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Wesco International 8-K Report, Regulation FD Disclosure (Mar 5, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed March 5, 2024
Period End
March 5, 2024
Security
WCC
In the record · 2016–202610-K1210-Q338-K143

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

  1. Leadership change8-K · Mar ’18Mar ’18
  2. Leadership change8-K · Jun ’20Jun ’20
  3. Material agreement8-K · Nov ’22Nov ’22
  4. Material agreement8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed March 5, 2024. Cited figures are marked; the original filing is the authoritative source.

WESCO International, Inc. filed this Form 8-K under Item 7.01 (Regulation FD Disclosure) to furnish a slide presentation that executives will use at the Raymond James Institutional Investors Conference on March 5, 2024.

The information is furnished, not filed, for purposes of Section 18 of the Exchange Act. The slides describe WESCO as a leading global provider of business-to-business distribution, logistics services and supply chain solutions, with 2023 sales of $22.4 billiona, roughly 800 locations and operations in more than 50 countries. Sales are 74% U.S., 13% Canada and 13% rest of world, and by business unit they split 38% Electrical & Electronic Solutions (EES), 32% Communications & Security Solutions (CSS) and 30% Utility & Broadband Solutions (UBS).

The presentation centers on the combination with Anixter International and the company's 2024 outlook. It states a 2024 outlook for reported sales growth of 1% to 4% and free cash flow of $600 million to $800 millionb. Adjusted EBITDA was $1,705.4 million in 2023, a 7.6% margin, compared with $1,725.6 million and 8.1% in 2022.

Management reports that January 2024 sales were down about 5% year over year and February was flat, with the first quarter expected to be down low-to-mid single digits. Capital allocation highlights include $50 millionc of stock repurchased in the first quarter, about $1.7 billion of senior notes offerings, a 10% dividend increase, and a planned divestiture of the integrated supply business, with proceeds to be used to reduce debt and repurchase shares.

For investors, the materials emphasize the company's long-term framework of mid-single-digit-plus organic growth, margin expansion, cash generation and increased return of capital, alongside forward-looking risk factors tied to the Anixter and Rahi Systems transactions, interest rates, supply chain and geopolitical conditions. The filing itself is a Regulation FD presentation with no new financial results beyond the slides.

02—Key points

Key Highlights

  1. 2023 sales of $22.4 billion across more than 50 countries and about 800 locations; sales split 74% U.S., 13% Canada and 13% rest of world.
  2. 2024 outlook calls for reported sales growth of 1% to 4% and free cash flow of $600 million to $800 million.
  3. 2023 Adjusted EBITDA of $1,705.4 million, a 7.6% margin, versus $1,725.6 million (8.1%) in 2022.
  4. Early 2024 trends: January sales down about 5% year over year, February flat, and first-quarter sales expected to be down low-to-mid single digits.
  5. Capital allocation actions include $50 million of Q1 share repurchases, about $1.7 billion of senior notes offerings, and a 10% dividend increase.
  6. Planned divestiture of the integrated supply business, with proceeds intended to reduce debt and repurchase shares.
  7. Long-term framework targets mid-single-digit-plus organic sales growth, a roughly 14% incremental EBITDA margin and 2x sales growth in EBITDA.

03—Questions

Frequently Asked Questions

  1. What is the purpose of this 8-K filing?

    The filing furnishes under Item 7.01 (Regulation FD) a slide presentation that WESCO executives will present to investors at the Raymond James Institutional Investors Conference on March 5, 2024. The information is furnished rather than filed for Section 18 purposes.

  2. What did WESCO report for 2023 and what is its 2024 outlook?

    The slides show 2023 sales of $22.4 billion and adjusted EBITDA of $1,705.4 million (7.6% margin). For 2024, the company outlines reported sales growth of 1% to 4% and free cash flow of $600 million to $800 million.

  3. How is the business performing in early 2024?

    The presentation says January 2024 sales were down about 5% year over year and February was flat. First-quarter sales are expected to be down low-to-mid single digits.

  4. What capital allocation steps is WESCO taking?

    The company repurchased $50 million of stock in the first quarter, announced about $1.7 billion of senior notes offerings, increased its dividend per share by 10%, and plans to use divestiture proceeds from its integrated supply business to reduce debt and repurchase shares.

  5. What are the main risks flagged in the forward-looking statements?

    Risks include failure to achieve expected benefits of the Anixter and Rahi Systems transactions, integration costs, higher interest rates and borrowing costs, supply chain disruptions, geopolitical issues, cyber incidents, inflationary cost pressures and demand volatility.

04—Continue

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