| (Dollars in millions, except per share amounts and percentage) |
Three Months Ended September 30, |
Nine Months Ended September 30, |
| |
2024 |
|
|
2023 |
|
%
Chg. |
|
2024 |
|
|
2023 |
|
%
Chg. |
| Net Sales |
$ |
5,516.6 |
|
$ |
5,628.3 |
|
(2.0 |
) |
$ |
15,812.7 |
|
$ |
16,357.5 |
|
(3.3 |
) |
| Gross Profit |
$ |
1,200.7 |
|
$ |
1,227.7 |
|
(2.2 |
) |
$ |
3,447.1 |
|
$ |
3,498.6 |
|
(1.5 |
) |
| Gross Profit Margin |
|
21.8 |
% |
|
21.8 |
% |
|
|
21.8 |
% |
|
21.4 |
% |
|
| Operating Income |
$ |
481.6 |
|
$ |
478.4 |
|
0.7 |
|
$ |
1,242.7 |
|
$ |
1,245.9 |
|
(0.3 |
) |
| Non-GAAP Operating Income 1 |
$ |
534.0 |
|
$ |
556.3 |
|
(4.0 |
) |
$ |
1,447.8 |
|
$ |
1,520.4 |
|
(4.8 |
) |
| Net Income |
$ |
316.4 |
|
$ |
315.5 |
|
0.3 |
|
$ |
813.6 |
|
$ |
808.2 |
|
0.7 |
|
| Non-GAAP Net Income 1 |
$ |
354.9 |
|
$ |
369.4 |
|
(3.9 |
) |
$ |
954.5 |
|
$ |
997.1 |
|
(4.3 |
) |
| Net Income per Diluted Share |
$ |
2.34 |
|
$ |
2.32 |
|
1.0 |
|
$ |
6.00 |
|
$ |
5.92 |
|
1.3 |
|
| Non-GAAP Net Income per Diluted Share 1 |
$ |
2.63 |
|
$ |
2.72 |
|
(3.2 |
) |
$ |
7.04 |
|
$ |
7.31 |
|
(3.6 |
) |
| Average Daily Sales 2 |
$ |
86.2 |
|
$ |
89.3 |
|
(3.5 |
) |
$ |
82.4 |
|
$ |
85.6 |
|
(3.8 |
) |
| 1 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. |
| 2 Defined as Net sales divided by the number of selling days. There were 64 and 63 selling days for the three months ended September 30, 2024 and 2023, respectively. There were 192 and 191 selling days for the nine months ended September 30, 2024 and 2023, respectively. |
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 third quarter 2024 results. CDW also announced the approval by its Board of Directors of a quarterly cash dividend of $0.625 per common share to be paid on December 10, 2024, to all stockholders of record as of the close of business on November 25, 2024. |
| "The team's value as a trusted advisor and ability to meet our customers' most pressing needs drove strong performance in cloud and end-point solutions," said Christine A. Leahy, chair and chief executive officer, of CDW. "While this performance delivered resilient margins that reinforce the integrity of our strategy, it was not enough to offset the impact of lower hardware solutions demand." |
| "Persistent economic uncertainty and growing complexity in the technology landscape resulted in elongated customer decision-making and delays in projects," said Albert J. Miralles, chief financial officer, of CDW. "Despite the challenging market, our ability to optimize cash flow generation through effective management of our working capital provides strategic flexibility across our capital priorities including M&A and share repurchases." |
| "In this evolving and dynamic business environment, our value proposition is stronger than ever as customers turn to CDW to help them address mission-critical IT and operational needs across the full IT solutions stack and lifecycle. We continue to target exceeding US IT market growth by 200 to 300 basis points on a constant currency basis. To achieve this, we remain laser-focused 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 evolves," concluded Leahy. |
| Third Quarter of 2024 Highlights: |
| Net sales in the third quarter of 2024 were $5,517 million, compared to $5,628 million in the third quarter of 2023, a decrease of 2.0 percent. There were 64 and 63 selling days for the three months ended September 30, 2024 and 2023, respectively. On an average daily sales basis, Net sales decreased 3.5 percent from the third quarter of 2023 to the third quarter of 2024. The decline in Net sales was driven by the Public and Corporate segments, partially offset by our UK and Canadian operations. Continued economic uncertainty and the complex technology landscape have led customers to be cautious and measured in their approach to technology spending, leading to a decline in Net sales. The third quarter of 2024 Net sales performance, on an average daily sales basis, included: |
- Corporate segment Net sales of $2,161 million, 4.4 percent lower than 2023.
|
- Small Business segment Net sales of $380 million, 1.2 percent lower than 2023.
|
- Public segment Net sales of $2,336 million, 5.1 percent lower than 2023. Public results were primarily driven by a decrease in Net sales to Government and Education customers of 12.3 percent and 4.5 percent, respectively, partially offset by an increase in Net sales to Healthcare customers of 3.1 percent.
|
- Net sales for CDW's UK and Canadian operations, combined as "Other" for financial reporting purposes, were $640 million, 4.8 percent higher than in 2023.
|
| Gross profit in the third quarter of 2024 was $1,201 million, compared to $1,228 million for the third quarter of 2023, representing a decrease of 2.2 percent. The gross profit margin remained consistent at 21.8 percent for both the third quarters of 2024 and 2023. |
| Selling and administrative expenses were $719 million in the third quarter of 2024, compared to $749 million in the third quarter of 2023, representing a decrease of 4.0 percent. The decrease was primarily due to lower performance-based compensation, including equity-based compensation, consistent with lower attainment against certain financial measures. |
| Operating income was $482 million in the third quarter of 2024, compared to $478 million in the third quarter of 2023, representing an increase of 0.7 percent. Non-GAAP operating income was $534 million in the third quarter of 2024, compared to $556 million in the third quarter of 2023, representing a decrease of 4.0 percent. Operating income margin and Non-GAAP operating income margin were 8.7 percent and 9.7 percent, respectively, for the third quarter of 2024 versus 8.5 percent and 9.9 percent, for the third quarter of 2023. |
| Interest expense, net includes interest expense and interest income. Interest expense, net was $54 million for the third quarter of 2024, compared to $57 million for the third quarter of 2023, representing a decrease of 5.2 percent. The decrease was primarily due to increased interest income earned on higher average cash balances, partially offset by increased interest expense on higher debt levels. |
| The effective tax rate was 26.0 percent in the third quarter of 2024, compared to 24.8 percent in the third quarter of 2023, which resulted in income tax expenses of $111 million and $104 million, respectively. The increase in the effective tax rate was primarily attributable to lower excess tax benefits on equity-based compensation. |
| Net income remained consistent at $316 million for both the third quarters of 2024 and 2023. Non-GAAP net income was $355 million in the third quarter of 2024, compared to $369 million in the third quarter of 2023, representing a decrease of 3.9 percent. |
| Weighted-average diluted shares outstanding were 135 million for the third quarter of 2024, compared to 136 million for the third quarter of 2023. Net income per diluted share for the third quarter of 2024 was $2.34, compared to $2.32 for the third quarter of 2023, representing an increase of 1.0 percent. Non-GAAP net income per diluted share for the third quarter of 2024 was $2.63, compared to $2.72 for the third quarter of 2023, representing a decrease of 3.2 percent. |
| For the full document click the link below: |
| CDW Corporation |
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