WESCO International, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the First Quarter of 2017 and Re-Affirms Earnings Guidance for the Full Year of Fiscal 2017
January 26, 2017 at 05:15 pm IST
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WESCO International, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company announced net sales of $1,793.3 million compared to $1,861.5 million for the same period a year ago. Income from operations was $82.1 million compared to $90.0 million for the same period a year ago. Income before income taxes was $64.6 million compared to $80.1 million for the same period a year ago. Net income was $47.8 million compared to $48.6 million for the same period a year ago. Net income attributable to the company was $47.4 million compared to $48.4 million for the same period a year ago. Diluted earnings per common share were $0.96 compared to $1.03 for the same period a year ago. Cash flow provided by operations was $83.0 million compared to $107.1 million for the same period a year ago. Capital expenditures were $4.8 million compared to $5.5 million for the same period a year ago. Free cash flow was $78.2 million compared to $101.6 million for the same period a year ago.
For the full year, the company announced net sales of $7,336.0 million compared to $7,518.5 million for the same period a year ago. Income from operations was $332.0 million compared to $373.7 million for the same period a year ago. Income before income taxes was $131.5 million compared to $303.9 million for the same period a year ago. Net income was $101.1 million compared to $208.4 million for the same period a year ago. Net income attributable to the company was $101.6 million compared to $210.7 million for the same period a year ago. Diluted earnings per common share were $2.10 compared to $4.18 for the same period a year ago. EBITDA was $398.9 million compared to $438.7 million for the same period a year ago. Adjusted income before income taxes was $255.4 million compared to $303.9 million for the same period a year ago. Adjusted net income attributable to the company was $184.3 million compared to $210.7 million for the same period a year ago. Adjusted diluted earnings per common share were $3.80. Cash flow provided by operations was $300.2 million compared to $283.1 million for the same period a year ago. Capital expenditures were $18.0 million compared to $21.7 million for the same period a year ago. Free cash flow was $282.2 million compared to $261.4 million for the same period a year ago.
The company re-affirmed earnings guidance for the full year of fiscal 2017. The company reaffirmed its expectation of 2017 sales in the range of flat to up 4%, EPS of $3.60 to $4.00 per diluted share, and free cash flow generation of at least 90% of net income. The company expected operating margin in the range of 4.4% to 4.6%. The company anticipated an effective tax rate of approximately 30% and 49 million shares outstanding.
For the first quarter, the company expected a decrease in sales of down 3% to flat, reflecting gradual improvement in end markets. The first quarter is seasonally company's lightest quarter, with sales generally 5% to 7% lower than the other quarters. As a result, the first quarter is typically the lowest for operating margin, and accordingly, the company expected operating margin of 3.8% to 4.1%.
WESCO International, Inc. is a provider of business-to-business distribution, logistics services and supply chain solutions. Its segments include Electrical & Electronic Solutions (EES), Communications & Security Solutions (CSS) and Utility & Broadband Solutions (UBS). The ESS segment supplies a range of products and solutions primarily to the construction, industrial and original equipment manufacturer markets. Its product portfolio includes a range of electrical equipment and supplies, automation and connected devices (the Internet of Things), security, lighting, wire and cable, safety, and maintenance, repair and operating products. The CSS segment is engaged in the network infrastructure and security markets. The UBS segment provides products and services to investor-owned utilities, public power companies, such as municipalities, as well as global service providers, wireless providers, broadband operators and others. It also provides data center and building intelligence software.
WESCO International, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the First Quarter of 2017 and Re-Affirms Earnings Guidance for the Full Year of Fiscal 2017