WESCO International, Inc.

Hello and welcome to West Coast second quarter earnings call. I would like to remind you that all lines are on listening only mode through the presentation. If you would like to ask a question, please press star followed by one on your telephone keypad. Please note that this event is being recorded. I would now hand the call over to Scott Gaffner, Senior Vice President of Investor Relations to begin.

Thank you, and good morning, everyone. Before we get started, I wanted to remind you that certain statements made on this call contain forward-looking information. Forward-looking statements are not guaranteed of performance and by their nature are subject to inherent uncertainties. Actual results may differ materially. Please see our webcast slides as well as the company's SEC filings for additional risk factors and disclosures. Any forward-looking information relayed on this call speaks only as of this date, and the company undertakes no obligation to state the information. to reflect the changed circumstances. Additionally, today we will use certain non-GAAP financial measures. Required information about these non-GAAP measures is available on our webcast slides and in our press release, both of which are posted on our website at Wesco.com. On this call this morning, we have John Engle, Wesco's Chairman, President, and Chief Executive Officer, and Dave Schultz, Executive Vice President and Chief Financial Officer. And now I'll turn it over to John.

Thank you, Scott. Good morning, everyone. It's a pleasure to be with you today. As you saw from the earnings release earlier this morning, the beat goes on in terms of the value creation of Westcote's new business model as we pass the second anniversary of our transformational combination with Amnesty. Our second quarter results were exceptional. We once again set new company records for sales, backlogs, margin, and profitability. Importantly, leverage is now back within our target range, and it's a full year earlier than what we got as a market to expect after we completed the Onyxer merger in June of 2020. Our momentum continues to build as we outperform the market and deliver superior value to our customers. The power of our newfound scale, expanded portfolio, and industry-leading positions is made clear each and every quarter. Strong demand in our end markets continues. Each of our three strategic business units again delivered double-digit sales and profit growth in the quarter, driven by the ongoing success of our enterprise-wide cross-selling and growth margin improvement programs. Overall, we delivered impressive organic sales growth of 21%, record profitability of 8-plus percent adjusted EBITDA margin, which is a first for Wesco now to deliver above 8%, a very important mark. and adjusted EPS growth of 59% versus the prior year. You will recall that we substantially raised our outlook for the year after our excellent first quarter results. As a result of our outstanding second quarter results and the strong execution across our business, we are again raising our outlook for 2022. Along with this raise, I want to highlight that our increased profitability continues to fuel our investment in advanced digital capabilities, which is expected to result in an even higher level of performance, operating efficiency, and customer loyalty. Dave will review our financial results and address our higher full-year outlook in more detail shortly. But before I hand it off to Dave, I plan to address our transformational results versus our pre-pandemic levels, as well as our uniquely strong position to capitalize on the attractive secular growth trends in our end markets. Now turning to page five. The demonstrated strength of our business model and the success of our integration efforts over the last two years have established a track record of superior results for the new WESCO. The strength of the new WESCO is best measured by the value we have created since the merger closed in June of 2020. This page highlights our record first half 2022 results as compared to our pro forma first half pre-pandemic results in 2019. As you can see clearly, we have outperformed the market, delivered impressive sales growth and margin expansion, and achieved record profitability, all while rapidly deleveraging our balance sheet. While we're pleased with this progress, we're even more excited because there's still substantial value to be generated from a transformational combination of Let's Go and Adixter. And we were confident in a future of sustained growth and market outperformance. Now moving to page six. Providing our global customers with end-to-end solutions, that is including the products and supply chain services that make our customers more efficient and more effective, is what drives us each and every day. We are executing at a very high level, and we're exceptionally well positioned to capitalize on the strong secular growth trends and increasing investments in public sector infrastructure outlined on this page. These long-term trends are driving secular growth in each of our three global business units and across our entire global enterprise. We raised our cumulative sales synergy target again this quarter, now up to $1.2 billion. It's important to note that this is seven times the original target we set prior to the merger close. Our accelerating cross-selling momentum is fueling our market outperformance and growth. And as I've said before, the new rescue is transforming into a growth company. We have a record backlog and expanding cross-sell program, a growing opportunity pipeline, and very positive momentum overall. But... And this is important, but we are only in the early stages of unlocking our total growth and potential. With that, I'll now turn the call over to Dave.