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CDW Reports Second Quarter 2013 Results

"Strong operating results and lower interest expense helped deliver nearly 18 percent growth in year-over-year Non-GAAP net income," said Ann E. Ziegler, CDW’s chief financial officer. "Our recent return to the public equity market raised over $400 million, which we are principally using to further reduce debt. We anticipate that strong cash flows and future refinancings will enable us to further delever our balance sheet, reducing interest expense and fueling earnings growth.”

"We intend to profitably gain share and outpace market growth in 2013 by 200-300 basis points,” continued Richards. “Our successful initial public offering and continued strong financial results are a testament to the unique value we deliver to our customers and vendor partners, our ability to execute and the strength of our business model. We remain excited by the breadth of opportunities available to us to continue to build long-term shareholder value,” concluded Richards.

Second Quarter of 2013 Highlights:

Total net sales in the second quarter of 2013 were $2.779 billion, compared to $2.585 billion in the second quarter of 2012, an increase of 7.5 percent. Average daily sales in the second quarter of 2013 were $43.4 million, compared to $40.4 million in the second quarter of 2012, representing a 7.5 percent increase. There were 64 selling days in both the second quarter of 2013 and 2012.

  • Total Corporate segment net sales in the second quarter of 2013 were $1.537 billion, 10.3 percent higher than the second quarter of 2012. Corporate average daily sales in the second quarter of 2013 were $24.0 million, compared to $21.8 million in the second quarter of 2012. Corporate results reflected strong sales to Medium and Large business customers, which more than offset a slight reduction in sales to Small business customers.
  • Total Public segment net sales in the second quarter of 2013 were $1.083 billion, 4.1 percent higher than the second quarter of 2012. Public average daily sales in the second quarter of 2013 were $16.9 million, compared to $16.3 million in the second quarter of 2012. Public results reflected strong net sales increases to Education and State and Local government customers, which offset lower sales to the Federal government.
  • Net sales for CDW’s Advanced Services business and Canadian operations, combined as “Other” for reporting purposes, rose 6.2 percent to $159.3 million in the second quarter of 2013, compared to $149.9 million in the second quarter of 2012. Average daily sales in the second quarter of 2013 were $2.5 million, compared to $2.3 million in the second quarter of 2012. CDW’s Advanced Services business consists of customized engineering services delivered by CDW professional engineers and managed services, including hosting and data center services.

Gross profit for the second quarter of 2013 was $451.6 million, compared to $426.9 million in the second quarter of 2012, representing an increase of 5.8 percent. Gross profit margin was 16.2 percent in the second quarter of 2013, versus 16.5 percent for the same period of 2012, as the impacts of lower product margin and the absence of the prior period impact of a favorable vendor audit outcome were partially offset by items accounted for as 100 percent gross margin, which include commission revenue and net service contract revenue, and a higher percentage of Advanced Services revenue.

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