Wesco International, Inc. · NYSE:WCC
Wesco International — Q4 2011 Earnings Presentation
16 slides from Wesco International's earnings presentation, Jan 26, 2012
Slide 1: Supplemental Financial Data WESCO Fourth Quarter and Full Year 2011
Supplemental Financial Data WESCO Fourth Quarter and Full Year 2011 January 26, 2012
Slide 2: Safe Harbor Statement
2 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
Slide 3: Fourth Quarter 2011 Results
3 Fourth Quarter 2011 Results Category Q4 Outlook Provided Fourth Quarter 2011 Performance Sales Growth Sales growth expected to be at or above 14% year-over-year and down 3.5% sequentially Sales growth of 19.4% versus prior year; sales up 0.6% sequentially; normalized organic sales growth of approx
Slide 4: Full Year 2011 Results
4 Full Year 2011 Results Category 2011 Outlook Provided Revised October 20, 2011 2011 Performance Sales Growth Sales growth expected to be at or above 19%. Pricing and F/X rates assumed consistent with first half levels Sales growth of 21% versus 2010; normalized organic growth of approximately 13.8
Slide 5: Organic Sales Versus Prior Year
5 Organic Sales Versus Prior Year ---------------- 2010 ------------------ ------------------- 2011 -------------------- Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4* Full Year* (2.6%) 8.6% 14.9% 17.6% 9.5% 24.6% 21.1% 19.3% 19.4% 21.0% (1.8%) (1.9%) (0.9%) (0.7%) (1.3%) (1.1%) (1.0%) (1.1%) 0% (0.8%) 0 0 (0.7
Slide 6: Number of Work Days by Quarter
6 Number of Work Days by Quarter Q1 Q2 Q3 Q4 FY 2010 63 64 64 64 255 2011 63 64 64 63 254 2012 64 64 63 64 255
Slide 7: WESCO End Markets and Product Categories
7 WESCO Confidential—Do not copy or distribute without express permission from WESCO Distribution, Inc. WESCO End Markets and Product Categories 2010 40% 36% 12% 12% Markets & Customers 33% 19% 17% 11% 10% 10% Products & Services Controls & Motors Lighting & Controls General Supplies Data & Broadban
Slide 8: WESCO End Market Momentum
8 6.9% 21.2% 12.7% 10.9% 12.5% 13.7% 0% 5% 10% 15% 20% 25% FY 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 22.3% 21.6% 18.4% 14.8% 12.0% 16.7% 0% 5% 10% 15% 20% 25% FY 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 11.6% 17.7% 3.4% 7.5% 10.1% 8.1% 0% 5% 10% 15% 20% 25% FY 2010 Q1 2011 Q2 2011 Q3 2011
Slide 9: End Market Q4 2011 vs. Q4 2010 Comments
9 End Market Q4 2011 vs. Q4 2010 Q4 2011 vs. Q3 2011 2011 vs. 2010 Comments WESCO Core 13.1% (0.4%) 14.1% • Sixth consecutive quarter of year-over-year double digit organic sales growth • All four major end market categories grew double digits in Q4 versus last year • Q4 2011 normalized organic sale
Slide 10: Key Financial Metrics
10 Key Financial Metrics 12/31/2010 12/31/2011 Liquidity(1) $338 million $511 million Full Year Free Cash Flow(2) $112 million $134 million Financial Leverage (Par Value Debt with Reported EBITDA) 3.9x 2.3x ($Millions) Outstanding at December 31, 2010 Outstanding at December 31, 2011 Debt Maturity S
Slide 11: Quarterly Financial Leverage
11 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Q 4 0 7 Q 1 0 8 Q 2 0 8 Q 3 0 8 Q 4 0 8 Q 1 0 9 Q 2 0 9 Q 3 0 9 Q 4 0 9 Q 1 1 0 Q 2 1 0 Q 3 1 0 Q 4 1 0 Q 1 1 1 Q 2 1 1 Q 3 1 1 Q 4 1 1 Quarterly Financial Leverage Target Leverage 2.0x – 3.5x 2.3x
Slide 12: Convertible Debt and Non-cash Interest as of December 31, 2011
12 Convertible Debt and Non-cash Interest as of December 31, 2011 GAAP vs. Non-GAAP Debt Reconciliation Non-Cash Interest Expense Schedule Convertible Debentures (000s) Maturity Par Value of Debt Debt Discount Debt per Balance Sheet 2026 $ 56 $ 0 56 2029 $ 344,962 $ (175,908) $ 169,054 Total $ 345,0
Slide 13: Core Sales Reconciliation of Non-GAAP Financial Measures
13 Core Sales Reconciliation of Non-GAAP Financial Measures Unaudited 2011 2010 % Growth Industrial Core $ 2,632 $ 2,256 16.7 % Contruction Core 2,097 1,845 13.7 % Utility Core 683 622 9.8 % CIG Core 388 359 8.1 % Total Core Gross Sales $ 5,800 $ 5,082 14.1 % Total Gross Sales from Acquisitions 347
Slide 14: Convertible Debt and SARs/Options EPS Dilution
14 Convertible Debt and SARs/Options EPS Dilution Weighted Average Quarterly Share Count Stock Price Incremental Shares from 2029 Convertible Debt (in millions)3 Incremental Shares from SARs/Option Awards (in millions) Total Diluted Share Count (in millions)4 $30.00 0.45 0.41 44.20 $40.00 3.33 0.74
Slide 15: Q1 2012 Outlook
15 Q1 2012 Outlook Category Q1 2012 Expectations Sales Growth Total sales growth expected to be 7% to 11% consistent with the August Investor Day outlook: • Q1 organic sales growth rate expected to be 6% to 9% • Acquired sales expected to add approximately 2% points to sales growth • Total sales exp
Slide 16: 2012 Full Year Outlook
16 2012 Full Year Outlook Category 2012 Expectations Sales Growth Total sales growth expected to be 7% to 11% consistent with the August Investor Day outlook: • Q1 organic sales growth rate expected to be 6% to 9% • Q2 to Q4 organic sales growth rate expected to be 5% to 8% • Acquired sales targeted