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WCC · Wesco International

50 filings

10-Q

WCC 10-Q Quarterly Reports

Wesco International - 50 quarterly reports

Filing record · 2016–202610-K1210-Q338-K144

WCC filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 144 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
  1. 2026-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2026

    Wesco International, Inc. reported strong third-quarter 2026 results, with net sales of $7,226.4 million, up 16.6% from $6,199.1 million a year earlier, and organic sales growth of 16.6%, driven by roughly 14% volume growth across all three segments and about 3% from price. Income from operations rose to $450.8 million from $345.4 million, and net income attributable to WESCO International, Inc. was $267.8 million, or $5.43 per diluted share, versus $187.5 million, or $3.79, a year earlier. The company's non-GAAP Adjusted EBITDA was $561.5 million, up 32.7% year over year. For the first nine months of 2026, net sales reached $19,971.6 million, up 14.5%, with organic sales growth of 13.9%, and diluted EPS was $12.77 versus $9.71. Cash flow and liquidity improved meaningfully. Net cash provided by operating activities for the nine months was $469.0 million, compared with $53.1 million in the prior-year period, largely due to higher accounts payable and customer advance payments, partly offset by higher receivables and inventories. Total debt was $6,058.2 million at September 30, 2026, and the financial leverage ratio improved to 2.8x from 3.4x at December 31, 2025. Liquidity was approximately $2.1 billion, including $433.1 million of available cash. During the period the company issued $650 million of 5.250% Senior Notes due 2031 and $850 million of 5.500% Senior Notes due 2034, used them to redeem its $1,325 million 7.250% Senior Notes due 2028, and extended and upsized its Receivables Facility and Revolving Credit Facility to 2029 and 2031, respectively. The company also completed the acquisition of Newark Engineering Group, a Singapore-based data center cooling provider, for $127.7 million net of cash acquired, and it continues to carry a loss contingency-related reversal of $49.0 million following resolution of a previously disclosed matter. The filing notes that IEEPA tariff refunds are not expected to materially affect the financial statements, and that the company's Digital and Data Platform implementation is ongoing with digital transformation costs of $24.8 million in the quarter.

    Oct 29, 2026
  2. 2026-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2026

    Wesco International, Inc. reported strong second-quarter 2026 results, with net sales of $6.67 billion for the three months ended June 30, 2026, up from $5.90 billion a year earlier, and net income attributable to WESCO International, Inc. of $209.0 million, or $4.23 diluted earnings per share, compared with $174.5 million in net income and $3.83 diluted EPS in the prior-year quarter (per-share figures for the prior year reflect net income attributable to common stockholders of $189.2 million). For the first six months of 2026, net sales were $12.75 billion, up 13.4% year over year, with organic sales growth of 12.5%, driven by volume growth across all three segments and led by the CSS segment's data center solutions business. Adjusted EBITDA was $487.2 million in the quarter and $876.0 million for the six months, and the financial leverage ratio improved to 3.0x as of June 30, 2026 from 3.4x at December 31, 2025. The balance sheet and capital structure changed meaningfully during the period. In February 2026, Wesco Distribution issued $650 million of 5.250% Senior Notes due 2031 and $850 million of 5.500% Senior Notes due 2034, and used the proceeds to redeem all $1,325 million of its 7.250% Senior Notes due 2028 on June 15, 2026. The filing states that this redemption is expected to create substantial net income, earnings per share, and cash flow benefits, and that no significant debt maturities remain until 2029. The company recognized a non-cash loss of $10.0 million on the redemption. Total debt was $5,985.9 million at June 30, 2026, and net cash provided by operating activities was $275.1 million for the six months, compared with $135.8 million a year earlier. Other items for investors include a July 1, 2026 acquisition of Newark Engineering Group for a base purchase price of approximately $135.0 million, and a Mexican tax assessment in which the Court issued a split decision mostly in favor of the government, with both parties appealing. The filing states that IEEPA tariff refunds are not expected to materially affect the financial statements. Quarterly stock repurchases totaled $25.3 million, and the company paid $24.4 million in common dividends per quarter at $0.50 per share.

    Jul 30, 2026
  3. 2026-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2026

    Wesco International, Inc. reported first-quarter 2026 net sales of $6.08 billion, up 13.8% from $5.34 billion in the first quarter of 2025, with organic sales growth of 12.3%. Growth was led by the CSS segment, where net sales rose 23.9% to $2.48 billion on data center and security demand, while EES net sales rose 8.7% to $2.24 billion and UBS rose 6.2% to $1.36 billion. Income from operations increased 21.8% to $293.5 million, and net income attributable to common stockholders was $153.8 million, or $3.11 per diluted share, compared with $104.0 million, or $2.10 per diluted share, a year earlier. Adjusted EBITDA was $388.8 million, up 25.1% year over year, and the financial leverage ratio improved to 3.2x from 3.4x at December 31, 2025. Cash from operations was $221.4 million, compared with $28.0 million in the prior-year quarter, driven mainly by a $105.7 million impact from changes in accounts payable. In February 2026, Wesco Distribution issued $650 million of 5.250% Senior Notes due 2031 and $850 million of 5.500% Senior Notes due 2034, and it exercised its right on April 29, 2026 to redeem the entire $1,325 million of 7.250% Senior Notes due 2028 on June 15, 2026. The company expects this redemption to create substantial net income, earnings per share, and cash flow benefit, and states that it will have no significant debt maturities until 2029. Management also noted that the company has not recorded any refund amounts related to IEEPA tariffs invalidated by the U.S. Supreme Court on February 20, 2026, because the availability and timing of refunds are uncertain. At March 31, 2026, the company reported liquidity of approximately $3.2 billion, combining $353.0 million of available cash with unused capacity under its receivables and revolving facilities. Approximately 92% of its debt was fixed rate. Management states it was in compliance with all financial covenants. Wesco also disclosed that a Mexican tax assessment of approximately $33.4 million, which it had not accrued, is still under evaluation following an unfavorable-to-be-determined court decision received on April 23, 2026.

    Apr 30, 2026
  4. 2025-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2025

    WESCO International, Inc. reported third-quarter 2025 net sales of $6.2 billion, up 12.9% from $5.5 billion a year earlier, with organic sales growth of 12.1%. Growth was driven by all three segments, led by Communications & Security Solutions (CSS), where net sales rose 20.8% on data center demand. Income from operations rose to $345.4 million from $335.6 million, an increase of 2.9%, but cost of goods sold as a percentage of net sales rose to 78.7% from 77.9% because of large project sales and higher inventory adjustments. Net income attributable to common stockholders was $187.5 million, or $3.79 per diluted share, compared with $189.9 million, or $3.81, a year earlier. Adjusted diluted earnings per share were $3.92, versus $3.58, and adjusted EBITDA was $423.0 million, up 6.3%. For the first nine months of 2025, net sales were $17.4 billion, up 6.9%, with organic sales up 8.3%. Net cash provided by operating activities fell sharply to $53.1 million from $824.6 million. The filing attributes the decline mainly to a $485.7 million impact from trade receivables and a $421.3 million impact from inventories, which were partly offset by a $196.1 million benefit from accounts payable. Inventories reached $4.06 billion at September 30, 2025, up from $3.50 billion at year-end 2024. During the period, WESCO issued $800 million of 6.375% senior notes due 2033 and used the proceeds to redeem all 21,612 shares of its Series A Preferred Stock for $540.3 million. Management states the company has no significant debt maturities until 2028 and about $1.6 billion of liquidity, including $258.6 million of cash. The financial leverage ratio rose to 3.5x from 2.9x at year-end 2024, and the company repurchased $75.0 million of common stock in the nine months.

    Oct 30, 2025
  5. 2025-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2025

    WESCO International, Inc. reported net sales of $5.9 billion for the second quarter of 2025, up 7.7% from $5.5 billion a year earlier, with organic sales growth of 7.2%. Growth was driven by the CSS segment, where net sales rose 19.0% (17.3% organic) on data center solutions, and the EES segment, where net sales rose 5.8%. The UBS segment declined 4.5% as utility customers destocked and spending was cautious amid tariff and market uncertainty. Gross margin pressure was evident: cost of goods sold was 78.9% of net sales versus 78.1% a year earlier, which the filing attributes to lower-margin large data center projects. Diluted EPS attributable to common stockholders was $3.83 versus $4.28, though adjusted diluted EPS rose to $3.39 from $3.21. Adjusted EBITDA was $394.2 million, down 1.5% year over year. For the first six months of 2025, net sales were $11.2 billion, up 3.8%, with organic growth of 6.4%. Operating cash flow fell sharply to $135.8 million from $522.5 million, reflected in a $575 million...

    Jul 31, 2025
  6. 2025-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2025

    Wesco International, Inc. reported first-quarter 2025 net sales of $5,343.7 million, essentially flat against $5,350.0 million in the first quarter of 2024, with organic sales growth of 5.6%. Growth was driven by the CSS segment, where net sales rose to $2,000.3 million on strong data center solutions activity, while the UBS segment declined to $1,278.1 million amid customer destocking and the April 2024 divestiture of its Wesco Integrated Supply business. Income from operations fell to $240.9 million from $263.0 million, and diluted EPS was $2.10 versus $1.95 a year earlier. Adjusted EBITDA declined to $310.7 million from $340.4 million, and adjusted diluted EPS was $2.21 versus $2.30. Cash generation weakened sharply, with net cash provided by operating activities of $28.0 million compared with $746.3 million a year earlier, reflecting a $227.4 million inventory build and a $188.7 million increase in trade receivables, partly offset by a $343.8 million rise in accounts payable. Financial leverage rose to 3.1x from 2.9x at year-end 2024. In March 2025 the company issued $800 million of 6.375% senior notes due 2033, with proceeds intended to redeem its Series A Preferred Stock in June 2025; the company expects this redemption to create a $30 million income benefit to common stockholders and substantial net income, EPS and cash flow benefits. Management states it was in compliance with all financial covenants and believes cash from operations and financing will be adequate for at least the next twelve months. The company reported approximately $2.4 billion of liquidity as of March 31, 2025, and repurchased $25.0 million of common stock during the quarter. Management also cited tariff-related actions, including price pass-throughs and supply chain re-engineering, as steps to address supplier price increases and tariff impacts.

    May 1, 2025
  7. 2024-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2024

    Wesco International, Inc. reported third-quarter 2024 net sales of $5.49 billion, down 2.7% from $5.64 billion a year earlier, with organic sales declining 0.6% as volume fell roughly 2% and price contributed roughly 2%. Income from operations was $335.6 million versus $380.5 million, and net income attributable to common stockholders was $189.9 million, or $3.81 per diluted share, compared with $4.20 a year earlier. Adjusted EBITDA was $398.1 million versus $457.0 million, and adjusted diluted EPS was $3.58 versus $4.49. Results were weighed down by volume declines in the UBS and EES segments, partly offset by growth in CSS, which rose 10.0% reported. For the first nine months of 2024, net sales were $16.3 billion, down 3.5%, and operating cash flow improved to $824.6 million from $423.9 million, driven largely by a $478.0 million increase in accounts payable. The company sold its Wesco Integrated Supply (WIS) business on April 1, 2024 for total consideration of $334.2 million, recording a $122.2 million gain for the nine months. It also refinanced its $1.5 billion 7.125% Senior Notes due 2025 with new $900 million 6.375% notes due 2029 and $850 million 6.625% notes due 2032, and repurchased $375.0 million of common stock in the period. At September 30, 2024, total debt was $5,068.5 million, cash was $706.8 million, and the financial leverage ratio was 2.9x. The company reported $1.2 billion of available Revolving Credit Facility capacity and $100.0 million under its Receivables Facility. Subsequent to quarter-end, on October 30, 2024, Wesco agreed to acquire Ascent, LLC, a data center services provider, for a base purchase price of $185.0 million, with closing expected in the fourth quarter of 2024.

    Oct 31, 2024
  8. 2024-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2024

    WESCO International, Inc. reported lower sales and operating profit for the second quarter and first six months of 2024. Net sales for the quarter were $5,479.7 million, down 4.6% from $5,745.5 million a year earlier, and organic sales declined 0.8%, reflecting an approximately 3% volume decline partly offset by price increases. Income from operations fell 11.1% to $323.5 million, and adjusted EBITDA was $400.1 million, down 9.5%. Diluted earnings per share attributable to common stockholders rose to $4.28 from $3.41, but this was helped by a $102.9 million gain on the divestiture of the Wesco Integrated Supply (WIS) business. Adjusted diluted EPS was $3.21 versus $3.71 in the prior-year quarter. For the first six months, net sales were $10,829.7 million, down 3.9%, and income from operations fell 17.4% to $586.5 million. Adjusted EBITDA was $740.5 million, down 14.2%, and diluted EPS was $6.22 versus $6.90. Operating cash flow improved sharply to $522.5 million from $62.2 million, driven mainly by a $341.9 million increase in accounts payable. The company sold the WIS business for $334.2 million in proceeds, acquired entroCIM for $30.1 million, and repurchased $350.0 million of common stock in the first half. On the balance sheet, the company issued $900 million of 6.375% senior notes due 2029 and $850 million of 6.625% senior notes due 2032 and used the proceeds to redeem its $1,500 million 7.125% senior notes due 2025. The financial leverage ratio was 2.9x at June 30, 2024, up from 2.8x at December 31, 2023, and management stated it was in compliance with all financial covenants. Total liquidity was approximately $1.5 billion, including $434.5 million of available cash.

    Aug 1, 2024
  9. 2024-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2024

    Wesco International, Inc. reported first-quarter 2024 net sales of $5.35 billion, down 3.1% from $5.52 billion a year earlier, with organic sales declining 3.2% on an approximately 4% volume decline partially offset by about 1% price. Income from operations fell to $263.0 million from $346.4 million, and diluted EPS was $1.95 versus $3.48. Adjusted EBITDA was $340.4 million, compared with $420.7 million, and adjusted diluted EPS was $2.30 versus $3.75 in the prior-year quarter. Results reflect restructuring, digital transformation and pension-related charges in the current period. Cash flow was strong: operating cash flow was $746.3 million, driven largely by a $620.9 million increase in accounts payable, versus cash used in operations of $255.4 million a year earlier. The company issued $900 million of 6.375% senior notes due 2029 and $850 million of 6.625% senior notes due 2032 in March 2024, and intends to use proceeds to redeem its 7.125% notes due 2025 on or after June 15, 2024. Financial leverage was 2.6x at March 31, 2024, down from 2.8x at December 31, 2023, and the company reported $984.1 million of cash and cash equivalents on its balance sheet. The company agreed to sell its Wesco Integrated Supply business, which closed April 1, 2024 for total consideration of approximately $338.3 million, with an expected second-quarter gain of $88.0 million to $108.0 million. The company also repurchased 343,147 shares for $50.5 million during the quarter and paid $20.9 million in common dividends and $14.4 million in preferred dividends.

    May 2, 2024
  10. 2023-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2023

    Wesco International, Inc. (WESCO) reported net sales of $5.64 billion for the third quarter of 2023, compared with $5.45 billion a year earlier, an increase of 3.6%. Organic sales grew 2.8%, with price changes favorably impacting organic sales by approximately 3%. Income from operations was $380.5 million versus $401.6 million, and net income attributable to common stockholders was $219.0 million, or $4.20 per diluted share, compared with $225.2 million, or $4.30, a year earlier. Adjusted EBITDA was $457.0 million versus $465.9 million, and the company cited higher interest expense of $98.5 million, up from $75.1 million, reflecting higher borrowings and increased variable interest rates. For the first nine months of 2023, net sales rose 6.6% to $16.9 billion, with organic sales growth of 5.3%, and diluted EPS was $11.08 versus $11.42. Operating cash flow was an inflow of $423.9 million, compared with a $410.6 million outflow in the prior-year period, and the company repaid $58.6 million of 5.50% Anixter Senior Notes at maturity. Total liquidity was $1,102.7 million at September 30, 2023, and the financial leverage ratio improved to 2.7 from 2.9 at December 31, 2022. The filing shows continued shareholder returns, including $50.0 million of share repurchases in the nine months, $57.6 million of common dividends, and $43.1 million of preferred dividends. Management stated it expects excess liquidity to go primarily toward debt reduction, digital transformation, dividends, the share repurchase authorization, or acquisitions, and that it believes liquidity will be adequate for at least the next twelve months.

    Nov 2, 2023
  11. 2023-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2023

    Wesco International, Inc. reported net sales of $5,745.5 million for the second quarter of 2023, up from $5,483.5 million a year earlier, and $11,267.4 million for the first six months of 2023 versus $10,415.7 million in the prior-year period. Net income attributable to common stockholders was $178.7 million for the quarter ($3.41 diluted EPS), compared with $206.3 million ($3.95 diluted EPS) in the second quarter of 2022. Income from operations was $363.8 million for the quarter versus $370.7 million a year earlier, and net interest expense rose to $98.8 million from $68.5 million, reflecting higher borrowings and higher variable interest rates. Adjusted EBITDA was $442.3 million for the quarter, compared with $444.4 million in the prior year. For the six months, operating cash flow was an inflow of $62.2 million, compared with a $304.5 million outflow in the prior-year period, mainly because of smaller increases in receivables and inventories. As of June 30, 2023, the company reported total debt of $5,576.5 million, $514.2 million of available Revolving Credit Facility capacity, and a financial leverage ratio of 2.8. Management stated the company was in compliance with all financial covenants as of June 30, 2023. Growth was driven by price increases and the Rahi Systems acquisition, which closed in November 2022, while the EES segment's organic sales declined. The company repaid $58.6 million of 5.50% Anixter Senior Notes at maturity and paid common and preferred dividends during the period.

    Aug 7, 2023
  12. 2023-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2023

    Wesco International, Inc. reported first-quarter 2023 net sales of $5.5 billion, up from $4.9 billion in the first quarter of 2022, an increase of 12.0%. Organic sales grew 10.8%, with the Rahi Systems acquisition (closed November 2022) adding 2.8% and foreign exchange reducing sales by 1.6%. Management attributes growth to price inflation, volume growth, secular demand trends, cross-selling, and an improving supply chain. Income from operations rose to $346.4 million from $284.0 million, and diluted earnings per share were $3.48 versus $3.19. Adjusted diluted EPS, excluding merger-related and integration costs, was $3.75 versus $3.63 in the prior-year period. Profitability was offset by higher interest expense, which rose to $95.0 million from $63.6 million, reflecting higher borrowings and increased variable interest rates. Operating cash flow was an outflow of $255.4 million, driven mainly by a $223.8 million increase in inventories and the payment of 2022 management incentive compensation. Total debt was $5.65 billion at March 31, 2023, and the financial leverage ratio was 3.0 compared with 2.9 at year-end 2022. Available liquidity was $654.8 million, and the company stated it was in compliance with all financial covenants. The company repaid its $58.6 million 5.50% Anixter Senior Notes at maturity on March 1, 2023, funded by its Revolving Credit Facility. It repurchased no shares under its publicly announced program during the quarter, with $988.9 million remaining under the $1 billion authorization. Shares surrendered for tax withholding totaled 316,801 in the quarter.

    May 5, 2023
  13. 2022-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2022

    Wesco International, Inc. reported strong third-quarter 2022 results, with net sales of $5.45 billion for the three months ended September 30, 2022, up 15.2% from $4.73 billion a year earlier, and organic sales growth of 16.9%. Income from operations rose to $401.6 million from $229.5 million, and net income was $240.2 million versus $120.2 million. Diluted earnings per share attributable to common stockholders were $4.30, compared with $2.02 in the prior-year quarter. For the first nine months of 2022, net sales were $15.9 billion, up 18.7%, and diluted EPS was $11.42. Adjusted diluted EPS for the nine months was $12.29, according to the filing's non-GAAP reconciliation. Cash flow was weaker in the period. Operating cash flow was an outflow of $410.6 million for the first nine months of 2022, driven mainly by a $886.3 million increase in inventories and a $737.6 million increase in trade accounts receivable, partly offset by a $479.6 million increase in accounts payable. The company said the inventory build addresses supply chain challenges and supports higher sales backlog. Total debt rose to $5.32 billion including the current portion, and the financial leverage ratio was 3.2 as of September 30, 2022, compared with 3.9 at December 31, 2021. The filing also describes subsequent events. On November 1, 2022, Wesco closed its acquisition of Rahi Systems Holdings, Inc. for a purchase price of $217 million paid in cash and borrowings under its receivables and revolving facilities. In October 2022, the company increased the purchase limit of its Receivables Facility to $1.625 billion and the revolving commitments to $1.725 billion. Management said supply chain disruptions and inflationary pressures are expected to continue through 2022 and may extend into 2023.

    Nov 4, 2022
  14. 2022-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2022

    Wesco International, Inc. (filed under this name; now WESCO International) reported a strong second quarter and first half of 2022. Net sales for the three months ended June 30, 2022 were $5.48 billion, up 19.3% from $4.60 billion, with organic sales growth of 20.9%. Net sales for the six months were $10.42 billion, up 20.6%, driven by price inflation, strong demand and expanded product and service offerings. Income from operations rose to $370.7 million for the quarter from $218.9 million and to $654.7 million for the six months from $352.1 million. Net income attributable to common stockholders was $206.4 million, or $3.95 per diluted share, for the quarter, versus $104.8 million, or $2.02, a year earlier. For the six months, diluted EPS was $7.15 versus $2.89. Adjusted diluted EPS for the six months was $7.82. Cash flow was weaker. Operating activities used $304.5 million in the first six months of 2022, compared with $102.8 million of cash provided in the prior-year period, as trade receivables rose $716.8 million and inventories rose $530.8 million, partly offset by a $534.3 million increase in accounts payable. Total debt was $5.17 billion, and the company reported a financial leverage ratio of 3.4 as of June 30, 2022, down from 3.9 at December 31, 2021. Liquidity was $571.4 million, including $117.3 million of cash. Management expects supply chain challenges and inflationary pressures to continue through the remainder of 2022 and possibly into 2023. After the quarter end, on August 2, 2022, the company increased the purchase limit of its Receivables Facility to $1,525 million and the commitments under its Revolving Credit Facility to $1,525 million. Preferred stock dividends of $14.4 million per quarter continued to be paid to Series A holders.

    Aug 5, 2022
  15. 2022-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2022

    Wesco International, Inc. reported first-quarter 2022 net sales of $4.93 billion, up 22.0% from $4.04 billion a year earlier, with organic sales growth of 21.2%. Income from operations rose to $284.0 million from $133.3 million, and net income was $181.6 million versus $59.2 million. Diluted earnings per share were $3.19, compared with $0.87 in the prior-year quarter. Management attributed the growth to strong demand, price inflation, the combination with Anixter, and secular trends in electrification, automation, communications and security. Adjusted diluted EPS, which excludes merger-related and integration costs and accelerated trademark amortization, was $3.63. Cash flow was weaker. Operating activities used $171.9 million in the quarter, driven mainly by a $324.6 million increase in trade receivables and a $214.2 million increase in inventories, partly offset by higher accounts payable. Cash and cash equivalents were $201.5 million at March 31, 2022, and management reported $715.4 million of total liquidity. The financial leverage ratio improved to 3.6 from 3.9 at year-end 2021. During the quarter, the company amended its Receivables Facility and Revolving Credit Facility on March 1, 2022. The Receivables Facility limit rose to $1.4 billion and its maturity was extended to March 2025. The Revolving Credit Facility commitments rose to $1.35 billion and its maturity was extended to March 2027. Management said supply chain issues reduced net sales by approximately 1% to 2% in the quarter and expects supply chain challenges and inflationary pressures to continue through 2022 and possibly into 2023.

    May 6, 2022
  16. 2021-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2021

    WESCO International, Inc. and its subsidiaries reported net sales of $4.73 billion for the third quarter of 2021, up from $4.14 billion a year earlier, and $13.37 billion for the first nine months of 2021, up from $8.20 billion. Results reflect the June 2020 acquisition of Anixter International Inc., with management citing broad-based sales growth, margin improvement initiatives and integration synergies. Income from operations was $229.5 million for the quarter versus $178.1 million, and $581.6 million year to date versus $254.3 million. Net income attributable to common stockholders was $105.2 million, or $2.02 per diluted share, for the quarter, and $254.9 million, or $4.91 per diluted share, for the nine months. Management also reported merger-related costs of $119.8 million for the nine months and accelerated trademark amortization of $20.2 million tied to a new master brand strategy. Cash flow was weaker in the nine months, with operating cash flow of $172.7 million, compared with $418.9 million a year earlier. Working capital absorbed cash, including a $521.5 million increase in trade receivables and a $428.4 million increase in inventories, partly offset by a $550.9 million increase in accounts payable. Total debt was reduced through the redemption of $500 million of 5.375% Senior Notes due 2021 and $350 million of 5.375% Senior Notes due 2024, funded largely by borrowings under the receivables and revolving credit facilities. The financial leverage ratio was 4.1 as of September 30, 2021, compared with a pro forma 5.3 at December 31, 2020, and liquidity totaled $844.6 million. Management stated that supply chain challenges and inflationary pressures are expected to continue through the remainder of 2021 and may extend into 2022, and that they estimated the supply chain effect on third-quarter net sales at approximately 1% to 2%. Pricing related to inflation favorably affected net sales by approximately 5% in the quarter.

    Nov 5, 2021
  17. 2021-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2021

    WESCO International, Inc. reported second-quarter 2021 net sales of $4.60 billion, up 120.2% from $2.09 billion a year earlier, driven primarily by the June 22, 2020 merger with Anixter International Inc. For the six months ended June 30, 2021, net sales were $8.64 billion, up 113.0%, and income from operations was $352.1 million, compared with $76.2 million in the prior-year period. Net income attributable to common stockholders was $104.8 million ($2.02 per diluted share) for the quarter, versus a net loss of $35.8 million in the second quarter of 2020. Results include merger-related costs of $37.7 million in the quarter and $84.0 million year to date, along with an $8.9 million net gain on the Canadian divestitures. Cash flow and balance sheet activity centered on deleveraging. Operating cash flow was $102.8 million for the six months, with a $372.3 million increase in trade receivables and a $268.3 million increase in inventories partly offset by a $474.9 million increase in accounts payable. WESCO redeemed its $500 million 5.375% Senior Notes due 2021 in January 2021 and called its $350 million 5.375% Senior Notes due 2024 for redemption on July 2, 2021 at 101.344% of principal, with a related $6.9 million loss on extinguishment to be recorded in the third quarter. The Receivables Facility was expanded to $1.3 billion and extended to June 2024. Management reported a financial leverage ratio of 4.5 as of June 30, 2021, compared with 5.3 at December 31, 2020, and stated that it was in compliance with all debt covenants. The company also disclosed a write-down of $8.0 million on personal protective equipment inventory in the second quarter and $16.9 million for the six months, and announced a master brand strategy that will accelerate amortization of certain legacy trademarks. Management expects 2021 capital expenditures of $100 million to $120 million and states that liquidity of $1.1 billion, including $873.1 million of Revolving Credit Facility availability, is adequate for at least the next twelve months.

    Aug 6, 2021
  18. 2021-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2021

    WESCO International, Inc. and its subsidiaries, headquartered in Pittsburgh, Pennsylvania, reported first-quarter 2021 results that reflect the June 22, 2020 merger with Anixter International Inc. Net sales were $4.04 billion for the three months ended March 31, 2021, compared with $1.97 billion a year earlier, an increase of 105.3%. Income from operations was $133.3 million, versus $60.9 million, and net income attributable to common stockholders was $44.8 million, or $0.87 per diluted share, compared with $34.4 million, or $0.82 per diluted share. Adjusted for merger-related costs, a net gain on Canadian divestitures and related tax effects, adjusted diluted EPS was $1.43, compared with $0.91 in the prior-year period. Management cited the Anixter merger, margin improvement initiatives and cost reduction actions as the main drivers. Cash flow from operations was $120.5 million, compared with $31.5 million a year earlier. Cash and cash equivalents fell to $303.9 million from $449.1 million at December 31, 2020, after the January 2021 redemption of $500 million of 5.375% Senior Notes due 2021. Total debt was $4.69 billion at March 31, 2021, and the pro forma financial leverage ratio was 4.9, down from 5.3 at December 31, 2020. Liquidity was $1.0 billion, including $686.9 million of available revolving credit capacity and $214.0 million under the Receivables Facility. Management expects 2021 capital expenditures of $100 million to $120 million and says excess liquidity will be directed mainly to debt reduction and integration activities. The filing also discloses ongoing COVID-19 uncertainty, a book-to-bill ratio above 1.0 at quarter end, and backlog growth in the double digits since year-end 2020. Series A preferred stock dividends of $14.4 million reduced net income available to common stockholders.

    May 7, 2021
  19. 2020-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2020

    WESCO International, Inc. filed its third-quarter 2020 Form 10-Q following its June 22, 2020 acquisition of Anixter International Inc. Net sales for the three months ended September 30, 2020 were $4.14 billion, up from $2.15 billion a year earlier, and the company attributes the increase to the Anixter merger, partially offset by COVID-19 demand weakness. Net income attributable to common stockholders was $66.2 million, or $1.31 per diluted share, compared with $64.5 million, or $1.52 per diluted share, in the prior-year quarter. Income from operations was $178.1 million, and the company's adjusted EBITDA was $252.0 million, a non-GAAP measure reconciled in the filing. Balance sheet and leverage changed substantially. Total assets rose to $11.87 billion from $5.02 billion at December 31, 2019, and long-term debt rose to $4.88 billion from $1.26 billion, largely from $4.66 billion of debt proceeds in the first nine months. The filing reports a pro forma financial leverage ratio of 5.3 as of September 30, 2020, versus 2.6 as reported at December 31, 2019. The company also issued Series A preferred stock in the merger, which drove $14.5 million of preferred dividends in the quarter. Management states it expects COVID-19 to continue to weigh on results for the rest of 2020 and potentially longer, and it is divesting legacy Canadian utility and datacom businesses under a Competition Bureau consent agreement. The company reorganized into three segments (Electrical & Electronic Solutions, Communications & Security Solutions, and Utility & Broadband Solutions). Goodwill of $3.12 billion was tested and not impaired, but the filing notes that the EES reporting unit's fair value exceeded its carrying value by less than 10%, so future impairment risk remains if conditions deteriorate.

    Nov 9, 2020
  20. 2020-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2020

    WESCO International, Inc. filed this Form 10-Q for the quarter ended June 30, 2020, the period in which it completed its acquisition of Anixter International Inc. on June 22, 2020. Net sales for the second quarter were $2,086.7 million, down from $2,150.1 million a year earlier, and included $221.9 million from Anixter for the nine days after closing. The company reported a net loss attributable to common stockholders of $35.8 million, or $(0.84) per diluted share, versus net income of $63.5 million ($1.45 per diluted share) in the prior-year quarter. The results reflect $73.3 million of merger-related transaction costs in SG&A and $44.7 million of merger-related financing and interest costs. Excluding these items, the filing cites adjusted earnings per diluted share of $1.36 for the quarter. The balance sheet changed substantially. Total assets rose to $11.73 billion from $5.02 billion at December 31, 2019, and long-term debt increased to $5.07 billion from $1.26 billion. To fund the merger, the company issued $1.5 billion of 7.125% Senior Notes due 2025 and $1.325 billion of 7.250% Senior Notes due 2028, entered a $1.1 billion revolving credit facility, and amended its receivables facility to a $1.025 billion purchase limit. The filing reports a pro forma financial leverage ratio of 5.7 as of June 30, 2020, compared with 2.6 as reported at December 31, 2019, and $584.8 million of available revolver capacity. Management states that COVID-19 has significantly affected results and expects negative impacts to continue into the third quarter, potentially longer. The company also disclosed a Canadian Competition Bureau consent agreement, dated August 6, 2020, requiring divestiture of legacy WESCO Utility and Datacom businesses in Canada with about $150 million of 2019 sales, with proceeds to repay debt. Integration of Anixter's controls and operations is ongoing, and the company plans to restructure its reportable segments into three strategic business units.

    Aug 17, 2020
  21. 2020-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2020

    WESCO International, Inc. reported first-quarter 2020 net sales of $1,968.6 million, up $7.4 million, or 0.4%, from $1,961.3 million in the first quarter of 2019. Management said organic sales declined 1.7%, with workday and acquisition effects adding 1.6% and 0.5%. Net income attributable to WESCO fell to $34.4 million from $42.4 million, and diluted earnings per share were $0.82 versus $0.93. Excluding $4.6 million of merger-related transaction costs, adjusted diluted EPS was $0.91. Income from operations was $60.9 million, compared with $70.7 million a year earlier. Management said sales grew through the first ten weeks of the quarter but declined in the last two weeks of March, and that COVID-19 has created an uncertain operating environment. The quarter was dominated by the pending merger with Anixter International Inc. Under the January 10, 2020 merger agreement, Anixter holders would receive $70.00 in cash (subject to a possible increase of up to $2.82 per share), 0.2397 WESCO common shares, and 0.6356 depositary shares representing WESCO Series A preferred stock. The implied per-share value was $94.91 on April 30, 2020, compared with $100.00 on January 10, 2020. WESCO paid a $100 million termination fee to CD&R on Anixter's behalf, which is recorded in prepaid expenses and other current assets. The filing says completion is expected in the second or third calendar quarter of 2020, and that clearance under Canadian antitrust law remained outstanding. Balance sheet and liquidity changed meaningfully. Cash rose to $342.6 million from $150.9 million, partly because WESCO drew $100 million on its revolving credit facility as a precaution. Long-term debt increased to $1,542.6 million from $1,257.1 million. Total liquidity was $731.8 million, and the financial leverage ratio rose to 3.1 from 2.8. Operating cash flow was $31.5 million. The company also recorded a goodwill and indefinite-lived intangible interim impairment test with no impairment losses, although two reporting units with goodwill of $261.3 million and $524.9 million had estimated fair values that exceeded carrying values by less than 5%.

    May 1, 2020
  22. 2019-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2019

    WESCO International, Inc. reported third-quarter 2019 net sales of $2.148 billion, up 3.9% from $2.067 billion a year earlier, with organic sales growth of 3.4%. Net income attributable to WESCO International was $64.5 million, or $1.52 per diluted share, compared with $66.8 million, or $1.41 per diluted share, in the third quarter of 2018. For the first nine months of 2019, net sales were $6.259 billion versus $6.165 billion, and net income attributable to WESCO was $170.3 million, or $3.88 per diluted share, compared with $169.2 million, or $3.56 per diluted share. Gross margin pressure was visible: cost of goods sold was 81.4% of net sales in the quarter versus 80.8% a year earlier, which the company attributed to unfavorable business mix and supplier price increases. Cash generation weakened in the nine-month period. Operating cash flow was $116.7 million versus $174.5 million in the prior-year period, mainly reflecting a $122.9 million increase in trade accounts receivable. The company repurchased $152.7 million of common stock and acquired Sylvania Lighting Services for $27.7 million in cash. Total debt rose, with long-term debt of $1.346 billion at September 30, 2019 versus $1.167 billion at December 31, 2018, and the financial leverage ratio increased to 3.0 from 2.7. Liquidity totaled $723.0 million, including $551.5 million of available capacity under the Revolving Credit Facility. The company adopted the new lease standard (ASC 842) on January 1, 2019, recognizing operating lease assets of about $240 million and lease liabilities of about $245 million. In September 2019, WESCO amended its Revolving Credit Facility to $600 million, maturing in September 2024, and extended its Receivables Facility to $600 million, maturing in September 2022. Management reported no material changes to market risk or risk factors and concluded that internal controls were effective.

    Nov 1, 2019
  23. 2019-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2019

    WESCO International, Inc. and subsidiaries reported net sales of $2,150,088 thousand ($2.15 billion) for the second quarter of 2019, compared with $2,103,994 thousand in the second quarter of 2018, an increase of 2.2%. Net income attributable to WESCO International, Inc. was $63,464 thousand ($1.45 diluted EPS), versus $57,940 thousand ($1.22 diluted EPS) a year earlier. For the six months ended June 30, 2019, net sales were $4.11 billion, essentially flat with the prior-year period, and net income attributable to WESCO was $105.8 million ($2.37 diluted EPS). Operating cash flow was negative $8.8 million for the first six months of 2019, compared with $86.8 million provided in the prior-year period, primarily due to a $157.4 million increase in trade accounts receivable. Balance sheet and capital allocation changes were significant during the period. Total assets rose to $5.07 billion at June 30, 2019 from $4.61 billion at December 31, 2018, and total liabilities increased to $2.93 billion from $2.48 billion. Long-term debt increased to $1.40 billion from $1.17 billion. The company paid $152.7 million to repurchase common stock, including a $150.0 million accelerated stock repurchase transaction that had not yet settled as of June 30, 2019. The company reported a financial leverage ratio of 3.4 at June 30, 2019, versus 3.0 at December 31, 2018, and stated it was in compliance with all debt covenants. The company adopted the new lease standard (ASU 2016-02) effective January 1, 2019, recognizing operating lease assets of $233,403 thousand and operating lease liabilities of $238,201 thousand at June 30, 2019. The company also acquired Sylvania Lighting Services Corp. on March 5, 2019 for $27.7 million in cash, and reported liquidity of $586.7 million at quarter end.

    Aug 2, 2019
  24. 2019-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2019

    WESCO International, Inc. reported first-quarter 2019 net sales of $1,961,267 thousand (about $1.96 billion), compared with $1,993,915 thousand in the first quarter of 2018. Net income attributable to WESCO International was $42,369 thousand, versus $44,421 thousand a year earlier, and diluted earnings per share were $0.93 in both periods. The filing states that operating profit decreased to $70.7 million from $73.2 million, primarily due to higher SG&A expenses, which rose to 15.1% of net sales from 14.6%. Gross margin improved, with cost of goods sold at 80.5% of net sales versus 80.9% a year earlier, and the company cited foreign exchange headwinds, adverse weather and one less work day. Cash generation and liquidity were weaker in the quarter. Operating cash flow was $28.9 million versus $53.0 million in the prior-year period, and free cash flow was $18.1 million versus $45.3 million. Accounts receivable and inventory increases absorbed cash, partly offset by higher accounts payable. Total assets rose to $4.98 billion at March 31, 2019 from $4.61 billion at December 31, 2018, largely reflecting the adoption of the new lease standard (operating lease assets of $232,989 thousand). The financial leverage ratio was 3.0, and the company stated it was in compliance with its debt covenants. Available liquidity was $780.9 million, including $533.7 million under the Revolving Credit Facility and $210.0 million under the Receivables Facility. During the quarter WESCO acquired Sylvania Lighting Services Corp. (SLS) for $27.7 million in cash, a business the filing describes as having annual sales of approximately $100 million. The company repurchased shares, including 365,272 shares received under an accelerated stock repurchase agreement, and the remaining repurchase authorization was $275.0 million. Management expects 2019 capital expenditures to be similar to 2018 and plans to direct excess cash toward growth, acquisitions, debt reduction and share repurchases.

    May 3, 2019
  25. 2018-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2018

    WESCO International, Inc. filed this Form 10-Q for the quarter ended September 30, 2018. For the nine months ended September 30, 2018, net sales were $6.17 billion versus $5.68 billion in the prior-year period, an increase of 8.5%, with organic sales growth of 7.9%. Income from operations was $261.9 million compared with $238.1 million, and net income attributable to WESCO International was $169.2 million ($3.56 diluted EPS) versus $140.9 million ($2.90 diluted EPS). For the third quarter, net sales were $2.07 billion, up 3.4%, and diluted EPS was $1.41 versus $1.12 a year earlier. Cash generation was strong. Operating cash flow was $174.5 million for the nine months, compared with $81.1 million a year earlier, and free cash flow was $150.8 million. Total debt fell to $1.27 billion from $1.36 billion at December 31, 2017, and the financial leverage ratio improved to 3.1 from 3.6. Liquidity was $827.6 million at quarter-end, including $562.8 million of revolver availability and $185.0 million under the receivables facility. The company repurchased $25.0 million of stock under an accelerated share repurchase, and on October 31, 2018 its board raised the 2017 repurchase authorization from $300 million to $400 million. The filing reports a bad debt charge tied to a Canadian customer that ceased operations, and the effective tax rate fell to 19.3% for the nine months, reflecting the Tax Cuts and Jobs Act. Management reports no material changes to risk factors or market risk exposures from the 2017 Form 10-K, and no material adverse effect expected from pending litigation.

    Nov 2, 2018
  26. 2018-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2018

    WESCO International, Inc. reported higher sales and earnings for the second quarter and first six months of 2018. Net sales for the second quarter were $2.10 billion, up from $1.91 billion, and the company stated an increase of 10.2%, with organic sales growth of 9.0%. For the first six months, net sales rose 11.3% to $4.10 billion, and the company attributed the growth to sales increases in all end markets and geographies. Net income attributable to WESCO International was $58.0 million, or $1.22 diluted earnings per share, for the quarter, compared with $49.5 million, or $1.02 per share, a year earlier. For the six months, diluted earnings per share were $2.15, compared with $1.78. The company cited the Tax Cuts and Jobs Act as the main reason its effective tax rate fell to 21.5% for the quarter and 20.7% for the six months. Cash flow improved, with operating cash flow of $86.8 million for the six months, compared with $66.8 million, and free cash flow of $70.4 million, compared with $57.0 million. Cash and cash equivalents were $110.9 million at June 30, 2018. Total debt was reduced during the period through revolver and receivables facility activity, and the financial leverage ratio improved to 3.3 from 3.6 at December 31, 2017. The company reported $559.8 million of available revolving credit capacity and $155.0 million of availability under its receivables facility, and said it was in compliance with its debt covenants. SG&A expenses rose to $292.9 million for the quarter, reflecting higher payroll and transportation costs and a $2.5 million bad debt charge related to a Canadian customer that ceased operations. Cost of goods sold as a percentage of net sales was 81.0% for both the quarter and the six months, up from 80.8% and 80.6%, respectively, due to business mix, a reclassification of labor costs, and product cost inflation. Management stated that it expects 2018 capital expenditures to exceed 2017 levels.

    Aug 3, 2018
  27. 2018-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2018

    WESCO International, Inc. reported first-quarter 2018 net sales of $1,993.9 million, up from $1,772.6 million a year earlier, an increase the filing states as 12.5%. Organic sales growth was 10.9%, and foreign exchange rates added 1.6%. The filing says sales grew in all end markets and geographies, with favorable operating leverage partly offset by unfavorable business mix. Income from operations rose to $73.2 million from $66.6 million, and net income attributable to WESCO International, Inc. increased to $44.4 million, or $0.93 per diluted share, compared with $37.7 million, or $0.76 per diluted share. Cost of goods sold rose to 80.9% of net sales from 80.3%, which the filing attributes to business mix, a challenging pricing environment, and a reclassification of certain labor costs from SG&A. The lower effective tax rate of 19.6%, compared with 25.0% a year earlier, was primarily due to the Tax Cuts and Jobs Act of 2017, which reduced the U.S. federal statutory rate from 35% to 21%. Net interest and other expense rose to $19.8 million, including a $3.0 million foreign exchange loss on remeasurement of a financial instrument. Cash flow and liquidity were solid. Operating cash flow was $53.0 million and free cash flow was $45.3 million, compared with $43.1 million a year earlier. As of March 31, 2018, the company reported $576.4 million of available borrowing capacity under its Revolving Credit Facility, $160.0 million under its Receivables Facility, and total liquidity of $813.0 million. The financial leverage ratio was 3.5 times, down from 3.6 times at December 31, 2017. Management said it expects to direct excess cash toward growth initiatives, acquisitions, debt reduction, and share repurchases, and expects 2018 capital expenditures to be higher than in 2017.

    May 4, 2018
  28. 2017-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2017

    WESCO International, Inc. reported third-quarter 2017 net sales of $2.00 billion, up from $1.86 billion a year earlier, a 7.8% increase that included 8.6% organic growth. Net income attributable to WESCO was $53.7 million, or $1.12 per diluted share, compared with a net loss of $31.6 million, or $0.73 per diluted share, in the third quarter of 2016. That prior-year loss was driven by a $123.9 million loss on the early redemption of the 2029 Debentures. For the nine months, net sales were $5.68 billion, up 2.5%, and net income attributable to WESCO was $140.9 million, or $2.90 per diluted share. Cost of goods sold rose to 80.6% of net sales from 80.2%, which management attributed to business mix and a challenging pricing environment. SG&A expenses were 14.3% of net sales, and the company cited higher SG&A payroll expenses. Cash generation weakened in 2017. Operating cash flow for the nine months was $81.1 million, versus $217.2 million a year earlier, and free cash flow was $65.1 million, versus $204.0 million. Management attributed the lower cash flow to a $174.7 million increase in trade accounts receivable, driven by higher sales late in the period, and an $86.7 million increase in inventories. The company repurchased $106.7 million of common stock in the nine months, including $100.0 million under its program, leaving $50.0 million available under the $300 million authorization that runs through December 31, 2017. Financial leverage was 3.7 at September 30, 2017, up from 3.5 at December 31, 2016, and liquidity was $742.4 million. The filing also revises the December 31, 2016 balance sheet. Management determined that income tax receivable and payable balances were overstated by a cumulative $46.4 million across multiple prior periods, and it concluded the errors were not material to prior reports. Total stockholders' equity at December 31, 2016 was revised from $2.01 billion to $1.96 billion. The company disclosed an ongoing Delaware unclaimed property audit and a New York County District Attorney criminal investigation involving minority and disadvantaged business contracting, for which it has recorded liabilities.

    Nov 3, 2017
  29. 2017-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2017

    WESCO International, Inc. reported essentially flat top-line results for the second quarter of 2017. Net sales were $1.91 billion, compared with $1.91 billion in the second quarter of 2016, and net income attributable to WESCO was $49.5 million, or $1.02 per diluted share, in both periods. For the six months ended June 30, 2017, net sales were $3.68 billion, a decrease of 0.1% from $3.69 billion. Cost of goods sold rose to 80.6% of net sales from 80.1%, while SG&A fell to 14.5% of net sales from 14.7%. Operating profit declined to $150.2 million from $157.5 million, partly offset by lower interest expense of $33.5 million versus $38.3 million. Cash generation weakened in the first half of 2017. Operating cash flow was $66.8 million compared with $138.6 million a year earlier, mainly because trade accounts receivable increased $96.0 million on higher late-period sales. Free cash flow was $57.0 million versus $131.5 million. WESCO repurchased $56.7 million of common stock, including a $50.0 million accelerated stock repurchase under which it received 804,291 shares. At June 30, 2017, the company reported $750.6 million of liquidity, a financial leverage ratio of 3.5, and total debt of $1.38 billion on total assets of $4.62 billion. The filing also discloses an ongoing Delaware unclaimed property compliance audit of WESCO Distribution and a New York County District Attorney criminal investigation involving minority and disadvantaged business contracting, in which WESCO has said it cannot estimate potential exposure.

    Aug 4, 2017
  30. 2017-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2017

    WESCO International, Inc. reported net sales of $1.77 billion for the first quarter of 2017, compared with $1.78 billion in the first quarter of 2016, a decrease of 0.2%. Organic sales declined 1.7%, with acquisitions (including Atlanta Electrical Distributors, LLC) and foreign exchange adding 0.9% and 0.6%, respectively. Cost of goods sold rose to 80.3% of net sales from 80.0%, while SG&A expenses fell to 15.1% of net sales from 15.2%, helped by prior-year headcount reductions and branch consolidations. Income from operations was $67.1 million versus $69.5 million a year earlier. Net income attributable to WESCO International, Inc. was $37.7 million, or $0.76 per diluted share, compared with $36.0 million, or $0.77 per diluted share, in the prior-year quarter. The effective tax rate fell to 25.0% from 31.9%, aided by a discrete benefit from the adoption of ASU 2016-09. Cash generation weakened. Operating cash flow was $47.6 million compared with $78.6 million, and free cash flow was $43.1 million compared with $75.0 million, reflecting higher inventories and receivables and a payout of 2016 management incentive compensation. Cash and cash equivalents were $103.0 million at March 31, 2017. Total liquidity was $727.2 million, including $518.4 million of available borrowing capacity under the Revolving Credit Facility and $153.8 million under the Receivables Facility. The financial leverage ratio improved to 3.4 from 3.5 at year-end 2016, and approximately 63% of the debt portfolio was fixed-rate. Stockholders' equity rose $47.5 million to $2.06 billion. The filing discloses two open legal matters: a Delaware compliance audit of unclaimed property at WESCO Distribution, for which the Company has recorded a liability, and a New York County District Attorney criminal investigation into minority and disadvantaged business contracting practices, in which the Company cannot estimate a range of potential exposure. Management states that no material changes to risk factors or market risk disclosures were made since the 2016 Form 10-K.

    May 5, 2017
  31. 2016-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2016

    WESCO International, Inc. reported a third quarter 2016 net loss attributable to WESCO of $31.6 million, or $0.73 per share, compared with net income of $63.5 million, or $1.28 per diluted share, in the third quarter of 2015. Net sales were $1.86 billion versus $1.92 billion a year earlier, a decrease of 3.6%, and normalized organic sales fell 6.2%. The loss was driven by a non-cash $123.9 million loss on debt redemption tied to the early redemption of the 6.0% Convertible Senior Debentures due 2029 on September 15, 2016. Excluding that loss, adjusted net income attributable to WESCO was $51.1 million, or $1.05 per diluted share, for the quarter. For the first nine months of 2016, net sales were $5.54 billion, down 2.0% from $5.66 billion, and normalized organic sales decreased 5.4%. Net income attributable to WESCO was $54.2 million, or $1.13 per diluted share, versus $162.3 million, or $3.16 per diluted share, in the prior-year period. Operating cash flow was $217.2 million and free cash flow was $204.0 million for the nine months. Cash and cash equivalents were $112.8 million at September 30, 2016, and the financial leverage ratio improved to 3.6 from 3.8 at December 31, 2015. The company issued $350 million of 5.375% Senior Notes due 2024 in June 2016 and used the proceeds to redeem the 2029 Debentures, which had $177.8 million carrying value at December 31, 2015. Total stockholders' equity rose to $1.99 billion. The company also completed the acquisition of Atlanta Electrical Distributors, LLC, which had approximately $85 million in annual sales, for net cash of $50.7 million for the nine months. Management reported that it is in compliance with all debt covenants and that the company is the subject of a Delaware unclaimed property audit and a New York County District Attorney investigation, with no estimate of exposure given for the latter.

    Nov 4, 2016
  32. 2016-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2016

    WESCO International, Inc. reported second-quarter 2016 net sales of $1,911.6 million, compared with $1,916.7 million in the second quarter of 2015, and net income attributable to WESCO International, Inc. of $49.8 million, or $1.02 per diluted share, versus $51.7 million, or $1.00 per diluted share, a year earlier. For the first six months of 2016, net sales were $3,687.5 million versus $3,733.0 million, and net income attributable to the company was $85.9 million, or $1.79 per diluted share, compared with $98.8 million, or $1.90 per diluted share. The filing attributes the lower operating profit mainly to unfavorable business mix, partly offset by cost controls. Cost of goods sold was 80.1% of net sales in the first half of 2016, up from 79.9% a year earlier. Cash generation was solid, with operating cash flow of $138.6 million for the first six months of 2016 and free cash flow of $131.5 million. Total debt was $1,589.4 million at June 30, 2016, and the financial leverage ratio was 3.8. In June 2016, WESCO Distribution, Inc. issued $350 million of 5.375% Senior Notes due 2024, with proceeds intended to repay the 6.0% Convertible Senior Debentures due 2029 once they become redeemable on or after September 15, 2016. Available liquidity was $997.2 million, including $507.7 million of revolver availability and $374.9 million of receivables facility availability. The company also acquired Atlanta Electrical Distributors, LLC in March 2016, which the filing describes as having approximately $85 million in annual sales. Management reported that the company is subject to a Delaware unclaimed property audit and a New York County District Attorney investigation involving minority and disadvantaged business contracting, with no estimate of potential exposure given for the latter.

    Aug 8, 2016
  33. 2016-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2016

    WESCO International, Inc. reported first-quarter 2016 net sales of $1,775,961 thousand (about $1.78 billion), down from $1,816,330 thousand in the first quarter of 2015. Net sales decreased $40.4 million, or 2.2%, and normalized organic sales growth was negative 6.7%, with foreign exchange reducing sales by 2.6%. Operating profit fell to $69.5 million from $87.2 million, which the company attributed mainly to lower sales volume, lower supplier volume rebates, and higher variable compensation costs, partly offset by cost controls. Net income attributable to WESCO International, Inc. was $36.0 million, or $0.77 per diluted share, compared with $47.0 million, or $0.90 per diluted share, a year earlier. Cash flow and liquidity were comparatively steady. Operating cash flow was $78.6 million, and free cash flow was $75.0 million. The company spent $50.3 million, net of cash acquired, on the acquisition of Atlanta Electrical Distributors, LLC, which had approximately $85 million in annual sales. At quarter end, the company had $147.8 million in cash, $407.3 million of available capacity under its Revolving Credit Facility, and a financial leverage ratio of 3.8. Total debt was $1,620.9 million on a total debt basis. The filing also discloses a pending criminal investigation by the New York County District Attorney's Office involving minority and disadvantaged business contracting practices, in which the company cannot reasonably estimate potential exposure. A Delaware unclaimed property audit is ongoing, and the company has recorded a liability based on known facts. On May 3, 2016, the company announced the resignation of its Chief Financial Officer, effective May 31, 2016, and an interim CFO has been appointed.

    May 6, 2016
  34. 2015-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2015

    WESCO International, Inc. reported third-quarter 2015 net sales of $1.92 billion, down 7.4% from $2.08 billion a year earlier, with normalized organic sales decreasing 5.3%. Net income attributable to WESCO was $63.5 million, or $1.28 per diluted share, versus $80.8 million, or $1.52 per diluted share, in the third quarter of 2014. For the nine months, net sales were $5.66 billion, down 4.0%, and net income attributable to WESCO was $162.3 million, or $3.16 per diluted share. The filing attributes the decline to continued weakness in commodity-driven end markets, unfavorable foreign currency changes, lower supplier volume rebates, business mix and competitive pricing pressure, partly offset by cost reduction actions. Operating cash flow for the nine months was $176.0 million, and free cash flow was $159.8 million. The company repurchased $150.0 million of common stock during the nine months, including a $75.0 million accelerated stock repurchase in the third quarter, and total debt including discount rose to $1.67 billion. The financial leverage ratio increased to 3.5 from 3.0 at December 31, 2014. Stockholders' equity fell to $1.76 billion, largely due to $183.6 million of foreign currency translation losses. In September 2015, WESCO refinanced its credit facilities, entering a $600 million revolving credit facility maturing in September 2020 and amending its receivables facility to $550 million maturing in September 2018. Liquidity totaled $520.2 million at quarter end. The company also disclosed a pending New York County District Attorney investigation related to minority and disadvantaged business contracting practices, for which it cannot estimate a range of exposure, and a Delaware unclaimed property audit.

    Oct 30, 2015
  35. 2015-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2015

    WESCO International, Inc. and subsidiaries reported net sales of $1,916,718 thousand ($1.9 billion) for the second quarter of 2015, versus $2,005,165 thousand in the second quarter of 2014. Net income attributable to WESCO International, Inc. was $51,741 thousand, or $1.00 diluted EPS, compared with $68,802 thousand, or $1.29 diluted EPS, a year earlier. For the six months ended June 30, 2015, net sales were $3.7 billion, a decrease of $82.9 million, or 2.2%, and operating profit was $177.4 million versus $208.8 million. Management attributed the decline to reduced demand in commodity-driven end markets, unfavorable foreign currency movements, lower sales volume, lower supplier volume rebates, business mix and competitive pricing pressure. Cost of goods sold rose to 79.9% of net sales for the first half from 79.4%, while SG&A rose to 14.5% from 14.3%. Cash flow improved, with operating cash flow of $132.6 million for the first six months of 2015 versus $50.8 million a year earlier, and free cash flow of $120.0 million versus $39.0 million. The company acquired Hill Country Electric Supply, LP on May 1, 2015, and repurchased $80.7 million of common stock during the six months. Cash and cash equivalents were $174.3 million at June 30, 2015, and the financial leverage ratio was 3.3, up from 3.0 at December 31, 2014. The company also settled the ArcelorMittal Indiana Harbor litigation in April 2015 with no net effect on its financial condition or results of operations, and it disclosed an ongoing New York County District Attorney investigation and a Delaware unclaimed property audit. As of June 30, 2015, the company had $433.4 million of available borrowing capacity under its Revolving Credit Facility, and total stockholders' equity was $1.9 billion after decreasing $62.2 million, mainly due to $88.3 million of foreign currency translation adjustments and the $75.0 million share repurchase.

    Jul 31, 2015
  36. 2015-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2015

    WESCO International, Inc. reported net sales of $1,816,330 thousand ($1.8 billion) for the three months ended March 31, 2015, up from $1,810,825 thousand in the prior-year quarter. Income from operations was $87.2 million versus $93.0 million, and net income attributable to WESCO International, Inc. was $47.0 million, or $0.90 per diluted share, compared with $51.9 million, or $0.97 per diluted share, a year earlier. Management attributed the lower operating profit mainly to lower supplier volume rebates, business mix and competitive market pricing pressures, partly offset by cost controls. Normalized organic sales growth was 3.2%, with foreign exchange negatively affecting sales by 2.5%. Cash generation was strong, with operating cash flow of $90.1 million and free cash flow of $85.1 million, compared with $41.7 million a year earlier. Stockholders' equity fell $90.8 million to $1.8 billion, largely due to $113.8 million of foreign currency translation adjustments and a $25.0 million share repurchase. Total debt including discount was reduced to $1.56 billion, and the financial leverage ratio improved to 2.9 from 3.0 at December 31, 2014. Revolving Credit Facility availability was $484.8 million at quarter end. Subsequent to quarter end, WESCO completed the acquisition of Hill Country Electric Supply, LP on May 1, 2015, an Austin, Texas distributor with annual sales of approximately $140 million. The company also agreed to settle the long-running ArcelorMittal Indiana Harbor lawsuit, with insurers paying $35.8 million on April 30, 2015. A New York County District Attorney investigation and a Delaware unclaimed property audit remain pending, and the company cannot reasonably estimate exposure for the former.

    May 4, 2015
  37. 2014-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2014

    WESCO International, Inc. reported third-quarter 2014 net sales of $2.08 billion, up from $1.93 billion a year earlier, with net income attributable to WESCO International of $80.8 million, or $1.52 per diluted share, compared with $69.2 million, or $1.32 per diluted share, in the third quarter of 2013. Organic sales grew 6.7%, acquisitions added 1.8%, and foreign exchange reduced sales by 0.9%. For the nine months, net sales were $5.89 billion, up 4.6%, but net income attributable to the company fell to $201.5 million from $218.4 million. The decline reflects the absence of the $36.1 million ArcelorMittal litigation recovery recorded in the first quarter of 2013, which boosted SG&A that year. Gross margin pressure was also cited, with cost of goods sold at 79.5% of net sales versus 79.2% a year earlier, due to lower supplier volume rebates and a change in business mix. Cash generation was weaker in the period. Operating cash flow was $139.8 million for the nine months, versus $179.7 million a year earlier, as working capital investment rose to support sales growth, with trade receivables up $175.0 million. The company spent $138.8 million on three acquisitions completed in 2014 (LaPrairie, Hazmasters and Hi-Line Utility Supply). Free cash flow was $123.8 million for the nine months, compared with $180.3 million in 2013. The financial leverage ratio was 3.2 at September 30, 2014, unchanged from December 31, 2013, and $485.8 million was available under the Revolving Credit Facility. Management stated that near-term focus is on managing working capital and that excess cash will go primarily to debt reduction and acquisitions. The filing also discloses a New York County District Attorney criminal investigation, notified in October 2014, into minority and disadvantaged business contracting practices in New York City construction, in which WESCO is included. The company does not believe the matter is likely to have a material effect, though it could face fines or penalties and cannot estimate a range of exposure. The ArcelorMittal judgment remains under appeal, with an $8.7 million liability and matching receivable recorded for accrued interest.

    Nov 3, 2014
  38. 2014-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2014

    WESCO International, Inc. reported net sales of $2,005,165 thousand ($2.0 billion) for the second quarter of 2014, up from $1,893,953 thousand in the second quarter of 2013, and net income attributable to WESCO International of $68,802 thousand ($1.29 per diluted share) versus $65,285 thousand ($1.25 per diluted share) a year earlier. For the first six months of 2014, net sales were $3.82 billion and net income attributable to WESCO was $120.7 million ($2.26 per diluted share), compared with $149.3 million ($2.85 per diluted share) in the first half of 2013. The filing attributes the six-month decline in profit largely to a $36.1 million ArcelorMittal litigation insurance recovery recorded in the first quarter of 2013, which lowered SG&A that year, along with lower supplier volume rebates and higher SG&A from the three 2014 acquisitions. Cash generation weakened in the first half of 2014: operating cash flow was $50.8 million versus $119.7 million a year earlier, driven by a $122.1 million increase in trade receivables, and free cash flow was $39.0 million compared with $108.0 million. The company spent $133.3 million on acquisitions of LaPrairie, Hazmasters and Hi-Line Utility Supply. Total debt including debt discount rose to $1.74 billion, and the financial leverage ratio based on total debt was 3.4 at June 30, 2014, up from 3.2 at December 31, 2013. Liquidity totaled $542.4 million, including $490.8 million of available borrowing capacity under the Revolving Credit Facility. The filing also discloses an ongoing ArcelorMittal Indiana Harbor lawsuit in which the company is appealing a judgment; it has recorded a $7.9 million liability and a matching receivable for accrued interest, and the judgment may change based on appellate outcomes. The company stated it is in compliance with all debt covenants.

    Aug 4, 2014
  39. 2014-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2014

    WESCO International, Inc. reported net sales of $1,810.8 million for the first quarter of 2014, up slightly from $1,808.1 million in the first quarter of 2013, an increase of 0.2%. Organic sales rose 1.6%, acquisitions added 0.5%, and foreign exchange reduced sales by 1.9%. Income from operations fell to $93.0 million from $136.9 million, mainly because the first quarter of 2013 included a $36.1 million favorable ArcelorMittal litigation recovery recorded in SG&A. Net income attributable to WESCO International was $51.9 million, or $0.97 per diluted share, compared with $84.0 million, or $1.60 per diluted share, a year earlier. The company stated that its effective tax rate rose to 28.2% from 26.9%, and SG&A expenses rose to 14.7% of net sales from 12.6%. Cash flow from operations was $46.7 million, compared with $80.4 million a year earlier, as working capital investment absorbed cash, with trade receivables up $55.3 million. Free cash flow was $41.7 million versus $74.4 million. The company paid $91.2 million for the LaPrairie and Hazmasters acquisitions in Canada. At March 31, 2014, total debt including debt discount was $1,676.4 million, cash was $96.4 million, and the financial leverage ratio was 3.3, up from 3.2 at December 31, 2013. The company reported $447.0 million of available capacity under its Revolving Credit Facility and $21.9 million under its Receivables Facility, and stated it was in compliance with all debt covenants. The filing also discloses the ongoing ArcelorMittal Indiana Harbor lawsuit. The company recorded a $7.1 million liability and matching receivable for accrued prejudgment and post-judgment interest, and it is appealing the judgment, the outcome of which cannot be predicted with certainty.

    May 6, 2014
  40. 2013-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2013

    WESCO International, Inc. reported third-quarter 2013 net sales of $1.93 billion, up from $1.66 billion a year earlier, an increase of $275.1 million, or 16.6%. The filing attributes 14.1 percentage points of that growth to acquisitions and 3.2% to organic sales. Net income attributable to WESCO International was $69.2 million, or $1.32 per diluted share, compared with $63.4 million, or $1.25, in the third quarter of 2012. For the nine months ended September 30, 2013, net sales were $5.63 billion, up 14.2%, while normalized organic sales decreased 0.4%. Nine-month net income attributable to the company was $218.4 million, or $4.17 per diluted share, versus $175.3 million, or $3.43. First-quarter 2013 SG&A included a $36.1 million favorable impact from recognizing insurance coverage for a litigation charge recorded in the fourth quarter of 2012. Cash generation and the balance sheet improved over the period. Operating cash flow was $179.7 million for the nine months, compared with $189.7 million a year earlier, and free cash flow was $180.3 million versus $170.1 million. The free cash flow figure adds back a $21.1 million non-recurring pension contribution tied to the EECOL acquisition. Long-term debt declined to $1.54 billion from $1.70 billion at December 31, 2012, and the financial leverage ratio improved to 3.6 from 4.7. The company reported $477.2 million of available borrowing capacity under its Revolving Credit Facility and total liquidity of $546.0 million. Stockholders' equity rose 11.9% to $1.7 billion. Several items weigh on earnings quality and risk. Interest expense increased 68.4% in the third quarter and 96.4% for the nine months, reaching $65.0 million for the nine-month period. The company is appealing a judgment in the ArcelorMittal Indiana Harbor litigation, with the judgment possibly increasing or decreasing on appeal. The company also recorded a $2.3 million loss on the sale of its Argentina business. Management excluded EECOL from its internal control assessment, noting EECOL represented 29.8% of consolidated assets and 12.0% of revenue for the third quarter.

    Oct 29, 2013
  41. 2013-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2013

    WESCO International, Inc. reported net sales of $1.89 billion for the second quarter of 2013, up 13.2% from the prior-year quarter. The filing states that acquisitions contributed 14.6 percentage points of growth, while organic sales declined 1.2%. Net income attributable to WESCO International was $65.3 million, or $1.25 per diluted share, versus $58.9 million, or $1.15 per diluted share, a year earlier. For the first six months, net sales were $3.70 billion, up 12.9%, and net income attributable to the company was $149.3 million, or $2.85 per diluted share. Income from operations rose 37.4% for the six months, helped by a $36.1 million insurance-related receivable recorded in the first quarter. Interest expense increased sharply, to $21.8 million in the quarter (up 89.7%) and $43.7 million for the six months (up 113.8%), reflecting debt tied to recent acquisitions. The effective tax rate was 25.8% for the quarter and 26.4% for the six months. Operating cash flow was $119.7 million for the first six months, and the company reported free cash flow of $108.0 million. Cash and cash equivalents were $104.5 million at June 30, 2013, and total liquidity was $429.3 million, including $387.8 million of available revolver capacity. The financial leverage ratio improved to 3.9 from 4.7 at December 31, 2012. Management said excess cash will be directed primarily to debt reduction and acquisitions. The filing also discusses an ArcelorMittal Indiana Harbor lawsuit. A jury awarded about $36.1 million in February 2013, and the court later awarded $3.9 million of prejudgment interest and 8% annual post-judgment interest. The company recorded a $4.7 million liability for interest with a matching insurance receivable, and final judgment was entered on July 16, 2013. WESCO is appealing, and the outcome may increase or decrease the judgment.

    Aug 7, 2013
  42. 2013-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2013

    WESCO International, Inc. and its subsidiaries reported net sales of $1,808.1 million for the first quarter of 2013, up $202.0 million, or 12.6%, from $1,606.0 million a year earlier. The filing attributes the increase to acquisitions, which contributed 16.0%, partly offset by a 1.6% negative impact from one fewer workday. Net income attributable to WESCO International, Inc. was $84.0 million, or $1.60 per diluted share, compared with $53.0 million, or $1.03 per diluted share, in the prior-year quarter. First quarter 2013 SG&A included a $36.1 million favorable impact from recognizing insurance coverage for a litigation-related charge recorded in the fourth quarter of 2012. Excluding that item, SG&A was $263.6 million, or 14.6% of sales. Operating cash flow was $80.4 million, compared with $58.3 million a year earlier. Cash and cash equivalents rose to $116.8 million at March 31, 2013, and the Company reported $311.5 million of available borrowing capacity under its Revolving Credit Facility. Total assets were $4.7 billion and stockholders' equity was $1,617.4 million. Interest expense increased to $21.9 million from $9.0 million, and the filing notes the increase is tied to recent acquisitions. The filing also discloses a February 14, 2013 jury verdict in favor of ArcelorMittal Indiana Harbor, Inc. in a lawsuit over alleged defective products, with damages of approximately $36.1 million. The Company disputes the outcome, has filed post-trial motions, and intends to appeal. It has recorded an equal insurance receivable, and the judgment may increase or decrease after post-trial proceedings.

    May 6, 2013
  43. 2012-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2012

    WESCO International, Inc. and subsidiaries reported third-quarter 2012 net income attributable to WESCO International of $63.4 million, or $1.25 per diluted share, compared with $53.9 million, or $1.11 per diluted share, in the third quarter of 2011. Net sales rose to $1,656.2 million from $1,580.4 million, an increase of 4.8%, with acquisitions contributing 4.0% of that growth. For the first nine months of 2012, net sales were $4,934.9 million, up 8.8% from $4,536.2 million, and net income attributable to WESCO International was $175.3 million, or $3.43 per diluted share, versus $141.4 million, or $2.84 per diluted share, a year earlier. Operating income for the nine months was $282.6 million, up from $241.5 million. Cash generation improved, with operating cash flow of $189.7 million for the nine months versus $71.8 million in the prior-year period, though working capital investment absorbed much of the growth in earnings. The company spent $201.1 million on acquisitions in 2012, including RS Electronics, Trydor Industries and Conney Safety Products, and cash and cash equivalents rose to $107.6 million at September 30, 2012. Total available borrowing capacity was $476.4 million, and the company stated it was in compliance with all debt covenants. Subsequent to quarter-end, on October 15, 2012, WESCO entered into a definitive agreement to acquire EECOL Electric Corporation of Calgary, Alberta for approximately CAD$1.14 billion, subject to Canadian Competition Act approval and expected to close in the fourth quarter of 2012. A pending lawsuit in Indiana seeking approximately $50 million in damages related to allegedly defective products remains unresolved, and no liability has been recorded.

    Nov 1, 2012
  44. 2012-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2012

    WESCO International, Inc. reported second-quarter 2012 net sales of $1,672.7 million, up $148.2 million, or 9.7%, from $1,524.5 million a year earlier. Net income attributable to WESCO International, Inc. was $58.9 million, or $1.15 per diluted share, compared with $50.2 million, or $1.00 per diluted share, in the second quarter of 2011. For the first six months of 2012, net sales rose $322.9 million, or 10.9%, to $3,278.8 million, and net income attributable to the company was $111.9 million, or $2.18 per diluted share. Operating income for the six months increased $29.8 million, or 19.9%, which the company attributes to organic growth of the base business and recent acquisitions. Management cited acquisitions as contributing 2.4% to six-month sales growth and estimated pricing added approximately 1.2%. Cash flow and liquidity improved meaningfully. Operating cash flow was $115.2 million for the first six months of 2012, compared with $22.5 million in the same period of 2011. Cash and cash equivalents were $72.2 million at June 30, 2012, and total liquidity was $642.3 million, including $367.5 million of available capacity under the Revolving Credit Facility and $245.0 million under the Receivables Facility. Total assets rose to $3,186.7 million and stockholders' equity to $1,468.5 million. Long-term debt declined to $562.8 million from $642.9 million at year-end 2011. The company disclosed a lawsuit in Indiana seeking approximately $50 million in damages, for which no liability has been recorded, and it reported two acquisitions completed after quarter-end: Trydor Industries (Canada), Ltd., with approximately $35 million in annual sales, and Conney Safety Products, LLC, with approximately $85 million in annual sales. The filing describes WESCO as a full-line distributor of electrical, industrial and communications MRO and OEM products, serving over 65,000 active customers through approximately 400 full-service branches and eight distribution centers. Approximately 80% of first-half 2012 net sales came from the United States and 16% from Canada. Management reported no material changes to market risk and concluded that disclosure controls were effective as of June 30, 2012.

    Aug 2, 2012
  45. 2012-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2012

    WESCO International, Inc. reported first-quarter 2012 net sales of $1,606.0 million, up from $1,431.3 million a year earlier, an increase of $174.7 million, or 12.2%. The filing attributes the growth to sales initiatives, improved conditions in served markets, acquisitions (a 2.6% positive impact), one additional workday (1.6%), and an estimated price impact of about 1.5%. Income from operations rose to $83.5 million from $64.7 million, and net income attributable to WESCO increased to $52.9 million, or $1.03 per diluted share, compared with $37.3 million, or $0.74 per diluted share, in the prior-year quarter. Cost of goods sold was 80.1% of net sales versus 80.0% a year earlier, which the company attributed to an unfavorable sales shipment type mix. SG&A expenses fell to 14.2% of net sales from 15.0%. Cash flow and liquidity improved. Operating cash flow was $58.3 million compared with $31.8 million, though trade and other receivables rose $38.2 million on higher sales. Management cited $22.0 million paid for the acquisition of RS Electronics's business. At March 31, 2012, total liquidity was $571.9 million, including $356.7 million available under the Revolving Credit Facility and $198.8 million under the Receivables Facility. Total assets were $3.1 billion and stockholders' equity rose 4.8% to $1,411.2 million. The company stated it was in compliance with all debt covenants. The main open item for investors is litigation. WESCO is a co-defendant in an Indiana state court lawsuit in which a customer seeks damages of approximately $50 million over allegedly defective products. The company has denied liability, recorded no liability for the matter, and said it cannot reasonably estimate a possible loss. The filing also notes a $3.2 million reduction in interest expense from a favorable IRS appeals settlement covering 2000 to 2006, and an effective tax rate of 29.0% versus 28.4% a year earlier.

    May 3, 2012
  46. 2011-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2011

    WESCO International, Inc. reported third-quarter 2011 net sales of $1,580.4 million, up $255.8 million, or 19.3%, from $1,324.6 million a year earlier, and net income of $53.9 million, or $1.11 per diluted share, versus $33.7 million and $0.74 a year earlier. For the first nine months of 2011, net sales rose $803.9 million, or 21.5%, to $4,536.2 million, and net income increased $60.7 million to $141.4 million ($2.84 diluted EPS, versus $1.79). Cost of goods sold fell to 80.0% of net sales from 80.5%, and income from operations reached $241.5 million for the nine months, up from $150.9 million. Management attributed growth to improving served markets, growth initiatives, acquisitions, higher product prices and favorable foreign currency rates. Cash generation was modest relative to earnings: operating cash flow was $71.8 million for the nine months, compared with $75.5 million a year earlier, as receivables rose $154.7 million and inventory rose $44.2 million. Total assets were $3.07 billion at September 30, 2011, and stockholders' equity was $1.28 billion. In August 2011, WESCO Distribution entered a new $400 million Revolving Credit Facility maturing in August 2016 and amended its Receivables Facility to lower its interest spread to 1.10% and extend its term to August 2014. Available liquidity was $486.1 million, and the company stated it was in compliance with all covenants. The filing also discloses a co-defendant lawsuit in Indiana seeking approximately $50 million in damages over allegedly defective products, for which no liability has been recorded. A subsequent event was the October 3, 2011 acquisition of Brews Supply Ltd., funded with cash and Receivables Facility borrowings.

    Nov 1, 2011
  47. 2011-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2011

    WESCO International, Inc. reported second-quarter 2011 net sales of $1,524.5 million, up $265.4 million, or 21.1%, from $1,259.1 million a year earlier. Net income rose to $50.2 million, or $1.00 per diluted share, compared with $27.8 million, or $0.60 per diluted share, in the second quarter of 2010. For the six months ended June 30, 2011, net sales were $2,955.8 million, up 22.8%, and net income was $87.5 million, or $1.74 per diluted share. The company attributed sales growth to improving conditions in its served markets, growth initiatives, recent acquisitions, higher product prices and favorable foreign currency exchange rates. Cost of goods sold as a percentage of net sales fell to 79.9% for the six months from 80.5%. Cash generation was weaker than earnings. Operating cash flow for the six months was $22.5 million, down from $68.8 million, as receivables rose $106.5 million and inventory rose $40.8 million. Capital expenditures were $15.9 million and acquisition payments were $8.3 million. Total assets were $3.03 billion at June 30, 2011, and stockholders' equity was $1.25 billion. As of June 30, 2011, the company reported $361.7 million of total available borrowing capacity and said it was in compliance with all covenants. The filing also discloses a co-defendant lawsuit in Indiana seeking approximately $50 million in damages over allegedly defective products. The company has denied liability and no liability is recorded for the matter. Management expects excess cash to go primarily toward debt reduction and acquisitions over the next several quarters.

    Aug 3, 2011
  48. 2011-Q1

    Wesco International Quarterly Report for Q1 Ended Mar 31, 2011

    WESCO International, Inc. reported first-quarter 2011 net sales of $1,431.3 million, up from $1,148.6 million in the first quarter of 2010, an increase of $282.7 million, or 24.6%. Income from operations rose to $64.7 million from $38.3 million, and net income increased to $37.3 million, or $0.74 per diluted share, compared with $19.2 million, or $0.44 per diluted share, a year earlier. Management attributed the growth to improving conditions in served markets, growth initiatives, recent acquisitions, higher product prices and favorable foreign currency exchange rates. Cost of goods sold as a percentage of net sales improved to 80.0% from 80.2%, and SG&A expenses fell to 15.0% of sales from 15.9%. Cash flow from operations was $31.8 million, down from $68.7 million in the prior-year period, as working capital investments in receivables, inventory and payroll-related payments absorbed cash. Total assets rose to $2.95 billion at March 31, 2011 from $2.83 billion at December 31, 2010, and long-term debt declined to $703.3 million from $725.9 million. Total available borrowing capacity was $342.2 million, and management stated the company was in compliance with all covenants. The filing also discloses a lawsuit in Indiana state court in which a customer seeks approximately $50 million in damages for allegedly defective products. WESCO denies liability, and no liability has been recorded as of March 31, 2011.

    May 3, 2011
  49. 2010-Q3

    Wesco International Quarterly Report for Q3 Ended Sep 30, 2010

    WESCO International, Inc. reported net sales of $1,324.6 million for the third quarter of 2010, up $172.2 million, or 14.9%, from $1,152.4 million a year earlier. Net income was $33.7 million, or $0.74 per diluted share, compared with $33.6 million, or $0.79 per diluted share, in the third quarter of 2009. For the first nine months of 2010, net sales rose $241.1 million, or 6.9%, to $3,732.3 million, while net income fell to $80.7 million from $83.3 million, and diluted EPS was $1.79 versus $1.95. The company attributed the sales growth to improved served markets, higher product prices, favorable foreign currency rates and a second-quarter 2010 acquisition, and noted that third-quarter SG&A rose on higher commissions and incentives and the restoration of temporary cost reductions. Cash flow weakened sharply: operating cash flow was $75.5 million for the first nine months of 2010, versus $290.9 million a year earlier, as receivables rose $149.6 million and inventory rose $40.9 million. The company sold its 40% interest in the LADD joint venture to Deutsch for $40.0 million, collected a $15.0 million promissory note, and used the proceeds to pay down variable-rate debt. Total available liquidity was stated at $582.0 million, comprising $247.8 million under the revolving credit facility, $270.8 million under the Receivables Facility and invested cash. Stockholders' equity rose to $1,095.3 million from $996.3 million at year-end 2009. Investors should also note a pending lawsuit in Indiana seeking $52 million in damages over allegedly defective products, for which no liability has been recorded, and a diluted share count that includes 2.2 million shares from the 2029 Debentures in the third quarter. The filing states that the Receivables Facility amendment lowered the program fee from 3.0% to 1.75%, which the company expects to reduce interest expense in future periods.

    Nov 2, 2010
  50. 2010-Q2

    Wesco International Quarterly Report for Q2 Ended Jun 30, 2010

    WESCO International, Inc. reported net sales of $1,259.1 million for the second quarter of 2010, up from $1,159.2 million a year earlier, an increase of $99.9 million, or 8.6%. Net income rose to $27.8 million from $26.5 million, while diluted earnings per share were $0.60 compared with $0.62. For the six months, net sales were $2,407.7 million versus $2,338.8 million, and net income declined to $47.0 million from $49.7 million, with diluted EPS of $1.04 versus $1.17. Management attributed sales growth to improved market conditions, higher product prices and favorable foreign currency exchange rates, and cited an impairment charge tied to the company's 40% interest in the LADD joint venture as a drag on six-month operating income. Cash flow was weaker in the first half: operating cash flow was $68.8 million versus $204.7 million in the prior-year period, driven by $80.2 million of receivables growth and $21.8 million of inventory growth, partly offset by an $85.8 million increase in accounts payable. The company sold its 40% LADD interest to Deutsch for $40.0 million and collected a $15.0 million promissory note, and used the proceeds to pay down variable rate debt. Long-term debt fell to $483.8 million from $597.9 million at year-end 2009, and stockholders' equity rose to $1,051.4 million. At June 30, 2010, total available borrowing capacity was $511.0 million, and management stated the company was in compliance with all covenants. Management expects third-quarter sales to be flat to slightly higher than the second quarter, with gross margins improving somewhat and operating margins somewhat higher than in the second quarter. The company also disclosed a pending lawsuit in Indiana seeking $52 million in damages, which it denies and for which no liability is recorded.

    Aug 4, 2010