CDW Corporation (CDW) has reported a 15.57 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $103.20 million, or $0.63 a share in the quarter, compared with $89.30 million, or $0.52 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $140.40 million, or $0.86 a share compared with $123.70 million or $0.73 a share, a year ago.
Revenue during the quarter went up marginally by 2.16 percent to $3,492.40 million from $3,418.40 million in the previous year period. Gross margin for the quarter expanded 24 basis points over the previous year period to 16.55 percent. Total expenses were 94.35 percent of quarterly revenues, down from 94.74 percent for the same period last year. This has led to an improvement of 38 basis points in operating margin to 5.65 percent.
Operating income for the quarter was $197.20 million, compared with $179.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $273.70 million compared with $257.50 million in the prior year period. At the same time, adjusted EBITDA margin improved 30 basis points in the quarter to 7.84 percent from 7.53 percent in the last year period.
"2016 was another year of strategic progress and strong financial performance, as we capitalized on market trends and delivered excellent profitability while continuing to invest in our future," said Thomas E. Richards, chairman and chief executive officer of CDW. "We achieved three key milestones in 2016. First, we surpassed $1.5 billion in customer spend on workloads delivered via the cloud. Second, we surpassed $1 billion in customer spend on security solutions. Finally, we generated more than $75 million in customer spend from US and UK referrals stemming from our acquisition of CDW UK in August, 2015."
Operating cash flow improves significantly
CDW Corporation has generated cash of $604 million from operating activities during the year, up 117.66 percent or $326.50 million, when compared with the last year.
The company has spent $65.90 million cash to meet investing activities during the year as against cash outgo of $354.40 million in the last year.
The company has spent $304.70 million cash to carry out financing activities during the year as against cash outgo of $226.50 million in the last year period.
Cash and cash equivalents stood at $263.70 million as on Dec. 31, 2016, up 601.33 percent or $226.10 million from $37.60 million on Dec. 31, 2015.
Working capital increases
CDW Corporation has recorded an increase in the working capital over the last year. It stood at $957.40 million as at Dec. 31, 2016, up 5.97 percent or $53.90 million from $903.50 million on Dec. 31, 2015. Current ratio was at 1.42 as on Dec. 31, 2016, down from 1.48 on Dec. 31, 2015.
Debt remains almost stable
CDW Corporation has recorded a decline in total debt over the last one year. It stood at $3,234.40 million as on Dec. 31, 2016, down 0.78 percent or $25.30 million from $3,259.70 million on Dec. 31, 2015. Total debt was 46.55 percent of total assets as on Dec. 31, 2016, compared with 48.25 percent on Dec. 31, 2015. Debt to equity ratio was at 3.09 as on Dec. 31, 2016, up from 2.97 as on Dec. 31, 2015. Interest coverage ratio improved to 5.82 for the quarter from 4.68 for the same period last year.
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