in the fourth quarter of 2014, representing an increase of 13.4 percent
. Gross revenue margin was 16.3 percent in the fourth quarter of 2015, versus 16.1 percent for the same period in 2014, primarily reflecting the advantage of a higher contribution of One Hundred Percent gross margin profits, such as net service contract earnings and commission revenues, along with incremental Kelway margin provided its higher mix of services and options. Overall selling and management expenditures and advertising cost were$ 377.7 million in the fourth quarter of 2015, compared to$327.6 million in the 4th quarter of 2014,
representing an increase of 15.3 percent. This increase was mostly driven by incremental Kelway costs, greater sales payment constant with the development in solutions-related sales and gross margin, as well as higher marketing and marketingadvertising and marketing financial investment. Including Kelway, colleague count was 8,465 as of December31, 2015, compared with 7,211 as of December31, 2014. Adjusted EBITDA, which excludes expenses associated with non-cash equity and retention compensation, loss and income from equity investments, acquisition and integration costs, gain on remeasurement of the business initial 35 percent equity financial investment in Kelway to fair value, certain financial obligation refinancing costs and particular other items, was$257.5 million in the fourth quarter of 2015, as compared to$223.6 million in the fourth quarter of 2014, representing an increase of 15.1 percent. 4th quarter of 2015 Adjusted EBITDA margin was 7.5 percent, versus 7.3 percent for the 4th quarter of 2014. Interest expenditure decreased by$10.2 million to $38.4 million for the three months ended December31, 2015, compared to$48.6 million for the equivalent period in 2014, reflecting a lower average rate of interest. Long-term financial obligation, web of cash and including current maturities of long-lasting debt, was$3.2 billion since December31, 2015, $400.7 million greater than December31, 2014, reflecting cash paid and financial obligation consolidation as part of the acquisition of Kelway. The reliable tax rate for the 4th quarter of 2015 was 37.0 percent, which resulted in a tax cost of$52.4 million, compared to a 35.4 percent tax rate and tax expenditure of$ 28.3 million in the 4th quarter of 2014. Net earningsEarnings was$ 89.3 million in the 4th quarter of 2015, compared with$51.8 million in the 4th quarter of 2014. Non-GAAP net earningsearnings, which excludes acquisition-related intangible possession amortization, costs associated with non-cash equity payment, acquisition and combination expenses, gain on remeasurement of the companys initial 35 percent equity financial investment in Kelway to reasonable value, certain financial obligation refinancing costs and specific other costs, was$123.7 million in the fourth quarter of 2015, compared to$ 102.2 million in the 4th quarter of 2014, representing an increase of 21.1 percent. Weighted typical diluted shares outstanding were 170.1 million for the 4th quarter of 2015 as compared to 173.2 million for the 4th quarter of 2014. The Business redeemed an overall of 1.1 million shares for$ 48.0 million throughout the fourth quarter of 2015.
Non-GAAP net earnings per diluted share for the quarter ended December31, 2015 was $0.73, as compared to $0.59 for the quarter ended December31, 2014, representing an increase of 23.3 percent. Complete Year 2015 Emphasizes: Overall net sales in 2015 were$12.989 billion, compared to$12.075 billion in 2014, a boost of 7.6 percent. Organic net sales growth, which omits the impact of the Kelway acquisition, was 4.7 percent.Organic net sales development on a constant currency basis versus 2014 was 5.3 percent,
showing unfavorable foreign currency translation in the companys Canadian business. Average daily sales in 2015 were$ 51.1 million, compared to$ 47.5 million in 2014, representing a 7.6 percent increase.There were 254 selling days in both 2015 and 2014. Gross earnings in 2015 was$2.116 billion, as compared to$ 1.921 billion in 2014, representing a boost of 10.1 percent. Total selling and administrative costs and advertising expense were$ 1,373.8 million in 2015, compared to $1,248.3 million in 2014, representing a boost of 10.1 percent.Adjusted EBITDA was$1,018.5 million in
2015, compared with $907.0 million in 2014, representing a boost of 12.3 percent.Adjusted EBITDA margin was 7.8 percent in 2015
versus 7.5 percent in 2014. Net earningsEarnings was$ 403.1 million in 2015, up 64.6 percent, compared to $244.9 million in 2014. Financial obligation extinguishment charges were$24.3 million in 2015, compared to $90.7 million in 2014. Interest expense was $159.5 million in 2015, 19.2 percent below interest expenditure of$ 197.3 million in 2014. The efficient tax rate for
2015 was 37.7 percent versus 36.8 percent for 2014. Non-GAAP net earnings was$503.5 million in 2015, compared to $409.9 million in 2014, representing a boost of 22.8 percent driven by stronger operating results, lower loss on financial obligation extinguishments as a result of fewer debt refinancings in the year and lower interest expenditure. Weighted average fully-diluted shares outstanding were 171.8 million for the year ended December31, 2015 as compared to 172.8 million for the year ended December31, 2014. The Business repurchased a total of 6.3 million shares for$ 241.3 million during 2015. Non-GAAP net earningsearnings per diluted share for the year ended December31, 2015 was$2.93, compared to$2.37 for the year ended December31, 2014, representing an increase of 23.6 percent. Forward-Looking Declarations Statements in this release that are not declarations of historical truth are forward-looking statements within the definition of the safe harbor arrangements of the Personal Securities Litigation Reform Act of 1995, consisting of without limitation statements relating to the future monetary efficiency of CDW. These statements include dangers and unpredictabilities that might cause actual
outcomesresult in vary materially
from those described in such declarations. These dangers and unpredictabilities include, amongst others, changes in financial conditions; declines in spending on innovation products; CDWs relationships with supplier partners and accessibility of their items; continued innovations in hardware, software and services offerings by CDWs vendor partners; significant competitors that might decrease CDWs market share; CDWs considerable indebtedness and ability to generate enough cash to service such indebtedness; restrictions imposed by arrangements connecting to CDWs indebtedness on its operations and liquidity; changes in, or the discontinuation of, CDWs share repurchase program or dividend payments; the continuing advancement, maintenance and operation of CDWs details technology systems; possible breaches of data security; possible failures to comply with Public segment agreements or applicable laws and regulations; prospective failures to offer premium services to CDWs clients; potential losses of any crucial workers; potential disruptions of the flow of items from suppliers; possible negative incidents at one of CDWs main facilities or consumer information centers; CDWs reliance on business delivery services; CDWs exposure to receivables and stock risks; fluctuations in foreign currency; future acquisitions or alliances; changes in CDWs running outcomes; current and future legal proceedings and audits; potential acceleration of CDWs deferred cancellation of financial obligation income; and other danger aspects or unpredictabilities recognized from time to time in CDWs filings with the SEC. Although CDW believes that the expectations reflected in such positive declarations are sensible, it can offer no guarantee that such expectations will prove to have been proper. Reference is made to a more complete discussion of forward-looking statements and suitable risks consisted of under the captions Forward-Looking Statements and Risk Factors in CDWs Yearly Credit report on Kind 10-K for the year ended December 31, 2014 and subsequent filings with the SEC.CDW carries out no commitment to update or change any of its forward-looking statements, whether as an outcome of brand-new information, future events or otherwise. Non-GAAP Financial Information EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP net earningsearnings, Non-GAAP net income per diluted share, Organic net sales growth(specified as net sales leaving out the effect of acquisitions within the last twelve months) and Organic net sales growth on a constant currency basis(specified as natural net sales development excluding the effect of foreign currency translation on natural sales as compared to the previous period)are non-GAAP monetary measures. The business believes these procedures offer practical details with respect to the business’s operating
performance and cash circulations, including the business ability to satisfy its future financial obligation service, capital expensescapital investment and working capital demands and the Companys ability making dividend payments. Changed EBITDA also provides useful details as it is the main measure utilized in specific vital covenants and meanings contained in the company’s credit arrangements. The financial declaration tables that accompany this news release consist of a reconciliation of non-GAAP financial measures to the suitable most equivalent United States GAAP financial steps. Non-GAAP procedures utilized by the company may vary from similar procedures used by other companies, even when similar terms are used to determine such steps. About CDW CDW is a leading multi-brand innovation options service provider to company, federal government, education and health care companies in The United States and Canada and the United Kingdom. A Fortune 500 company, CDW was founded in 1984 and utilizes more than 8,400 coworkers.
For the year ended December31, 2015, the company created net sales of over$12.9 billion. For more info about CDW, please check out www.CDW.com. Webcast CDW will hold a teleconference today, February 9, 2016 at 7:30 am CT/8:30 am ET to discuss its fourth quarter and full year monetary results. The conference call, which will be relayed live via the Internet, and a
copy of this news release along with extra slides utilized throughout the call, can be accessed on CDW’s website at investor.cdw.com. For those unable to get involvedtake part in the live call, a replay of the webcast will be available at investor.cdw.comapproximately 90 minutes after the conclusion of the call and will be available on the website for around one year. Financier Inquiries Sari Macrie, CFA Vice President, Investor
Relations -LRB-847-RRB-Â 968-0238 Media Inquiries Mary Viola Vice President, Corporate Communications -LRB-847-RRB-Â 968-0743 CDWPR-FI CDW CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS( in millions, except per-share amounts)( unaudited)