CONFORMED
---------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2003
---------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number 0-255
GRAYBAR ELECTRIC COMPANY, INC.
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(Exact name of registrant as specified in its charter)
NEW YORK 13 - 0794380
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
34 NORTH MERAMEC AVENUE, ST. LOUIS, MO 63105
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(Address of principal executive offices) (Zip Code)
POST OFFICE BOX 7231, ST. LOUIS, MO 63177
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(Mailing Address) (Zip Code)
Registrant's telephone number, including area code: (314) 573 - 9200
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Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
YES X NO
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Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2) of the Securities Exchange Act of 1934.
YES NO X
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Common Stock Outstanding at October 31, 2003: 5,907,441
--------------------
(Number of Shares)
Item 1. Financial Statements PART I
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CONSOLIDATED BALANCE SHEETS
---------------------------
(Dollars Stated in Thousands)
(Except for Share and Per Share Data)
SEPTEMBER 30, 2003 DECEMBER 31, 2002
----------------------------- -------------------------
CURRENT ASSETS
Cash $ 15,199 $ 20,826
----------------------------- -------------------------
Trade receivables 582,376 504,102
----------------------------- -------------------------
Merchandise inventory 486,891 515,691
----------------------------- -------------------------
Other current assets 24,010 17,270
----------------------------- -------------------------
Total current assets 1,108,476 1,057,889
----------------------------- -------------------------
PROPERTY
Land 28,105 25,601
----------------------------- -------------------------
Buildings and permanent fixtures 245,437 235,205
----------------------------- -------------------------
Furniture and fixtures 165,113 167,371
----------------------------- -------------------------
Software 75,737 50,236
----------------------------- -------------------------
Capital equipment leases 33,952 24,159
----------------------------- -------------------------
Less-Accumulated depreciation 229,466 209,189
----------------------------- -------------------------
Net property 318,878 293,383
----------------------------- -------------------------
DEFERRED FEDERAL INCOME TAXES 19,482 24,294
----------------------------- -------------------------
OTHER ASSETS 30,446 24,605
----------------------------- -------------------------
$ 1,477,282 $ 1,400,171
============================= =========================
CURRENT LIABILITIES
Short-term borrowings $ --- $ ---
----------------------------- -------------------------
Current portion of long-term debt 24,842 23,314
----------------------------- -------------------------
Trade accounts payable 562,054 498,855
----------------------------- -------------------------
Other accrued taxes 14,863 12,036
----------------------------- -------------------------
Accrued payroll and benefit costs 35,025 22,667
----------------------------- -------------------------
Dividends payable --- 6,802
----------------------------- -------------------------
Other payables and accruals 57,199 48,582
----------------------------- -------------------------
Total current liabilities 693,983 612,256
----------------------------- -------------------------
POSTRETIREMENT BENEFITS LIABILITY 78,486 77,586
----------------------------- -------------------------
PENSION LIABILITY 55,776 55,776
----------------------------- -------------------------
LONG TERM DEBT 262,036 266,710
----------------------------- -------------------------
OTHER NON-CURRENT LIABILITIES 1,079 ---
----------------------------- -------------------------
2
CONSOLIDATED BALANCE SHEETS
---------------------------
(Dollars Stated in Thousands)
(Except for Share and Per Share Data)
SEPTEMBER 30, 2003 DECEMBER 31, 2002
------------------------- -------------------------
SHAREHOLDERS' EQUITY
CAPITAL STOCK
Preferred:
---------
Par value $20 per share
Authorized 300,000 shares
SHARES
------
2003 2002
---- ----
Issued to shareholders 2,337 2,337
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In treasury, at cost (142) (87)
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Outstanding 2,195 2,250 44 45
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Common:
------
Stated value $20 per share
Authorized 7,500,000 shares
SHARES
------
2003 2002
---- ----
Issued to voting trustees 5,898,548 5,879,436
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Issued to shareholders 311,618 311,549
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In treasury, at cost (291,205) (27,380)
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Outstanding 5,918,961 6,163,605 118,379 123,272
------------- ------------- ------------------------- -------------------------
Advance payments on subscriptions
to common stock 46 50
------------------------- -------------------------
Retained earnings 310,497 309,434
------------------------- -------------------------
Accumulated other comprehensive income (loss) (43,044) (44,958)
------------------------- -------------------------
TOTAL SHAREHOLDERS' EQUITY 385,922 387,843
------------------------- -------------------------
$ 1,477,282 $ 1,400,171
========================= =========================
See accompanying Notes to Consolidated Financial Statements
3
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------
(Dollars Stated in Thousands)
(Except for Share and Per Share Data)
QUARTER ENDED
SEPTEMBER 30, 2003 SEPTEMBER 30, 2002
-------------------------- --------------------------
GROSS SALES, net of returns and allowances $ 1,027,120 $ 1,016,833
-------------------------- --------------------------
Less - Cash discounts 2,671 3,110
-------------------------- --------------------------
NET SALES 1,024,449 1,013,723
-------------------------- --------------------------
COST OF MERCHANDISE SOLD 833,478 824,747
-------------------------- --------------------------
Gross margin 190,971 188,976
-------------------------- --------------------------
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 169,084 165,341
-------------------------- --------------------------
DEPRECIATION AND AMORTIZATION 9,516 8,896
-------------------------- --------------------------
Income from operations 12,371 14,739
-------------------------- --------------------------
OTHER INCOME, net 1,732 864
-------------------------- --------------------------
INTEREST EXPENSE 6,049 6,574
-------------------------- --------------------------
Income before provision for income taxes 8,054 9,029
-------------------------- --------------------------
PROVISION FOR INCOME TAXES
Current (565) 3,571
-------------------------- --------------------------
Deferred 4,010 (96)
-------------------------- --------------------------
Total provision for income taxes 3,445 3,475
-------------------------- --------------------------
NET INCOME $ 4,609 $ 5,554
========================== ==========================
NET INCOME PER SHARE OF COMMON STOCK $ .77 $ .89
========================== ==========================
DIVIDENDS
Preferred - $.25 per share $ 1 $ 1
-------------------------- --------------------------
Common - $.30 per share 1,780 1,872
-------------------------- --------------------------
$ 1,781 $ 1,873
========================== ==========================
See accompanying Notes to Consolidated Financial Statements
4
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------
(Dollars Stated in Thousands)
(Except for Share and Per Share Data)
NINE MONTHS ENDED
SEPTEMBER 30, 2003 SEPTEMBER 30, 2002
-------------------------- --------------------------
GROSS SALES, net of returns and allowances $ 2,843,767 $ 3,036,701
--------------------------
--------------------------
Less - Cash discounts 7,992 8,982
-------------------------- --------------------------
NET SALES 2,835,775 3,027,719
-------------------------- --------------------------
COST OF MERCHANDISE SOLD 2,291,178 2,466,398
-------------------------- --------------------------
Gross margin 544,597 561,321
-------------------------- --------------------------
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 494,721 505,245
-------------------------- --------------------------
DEPRECIATION AND AMORTIZATION 27,301 25,462
-------------------------- --------------------------
Income from operations 22,575 30,614
-------------------------- --------------------------
OTHER INCOME, net 6,390 3,032
-------------------------- --------------------------
INTEREST EXPENSE 17,820 21,462
-------------------------- --------------------------
Income before provision for income taxes 11,145 12,184
-------------------------- --------------------------
PROVISION FOR INCOME TAXES
Current (50) 4,978
-------------------------- --------------------------
Deferred 4,731 (288)
-------------------------- --------------------------
Total provision for income taxes 4,681 4,690
-------------------------- --------------------------
NET INCOME $ 6,464 $ 7,494
========================== ==========================
NET INCOME PER SHARE OF COMMON STOCK (NOTE 2) $ 1.07 $ 1.20
========================== ==========================
DIVIDENDS
Preferred - $.75 per share $ 2 $ 2
-------------------------- --------------------------
Common - $.90 per share 5,399 5,683
-------------------------- --------------------------
$ 5,401 $ 5,685
========================== ==========================
See accompanying Notes to Consolidated Financial Statements
5
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
(Dollars Stated in Thousands)
NINE MONTHS ENDED SEPTEMBER 30,
2003 2002
----------------------- -----------------------
CASH FLOWS FROM OPERATIONS
Net Income $ 6,464 $ 7,494
----------------------- -----------------------
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization 27,301 25,462
----------------------- -----------------------
Deferred income taxes 4,731 (288)
----------------------- -----------------------
Gain on sale of property (3,665) ---
----------------------- -----------------------
Changes in assets and liabilities:
Trade receivables (78,274) 40,621
----------------------- -----------------------
Merchandise inventory 28,800 101,656
----------------------- -----------------------
Other current assets (6,740) 3,019
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Other assets (5,841) (3,793)
----------------------- -----------------------
Trade accounts payable 63,199 2,560
----------------------- -----------------------
Accrued payroll and benefit costs 12,358 (8,947)
----------------------- -----------------------
Other accrued liabilities 16,223 5,198
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58,092 165,488
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Net cash provided by operations 64,556 172,982
----------------------- -----------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property 6,098 6,034
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Capital expenditures for property (45,436) (41,904)
----------------------- -----------------------
Net cash used by investing activities (39,338) (35,870)
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CASH FLOWS FROM FINANCING ACTIVITIES
Net decrease in short-term borrowings --- (86,846)
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Proceeds from long-term debt --- ---
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Repayment of long-term debt (9,908) (29,276)
----------------------- -----------------------
Principal payments under capital equipment leases (3,836) (3,528)
----------------------- -----------------------
Sale of common stock 380 15,056
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Purchase of treasury stock (5,278) (4,807)
----------------------- -----------------------
Dividends paid (12,203) (11,984)
----------------------- -----------------------
Net cash used by financing activities (30,845) (121,385)
----------------------- -----------------------
NET INCREASE (DECREASE) IN CASH (5,627) 15,727
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CASH, BEGINNING OF YEAR 20,826 10,079
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CASH, END OF THIRD QUARTER $ 15,199 $ 25,806
======================= =======================
See accompanying Notes to Consolidated Financial Statements
6
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
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FOR THE NINE MONTHS ENDED
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SEPTEMBER 30, 2003 AND 2002
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(Dollars Stated in Thousands)
COMMON ACCUMULATED
STOCK OTHER
COMMON PREFERRED SUBSCRIBED, RETAINED COMPREHENSIVE
STOCK STOCK UNISSUED EARNINGS INCOME (LOSS) TOTAL
----------- ------------ --------------- -------------- ------------------ -------------
December 31, 2001 $114,424 $ 51 $ 0 $ 310,521 $ (17,504) $ 407,492
-------------
Net Income 7,494 7,494
Currency Translation Adjustments (246) (246)
Unrealized Gain/(Loss) from
Interest Rate Swap (net of tax
of $1,534) (2,426) (2,426)
-------------
Comprehensive Income 4,822
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Stock Issued 15,004 15,004
Stock Redeemed (4,805) (2) (4,807)
Advance Payments 52 52
Dividends Declared (5,685) (5,685)
----------- ------------ --------------- -------------- ------------------ -------------
September 30, 2002 $124,623 $ 49 $ 52 $ 312,330 $ (20,176) $ 416,878
=========== =========== ================ ============== ================== =============
COMMON ACCUMULATED
STOCK OTHER
COMMON PREFERRED SUBSCRIBED, RETAINED COMPREHENSIVE
STOCK STOCK UNISSUED EARNINGS INCOME (LOSS) TOTAL
----------- ------------ --------------- -------------- ------------------ -------------
December 31, 2002 $123,272 $ 45 $ 50 $ 309,434 $ (44,958) $ 387,843
-------------
Net Income 6,464 6,464
Currency Translation Adjustments 1,654 1,654
Unrealized Gain/(Loss) from
Interest Rate Swap (net of tax
of $34) 260 260
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Comprehensive Income 8,378
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Stock Issued 384 384
Stock Redeemed (5,277) (1) (5,278)
Advance Payments (4) (4)
Dividends Declared (5,401) (5,401)
----------- ------------ --------------- -------------- ------------------ -------------
September 30, 2003 $118,379 $ 44 $ 46 $ 310,497 $ (43,044) $ 385,922
=========== ============ =============== ============== ================== =============
See accompanying Notes to Consolidated Financial Statements
7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AND OTHER INFORMATION
-----------------------------
(Dollars Stated in Thousands)
(Except for Share and Per Share Data)
Note 1
- ------
The condensed financial statements included herein have been
prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain information
and footnote disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations, although the
Company believes that the disclosures are adequate to make the information
presented not misleading. It is suggested that these condensed financial
statements be read in conjunction with the financial statements and the
notes thereto included in the Company's latest annual report on Form 10-K.
In the opinion of the Company, the quarterly report includes all
adjustments, consisting of normal recurring accruals, necessary for the fair
presentation of the financial statements presented. Such interim financial
information is subject to year-end adjustments and independent audit.
Results for interim periods are not necessarily indicative of
results to be expected for the full year.
Certain reclassifications of prior year presentations have been
made to conform to the 2003 presentation.
Note 2
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NINE MONTHS 2003 NINE MONTHS 2002
-------------------------- -------------------------
Earnings for Nine Months $ 6,464 $ 7,494
-------------------------- -------------------------
Dividends on Preferred Stock 2 2
-------------------------- -------------------------
Available for Common Stock $ 6,462 $ 7,492
-------------------------- -------------------------
Average Common Shares Outstanding 6,023,873 6,262,246
-------------------------- -------------------------
Earnings Per Share $ 1.07 $ 1.20
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8
Note 3
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At September 30, 2003 the Company had a $200 million accounts
receivable securitization program that expired in October 2003 and
was subsequently renewed for an additional three-year period with
an expiration date of October 2006. The securitization program
provides for the sale of certain of the Company's trade receivables
on a revolving basis to Graybar Commerce Corporation (GCC), a
wholly owned, bankruptcy remote, special purpose subsidiary. GCC
sells an undivided interest in the receivables to an unrelated
multi-seller commercial paper conduit. The Company accounts for the
securitization as an on-balance sheet financing arrangement because
the Company has maintained effective control of the accounts
receivable through a call option that gives GCC the unilateral
right to repurchase the undivided interests. Accordingly, the
accounts receivable and related debt are included in the
accompanying consolidated balance sheets. GCC has granted a
security interest in its trade receivables to the commercial paper
conduit. There were no borrowings outstanding under the
securitization program at September 30, 2003.
Note 4
- ------
The Company has two operating lease arrangements with an
independent lessor which have provided $63,684 of off-balance sheet
financing for eight of the Company's zone distribution facilities.
Each of the agreements carries a five-year term. The Company has
the option, with the consent of the lenders to the lessor, to renew
the leases for up to two additional five-year terms or to purchase
the property for a price including the outstanding lease balance.
If the Company elects not to renew the lease or purchase the
property, or such lenders refuse to consent to a renewal, the
Company may elect to remarket the property and arrange for its sale
to a third party. In the third quarter 2003, the Company renewed
one of these operating lease agreements. Upon renewal, the Company
recorded a $1,079 liability, the estimated fair value of the
residual value guarantee.
The leasing structures used in these two lease arrangements
qualify as variable interest entities under Interpretation No. 46
and the Company's interests in the variable interest entities are
required to be consolidated in the Company's financial statements
beginning in the fourth quarter of 2004. As of September 30, 2003
the Company's maximum exposure to loss as a result of its
involvement with the two lease arrangements is $54,131, the amount
guaranteed by the Company as the residual fair value of the
property in accordance with the lease arrangements.
Note 5
------
Comprehensive income is reported in the Consolidated
Statements of Changes in Shareholders' Equity. Comprehensive income
for the quarters ended September 30, 2003 and 2002 was $5,529 and
$3,228, respectively.
9
Item 2. MANAGEMENT'S DISCUSSION & ANALYSIS
OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------
(Dollars Stated in Thousands)
RESULTS OF OPERATIONS
- ---------------------
The following table sets forth certain information relating to the
operations of the Company expressed as a percentage of net sales:
Nine Months Ended September 30: 2003 2002
---- ----
Net Sales 100.0% 100.0%
Cost of Merchandise Sold (80.8) (81.5)
---------- ----------
Gross Margin 19.2 18.5
Selling, General and Administrative Expenses (17.4) (16.7)
Depreciation and amortization (1.0) (.8)
---------- ----------
Income from operations .8 1.0
Other Income, net .2 .1
Interest Expense (.6) (.7)
---------- ----------
Income Before Provision for Income Taxes .4 .4
Provision for Income Taxes (.2) (.2)
---------- ----------
Net Income .2% .2%
========== ==========
Net sales in the first nine months of 2003 decreased $191,944, or
6.3%, to $2,835,775 compared to $3,027,719 in the first nine months of 2002.
The lower net sales resulted from the generally depressed economic
conditions that have been prevalent on an industry-wide basis in the
electrical and communications market sectors in which the Company operates.
The general slowdown in new construction projects and the reduction in
capital spending by commercial and industrial customers that began in 2001
has continued throughout 2002 and the first nine months of 2003.
Communications market activity remains severely depressed as a result of
excess infrastructure and plant and network capacity in the marketplace.
Electrical market sales decreased 4.8% and communications market sales
decreased 14.3% when comparing the first nine months of 2003 to the first
nine months of 2002. Net sales for the quarter ending September 30, 2003
increased 1.1% when compared to net sales for the quarter ending September
30, 2002.
Gross margin decreased $16,724, or 3.0%, from $561,321 in the first
nine months of 2002 to $544,597 in the first nine months of 2003 primarily
due to the lower sales in the electrical and communications markets. Gross
margin increased 1.1% when comparing the quarter ending September 30, 2003
to the quarter ending September 30, 2002.
Selling, general and administrative expenses decreased $10,524, or
2.1%, when comparing the first nine months of 2003 to the first nine months
of 2002 primarily due to reductions in the Company's employment levels which
resulted in lower salary expenses of approximately $21,300. The decrease in
these expenses was partially offset by an increase in expenses related to
the implementation of the Enterprise Resource Planning (ERP) system of
approximately $5,700. The Company expects that the decrease in employment
levels will be sustainable until such time as there is a significant growth
in sales.
Depreciation and amortization increased from $25,462 in the first
nine months of 2002 to $27,301 in the first nine months of 2003 primarily
due to additional amortization expenses as a result of the implementation of
the ERP system during the second quarter of 2003.
Other income, net includes gains on sale of property of $3,665 and
$0 and accounts receivable interest charges to customers of $1,241 and
$1,191 in the first nine months of 2003 and the first nine months of 2002,
respectively.
10
MANAGEMENT'S DISCUSSION & ANALYSIS
OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------
(Dollars Stated in Thousands)
RESULTS OF OPERATIONS (Continued)
- ----------------------
Interest expense decreased $3,642, or 17.0%, when comparing the
first nine months of 2003 to the first nine months of 2002 primarily due to
lower interest rates on short-term borrowings.
The combined effect of the decrease in gross margin and the
increase in other income, together with the increase in depreciation and
amortization and decreases in selling, general and administrative expenses
and interest expense, resulted in a decrease in pretax earnings of $1,039 in
the first nine months of 2003 compared to the same period in 2002.
FINANCIAL CONDITION AND LIQUIDITY
- ---------------------------------
At September 30, 2003, current assets exceeded current liabilities
by $414,493, down $31,140 from December 31, 2002. The increase in accounts
receivable from December 31, 2002 to September 30, 2003 resulted primarily
from higher sales volume in August and September of 2003 compared to sales
for November and December of 2002. The average number of days of sales in
accounts receivable has increased slightly during the first nine months of
2003. Merchandise inventory decreased when comparing September 30, 2003 to
December 31, 2002 due largely to continuing reductions in specific inventory
carried to support customer contract agreements and lower inventory levels
required to support the overall decrease in sales volume. The increase in
trade accounts payable resulted primarily from additional dating taken on
supplier payments.
The Company is converting its existing computer systems to an
Enterprise Resource Planning (ERP) system. Implementation of the new system
began in April 2003. The total project costs are expected to be
approximately $98,000. The Company is funding the project through a
combination of equipment leases and working capital. Project costs through
September 30, 2003 are approximately $92,000, of which $75,737 has been
capitalized. The Company expects that conversion to the new ERP system will
provide future benefits to its results of operations. The Company does not
have any other plans or commitments that would require significant amounts
of additional working capital.
At September 30, 2003, the Company had available to it unused lines
of credit amounting to $437,482. These lines are available to meet
short-term cash requirements of the Company. Short-term borrowings
outstanding during 2003 through September 30 ranged from a minimum of $0 to
a maximum of $188,281.
The Company has funded its capital requirements from operations,
stock issuances to its employees and long-term debt. During the first nine
months of 2003, cash provided by operations amounted to $64,556 compared to
$172,982 cash provided by operations in the first nine months of 2002. Cash
provided from the sale of common stock and proceeds received on stock
subscriptions amounted to $380 in the first nine months of 2003. Additional
cash of approximately $129 will be provided in the remainder of 2003 as a
result of payments to be made for stock subscribed to by employees under the
2001 Common Stock Purchase Plan.
11
FINANCIAL CONDITION AND LIQUIDITY (Continued)
- ---------------------------------------------
Capital expenditures for property for the nine-month periods ended
September 30, 2003 and 2002 were $45,436 and $41,904, respectively.
Purchases of treasury stock for the nine-month periods ended September 30,
2003 and 2002 were $5,278 and $4,807, respectively. Dividends paid for the
nine-month periods ended September 30, 2003 and 2002 were $12,203 and
$11,984, respectively.
Item 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
-----------------------------
There have been no material changes in the policies, procedures,
controls or risk profile from that provided in the Company's Annual Report
on Form 10-K for the year ended December 31, 2002.
Item 4. CONTROLS AND PROCEDURES
-----------------------
An evaluation was performed under the supervision and with the
participation of the Company's management of the effectiveness of the design
and operation of the Company's disclosure controls and procedures as of
September 30, 2003. Based on that evaluation, the Company's management,
including the Chief Executive Officer and Chief Financial Officer, concluded
that the Company's disclosure controls and procedures were effective to
ensure that information required to be disclosed in the reports filed or
submitted by the Company under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the Securities
and Exchange Commission's rules and forms. On April 1, 2003, the Company
implemented the first phase of its conversion to a new ERP platform. In
connection therewith, certain of the Company's disclosure controls and
procedures have been modified at certain locations to reflect the new system
environment.
12
PART II: OTHER INFORMATION
--------------------------
Item 6. Exhibits and Reports On Form 8-K
(31) Rule 13a-14(a)/15d-14(a) Certifications
31.1 - Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 - Principal Executive
Officer.
31.2 - Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 - Principal Financial
Officer.
(32) Section 1350 Certifications
32.1 - Certification Pursuant to 18 U.S.C. Section 1350,
as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 - Principal Executive
Officer.
32.2 - Certification Pursuant to 18 U.S.C. Section 1350,
as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 - Principal Financial
Officer.
(b) Reports on Form 8-K.
No reports on Form 8-K have been filed during the
quarter for which this report is filed.
13
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
November 13, 2003 GRAYBAR ELECTRIC COMPANY, INC.
--------------------
(Date)
/S/ R. A. REYNOLDS, JR.
-------------------------------------
R. A. REYNOLDS, JR.
PRESIDENT AND
PRINCIPAL EXECUTIVE OFFICER
/S/ J. H. HINSHAW
-------------------------------------
J. H. HINSHAW
SENIOR VICE PRESIDENT AND
PRINCIPAL FINANCIAL OFFICER
/S/ J. H. KIPPER
-------------------------------------
J. H. KIPPER
VICE PRESIDENT
AND COMPTROLLER
14
EXHIBIT INDEX
-------------
31.1 - Certification Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 - Principal Executive Officer.
31.2 - Certification Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 - Principal Financial Officer.
32.1 - Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 -
Principal Executive Officer.
32.2 - Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 -
Principal Financial Officer.
15