Wesco International Reports Third Quarter 2024 Results
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Third quarter reported net sales down 2.7% YOY due primarily to the
divestitureWesco Integrated Supply- Organic sales down 0.6% YOY and up 0.1% sequentially
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Third quarter operating profit of
$336 million ; operating margin of 6.1%- Gross margin of 22.1%, up 50 basis points YOY and up 20 basis points sequentially
- Adjusted EBITDA margin of 7.3%, down 80 basis points YOY and flat sequentially
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Operating cash flow of
$302 million in the third quarter and$825 million for the first nine months of 2024, up from$424 million in the first nine months of 2023 - Reaffirming full-year outlook
"We had a strong close to our third quarter, with sales slightly up compared to the second quarter driven by accelerating momentum in our Communications and Security Solutions segment, including double-digit sales growth in our global data center business. The continued weakness in Utility and Broadband Solutions offset what would have been a return to organic growth in the quarter. Adjusted EBITDA margin was flat compared to the second quarter and better than the expectations reviewed during our Investor Day last month, primarily driven by a sequential increase in gross margin," said
The following are results for the three months ended
- Net sales were
$5.5 billion for the third quarter of 2024 compared to$5.6 billion for the third quarter of 2023, a decrease of 2.7%. On an organic basis, which removes the impact of theWesco Integrated Supply ("WIS") divestiture, differences in foreign exchange rates, and the impact from the number of workdays, sales for the third quarter of 2024 declined by 0.6%. The decrease in organic sales reflects volume declines in the EES andUBS segments, partially offset by a volume increase in the CSS segment, and price inflation in the EES andUBS segments. Sequentially, net sales increased 0.2% and organic sales grew by 0.1% as fluctuations in foreign exchange rates positively impacted reported net sales by 0.1%. - Cost of goods sold for the third quarter of 2024 was
$4.3 billion compared to$4.4 billion for the third quarter of 2023, and gross profit was$1.2 billion for the third quarter of 2024 and 2023. As a percentage of net sales, gross profit was 22.1% and 21.6% for the third quarter of 2024 and 2023, respectively. The increase in gross profit as a percentage of net sales for the third quarter of 2024 primarily reflects the impact of the divestiture of the WIS business. Sequentially, gross profit as a percentage of net sales increased 20 basis points from 21.9% in the second quarter of 2024. - Selling, general and administrative ("SG&A") expenses were
$831.1 million , or 15.1% of net sales, for the third quarter of 2024, compared to$796.4 million , or 14.1% of net sales, for the third quarter of 2023. SG&A expenses for the third quarter of 2024 include$5.4 million of digital transformation costs and$0.5 million of restructuring costs. SG&A expenses for the third quarter of 2023 include$12.9 million of digital transformation costs,$5.6 million of restructuring costs, and$2.1 million of merger-related and integration costs. Adjusted for these costs, SG&A expenses were$825.2 million , or 15.0% of net sales, for the third quarter of 2024 and$775.8 million , or 13.7% of net sales, for the third quarter of 2023. Adjusted SG&A expenses for the third quarter of 2024 reflect higher payroll and payroll-related expenses, costs to operate our facilities and transportation costs, partially offset by the impact of the divestiture of the WIS business. - Depreciation and amortization for the third quarter of 2024 was
$46.0 million compared to$45.1 million for the third quarter of 2023, an increase of$0.9 million . - Operating profit was
$335.6 million for the third quarter of 2024 compared to$380.5 million for the third quarter of 2023, a decrease of$44.9 million , or 11.8%. Operating profit as a percentage of net sales was 6.1% for the current quarter compared to 6.7% for the third quarter of the prior year. Adjusted for digital transformation costs and restructuring costs, operating profit was$341.5 million , or 6.2% of net sales, for the third quarter of 2024. Adjusted for digital transformation costs, restructuring costs, merger-related and integration costs, and accelerated trademark amortization expense, operating profit was$401.5 million , or 7.1% of net sales, for the third quarter of 2023. - Net interest expense for the third quarter of 2024 was
$86.5 million compared to$98.5 million for the third quarter of 2023. The decrease is primarily attributable to lower borrowings and a decrease in variable interest rates. - Other non-operating income for the third quarter of 2024 was
$24.9 million compared to expense of$3.7 million for the third quarter of 2023. During the third quarter, we finalized the divestiture of our WIS business, and recognized an additional gain from the sale of$19.3 million . We also recognized income of$2.2 million as a result of the finalization of the liabilities transferred related to the settlement of theAnixter Inc. Pension Plan. Adjusted for the gain on the divestiture of our WIS business as well as the reduction to pension settlement costs, other non-operating income was$3.4 million for the third quarter of 2024. - The effective tax rate for the third quarter of 2024 was 25.3% compared to 15.9% for the third quarter of 2023. The higher effective tax rate for the third quarter of 2024 is due to lower discrete income tax benefits resulting from the exercise and vesting of stock-based awards as compared to the prior year. The corresponding quarter of the prior year also reflected discrete income tax benefits relating to the reversal of certain valuation allowances and return-to-provision adjustments.
- Net income attributable to common stockholders was
$189.9 million for the third quarter of 2024 compared to$219.0 million for the third quarter of 2023. Adjusted for digital transformation costs, restructuring costs, the gain recognized on the divestiture of our WIS business, the reduction to pension settlement cost, and the related income tax effects, net income attributable to common stockholders was$178.1 million for the third quarter of 2024. Adjusted for digital transformation costs, restructuring costs, merger-related and integration costs, accelerated trademark amortization expense, and the related income tax effects, net income attributable to common stockholders was$234.4 million for the third quarter of 2023. - Earnings per diluted share for the third quarter of 2024 was
$3.81 , based on 49.8 million diluted shares, compared to$4.20 for the third quarter of 2023, based on 52.2 million diluted shares. Adjusted for digital transformation costs, restructuring costs, the gain recognized on the divestiture of our WIS business, the reduction to pension settlement cost, and the related income tax effects, earnings per diluted share for the third quarter of 2024 was$3.58 . Adjusted for digital transformation costs, restructuring costs, merger-related and integration costs, accelerated trademark amortization expense, and the related income tax effects, earnings per diluted share for the third quarter of 2023 was$4.49 . Adjusted earnings per diluted share decreased 20.3% year-over-year. - Operating cash flow for the third quarter of 2024 was an inflow of
$302.1 million compared to$361.7 million for the third quarter of 2023. Free cash flow for the third quarter of 2024 was$279.5 million , or 144.9% of adjusted net income. The net cash inflow in the third quarter of 2024 was primarily driven by net income of$204.7 million , as well as an improvement in net working capital. Fluctuations in accounts payable resulted in a cash inflow of$136.1 million for the third quarter of 2024, primarily due to the timing of payments to suppliers as well as inventory purchases. A decrease in trade accounts receivable of$40.9 million primarily due to the timing of receipts from customers also contributed to the cash inflow. An increase in inventories resulted in a use of cash of$103.9 million .
The following are results for the nine months ended
- Net sales were
$16.3 billion for the first nine months of 2024 compared to$16.9 billion for the first nine months of 2023, a decrease of 3.5%. On an organic basis, which removes the impact of the WIS divestiture, differences in foreign exchange rates, and the impact from the number of workdays, sales for the first nine months of 2024 declined by 1.5%. The decrease in organic sales reflects volume declines in the EES andUBS segments, partially offset by a volume increase in the CSS segment, and price inflation in the EES andUBS segments. - Cost of goods sold for the first nine months of 2024 was
$12.8 billion compared to$13.2 billion for the first nine months of 2023, and gross profit was$3.5 billion and$3.7 billion , respectively. As a percentage of net sales, gross profit was 21.7% for the first nine months of 2024 and 2023. - SG&A expenses were
$2,488.9 million , or 15.3% of net sales, for the first nine months of 2024, compared to$2,445.8 million , or 14.5% of net sales, for the first nine months of 2023. SG&A expenses for the first nine months of 2024 include a$17.8 million loss on abandonment of assets,$17.5 million of digital transformation costs,$9.5 million of restructuring costs, and$4.8 million of excise taxes on excess pension plan assets. SG&A expenses for the first nine months of 2023 include$28.5 million of digital transformation costs,$16.9 million of merger-related and integration costs, and$15.4 million of restructuring costs. Adjusted for the loss on abandonment of assets, digital transformation costs, restructuring costs, and excise taxes on excess pension plan assets, SG&A expenses were$2,439.3 million , or 14.9% of net sales, for the first nine months of 2024. Adjusted for digital transformation costs, merger-related and integration costs, and restructuring costs, SG&A expenses were$2,385.0 million , or 14.1% of net sales for the first nine months of 2023. The increase in adjusted SG&A expenses for the first nine months of 2024 compared to the first nine months of 2023 reflects higher costs to operate our facilities, an increase in IT costs, and an increase in payroll and payroll-related costs. - Depreciation and amortization for the first nine months of 2024 was
$137.6 million compared to$136.4 million for the first nine months of 2023, an increase of$1.2 million . - Operating profit was
$922.1 million for the first nine months of 2024 compared to$1,090.7 million for the first nine months of 2023, a decrease of$168.6 million , or 15.5%. Operating profit as a percentage of net sales was 5.7% for the first nine months of 2024 compared to 6.4% for the first nine months of 2023. Adjusted for the loss on abandonment of assets, digital transformation costs, restructuring costs, and excise taxes on excess pension plan assets, operating profit was$971.7 million , or 6.0% of net sales, for the first nine months of 2024. Adjusted for digital transformation costs, merger-related and integration costs, restructuring costs, and accelerated trademark amortization expense, operating profit was$1,152.7 million , or 6.8% of net sales, for the first nine months of 2023. - Net interest expense for the first nine months of 2024 was
$279.8 million compared to$292.3 million for the first nine months of 2023. The decrease is primarily attributable to lower borrowings and a decrease in variable interest rates. - Other non-operating income for the first nine months of 2024 was
$99.3 million compared to expense of$14.6 million for the first nine months of 2023. In the first nine months of 2024, we completed the divestiture of our WIS business and recognized a gain from the sale of$122.2 million . Additionally, in the first nine months of 2024, we recognized a$3.8 million loss on termination of a business arrangement. Due to fluctuations in theU.S. dollar against certain foreign currencies, a net foreign currency exchange loss of$18.2 million was recognized for the first nine months of 2024 compared to a net loss of$14.6 million for the first nine months of 2023. Net costs of$3.2 million , comprising pension settlement cost, and net benefits of$0.9 million associated with the non-service cost components of net periodic pension (benefit) cost were recognized for the first nine months of 2024 and 2023, respectively. Adjusted for the gain on divestiture of our WIS business, the loss on termination of a business arrangement, and pension settlement cost described above, other non-operating expense was$15.8 million for the first nine months of 2024. - The effective tax rate for the first nine months of 2024 was 25.4% compared to 20.4% for the first nine months of 2023. The effective tax rate for the first nine months of 2024 was higher than the comparable prior year period due to lower discrete income tax benefits resulting from the exercise and vesting of stock-based awards as compared to the prior year period. The prior year period also reflected discrete income tax benefits relating to the reversal of certain valuation allowances and return-to-provision adjustments.
- Net income attributable to common stockholders was
$509.1 million for the first nine months of 2024 compared to$580.5 million for the first nine months of 2023. Adjusted for the loss on abandonment of assets, digital transformation costs, restructuring costs, excise taxes on excess pension plan assets, the gain recognized on the divestiture of the WIS business, the loss on termination of a business arrangement, pension settlement cost, and the related income tax effects, net income attributable to common stockholders was$461.0 million for the first nine months of 2024. Adjusted for digital transformation costs, merger-related and integration costs, restructuring costs, accelerated trademark amortization expense, and the related income tax effects, net income attributable to common stockholders for the first nine months of 2023 was$625.7 million . - Earnings per diluted share for the first nine months of 2024 was
$10.02 , based on 50.8 million diluted shares, compared to$11.08 for the first nine months of 2023, based on 52.4 million diluted shares. Adjusted for the loss on abandonment of assets, digital transformation costs, restructuring costs, excise taxes on excess pension plan assets, the gain recognized on the divestiture of our WIS business, the loss on termination of a business arrangement, pension settlement cost, and the related income tax effects, earnings per diluted share for the first nine months of 2024 was$9.07 . Adjusted for digital transformation costs, merger-related and integration costs, restructuring costs, accelerated trademark amortization expense, and the related income tax effects, earnings per diluted share for the first nine months of 2023 was$11.94 . Adjusted earnings per diluted share decreased 24.0% year-over-year. - Operating cash flow for the first nine months of 2024 was an inflow of
$824.6 million compared to$423.9 million for the first nine months of 2023. Free cash flow for the first nine months of 2024 was$776.8 million , or 153.7% of adjusted net income. The net cash inflow in the first nine months of 2024 was primarily driven by net income of$553.5 million and non-cash adjustments to net income totaling$66.3 million . Operating cash flow was positively impacted by net changes in assets and liabilities of$204.8 million , which primarily comprised an increase in accounts payable of$478.0 million , primarily due to the timing of payments to suppliers, as well as inventory purchases, partially offset by an increase in trade accounts receivable of$217.9 million due to the timing of receipts from customers and an increase in inventories of$85.0 million .
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Forward-Looking Statements
All statements made herein that are not historical facts should be considered as "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. These statements include, but are not limited to, statements regarding business strategy, growth strategy, competitive strengths, productivity and profitability enhancement, competition, new product and service introductions, and liquidity and capital resources. Such statements can generally be identified by the use of words such as "anticipate," "plan," "believe," "estimate," "intend," "expect," "project," and similar words, phrases or expressions or future or conditional verbs such as "could," "may," "should," "will," and "would," although not all forward-looking statements contain such words. These forward-looking statements are based on current expectations and beliefs of
Important factors that could cause actual results or events to differ materially from those presented or implied in the forward-looking statements include, among others, the failure to achieve the anticipated benefits of, and other risks associated with, acquisitions, joint ventures, divestitures and other corporate transactions; the inability to successfully integrate acquired businesses; the impact of increased interest rates or borrowing costs; fluctuations in currency exchange rates; failure to adequately protect
Contact Information |
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Investor Relations |
Corporate Communications |
Director, Investor Relations 484-885-5648 |
Vice President, Corporate Communications 717-579-6603 |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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(in millions, except per share amounts) |
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(Unaudited) |
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Three Months Ended |
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Net sales |
$ 5,489.4 |
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$ 5,644.4 |
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Cost of goods sold (excluding depreciation and amortization) |
4,276.7 |
77.9 % |
|
4,422.4 |
78.4 % |
Selling, general and administrative expenses |
831.1 |
15.1 % |
|
796.4 |
14.1 % |
Depreciation and amortization |
46.0 |
|
|
45.1 |
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Income from operations |
335.6 |
6.1 % |
|
380.5 |
6.7 % |
Interest expense, net |
86.5 |
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|
98.5 |
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Other (income) expense, net |
(24.9) |
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3.7 |
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Income before income taxes |
274.0 |
5.0 % |
|
278.3 |
4.9 % |
Provision for income taxes |
69.3 |
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|
44.3 |
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Net income |
204.7 |
3.7 % |
|
234.0 |
4.1 % |
Net income attributable to noncontrolling interests |
0.4 |
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0.6 |
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Net income attributable to |
204.3 |
3.7 % |
|
233.4 |
4.1 % |
Preferred stock dividends |
14.4 |
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|
14.4 |
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Net income attributable to common stockholders |
$ 189.9 |
3.5 % |
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$ 219.0 |
3.9 % |
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Earnings per diluted share attributable to common stockholders |
$ 3.81 |
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$ 4.20 |
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Weighted-average common shares outstanding and common |
49.8 |
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52.2 |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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(in millions, except per share amounts) |
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(Unaudited) |
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Nine Months Ended |
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Net sales |
$ 16,319.1 |
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|
$ 16,911.8 |
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Cost of goods sold (excluding depreciation and amortization) |
12,770.5 |
78.3 % |
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13,238.9 |
78.3 % |
Selling, general and administrative expenses |
2,488.9 |
15.3 % |
|
2,445.8 |
14.5 % |
Depreciation and amortization |
137.6 |
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|
136.4 |
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Income from operations |
922.1 |
5.7 % |
|
1,090.7 |
6.4 % |
Interest expense, net |
279.8 |
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|
292.3 |
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Other (income) expense, net |
(99.3) |
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|
14.6 |
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Income before income taxes |
741.6 |
4.5 % |
|
783.8 |
4.6 % |
Provision for income taxes |
188.1 |
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|
160.2 |
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Net income |
553.5 |
3.4 % |
|
623.6 |
3.7 % |
Net income attributable to noncontrolling interests |
1.3 |
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— |
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Net income attributable to |
552.2 |
3.4 % |
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623.6 |
3.7 % |
Preferred stock dividends |
43.1 |
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|
43.1 |
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Net income attributable to common stockholders |
$ 509.1 |
3.1 % |
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$ 580.5 |
3.4 % |
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Earnings per diluted share attributable to common stockholders |
$ 10.02 |
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$ 11.08 |
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Weighted-average common shares outstanding and common |
50.8 |
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52.4 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(dollar amounts in millions) |
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(Unaudited) |
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As of |
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Assets |
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Current Assets |
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Cash and cash equivalents |
$ 706.8 |
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$ 524.1 |
Trade accounts receivable, net |
3,629.1 |
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3,639.5 |
Inventories |
3,630.1 |
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3,572.1 |
Other current assets |
717.5 |
|
655.9 |
Total current assets |
8,683.5 |
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8,391.6 |
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5,028.9 |
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5,119.9 |
Other assets |
1,562.6 |
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1,549.4 |
Total assets |
$ 15,275.0 |
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$ 15,060.9 |
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Liabilities and Stockholders' Equity |
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Current Liabilities |
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Accounts payable |
$ 2,839.1 |
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$ 2,431.5 |
Short-term debt and current portion of long-term debt, net |
14.9 |
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8.6 |
Other current liabilities |
1,074.5 |
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948.3 |
Total current liabilities |
3,928.5 |
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3,388.4 |
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Long-term debt, net |
5,007.8 |
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5,313.1 |
Other noncurrent liabilities |
1,301.9 |
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1,327.5 |
Total liabilities |
10,238.2 |
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10,029.0 |
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Stockholders' Equity |
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Total stockholders' equity |
5,036.8 |
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5,031.9 |
Total liabilities and stockholders' equity |
$ 15,275.0 |
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$ 15,060.9 |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(dollar amounts in millions) |
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(Unaudited) |
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Nine Months Ended |
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Operating Activities: |
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Net income |
$ 553.5 |
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$ 623.6 |
Add back (deduct): |
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Depreciation and amortization |
137.6 |
|
136.4 |
Gain on divestiture |
(122.2) |
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— |
Loss on abandonment of assets |
17.8 |
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— |
Change in trade receivables, net |
(217.9) |
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(133.4) |
Change in inventories |
(85.0) |
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(62.7) |
Change in accounts payable |
478.0 |
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(86.5) |
Other, net |
62.8 |
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(53.5) |
Net cash provided by operating activities |
824.6 |
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423.9 |
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Investing Activities: |
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Capital expenditures |
(70.4) |
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(63.6) |
Acquisition payments |
(41.7) |
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— |
Proceeds from divestiture, net of cash transferred |
354.9 |
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— |
Other, net |
6.9 |
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2.4 |
Net cash provided by (used in) investing activities |
249.7 |
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(61.2) |
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Financing Activities: |
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Debt repayments, net(1) |
(318.2) |
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(41.0) |
Payments for taxes related to net-share settlement of equity awards |
(26.2) |
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(68.0) |
Repurchases of common stock |
(375.0) |
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(50.0) |
Payment of common stock dividends |
(61.4) |
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(57.6) |
Payment of preferred stock dividends |
(43.1) |
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(43.1) |
Debt issuance costs |
(26.6) |
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— |
Other, net |
(23.8) |
|
6.3 |
Net cash used in financing activities |
(874.3) |
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(253.4) |
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Effect of exchange rate changes on cash and cash equivalents |
(17.3) |
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(5.2) |
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Net change in cash and cash equivalents |
182.7 |
|
104.1 |
Cash and cash equivalents at the beginning of the period |
524.1 |
|
527.3 |
Cash and cash equivalents at the end of the period |
$ 706.8 |
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$ 631.4 |
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(1) |
The nine months ended |
NON-GAAP FINANCIAL MEASURES
In addition to the results provided in accordance with
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
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(in millions, except per share amounts) |
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(Unaudited) |
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Organic Sales Growth by Segment - Three Months Ended: |
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Three Months Ended |
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Growth/(Decline) |
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Reported |
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Divestiture |
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Foreign |
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Workday |
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Organic |
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EES |
$ 2,151.2 |
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$ 2,190.7 |
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(1.8) % |
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— % |
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(0.5) % |
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1.6 % |
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(2.9) % |
CSS |
1,955.1 |
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1,778.0 |
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10.0 % |
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— % |
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(0.1) % |
|
1.6 % |
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8.5 % |
|
1,383.1 |
|
1,675.7 |
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(17.5) % |
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(11.7) % |
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(0.2) % |
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1.6 % |
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(7.2) % |
Total net sales |
$ 5,489.4 |
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$ 5,644.4 |
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(2.7) % |
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(3.5) % |
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(0.2) % |
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1.6 % |
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(0.6) % |
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Organic Sales Growth by Segment - Nine Months Ended: |
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Nine Months Ended |
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Growth/(Decline) |
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Reported |
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Divestiture |
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Foreign |
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Workday |
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Organic |
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EES |
$ 6,423.1 |
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$ 6,526.1 |
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(1.6) % |
|
— % |
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(0.3) % |
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0.5 % |
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(1.8) % |
CSS |
5,491.1 |
|
5,360.9 |
|
2.4 % |
|
— % |
|
(0.1) % |
|
0.5 % |
|
2.0 % |
|
4,404.9 |
|
5,024.8 |
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(12.3) % |
|
(7.9) % |
|
— % |
|
0.5 % |
|
(4.9) % |
Total net sales |
$ 16,319.1 |
|
$ 16,911.8 |
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(3.5) % |
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(2.3) % |
|
(0.2) % |
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0.5 % |
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(1.5) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales Growth by Segment - Sequential: |
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Growth/(Decline) |
||||||||||
|
|
|
|
|
Reported |
|
Divestiture |
|
Foreign |
|
Workday |
|
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EES |
$ 2,151.2 |
|
$ 2,172.9 |
|
(1.0) % |
|
— % |
|
0.1 % |
|
— % |
|
(1.1) % |
CSS |
1,955.1 |
|
1,865.9 |
|
4.8 % |
|
— % |
|
0.1 % |
|
— % |
|
4.7 % |
|
1,383.1 |
|
1,440.9 |
|
(4.0) % |
|
— % |
|
— % |
|
— % |
|
(4.0) % |
Total net sales |
$ 5,489.4 |
|
$ 5,479.7 |
|
0.2 % |
|
— % |
|
0.1 % |
|
— % |
|
0.1 % |
|
Note: Organic sales growth is a non-GAAP financial measure of sales performance. Organic sales growth is calculated by deducting the percentage impact from acquisitions and divestitures for one year following the respective transaction, fluctuations in foreign exchange rates and number of workdays from the reported percentage change in consolidated net sales. Workday impact represents the change in the number of operating days period-over-period after adjusting for weekends and public holidays in |
|
Three Months Ended |
|
Nine Months Ended |
||||
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ 5,489.4 |
|
$ 5,644.4 |
|
$ 16,319.1 |
|
$ 16,911.8 |
Cost of goods sold (excluding depreciation and amortization) |
4,276.7 |
|
4,422.4 |
|
12,770.5 |
|
13,238.9 |
Gross profit |
$ 1,212.7 |
|
$ 1,222.0 |
|
$ 3,548.6 |
|
$ 3,672.9 |
Gross margin |
22.1 % |
|
21.6 % |
|
21.7 % |
|
21.7 % |
|
||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||
(in millions, except per share amounts) |
||
(Unaudited) |
||
|
||
|
|
Three Months Ended |
Gross Profit: |
|
|
|
|
|
Net sales |
|
$ 5,479.7 |
Cost of goods sold (excluding depreciation and amortization) |
|
4,281.7 |
Gross profit |
|
$ 1,198.0 |
Gross margin |
|
21.9 % |
|
Note: Gross profit is a financial measure commonly used in the distribution industry. Gross profit is calculated by deducting cost of goods sold, excluding depreciation and amortization, from net sales. Gross margin is calculated by dividing gross profit by net sales. |
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
|
|
|
|
Adjusted SG&A Expenses: |
|
|
|
|
|
|
|
Selling, general and administrative expenses |
$ 831.1 |
|
$ 796.4 |
|
$ 2,488.9 |
|
$ 2,445.8 |
Loss on abandonment of assets(1) |
— |
|
— |
|
(17.8) |
|
— |
Digital transformation costs(2) |
(5.4) |
|
(12.9) |
|
(17.5) |
|
(28.5) |
Restructuring costs(3) |
(0.5) |
|
(5.6) |
|
(9.5) |
|
(15.4) |
Excise taxes on excess pension plan assets(4) |
— |
|
— |
|
(4.8) |
|
— |
Merger-related and integration costs(5) |
— |
|
(2.1) |
|
— |
|
(16.9) |
Adjusted selling, general and administrative expenses |
$ 825.2 |
|
$ 775.8 |
|
$ 2,439.3 |
|
$ 2,385.0 |
Percentage of net sales |
15.0 % |
|
13.7 % |
|
14.9 % |
|
14.1 % |
|
|
|
|
|
|
|
|
Adjusted Income from Operations: |
|
|
|
|
|
|
|
Income from operations |
$ 335.6 |
|
$ 380.5 |
|
$ 922.1 |
|
$ 1,090.7 |
Loss on abandonment of assets(1) |
— |
|
— |
|
17.8 |
|
— |
Digital transformation costs(2) |
5.4 |
|
12.9 |
|
17.5 |
|
28.5 |
Restructuring costs(3) |
0.5 |
|
5.6 |
|
9.5 |
|
15.4 |
Excise taxes on excess pension plan assets(4) |
— |
|
— |
|
4.8 |
|
— |
Merger-related and integration costs(5) |
— |
|
2.1 |
|
— |
|
16.9 |
Accelerated trademark amortization(6) |
— |
|
0.4 |
|
— |
|
1.2 |
Adjusted income from operations |
$ 341.5 |
|
$ 401.5 |
|
$ 971.7 |
|
$ 1,152.7 |
Adjusted income from operations margin % |
6.2 % |
|
7.1 % |
|
6.0 % |
|
6.8 % |
|
|
|
|
|
|
|
|
Adjusted Other (Income) Expense, net: |
|
|
|
|
|
|
|
Other (income) expense, net |
$ (24.9) |
|
$ 3.7 |
|
$ (99.3) |
|
$ 14.6 |
Gain on divestiture |
19.3 |
|
— |
|
122.2 |
|
— |
Loss on termination of business arrangement(7) |
— |
|
— |
|
(3.8) |
|
— |
Pension settlement cost(8) |
2.2 |
|
— |
|
(3.3) |
|
— |
Adjusted other (income) expense, net |
$ (3.4) |
|
$ 3.7 |
|
$ 15.8 |
|
$ 14.6 |
|
|
|
|
|
|
|
|
Adjusted Provision for Income Taxes: |
|
|
|
|
|
|
|
Provision for income taxes |
$ 69.3 |
|
$ 44.3 |
|
$ 188.1 |
|
$ 160.2 |
Income tax effect of adjustments to income from |
(3.8) |
|
5.6 |
|
(17.4) |
|
16.8 |
Adjusted provision for income taxes |
$ 65.5 |
|
$ 49.9 |
|
$ 170.7 |
|
$ 177.0 |
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
(in millions, except per share amounts) |
|
(Unaudited) |
|
|
|
(1) |
Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company's operations. |
(2) |
Digital transformation costs include costs associated with certain digital transformation initiatives. |
(3) |
Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan. |
(4) |
Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company's |
(5) |
Merger-related and integration costs include integration and professional fees associated with the integration of |
(6) |
Accelerated trademark amortization represents additional amortization expense resulting from changes in the estimated useful lives of certain legacy trademarks that have migrated to our master brand architecture. |
(7) |
Loss on termination of business arrangement represents the loss recognized as a result of management's decision to terminate a business arrangement with a third party. |
(8) |
Pension settlement cost represents expense related to the final settlement of the Company's |
(9) |
The adjustments to income from operations and other (income) expense, net have been tax effected at rates of approximately 24% and 27% for the three months ended |
|
Three Months Ended |
|
Nine Months Ended |
||||
Adjusted Earnings per Diluted Share: |
September |
|
September |
|
September |
|
September |
|
|
|
|
|
|
|
|
Adjusted income from operations |
$ 341.5 |
|
$ 401.5 |
|
$ 971.7 |
|
$ 1,152.7 |
Interest expense, net |
86.5 |
|
98.5 |
|
279.8 |
|
292.3 |
Adjusted other (income) expense, net |
(3.4) |
|
3.7 |
|
15.8 |
|
14.6 |
Adjusted income before income taxes |
258.4 |
|
299.3 |
|
676.1 |
|
845.8 |
Adjusted provision for income taxes |
65.5 |
|
49.9 |
|
170.7 |
|
177.0 |
Adjusted net income |
192.9 |
|
249.4 |
|
505.4 |
|
668.8 |
Net income attributable to noncontrolling interests |
0.4 |
|
0.6 |
|
1.3 |
|
— |
Adjusted net income attributable to |
192.5 |
|
248.8 |
|
504.1 |
|
668.8 |
Preferred stock dividends |
14.4 |
|
14.4 |
|
43.1 |
|
43.1 |
Adjusted net income attributable to common stockholders |
$ 178.1 |
|
$ 234.4 |
|
$ 461.0 |
|
$ 625.7 |
|
|
|
|
|
|
|
|
Diluted shares |
49.8 |
|
52.2 |
|
50.8 |
|
52.4 |
Adjusted earnings per diluted share |
$ 3.58 |
|
$ 4.49 |
|
$ 9.07 |
|
$ 11.94 |
|
Note: For the three and nine months ended |
|
||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||||||||
(in millions, except per share amounts) |
||||||||||
(Unaudited) |
||||||||||
|
||||||||||
|
|
Three Months Ended |
||||||||
EBITDA and Adjusted EBITDA by Segment: |
|
EES |
|
CSS |
|
|
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common stockholders |
|
$ 168.4 |
|
$ 150.4 |
|
$ 168.5 |
|
$ (297.4) |
|
$ 189.9 |
Net (loss) income attributable to noncontrolling interests |
|
(1.0) |
|
0.9 |
|
— |
|
0.5 |
|
0.4 |
Preferred stock dividends |
|
— |
|
— |
|
— |
|
14.4 |
|
14.4 |
Provision for income taxes(1) |
|
— |
|
— |
|
— |
|
69.3 |
|
69.3 |
Interest expense, net(1) |
|
— |
|
— |
|
— |
|
86.5 |
|
86.5 |
Depreciation and amortization |
|
12.2 |
|
17.6 |
|
6.9 |
|
9.3 |
|
46.0 |
EBITDA |
|
$ 179.6 |
|
$ 168.9 |
|
$ 175.4 |
|
$ (117.4) |
|
$ 406.5 |
Other expense (income), net(2) |
|
5.6 |
|
4.7 |
|
(19.7) |
|
(15.5) |
|
(24.9) |
Stock-based compensation expense |
|
1.1 |
|
1.6 |
|
0.8 |
|
3.3 |
|
6.8 |
Digital transformation costs(3) |
|
— |
|
— |
|
— |
|
5.4 |
|
5.4 |
Cloud computing arrangement amortization(4) |
|
— |
|
— |
|
— |
|
3.8 |
|
3.8 |
Restructuring costs(5) |
|
— |
|
— |
|
— |
|
0.5 |
|
0.5 |
Adjusted EBITDA |
|
$ 186.3 |
|
$ 175.2 |
|
$ 156.5 |
|
$ (119.9) |
|
$ 398.1 |
Adjusted EBITDA margin % |
|
8.7 % |
|
9.0 % |
|
11.3 % |
|
|
|
7.3 % |
|
||||||||||
(1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions. |
||||||||||
(2) Other income for the |
||||||||||
(3) Digital transformation costs include costs associated with certain digital transformation initiatives. |
||||||||||
(4) Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs |
||||||||||
(5) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan. |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||
EBITDA and Adjusted EBITDA by Segment: |
|
EES |
|
CSS |
|
|
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common stockholders |
|
$ 177.9 |
|
$ 146.0 |
|
$ 188.7 |
|
$ (293.6) |
|
$ 219.0 |
Net income (loss) attributable to noncontrolling interests |
|
— |
|
0.7 |
|
— |
|
(0.1) |
|
0.6 |
Preferred stock dividends |
|
— |
|
— |
|
— |
|
14.4 |
|
14.4 |
Provision for income taxes(1) |
|
— |
|
— |
|
— |
|
44.3 |
|
44.3 |
Interest expense, net(1) |
|
— |
|
— |
|
— |
|
98.5 |
|
98.5 |
Depreciation and amortization |
|
10.9 |
|
18.0 |
|
6.3 |
|
9.9 |
|
45.1 |
EBITDA |
|
$ 188.8 |
|
$ 164.7 |
|
$ 195.0 |
|
$ (126.6) |
|
$ 421.9 |
Other expense (income), net |
|
1.7 |
|
9.7 |
|
0.6 |
|
(8.3) |
|
3.7 |
Stock-based compensation expense |
|
1.0 |
|
1.1 |
|
0.8 |
|
7.9 |
|
10.8 |
Digital transformation costs(2) |
|
— |
|
— |
|
— |
|
12.9 |
|
12.9 |
Restructuring costs(3) |
|
— |
|
— |
|
— |
|
5.6 |
|
5.6 |
Merger-related and integration costs(4) |
|
— |
|
— |
|
— |
|
2.1 |
|
2.1 |
Adjusted EBITDA |
|
$ 191.5 |
|
$ 175.5 |
|
$ 196.4 |
|
$ (106.4) |
|
$ 457.0 |
Adjusted EBITDA margin % |
|
8.7 % |
|
9.9 % |
|
11.7 % |
|
|
|
8.1 % |
|
||||||||||
(1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions. |
||||||||||
(2) Digital transformation costs include costs associated with certain digital transformation initiatives. |
||||||||||
(3) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan. |
||||||||||
(4) Merger-related and integration costs include integration and professional fees associated with the integration of |
|
||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||||||||
(in millions, except per share amounts) |
||||||||||
(Unaudited) |
||||||||||
|
||||||||||
|
|
Three Months Ended |
||||||||
EBITDA and Adjusted EBITDA by Segment: |
|
EES |
|
CSS |
|
|
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common stockholders |
|
$ 179.3 |
|
$ 114.3 |
|
$ 268.5 |
|
$ (344.4) |
|
$ 217.7 |
Net income (loss) attributable to noncontrolling interests |
|
0.1 |
|
0.7 |
|
— |
|
(0.1) |
|
0.7 |
Preferred stock dividends |
|
— |
|
— |
|
— |
|
14.4 |
|
14.4 |
Provision for income taxes(1) |
|
— |
|
— |
|
— |
|
87.8 |
|
87.8 |
Interest expense, net(1) |
|
— |
|
— |
|
— |
|
98.8 |
|
98.8 |
Depreciation and amortization |
|
11.4 |
|
18.2 |
|
7.4 |
|
9.1 |
|
46.1 |
EBITDA |
|
$ 190.8 |
|
$ 133.2 |
|
$ 275.9 |
|
$ (134.4) |
|
$ 465.5 |
Other expense (income), net(2) |
|
3.0 |
|
16.0 |
|
(103.2) |
|
(11.7) |
|
(95.9) |
Stock-based compensation expense |
|
1.1 |
|
1.6 |
|
0.8 |
|
(0.8) |
|
2.7 |
Loss on abandonment of assets(3) |
|
— |
|
— |
|
— |
|
17.8 |
|
17.8 |
Digital transformation costs(4) |
|
— |
|
— |
|
— |
|
6.1 |
|
6.1 |
Cloud computing arrangement amortization(5) |
|
— |
|
— |
|
— |
|
3.0 |
|
3.0 |
Restructuring costs(6) |
|
— |
|
— |
|
— |
|
0.9 |
|
0.9 |
Adjusted EBITDA |
|
$ 194.9 |
|
$ 150.8 |
|
$ 173.5 |
|
$ (119.1) |
|
$ 400.1 |
Adjusted EBITDA margin % |
|
9.0 % |
|
8.1 % |
|
12.0 % |
|
|
|
7.3 % |
|
||||||||||
(1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions. |
||||||||||
(2) Other income for the |
||||||||||
(3) Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party |
||||||||||
(4) Digital transformation costs include costs associated with certain digital transformation initiatives. |
||||||||||
(5) Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs |
||||||||||
(6) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan. |
|
Note: EBITDA, Adjusted EBITDA and Adjusted EBITDA margin % are non-GAAP financial measures that provide indicators of the Company's performance and its ability to meet debt service requirements. For the three months ended |
|
||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||||||||
(in millions, except per share amounts) |
||||||||||
(Unaudited) |
||||||||||
|
||||||||||
|
|
Nine Months Ended |
||||||||
EBITDA and Adjusted EBITDA by Segment: |
|
EES |
|
CSS |
|
|
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common stockholders |
|
$ 495.9 |
|
$ 353.1 |
|
$ 597.8 |
|
$ (937.7) |
|
$ 509.1 |
Net (loss) income attributable to noncontrolling interests |
|
(1.3) |
|
1.9 |
|
— |
|
0.7 |
|
1.3 |
Preferred stock dividends |
|
— |
|
— |
|
— |
|
43.1 |
|
43.1 |
Provision for income taxes(1) |
|
— |
|
— |
|
— |
|
188.1 |
|
188.1 |
Interest expense, net(1) |
|
— |
|
— |
|
— |
|
279.8 |
|
279.8 |
Depreciation and amortization |
|
34.8 |
|
53.9 |
|
21.3 |
|
27.6 |
|
137.6 |
EBITDA |
|
$ 529.4 |
|
$ 408.9 |
|
$ 619.1 |
|
$ (398.4) |
|
$ 1,159.0 |
Other expense (income), net(2) |
|
14.3 |
|
39.4 |
|
(122.1) |
|
(30.9) |
|
(99.3) |
Stock-based compensation expense |
|
3.3 |
|
4.9 |
|
2.4 |
|
9.0 |
|
19.6 |
Loss on abandonment of assets(3) |
|
— |
|
— |
|
— |
|
17.8 |
|
17.8 |
Digital transformation costs(4) |
|
— |
|
— |
|
— |
|
17.5 |
|
17.5 |
Cloud computing arrangement amortization(5) |
|
— |
|
— |
|
— |
|
9.7 |
|
9.7 |
Restructuring costs(6) |
|
— |
|
— |
|
— |
|
9.5 |
|
9.5 |
Excise taxes on excess pension plan assets(7) |
|
— |
|
— |
|
— |
|
4.8 |
|
4.8 |
Adjusted EBITDA |
|
$ 547.0 |
|
$ 453.2 |
|
$ 499.4 |
|
$ (361.0) |
|
$ 1,138.6 |
Adjusted EBITDA margin % |
|
8.5 % |
|
8.3 % |
|
11.3 % |
|
|
|
7.0 % |
|
||||||||||
(1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions. |
||||||||||
(2) Other income for the |
||||||||||
(3) Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party |
||||||||||
(4) Digital transformation costs include costs associated with certain digital transformation initiatives. |
||||||||||
(5) Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs |
||||||||||
(6) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan. |
||||||||||
(7) Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company's |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
||||||||
EBITDA and Adjusted EBITDA by Segment: |
|
EES |
|
CSS |
|
|
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common stockholders |
|
$ 516.2 |
|
$ 413.6 |
|
$ 552.1 |
|
$ (901.4) |
|
$ 580.5 |
Net (loss) income attributable to noncontrolling interests |
|
(0.8) |
|
1.0 |
|
— |
|
(0.2) |
|
— |
Preferred stock dividends |
|
— |
|
— |
|
— |
|
43.1 |
|
43.1 |
Provision for income taxes(1) |
|
— |
|
— |
|
— |
|
160.2 |
|
160.2 |
Interest expense, net(1) |
|
— |
|
— |
|
— |
|
292.3 |
|
292.3 |
Depreciation and amortization |
|
32.3 |
|
53.9 |
|
18.7 |
|
31.5 |
|
136.4 |
EBITDA |
|
$ 547.7 |
|
$ 468.5 |
|
$ 570.8 |
|
$ (374.5) |
|
$ 1,212.5 |
Other expense (income), net |
|
12.0 |
|
38.2 |
|
(0.5) |
|
(35.1) |
|
14.6 |
Stock-based compensation expense(2) |
|
3.8 |
|
3.8 |
|
2.4 |
|
22.1 |
|
32.1 |
Digital transformation costs(3) |
|
— |
|
— |
|
— |
|
28.5 |
|
28.5 |
Merger-related and integration costs(4) |
|
— |
|
— |
|
— |
|
16.9 |
|
16.9 |
Restructuring costs(5) |
|
— |
|
— |
|
— |
|
15.4 |
|
15.4 |
Adjusted EBITDA |
|
$ 563.5 |
|
$ 510.5 |
|
$ 572.7 |
|
$ (326.7) |
|
$ 1,320.0 |
Adjusted EBITDA margin % |
|
8.6 % |
|
9.5 % |
|
11.4 % |
|
|
|
7.8 % |
|
||||||||||
(1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions. |
||||||||||
(2) Stock-based compensation expense in the calculation of adjusted EBITDA for the nine months ended |
||||||||||
(3) Digital transformation costs include costs associated with certain digital transformation initiatives. |
||||||||||
(4) Merger-related and integration costs include integration and professional fees associated with the integration of |
||||||||||
(5) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan. |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
(in millions, except per share amounts) |
(Unaudited) |
|
Note: Adjusted EBITDA and Adjusted EBITDA margin % are non-GAAP financial measures that provide indicators of the Company's performance and its ability to meet debt service requirements. For the nine months ended |
|
|||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||
(in millions, except per share amounts) |
|||
(Unaudited) |
|||
|
|||
|
Twelve Months Ended |
||
Financial Leverage: |
|
|
|
|
|
|
|
Net income attributable to common stockholders |
$ 636.8 |
|
$ 708.1 |
Net income attributable to noncontrolling interests |
1.9 |
|
0.6 |
Preferred stock dividends |
57.4 |
|
57.4 |
Provision for income taxes |
253.7 |
|
225.9 |
Interest expense, net |
376.9 |
|
389.3 |
Depreciation and amortization |
182.4 |
|
181.3 |
EBITDA |
$ 1,509.1 |
|
$ 1,562.6 |
Other (income) expense, net |
(88.8) |
|
25.1 |
Stock-based compensation expense |
33.0 |
|
45.5 |
Merger-related and integration costs(1) |
2.4 |
|
19.3 |
Restructuring costs(2) |
10.8 |
|
16.7 |
Digital transformation costs(3) |
25.1 |
|
36.1 |
Excise taxes on excess pension plan assets(4) |
4.8 |
|
— |
Loss on abandonment of assets(5) |
17.8 |
|
— |
Cloud computing arrangement amortization(6) |
9.7 |
|
— |
Adjusted EBITDA |
$ 1,523.9 |
|
$ 1,705.3 |
|
|
|
|
|
As of |
||
|
|
|
|
Short-term debt and current portion of long-term debt, net |
$ 14.9 |
|
$ 8.6 |
Long-term debt, net |
5,007.8 |
|
5,313.1 |
Debt discount and debt issuance costs(7) |
50.6 |
|
43.0 |
Fair value adjustments to Anixter Senior Notes due 2023 and 2025(7) |
(0.1) |
|
(0.1) |
Total debt |
5,073.2 |
|
5,364.6 |
Less: Cash and cash equivalents |
706.8 |
|
524.1 |
Total debt, net of cash |
$ 4,366.4 |
|
$ 4,840.5 |
|
|
|
|
Financial leverage ratio |
2.9 |
|
2.8 |
|
|
(1) |
Merger-related and integration costs include integration and professional fees associated with the integration of |
(2) |
Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan. |
(3) |
Digital transformation costs include costs associated with certain digital transformation initiatives, which have historically been included in merger-related and integration costs in prior years. |
(4) |
Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company's |
(5) |
Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company's operations. |
(6) |
Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs for cloud computing arrangements to support our digital transformation initiatives. |
(7) |
Debt is presented in the condensed consolidated balance sheets net of debt discount and debt issuance costs, and includes adjustments to record the long-term debt assumed in the merger with Anixter at its acquisition date fair value. |
|
|
Note: Financial leverage ratio is a non-GAAP measure of the use of debt. Financial leverage ratio is calculated by dividing total debt, excluding debt discount, debt issuance costs and fair value adjustments, net of cash, by adjusted EBITDA. EBITDA is defined as the trailing twelve months earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as the trailing twelve months EBITDA before other non-operating expenses (income), non-cash stock-based compensation expense, merger-related and integration costs, restructuring costs, digital transformation costs, excise taxes on excess pension plan assets related to the final settlement of the Anixter Inc. Pension Plan, loss on abandonment of assets, and cloud computing arrangement amortization. |
|
|||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||
(in millions, except per share amounts) |
|||||||
(Unaudited) |
|||||||
|
|||||||
|
Three Months Ended |
|
Nine Months Ended |
||||
Free Cash Flow: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow provided by operations |
$ 302.1 |
|
$ 361.7 |
|
$ 824.6 |
|
$ 423.9 |
Less: Capital expenditures |
(29.2) |
|
(19.3) |
|
(70.4) |
|
(63.6) |
Add: Other adjustments |
6.6 |
|
14.7 |
|
22.6 |
|
24.1 |
Free cash flow |
$ 279.5 |
|
$ 357.1 |
|
$ 776.8 |
|
$ 384.4 |
Percentage of adjusted net income |
144.9 % |
|
143.2 % |
|
153.7 % |
|
57.5 % |
|
Note: Free cash flow is a non-GAAP financial measure of liquidity. Capital expenditures are deducted from operating cash flow to determine free cash flow. Free cash flow is available to fund investing and financing activities. For the three and nine months ended |
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