Wesco International, Inc. · NYSE:WCC
Wesco International — Q3 2010 Earnings Presentation
10 slides from Wesco International's earnings presentation, Oct 21, 2010
Slide 1: Supplemental Financial Data WESCO Third Quarter 2010
Supplemental Financial Data WESCO Third Quarter 2010 October 21, 2010
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: Third Quarter 2010 Results
Third Quarter 2010 Results Q3 Outlook Provided Third Quarter 2010 Performance Third Quarter 2010 Performance Sales forecasted to be sequentially flat to slightly higher Sales up 15% versus prior year and up 5% sequentially Gross margin forecasted to sequentially improve from 19.3% Gross margin of 19
Slide 4: End Market Q3 2010 vs. Q3 2009 and Q2 2010
End Market Q3 2010 vs. Q3 2009 Q3 2010 vs. Q2 2010 Comments WESCO Consolidated 14.9% 5.2% Improving quarterly sales vs. prior year: Q1 down 2.6%; Q2 up 8.6%; Q3 up 14.9% Sequential sales growth across all four end markets All product categories grew in quarter vs. prior year (four at double digits -
Slide 5: WESCO Major Growth Initiatives
WESCO Major Growth Initiatives Fortune 1000 focus Sell all WESCO products and services Capture new customers and expand with current customers Achieve 100% customer renewal rate Global Accounts and Integrated Supply Electrical plus data communications Global Accounts model application to contractors
Slide 6: September 30, 2010 Key Financial Metrics
September 30, 2010 Key Financial Metrics September 30, 2010 Key Financial Metrics September 30, 2010 Key Financial Metrics September 30, 2010 Key Financial Metrics September 30, 2010 Key Financial Metrics 9/30/2010 12/31/2009 Liquidity1 $582 million $442 million YTD Free Cash Flow $65 million $279 m
Slide 7: Convertible Debt as of September 30, 2010
Convertible Debt as of September 30, 2010 GAAP vs. Non-GAAP Debt Reconciliation Non-Cash Interest Expense Schedule ($millions) ($millions) ($millions) ($millions) ($millions) ($millions) ($millions) ($millions) 2025 Bond 2029 Bond Total 2010 $2.1 $2.1 $4.2 2011 $0.0 $2.4 $2.4 2012 $0.0 $2.7 $2.7 Con
Slide 8: 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 Weighted Average Quarterly Share Count Stock Price Incremental Shares from Convertible Debt (in m
Slide 9: Earnings Analysis
Earnings Analysis Q2 2009 Income Before Taxes (IBT) $34.9 Estimated Temporary Cost Reductions ($12.0) Subtotal $22.9 Taxes at Q2 2010 Tax Rate of 28.2% ($6.5) Q2 2009 Net Income excluding above items $16.4 $0.38 Q2 2010 Net Income $27.8 $0.60 Improvement % 2010 vs. 2009 70% 58% Q3 2009 IBT $40.0 Con
Slide 10: Q4 Outlook
Q4 Outlook Category Q4 2010 Expectations Q4 2010 Expectations Sales Expected to decline 3% to 5% from Q3, consistent with historical seasonality Gross Margins Expected to be at or above 19.5% Operating Margins Expected to be at or above 4.2%