Exhibit 99
CDW Reports Full Year and Fourth Quarter Results
Company Achieves Record Annual Sales and Earnings per Share
VERNON HILLS, Ill.--(BUSINESS WIRE)--Jan. 26, 2007--CDW
Corporation (NASDAQ: CDWC):
Full year 2006 highlights:
-- Sales: $6.785 billion, up 7.8% year-over-year
-- Average daily sales: $26.714 million, up 8.3% year-over-year
-- Gross profit: $1.070 billion, up 10.6% year-over-year
-- Diluted earnings per share: $3.30, up 1.2% year-over-year
(includes litigation settlement)
-- Non-GAAP diluted earnings per share: $3.49, up 7.1%
year-over-year
Fourth quarter of 2006 highlights:
-- Sales: $1.824 billion, up 13.5% year-over-year
-- Average daily sales: $28.951 million, up 13.5% year-over-year
-- Gross profit: $284.0 million, up 14.2% year-over-year
-- Diluted earnings per share: $0.67, down 22.1% year-over-year
(includes litigation settlement)
-- Non-GAAP diluted earnings per share: $0.86, flat
year-over-year
CDW Corporation (NASDAQ: CDWC) a leading provider of technology
products and services to business, government and education, today
announced record quarterly sales and gross profit in the fourth
quarter of 2006 and record annual sales, gross profit and diluted
earnings per share in 2006.
"In 2006, we expanded our platform for growth, which resulted in a
challenging and productive year for us. As we drove to implement
change across several areas of our business, we still delivered record
sales and diluted earnings per share," said John A. Edwardson,
chairman and chief executive officer. "Key accomplishments for the
year included the geographic alignment of medium and large customer
accounts in the corporate sector, the acquisition of Berbee
Information Networks, double-digit sales growth in our public sector
segment and investment in our infrastructure to increase capacity for
future growth. As we enter 2007, we will focus on leveraging our
enhanced infrastructure and increasing our ability to profitably
outpace market growth."
"Central to our growth strategy is continuing to improve our
unmatched service to customers. We are very pleased with the addition
of Berbee, which has significantly increased our ability to offer
customers a single source for their core technology needs and more
advanced IT services and solutions. We are excited about the
opportunity to scale Berbee's business processes to generate
additional growth," said Edwardson.
Fourth Quarter of 2006:
Total sales in the fourth quarter of 2006 were $1.824 billion
compared to $1.607 billion in the fourth quarter of 2005, an increase
of 13.5 percent. Average daily sales in the fourth quarter of 2006
were $28.951 million compared to $25.507 million in the fourth quarter
of 2005, representing a 13.5 percent increase. There were 63 billing
days in both the fourth quarter of 2006 and the fourth quarter of
2005.
As previously announced, CDW completed the acquisition of Berbee
Information Networks Corporation on October 11, 2006. Total sales for
the fourth quarter of 2005 do not include Berbee sales, while the
fourth quarter of 2006 sales include Berbee sales from the date of the
acquisition through the end of the year. Excluding Berbee sales in the
fourth quarter of 2006, and therefore on a non-GAAP basis, total sales
were $1.715 billion, an increase of 6.7 percent compared to total
sales of $1.607 billion for the fourth quarter of 2005. Excluding
Berbee sales in the fourth quarter of 2006, and therefore on a
non-GAAP basis, CDW's average daily sales for the fourth quarter of
2006 were $27.221 million, an increase of 6.7 percent compared to
average daily sales for the fourth quarter of 2005 of $25.507 million.
-- Total corporate sector segment sales in the fourth quarter of
2006 were $1.164 billion compared to $1.129 billion in the
fourth quarter of 2005, representing an increase of 3.0
percent. Fourth quarter of 2006 average daily sales for the
corporate sector segment were $18.471 million compared to
$17.925 million in the fourth quarter of 2005, representing an
increase of 3.0 percent.
-- Total public sector segment sales in the fourth quarter of
2006 were $551.3 million compared to $477.7 million in the
fourth quarter of 2005, representing an increase of 15.4
percent. Fourth quarter of 2006 average daily sales for the
public sector segment were $8.750 million compared to $7.583
million in the fourth quarter of 2005, representing an
increase of 15.4 percent.
-- Product categories that achieved the strongest year-over-year
unit volume growth for the fourth quarter of 2006 excluding
Berbee were notebook computers, data storage, software, video,
memory and input devices.
-- Direct web sales in the fourth quarter of 2006 were $491.2
million, representing an 8.0 percent increase compared to the
prior year, and comprised 28.6 percent of total sales
excluding Berbee and therefore on a non-GAAP basis. Berbee's
sales are not made on the web due to the higher services
component of the sales.
-- Total sales in December 2006 were $619.6 million compared to
$560.8 million in December 2005, representing a 10.5 percent
increase. Average daily sales in December 2006 were $30.982
million compared to $26.703 million in the prior year period,
representing a 16.0 percent increase. December 2006 had 20
billing days and December 2005 had 21 billing days.
-- Total sales for December 2005 do not include Berbee sales,
while December 2006 sales include Berbee sales. Excluding
Berbee sales in December 2006, and therefore on a non-GAAP
basis, total sales in December 2006 were $570.7 million
compared to $560.8 million in December 2005, representing a
1.8 percent increase. Excluding Berbee sales in December 2006,
and therefore on a non-GAAP basis, average daily sales in
December 2006 were $28.534 million compared to $26.703 million
in the prior year period, representing a 6.9 percent increase.
-- In December 2006, average daily sales for the public sector
segment increased 12.4 percent and average daily sales for the
corporate sector segment increased 4.6 percent compared to the
prior year period.
Gross profit for the fourth quarter of 2006 was $284.0 million
compared to $248.8 million in the fourth quarter of 2005, and
increased $35.3 million. Gross profit margin was 15.6 percent in the
fourth quarter of 2006 compared to 15.5 percent in the same period of
2005. The increase was primarily due to the inclusion of Berbee from
the date of acquisition through the end of the year, partially offset
by lower product margin.
Selling and administrative expenses as a percentage of sales were
8.1 percent in the fourth quarter of 2006 compared to 7.0 percent in
the fourth quarter of 2005, and increased $34.5 million. The increase
in selling and administrative expenses in the fourth quarter of 2006
was primarily due to:
-- The inclusion of Berbee's operating expenses from the date of
acquisition through the end of the year increased operating
expenses by $18.5 million.
-- Incremental costs of $2.9 million associated with the
operations of the company's new distribution center in North
Las Vegas, Nevada, and additional leased office space in
Chicago and Vernon Hills, Illinois. As previously announced,
these infrastructure investments are being made to position
the company for future growth.
-- Stock-based compensation expense of $3.8 million due to the
required implementation of the Financial Accounting Standards
Board's Statement of Financial Accounting Standards No. 123R
("SFAS 123R") relating to stock options as of January 1, 2006,
as previously announced.
-- Increased payroll and benefits costs as a result of continued
investment in expanding CDW's sales force and additional
coworkers to support a larger and growing business.
-- Items included in the fourth quarter of 2005 that were
previously announced and did not repeat in the fourth quarter
of 2006 were a reversal of $5.3 million for an accrual of a
company-wide incentive bonus program based on a partial
achievement of specific financial objectives for 2005 and a
$3.7 million charge in connection with the acceleration of
vesting of options for coworkers through the manager level on
December 31, 2005.
In the fourth quarter of 2006, CDW recorded a one-time expense of
$25.0 million pre-tax ($15.4 million after-tax), in connection with
the negotiated settlement of the previously disclosed litigation
involving the Company's 2003 purchase of selected assets of Micro
Warehouse ("litigation settlement"). The litigation settlement is
subject to execution of a definitive agreement and court approval. See
supplemental table at the end of the press release for GAAP to
non-GAAP financial measures.
Operating margin was 4.5 percent in the fourth quarter of 2006
compared to 6.7 percent in the fourth quarter of 2005. Operating
income was $82.8 million in the fourth quarter of 2006 compared to
$107.0 million in the fourth quarter of 2005. Operating income for the
fourth quarter of 2006 included the litigation settlement of $25.0
million pre-tax ($15.4 million after-tax). Non-GAAP operating margin
based on non-GAAP operating income of $107.8 million, which excludes
the litigation settlement, was 5.9 percent in the fourth quarter of
2006 compared to 6.7 percent in the fourth quarter of 2005. The
non-GAAP operating margin information is being presented to provide
meaningful comparisons to prior periods.
Interest income was $3.9 million for the fourth quarter of 2006, a
decrease of $0.4 million compared to the same period of 2005. The
decrease was a result of lower cash and investment balances due to the
purchase of Berbee. The effective tax rate for the fourth quarter of
2006 was 38.0 percent compared to 36.3 percent for the fourth quarter
of 2005. The difference was primarily due to the inclusion of Berbee
in the calculation of the tax provision in the fourth quarter of 2006.
Net income was $53.6 million in the fourth quarter of 2006
compared to $70.5 million in the fourth quarter of 2005, a decrease of
$17.0 million. Net income in the fourth quarter of 2006 included the
impact of SFAS 123R, the litigation settlement of $25.0 million
pre-tax ($15.4 million after-tax) and an increase in the effective tax
rate.
Non-GAAP net income, which excludes the litigation settlement of
$25.0 million pre-tax ($15.4 million after-tax), was $69.0 million in
the fourth quarter of 2006 compared to $70.5 million in the fourth
quarter of 2005, a decrease of $1.6 million. The non-GAAP net income
information is being presented to provide meaningful comparisons to
prior periods.
Diluted earnings per share were $0.67 in the fourth quarter of
2006 compared to diluted earnings per share of $0.86 in the fourth
quarter of 2005. Results for the fourth quarter of 2006 included
stock-based compensation expense of $3.8 million pre-tax ($2.4 million
after-tax) due to the implementation of SFAS 123R or approximately
$0.03 per diluted share, the litigation settlement of $25.0 million
pre-tax ($15.4 million after-tax) or approximately $0.19 per diluted
share and approximately $0.02 per diluted share from a higher
effective tax rate.
Non-GAAP diluted earnings per share based on non-GAAP net income
of $69.0 million, which excludes the litigation settlement of $25.0
million pre-tax ($15.4 million after-tax), were $0.86 in the fourth
quarter of 2006 compared to $0.86 in the fourth quarter of 2005. The
non-GAAP diluted earnings per share information is being presented to
provide meaningful comparisons to prior periods.
During the fourth quarter of 2006, CDW did not repurchase shares
of common stock.
Full Year 2006:
Total sales for 2006 were $6.785 billion compared to $6.292
billion in 2005, an increase of 7.8 percent. Average daily sales for
2006 were $26.714 million compared to $24.674 million in 2005,
representing an 8.3 percent increase. There were 254 billing days in
2006 and 255 billing days in 2005.
Total sales for 2005 do not include Berbee sales, while 2006 sales
include Berbee sales from the date of acquisition through the end of
the year. Excluding Berbee sales in 2006, and therefore on a non-GAAP
basis, total sales were $6.676 billion, an increase of 6.1 percent
compared to total sales of $6.292 billion for 2005. Excluding Berbee
sales in 2006, and therefore on a non-GAAP basis, CDW's average daily
sales for 2006 were $26.285 million, an increase of 6.5 percent
compared to average daily sales for 2005 of $24.674 million.
-- Total corporate sector segment sales in 2006 were $4.514
billion compared to $4.411 billion in 2005, representing an
increase of 2.3 percent. Average daily sales for the corporate
sector segment in 2006 were $17.772 million compared to
$17.297 million in 2005, representing an increase of 2.7
percent.
-- Total public sector segment sales in 2006 were $2.162 billion
compared to $1.881 billion in 2005, representing an increase
of 15.0 percent. Average daily sales for the public sector
segment in 2006 were $8.513 million compared to $7.377 million
in 2005, representing an increase of 15.4 percent.
-- Product categories that achieved the strongest year-over-year
unit volume growth in 2006 excluding Berbee were notebook
computers, software, video, memory and input devices.
-- Direct web sales in 2006 were $1.982 billion, representing a
12.0 percent increase compared to the prior year, and
comprised 29.7 percent of total sales excluding Berbee and
therefore on a non-GAAP basis.
Gross profit for 2006 was $1.070 billion compared to $967.6
million in 2005, and increased $102.2 million. Gross profit margin was
15.8 percent in 2006 compared to 15.4 percent in 2005. The increase
was primarily due to increased product margin, net service contract
revenue and commission revenue and a higher level of vendor
incentives.
Selling and administrative expenses as a percentage of sales were
7.8 percent in 2006 compared to 6.9 percent in 2005, and increased
$96.6 million. The increase in selling and administrative expenses in
2006 was primarily due to:
-- The inclusion of Berbee's operating expenses from the date of
acquisition through the end of the year increased operating
expenses by $18.5 million.
-- Incremental costs of $19.3 million associated with the
operations of the company's new distribution center in North
Las Vegas, Nevada, and additional leased office space in
Chicago and Vernon Hills, Illinois. As previously announced,
these infrastructure investments are being made to position
the company for future growth.
-- Stock-based compensation expense of $15.8 million due to the
required implementation of SFAS 123R, as previously announced.
-- Increased sales commission expense due to the achievement of a
stronger gross profit margin compared to the prior year .
-- Increased payroll and benefits costs as a result of continued
investment in expanding CDW's sales force and additional
coworkers to support a larger and growing business.
Operating margin was 5.8 percent in 2006 compared to 6.7 percent
in 2005. Operating income was $396.4 million in 2006 compared to
$419.6 million in 2005. Operating income in 2006 included the
litigation settlement of $25.0 million pre-tax ($15.4 million
after-tax). Non-GAAP operating margin based on non-GAAP operating
income of $421.4 million, which excludes the litigation settlement,
was 6.2 percent in 2006 compared to 6.7 percent in 2005. The non-GAAP
operating margin information is being presented to provide meaningful
comparisons to prior periods.
Interest income was $19.8 million for 2006, an increase of $4.6
million compared to 2005. The increase was primarily due to higher
interest rates. The effective tax rate for 2006 was 35.8 percent
compared to 37.2 percent for 2005. The year-over-year decrease in the
effective tax rate is primarily due to the previously announced
reduction of tax for reserves for prior years as a result of the
resolution of a tax audit or expiration of the statute of limitations
for the audit of a tax year.
Net income was $266.1 million in 2006 compared to $272.1 million
in 2005, a decrease of $6.0 million. Net income in 2006 included the
impact of SFAS 123R, the litigation settlement of $25.0 million
pre-tax ($15.4 million after-tax) and a reduction in the effective tax
rate.
Non-GAAP net income, which excludes the litigation settlement of
$25.0 million pre-tax ($15.4 million after-tax), was $281.5 million in
2006 compared to $272.1 million in 2005, an increase of $9.4 million.
The non-GAAP net income information is being presented to provide
meaningful comparisons to prior periods.
Diluted earnings per share were $3.30 in 2006 compared to diluted
earnings per share of $3.26 in 2005. Results for 2006 included
stock-based compensation expense of $15.8 million pre-tax ($10.1
million after-tax) due to the implementation of SFAS 123R or
approximately $0.13 per diluted share, the litigation settlement of
$25.0 million pre-tax ($15.4 million after-tax) or approximately $0.19
per diluted share, and approximately $0.07 per diluted share from a
lower effective tax rate.
Non-GAAP diluted earnings per share based on non-GAAP net income
of $281.5 million, which excludes the litigation settlement of $25.0
million pre-tax ($15.4 million after-tax), were $3.49 in 2006 compared
to $3.26 in 2005. The non-GAAP diluted earnings per share information
is being presented to provide meaningful comparisons to prior periods.
During 2006, CDW repurchased 4.059 million shares of common stock
at an average price of approximately $56.09 per share for an aggregate
purchase price of $228 million. Under the current share repurchase
program approved in April 2006 for the repurchase of 5.0 million
shares, approximately 3.2 million shares remain available for
purchase. CDW returned a total of $269 million to shareholders in 2006
comprised of $228 million of share repurchases and an annual cash
dividend of $41 million.
The company plans to release January sales on Friday, February 9,
2007. January 2006 had 21 billing days and January 2007 will have 22
billing days.
Forward Looking Statement
Any forward-looking statements contained in this release are based
on the Company's beliefs and expectations as of the date of this
release and are subject to certain risks and uncertainties which may
have a significant impact on the Company's business, operating results
or financial condition. Should any risk or uncertainty materialize, or
should underlying assumptions prove incorrect, actual results or
outcomes may vary materially from those described in forward-looking
statements. Factors affecting the Company's business and prospects are
discussed in the Company's filings with the Securities and Exchange
Commission.
About CDW
CDW(R), ranked No. 343 on the FORTUNE 500, is a leading provider
of technology solutions for business, government and education. CDW is
a principal source of technology products and services including top
name brands such as Acer, Adobe, Apple, Cisco, Fujitsu, HP, IBM,
Lenovo, Microsoft, Panasonic, Quantum, Samsung, Sony, Symantec and
ViewSonic. CDW's direct model offers customers one-on-one
relationships with knowledgeable account managers and access to more
than 760 on-staff engineers and advanced technology specialists who
customize solutions for customers' complex technology needs. CDW also
provides same-day product shipping and post-sales technical support.
CDW was founded in 1984 and employs approximately 5,480 coworkers.
In 2006, the company generated sales of $6.8 billion. For more
information, visit CDW.com.
A live web cast of CDW's management discussion of the fourth
quarter of 2006 results will be available at www.cdw.com/investor. The
web cast will begin today, January 26, 2007, at 8:30 a.m. ET / 7:30
a.m. CT. An audio replay of the call will also be available at
www.cdw.com/investor for approximately two weeks.
Additional financial and operational data is provided in a series
of supplemental slides available at www.cdw.com/investor.
For more information about CDW:
Visit CDW on the Internet at http://www.cdw.com. Contact CDW
Investor Relations via the Internet at investorrelations@cdw.com or by
telephone at 847-419-6328.
CDW is a registered trademark and CDW@work is a trademark of CDW
Corporation. Other company and product names may be trademarks of
their respective owners.
CDW CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Ended Years Ended
December 31, December 31,
----------------------- -----------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
Net sales $1,823,929 $1,606,964 $6,785,473 $6,291,845
Cost of sales 1,539,883 1,358,184 5,715,630 5,324,215
----------- ----------- ----------- -----------
Gross profit 284,046 248,780 1,069,843 967,630
Selling and
administrative
expenses 147,764 113,249 530,120 433,482
Advertising expense 28,458 28,545 118,324 114,514
Litigation settlement 25,000 - 25,000 -
----------- ----------- ----------- -----------
Income from operations 82,824 106,986 396,399 419,634
Interest income 3,930 4,325 19,796 15,155
Other expense, net (427) (698) (1,844) (1,831)
----------- ----------- ----------- -----------
Income before income
taxes 86,327 110,613 414,351 432,958
Income tax provision 32,770 40,103 148,271 160,866
----------- ----------- ----------- -----------
Net income $ 53,557 $ 70,510 $ 266,080 $ 272,092
=========== =========== =========== ===========
Earnings per share:
Basic $ 0.68 $ 0.88 $ 3.37 $ 3.35
=========== =========== =========== ===========
Diluted $ 0.67 $ 0.86 $ 3.30 $ 3.26
=========== =========== =========== ===========
Weighted-average
number of common
shares outstanding:
Basic 78,377 80,064 78,874 81,128
=========== =========== =========== ===========
Diluted 80,249 82,316 80,651 83,566
=========== =========== =========== ===========
Dividends per share $ 0.00 $ 0.00 $ 0.52 $ 0.43
=========== =========== =========== ===========
CDW CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2006 2005
------------ ------------
Assets
Current assets:
Cash, cash equivalents and marketable
securities $ 351,596 $ 571,750
Accounts receivable, net of allowance for
doubtful accounts of $9,995 and $9,564,
respectively 850,002 637,245
Merchandise inventory 261,858 243,564
Miscellaneous receivables 55,881 27,848
Deferred income taxes 24,660 12,562
Prepaid expenses and other current assets 15,139 8,274
------------ ------------
Total current assets 1,559,136 1,501,243
Marketable securities 40,000 39,176
Property and equipment, net 171,448 97,277
Goodwill and other intangible assets, net 183,094 4,767
Other assets 11,443 6,593
------------ ------------
Total assets $1,965,121 $1,649,056
============ ============
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 354,307 $ 245,201
Accrued expenses and other current
liabilities 175,074 122,560
------------ ------------
Total current liabilities 529,381 367,761
Long-term liabilities 48,575 16,730
Shareholders' equity:
Total shareholders' equity 1,387,165 1,264,565
------------ ------------
Total liabilities and shareholders'
equity $1,965,121 $1,649,056
============ ============
CDW CORPORATION AND SUBSIDIARIES
SEGMENT REPORTING INFORMATION
(in thousands)
Three Months Ended December 31, 2006
-----------------------------------------------------------
Corporate Public Headquarters /
Sector Sector Berbee Other Consolidated
----------- --------- --------- -------------- ------------
Net sales $1,163,679 $551,261 $108,989 $ - $ 1,823,929
=========== ========= ========= ============== ============
Income
(loss)
from
opera-
tions $ 88,589 $ 26,197 $ 3,839 $ (35,801) $ 82,824
=========== ========= ========= ==============
Net
interest
income
and other
expense 3,503
------------
Income
before
income
taxes $ 86,327
============
Total
assets $ 508,535 $278,746 $325,073 $ 852,767 $ 1,965,121
=========== ========= ========= ============== ============
Three Months Ended December 31, 2005
----------------------------------------------------------
Corporate Public Headquarters /
Sector Sector Berbee Other Consolidated
------------ --------- ------- -------------- ------------
Net sales $ 1,129,266 $477,698 $ - $ - $ 1,606,964
============ ========= ======= ============== ============
Income
(loss)
from
opera-
tions $ 88,669 $ 26,304 $ - $ (7,987) $ 106,986
============ ========= ======= ==============
Net
interest
income and
other
expense 3,627
------------
Income
before
income
taxes $ 110,613
============
Total
assets $ 461,416 $285,709 $ - $ 901,931 $ 1,649,056
============ ========= ======= ============== ============
CDW CORPORATION AND SUBSIDIARIES
SEGMENT REPORTING INFORMATION
(in thousands)
Year Ended December 31, 2006
-------------------------------------------------------------
Corporate Public Headquarters /
Sector Sector Berbee Other Consolidated
----------- ----------- --------- -------------- ------------
Net
sales $4,514,106 $2,162,378 $108,989 $ - $ 6,785,473
=========== =========== ========= ============== ============
Income
(loss)
from
opera-
tions $ 350,588 $ 106,717 $ 3,839 $ (64,745) $ 396,399
=========== =========== ========= ==============
Net
inter-
est
income
and
other
expense 17,952
------------
Income
before
income
taxes $ 414,351
============
Total
assets $ 508,535 $ 278,746 $325,073 $ 852,767 $ 1,965,121
=========== =========== ========= ============== ============
Year Ended December 31, 2005
------------------------------------------------------------
Corporate Public Headquarters /
Sector Sector Berbee Other Consolidated
----------- ----------- -------- -------------- ------------
Net sales $4,410,708 $1,881,137 $ - $ - $ 6,291,845
=========== =========== ======== ============== ============
Income
(loss)
from
opera-
tions $ 341,810 $ 110,425 $ - $ (32,601) $ 419,634
=========== =========== ======== ==============
Net
interest
income
and
other
expense 13,324
------------
Income
before
income
taxes $ 432,958
============
Total
assets $ 461,416 $ 285,709 $ - $ 901,931 $ 1,649,056
=========== =========== ======== ============== ============
CDW CORPORATION AND SUBSIDIARIES
OPERATING DATA
Three Months Ended Years Ended
December 31, December 31,
--------------------------------------------
2006 2005 2006 2005
--------------------------------------------
% of sales to commercial
customers (1) 99.1% 99.0% 99.1% 98.9%
Direct web sales (000's) $491,156 $454,643 $1,981,921 $1,769,032
Sales force, end of period 2,589 2,153 2,589 2,153
Annualized inventory
turnover 23 25 23 24
Accounts receivable - days
sales outstanding (2) 43 36 46 37
- ----------------------------------------------------------------------
(1) Commercial customers are defined as public sector and corporate
customers excluding consumers.
(2) Accounts receivable - days sales outstanding was impacted by the
acquisition of Berbee Information Networks Corp. in October 2006.
Excluding the impact of this acquisition, accounts receivable - days
sales outstanding for both the three months and year ended December
31, 2006 was 41.
SELLING DAYS (1)
Month 2007 2006
- ----------------------------------------------------------------------
January 22 21
February 20 20
March 22 23
- ----------------------------------------------------------------------
Quarter 1 Total 64 64
- ----------------------------------------------------------------------
April 21 20
May 22 22
June 21 22
- ----------------------------------------------------------------------
Quarter 2 Total 64 64
- ----------------------------------------------------------------------
July 21 20
August 23 23
September 19 20
- ----------------------------------------------------------------------
Quarter 3 Total 63 63
- ----------------------------------------------------------------------
October 23 22
November 21 21
December 19 20
- ----------------------------------------------------------------------
Quarter 4 Total 63 63
- ----------------------------------------------------------------------
Fiscal Year 254 254
- ----------------------------------------------------------------------
(1) The number of selling days by month and quarter for both 2007 and
2006 are being provided for reference.
CDW CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(dollars in thousands, except per share data)
Three Year
Months Ended
Ended
December December
31, 2006 31, 2006
--------- ---------
Income from operations
- --------------------------------------------------
GAAP income from operations $ 82,824 $396,399
Adjusted for:
Litigation settlement 25,000 25,000
--------- ---------
Non-GAAP income from operations $107,824 $421,399
========= =========
Income from operations as a percentage of net
sales
- --------------------------------------------------
GAAP income from operations as a percentage of net
sales 4.5% 5.8%
Adjusted for:
Litigation settlement 1.4% 0.4%
--------- ---------
Non-GAAP income from operations as a percentage of
net sales 5.9% 6.2%
========= =========
Net income
- --------------------------------------------------
GAAP net income $ 53,557 $266,080
Adjusted for:
Litigation settlement, net of income tax 15,400 15,400
--------- ---------
Non-GAAP net income $ 68,957 $281,480
========= =========
Diluted earnings per share
- --------------------------------------------------
GAAP diluted earnings per share $ 0.67 $ 3.30
Adjusted for:
Litigation settlement, net of income tax 0.19 0.19
--------- ---------
Non-GAAP diluted earnings per share $ 0.86 $ 3.49
========= =========
CONTACT: CDW Corporation
Investor Inquiries
Cindy Klimstra
Vice President, Investor Relations
(847) 968-0268
or
Media Inquiries
Gary Ross
Sr. Manager, Corporate Communications
(847) 371-5048