CDW 2015 Annual Report Download - page 33
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Table of Contents
The results of certain key business metrics are as follows:
Years Ended December 31,
(dollars in millions) 2015
2014
2013
Net sales $ 12,988.7
$ 12,074.5
$ 10,768.6
Gross profit 2,115.8
1,921.3
1,760.3
Income from operations 742.0
673.0
508.6
Net income 403.1
244.9
132.8
Non-GAAP net income 503.5
409.9
314.3
Adjusted EBITDA 1,018.5
907.0
808.5
Average daily sales 51.1
47.5
42.4
Net debt (defined as total debt minus cash and cash equivalents) (1) 3,222.1
2,821.5
3,037.9
Cash conversion cycle (in days) (2) 21
21
23
(1) As a result of the adoption of Accounting Standards Update (ASU) 2015-03 during the second quarter of 2015, historical periods have been revised to reflect the
change in the presentation of deferred financing costs, which are now shown as a reduction of Long-term debt, instead of being presented as a separate asset on the
Consolidated Balance Sheet. In the third quarter of 2015, we adopted ASU 2015-15 which allows entities to present deferred financing costs for line-of-credit
arrangements as an asset. We retroactively adjusted the deferred financing costs and Long-term debt liability presented in historical periods to align it to the current
period presentation.
(2) 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.
Results of Operations
Year Ended December 31, 2015 Compared to Year Ended December 31, 2014
Results of operations, in dollars and as a percentage of Net sales, for the years ended December 31, 2015 and 2014 are as follows:
Years Ended December 31,
2015
2014
Dollars in
Millions
Percentage of
Net Sales (1)
Dollars in
Millions
Percentage of
Net Sales
Net sales
$ 12,988.7
100.0 %
$ 12,074.5
100.0 %
Cost of sales
10,872.9
83.7
10,153.2
84.1
Gross profit
2,115.8
16.3
1,921.3
15.9
Selling and administrative expenses
1,226.0
9.4
1,110.3
9.2
Advertising expense
147.8
1.1
138.0
1.1
Income from operations
742.0
5.7
673.0
5.6
Interest expense, net
(159.5)
(1.2)
(197.3)
(1.6)
Net loss on extinguishments of long-term debt
(24.3)
(0.2)
(90.7)
(0.8)
Gain on remeasurement of equity investment
98.1
0.8
—
—
Other (expense) income, net
(9.3)
(0.1)
2.7
—
Income before income taxes
647.0
5.0
387.7
3.2
Income tax expense
(243.9)
(1.9)
(142.8)
(1.2)
Net income
$ 403.1
3.1 %
$ 244.9
2.0 %
(1) Percentages may not total due to rounding.
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