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CDW · CDW

17 filings

10-K

CDW 10-K Annual Reports

CDW - 17 annual reports

Filing record · 2016–202610-K1110-Q338-K113

2025
CDW Annual Report, Year Ended Dec 31, 2025
CDW Corporation, a Fortune 500 company and S&P 500 member, reported 2025 Net sales of $22.42 billion, up 6.8% from $21.00 billion in 2024, with all operating segments contributing growth. Gross profit rose 5.9% to $4.87 billion, but gross profit margin declined 20 basis points to 21.7%, and selling and administrative expenses rose 9.0% to $3.22 billion, leaving Operating income nearly flat at $1.66 billion (up 0.3%). Net income was $1.07 billion, down 1.0% from $1.08 billion, and diluted EPS rose to $8.08 from $7.97. Non-GAAP net income per diluted share was $10.02, versus $9.52 in 2024. Cash generation weakened modestly, with net cash from operating activities of $1.21 billion, down from $1.28 billion, mainly due to a $1.17 billion increase in accounts receivable. Adjusted free cash flow was $1.09 billion. The company repurchased 4.0 million shares for $653 million and paid $328.6 million in dividends. Total debt was $5.6 billion at December 31, 2025, and net debt was $5.01 billion. In December 2025 CDW entered a new five-year $2.25 billion revolving loan facility and a $634.5 million term loan, and it had $1.9 billion of revolver availability at year-end. CDW also announced that, effective January 1, 2026, it will report three segments (Commercial, Government, and Education) in place of Corporate, Small Business, and Public, with historical results recast beginning with the period ending March 31, 2026. The company declared a quarterly dividend of $0.630 per share for payment on March 10, 2026.
Feb 20, 2026
2024
CDW Annual Report, Year Ended Dec 31, 2024
CDW Corporation reported 2024 Net sales of $20.99 billion, down from $21.38 billion in 2023, with a decrease primarily due to lower netcomm sales partially offset by higher notebooks/mobile devices. Gross profit was $4.60 billion (21.9% gross margin, up from 21.8%), and operating income was $1.65 billion (7.9% operating margin, flat year over year). Net income was $1.08 billion, or $7.97 per diluted share, compared with $1.10 billion and $8.10 in 2023. Management attributed the sales decline to cautious customer technology spending amid economic uncertainty. Cash flow weakened in 2024, with net cash provided by operating activities of $1.28 billion versus $1.60 billion in 2023, and adjusted free cash flow of $1.08 billion versus $1.43 billion. Total debt outstanding was $5.8 billion at year-end, and the company had $1.2 billion of availability under its Revolving Loan Facility. The company repurchased $500 million of stock during 2024, and on February 5, 2025 its Board authorized a $750 million increase to the share repurchase program and declared a quarterly dividend of $0.625 per share. The filing also discloses a Civil Investigative Demand from the US Department of Justice dated June 11, 2024, relating to a False Claims Act investigation concerning bids submitted for contracts funded through the E-Rate Program. The company states it is cooperating and cannot yet assess the probability or range of any loss. Management highlights ongoing investment in AI, cloud and security offerings, along with an ERP system implementation expected to be released in 2025.
Feb 21, 2025
2023
CDW Annual Report, Year Ended Dec 31, 2023
CDW Corporation (CDW) reported net sales of $21.38 billion for the year ended December 31, 2023, down $2.37 billion, or 10.0%, from $23.75 billion in 2022. The decline occurred across all operating segments, which the company attributes to continued economic uncertainty leading customers to reduce or delay hardware spending. Despite lower sales, gross profit was $4.65 billion, roughly flat versus $4.69 billion in 2022, and gross profit margin rose to 21.8% from 19.7%, driven by a more favorable contribution of netted-down revenue, primarily software as a service, and higher product margin. Operating income declined to $1.68 billion from $1.74 billion, while net income was $1.10 billion, compared with $1.11 billion in 2022. Diluted EPS was $8.10 versus $8.13, and non-GAAP net income per diluted share rose to $9.88 from $9.79. Cash generation and capital returns were stronger. Cash provided by operating activities rose to $1.60 billion from $1.34 billion, and adjusted free cash flow was $1.43 billion, up from $1.29 billion. The company repurchased 2.6 million shares for $500 million during 2023, prepaid $150 million of its term loan, and ended the year with $5.6 billion of total debt and $1.2 billion of available revolver capacity. Total debt maturities include $613.8 million due in 2024. The board declared a quarterly dividend of $0.62 per share in February 2024 and authorized a $750 million increase to the share repurchase program. The filing describes a diversified customer base of more than 250,000 customers across the US, UK and Canada, with the US representing approximately 90% of net sales. Public sector sales were $8.31 billion, or 38.8% of net sales. The filing also discloses a Civil Investigative Demand from the US Department of Justice dated September 20, 2021, related to a False Claims Act investigation concerning teaming agreements with OEMs, and states that the company is cooperating with the DOJ.
Feb 26, 2024
2022
CDW Annual Report, Year Ended Dec 31, 2022
CDW Corporation (CDW), a Fortune 500 company and S&P 500 member, is a multi-brand provider of IT solutions to business, government, education and healthcare customers in the US, UK and Canada. For 2022, Net sales were $23,748.7 million, up 14.1% from $20,820.8 million, with all operating segments contributing. Gross profit rose to $4,686.6 million (19.7% of Net sales, up 260 basis points), and operating income increased 22.3% to $1,735.2 million. Net income was $1,114.5 million, or $8.13 per diluted share, versus $7.04 in 2021. Non-GAAP net income per diluted share was $9.79, compared with $7.97 in 2021. Cash provided by operating activities rose to $1,335.9 million from $784.6 million, and free cash flow was $1,292.7 million, versus $476.7 million. The Corporate segment drove growth, with Net sales up 26.5% to $10,350.1 million, while Public segment Net sales rose 4.5%, led by Healthcare (up 22.7%) and Government (up 19.4%), partly offset by Education (down 11.9%). Interest expense, net increased to $235.7 million from $150.9 million, reflecting notes issued in December 2021 to fund the Sirius acquisition. Total debt outstanding was $5.9 billion at December 31, 2022, and $1.1 billion was available under the Revolving Loan Facility. The company made no share repurchases in 2022, retained $87.6 million under its program, and the Board authorized a $750 million increase to the program on February 8, 2023. The Board also declared a quarterly dividend of $0.59 per share, payable March 10, 2023. The filing highlights risks including dependence on vendor partner relationships, competition, supply chain concentration with Ingram Micro and TD SYNNEX (about one-third of US purchases), cybersecurity, public sector contract compliance, and a Civil Investigative Demand from the Department of Justice tied to a False Claims Act investigation, for which the company stated it cannot assess the probability of outcome or range of loss.
Feb 24, 2023
2021
CDW Annual Report, Year Ended Dec 31, 2021
CDW Corporation, a Fortune 500 company and S&P 500 member, is a multi-brand provider of IT solutions to business, government, education and healthcare customers in the US, UK and Canada. Net sales for 2021 were $20.82 billion, up from $18.47 billion in 2020, with growth led by the Corporate, Education and Small Business customers and the UK and Canadian operations. Gross profit rose to $3.57 billion, though gross margin declined to 17.1% from 17.4%. Operating income increased to $1.42 billion from $1.18 billion, and net income rose to $988.6 million from $788.5 million, or $7.04 per diluted share versus $5.45 in 2020. Non-GAAP net income was $1.12 billion. The company completed the approximately $2.4 billion acquisition of Sirius Computer Solutions on December 1, 2021, funded in part by $2.5 billion of senior notes. Total debt rose to $6.9 billion at year end, and cash and cash equivalents fell to $258.1 million from $1.41 billion. Operating cash flow was $784.6 million, down from $1.31 billion, largely due to higher accounts receivable. The company repurchased $1.50 billion of stock in 2021 and declared a quarterly dividend of $0.50 per share. Risks highlighted in the filing include dependence on vendor partner relationships, with Ingram Micro and TD SYNNEX together representing over 30% of US purchases, exposure to public sector spending and procurement rules, a Department of Justice Civil Investigative Demand related to a False Claims Act investigation, and the leverage created by the Sirius financing. The filing also notes ongoing COVID-19 uncertainty and LIBOR transition effects on floating-rate debt.
Feb 28, 2022
2020
CDW Annual Report, Year Ended Dec 31, 2020
CDW Corporation is a multi-brand provider of information technology solutions to business, government, education and healthcare customers in the US, UK and Canada. For 2020, Net sales rose $435 million, or 2.4%, to $18,467.5 million. Gross profit increased $170 million, or 5.6%, to $3,210.1 million, and gross margin rose 50 basis points to 17.4%. Operating income increased $46 million, or 4.0%, to $1,179.2 million, and net income was $788.5 million, compared with $736.8 million in 2019. Diluted earnings per share were $5.45, compared with $4.99. Non-GAAP operating income was $1,404.6 million, or 7.6% of Net sales. Growth was concentrated in the Public segment, where Net sales increased 18.5% to $8,137.7 million. Education customers rose 43.4%, driven by notebooks and mobile devices as schools invested in remote enablement, and Government customers rose 18.2%, driven by the Census project. Corporate Net sales fell 8.7%, Small Business fell 7.5%, Healthcare fell 12.0%, and Other, which covers the UK and Canada, fell 3.3%. The filing attributes the declines in most segments to the impact of the COVID-19 pandemic on customer demand. The balance sheet strengthened during 2020. Cash and cash equivalents rose to $1,410.2 million from $154.0 million, and total debt and finance lease obligations were $3,927.2 million. The company issued $600 million of 4.125% senior notes due 2025 and $700 million of 3.25% senior notes due 2029, and it repurchased 2.6 million shares for $341 million after suspending buybacks from March through October 2020. In February 2021 the Board declared a $0.400 quarterly dividend and authorized a $1.25 billion increase to the share repurchase program. Key risks disclosed include dependence on vendor partners, with products from Apple, Cisco, Dell EMC, HP Inc., Lenovo and Microsoft representing about 60% of 2020 consolidated Net sales, and $1.5 billion of variable rate debt.
Feb 26, 2021
2019
CDW Annual Report, Year Ended Dec 31, 2019
CDW Corporation (CDW), a Fortune 500 company and S&P 500 member, is a market-leading provider of integrated IT solutions to small, medium and large business, government, education and healthcare customers in the US, UK and Canada. For 2019 it reported Net sales of $18.03 billion, up 11.0% from $16.24 billion in 2018 (11.5% on a constant currency basis), with Gross profit of $3.04 billion (16.9% of Net sales), Operating income of $1.13 billion (6.3% margin) and Net income of $736.8 million, or $4.99 per diluted share. Non-GAAP net income was $902.1 million. Growth was broad-based across product categories, with client devices, software and services leading, and the Public segment grew 11.5%, driven by Government (up 20.1%) and Healthcare (up 11.8%). Cash generation and capital returns were solid. Operating cash flow was $1.03 billion, capital expenditures rose to $236.3 million, and the company repurchased 6.1 million shares for $657 million while paying dividends of $1.265 per share for the year. Total debt and capitalized lease obligations stood at $3.32 billion at December 31, 2019, with $1.0 billion available under the Revolving Loan. The company acquired Scalar Decisions Inc. in Canada on February 1, 2019 for a total purchase price of $88 million and Aptris Inc. in October 2019. Management's Brexit and coronavirus commentary flags possible supply chain and demand effects, and the filing identifies vendor partner concentration (Apple, Cisco, Dell EMC, HP Inc., Lenovo and Microsoft accounted for about 60% of 2019 Net sales) and leverage as key risks.
Feb 28, 2020
2018
CDW Annual Report, Year Ended Dec 31, 2018
CDW Corporation (Nasdaq: CDW) reported net sales of $16.24 billion for 2018, up 9.5% from $14.83 billion in 2017 (constant currency growth of 9.2%). Growth was driven by client device refresh and solutions demand, with the Corporate segment up 10.8%, Small Business up 11.4%, Public up 4.2%, and Other (UK and Canada) up 22.9%. Gross profit rose 10.5% to $2.71 billion, with gross margin improving 20 basis points to 16.7%. Operating income increased 13.9% to $987.3 million, and net income rose to $643.0 million from $523.1 million, or $4.19 per diluted share. Adjusted EBITDA was $1.30 billion, up 9.8%, and Non-GAAP net income was $794.3 million, up 31.1%. Cash flow from operations was $905.9 million in 2018, compared with $777.7 million in 2017. Total debt and capitalized lease obligations were $3.21 billion at year-end, and net debt was $3.00 billion. The company repurchased 6.3 million shares for $522 million during 2018 and paid dividends of $0.925 per share for the year. In February 2019 the Board declared a $0.295 quarterly dividend and authorized a $1.0 billion increase to the share repurchase program. The company also completed the acquisition of Scalar Decisions Inc. on February 1, 2019. The filing highlights ongoing risks, including Brexit uncertainty affecting the UK business, dependence on vendor partner relationships and programs, public sector spending and procurement rules, and substantial indebtedness with $1.5 billion of variable rate debt outstanding. Management noted that the company had 9,019 coworkers at year-end 2018 and that its three largest wholesale distributors (Ingram Micro, SYNNEX and Tech Data) were each about 10% of US purchases.
Feb 27, 2019
2017
CDW Annual Report, Year Ended Dec 31, 2017
CDW Corporation (together with its subsidiaries, the "Company," "CDW" or "we") is a Fortune 500 provider of integrated IT solutions to small, medium and large business, government, education and healthcare customers in the United States, Canada and the United Kingdom. In 2017 the Company reported Net sales of $15.19 billion, up 8.7% from $13.98 billion in 2016, with growth in all customer markets except Healthcare. Gross profit rose to $2.45 billion, but gross profit as a percentage of Net sales declined to 16.1% from 16.6%, driven by a mix shift toward lower-margin hardware. Income from operations was $866.1 million, up from $819.2 million, and net income was $523.0 million, or $3.31 diluted per share, compared with $424.4 million in 2016. The 2017 tax line benefited from the Tax Cuts and Jobs Act, with income tax expense of $137.3 million and an effective rate of 20.8%. Cash flow and capital return were strong. Net cash provided by operating activities was $777.7 million, up from $604.0 million. During 2017 the Company repurchased 9 million shares for $534 million and paid $106.9 million in dividends, and $858 million remained under the share repurchase program at year-end. Total debt and capitalized lease obligations were $3.24 billion, and the Company reported $144.2 million of cash, with a $996 million borrowing availability under its Revolving Loan after borrowing base limitations. Adjusted EBITDA, a non-GAAP measure defined in the Company's credit agreements, was $1.19 billion, and Non-GAAP net income was $605.8 million. Risk factors highlighted by the filing include reliance on vendor partner relationships (sales of products from Cisco and HP Inc. represented over 25% of 2017 consolidated Net sales), substantial indebtedness, exposure to public sector spending and procurement rules, and competition from resellers, manufacturers, cloud providers and e-tailers. The Company also disclosed that the SEC concluded its investigation of its vendor partner program incentives in May 2017 without recommending enforcement action.
Mar 1, 2018
2016
CDW Annual Report, Year Ended Dec 31, 2016
CDW Corporation reported 2016 Net sales of $13.98 billion, up 7.6% from $12.99 billion in 2015, or 8.3% on a constant currency basis. The increase reflected organic growth and seven additional months of incremental CDW UK sales, which were acquired on August 1, 2015. Income from operations rose 10.4% to $819.2 million, with operating margin up 20 basis points to 5.9%. Net income increased 5.3% to $424.4 million, and diluted EPS was $2.56. Non-GAAP net income rose 13.0% to $569.0 million, and Adjusted EBITDA rose 9.7% to $1.12 billion. Cash flow from operations was $604.0 million in 2016, compared with $277.5 million in 2015. The company repurchased $367.4 million of common stock during 2016 and paid dividends of $78.7 million. Total long-term debt was $3.2 billion at year-end, and the Revolving Loan had $716 million of availability. On February 7, 2017, the board declared a quarterly dividend of $0.16 per share. The company also announced a $600 million offering of 5.0% Senior Notes due 2025, which will be used to redeem the 6.0% Senior Notes due 2022. The filing states that the SEC is investigating the company's vendor partner program incentives, and that the company does not believe there is a reasonable possibility of a material loss exceeding amounts already recognized. The company identifies heavy reliance on vendor partners. Products from Apple, Cisco, Dell, EMC, Hewlett Packard Enterprise, HP Inc., Lenovo and Microsoft represented nearly 60% of 2016 consolidated Net sales. Effective January 1, 2017, the company established Small Business as a separate reportable segment.
Mar 1, 2017
2015
CDW Annual Report, Year Ended Dec 31, 2015
CDW Corporation (CDW) reported net sales of $12.99 billion for 2015, up 7.6% from $12.07 billion in 2014, and net income of $403.1 million, up from $244.9 million. The increase reflected organic net sales growth of 4.7% and the consolidation of five months of Kelway's results following the August 1, 2015 acquisition of the remaining 65% of Kelway TopCo Limited. Gross profit rose to $2.12 billion, with gross margin improving to 16.3% from 15.9%, and income from operations rose 10.3% to $742.0 million. Adjusted EBITDA was $1,018.5 million, up 12.3%, which the filing identifies as the primary measure used in the Term Loan's covenants. Balance-sheet leverage remains significant. Total long-term debt was $3.26 billion at year-end 2015, and the filing states a total net leverage ratio of 3.0. Cash fell to $37.6 million from $344.5 million, reflecting the Kelway acquisition, $241.3 million of share repurchases, and $52.9 million of dividends. The company declared a quarterly dividend of $0.1075 per share, or $0.43 annualized, and the filing notes that future payments remain at board discretion and are constrained by debt covenants and a deferred cancellation of debt income tax position. The filing also discloses that the SEC is investigating CDW's vendor partner program incentives, and CDW reports it has produced documents and is cooperating. Management does not believe a material loss beyond amounts already recognized is reasonably possible. Concentration is a notable risk: sales of products from Apple, Cisco, EMC, HP Inc., Hewlett Packard Enterprise, Lenovo and Microsoft together represented 56% of 2015 net sales, and the company has no long-term contracts with its vendor partners.
Feb 25, 2016
2014
CDW Annual Report, Year Ended Dec 31, 2014
CDW Corporation's 2014 Form 10-K reports net sales of $12,074.5 million, up $1,305.9 million, or 12.1%, from $10,768.6 million in 2013, driven by client device refresh and K-12 digital testing demand. Gross profit rose to $1,921.3 million, though gross margin declined to 15.9% from 16.3%. Income from operations increased 32.3% to $673.0 million, and net income more than doubled from $132.8 million to $244.9 million, helped by the absence of roughly $75.0 million in 2013 IPO-related expenses. Adjusted EBITDA reached $907.0 million, up 12.2%, and Non-GAAP net income rose 30.4% to $409.9 million. The company ended 2014 with $344.5 million of cash and $3,190.0 million of long-term debt, and it used 2014 to refinance higher-cost notes, including issuing $600.0 million of 6.0% Senior Notes due 2022 and $575.0 million of 5.5% Senior Notes due 2024. The Revolving Loan was upsized to $1,250.0 million, with $935.6 million available for additional borrowing at year-end. Net cash from operating activities was $435.0 million, and the company declared a $0.0675 quarterly dividend in February 2015 and authorized a $500 million share repurchase program, under which no shares had been repurchased as of the filing date. Investors should weigh the company's concentration risks: the federal government accounted for about 7% of 2014 net sales, and products from Apple, Cisco, EMC, Hewlett-Packard, Lenovo and Microsoft made up about 54% of net sales. The Sponsors, Madison Dearborn and Providence Equity, still held 15.5% and 13.7% of common stock, and the company disclosed a deferred cancellation of debt income tax liability that accelerates upon certain distributions.
Feb 26, 2015
2013
CDW Annual Report, Year Ended Dec 31, 2013
CDW Corporation (NASDAQ: CDW) reported 2013 net sales of $10,768.6 million, up $640.4 million, or 6.3%, from $10,128.2 million in 2012. Gross profit rose to $1,760.3 million, though gross margin slipped to 16.3% from 16.5%. Income from operations was $508.6 million, roughly flat versus $510.6 million, as the company absorbed $75.0 million of IPO- and secondary-offering related expenses. Net income increased to $132.8 million from $119.0 million, and diluted EPS was $0.84. Adjusted EBITDA rose 5.5% to $808.5 million, and Non-GAAP net income rose 27.2% to $314.3 million. The company completed its IPO on July 2, 2013 at $17.00 per share, generating net proceeds of $424.7 million, which were used largely to pay down debt. Long-term debt fell to $3,251.2 million from $3,771.0 million, and shareholders' equity increased to $711.7 million from $136.5 million. Sponsors Madison Dearborn and Providence Equity still beneficially owned approximately 63.7% of common stock. The company declared a quarterly dividend of $0.0425 per share, or $0.17 per year. Government sales declined 10.3% in 2013 due to sequestration and a 16-day partial federal shutdown, while education sales grew 21.5%. Key risks highlighted in the filing include dependence on vendor partners (no long-term contracts), concentration in products from Apple, Cisco, EMC, Hewlett-Packard, Lenovo and Microsoft (about 56% of 2013 net sales), a substantial debt load with restrictive covenants, and approximately $395.5 million of deferred cancellation of debt income that could become taxable if an impairment transaction occurs before 2018.
Mar 5, 2014
2012-A
CDW Annual Report (Amendment), Year Ended Dec 31, 2012
CDW Corporation's Form 10-K/A (Amendment No. 1) for the fiscal year ended December 31, 2012 reports net sales of $10.13 billion, up 5.5% from $9.60 billion in 2011, with net income of $119.0 million versus $17.1 million the prior year. Gross profit rose to $1.67 billion (16.5% of net sales in both years), and income from operations increased to $510.6 million from $470.7 million. Adjusted EBITDA, the measure used in the company's credit agreements, was $766.6 million, up from $717.3 million. The company is privately held: CDW Holdings LLC owns all outstanding common stock, controlled by Madison Dearborn and Providence Equity affiliates, and there is no public trading market. The filing states that no dividends were paid in 2012 or 2011. Leverage remains the central investor consideration. Total long-term debt was $3.77 billion at year-end 2012, with $249.2 million of inventory financing obligations and $622.4 million of available borrowings under the $900 million Revolving Loan. The filing describes several subsequent refinancing and repayment actions in 2013, including a new $1,350.0 million term loan facility entered April 29, 2013, and a conditional notice to redeem $175.0 million of Senior Secured Notes tied to a proposed initial public offering. The company also disclosed significant deferred cancellation of debt income that will become taxable beginning in 2014, and a 110% test that could accelerate tax payments if dividends or distributions are made. The filing notes that the Form 10-K/A was signed on November 8, 2013, and that the board approved a reclassification of Class A and Class B shares into a single class and a 143.0299613-for-1 stock split in June 2013, with per-share amounts restated accordingly. Concentration is a notable feature: sales of products from Hewlett-Packard and Cisco were 21% and 13% of 2012 net sales, and federal government sales were approximately 10%.
Nov 8, 2013
2012
CDW Annual Report, Year Ended Dec 31, 2012
CDW Corporation, a Fortune 500 provider of integrated IT solutions in the U.S. and Canada, reported 2012 net sales of $10,128.2 million, up 5.5% from $9,602.4 million in 2011, with income from operations of $510.6 million (up 8.5%) and net income of $119.0 million, compared with $17.1 million in 2011. Adjusted EBITDA rose 6.9% to $766.6 million. Gross profit was flat as a percentage of sales at 16.5%, and the company cited more cautious customer spending beginning in the second quarter of 2012 and an expectation that this would continue into 2013. The balance sheet remains highly leveraged. Total long-term debt was $3,771.0 million at December 31, 2012, down from $4,066.0 million a year earlier, and net debt declined $233.0 million to $3,733.1 million. The company had $1,339.5 million of variable rate debt, a senior secured leverage ratio of 2.4, and could borrow up to an additional $622.4 million under its Revolving Loan. Shareholders' equity turned positive at $136.5 million from a deficit of $7.3 million. The company paid no dividends in 2012 or 2011, and its equity is privately held by CDW Holdings LLC, controlled by Madison Dearborn Partners and Providence Equity Partners, so there is no public trading market for its stock. Key risks disclosed include dependence on vendor partners with no long-term contracts, concentration in products from Hewlett-Packard (21% of 2012 net sales) and Cisco (13%), exposure to government spending (federal sales about 10% of net sales), and the restrictive covenants and debt service obligations that come with the company's leverage. Subsequent to year end, CDW made a $40.0 million optional prepayment on its term loan and called $50.0 million of senior subordinated notes for redemption.
Mar 8, 2013
2011
CDW Annual Report, Year Ended Dec 31, 2011
CDW Corporation is a multi-brand technology solutions provider serving business, government, education and healthcare customers in the U.S. and Canada. For 2011, net sales rose 9.1% to $9,602.4 million, gross profit increased 14.1% to $1,587.4 million, and income from operations increased 33.5% to $470.7 million. Net income was $17.1 million, compared with a net loss of $29.2 million in 2010, and Adjusted EBITDA was $717.3 million, up 19.2%. The company is privately held: its common stock is owned by CDW Holdings LLC, controlled by Madison Dearborn Partners and Providence Equity Partners, and there is no public trading market for its equity. The balance sheet remains highly leveraged. Total long-term debt was $4,066.0 million at December 31, 2011, with $278.7 million of obligations under inventory financing agreements and $679.3 million of additional availability under the $900.0 million Revolving Loan. Shareholders' deficit was $(7.3) million. During 2011 the company refinanced its capital structure, issuing $1,175.0 million of 8.5% Senior Notes due 2019 and tendering for most of its 11.0% Senior Exchange Notes due 2015. Net interest expense fell to $324.2 million from $391.9 million, but a $118.9 million net loss on debt extinguishments reduced pre-tax income to $28.3 million. The filing also covers subsequent events in early 2012: a tender offer for the remaining $129.0 million of 2015 Senior Notes, in which $120.6 million was accepted, and $130.0 million of additional 2019 Senior Notes issued at 104.375% of par. Optional prepayments of $180.0 million were made on the Term Loan, and a mandatory excess cash flow prepayment of about $201.0 million was estimated for 2012. Management expects a loss on extinguishment of approximately $9 million in the first quarter of 2012.
Mar 9, 2012
2010
CDW Annual Report, Year Ended Dec 31, 2010
CDW Corporation's 10-K for fiscal 2010 shows net sales rising 22.9% to $8,801.2 million, with a Corporate segment up 26.6% to $4,833.6 million and a Public segment up 17.3% to $3,560.6 million. Gross profit reached $1,390.8 million, with gross margin flat at 15.8%. Operating income swung to $352.7 million from a loss of $31.9 million in 2009, which included a $241.8 million goodwill impairment. The company still posted a net loss of $29.2 million, driven by $391.9 million of net interest expense. Adjusted EBITDA, the measure used in its credit agreements, rose 29.3% to $601.8 million. The balance sheet remains highly leveraged. Total long-term debt was $4,289.1 million at year-end, and shareholders' deficit was $(43.5) million. During 2010 the company issued $500.0 million of 8.0% Senior Secured Notes due 2018 and used the proceeds to repay $500.0 million of its term loan. Operating cash flow improved to $426.9 million from $98.5 million, largely from working capital changes. The company reported a senior secured leverage ratio of 3.9 against a covenant maximum of 8.00. Because the equity is privately held, there is no public trading market for the common stock, and no dividends were paid in 2009 or 2010. Subsequent to year-end, CDW announced a cash tender offer for its $1,207.0 million of Senior Unsecured Debt, seeking consents to remove most restrictive covenants. It also announced plans to reprice the $1,146.1 million Extended Term Loan. The filing notes that the company expects roughly $54 million in income tax refunds in 2011 and a mandatory term-loan prepayment of about $132.0 million tied to 2010 excess cash flow.
Mar 4, 2011