PITTSBURGH, April 19, 2012 /PRNewswire/ --

First quarter results compared to the prior year:


    --  Earnings per diluted share of $1.03 increased 39%
    --  Net income of $52.9 million increased 42%
    --  Operating margins improved to 5.2%, up 70 basis points
    --  Consolidated sales of $1.61 billion increased 12%

WESCO International, Inc. (NYSE: WCC), a leading provider of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced supply chain management and logistics services, today announced its 2012 first quarter results.

(Logo: http://photos.prnewswire.com/prnh/20030508/WCCLOGO )

The following are results for the three months ended March 31, 2012 compared to the three months ended March 31, 2011:


    --  Consolidated net sales were $1,606.0 million for the first quarter of
        2012, compared to $1,431.3 million for the first quarter of 2011, an
        increase of 12.2%.  Acquisitions positively impacted consolidated sales
        by 2.6%, while one additional workday positively impacted sales by 1.6%
        and foreign exchange provided a 0.2% negative impact resulting in a
        normalized organic growth rate of approximately 8.2%.  Sequentially,
        first quarter 2012 sales increased 1.0%.  Sales per workday in March
        were at an all-time record level for any month.
    --  Gross profit of $319.7 million, or 19.9% of sales, for the first quarter
        of 2012 was down 10 basis points, compared to $286.0 million, or 20.0%
        of sales, for the first quarter of 2011.
    --  Selling, general & administrative (SG&A) expenses of $228.1 million, or
        14.2% of sales, for the first quarter of 2012 improved 70 basis points,
        compared to $213.8 million, or 14.9% of sales, for the first quarter of
        2011.
    --  Operating profit was $83.5 million for the current quarter, up 29.0%
        from $64.7 million for the comparable 2011 quarter.  Operating profit as
        a percentage of sales was 5.2% in 2012, up 70 basis points from 4.5% in
        2011.
    --  Total interest expense for the first quarter of 2012 was $9.0 million,
        compared to $12.6 million for the first quarter of 2011.  Cash interest
        expense was $10.8 million for the first quarter of 2012.  Non-cash
        interest expense, which includes convertible debt interest, interest
        related to uncertain tax positions, and the amortization of deferred
        financing fees, amounted to $1.9 million of income as a result of a
        favorable adjustment of $3.2 million of previously recorded interest
        related to uncertain tax positions.  This adjustment was a result of a
        favorable Internal Revenue Service appeals settlement in the first
        quarter of 2012 related to the years 2000 to 2006.
    --  The effective tax rate for the current quarter was 29.0%, compared to
        28.4% for the prior year first quarter.
    --  Net income of $52.9 million for the current quarter was up 41.9% from
        $37.3 million for the prior year first quarter.
    --  Earnings per diluted share for the first quarter of 2012 were $1.03 per
        share, based on 51.3 million diluted shares, and was up 39.2% from $0.74
        per share in the first quarter of 2011, based on 50.4 million diluted
        shares.  The adjustment of previously recorded interest related to
        uncertain tax positions positively impacted first quarter 2012 earnings
        per diluted share by approximately $0.04.
    --  Free cash flow for the first quarter of 2012 was $53.8 million, compared
        to $26.2 million for the first quarter of 2011.

Mr. John J. Engel, WESCO's Chairman and Chief Executive Officer, stated, "2012 is off to a good start, and we are pleased with our first quarter results, which reflect effective execution of our growth strategy and our ability to deliver strong sales and earnings growth in a challenging economic environment. We have now posted seven consecutive quarters of double digit sales growth and six consecutive quarters of EPS growth of well over 25% on a year-over-year basis. Operating margins improved 70 basis points to 5.2% and free cash flow exceeded net income, demonstrating the continued effectiveness and operating leverage of our business model."

Mr. Engel continued, "We are building on the positive momentum that we have generated across our company over the last few years, and continue to execute our One WESCO growth strategy, which targets the countless customer service opportunities within our large, fragmented end markets. Through these One WESCO initiatives, we are providing customers with the leading products, services, and supply chain solutions they need to meet their global MRO, OEM, and Capital Project requirements."

Teleconference Access
WESCO will conduct a teleconference to discuss the first quarter earnings as described in this News Release on Thursday, April 19, 2012, at 11:00 a.m. E.D.T. The conference call will be broadcast live over the Internet and can be accessed from the Company's website at http://www.wesco.com. The conference call will be archived on this Internet site for seven days.

WESCO International, Inc. (NYSE: WCC), a publicly traded Fortune 500 holding company headquartered in Pittsburgh, Pennsylvania, is a leading provider of electrical, industrial, and communications maintenance, repair and operating ("MRO") and original equipment manufacturers ("OEM") product, construction materials, and advanced supply chain management and logistic services. 2011 annual sales were approximately $6.1 billion. The Company employs approximately 7,300 people, maintains relationships with over 18,000 suppliers, and serves over 65,000 active customers worldwide. Customers include commercial and industrial businesses, contractors, government agencies, institutions, telecommunications providers and utilities. WESCO operates eight fully automated distribution centers and approximately 400 full-service branches in North America and international markets, providing a local presence for customers and a global network to serve multi-location businesses and multi-national corporations.

The matters discussed herein may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. Certain of these risks are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as well as the Company's other reports filed with the Securities and Exchange Commission.


                                              WESCO INTERNATIONAL, INC.
                                      CONDENSED CONSOLIDATED STATEMENT OF INCOME
                                (dollar amounts in millions, except per share amounts)
                                                     (Unaudited)

                                             Three                                   Three
                                            Months                                   Months
                                             Ended                                   Ended
                                           March 31,                               March 31,
                                                2012                                    2011

    Net sales                               $1,606.0                                         $1,431.3
    Cost of goods sold
     (excluding                              1,286.3             80.1%                                1,145.3 80.0%
    depreciation and
     amortization below)
    Selling, general and
     administrative expenses                   228.1             14.2%                                  213.8 14.9%
    Depreciation and
     amortization                                8.1                                              7.5
                                                 ---                                              ---
    Income from operations                      83.5              5.2%                                   64.7  4.5%
    Interest expense, net                        9.0                                             12.6
                                                 ---                                             ----
    Income before income taxes                  74.5              4.6%                                   52.1  3.6%
    Provision for income taxes                  21.6                                             14.8
                                                ----                                             ----
    Net income attributable to
     WESCO International, Inc.                 $52.9              3.3%                                  $37.3  2.6%
                                               =====                                                    =====

    Earnings per diluted common
     share                                     $1.03                                            $0.74
    Weighted average common
     shares outstanding and
     common
    share equivalents used in
     computing earnings per
     diluted
    share (in millions)                         51.3                                             50.4



                                        WESCO INTERNATIONAL, INC.
                                   CONDENSED CONSOLIDATED BALANCE SHEET
                                       (dollar amounts in millions)
                                               (Unaudited)

                                                          March 31,     December 31,
                                                               2012             2011
                         Assets
    Current Assets
    Cash and cash
     equivalents                                              $63.6                     $63.9
    Trade accounts
     receivable, net                                        1,006.4                     939.4
    Inventories, net                                          634.7                     627.0
    Other current assets                                       89.7                     107.2
                                                               ----                     -----
    Total current assets                                    1,794.4                   1,737.5
    Other assets                                            1,352.8                   1,341.0
                                                            -------                   -------
    Total assets                                           $3,147.2                  $3,078.5
                                                           ========                  ========


             Liabilities and
              Stockholders' Equity
    Current Liabilities
    Accounts payable                                         $699.3                    $642.8
    Current debt and
     short-term
     borrowings                                                15.2                       6.4
    Other current
     liabilities                                              163.7                     196.7
                                                              -----                     -----
    Total current
     liabilities                                              878.2                     845.9

    Long-term debt                                            603.3                     642.9
    Other noncurrent
     liabilities                                              254.5                     243.8
                                                              -----                     -----
    Total liabilities                                       1,736.0                   1,732.6

    Stockholders' Equity
    Total stockholders'
     equity                                                 1,411.2                   1,345.9
                                                            -------                   -------
    Total liabilities and
     stockholders' equity                                  $3,147.2                  $3,078.5
                                                           ========                  ========




                                     WESCO INTERNATIONAL, INC.
                          CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (dollar amounts in millions)
                                            (Unaudited)

                                                               Three       Three
                                                              Months      Months
                                                               Ended       Ended
                                                             March 31,   March 31,
                                                                2012        2011
    Operating Activities:
    Net income                                                   $52.9       $37.3
    Add back (deduct):
    Depreciation and amortization                                  8.1         7.5
    Deferred income taxes                                          7.2        (0.1)
    Change in Trade and other
     receivables, net                                            (38.2)      (69.7)
    Change in Inventories, net                                     2.0       (38.7)
    Change in Accounts Payable                                    50.3       107.4
    Other                                                        (24.0)      (11.9)
                                                                 -----       -----
    Net cash provided by operating
     activities                                                   58.3        31.8

    Investing Activities:
    Capital expenditures                                          (4.5)       (5.6)
    Acquisition payments                                         (22.0)       (7.8)
    Other                                                            -         0.1
                                                                   ---         ---
    Net cash used by investing
     activities                                                  (26.5)      (13.3)

    Financing Activities:
    Debt repayments, net                                         (32.3)      (22.6)
    Equity activity, net                                          (0.6)          -
    Other                                                         (2.1)        1.5
                                                                  ----         ---
    Net cash used by financing
     activities                                                  (35.0)      (21.1)

    Effect of exchange rate changes
     on cash and cash equivalents                                  2.9         1.4
                                                                   ---         ---

    Net change in cash and cash
     equivalents                                                  (0.3)       (1.2)
    Cash and cash equivalents at the
     beginning of the period                                      63.9        53.6
    Cash and cash equivalents at the
     end of the period                                           $63.6       $52.4
                                                                 =====       =====

NON-GAAP FINANCIAL MEASURES
This earnings release includes certain non-GAAP financial measures. These financial measures include financial leverage, free cash flow, gross profit and organic sales growth. The Company believes that these non-GAAP measures are useful to investors in order to provide a better understanding of the Company's capital structure position, liquidity, and organic growth trends on a comparable basis. Additionally, certain non-GAAP measures either focus on or exclude transactions of an unusual nature, allowing investors to more easily compare the Company's financial performance from period to period. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above.




                            WESCO INTERNATIONAL, INC.
                  RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                          (dollar amounts in thousands)
                                   (Unaudited)

                                           Twelve                   Twelve
                                           Months                   Months
                                           Ended                    Ended
                                         March 31,              December 31,
                                              2012                      2011
    Financial
     Leverage:
    Income from
     operations                           $351,767                           $332,979
    Depreciation
     and
     amortization                           32,140                             31,607
                                            ------                             ------
    EBITDA                                $383,907                           $364,586
                                          ========                           ========

                                         March 31,              December 31,
                                              2012                      2011
    Short-term
     debt                                  $12,734                         $        -
    Current debt                             2,482                              6,411
    Long-term
     debt                                  603,328                            642,922
    Debt
     discount
     related to
     convertible
     debentures
     (1)                                   175,200                            175,908
    Total debt
     including
     debt
     discount                             $793,744                           $825,241
                                          ========                           ========

    Financial
     leverage
     ratio                                     2.1                                2.3

Note: Financial leverage is provided by the Company as an indicator of capital structure position. Financial leverage is calculated by dividing total debt, including debt discount, by the trailing twelve months earnings before interest, taxes, depreciation and amortization (EBITDA).


                                        Three      Three
                                       Months      Months
                                       Ended       Ended
                                     March 31,  March 31,
    Free Cash Flow:                       2012        2011
    (dollar amounts in millions)
    Cash flow provided by operations     $58.3             $31.8
    Less:  Capital expenditures           (4.5)             (5.6)
                                          ----              ----
    Free Cash flow                       $53.8             $26.2
                                         =====             =====

Note: Free cash flow is provided by the Company as an additional liquidity measure. Capital expenditures are deducted from operating flow to determine free cash flow. Free cash flow is available to provide a source of funds for any of the Company's financing needs.

(1) The convertible debentures are presented in the consolidated balance sheets in long-term debt net of the unamortized discount.




                             WESCO INTERNATIONAL, INC.
                   RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                            (dollar amounts in millions)
                                    (Unaudited)

                                          Three Months           Three Months
                                              Ended                  Ended
    Gross
     Profit:                                March 31,              March 31,
                                                  2012                   2011
    Net Sales                                 $1,606.0                        $1,431.3
    Cost of
     goods sold
     (excluding
     depreciation
     and
     amortization)                             1,286.3                         1,145.3
                                               -------                         -------
    Gross
     profit                                     $319.7                          $286.0
                                                ======                          ======
    Gross
     margin                                       19.9%                           20.0%

Note: Gross profit is provided by the Company as an additional financial measure. Gross profit is calculated by deducting cost of goods sold, excluding depreciation and amortization, from net sales. This amount represents a commonly used financial measure within the distribution industry. Gross margin is calculated by dividing gross profit by net sales.


                                                               Three
                                                              Months
                                                              Ended
    Normalized Organic Sales Growth:                        March 31,
                                                                 2012
    Change in net sales                                          12.2%
    Impact from acquisitions                                      2.6%
    Impact from foreign exchange
     rates                                                      (0.2)%
    Impact from number of workdays                                1.6%
                                                                  ---
    Normalized organic sales growth                               8.2%
                                                                  ===

Note: Organic sales growth is provided by the Company as an additional financial measure to provide a better understanding of the Company's sales growth trends. Organic sales growth is calculated by deducting the percentage impact on net sales from acquisitions, foreign exchange rates and number of workdays from the overall percentage change in consolidated net sales.

SOURCE WESCO International, Inc.