CDW Corporation Announces 19 Percent Increase in Annual Dividend
VERNON HILLS, Ill. – May 11, 2005 - CDW Corporation (NASDAQ: CDWC), a leading provider of technology products and services to business, government and education, today announced that its Board of Directors declared an annual cash dividend of $0.43 per share, payable to common stock shareholders of record on June 16, 2005, with payment on June 30, 2005. The dividend amount represents an increase of 19 percent over the previous annual dividend of $0.36 per share, and is the company's third dividend payment since initiating a dividend in 2003. The company plans to announce any future dividend payments following the company's annual shareholders meeting, typically held in May.
"We are focused on returning profits to shareholders, and are pleased that our Board once again increased our cash dividend," said John A. Edwardson, chairman and chief executive officer.
"In addition to the dividend, which will return approximately $35 million to shareholders, we repurchased approximately $130 million of CDW stock during the first quarter of 2005. Following the Board's recent decision to increase the number of shares available for repurchase, we now have approximately 4.5 million shares available for purchase under our current program," said Edwardson. "These decisions reflect our continued commitment to strong financial performance, including the ability to generate significant cash flows and actively invest for future growth."
In July 2004, our Board of Directors authorized a share repurchase program of 3,988,200 shares of our common stock, comprised of 1,488,200 shares previously authorized for repurchase under a July 2003 program and authorization to repurchase an additional 2,500,000 shares. Under this repurchase program, we purchased 2,257,300 shares of our common stock at a total cost of $130.2 million (an average price of $57.69 per share) during the three month period ended March 31, 2005.
In April 2005, the Board of Directors authorized a share repurchase program of 4,529,600 shares of CDW common stock, comprised of 1,529,600 shares previously authorized for repurchase under the July 2004 program and authorization to repurchase an additional 3,000,000 shares. These purchases may be made from time to time in both open market and private transactions, as conditions warrant. This repurchase program is expected to remain in effect through April 2007, unless earlier terminated by the Board or completed.
Repurchased shares are held in treasury pending use for general corporate purposes, including issuances under various employee and director stock plans.
Forward Looking Statement
Any forward-looking statements contained in this release are based on the Company's beliefs and expectations as of the date of this release and are subject to certain risks and uncertainties which may have a significant impact on the Company's business, operating results or financial condition. Should any risk or uncertainty materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in forward-looking statements. Factors affecting the Company's business and prospects are discussed in the Company's filings with the Securities and Exchange Commission.
About CDW
CDW® (NASDAQ: CDWC), ranked No. 347 on the FORTUNE 500, is a leading provider of technology solutions for business, government and education. CDW is a principal source of technology products and services including top name brands such as Adobe, APC, Apple, Cisco, HP, IBM, Microsoft, Sony, Symantec, Toshiba and ViewSonic.
CDW was founded in 1984 and today employs approximately 4,000 coworkers. In 2004, the company generated net sales of approximately $5.7 billion. CDW's direct model offers one-on-one relationships with knowledgeable account managers; purchasing by telephone, fax, the company's award-winning CDW.com Web site, customized CDW@work™extranets, CDWG.com Web site and macwarehouse.com Web site; custom configured solutions and same day shipping; and pre- and post-sales technical support, with more than 120 factory-trained and A+ certified technicians on staff.
Additional information can be found by visiting CDW.com.
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