Slide 1: CDW Corporation Webcast Conference Call
CDW Corporation Webcast Conference Call May 1, 2024 CDW.com | 800.800.4239
Slide 2: Today's Agenda
Today's Agenda ▪ First Quarter 2024 Results ▪ Performance Drivers ▪ Outlook ▪ Q&A 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the futur
Slide 4: Non-GAAP Financial Measures
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 accorda
Slide 5: Financial Performance
Financial Performance ▪ Net sales of $4.9 billion – Down 4.5% on a reported basis and average daily sales ("ADS") basis – Down 4.9% on a constant currency basis* ▪ Operating income of $328 million, down 7.7% ▪ Net income of $216 million, down 6.1% ▪ Non-GAAP operating income* of $404 million, down 7
Slide 6: Net Sales By Channel
Net Sales By Channel (Unaudited) ($ in millions) Three Months Ended March 31, 2024 2023 % Change(1) Corporate $ 2,135.9 $ 2,203.7 (3.1)% Small Business 380.9 411.4 (7.4) Public Government 543.3 551.5 (1.5) Education 596.8 665.7 (10.4) Healthcare 584.6 595.6 (1.8) Total Public 1,724.7 1,812.8 (4.9) O
Slide 7: Our Three-Part Growth Strategy
Our Three-Part Growth Strategy Capture share and acquire new customers Enhance capabilities in high-growth solutions areas Expand services capabilities 7
Slide 8: Financial Results
Financial Results (Unaudited) ($ in millions) Three Months Ended March 31, 2024 2023 % Change Net sales $ 4,872.7 $ 5,103.1 (4.5)% Average daily net sales(1) $ 76.1 $ 79.7 (4.5)% Gross profit $ $ 1,063.3 1,063.3 $ 1,089.4 (2.4)% Gross profit margin 21.8 % 21.3 % Selling and administrative expenses $
Slide 9: Earnings Per Diluted Share
Earnings Per Diluted Share (Unaudited) ($ and shares in millions, except per share amounts) Three Months Ended March 31, 2024 2023 % Change US GAAP Net income $ 216.1 $ 230.1 (6.1)% Weighted-average common shares outstanding - Diluted 136.0 137.3 Net income per diluted share $ 1.59 $ 1.68 (5.2)% Non
Slide 10: Debt and Revolver Availability
Debt and Revolver Availability (Unaduited) ($ in millions) March 31, 2024 December 31, 2023 March 31, 2023 Cash and cash equivalents $ 803.8 $ 588.7 $ 279.4 Total debt 5,632.3 5,644.9 5,795.6 Net debt (total debt net of cash and cash equivalents) 4,828.5 5,056.2 5,516.2 Revolver availability 1,251.7
Slide 11: Cash Conversion Cycle
Cash Conversion Cycle (Unaudited) (Based on a rolling three-month average) March 31, 2024 December 31, 2023 March 31, 2023 Days of sales outstanding 75 77 72 Days of supply in inventory 14 13 15 Days purchases outstanding (73) (73) (69) Cash conversion cycle 16 17 18 11
Slide 12: Free Cash Flow and Adjusted Free Cash Flow
Free Cash Flow and Adjusted Free Cash Flow (Unaudited) ($ in millions) Three Months Ended March 31, 2024 2023 Net cash provided by operating activities $ 440.0 $ 365.4 Capital expenditures (29.5) (31.7) Free cash flow* 410.5 333.7 Net change in accounts payable - inventory financing (46.1) 77.6 Adju
Slide 13: 2024 Capital Allocation Priorities
2024 Capital Allocation Priorities Priorities Objectives Actions Target ~25% payout of 5% increase in November 2023 to Increase Dividends Annually Non-GAAP net income; $2.48/share annually grow in-line with earnings Target ~2.0 to 3.0 times Net Maintain Net Leverage Leverage Ratio, committed Current
Slide 14: 2024 Outlook
2024 Outlook 2024 Outlook(1),(2) Customer Spend U.S. IT growth plus ~200 to 300 bps premium Gross Profit Low-single digit growth Non-GAAP Earnings Per Low-single digit growth Diluted Share Growth (1) Certain annual outlooks are provided on a non-GAAP basis because certain reconciling items are depen
Slide 15: Modeling Thoughts for 2024
Modeling Thoughts for 2024 ▪ Gross Profit • Sequential growth in Q2 leads to low-single digit year-over-year growth • 1H/2H split is slightly more weighted to 2H than historical levels, with Q4 aligned to normal seasonality in relation to Q3 • Currency expected to be approximately neutral for full y
Slide 16: Questions and Answers
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