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Wesco International Annual Report, Year Ended Dec 30, 2000

Filing Date
Filed April 2, 2001
Period End
December 30, 2000
Security
WCC
In the record · 2016–202610-K1210-Q338-K143

WCC filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 143 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Mar ’18Mar ’18
  2. Deal closed8-K · Jun ’20Jun ’20
  3. Material agreement8-K · Mar ’22Mar ’22
  4. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed April 2, 2001. Cited figures are marked; the original filing is the authoritative source.

WESCO International, Inc. reported net sales of $3,881.1 milliona for 2000, up from $3,423.9 million in 1999, with net income of $33.4 million, or $0.70 per diluted share, compared with $24.6 million, or $0.53 per diluted share, in 1999.

The company describes itself as the second largest distributor in the $79 billionb U.S. electrical distribution industry and as the largest provider of Integrated Supply services for MRO goods in the United States. Growth came mainly from core operations, which the filing says rose almost 10%, with the rest attributable to acquired businesses. Results were held back by a $9.4 million restructuring charge in the fourth quarter, which included the closure of fourteen branches, and $11.4 million of other charges; excluding the restructuring charge, income before extraordinary item was $39.4 million, or $0.83 per diluted share.

Balance sheet and cash flow items warrant attention. Total long-term debt including current portion was $483.3 millionc at year-end 2000, mostly a $189.6 million revolving credit facility and $291.5 million of 9 1/8% senior subordinated notes. Operating cash flow was $46.9 million, and the company spent $40.9 million on acquisitions and $21.6 million on capital expenditures.

Stockholders' equity was $125.0 milliond, and the company repurchased about 3.3 million shares in 2000 for approximately $28.1 million. The filing states that no dividends were paid and none are intended in the foreseeable future.

In March 2001, WESCO completed the acquisition of Herning Underground Supply, Inc. and Alliance Utility Products, Inc., distributors of gas, lighting and communication utility products with 2000 net sales of approximately $112 million. The company also disclosed that in February 2001 it increased the amount of receivables sold under its securitization program to $396 million from $375 million.

02—Key points

Key Highlights

  1. Net sales rose 13.4% to $3.88 billion in 2000, with core operations contributing almost 10% growth according to the filing.
  2. Net income was $33.4 million, or $0.70 per diluted share, versus $24.6 million, or $0.53 per diluted share, in 1999.
  3. A $9.4 million fourth-quarter restructuring charge tied to closing fourteen branches and a $4.0 million investment write-down; excluding it, diluted EPS before extraordinary item was $0.83.
  4. Total long-term debt including current portion was $483.3 million at December 31, 2000, including $189.6 million under the revolving credit facility.
  5. Operating cash flow was $46.9 million, down from $66.4 million in 1999, and the company acquired three distributors for $40.9 million in cash during 2000.
  6. Integrated Supply, described as the largest such provider for MRO goods in the U.S., grew from more than $5 billion in 1997 to over $10 billion in 2000 per the filing.
  7. Herning Underground Supply and Alliance Utility Products, with 2000 net sales of approximately $112 million, were acquired in March 2001.

03—Questions

Frequently Asked Questions

  1. How profitable is WESCO relative to its sales base?

    In 2000 WESCO reported net income of $33.4 million on net sales of $3,881.1 million, and income from operations of $125.4 million, after a $9.4 million restructuring charge. Gross profit was $684.1 million, or 17.6% of net sales, and SG&A expenses were $524.3 million.

  2. Why did net income rise while operating cash flow fell?

    Net income rose to $33.4 million from $24.6 million in 1999, which included a $10.5 million extraordinary item. Operating cash flow fell to $46.9 million from $66.4 million, and the filing notes that 2000 and 1999 operating cash flow included $40.0 million and $60.0 million, respectively, from the sale of accounts receivable under the securitization program.

  3. How is WESCO's debt structured?

    At December 31, 2000, total debt was $483.3 million, consisting of $189.6 million under a revolving credit facility maturing in June 2004 and $291.5 million of senior subordinated notes. The filing states that the company was in compliance with its covenants at year-end.

  4. Does WESCO pay dividends or repurchase shares?

    WESCO paid no dividends and does not intend to pay them in the foreseeable future. Under its share repurchase program, the company bought approximately 3.9 million shares for about $32.8 million as of February 22, 2001, including 3.3 million shares for approximately $28.1 million in 2000.

  5. What did the company say about its outlook for 2001?

    The filing states that capital expenditures for 2001 are not expected to differ significantly from 2000, and that management believes cash from operations and available credit will be sufficient for working capital, capital expenditures and other cash requirements for the foreseeable future, while noting there can be no assurance of this.

04—Continue

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