Wesco International, Inc. · NYSE:WCC
Wesco International — Q2 2012 Earnings Presentation
15 slides from Wesco International's earnings presentation, Jul 19, 2012
Slide 1: Supplemental Financial Data WESCO Second Quarter 2012
Supplemental Financial Data WESCO Second Quarter 2012 July 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: Second Quarter 2012 Results
3 Second Quarter 2012 Results Category Q2 2012 Outlook Provided Q2 2012 Performance Sales Growth Total sales growth, including price and FX rates, expected to be 10% to 12%. Total sales growth of 9.7%; organic sales growth of 8.2%. Acquisition sales had positive impact of 2.2%. Exchange rate had neg
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 End Markets and Product Categories Six Months Ended June 30, 2012 44% 32% 11% 13% Markets & Customers 35% 15% 18% 13% 9% 10% Products & Services Controls & Motors Lighting & Controls General Supplies Data & Broadband Communications Wire, Cable & Conduit Distribution Equipment Utility • Investor Ow
Slide 7: WESCO End Market Momentum
7 22.3% 21.6% 18.4% 14.8% 12.0% 16.7% 11.8% 7.7% 0% 5% 10% 15% 20% 25% FY 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Q2 2012 (14.6%) (4.6%) 6.1% 13.2% 21.7% 9.8% 23.9% 11.7% (20%) (15%) (10%) (5%) 0% 5% 10% 15% 20% 25% FY 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Q2 2012 6.9% 21
Slide 8: End Market Results and Comments Q2 2012
8 x End Market Q2 2012 vs. Q2 2011 Q2 2012 vs. Q1 2012 Comments WESCO Core 7.5% 4.2% • Organic sales per work day growth of 8.2% for Q1 and Q2 versus prior year • All four end market categories grew in Q2 sequentially and versus prior year • Seven consecutive quarters of EPS growth of 15+% Industria
Slide 9: Core Sales Reconciliation of Non-GAAP Financial Measures
9 Core Sales Reconciliation of Non-GAAP Financial Measures Unaudited Note: Q2 versus prior year excludes Brews Supply and RS Electronics results. No acquisition adjustments for Q2 sequential. (dollar amounts in millions) Full Year 2011 vs 2010 Q2 2012 vs. Q2 2011 Q2 2012 vs. Q1 2012 Q2 Q2 Q2 Q1 2011
Slide 10: Key Financial Metrics
10 Key Financial Metrics 12/31/2011 6/30/2012 Liquidity (1) $511 million $642 million Full Year 2011 and June YTD 2012 Free Cash Flow (2) $134 million $103 million Financial Leverage (Total Par Value Debt Divided by Reported TTM EBITDA) 2.3x 1.9x ($Millions) Outstanding at December 31, 2011 Outstand
Slide 11: Quarterly Financial Leverage
11 1.5 2 2.5 3 3.5 4 4.5 5 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Quarterly Financial Leverage Target Leverage 2.0x – 3.5x 1.9x Second lowest quarterly leverage since WESCO became a public company in 1999.
Slide 12: Convertible Debt and Non-cash Interest
12 Convertible Debt and Non-cash Interest as of June 30, 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 $ 344,936 $ (174,485) $ 170,451 Non-Cash Interest Expense ($ milli
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 0.46 44.52 $40.00 3.33 0.74
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 63 254
Slide 15: Q3 2012 Outlook
15 Q3 2012 Outlook Category Q3 2012 Expectations Sales Growth Total sales growth expected to be 9% to 11% including acquisitions of approximately 4% Gross Margin Gross margin expected to be at or above 20% Operating Margin Operating margin expected to be at or above 6% Effective Tax Rate Effective t