WESCO International(WCC)

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WESCO International(WCC) - 2021 Q4 - Annual Report
2022-02-25 21:33
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-14989 WESCO International, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...
WESCO International(WCC) - 2021 Q4 - Earnings Call Transcript
2022-02-15 19:55
Financial Data and Key Metrics Changes - WESCO achieved record sales of $18.2 billion for the full year 2021, up 14% compared to 2020 pro forma results [31] - Adjusted EBITDA for the fourth quarter was $3.17, a record and up 160% from the prior year [28] - Gross margin for the fourth quarter was 20.8%, up 120 basis points year-over-year [26] - The company reduced its leverage ratio to 3.9x trailing 12-month adjusted EBITDA, down 1.8 turns since the Anixter acquisition [51][52] Business Line Data and Key Metrics Changes - EES segment sales were up 18% year-over-year in Q4, with adjusted EBITDA up 59% [33][34] - CSS segment sales increased by 9% year-over-year, with adjusted EBITDA margin at 8.3%, a 10 basis point increase [35][36] - UBS segment organic sales rose 22% year-over-year, with adjusted EBITDA up 63% [38][40] Market Data and Key Metrics Changes - Backlog reached a record level, up 14% from the previous quarter, with each business unit posting backlog increases of over 60% year-over-year [25][32] - Preliminary January results showed sales up low teens year-over-year on a workday-adjusted basis [24] Company Strategy and Development Direction - WESCO is focused on cross-selling initiatives and capturing growth from trends in grid modernization, rural broadband, and digital applications [13][14] - The company is committed to digital transformation and has launched new IoT solutions to enhance customer operations [16][18] - WESCO is increasing its cost and sales synergy targets for its three-year integration program from $500 million to $600 million [42][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand across all end markets, despite supply chain constraints [66] - The company expects to outperform the market in 2022, with sales growth projected at 5% to 8% [53][54] - Management highlighted the importance of maintaining supply chain integrity and resilience as a core value proposition [102] Other Important Information - WESCO was recognized as one of the world's best employers and included in Bloomberg's Gender Equality Index for the fourth consecutive year [22] - The company is committed to responsible ESG practices and has set new improvement goals for 2030 [21] Q&A Session Summary Question: Demand outlook for 2022 and backlog conversion - Management noted strong demand across all end markets and indicated that backlog is expected to convert to sales as supply chains are rebuilt [66][72] Question: Corporate expenses and hiring plans - Management explained that corporate expenses are expected to increase due to digital transformation investments and hiring [78][79] Question: Gross margin and inventory management - Management discussed the benefits of inventory gains and the impact of inflation on costs, indicating a positive outlook for gross margins [81][83] Question: Synergies and operational improvements - Management clarified that synergies would not be front-end loaded and would be realized throughout the year as integration progresses [92][93]
WESCO International(WCC) - 2021 Q3 - Quarterly Report
2021-11-05 20:37
FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-14989 WESCO International, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of inco ...
WESCO International(WCC) - 2021 Q3 - Earnings Call Transcript
2021-11-04 20:43
WESCO International, Inc. (NYSE:WCC) Q3 2021 Results Conference Call November 4, 2021 10:00 AM ET Company Participants Leslie Hunziker - Senior Vice President of Investor Relations John Engel - President and Chief Executive Officer David Schulz - Executive Vice President and Chief Financial Officer Conference Call Participants Sam Darkatsh - Raymond James Deane Dray - RBC Capital Markets David Manthey - Robert W. Baird Christopher Glynn - Oppenheimer Nigel Coe - Wolfe Research Steve Barger - Keybanc Capital ...
WESCO International(WCC) - 2021 Q3 - Earnings Call Presentation
2021-11-04 20:40
Financial Performance - Sales increased by 14% year-over-year to $4,728 million[15] and 3% sequentially on an organic basis[9] - Gross profit increased by 24% year-over-year to $1,008 million[15] - Adjusted EBITDA increased by 31% year-over-year to $330 million[15], representing 7% of sales[16] - Adjusted diluted EPS increased by 65% year-over-year to $2.74[15] - Realized cost synergies in Q3 were $50 million[15] Business Segments - Electrical & Electronic Solutions (EES) sales increased by 19% organically[24], with adjusted EBITDA at $174 million, representing 8.8% of sales[24] - Communications & Security Solutions (CSS) sales increased by 6% organically[27], with adjusted EBITDA at $134 million, representing 9% of sales[28] - Utility & Broadband Solutions (UBS) sales increased by 15% organically[31], with adjusted EBITDA at $115 million, representing 9.1% of sales[31] Synergies and Leverage - $105 million of incremental sales generated in Q3 with $220 million generated since merger closed[11] - On track to deliver $500 million in cross-sell synergies by 2023[13] - Leverage improved by 1.6x since the Anixter merger 15 months ago, reaching 4.1x[10, 39] Outlook - The company raised its 2021 outlook, expecting reported sales growth of 11%-13% compared to 2020 pro forma sales of $16 billion[10, 41] - Adjusted EBITDA margin is expected to be 6.4%-6.5%[41] - Adjusted EPS is projected to be $9.20-$9.40[41]
WESCO International(WCC) - 2021 Q2 - Earnings Call Transcript
2021-08-07 18:25
Wesco International, Inc. (NYSE:WCC) Q2 2021 Earnings Conference Call August 5, 2021 10:00 AM ET Company Participants Leslie Hunziker - SVP, IR & Corporate Communications John Engel - Chairman, President & CEO David Schulz - EVP & CFO Conference Call Participants Deane Dray - RBC Capital Markets Samuel Darkatsh - Raymond James & Associates Nigel Coe - Wolfe Research Robert Barger - KeyBanc Capital Markets Christopher Glynn - Oppenheimer David Manthey - Robert W. Baird & Co. Christopher Dankert - Loop Capita ...
WESCO International(WCC) - 2021 Q2 - Quarterly Report
2021-08-06 20:16
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-14989 WESCO International, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpora ...
WESCO International(WCC) - 2021 Q2 - Earnings Call Presentation
2021-08-06 14:29
WESCO® 1 NYSE: WCC Second Quarter 2021 Webcast Presentation August 5, 2021 2 Forward-Looking Statements All statements made herein that are not historical facts should be considered as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. These statements include, but are not limited to, statements regarding the expected benefit ...
WESCO International(WCC) - 2021 Q1 - Earnings Call Presentation
2021-05-12 20:28
NYSE: WCC 1 First Quarter 2021 Webcast Presentation May 6, 2021 2 Forward-Looking Statements All statements made herein that are not historical facts should be considered as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. These statements include, but are not limited to, statements regarding the expected benefits and costs ...
WESCO International(WCC) - 2021 Q1 - Earnings Call Transcript
2021-05-09 12:06
Financial Data and Key Metrics Changes - First quarter sales increased by more than 3% year-over-year, with backlog reaching an all-time record level, up more than 20% since December [5][13] - Gross margin improved by 50 basis points year-over-year, reaching 20.1%, the highest since 2016 on a pro forma basis [13][14] - Adjusted EBITDA was $217 million, up $35 million from the prior year, representing 5.4% of sales, a 90 basis point increase [16][20] Business Line Data and Key Metrics Changes - EES segment sales increased by 4% year-over-year, with adjusted EBITDA at 6.5% of sales, up 130 basis points [22][23] - CSS segment sales decreased by 4% year-over-year, but adjusted EBITDA improved to 7.3% of sales, 40 basis points higher than the prior year [24][25] - UBS segment sales were slightly down year-over-year but up 2% on a workday adjusted basis, with adjusted EBITDA at $84 million, up 100 basis points [26] Market Data and Key Metrics Changes - The utility market remains stable, with strong demand for grid modernization and broadband services, benefiting from federal funding initiatives [26][29] - The non-residential construction market is expected to decline, impacting the EES segment, while the CSS segment is poised to benefit from data center growth [29][70] Company Strategy and Development Direction - The company is focused on accelerating integration with Anixter, targeting $170 million in cost synergies for 2021, an increase of $40 million from previous estimates [18][19] - Strategic initiatives include optimizing the supply chain network and enhancing service capabilities through facility consolidation [11][12] - The company is well-positioned to capitalize on growth trends in electrification, automation, communications, and security [12][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic recovery and the company's ability to manage supply chain challenges effectively [39][60] - The outlook for 2021 has been revised upward, with expected sales growth of 4.5% to 7.5% and adjusted EBITDA margin of 5.8% to 6.1% [28][30] - Management highlighted the importance of digital transformation and talent acquisition in driving future growth [62] Other Important Information - The company generated strong free cash flow, representing over 140% of net income, and has reduced net debt by more than $500 million since the merger [27][28] - The effective tax rate is expected to be approximately 22%, slightly lower than previously anticipated [31] Q&A Session Summary Question: Can you discuss the price-cost dynamics and supply chain disruptions? - Management noted inflation in commodity prices and effective execution of gross margin improvement programs, with no material supply chain disruptions observed in Q1 [37][39] Question: Is gross margin expected to rise sequentially throughout the year? - Management indicated that while they do not provide specific guidance, they are focused on continuing gross margin improvement [47][48] Question: What is the breakdown of the $40 million increase in synergies? - The majority of the synergy increase is attributed to SG&A reductions, with some anticipated benefits in gross margin in the second half of 2021 [50][51] Question: How much pricing benefit was realized in Q1? - Pricing was estimated to contribute one to two points of positive impact in Q1, with no specific pricing benefit included in guidance for the remainder of the year [53] Question: What are the secular growth trends in the utility space? - Management confirmed strong secular growth trends in both the utility and broadband sectors, positioning the company favorably for future growth [68][70]