PITTSBURGH, July 25, 2013 /PRNewswire/ --

Second quarter results compared to the prior year:


    --  Consolidated sales of $1.89 billion, growth of 13.2%
    --  Gross margin of 20.7%, up 60 basis points
    --  Net income of $65 million, up 10.9%
    --  Earnings per share of $1.25, up 8.7%

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 2013 second quarter results.

The following are results for the three months ended June 30, 2013 compared to the three months ended June 30, 2012:




    --  Net sales were $1,894.0 million for the second quarter of 2013, compared
        to $1,672.7 million for the second quarter of 2012, an increase of
        13.2%.  Acquisitions positively impacted sales by 14.6%, foreign
        exchange negatively impacted sales by 0.2%, and organic sales declined
        1.2%.


    --  Gross profit of $392.6 million, or 20.7% of sales, for the second
        quarter of 2013 improved 60 basis points compared to $335.6 million, or
        20.1% of sales, for the second quarter of 2012.


    --  Selling, general & administrative (SG&A) expenses of $265.5 million, or
        14.0% of sales, for the second quarter of 2013 increased 20 basis
        points, compared to $231.2 million, or 13.8% of sales, for the second
        quarter of 2012.  Excluding acquisitions, SG&A declined $3.2 million
        from the prior year quarter.


    --  Operating profit was $109.9 million for the current quarter, up 14.4%
        from $96.0 million for the comparable 2012 quarter.  Operating profit as
        a percentage of sales was 5.8% in 2013, up 10 basis points from 5.7% in
        2012.


    --  Interest expense for the second quarter of 2013 was $21.8 million,
        compared to $11.5 million for the second quarter of 2012.  Interest
        expense increased for the quarter due to the increase in indebtedness in
        late 2012 associated primarily with the EECOL acquisition. Non-cash
        interest expense, which includes convertible debt interest, interest
        related to uncertain tax positions, and the amortization of deferred
        financing fees, for the second quarter of 2013 and 2012 was $2.1 million
        and $1.4 million, respectively.


    --  The effective tax rate for the current quarter was 25.8%, compared to
        30.3% for the prior year second quarter.


    --  Net income attributable to WESCO International, Inc. of $65.3 million
        for current quarter was up 10.9% from $58.9 million for the prior year
        quarter.


    --  Earnings per diluted share for the second quarter of 2013 were $1.25 per
        share, based on 52.3 million diluted shares, and were up 8.7% from $1.15
        per share in the second quarter of 2012, based on 51.1 million diluted
        shares.
    --  Free cash flow for the second quarter of 2013 was $33.6 million, or 52%
        of net income, compared to $49.1 million for the second quarter of 2012.

Mr. John J. Engel, WESCO's Chairman and Chief Executive Officer, stated, "Our second quarter results reflect continued solid execution in a challenging economic environment with end market conditions consistent with our prior expectations. While organic sales declined 1% versus prior year, business momentum improved through the quarter with June sales per workday up 2%, driven by growth in Lighting and continued strength in Utility. Our acquisitions continue to perform well and we remain on track to deliver our full year EPS accretion expectations for EECOL. Free cash flow was directed to debt reduction and our financial leverage is now at the upper end of our targeted range on a proforma basis. We are seeing the positive impact of our One WESCO sales, productivity and LEAN initiatives on our business as we continue to invest in our growth engines and manage an active acquisition pipeline. We see excellent opportunities to further expand and strengthen our portfolio in the second half of 2013 into 2014. We expect organic sales growth in the second half but less than our prior expectations, and have revised our full year outlook to approximately $5.15 to $5.35 earnings per diluted share, which equates to 18% to 22% growth over prior year, excluding the ArcelorMittal litigation impacts."

The following results are for the six months ended June 30, 2013 compared to the six months ended June 30, 2012.




    --  Net sales were $3,702.0 million for the first six months of 2013,
        compared to $3,278.7 million for the first six months of 2012.  The
        12.9% increase in sales includes a 15.3% positive impact from
        acquisitions, a 2.3% negative impact from organic sales, and a negative
        0.1% exchange rate impact.  Adjusting for the impact of one less workday
        in the period, normalized organic sales declined approximately 1.5%.


    --  Gross profit of $773.6 million, or 20.9% of sales, for the first six
        months of 2013 was up 90 basis points, compared to $655.4 million, or
        20.0% of sales, for the first six months of 2012.


    --  SG&A expenses of $493.0 million, or 13.3% of sales, for the first six
        months of 2013 decreased 70 basis points, compared to $459.3 million, or
        14.0% of sales, for the first six months of 2012.  SG&A expenses for the
        first six months of 2013 include a $36.1 million favorable impact
        resulting from the recognition of insurance coverage relating to a
        litigation-related charge recorded in the fourth quarter of 2012. 
        Excluding the impact of this favorable item, SG&A expenses were $529.1
        million, or 14.3% of sales.


    --  Operating profit was $246.7 million for the first six months of 2013, up
        37.4% from $179.6 million for the comparable 2012 period.  Operating
        profit as a percentage of sales was 6.7% in 2013, up 120 basis points
        from 5.5% in 2012.  Excluding the favorable impact resulting from the
        recognition of insurance coverage on a litigation matter, operating
        profit was $210.6 million, or 5.7% of sales.


    --  Interest expense for the first six months of 2013 was $43.7 million,
        compared to $20.4 million for the first six months of 2012.  Interest
        expense increased for the first six months of 2013 due to the increase
        in indebtedness in late 2012 associated with the EECOL acquisition. 
        Non-cash interest expense, which includes convertible debt interest,
        interest related to uncertain tax positions, and the amortization of
        deferred financing fees, for the first six months of 2013 and 2012 was
        $4.4 million of expense and $0.5 million of income, respectively. 
        Non-cash interest for the six months ended June 30, 2012 included 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 six-month tax rate was 26.4% for 2013 compared to 29.7%
        for 2012.


    --  Net income attributable to WESCO International, Inc. of $149.3 million
        for the first six months of 2013 was up 33.5% from $111.9 million for
        the first six months of 2012.  Excluding the favorable impacts of the
        recognition of insurance coverage on a litigation matter and the
        Internal Revenue Service appeals settlement in the first six months of
        2013 and 2012, respectively, adjusted net income for the first six
        months of 2013 was $123.8 million, compared to $109.9 million in the
        first six months of 2012, an increase of 12.6%.


    --  Earnings per diluted share for the first six months of 2013 were up
        30.7% to $2.85 per share, based on 52.4 million diluted shares, versus
        $2.18 per share for the first six months of 2012, based on 51.2 million
        diluted shares.  Excluding the favorable impact of non-recurring items
        in both years, adjusted earnings per diluted share in the first six
        months of 2013 were $2.36, compared to $2.15 in the corresponding prior
        year period.
    --  Free cash flow for the six months of 2013 was $108.0 million, or 72% of
        net income, compared to $102.9 million in the comparable prior year
        period.  Excluding the favorable impact of non-recurring items, free
        cash flow was 87% of adjusted net income for the first six months of
        2013.

Mr. Engel continued, "As consolidation and outsourcing continues in our industry, customers are increasingly looking for a one-stop-shop to manage their supply chain needs. Our One WESCO value proposition provides customers with the comprehensive product and service solutions they need to meet their MRO, OEM and Capital Project management requirements. As a result of the investments we are making in our people, our processes, and our business, we are well positioned for continued value creation."

Webcast and Teleconference Access
WESCO will conduct a webcast and teleconference to discuss the second quarter earnings as described in this News Release on Thursday, July 25, 2013, at 11:00 a.m. E.D.T. The call will be broadcast live over the Internet and can be accessed from the Company's website at http://www.wesco.com. The 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 9,000 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 nine 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, 2012, 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 Months             Three Months

                                                                                                                        Ended                    Ended

                                                                                                                      June 30,                  June 30,
                                                                                                                            2013                            2012
                                                                                                                            ----                            ----

    Net sales                                                                                                                    $1,894.0                        $1,672.7

    Cost of goods sold (excluding                                                                                        1,501.4          79.3%          1,337.1           79.9%

    depreciation and amortization below)

    Selling, general and administrative expenses                                                                           265.5          14.0%            231.2           13.8%

    Depreciation and amortization                                                                                           17.2                            8.4
                                                                                                                            ----                            ---

    Income from operations                                                                                                 109.9           5.8%             96.0            5.7%

    Interest expense, net                                                                                                   21.8                           11.5
                                                                                                                            ----                           ----

    Income before income taxes                                                                                              88.1           4.7%             84.5            5.1%

    Provision for income taxes                                                                                              22.7                           25.6
                                                                                                                            ----                           ----

        Net income                                                                                                          65.4           3.5%             58.9            3.5%

    Less: Net income attributable to noncontrolling interest                                                                 0.1                             -
                                                                                                                             ---                           ---

    Net income attributable to WESCO International, Inc.                                                                            $65.3  3.4%                      $58.9  3.5%
                                                                                                                                    =====                            =====


    Earnings per diluted common share                                                                                               $1.25                           $1.15

    Weighted average common shares outstanding and common

    share equivalents used in computing earnings per diluted

    share (in millions)                                                                                                     52.3                           51.1



                                                                            WESCO INTERNATIONAL, INC.


                                                                   CONDENSED CONSOLIDATED STATEMENT OF INCOME

                                                             (dollar amounts in millions, except per share amounts)

                                                                                   (Unaudited)


                                                                                                                       Six             Six
                                                                                                                     Months          Months
                                                                                                                     Ended           Ended

                                                                                                                      June            June
                                                                                                                       30,             30,
                                                                                                                       2013            2012
                                                                                                                       ----            ----

    Net sales                                                                                                               $3,702.0                 $3,278.7

    Cost of goods sold (excluding                                                                                   2,928.4            79.1% 2,623.3           80.0%

    depreciation and amortization below)

    Selling, general and administrative expenses                                                                      493.0            13.3%   459.3           14.0%

    Depreciation and amortization                                                                                      33.9                    16.5
                                                                                                                       ----                    ----

    Income from operations                                                                                            246.7             6.7%   179.6            5.5%

    Interest expense, net                                                                                              43.7                    20.4
                                                                                                                       ----                    ----

    Income before income taxes                                                                                        203.0             5.5%   159.2            4.9%

    Provision for income taxes                                                                                         53.6                    47.3
                                                                                                                       ----                    ----

        Net income                                                                                                    149.4             4.0%   111.9            3.4%

    Less: Net income attributable to noncontrolling interest                                                            0.1                      -
                                                                                                                        ---                    ---

    Net income attributable to WESCO International, Inc.                                                                      $149.3    4.0%            $111.9  3.4%
                                                                                                                              ======                    ======


    Earnings per diluted common share                                                                                          $2.85                    $2.18

    Weighted average common shares outstanding and common

    share equivalents used in computing earnings per diluted

    share (in millions)                                                                                                52.4                    51.2



                            WESCO INTERNATIONAL, INC.


                       CONDENSED CONSOLIDATED BALANCE SHEET

                           (dollar amounts in millions)

                                   (Unaudited)


                                              June
                                               30,            December 31,
                                               2013                 2012
                                               ----                 ----

                       Assets

    Current Assets

    Cash and cash
     equivalents                                       $104.5                 $86.1

    Trade accounts
     receivable, net                        1,101.8              1,036.2

    Inventories, net                          808.7                794.0

    Current deferred
     income taxes                              30.6                 42.1

    Other current assets                      149.1                143.4
                                              -----                -----

    Total current assets                    2,194.7              2,101.8

    Other assets                            2,441.0              2,527.8
                                                                 -------

    Total assets                                     $4,635.7              $4,629.6
                                                       ======              ========



            Liabilities and Stockholders'
                        Equity

    Current Liabilities

    Accounts payable                                   $754.1                $706.6

    Current debt and
     short-term
     borrowings                                43.5                 39.8

    Other current
     liabilities                              243.5                261.6
                                              -----                -----

    Total current
     liabilities                            1,041.1              1,008.0


    Long-term debt                          1,572.4              1,695.4

    Other noncurrent
     liabilities                              379.6                372.5
                                              -----                -----

    Total liabilities                       2,993.1              3,075.9


    Stockholders' Equity

    Total stockholders'
     equity                                 1,642.6              1,553.7
                                            -------              -------

    Total liabilities and
     stockholders' equity                            $4,635.7              $4,629.6
                                                       ======              ========



                        WESCO INTERNATIONAL, INC.


              CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

                       (dollar amounts in millions)

                               (Unaudited)


                                           Six              Six
                                         Months           Months

                                         Ended            Ended

                                          June             June
                                           30,                30,
                                           2013               2012
                                           ----               ----

    Operating Activities:

    Net income                                   $149.4             $111.9

    Add back (deduct):

    Depreciation and
     amortization                          33.9               16.5

    Deferred income taxes                  26.8               14.0

    Change in Trade and other
     receivables, net                   (105.0)             (59.1)

    Change in Inventories, net            (27.7)            (17.4)

    Change in Accounts Payable             53.3               61.2

    Other                                 (10.9)            (11.9)
                                          -----              -----

    Net cash provided by
     operating activities                 119.8              115.2


    Investing Activities:

    Capital expenditures                  (11.8)            (12.3)

    Acquisition payments                      -             (22.0)

    Other                                   9.7                 -
                                            ---               ---

    Net cash used by investing
     activities                            (2.1)            (34.3)


    Financing Activities:

        Debt proceeds (repayments)      (105.0)             (67.6)

        Equity activity, net               (1.0)             (1.4)

        Other                               8.1              (3.7)
                                            ---               ----

            Net cash used by financing
             activities                   (97.9)            (72.7)


    Effect of exchange rate
     changes on cash and cash
     equivalents                           (1.4)               0.1
                                           ----                ---


    Net change in cash and cash
     equivalents                           18.4                8.3

    Cash and cash equivalents
     at the beginning of the
     period                                86.1               63.9

    Cash and cash equivalents
     at the end of the period                    $104.5              $72.2
                                                 ======              =====


    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

                                                                    (Unaudited)


                                                                                                            Twelve
                                                                                                            Months            Twelve Months

                                                                                                            Ended               Ended

    Financial Leverage:                                                                                      June
                                                                                                              30,             December 31,
                                                                                                              2013                  2012
                                                                                                              ----                  ----

    (dollar amounts in thousands)

    Income from operations                                                                                            $400.1                  $332.9

        Add: ArcelorMittal litigation charge                                                                     -                  36.1

    Depreciation and amortization                                                                             54.9                  37.6
                                                                                                              ----                  ----

    Adjusted EBITDA                                                                                                   $455.0                  $406.6
                                                                                                                      ======                  ======


                                                                                                             June
                                                                                                              30,             December 31,
                                                                                                              2013                  2012
                                                                                                              ----                  ----

    Current debt                                                                                                       $43.5                   $39.8

    Long-term debt                                                                                         1,572.4               1,695.4

    Debt discount related to convertible debentures (1)                                                      181.3                 183.6

    Total debt including debt discount                                                                              $1,797.2                $1,918.8
                                                                                                                      ======                ========


    Financial leverage ratio                                                                                   3.9                   4.7


    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 Adjusted EBITDA. Adjusted EBITDA is defined as the trailing twelve months earnings
     before interest, taxes, depreciation and amortization, excluding the ArcelorMittal litigation charge.


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


                                                                         Three Months              Three Months               Six Months            Six Months

                                                                             Ended                     Ended                     Ended                 Ended

    Free Cash Flow:                                                        June 30,                   June 30,                 June 30,              June 30,
                                                                                 2013                       2012                    2013                  2012
                                                                                 ----                       ----                    ----                  ----

    (dollar amounts in millions)

    Cash flow provided by operations                                                        $39.4                      $56.9                $119.8                $115.2

    Less: Capital expenditures                                                   (5.8)                      (7.8)                 (11.8)                (12.3)
                                                                                 ----                       ----                   -----                 -----

        Free cash flow                                                                      $33.6                      $49.1                $108.0                $102.9
                                                                                            =====                      =====                ======                ======


    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.



                                                                      WESCO INTERNATIONAL, INC.


                                                            RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

                                                                             (Unaudited)


                                                                                                                                    Three                  Three
                                                                                                                                    Months                 Months

                                                                                                                                    Ended                  Ended

    Gross Profit:                                                                                                                 June 30,               June 30,
                                                                                                                                           2013                   2012
                                                                                                                                           ----                   ----

    (dollar amounts in millions)

    Net Sales                                                                                                                          $1,894.0               $1,672.7

    Cost of goods sold (excluding depreciation and amortization)                                                              1,501.4                  1,337.1
                                                                                                                              -------                  -------

    Gross profit                                                                                                                         $392.6                 $335.6
                                                                                                                                         ======                 ======

    Gross margin                                                                                                                 20.7%                  20.1%



                                                                                                                                     Six                    Six
                                                                                                                                   Months                 Months

                                                                                                                                    Ended                  Ended

    Gross Profit:                                                                                                                 June 30,               June 30,
                                                                                                                                           2013                   2012
                                                                                                                                           ----                   ----

    (dollar amounts in millions)

    Net Sales                                                                                                                          $3,702.0               $3,278.7

    Cost of goods sold (excluding depreciation and amortization)                                                              2,928.4                  2,623.3
                                                                                                                              -------                  -------

    Gross profit                                                                                                                         $773.6                 $655.4
                                                                                                                                         ======                 ======

    Gross margin                                                                                                                 20.9%                  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                   Six
                                                                                                                                   Months                 Months

                                                                                                                                    Ended                  Ended

    Normalized Organic Sales Growth:                                                                                              June 30,               June 30,
                                                                                                                                           2013                   2013
                                                                                                                                           ----                   ----


    Change in net sales                                                                                                          13.2%                  12.9%

    Impact from acquisitions                                                                                                     14.6%                  15.3%

    Impact from foreign exchange rates                                                                                          (0.2)%                 (0.1)%

    Impact from number of workdays                                                                                                  -  %               (0.8)%
                                                                                                                                  ---  ---

    Normalized organic sales growth                                                                                             (1.2)%                 (1.5)%
                                                                                                                                =====                  =====


    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.



                                                                   Three Months       Three Months        Six Months        Six Months

                                                                       Ended              Ended              Ended             Ended

    Adjusted Earnings per Share:                                     June 30,            June 30,          June 30,          June 30,
                                                                           2013                2012             2013              2012
                                                                           ----                ----             ----              ----

    (amounts in millions, except EPS)

    Income before income taxes                                                  $88.1               $84.5            $203.0            $159.2

    Less: Favorable IRS appeals settlement                                    -                  -               -              (3.2)

    Less: Recognition of insurance coverage for ArcelorMittal                 -                  -           (36.1)                -

    litigation charge


    Adjusted income before income taxes                                    88.1                84.5            166.9             156.0

    Provision for income taxes                                             22.7                25.6             43.0              46.1
                                                                           ----                ----             ----              ----

    Adjusted net income                                                    65.4                58.9            123.9             109.9

    Less: Net income attributable to noncontrolling interest                0.1                  -              0.1                -
                                                                            ---                ---              ---              ---

    Adjusted net income attributable to WESCO International, Inc.               $65.3               $58.9            $123.8            $109.9
                                                                                =====               =====            ======            ======


    Adjusted earnings per diluted common share                                  $1.25               $1.15             $2.36             $2.15
                                                                                =====               =====             =====             =====


    Weighted average common shares outstanding and common                  52.3                51.1             52.4              51.2

    share equivalents used in computing earnings per diluted share




                                         Year
                                         Ended

    Adjusted income from operations:   December
                                          31,
                                           2012
                                           ----

    (amounts in millions, except
     EPS)

    Income from operations                         $332.9

    Add: ArcelorMittal litigation
     charge                                36.1

    Adjusted income from operations                $369.0
                                                   ======


    Adjusted net income attributable
     to WESCO International, Inc.:

    Net income attributable to WESCO
     International, Inc.                           $201.8

    Add: ArcelorMittal litigation
     charge, net of tax                    22.0
                                           ----

    Adjusted net income attributable
     to WESCO International, Inc.                  $223.8
                                                   ======


    Adjusted Diluted EPS:

    Diluted share count                    51.1

    Adjusted Diluted EPS                            $4.38



    Note: Adjusted earnings per
     share is provided by the
     Company as an additional
     financial measure.
     Adjusted earnings per
     share is calculated by
     eliminating the impact of
     the reversal of
     ArcelorMittal litigation
     charge and the favorable
     IRS appeals settlement
     from 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.