and Good allocation Chris. full thoughts priorities more you, to fourth Thank initial going year morning, on detail and everyone. capital XXXX. provide on I'm quarter results,
daily sales slide sequential consolidated sales X.X% had constant less third reported grew average billion, to P&L average XX% basis, how up basis, to as sales on currency an selling impacting Consolidated Turning X.X% average basis On on than sales net This quarter. were primarily a increased XX.X%. digit was higher an COVID-XX quarter decline, differently. channels fourth basis mid-single our the a daily historical is versus net On sales day. one nine. a our we on of daily and due sales $X seasonality
time, seasonality has continue be, to than different to historical this is and During expected uncertain experience. been
K-XX, writings was last in end demand channels as Pockets for lower stronger Our other constraints our primarily consistent earnings of supply where such than Chromebooks. than the performed even the generally client customer call quarter, on commentary continued with demand devices shared expected.
and margin did supply navigating an to capabilities increase and into was as year. our a The driven basis strong distribution Service. team of million, relationships $XXX vendor gross margin XX.X%. great for healthy points profit by for expansion of down product fluid XX.X%, Gross primarily margin revenues, a last the customers. up Our over leveraged netted the XX mixing was Software partner was procure and share environment job a Gross quarter
XX.X%. XXXX. count at the operating customer-facing SG&A including XXX tremendous was coworkers their quarter two count. in GAAP coworkers, driven of our million, efforts better partially continued decreased income offset operating Coworker million, Year-over-year, payroll performance, in count coworker by gross the recognize partially increase to driven by ongoing reflects of X.X%. up was increased income, an acquisition and profit on slide savings margin COVID-XX entertainment. higher quarter. from was operating due safeguard in X,XXX, IGNW, a was The and in fourth the which and XX.X%. operating Aptris, approximately non-customer-facing including up by primarily $XXX and coworkers, Non-GAAP increased income up Turning investment higher an third investments IGNW, of to XX, SG&A decrease coworker performance and X.X%. end cost frontline was costs compensation increase XX. to expenses reward Non-GAAP The travel measures, offset and by compensate to $XXX Non-GAAP
the lower a LIBOR to was $XX refinancing. due rate X.X%. was and million, XX. expense Interest down decrease from to savings slide August primarily Moving The
tax $XX resulted compared $XX million our rate, fourth tax effective on To get non-GAAP tax we in slide shown This to consistent on Our last XX. slide GAAP million shown XX.X%. with rate taxes to add-backs, net quarter year. XX income expense as adjust was of non-GAAP effective
our rate benefits income effective versus last was year's by and for with non-deductible tax rate, due credits. primarily low down global new regulations tax For quarter, non-GAAP partially tax XX.X%, associated tax the to basis points XXX offset lower intangible expenses,
million, can $X.XX, As income of share outstanding average XX.X%. slide diluted you shares with quarter net XX, $XXX was per fourth up on see weighted GAAP
year. Non-GAAP income from net $XXX up $X.XX, in non-GAAP the quarter, XX%. per Our share last up income was was million XX.X% net
XX Gross $X.X XX.X%, to Turning slides was mixing up of driven XX profit results netted down an full profit Gross Service. product into $XX.X billion, X.X%. margin X.X%. and a on our increase year margin billion, was XX. points, through basis up Revenue was revenues, Software as primarily by
the moving I Before to rest take P&L, want and moment XXXX in a profit sales down context. of to the gross put
points In the consistently have We growth end power gain customers customer serve markets. share. basis US highlighted growth. we to our the pivot better of the is, Census estimate down year-over-year and and diverse call faster leveraging X% CDW advantages gross points single net We XXXX, portfolio market low of than to XXX points market declined IT sales digits, contributed profit the and grew X%. grew sales net decline. basis it faster competitive XXX where XXX our basis
Excluding the net of excess delivered profit and in market. Census, gross meaningful sales growth CDW still
as XXXX, sales value. of also differently, our purchases, environment. In out because dynamics gross and XXXX the recession, the solution the profit we've services the pandemic, made paused During narrowed margin on partially but compressed to progress customers portfolio our pressure because capabilities of our performed premium the product the competitive and in unique hardware due building margin net of customers
totaled P&L. they in XX% for XX% $X.X income Returning operating profit. and to gross non-GAAP and For Operating billion, income XXXX, while X.X%. full collectively of the US was year software approximately was US example, sales billion accounted $X.X net up of US services
net expenses Our points income in rate global a decrease $XXX income per was was million, Net X.X%. regulations tax XX%, as of share contribute year's is tax $X.XX, non-GAAP the net was low Non-GAAP income down effective to in and expected rate new effective versus up income basis that benefit intangible rate are not due XXX and non-GAAP the X%. last much was to to up tax million The tax XXXX. rate. non-deductible $XXX primarily for
of were revolver X.X% on further balance sheet above deferred of historical this large and sales, cash rule and flow or and thumb and debt billion, billion, of billion. X.XX% the net cash as equates plus items, the terms, UK timing $X.X with extended of the portion well billion. $X.X cash our free Liquidity including payroll payments driven some shown was outperformance XX. was availability XX, of collections to the one-time mixing payment tax to Turning December on was customers. flow strengthened with cash cash XX, vendors Full A equivalents into to by Census, free approximately from of slide timing $X.X slide $X.X year At X.XX%.
the favorable next over We timing the to quarters. expect few reverse
by to from while was XX. terms. cash fourth quarter. with driven in three-month The conversion payment average was The Moving days, year's mixing one last DPO were last DPO unchanged vendors increased increase day down cycle from by XX primarily slide extended one into DIO and year, DSO day.
As buyback repurchasing program resumed our stock. we quarter, million previously fourth share of $XXX the in mentioned,
of average $XXX For to share. full $XXX approximately at shareholders, and returned of per we including million $XXX price share repurchases dividends year of million an $XXX XXXX, million
XX. slide on priorities allocation capital to Turning
strong the same. Given remain position, our our priorities liquidity
in dividend approximately target guide of XX% increases, grow these dividend non-GAAP income the the going with with income. forward. increase line and First, To we net net line in non-GAAP to earnings at will
in Second, have X.X a with place ratio X targeted leverage ended the year we to X.X structure times. We capital at net times. of right the ensure times
from our through third after fourth to repurchases. M&A solution dividends evaluating Our strategic growth on In We excess the active fourth, And is Aptris. return acquisition acquisitions. allocation supplement with XXXX quarter, of remain priority to small organic share two the targets. capital we practices shareholders build and acquired success ServiceNow to cash
times target through cash shareholders. forward, to move our times a net investments, to return Going combination and organic to we closer leverage ratio to expect X M&A of of X.X
$X in share with return repurchases end least on repurchase dividends. shareholders for share current At $X.X our remaining we including the of approximately billion at from the to balance $XXX to XXXX, December, had billion million We expect authorization.
$X.XX our mentioned, authorized Board of to priorities. of our support capital Chris in increase As repurchase billion share the allocation a program Directors
activity, course, we monitor liquidity, closely Of the do, needed. leverage environment, adjust we'll and as macroeconomic as always M&A
on be continues degree Moving making slide highly The providing it IT with confidence. to XX. market for environment XXXX perform growth base uncertain, a environment. challenging current forecast Therefore, how in case to a are business XXXX of the for to and outlook to growth expectations IT for high we market we expect CDW's that
base IT between assumes US market growth Our X.X% to case X%.
to We to to year, basis $X.XX full net Currency for expect the approximately Canadian of of to basis sales a be is faster points expected CDW and XXX grow rates the British assuming points XX XXX the dollar. than $X.XX market. pound exchange tailwind to
the In customers segment year, are to uncertainty some consider. continues there of terms performance markets, drivers to for but by among be across end here
last QX Business to to quicker environment. macroeconomic Corporate QX the side business, commercial respond year, steepest tend customers the declines Small and saw the the decline experienced then the was that quarterly thereafter. with On moderating We of quarter, strongest
the XXXX will be of timing customer the and virus. tied confidence, be expect function of rebound macroeconomic slope success a and We in containing the which to to the environment closely
to Moving Public.
We civilian supporting Department and agencies. expect continued Defense success of
historical overlaps in Education sales the feeds in the XXXX. we to pandemic at demand first loss customer clarity, the expect fully with comparison linked of of strong XXX Chromebook second and in is virus of to as due timing of support. to in the the expected expected experienced to budget growth rebound and in tougher supply containing to of beginning a project, the approximately above CDW continued year, be overlaps a contributed seasonality Census to to function and slope of the not up net make unusual the then seasonality which earlier the is the in Government year a in XXXX. basis sales is potential then throughout decelerate success Healthcare be total be which However, spiked points stimulus are The half XXXX and half. a wildcard.
are customers, driven so of Finally, Canada. more environments be macro recovery and the pace in our businesses Corporate international to the weighted by will UK the
P&L. the down Moving
X%, the current XXX end of basis This points growth earnings X.X% Currency approximately mid-X% of points to be per the share X.X% reported IT repurchases market growing headwind share single non-GAAP to the per to approximately operating and to interest mid share following XX.X% operating to typical margin growth to X% is on range to currency tax from points two, tax to contribute it non-GAAP low-end income contribution XXXX's constant below range, non-GAAP high expense per income. the on than Assuming assuming the in mid net Three, earnings rates. decline XX.X% per growth. basis One, rate, line be modest high expect we rate low creating a our The earnings XX% is XX with digits, share in to a basis. a assumptions. share the to non-GAAP at in of call approximately range reflects the growth. XXXs, a over effective XXX basis XXX non-GAAP earnings higher expected points basis faster than of
amortization for can modeling XX. Additional depreciation found be thoughts annual and on page
daily QX Historically, Turning the decline first an to has to the QX quarter. sales down approximately sequential on average averaged X%. basis
year's government commercial continued decline Census trends, reflecting historical partially year-over-year to the and down improving basis, strength, to digits expect Department Mississippi primarily equates average a digit offset sales On high than to growth, the due Education. of first mid-single work-from-home surge. seasonality, We this daily education overlap and be by quarter more single this sequential of March XXXX
will XXX January first points. which day, line we and quarterly is quarter non-GAAP with full higher as points than we be by growth of in to fourth quarter. one basis per partially selling recoup expectations. impacts the day earnings This are reserve, quarter overlap having commentary growth the in the year's basis increase loss fewer first in on adversely share by a expect last EPS credit approximately my profit currency We the trends constant hundred offset timing, outlook, segment couple year generally
slide Additional on cash can be thoughts on flow modeling components the found of XX.
to thumb net long-term cash tax of free flow X.XX% rates. remains rule assuming of sales, unchanged to current Our X.XX%
Given free at slightly cash delivery, to over the range. to timing or XXXX impacts that flow be below we contributed expect low significant end XXXX of the the
is a for We XX time of the our trusted customers fortify points partner XX sales, in make competitive XX us enabling the choice of higher vendor and transformation in basis digital believe own We approximately to historical than expect thumb. basis investment of position rule our run business, slightly the accelerate CDW partners. to to net and CapEx points now as percent to
As we our it earnings provide we a updated ask With future environment business you your please That always limit questions. questions we up brief each follow-up? Can with do, macro the that, summary. of one Cree concludes to on ask Thank to I'll for to views one will financial open calls. the you. on and
