Wesco International, Inc. · NYSE:WCC
Wesco International — Q4 2010 Earnings Presentation
14 slides from Wesco International's earnings presentation, Jan 27, 2011
Slide 1: Supplemental Financial Data WESCO Fourth Quarter and Full Year 2010
Supplemental Financial Data WESCO Fourth Quarter and Full Year 2010 January 27, 2011
Slide 2: Safe Harbor Statement
Safe Harbor Statement Note: All statements made herein that are not historical facts should be considered as "forward- looking statements" within the meaning of the Private Securities Litigation Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may ca
Slide 3: Fourth Quarter 2010 Results
Fourth Quarter 2010 Results Q4 Outlook Provided Fourth Quarter 2010 Performance Fourth Quarter 2010 Performance Sales forecasted to decline 3% to 5% from Q3, consistent with historical seasonality Sales flat sequentially and up 18% versus prior year Gross margin forecasted to be at or above 19.5% Gr
Slide 4: 2010 Results
2010 Results 2010 Outlook Provided On January 28, 2010 2010 Performance 2010 Performance Consolidated end market demand forecasted to be down 3% to 5%; Revised in Q1 to be down 0 to 2% Company improved market position with consolidated 2010 sales growth of 10% Gross margin forecasted to increase mod
Slide 5: End Market Performance Q4 2010
End Market Q4 2010 vs. Q4 2009 Q4 2010 vs. Q3 2010 2010 vs. 2009 Comments WESCO Consolidated 17.6% 0.5% 9.5% Increasing sales momentum during 2010: Q1 down 3%; Q2 up 9%; Q3 up 15%; Q4 up 18% Operating margins expanded from 3.3% in Q1 to 4.5% in Q4; full-year at 4.2% Data communications product categ
Slide 6: On Track To Achieve Or Exceed 2013 Expectations
Performance On Track To Achieve Or Exceed 2013 Expectations 2010 Actual 2013 1 Expectation Sales $5.1B $6.2B+ Operating Margin 4.2% 6%+ Net Income (Millions) $115 $200+ EPS - Diluted (2013 - Based on 50M shares) $2.49 $4.00+ ROIC % 2 9.3% 15%+ Leverage Ratio 3.5 3 2.0 to 3.5 Targeting 20-25% Annual
Slide 7: WESCO Major Growth Initiatives
WESCO Major Growth Initiatives Arrows depict expected end market demand in 2011 Fortune 1000 focus Sell all WESCO products and services Capture new customers and expand with current customers Achieve high customer renewal rate Global Accounts and Integrated Supply Electrical plus data communications
Slide 8: Q4 Capital Transactions
Q4 Capital Transactions TVC Communications Acquisition (Completed on December 16, 2010) TVC Communications Acquisition (Completed on December 16, 2010) TVC Communications Acquisition (Completed on December 16, 2010) TVC Communications Acquisition (Completed on December 16, 2010) ($ millions) Sales $
Slide 9: December 31, 2010 Key Financial Metrics
December 31, 2010 Key Financial Metrics December 31, 2010 Key Financial Metrics December 31, 2010 Key Financial Metrics 12/31/2009 12/31/2010 Liquidity1 $442 million $338 million Full Year Free Cash Flow $279 million $112 million Financial Leverage (Par Value Debt with Reported EBITDA) 4.2x 3.9x Fin
Slide 10: Convertible Debt as of December 31, 2010
Convertible Debt as of December 31, 2010 GAAP vs. Non-GAAP Debt Reconciliation Non-Cash Interest Expense Schedule ($millions) ($millions) ($millions) ($millions) ($millions) 2029 Bond 2011 $2.4 2012 $2.7 2013 $3.1 Convertible Debentures (000s) Convertible Debentures (000s) Convertible Debentures (00
Slide 11: Convertible Debt and SARs/Options EPS Dilution
Convertible Debt and SARs/Options EPS Dilution Weighted Average Quarterly Share Count Weighted Average Quarterly Share Count Weighted Average Quarterly Share Count Weighted Average Quarterly Share Count Stock Price Incremental Shares from 2029 Convertible Debt (in millions)3 Incremental Shares from
Slide 12: Canadian Operations Tax Matter Adjustments
Canadian Operations Tax Matter Adjustments Adjusted Interest Expense, Income Before Taxes, Net Income and EPS: Three Months Ended December 31, 2010 Tax Adjustments Adjusted Three Months Ended December 31, 2010 Income from operations 60.0 60.0 Interest Expense 15.9 4.2 11.7 Income before income taxes
Slide 13: 2011 Full Year Outlook
2011 Full Year Outlook Category 2011 Expectations 2011 Expectations Sales Growth Expected to be at or above 12% (incl. acquisitions) Operating Margins Expected to be at or above 4.7% Effective Tax Rate Expected to be in the range of 28% to 30% Net Income Expected to grow in excess of 25%
Slide 14: Q1 Outlook
Q1 Outlook Category Q1 2011 Expectations Q1 2011 Expectations Sales Growth Expected to be at or above 16% (incl. acquisitions) Gross Margins Expected to be at or above 19.6% Operating Margins Expected to be at or above 4.1% Tax Rate Expected to be in the range of 28% to 30%