PITTSBURGH, Jan. 31, 2013 /PRNewswire/ --

Fourth quarter results compared to the prior year:


    --  Consolidated sales of $1.64 billion, growth of 3.5%
    --  Earnings per share of $0.95; adjusted earnings per share of $1.06,
        excluding EECOL Electric and non-recurring charges
    --  Free cash flow of $95 million or 195% of net income

Full year results compared to the prior year:


    --  Record sales of $6.6 billion, up 7.4%
    --  Earnings per share of $4.38, growth of 10.6%; adjusted earnings per
        share of $4.49, excluding EECOL Electric and non-recurring charges
    --  Free cash flow of $265 million or 118% of net income

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 fourth quarter and full-year financial results.

The following results are for the quarter-ended December 31, 2012 compared to the quarter-ended December 31, 2011:


    --  Consolidated net sales were $1,644.4 million for the fourth quarter of
        2012, compared to $1,589.5 million for the fourth quarter of 2011, an
        increase of 3.5%.  Acquisitions and foreign exchange positively impacted
        consolidated sales by approximately 4.3% and 0.5%, respectively,
        resulting in an organic growth rate of approximately negative 1.3%.
        Sequentially, fourth quarter 2012 sales decreased 0.7%.
    --  Gross profit of $337.3 million, or 20.5% of sales, for the fourth
        quarter of 2012 was down 10 basis points, compared to $328.0 million, or
        20.6% of sales, for the fourth quarter of 2011.
    --  Selling, general & administrative (SG&A) expenses of $239.8 million, or
        14.6% of sales, for the fourth quarter of 2012 increased 30 basis
        points, compared to $227.8 million, or 14.3% of sales, for the fourth
        quarter of 2011.  Excluding non-recurring EECOL acquisition-related
        charges of $4.0 million, fourth quarter SG&A expenses of $235.8 million,
        or 14.3% of sales, is comparable to the fourth quarter of 2011.
    --  Operating profit was $86.4 million for the current quarter, down 5.6%
        from $91.5 million for the comparable 2011 quarter.  Operating profit as
        a percentage of sales was 5.3% in 2012, down 50 basis points from 5.8%
        in 2011.
    --  Total interest expense for the fourth quarter of 2012 was $14.7 million,
        compared to $12.0 million for the fourth quarter of 2011.  Non-cash
        interest expense, which includes convertible debt interest, interest
        related to uncertain tax positions, and the amortization of deferred
        financing fees, for the fourth quarter of 2012 and 2011 was $0.7 million
        and $1.6 million, respectively.
    --  Loss on debt extinguishment for the fourth quarter of 2012 was $3.5
        million which was due to the redemption of all the outstanding 7.50%
        Senior Subordinated Notes due 2017.
    --  The effective tax rate for the current quarter was 28.7%, compared to
        31.1% for the prior year quarter.
    --  Net income of $48.6 million for the current quarter was down 11.3% from
        $54.8 million for the prior year quarter.
    --  Earnings per diluted share for the fourth quarter of 2012 were $0.95 per
        share, based on 51.4 million diluted shares, down 15.2% from $1.12 per
        diluted share in the fourth quarter of 2011, based on 49.0 million
        diluted shares. Excluding the impact of EECOL Electric and non-recurring
        charges, fourth quarter of 2012 adjusted earnings per diluted share were
        $1.06.
    --  Free cash flow for the fourth quarter of 2012 was $94.9 million, or 195%
        of net income, compared to $86.4 million for the fourth quarter of 2011.

Mr. John J. Engel, WESCO's Chairman and Chief Executive Officer, stated, "Our fourth quarter results reflect solid execution in a challenging economic environment and a continuation of the market trends experienced in the third quarter. We continued to see the positive impact of our productivity and LEAN initiatives in gross margins, operating costs, and free cash flow, excluding the non-recurring acquisition and debt extinguishment costs. In addition, we were pleased to complete the acquisition of EECOL Electric in mid-December, which strengthens our Canadian operations and establishes a solid foundation for WESCO in South America."

Mr. Engel continued, "On a full year basis, operating margins reached 5.6%, up 20 basis points versus prior year, as sales grew 7.4% to a record $6.6 billion. As a result, earnings per share grew at a double-digit rate again last year. 2012 included many noteworthy accomplishments, and I am very proud of the extra effort and results delivered by all our associates around the globe working together as the One WESCO team."

The following results are for the full-year period ended December 31, 2012 compared to the full-year period ended December 31, 2011:


    --  Consolidated net sales were $6,579.3 million, compared to $6,125.7
        million, an increase of 7.4%.  Acquisitions positively impacted
        consolidated sales by approximately 3.3%, while foreign exchange rate
        negatively impacted sales by approximately 0.3%, resulting in organic
        sales growth of approximately 4.4%.
    --  Gross profit was $1,331.4 million, or 20.2% of sales, compared to
        $1,236.6 million, or 20.2% of sales.
    --  SG&A expenses of $924.8 million, or 14.1% of sales, improved 10 basis
        points, compared to $872.0 million, or 14.2% of sales.
    --  Operating profit was $369.0 million, up 10.8% from $333.0 million for
        the comparable 2011 period.  Operating profit as a percentage of sales
        was 5.6% in 2012, up 20 basis points from 5.4% in 2011.
    --  Total interest expense was $47.7 million, compared to $53.6 million. 
        Non-cash interest expense, which includes convertible debt interest,
        interest related to uncertain tax positions, and the amortization of
        deferred financing fees, for 2012 and 2011 was $1.5 million and $8.8
        million, respectively.
    --  Loss on debt extinguishment in 2012 was $3.5 million which was due to
        the redemption of all the outstanding 7.50% Senior Subordinated Notes
        due 2017.
    --  The effective full-year tax rate was 29.5% for 2012 compared to 29.8%
        for 2011.
    --  Net income of $223.9 million for the full-year was up 14.1% from $196.3
        million for the prior year.
    --  Earnings per diluted share for 2012 were up 10.6% to $4.38 per diluted
        share, based on 51.1 million diluted shares, versus $3.96 per diluted
        share for 2011, based on 49.6 million diluted shares. Excluding the
        impact of EECOL Electric and non-recurring charges, 2012 adjusted
        earnings per diluted share were $4.49.
    --  Full-year free cash flow was $265.1 million, or 118% of net income,
        compared to $134.2 million in the prior year.

Mr. Engel continued, "Our value proposition and go-to market strategies provide significant long-term growth and value creation opportunities for both our customers and shareholders. We continue to see the benefits of our investments, growth strategy and effective execution and expect that to continue this year with the second half stronger than the first. As a result of playing offense over the last several years, we have strengthened our business and enhanced our position in the global marketplace."

Teleconference Access
WESCO will conduct a teleconference to discuss the fourth quarter earnings as described in this News Release on Thursday, January 31, 2013, at 11:00 a.m. E.S.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. 2012 annual sales were approximately $6.6 billion. The Company employs approximately 8,900 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 475 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.

http://www.wesco.com



                                                                       WESCO INTERNATIONAL, INC.

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

                                                                                                   Three Months       Three Months
                                                                                                       Ended             Ended
                                                                                                   December 31,       December 31,
                                                                                                           2012               2011

    Net sales                                                                                          $1,644.4                    $1,589.5
    Cost of goods sold (excluding                                                                       1,307.1 79.5%                       1,261.5 79.4%
    depreciation and amortization below)
    Selling, general and administrative expenses                                                          239.8 14.6%                         227.8 14.3%
    Depreciation and amortization                                                                          11.1                         8.7
                                                                                                           ----                         ---
    Income from operations                                                                                 86.4  5.3%                          91.5  5.8%
    Interest expense, net                                                                                  14.7                        12.0
    Loss on debt extinguishment                                                                             3.5                                  -
                                                                                                            ---                                ---
    Income before income taxes                                                                             68.2  4.1%                          79.5  5.0%
    Provision for income taxes                                                                             19.6                        24.7
                                                                                                           ----
    Net income attributable to WESCO International, Inc.                                                  $48.6  3.0%                         $54.8  3.4%
                                                                                                          =====                               =====

    Earnings per diluted common share                                                                     $0.95                       $1.12
    Weighted average common shares outstanding
    and common share equivalents used in computing
    earnings per diluted share (in millions)                                                               51.4                        49.0


                                                                       WESCO INTERNATIONAL, INC.

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

                                                                                                  Twelve Months       Twelve Months
                                                                                                      Ended               Ended
                                                                                                  December 31,         December 31,
                                                                                                           2012                 2011

    Net sales                                                                                          $6,579.3             $6,125.7
    Cost of goods sold (excluding                                                                       5,247.9 79.8%                4,889.1     79.8%
    depreciation and amortization below)
    Selling, general and administrative expenses                                                          924.8 14.1%                  872.0     14.2%
    Depreciation and amortization                                                                          37.6                 31.6
                                                                                                           ----                 ----
    Income from operations                                                                                369.0  5.6%                  333.0      5.4%
    Interest expense, net                                                                                  47.7                 53.6
    Loss on debt extinguishment                                                                             3.5                                -
                                                                                                            ---                              ---
    Income before income taxes                                                                            317.8  4.8%                  279.4      4.6%
    Provision for income taxes                                                                             93.9                 83.1
    Net income attributable to WESCO International, Inc.                                                 $223.9  3.4%                 $196.3      3.2%
                                                                                                         ======                       ======

    Earnings per diluted common share                                                                     $4.38                $3.96
    Weighted average common shares outstanding
    and common share equivalents used in computing
    earnings per diluted share (in millions)                                                               51.1                 49.6




                                              WESCO INTERNATIONAL, INC.


                                        CONDENSED CONSOLIDATED BALANCE SHEET
                                            (dollar amounts in millions)
                                                     (Unaudited)

                                                              December 31,   December 31,
                                                                      2012           2011
                          Assets
    Current Assets
    Cash and cash
     equivalents                                                     $86.1                   $63.9
    Trade accounts
     receivable, net                                               1,036.2                   939.4
    Inventories, net                                                 794.0                   627.0
    Other current assets                                             170.9                   107.2
                                                                     -----                   -----
    Total current assets                                           2,087.2                 1,737.5
    Other assets                                                   2,527.8                 1,341.0
                                                                   -------                 -------
    Total assets                                                  $4,615.0                $3,078.5
                                                                  ========                ========


                        Liabilities and
                          Stockholders'
                             Equity
    Current Liabilities
    Accounts payable                                                $706.6                  $642.8
    Current debt                                                      32.8                     6.4
    Other current
     liabilities                                                     225.5                   196.7
                                                                     -----                   -----
    Total current
     liabilities                                                     964.9                   845.9

    Long-term debt                                                 1,702.3                   642.9
    Other noncurrent
     liabilities                                                     371.8                   243.8
                                                                     -----                   -----
    Total liabilities                                              3,039.0                 1,732.6

    Stockholders' Equity
    Total stockholders'
     equity                                                        1,576.0                 1,345.9
                                                                   -------                 -------
    Total liabilities
     and stockholders'
     equity                                                       $4,615.0                $3,078.5
                                                                  ========                ========




                                                                        WESCO INTERNATIONAL, INC.


                                                             CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                                                      (dollar amounts in millions)
                                                                               (Unaudited)

                                                                                                       Twelve Months Ended  Twelve Months Ended
                                                                                                        December 31, 2012    December 31, 2011
    Operating Activities:
    Net income                                                                                                      $223.9                      $196.3
    Add back (deduct):
    Depreciation and amortization                                                                                     37.6                        31.6
    Deferred income taxes                                                                                             31.6                        14.4
    Change in Trade and other receivables, net                                                                        36.4                      (143.5)
    Change in Inventories, net                                                                                       (29.4)                      (33.8)
    Change in Accounts Payable                                                                                       (24.3)                      101.7
    Other                                                                                                             12.4                         0.8
                                                                                                                      ----                         ---
    Net cash provided by operating activities                                                                        288.2                       167.5

    Investing Activities:
    Capital expenditures                                                                                             (23.1)                      (33.3)
    Acquisition payments                                                                                          (1,289.5)                      (48.1)
    Proceeds from sale of assets                                                                                       1.6                           -
    Other                                                                                                                -                         0.1
                                                                                                                       ---                         ---
    Net cash used by investing activities                                                                         (1,311.0)                      (81.3)

    Financing Activities:
    Debt borrowing (repayments), net                                                                               1,067.8                       (84.1)
    Equity activity, net                                                                                               2.3                        (2.0)
    Other                                                                                                            (26.1)                       15.2
                                                                                                                     -----                        ----
    Net cash provided (used) by financing                                                                          1,044.0                       (70.9)
    activities

    Effect of exchange rate changes on cash                                                                            1.0                        (5.0)
    and cash equivalents


    Net change in cash and cash equivalents                                                                           22.2                        10.3
    Cash and cash equivalents at the beginning of the period                                                          63.9                        53.6
    Cash and cash equivalents at the end of the period                                                               $86.1                       $63.9
                                                                                                                     =====                       =====

NON-GAAP FINANCIAL MEASURES

This earnings release includes certain non-GAAP financial measures. These financial measures include financial leverage, free cash flow, gross profit, organic sales growth, and adjusted earnings per share. 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 Months               Twelve Months
                                        Ended                       Ended
                                    December 31,                December 31,
                                             2012                        2011
     Financial
     Leverage:
    Income
     from
     operations                          $369,005                             $332,979
     Depreciation
     and
     amortization                          37,561                               31,607
                                           ------                               ------
    EBITDA                               $406,566                             $364,586
                                         ========                             ========

                                    December 31,                December 31,
                                             2012                        2011
     Current
     debt                                 $32,834                               $6,411
    Long-
     term
     debt                               1,702,338                              642,922
    Debt
     discount
     related
     to
     convertible
     debentures
     and
     term
     loan
     (1)                                  182,213                              175,908
    Total
     debt
     including
     debt
     discount                          $1,917,385                             $825,241
                                       ==========                             ========

     Financial
     leverage
     ratio                                    4.7                                  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 Months  Three Months        Twelve Months         Twelve Months
                                         Ended         Ended               Ended                 Ended
                                     December 31,  December 31,        December 31,          December 31,
    Free Cash Flow:                          2012          2011                 2012                  2011
    (dollar amounts in millions)
    Cash flow provided by operations        $98.5               $95.7                $288.2                $167.5
    Less:  Capital expenditures              (3.6)               (9.3)                (23.1)                (33.3)
                                             ----                                     -----                 -----
    Free Cash flow                          $94.9               $86.4                $265.1                $134.2
                                            =====               =====                ======                ======


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

    (1)The convertible debentures and
     term loan 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 thousands)
                                    (Unaudited)

                                          Three Months           Three Months
                                               Ended                 Ended
    Quarterly
     Gross
     Profit:                              December 31,           December 31,
                                                   2012                   2011
    Net Sales                                  $1,644.4                        $1,589.5
    Cost of
     goods
     sold
     (excluding
     depreciation
     and
     amortization)                              1,307.1                         1,261.5
                                                -------
    Gross
     profit                                      $337.3                          $328.0
                                                 ======                          ======
    Gross
     margin                                        20.5%                           20.6%

                                          Twelve Months          Twelve Months
                                               Ended                 Ended
    Annual
     Gross
     Profit:                              December 31,           December 31,
                                                   2012                   2011
    Net Sales                                  $6,579.3                        $6,125.7
    Cost of
     goods
     sold
     (excluding
     depreciation
     and
     amortization)                              5,247.9                         4,889.1
                                                -------                         -------
    Gross
     profit                                    $1,331.4                        $1,236.6
                                               ========                        ========
    Gross
     margin                                        20.2%                           20.2%


    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      Twelve
                                                   Months
                                     Ended         Ended
    Organic Sales Growth:        December 31,  December 31,
                                         2012          2012
    Change in net sales                   3.5%                7.4%
    Impact from acquisitions              4.3%                3.3%
    Impact from foreign exchange
     rates                                0.5%              (0.3)%
                                          ---               -----
    Organic sales growth                (1.3)%                4.4%
                                        =====                 ===


    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 and foreign
     exchange rates from the overall
     percentage change in consolidated
     net sales.

    Adjusted Earnings per Share:           Three Months     Twelve
                                                            Months
                                               Ended        Ended
                                           December 31, December 31,
                                                   2012         2012
    Income before income taxes                    $68.2              $317.8
         Non-recurring acquisition charges          4.0                 4.0
         Loss on debt extinguishment                3.5                 3.5
         EECOL Electric results                     0.9                 0.9
    Adjusted Income before income taxes            76.6               326.2
          Provision for income taxes               22.0                96.3
                                                   ----                ----
    Adjusted Net Income attributable to
     WESCO International, Inc.                    $54.6              $229.9
                                                  =====              ======

    Adjusted Earnings per Diluted Common
     Share                                        $1.06                4.49
                                                  =====                ====

    Weighted average common shares
     outstanding and
    common share equivalents used in
     computing earnings per
    diluted share (in millions)                    51.4                51.1

    Note: Adjusted earnings per share is
     provided by the Company as an
     additional financial measure.
     Adjusted earnings per share is
     calculated by adding non-recurring
     acquisition charges, loss on debt
     extinguishment, and EECOL Electric
     results to Income before Income
     Taxes. The Adjusted Net Income
     attributable to WESCO International,
     Inc. is divided by the weighted
     average common shares outstanding
     and common share equivalents.

SOURCE WESCO International, Inc.