Wesco International, Inc. · NYSE:WCC
Wesco International — Q1 2012 Earnings Presentation
15 slides from Wesco International's earnings presentation, Apr 19, 2012
Slide 1: Supplemental Financial Data WESCO First Quarter 2012
Supplemental Financial Data WESCO First Quarter 2012 April 19, 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: First Quarter 2012 Results
3 First Quarter 2012 Results Category Q1 2012 Outlook Provided Q1 2012 Performance Sales Growth Total sales growth expected to be 7% to 11%. Q1 organic sales growth rate expected to be 6% to 9%. Acquired sales expected to add approximately 2% to sales growth. Total sales growth of 12.2%; Reported or
Slide 4: Organic Sales Versus Prior Year
4 Organic Sales Versus Prior Year * Q4 2011 had one less workday versus Q4 2010. ** FY 2011 had one less workday versus FY 2010. *** Q1 2012 had one more workday versus Q1 2011 and Q1 2010. ------------------------2010------------------------ ------------------------2011------------------------ ----
Slide 5: Recent Acquisitions' Estimated End Market Mix
5 Recent Acquisitions’ Estimated End Market Mix Acquisition Date Acquired Approximate Sales at Acquisition date (TTM Millions) Industrial Construction Utility CIG Potelcom June 2010 $25 40% - 60% - TVC December 2010 $300 - 10% - 90% Reco March 2011 $25 100% - - - Brews Supply October 2011 $50 75% 5%
Slide 6: End Markets and Product Categories
6 WESCO Confidential—Do not copy or distribute without express permission from WESCO Distribution, Inc. End Markets and Product Categories Quarter Ended March 31, 2012 45% 32% 11% 12% Markets & Customers 35% 16% 18% 12% 9% 10% Products & Services Controls & Motors Lighting & Controls General Supplie
Slide 7: End Market Momentum
7 WESCO Confidential—Do not copy or distribute without express permission from WESCO Distribution, Inc. x Construction 6.9% 21.2% 12.7% 10.9% 12.5% 13.7% 4.7% 0% 5% 10% 15% 20% 25% FY 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 CIG 22.3% 21.6% 18.4% 14.8% 12.0% 16.7% 11.8% 0% 5% 10% 15% 20%
Slide 8: End Market Q1 2012 vs. Q1 2011 and Q4 2011 Comments
8 End Market Q1 2012 vs. Q1 2011 Q1 2012 vs. Q4 2011 Comments WESCO Core 9.8% Flat • Seventh consecutive quarter of double year-over-year digit sales growth • All four end market categories grew in Q1 versus prior year • Six consecutive quarters of EPS growth in excess of 25% over prior year Industr
Slide 9: Core Sales Reconciliation of Non-GAAP Financial Measures
9 Core Sales Reconciliation of Non-GAAP Financial Measures Unaudited Note: Q1 versus prior year excludes Reco, Brews Supply, and RS Electronics results. Q1 sequential excludes RS Electronics. (dollar amounts in millions) Full Year 2011 vs 2010 Q1 2012 vs. Q1 2011 Q1 2012 vs. Q4 2011 Q1 Q1 Q1 Q4 2011
Slide 10: Key Financial Metrics
10 Key Financial Metrics 12/31/2011 3/31/2012 Liquidity(2) $511 million $572 million 2011 Full Year & 2012 YTD Free Cash Flow(3) $134 million $54 million Financial Leverage (Par Value Debt with Reported EBITDA) 2.3x 2.1x ($Millions) Outstanding at December 31, 2011 Outstanding at March 31, 2012 Debt
Slide 11: Quarterly Financial Leverage
11 Quarterly Financial Leverage Target Leverage 2.0x – 3.5x 2.1x 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 Q 1 1 2
Slide 12: Convertible Debt and Non-cash Interest
12 Convertible Debt and Non-cash Interest as of March 31, 2012 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 2029 $ 344,938 $ (175,200) $ 169,738 Non-Cash Interest Expense (year-t
Slide 13: Convertible Debt and SARs/Options EPS Dilution
13 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 0.36 44.29 $40.00 3.33 0.69
Slide 14: Number of Work Days by Quarter
14 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 63(1) 255 (1) Note: Updated to reflect 63 versus 64 days.
Slide 15: Q2 2012 Outlook
15 Q2 2012 Outlook Category Q2 2012 Expectations Sales Growth Total sales growth, including price and FX rates, expected to be 10% to 12%; which reflects an increase of 1 percentage point to the upper end of our 2012 FY sales growth range. Q2 price and FX rates assumed to be consistent with Q1 2012