CDW sees net sales increase 7.2 percent

VERNON HILLS - CDW Corp. said net sales for the third quarter of 2015 were up 7.2 percent as the company benefited from the recent acquisition of UK-based IT solutions company Kelway.

Total net sales in the third quarter of 2015 were $3.501 billion, compared to $3.266 billion in the third quarter of 2014, Organic net sales growth, which excludes the impact of the acquisition of Kelway made during the quarter, was 3 percent.

"Solid organic operating results were amplified by lower interest expense and incremental earnings from the acquisition of UK IT solutions provider, Kelway, helping us deliver a 31 percent increase in non-GAAP net income per share in the quarter," said Ann E. Ziegler, CDW's chief financial officer.

Average daily sales in the third quarter of 2015 were $54.7 million, compared to $51.0 million in the third quarter of 2014. There were 64 selling days in the third quarters of both 2015 and 2014.

The results led to the board of directors approving a 59 percent increase in its quarterly dividend to shareholders.

"This quarter's performance reinforces our confidence in our strategy and supports today's dividend action," said Thomas E. Richards, chairman and chief executive officer of CDW. "Our new annual dividend rate of 43 cents per share is 59 percent higher than last year and more than double our initial 17 cents per share annual dividend following our IPO in June of 2013."

Ziegler added the company projects earnings for the remainder of the year to "exceed our non-GAAP earnings per share target of midteens growth in 2015 and now look for growth in the low twenties."