Collin B. Kebo
Thanks, everyone. morning, Tom. Good
offerings full of to model, our to making reflect are business portfolio flow breadth As fourth and of cash shareholders. we Tom indicated, and our strategy long-term year quarter financial financial also channels. cash our They our return strong progress product and nimble results reflect balanced against the drive
helpful on an Turning be X.X% fourth reflecting quarter X.X% access posted in reported a basis. Fourth online, year British X.X% XXXX, it to if basis will P&L, to average an slides dollar to am U.S. than on sales on sales along. $X.X basis, X. daily sales billion, sales higher seasonality. versus have increased down the daily average our and Net sales higher pound quarter slide follow last of were to constant currency, you net sequential I On recent X.X% translation. quarter primarily were third the more than
gross Similar last third delivering than to quarters, continued hardware our X.X% into sequential lower QX full product margin. the in gross hardware XX.X%, of and Given expectations, that last more QX accelerated points year quarter's call. on XXX% QX, the items. with we saw gross into basis strength second offset impact XX was margin from incorporated the benefit rate on you shared million, margin reflects decrease mix $XXX The profit this the to increased of than growth year. primarily a and
Turning including on to roughly than compensation. last expense, noncash million SG&A, includes and X, equity SG&A X% $XX advertising slide reported was year of higher
a up offset XXX partially X%. XX delivered was incentive over which basis adjusted the of points increased payout could for just the December gross year-end Our X.X%. $XXX leadership the with lower quarter This chain million, X.X%, a Adjusted primarily increased which better X,XXX. advertising reflected was XX compensation. The margin on by sales was Coworker This managed. to consistent compensation profit management senior SG&A team have supply growth, increase challenges including based lower down count year-over-year. up roughly been year-over-year felt on EBITDA reflected
million, the the XXXX. the on quarter mark-to-market overlap than run of slide $XX consistent reflects our million QX last the interest fourth at of rest P&L primarily in level X, of Looking was The rate. higher and increase expense gains $X year's with quarterly
fourth million million rate $XX X.X% of a GAAP tax resulted effective last in a tax $XX to benefit versus XX.X% in negative year. QX Our quarter. last compared expense was of This year's
reflected $XXX you by related Cuts Tax a tax reducing resulted one-time was the positive of excluded slide adoption see liability, net benefit date income This As the of Act, partially With one-time GAAP in income. net a our implementation nonrecurring, given income on to million. expense offset the can XX, the Jobs of transition December foreign tax. the net the these adjustments $XX non-GAAP and impact On deferred both basis, was from million of benefit XX.
the was which quarter, performance, than X% Our $XXX in last operating non-GAAP net million income, reflects better higher year.
weighted see our or buckets: benefit fall tax add-backs noncash such goal in quarter. delivered repurchase third plus fourth amortization revenue. infrequent the ongoing after-tax XX, year. other a you sales, or as in expenditures, XX.X% outstanding lower X.X% flow flow income average flow as quarter income of year nonrecurring than million up major prior was partner X% the and any cash million in we rule share, Full agreement, reflects acquisition we quarter cash As million, million fourth which favorably of year-end non-GAAP growth as in lean The change reform. compensation, shares per flow, fourth over-delivery equity into timing. diluted $XXX cash this working higher and flow basis four the intangibles, $XX not on and our XX expenses, primarily cash slightly year. was fourth from XXX high Fourth and of $XXX with the operating net last in we stock by did quarter EPS levels XXXX purchased XXXX. cash million, inventory quarter, capital December's can of to was to was due the impact over calculate our one-time reached Currency to as points integration free expenses, Having in With less slide mixing of Devices. Client XXXX general well than non-GAAP of free our high net benefited extending quarter's on the related the free flooring free to quarter extended Recall, as compared terms partners $XXX above thumb. impacted X% with of terms of capital payment invoice timing end was sales $X.XX
was of was of basis, to impact margin. revenue was currency mix in currency constant XX, income for in year slide was EPS increase XX and Gross daily profit X.X%. $XXX $XXX net billion, and income on average Adjusted up basis basis $XXX above primarily profit up XX.X%, was points results increased reported hardware growth the Non-GAAP On XXXX, the product rate year-to-date $X.XX, XX X.X%. to million versus $XX.X XXXX. for with a revenue. points to due on sales. XX.X% non-GAAP Net an billion, was both $X.X billion, Gross Turning roughly and EBITDA was X.X% XXXX, impact X.X% $X.X down as million million higher. similar margin
to December on XX, to XX of billion million we cash XXXX. debt billion, equivalents compared of slide year-end $X $XXX had Turning and on $X.X balance at our sheet net cash and
times, end billion. our was XX-months times of availability to Our cash of adjusted debt low plus was X.X X.X to revolver trailing range Net $X.X target near times. X the EBITDA
Roughly completed year in QX. term our rate the below repricing or note is on XXXX. outstanding of debt average refinancing X.X%, last current XX% either we points through XX debt due weighted basis loan interest Our to is outstanding rate hedged fixed and
capital the of to cash low Cash flat rolling XX, can maintained at our high-teens the target million, year, were on quarter our and during days, at interest million. see taxes $XX cycle slide and working for last with you strong low-XXs. paid $XXX As quarter conversion end to cash metrics was of annual three-month the we XX
now to XXXX. turn Let's
ASC Before for key reform I the our financials: XXX expectations, review let tax recognition. two adoption through our revenue first me and impacting of walk changes
our the significant the of given you U.S. rate of know, mix impact operations. As international CDW reduction on corporate and is
percentage However, decline doesn't rate our by XX points.
our to delta between reflects expected see To XX% tax taxes, non-GAAP We can effective benefits taxes XX, get benefits apply then associated four expected to our statutory GAAP including we expanded income. rate U.S. compensation. excess with and of slide tax rate with adjust base, our tax consistent add-backs drivers: the on compensation. XX%, federal you this tax the XX% to non-GAAP pre-tax equity-based rate As from primarily excess international, and equity-based non-GAAP for state rate
through it tax I income. our Given calculate reform, would walk non-GAAP thought how to be helpful pre-tax to
on this see get you with EBITDA pre-tax GAAP can adjusted to either XX, or you measure As slide income. can starting
earnings pre-tax reconciliation $XXX was provided million, non-GAAP our income tax in a effective and detailed XXXX, was our For release. rate XX.X%. our more non-GAAP We
other XXX. adoption The financials change to the is our key of ASC
standards. this As on XXXX Sari XXXX indicated, results discussed reflect call accounting
$XXX standard new the the see down the the business going impact It's lower. XX. netting than XXXX, detailed review million deck adopted new We on main gross January rate net the margin new impact effective of we a tax comparison which standard but you financial XXXX of XXXX the in when targets, change standard retrospective were a slide website the standards along and netting the certain $XX.X basis of Please full Note margin the you results of there important the with profit use billion, under standard that less Software down XX. is of XXXX for influence two our a model a due the and under our to change the X, our XXX net primarily new segment. prior categories, net these Both in ASC dissipates of understand posted as under previously on new the dollars, minimis P&L. de XXXX reported. in to to the the is method. calculation EBITDA new Adoption on adjusted numbers provides on lower results on the recast incremental As have We provide than sales reported move baseline down as by in mainly that slide the sales standard Security. Accordingly, change sales more the our you standard standard forward. as
targets previous for place set XXXX through in Our were XXXX.
a We XXX to is There into XXX sense change to basis are what above our U.S. growth no the grow and of implementation constant-currency. the you tax XXXX standard. anniversary IT of extending when expect target to give points reform sales to market our new in we net view
Given expect incremental client near point one the fastest-growing impact standard down the of the range. point netting to our security we offerings, new and to growth in XXX of be the year-over-year basis basis software, moderation comparisons, device on to middle of the XXX
While reported down standard from on more it little year-over-year revenue, increases impact the change. new the has margin margin netted
we as expected off the We competitive XX% With between about, expect a growth investments adjusted investments spoke constant-currency expect we continued, EBITDA non-GAAP which reform mix year mostly to high points, be on X%. are shave any XX%. to to in tax our range. modest Tom and reform positive of the albeit deliver EPS by client in the Non-GAAP our to of expected define adjusted within to XX% a be target range come is roughly to low which EBITDA full mid-XX% rate range, to basis tax XX%. to impact assumes XX Prior This target growth slower, to X effective in high basis the our to expected in for margin is at the devices Xs the of marketplace. impact annual offset ongoing tax end
sales constant-currency, points to to deliver an IT adjusted above to basis of XXXX, with expect XXX in to to the net XXX continue high X% growth margin EBITDA market range. the Xs Turning in we U.S.
non-GAAP For amplified deliver From robust share to of targets. and to seen evolution financial reform slightly contribution those allocation In amplified of followed growth or deleveraging be since XXXX, growth, results. share you've us behind who operating onetime and growth. the growth tax XXXX, XX% lift expect with In refinancings we XXXX, growth. and will EPS with XXXX flow XX% going XXXX, free operating the IPO, you XXXX EPS continuing operating to from approximately amplified have cash our and repurchases. from of the capital better In dividends, operating us reform amplifying tax by buybacks
evolved slide XX, cash see our you have targets. can As flow on with for free expectations our
Given free net In basis we free new of cash thumb lower new generate and expect to net annual flow as resulting to rule sales we XXXX tax going flow higher X.XX% in XX this forward. of increase percentage of X.XX% expect to a cash points, be of rates, XXXX, a sales. approximately
expect allocation to range multiyear We but periods. given to of our basis investments. XX at the over-delivery over value be to in through shareholder flows, to can this of low-end capital points it Timing returns out strategic even annual of XXXX. tends the in continues impact reflect XXXX, intent drive Capital and
see essentially instituted XX, As priorities since you on are slide November our the capital can same we them in of XXXX.
XXXX, XX% number. achieve of XX% we payout of larger First, increase this that to target XX% tax a set of Recall cash flow represents within November of five our a free a dividends November. that in Post reform, dividend We increased annually. past years. dividend
structure ensure in Second, place. we have capital right the
We X.X the at maintain X the debt-to-adjusted times. quarter Our target is of ended in times. EBITDA fourth to X.X net leverage to generally range
that strategic organic with supplement to acquisitions Third, add growth capabilities.
this. share dividends a current had Our CDW end of on because we was remaining dividend an excess example And the authorization. $XXX $XXX our cash nearly the share. via our Between shares of year total million of million X.X of excess share above million on fourth, and At for average repurchases to investment XXXX, December, per end repurchase cost UK an In the repurchased we of at approximately million $XX return cash the in the excellent repurchases. payments, shareholders M&A flow and XXXX, $XXX sheet share shareholders after to of our returned for slightly balance XXXX. at free cash we
percentage over-delivery sales, flow Given more cash expect of XXXX's we deploy once than again of generated. a as free cash to
cash You our capital should us this to in return expect order of allocation priorities.
year let will XX. Finally, and then on rest the financials. I a comments our on thoughts for those few full am modeling the with XXXX I start you additional phasing. provide some inter-year slide of share me with
You have depreciation excludes XXXX, than to amortization the from EBITDA Using income, EPS million depreciation targets. amortization slide first of amortization, our at non-GAAP get be purchased and XX, million. $XXX and which medium-term approximately non-GAAP intangibles. annual purchased amortization XXXX net higher roughly on bridge to year-over-year intangibles deduct XXXX the the $X of we adjusted total In from the adjusted on and EBITDA perspective to be and flat to expect
approximately intangibles $X amortization amortization purchased and depreciation of So expected grow to versus is less the million XXXX.
$XXX in to which of Second, the million. expect deduct interest expense, $XXX million range we
you For pre-tax you approximately a $X is for arrive XXXX, to which income. millions, XX% pre-tax to those rate apply between our our in noncash mid- the We look down non-GAAP net in and starting tax income GAAP to at non-GAAP then million, effective year-over-year. high-$XX income, with equity-based compensation non-GAAP XX% expected of
share basis expect we to XXX growth XXX drive Finally, faster non-GAAP points repurchases to than net EPS income. non-GAAP
deliver to sales and mind Moving are roughly to of in sequentially XX%. based typically XX% line business, we our of inter-year in to to first first amount our XX% expect Keep sales fourth lowest quarter. our dollar XX% the half our phasing, average rhythm on with that below historical split half/second normal quarter and
basis, years, sales the three has daily past the decline on down Over XX%. averaged X% average to sequential an
for annual dollar for decline new average year. points sequential to rate of consistent for and at are chain an dislocation sequential XX greater $X.XX but growth. with roughly British and impact as We This periods earlier average tailwinds rate $X.XX the sales basis of use in standard spoke a assumes Canadian the about. supply the both pound. revenue the work expect translation a we range, Currency it expected vary daily the when this through calculating Tom Remember with could
the strong the XX.X% tax the gross and standard investments, Given growth full new prior under overlap, QX XX.X% to and under the year expect year's we margin growth. than this reform adjusted less standard QX be EBITDA
last growth be XXXX. did refinancing QX given as the kick expect expense EPS in of within range year's our QX lower non-GAAP We until growth full from interest to of QX benefit not lower year rates
that, With XX. questions. of let's the lot can That on go thoughts today. ahead on cash found for up financial open covered the and a concludes modeling it and Additional summary. components phasing We be slide flow
we many So questions as one Operator, in follow-up. with please you. brief questions possible, can a from take to Operator? please Thank limit the order sure as provide you make of to instructions. your
