WESCO International, Inc.

Hello and welcome to WESCO's Q3 2022 earnings call. I would like to remind you that all lines are in a listen-only mode throughout the presentation. If you would like to ask a question, please signal for a conference specialist by pressing the star key followed by one on your telephone keypad. Please note that today's event is being recorded. I would now like to hand a call over to Scott Gaffner, SVP Investor Relations to begin.

Thank you and good morning, everyone. Before we get started, I want to remind you that certain statements made on this call contain forward-looking information. Forward-looking information statements are not guarantees 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 related on this call speaks only as of this date, and the company undertakes no obligation to update the information to reflect the changed circumstances. Additionally, today, we will use certain non-GAAP financial measures. Acquired information about these non-GAAP measures is available on our webcast slide and in our press release, both of which are posted on our website at wesco.com. On the call this morning, we have John Engel, Wesco's Chairman, President, and Chief Executive Officer, and Dave Schultz, Executive Vice President and Chief Financial Officer. And now I'll turn the call over to John.

Well, thank you, Scott, and good morning, everyone. It's a pleasure to be with you today. As you saw from our earnings release earlier this morning, we delivered another quarter of outstanding results, further demonstrating a substantial value creation capability of the new Wesco. We once again set company records for margin, profitability, and backlog, and further reduced our leverage ratio in the third quarter. The power of our increased scale, expanded portfolio, and industry leading positions is clearly evident in our continued strong performance. Strong demand and operational improvements are driving the record setting performance across our company. Each of our three strategic business units again delivered strong sales and profit growth in the quarter. driven by the breakthrough results of our enterprise-wide cross-selling and gross margin improvement programs. Overall, we delivered organic sales growth of 17%, record profitability of 8.6% adjusted EBITDA margin, and record adjusted EPS of $4.49, up 64% versus the prior year. You will recall that we substantially raised our outlook for the year following our results in each of the first and second quarters. Our outstanding results in the third quarter and the continued strong execution across our business support the full year outlook for 2022 that we previously provided. We are maintaining our organic sales growth targets, but adjusting our reported sales range with the change entirely driven by the foreign exchange rates. thus reflecting the unprecedented strength of the U.S. dollar throughout 2022. At the same time, we're increasing our outlook for EBITDA margin and narrowing our range for EPS. Our increased profitability continues to fuel our investment in advanced digital capabilities that will transform our relationship with both our customers and our supplier partners. The recent acquisition of Rahi Systems announced earlier this week underscores our strategy to maximize our exposure to these attractive secular growth trends. Our profitable execution against these sustainable trends and our investment in Wesco's digital transformation support a virtuous cycle which is expected to result in an even higher level of performance, operating efficiency, and customer loyalty. Before I hand it off to Dave, I plan to address our transformational results versus pre-pandemic levels. and our uniquely strong position to capitalize on the secular trends that we talked about in our end markets and that we presented at our recent investor day. So let's turn to page five. The demonstrated strength of our business model and the success of our integration efforts over the last nine quarters have established a track record of superior results for our company. The strength of the new WESCO is best measured by the value we have created since the merger closed in June 2020. This page highlights our record year-to-date 2022 results as compared to our pro forma pre-pandemic results for the comparable period in 2019. As you can clearly see, we have outperformed the market, delivering impressive sales growth and margin expansion, and achieving record profitability. all while rapidly deleveraging our balance sheet. Our resilient and critical supply chain solutions, combined with our exposure to the sustainable secular trends, will drive our future sales and profitability. As we recently conveyed during our investor day, we're excited because there's still substantial value embedded in a transformational combination of Wesco and Anixter. We look forward with great confidence to a future of sustained growth and market outperformance. Now let's move to page six. Providing our global customers with end-to-end solutions, and that includes the products and supply chain services that make our customers more efficient and more effective, is what drives us each and every day. We're executing at a very high level and we are exceptionally well positioned. They capitalized 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 strategic business units and across our entire global enterprise. I'm pleased to report that we raised our cumulative sales synergy target again this quarter, and now it stands at $1.4 billion. Our positive cross-selling momentum is fueling our market outperformance and growth. As I've said before, the new Wesco is transforming into a growth company. We have a record backlog and expanding cross-sell programs. a growing opportunity pipeline, and positive momentum overall. But we are only in the early stages of unlocking our total growth potential. Now moving to page seven. The acquisition of Rahi Systems closed earlier this week highlights our continued investment in the high growth data center segment and further expands cross-sell opportunities across our companies. Rahi is a leading global hyperscale data center solutions provider with over 900 employees in 25 countries and a trailing 12-month sales of approximately $400 million. Rahi will be integrated within our CSS business and provide complementary global coverage and significantly enhance our full suite of data center solutions for contractors, integrators, and end-user customers. With that, I will now turn the call over to Dave.