CDW Corporation (NASDAQ:CDW) Q2 2018 Earnings Conference Call Transcript

Aug 02, 2018 • 08:30 am ET

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CDW Corporation (NASDAQ:CDW) Q2 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the CDW Second Quarter Earnings Call. At this time, all participants are in a listen only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions) I would now like to introduce, Chairman and CEO, Mr. Tom Richards. Please go ahead, sir.

Executive
Tom Richards

Thanks, Andrew. Good morning, everyone. It's a pleasure to be with you today to report our second quarter 2018 results. This is an exciting anniversary for us, that's been five years since our first earnings call after our June 2013 IPO, and once again, we delivered another quarter of strong results.

Joining me in the room today are Collin Kebo, our CFO; Chris Leahy, our Chief Revenue Officer; and Sari Macrie, our VP, IR.

As is our practice, I'll begin today's call with a brief overview of our results and key drivers. Chris will review customer end-market performance, and Collin will take you through a more detailed review of our financial results, capital priorities and performance targets. Then we'll go right to your questions. But before we begin, Sari will begin the company's safe harbor disclosure statement.

Executive
Sari Macrie

Thank you, Tom. Good morning, everyone. Our second quarter earnings release was distributed this morning and is available on our website, investor.cdw.com, along with supplemental slides that you can use to follow along with us during the call.

(Forward-Looking Cautionary Statements)

Our presentation also includes certain non-GAAP financial measures, including non-GAAP earnings per share. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You'll find reconciliation charts in the slides for today's webcast as well as in our press release and the Form 8-K we furnished to the SEC today.

Please note that all references to growth rates or dollar amount increases in our remarks today are versus the comparable period in 2017, unless otherwise indicated. In addition, all references to growth rates for hardware, software and services today represent US net sales only and do not include the results from CDW UK or Canada. Also note that our 2018 and 2017 net sales amounts are reported under accounting standard ASC 606. The number of selling days in the first and second quarter was the same in both 2018 and 2017. All sales growth rate references during the quarter will use average daily sales, unless otherwise indicated.

A replay of this webcast will be posted to our website by this time tomorrow. I also want to remind you that this conference call is the property of CDW and may not be recorded or rebroadcast without specific written permission from the company.

And with that, let me turn the call back to Tom.

Executive
Tom Richards

Thanks, Sari. We had another quarter of strong and profitable top line growth. For the quarter, consolidated sales were $4.2 billion, up 7.6% versus last year. On a constant-currency basis, sales increased 7%. Gross profit increased 8.6% to $696 million. Adjusted EBITDA increased 9.6% to