CDW 2014 Annual Report Download - page 39

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Table of Contents
The results of certain key business metrics are as follows:
Results of Operations
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013
The following table presents our results of operations, in dollars and as a percentage of net sales, for the years ended December 31,
2014 and 2013 :
35
(dollars in millions) Years Ended December 31,
2014
2013
2012
Net sales
$
12,074.5
$
10,768.6
$
10,128.2
Gross profit
1,921.3
1,760.3
1,669.6
Income from operations
673.0
508.6
510.6
Net income
244.9
132.8
119.0
Non-GAAP net income
409.9
314.3
247.1
Adjusted EBITDA
907.0
808.5
766.6
Average daily sales
47.5
42.4
39.9
Net debt (defined as total debt minus cash and cash equivalents)
2,845.5
3,063.1
3,733.1
Cash conversion cycle (in days)
(1)
21
23
24
(1) Cash conversion cycle is defined as days of sales outstanding in accounts receivable plus days of supply in inventory minus days of
purchases outstanding in accounts payable, based on a rolling three-month average. The prior periods have been revised to conform to
the current definition.
Year Ended December 31, 2014
Year Ended December 31, 2013
Dollars in
Millions
Percentage of
Net Sales
Dollars in
Millions
Percentage of
Net Sales
Net sales
$
12,074.5
100.0
%
$
10,768.6
100.0
%
Cost of sales
10,153.2
84.1
9,008.3
83.7
Gross profit
1,921.3
15.9
1,760.3
16.3
Selling and administrative expenses
1,110.3
9.2
1,120.9
10.4
Advertising expense
138.0
1.1
130.8
1.2
Income from operations
673.0
5.6
508.6
4.7
Interest expense, net
(197.3
)
(1.6
)
(250.1
)
(2.3
)
Net loss on extinguishments of long-term debt
(90.7
)
(0.8
)
(64.0
)
(0.6
)
Other income, net
2.7
—
1.0
—
Income before income taxes
387.7
3.2
195.5
1.8
Income tax expense
(142.8
)
(1.2
)
(62.7
)
(0.6
)
Net income
$
244.9
2.0
%
$
132.8
1.2
%