Collin B. Kebo
Tom. everyone. Thanks, morning, Good
indicated They for power financial As breadth portfolio variable return strategy cash investments balanced our growth making the of channels, also demonstrate product are to against and sustained our strategy in of successful of growth our financial offerings flow, to drive profitable shareholders. combined the reflect Tom first and quarter progress three-part our results and we cash long-term structure. strong cost reflect deliver
Before started, will all financial the I'd I to of you the ASC review I information get remind like of reflects adoption XXX. that
XXXX XXXX. for it's apples-to-apples So, comparisons and
Turning P&L. to our
points fiscal If constant on Canadian basis and translation billion, than lesser success to helpful Consolidated which buying; it a follow was British XXX daily added nearly will anticipated of roughly I'm client posted net XXXX sales basis device last tailwinds down basis impacted – factors you more be basis international end growth of expected reflected sequential quarter. currency sales year. and and currency QX favorable to $X.X supply positive the XXX sales X.X% by were second, driven average basis slide consolidated On points pound QX daily sequential than growth. higher slides daily than points the stronger This a the Currency higher Average XXX adding versus reported of decline a than X.X% capturing were third, million. four fourth On of year delays, an delivered dollar along. impact a sales were higher net $XX.X shipment XX than access by anticipated. Currency last growth. basis sales XX.X% more chain sales; the and first average online than basis. X. than sales fourth, year points sales have tailwind; year-over-year were of on were
impact three Service and and the increased just impact shipments the impact sales which sales. down strength, hardware quarter contract to in profit which was net XX digit the revenue year-over-year revenues, margin currency, the drivers. double of year-over-year. compared of margin The of a first the reflected and these Software increased year. Excluding million. X% to XX The from the last fourth main quarter and Gross positive points product net basis ongoing Gross XXX% sequentially points comprised funding mid-single-digit in basis over for increases XX.X% $XXX other up delta partner than by was quarter in X.X% offset more increases include increases as warranties, in gross service and margin over
compensation. SG&A million on reported non-cash expense of including X, costs million of taxes was related on higher SG&A, costs year. last Reported and roughly X% to compensation including includes $X equity slide payroll equity-based to than other Turning advertising $X SG&A
which in than our primarily Adjusted XX of EBITDA sales XX moves compared points SG&A adjusted with yearend power quarter Our SG&A structure. cost first our of up the our SG&A variable the XXXX XX.X% sales increased growth line roughly demonstrate compensation, Lower profits. results reflects margin to Once growth resulted since Coworker slower X,XXX. gross count XXXX. in million. EBITDA the adjusted nature variable to X%. sales of again, $XXX than basis was Adjusted adjusted of X.X%, an higher in to increased
to last reflected $X rest refinancing double in The of year's benefit the payment than the $XX million of of XX.X% million the of million, in last effective at that quarter Interest XX. QX slide of P&L redeemed. tax effective year's the on tax rate Looking the month the absence XXXX. in an of QX reduction of were one an were which was first notes rate interest the expense $XX resulted level. primarily lower taxes on of compared XX.X% GAAP
QX the As benefits you in impact XXXX, compensation year-over-year XXXX tax which by slide the can QX primarily increase see partially a versus tax of tax rate lower reflects rate. effective was from on excess lower offset XX federal equity-based in
twice to income of quarter Moving costs. basis, debt XX. slide net first extinguishment On of included $XX GAAP of we earned $XXX a last million than million which year's more income $XX million net
operating quarter general non-GAAP integration related backs and the income get reflects expenses income compensation. non-GAAP including To income was we or effective associated year. of in non-GAAP reflects $XXX net XX.X% our taxes, and net intangibles, performance million consistent benefits the up excess payroll add other fall backs ongoing four Our after-tax equity with tax better to over which our nonrecurring that taxes equity-based last infrequent in expenses. add adjust compensation or with rate, Non-GAAP amortization purchased buckets; tax
QX, than tax more percentage compared non-GAAP down primarily the XX.X% tax year's For XX.X% rate rate. rate to our points federal to due slightly was lower last XX effective
non-GAAP our more net detailed earnings million. release. Our to rate We've a $XXX provided our reconciliation resulted million pre-tax in income of non-GAAP in income non-GAAP tax applied of XX.X% of $XXX effective
million, impact net to of quarter XX. XX.X% slide than the see net over on Currency adding year about basis points to measure non-GAAP delivered shares as can income. sales As QX you up starting $X.XX with impact GAAP XX, growth. we was you per non-GAAP on can EPS income share, With either pre-tax or prior our can pre-tax see outstanding income, calculate get of EBITDA on to average XXX slide you adjusted diluted first the XXX on this weighted higher
QX sheet debt we of was cash our cash XX. of to million net slide XX, billion, and and equivalents $X Turning On to on March flat $XXX balance had XXXX. which
of the XX-month trailing X.X Our end debt of times. our target times cash X.X plus X revolver at net at availability was low-end adjusted the billion to to times of range EBITDA QX was $X.X
basis above weighted effective XX rate debt interest points X.X%, current on is year. Our last outstanding average
quarter interest LIBOR we XXXX. on While given amount impact in of December billion. increased was the term the minimal the loan our first caps $X.X in expire on expense place have the These caps in in X.X%
we in XX% of XXXX. With caps our and quarter roughly debt the caps to either an additional place fixed purchased at rate During hedged. of X.XXX XXXX billion outstanding $X.X percentage is hedge or
you As maintained we three-month during slide capital on QX. see can strong XX, working rolling metrics
Remember which less million expenditures flow Free minimal. payment quarter increase plus free $XXX flooring our primarily mixing QX into each terms. operating For inventory into decline netted flow the $XXX our change is of lower the to goods range other on against roughly reflects quarter as both conversion cash of cycle the average applied sold. low-XXs. sequentially cost cash flow QX positive down was a and tax were of because to agreement, sales in our a change Year-over-year year's vendors month from million inventory payments largely target for days, reflecting last reflects The are average the year-over-year mixing impact capital net the offset days with XXXX. higher we in three cash was days cash remainder quarter, in DSO metrics. down two XX revenues quarter's DPO high-teens calculate extended cash has below seasonally flow The balances increases first lower quarter cash compared the strong annual and and of as
million allocation share. an $XXX repurchased quarter $XX.XX and for average continued at shares against our strategy X.X million to the we per During cost execute capital of
Our slide of capital is following four XX. see you components allocation comprised can the strategy on which
First, of of five a payout achieve to over dividend annually. increase increases November cash these set free flow we target dividends guide XX% To years. a XXXX, in
dividend annual we a from initial IPO, quarter, our year share share. shareholders will of level increased Since XX dividend from nearly per ago. has June of the pay XX, record to $X.XX fivefold $X.XX per May of XX% up this of For on as the
have in ensure Second, the right capital place. we structure
in adjusted the generally X.X X of target EBITDA to to net debt range times. set ended We have times We X.X leverage QX a maintain at times. to
growth Third, supplement organic acquisitions. strategic with
share of example investment to after UK remaining end current had March, via return we share on of this. shareholders million the excess authorization. cash dividends excellent CDW Our fourth, is And repurchase and At M&A an our repurchases. $XXX
our Our see updated you capital on which allocation slide targets, priorities support XXXX XX.
As for Tom the and to by We market basis roughly mentioned, sales grow X% Canadian now CDW British than year $X.XX points look U.S. basis. to dollar. expect currency XXX little than constant a market pound XX currency ago of points the IT more exchange contribute rates the on to a and to we growth more the basis a now little to $X.XX annual assuming to outperform
growth Given QX ago growth EPS EPS be XX%. performance for target in exceed XX% look non-GAAP our mid-to-high to initial to currency which to now XXXX and year as non-GAAP expectations, expect constant the we in and XXs, we define
sales and have We impact growth. on similar growth expect a currency EPS to
expect range not are come and of or quarterly. targets basis points Keep in roughly XX of points EBITDA margin basis to mind below target so high the that to annual in continue X% annual our tax X's to investments end adjusted our We to these X reform, tax expenses. high
Let of additional modeling on slide few for me those you XX. XXXX our comments with the rest a I'm provide financials.
of sales has second XX% Based year seasonality from the Our been half. second points historical half, results the sales for XX basis the for of roughly first shift year. we rest the first look to on of to half XX% roughly and QX half expectations the
to below historical QX than growth for better we seasonality. seasonality look historical QX's sequential Given run
little selling roughly million in of run to we now the number million less number the $XX as per million a the and remaining same at quarters year the XXXX intangibles. amortization We expect for is days. of above same days $XX annual end prior of have purchased We depreciation which selling with each of quarter, the than and $XX year
loan in to expected in come term impact annual million. roughly at the April re-pricing is $XXX expense interest of With our book
continue compensation equity to lower XXXX. We look for annual roughly million $X to be than
at up couple quarter equity dollars compensation the compared QX. to million its highest expect level second to a We in be
rate tax to We XX%. be continue non-GAAP to expect our between full effective and XX% year
our basis excess expect net tax target QX. and non-GAAP rate our repurchases GAAP contribute XXX QX to as of non-GAAP EPS income expected approximately impact non-GAAP We than to growth. in annual tax Annual to is faster share grow benefits mid-to-high XX% EPS points
on Finally, modeling XX. flows. of cash those a for notes few I'm slide you
First, above to annual net X.X% be basis. we expenditures sales an our capital slightly expect on of
within expect range to low-XXs. to deliver cash our also a conversion cycle high-teens We of target
our estimated year. to As flow the our is second with typical taxes what the cash and flow sequentially highest quarterly quarter quarters for first cash This tends our lightest the you capital increase. support second of know, working increased typically cash payment reflects to quarter needs sales of our pattern be and both
year, XX% pre-tax full book is intangibles range tax amortization, in income before the cash expect to For the related approximately to $XX rate which to quarter. be per million applied the we acquisition XX%
our million income the debt approximately $XX XXXX. pay reduction In with addition, of in is in tax XXXX to rate of we tax cancellation the year payments. for in final the related we to expect XXXX incurred
above the ahead to rule of we XXXX's follow-up? instructions flow summary. net you. to of Can with over expect Thank due one low at let's you it provide limit of delivery asking please tax our up questions. ask your to questions X.XX% the rate brief run thumb reform sales. financial This between to go concludes for With question. each to to rule continue Operator, that That reform thumb a timing. reflects come the the open free of and in XX for We please basis annual points of our end pre-tax cash of enhanced X.XX%
