Company: WCC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000929008-25-000012
Chunk: 113

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 113
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 material impact on the year-over-year decline in UBS organic sales.

UBS adjusted EBITDA decreased $31.1 million, or 18.4% year-over-year. The decrease primarily reflects the $302.8 million decline in net sales, as described above, partially offset by a corresponding decrease in cost of goods sold of $254.4 million, which is inclusive of lower supplier volume rebates of $3.8 million. SG&A expenses decreased $17.8 million as compared to the prior year, primarily due to lower salaries of $5.2 million, lower commissions and incentives of $4.0 million, and lower benefits of $2.6 million, all of which are primarily attributable to the divestiture of the WIS business.

The following tables reconcile net income attributable to common stockholders to adjusted EBITDA and adjusted EBITDA margin % by segment, which are non-GAAP financial measures, for the periods presented: 

Three Months Ended March 31, 2025(In millions)EESCSSUBSCorporateTotalNet income attributable to common stockholders$125.1$127.2$130.3$(278.6)$104.0Net (loss) income attributable to noncontrolling interests(0.1)0.1—(0.1)(0.1)Preferred stock dividends———14.414.4Provision for income taxes(1)———36.136.1Interest expense, net(1)———86.386.3Depreciation and amortization12.219.07.89.448.4Other expense (income), net4.410.9(0.2)(14.9)0.2Stock-based compensation expense1.01.30.47.510.2Digital transformation costs(2)———6.26.2Cloud computing arrangement amortization(3)———3.93.9Restructuring costs(4)———1.11.1Adjusted EBITDA$142.6$158.5$138.3$(128.7)$310.7Adjusted EBITDA margin %6.9 %7.9 %10.8 %(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)  Digital transformation costs include costs associated with certain digital transformation initiatives.(3) Cloud computing arrangement amortization consists of expense recognized in selling,