Slide 1: CDW Corporation Webcast Conference Call
CDW Corporation Webcast Conference Call February 5, 2025
Slide 2: Today's Agenda
Fourth Quarter and Full Year 2024 Results Performance Drivers Today's Agenda 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 Fourth Quarter: Full Year: • Net sales of $5.2 billion • Net sales of $21.0 billion • Up 3.3% on a reported basis • Down 1.8% on a reported basis and ADS basis • Up 5.0% on an average daily sales ("ADS") basis • Down 1.9% on a constant currency basis* • Up 4.9% on a constant cu
Slide 6: Net Sales By Channel
Net Sales By Channel ($ in millions) Three Months Ended December 31, Year Ended December 31, Average Daily 2024 2023 % Change(1) % Change(1) 2024 2023 % Change(1) Corporate $ 2,344.9 $ 2,285.6 2.6 % 4.2 % $ 8,837.2 $ 8,960.8 (1.4)% Small Business 380.0 370.0 2.7 4.4 1,523.5 1,556.0 (2.1) Public Gove
Slide 7: Q4 2024 Financial Results
Q4 2024 Financial Results ($ in millions) Three Months Ended December 31, 2024 2023 % Change Net sales $ 5,186.0 $ 5,018.5 3.3 % Average daily net sales(1) $ 83.6 $ 79.7 5.0 Gross profit $ 1,155.3 $ 1,153.8 0.1 Gross profit margin 22.3 % 23.0 % Selling and administrative expenses $ 746.7 $ 718.8 3.9
Slide 8: Q4 2024 Earnings Per Diluted Share
Q4 2024 Earnings Per Diluted Share ($ in millions, except per share amounts) Three Months Ended December 31, 2024 2023 % Change US GAAP Net income $ 264.2 $ 296.1 (10.8)% Weighted-average common shares outstanding - Diluted 134.4 135.9 Net income per diluted share $ 1.97 $ 2.18 (9.8)% Non-GAAP net i
Slide 9: Full Year Financial Results
Full Year Financial Results ($ in millions) Year Ended December 31, 2024 2023 % Change Net sales $ 20,998.7 $ 21,376.0 (1.8)% Average daily net sales(1) $ 82.7 $ 84.2 (1.8) Gross profit $ 4,602.4 $ 4,652.4 (1.1) Gross profit margin 21.9 % 21.8 % Selling and administrative expenses $ 2,951.1 $ 2,971.
Slide 10: Full Year Earnings Per Diluted Share
Full Year Earnings Per Diluted Share ($ in millions, except per share amounts) Year Ended December 31, 2024 2023 % Change US GAAP Net income $ 1,077.8 $ 1,104.3 (2.4)% Weighted-average common shares outstanding - Diluted 135.2 136.3 Net income per diluted share $ 7.97 $ 8.10 (1.6)% Non-GAAP net inco
Slide 11: Debt and Revolver Availability
Debt and Revolver Availability ($ in millions) December 31, 2024 December 31, 2023 Cash and cash equivalents $ 503.5 $ 588.7 Short-term investments 214.2 — Total debt 5,842.8 5,644.9 Net debt* 5,125.1 5,056.2 Revolver availability 1,244.1 1,208.1 Cash plus revolver availability 1,747.6 1,796.8 * Def
Slide 12: Cash Conversion Cycle
Cash Conversion Cycle (Based on a rolling three-month average) December 31, 2024 December 31, 2023 Days of sales outstanding 84 77 Days of supply in inventory 13 13 Days purchases outstanding (79) (73) Cash conversion cycle 18 17 12
Slide 13: Free Cash Flow and Adjusted Free Cash Flow
Free Cash Flow and Adjusted Free Cash Flow ($ in millions) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net cash provided by operating activities $ 345.3 $ 536.5 $ 1,277.3 $ 1,598.7 Capital expenditures (28.6) (33.5) (122.6) (148.2) Free cash flow* 316.7 503.0 1,154.7
Slide 14: 2025 Capital Allocation Priorities
2025 Capital Allocation Priorities PRIORITIES OBJECTIVES ACTIONS Target ~25% payout of Non-GAAP net ~1% increase in November 2024 Increase Dividend annually income; grow in-line with earnings to $2.50/share annually Target ~2.0 to 3.0 times Net Leverage Ratio; (1) Maintain Net Leverage Ratio consist
Slide 15: Outlook
• CUSTOMER SPEND U.S. IT growth plus a premium target of ~200 to 300 bps 2025 (1),(2) • GROSS PROFIT Low-single digit growth Outlook • NON-GAAP EARNINGS PER DILUTED SHARE Low-single digit growth 1. Certain annual outlooks are provided on a non-GAAP basis because certain reconciling items are depende
Slide 16: Modeling Thoughts
Modeling Thoughts Metric Expectations • Seasonal mid-single digit sequential declines in Q1 lead to low single-digit year-over-year growth Gross profit • 1H slightly lower than 2H, in-line with historical splits (48% / 52% respectively) • Currency expected to be slight headwind to growth throughout
Slide 17: Questions and Answers
Questions and Answers ————————