PITTSBURGH, Oct. 20, 2011 /PRNewswire/ -- 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 2011 third quarter financial results.

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

The following results are for the three months ended September 30, 2011 compared to the three months ended September 30, 2010:


    --  Consolidated net sales were $1,580.4 million for the third quarter of
        2011, compared to $1,324.6 million for the third quarter of 2010.  The
        19.3% increase in sales includes positive impacts of approximately 6.9%
        from acquisitions and 1.1% from foreign exchange rates, resulting in
        organic sales growth of approximately 11.3%.  Sequential sales increased
        3.7%, and includes a positive impact of approximately 0.1% from
        acquisitions and a negative impact of approximately 0.1% from foreign
        exchange.
    --  Gross profit of $315.7 million, or 20.0% of sales, for the third quarter
        of 2011 was up 50 basis points, compared to $257.8 million, or 19.5% of
        sales, for the third quarter of 2010.
    --  Selling, general & administrative (SG&A) expenses of $216.2 million, or
        13.7% of sales, for the third quarter of 2011 improved 70 basis points,
        compared to $190.6 million, or 14.4% of sales, for the third quarter of
        2010.
    --  Operating profit was $91.8 million for the current quarter, up 49.8%
        from $61.2 million for the comparable 2010 quarter.  Operating profit as
        a percentage of sales was 5.8% in 2011, up 120 basis points from 4.6% in
        2010.
    --  Total interest expense for the third quarter of 2011 was $15.1 million,
        compared to $13.7 million for the third quarter of 2010.  Interest
        expense for the current quarter included the write-off of $1.8 million
        of deferred financing fees as a result of a new revolving credit
        agreement.  Non-cash interest expense, which includes convertible debt
        interest, interest related to uncertain tax positions, and the
        amortization of deferred financing fees, for the third quarter of 2011
        and 2010 was $3.5 million and $2.1 million, respectively.
    --  The effective tax rate for the current quarter was 29.7%, compared to
        29.1% for the prior year quarter.
    --  Net income of $53.9 million for the current quarter was up 60.1% from
        $33.7 million for the prior year quarter.
    --  Earnings per diluted share for the third quarter of 2011 was $1.11 per
        share, based on 48.5 million diluted shares, and was up 50.0% from $0.74
        per share in the third quarter of 2010, based on 45.5 million diluted
        shares.  Earnings per diluted share for the third quarter, adjusted for
        the $1.8 million write-off of deferred financing fees as a result of a
        new revolving credit agreement, would have been $1.13 per diluted share.
        The acquisitions of TVC Communications in December 2010 and RECO in
        March 2011 had a favorable impact of approximately $0.10 per diluted
        share on third quarter results.
    --  Free cash flow for the third quarter of 2011 was $41.2 million, compared
        to $2.6 million for the third quarter of 2010.

Mr. John J. Engel, WESCO's Chairman and Chief Executive Officer, stated, "Our third quarter results reflect our effective execution and consistent ability to deliver strong earnings growth in a challenging economic environment. We have now posted five consecutive quarters of double digit organic sales and backlog growth. Operating margins improved 120 basis points to 5.8% in the third quarter, driven by a balanced contribution of gross margin expansion and operating cost leverage. We also completed the acquisition of Brews Supply on October 3, our fourth acquisition since June of last year. These acquisitions are exceeding our expectations and have expanded our portfolio of value creation solutions and strengthened our business. Our investments are paying off with our growth strategy driving improvements in our market position and increased profitability of our business."

The following results are for the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010:


    --  Consolidated net sales were $4,536.2 million for the first nine months
        of 2011, compared to $3,732.3 million for the first nine months of 2010.
        The 21.5% increase in sales includes positive impacts of approximately
        7.1% from acquisitions and 1.1% from foreign exchange rates, resulting
        in organic sales growth of   approximately 13.3%.
    --  Gross profit of $908.5 million, or 20.0% of sales, for the first nine
        months of 2011 was up 50 basis points, compared to $728.2 million, or
        19.5% of sales, for the first nine months of 2010.
    --  SG&A expenses of $644.2 million, or 14.2% of sales, for the first nine
        months of 2011 improved 80 basis points, compared to $559.6 million, or
        15.0% of sales, for the first nine months of 2010.
    --  Operating profit was $241.4 million for the first nine months of 2011,
        up 60.1% from $150.9 million for the comparable 2010 period.  Operating
        profit as a percentage of sales was 5.3% in 2011, up 130 basis points
        from 4.0% in 2010.
    --  Total interest expense for the first nine months of 2011 was $41.6
        million, compared to $41.7 million for the first nine months of 2010. 
        Interest expense for the nine months ended September 30, 2011 included
        the write-off of $1.8 million of deferred financing fees as a result of
        a new revolving credit agreement.  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 nine months of 2011 and 2010 was $7.2 million and $6.3 million,
        respectively.
    --  The effective nine-month tax rate was 29.2% for 2011 compared to 28.9%
        for 2010.
    --  Net income of $141.4 million for the first nine months of 2011 was up
        75.3% from $80.7 million for the first nine months of 2010.
    --  Earnings per diluted share for the first nine months of 2011 was up
        58.7% to $2.84 per share, based on 49.8 million diluted shares, versus
        $1.79 per share for the first nine months of 2010, based on 45.2 million
        diluted shares.  Earnings per diluted share for the nine months ending
        September 30, 2011, adjusted for the $1.8 million write-off of deferred
        financing fees as a result of a new revolving credit agreement, would
        have been $2.86 per diluted share.  The acquisitions of Potelcom in June
        2010, TVC Communications in December 2010, and RECO in March 2011 had a
        favorable impact of approximately $0.29 per diluted share on
        year-to-date results.
    --  Free cash flow for the first nine months of 2011 was $47.8 million,
        compared to $65.4 million in the comparable prior year period.

Mr. Engel, continued, "The strength, diversity, and operating leverage of our business positions us well in today's economic environment. The expansion of our business model beyond the scope of traditional distribution is creating significant value for our customers and suppliers. We enter the fourth quarter of 2011 with a record pipeline of opportunities, and continue to accelerate our One WESCO approach of partnering with suppliers in providing global supply chain solutions for our customers."

Teleconference Access

WESCO will conduct a teleconference to discuss the third quarter earnings as described in this News Release on Thursday, October 20, 2011, 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. 2010 annual sales were approximately $5.1 billion. The Company employs approximately 7,000 people, maintains relationships with over 17,000 suppliers, and serves over 100,000 customers worldwide. Customers include commercial and industrial businesses, contractors, government agencies, institutions, telecommunications providers and utilities. WESCO operates seven 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, 2010, 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
                                                  September                   September
                                                     30,                         30,
                                                       2011                        2010

    Net sales                                      $1,580.4                    $1,324.6
    Cost of goods sold
     (excluding                                     1,264.7    80.0 %           1,066.8 80.5 %
      depreciation and
       amortization
       below)
    Selling, general
     and
     administrative
     expenses                                         216.2    13.7 %             190.6 14.4 %
    Depreciation and
     amortization                                       7.7                         6.0
                                                        ---                         ---
      Income from
       operations                                      91.8     5.8 %              61.2  4.6 %
    Interest expense,
     net                                               15.1                        13.7
    Other income                                          -                           -
                                                        ---                         ---
      Income before
       income taxes                                    76.7     4.9 %              47.5  3.6 %
    Provision for
     income taxes                                      22.8                        13.8
                                                       ----                        ----
      Net income                                      $53.9     3.4 %             $33.7  2.5 %
                                                      =====                       =====

    Earnings per
     diluted common
     share                                            $1.11                       $0.74
    Weighted average
     common shares
     outstanding and
     common
    share equivalents
     used in computing
     earnings per
     diluted
    share (in
     millions)                                         48.5                        45.5




                                      WESCO INTERNATIONAL, INC.

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

                                                     Nine                        Nine
                                                    Months                      Months
                                                    Ended                       Ended
                                                  September                   September
                                                     30,                         30,
                                                       2011                        2010

    Net sales                                      $4,536.2                    $3,732.3
    Cost of goods sold
     (excluding                                     3,627.7    80.0%            3,004.1  80.5%
      depreciation and
       amortization
       below)
    Selling, general
     and
     administrative
     expenses                                         644.2    14.2%              559.6  15.0%
    Depreciation and
     amortization                                      22.9                        17.7
                                                       ----                        ----
      Income from
       operations                                     241.4     5.3%              150.9   4.0%
    Interest expense,
     net                                               41.6                        41.7
    Other income                                          -                        (4.3)
                                                        ---                        ----
      Income before
       income taxes                                   199.8     4.4%              113.5   3.0%
    Provision for
     income taxes                                      58.4                        32.8
                                                       ----                        ----
      Net income                                     $141.4     3.1%              $80.7   2.2%
                                                     ======                       =====

    Earnings per
     diluted common
     share                                            $2.84                       $1.79
    Weighted average
     common shares
     outstanding and
     common
    share equivalents
     used in computing
     earnings per
     diluted
    share (in
     millions)                                         49.8                        45.2




                                       WESCO INTERNATIONAL, INC.

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

                                                          September 30,  December 31,
                                                                    2011          2010
      Assets
    Current Assets
    Cash and cash equivalents                                      $94.0         $53.6
    Trade accounts receivable, net                                 950.4         792.7
    Inventories, net                                               631.4         588.8
    Other current assets                                            86.0          78.6
                                                                    ----          ----
      Total current assets                                       1,761.8       1,513.7
    Other assets                                                 1,305.6       1,313.1
                                                                 -------       -------
      Total assets                                              $3,067.4      $2,826.8
                                                                ========      ========


      Liabilities and Stockholders' Equity
    Current Liabilities
    Accounts payable                                              $646.6        $537.5
    Current debt                                                     5.2           4.0
    Other current liabilities                                      170.9         166.7
                                                                   -----         -----
      Total current liabilities                                    822.7         708.2

    Long-term debt                                                 725.7         725.9
    Other noncurrent liabilities                                   235.5         244.1
                                                                   -----         -----
      Total liabilities                                          1,783.9       1,678.2

    Stockholders' Equity
      Total stockholders' equity                                 1,283.5       1,148.6
                                                                 -------       -------
      Total liabilities and stockholders'
       equity                                                   $3,067.4      $2,826.8
                                                                ========      ========




                                      WESCO INTERNATIONAL, INC.

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

                                                    Nine Months Ended     Nine Months Ended
                                                       September 30,         September 30,
                                                           2011                  2010
    Operating Activities:
      Net income                                               $141.4                 $80.7
        Add back (deduct):
        Depreciation and
         amortization                                            22.9                  17.7
        Deferred income taxes                                     7.7                  (4.6)
        Change in Trade and
         other receivables, net                                (154.7)               (149.6)
        Change in Inventories,
         net                                                    (44.2)                (40.9)
        Change in Accounts
         Payable                                                110.6                 118.4
        Other                                                   (11.9)                 53.8
                                                                -----                  ----
          Net cash provided by
           operating activities                                  71.8                  75.5

    Investing Activities:
      Capital expenditures                                      (24.0)                (10.1)
      Acquisition payments                                       (8.2)                (14.3)
      Proceeds from sale of
       subsidiary                                                   -                  40.0
      Repayment of note
       receivable                                                   -                  15.0
      Other                                                       0.1                   4.9
                                                                  ---                   ---
          Net cash (used)
           provided by investing
           activities                                           (32.1)                 35.5

    Financing Activities:
      Debt borrowing
       (repayments), net                                         (1.0)               (115.5)
      Equity activity, net                                       (2.6)                  1.2
      Other                                                       8.8                  (8.6)
                                                                  ---                  ----
          Net cash provided
           (used) by financing
           activities                                             5.2                (122.9)

    Effect of exchange rate
     changes on cash and
     cash equivalents                                            (4.5)                  2.7
                                                                 ----                   ---

    Net change in cash and
     cash equivalents                                            40.4                  (9.2)
    Cash and cash
     equivalents at the
     beginning of the
     period                                                      53.6                 112.3
                                                                 ----                 -----
    Cash and cash
     equivalents at the end
     of the period                                              $94.0                $103.1
                                                                =====                ======



                                      WESCO INTERNATIONAL, INC.

                            RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                    (dollar amounts in thousands)
                                             (Unaudited)

                                                       Twelve Months       Twelve Months
                                                           Ended               Ended
                                                       September 30,        December 31,
                                                                  2011                2010
    Financial Leverage:
      Income from
       operations                                           $301,534            $210,919
      Depreciation and
       amortization                                           29,112              23,935
        EBITDA(1)                                           $330,646            $234,854
                                                            ========            ========

                                                     September 30,        December 31,
                                                                2011                2010
      Current debt                                            $5,206              $3,988
      Long-term debt                                         725,669             725,893
      Debt discount
       related to
       convertible
      debentures(2)                                          176,559             178,427
        Total debt
         including debt
         discount                                           $907,434            $908,308
                                                            ========            ========

      Financial leverage
       ratio                                                     2.7                 3.9

    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     Nine Months        Nine Months
                                       Ended               Ended            Ended              Ended
                                     September           September        September          September
                                        30,                 30,              30,                30,
      Free
      Cash
      Flow:                                2011                2010             2011               2010
      (dollar
      amounts
      in
      millions)
       Cash
       flow
       provided
       by
       operations                       $49.3            $6.7        $71.8           $75.5

       Less:
       Capital
       expenditures                        (8.1)               (4.1)           (24.0)             (10.1)
         Free
         Cash
         flow                             $41.2                $2.6            $47.8              $65.4
                                          =====                ====            =====              =====

     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)EBITDA does not include proforma adjustments for
     recent acquisitions.
    (2)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 (CONTINUED)
                                    (dollar amounts in millions)
                                             (Unaudited)

                                                       Three Months             Three Months
                                                          Ended                    Ended
    Gross Profit:                                     September 30,            September 30,
                                                                 2011                     2010
      Net Sales                                              $1,580.4                 $1,324.6
      Cost of goods sold
       (excluding
       depreciation
      and amortization)                                       1,264.7                  1,066.8
        Gross profit                                           $315.7                   $257.8
                                                               ======                   ======
        Gross margin                                             20.0%                    19.5%

                                                       Nine Months              Nine Months
                                                          Ended                    Ended
    Gross Profit:                                     September 30,            September 30,
                                                                 2011                     2010
      Net Sales                                              $4,536.2                 $3,732.3
      Cost of goods sold
       (excluding
       depreciation
      and amortization)                                       3,627.7                  3,004.1
        Gross profit                                           $908.5                   $728.2
                                                               ======                   ======
        Gross margin                                             20.0%                    19.5%

    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.

SOURCE WESCO International, Inc.