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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, 2004
------------------------------------
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
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(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
---------------------
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
----- -----
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
----- -----
Common Stock Outstanding at October 31, 2004: 5,615,268
----------------------
(Number of Shares)
Item 1. Financial Statements PART I
------
CONSOLIDATED BALANCE SHEETS
---------------------------
(Dollars Stated in Thousands)
(Except for Share and Per Share Data)
SEPTEMBER 30, 2004 DECEMBER 31, 2003
----------------------------- -------------------------
CURRENT ASSETS
Cash $ 5,367 $ 19,161
----------------------------- -------------------------
Trade receivables 647,565 556,967
----------------------------- -------------------------
Merchandise inventory 489,128 483,333
----------------------------- -------------------------
Other current assets 17,885 17,815
----------------------------- -------------------------
Total current assets 1,159,945 1,077,276
----------------------------- -------------------------
PROPERTY
Land 30,066 27,092
----------------------------- -------------------------
Buildings and permanent fixtures 242,878 237,840
----------------------------- -------------------------
Furniture and fixtures 163,760 163,932
----------------------------- -------------------------
Software 76,906 76,339
----------------------------- -------------------------
Capital leases 23,987 23,987
----------------------------- -------------------------
Less-Accumulated depreciation 245,604 223,585
----------------------------- -------------------------
Net property 291,993 305,605
----------------------------- -------------------------
DEFERRED FEDERAL INCOME TAXES 3,772 10,402
----------------------------- -------------------------
OTHER ASSETS 27,256 28,847
----------------------------- -------------------------
$ 1,482,966 $ 1,422,130
============================= =========================
CURRENT LIABILITIES
Short-term borrowings $ 72,594 $ ---
----------------------------- -------------------------
Current portion of long-term debt 46,188 22,872
----------------------------- -------------------------
Trade accounts payable 507,530 536,179
----------------------------- -------------------------
Other accrued taxes 14,812 13,684
----------------------------- -------------------------
Accrued payroll and benefit costs 45,341 36,292
----------------------------- -------------------------
Dividends payable --- 6,469
----------------------------- -------------------------
Other payables and accruals 67,294 45,168
----------------------------- -------------------------
Total current liabilities 753,759 660,664
----------------------------- -------------------------
POSTRETIREMENT BENEFITS LIABILITY 78,536 77,636
----------------------------- -------------------------
PENSION LIABILITY 40,895 40,895
----------------------------- -------------------------
LONG TERM DEBT 215,480 254,381
----------------------------- -------------------------
OTHER NON-CURRENT LIABILITIES 809 971
----------------------------- -------------------------
2
CONSOLIDATED BALANCE SHEETS
---------------------------
(Dollars Stated in Thousands)
(Except for Share and Per Share Data)
SEPTEMBER 30, 2004 DECEMBER 31, 2003
------------------------- -------------------------
SHAREHOLDERS' EQUITY
CAPITAL STOCK
Preferred:
----------
Par value $20 per share
Authorized 300,000 shares
SHARES
------
2004 2003
---- ----
Issued to shareholders 2,173 2,173
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In treasury, at cost (2,173) (52)
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Outstanding 0 2,121 0 43
------------- ------------- ------------------------- -------------------------
Common:
-------
Stated value $20 per share
Authorized 15,000,000 shares
SHARES
------
2004 2003
---- ----
Issued to voting trustees 5,626,006 5,609,313
------------- -------------
Issued to shareholders 290,441 290,389
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In treasury, at cost (273,946) (28,343)
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Outstanding 5,642,501 5,871,359 112,850 117,427
------------- ------------- ------------------------- -------------------------
Advance payments on subscriptions
to common stock 40 45
------------------------- -------------------------
Retained earnings 315,709 306,030
------------------------- -------------------------
Accumulated other comprehensive income (loss) (35,112) (35,962)
------------------------- -------------------------
TOTAL SHAREHOLDERS' EQUITY 393,487 387,583
------------------------- -------------------------
$ 1,482,966 $ 1,422,130
========================= =========================
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, 2004 SEPTEMBER 30, 2003
-------------------------- --------------------------
GROSS SALES, net of returns and allowances $ 1,076,462 $ 1,027,120
-------------------------- --------------------------
Less - Cash discounts 3,980 2,671
-------------------------- --------------------------
NET SALES 1,072,482 1,024,449
-------------------------- --------------------------
COST OF MERCHANDISE SOLD 872,641 833,478
-------------------------- --------------------------
Gross margin 199,841 190,971
-------------------------- --------------------------
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 177,923 169,084
-------------------------- --------------------------
DEPRECIATION AND AMORTIZATION 8,757 9,516
-------------------------- --------------------------
Income from operations 13,161 12,371
-------------------------- --------------------------
OTHER INCOME, net 829 1,732
-------------------------- --------------------------
INTEREST EXPENSE 5,766 6,049
-------------------------- --------------------------
Income before provision for income taxes 8,224 8,054
-------------------------- --------------------------
PROVISION FOR INCOME TAXES
Current 497 (565)
-------------------------- --------------------------
Deferred 3,131 4,010
-------------------------- --------------------------
Total provision for income taxes 3,628 3,445
-------------------------- --------------------------
NET INCOME $ 4,596 $ 4,609
========================== ==========================
NET INCOME PER SHARE OF COMMON STOCK $ .81 $ .77
========================== ==========================
DIVIDENDS
Preferred - $.25 per share $ --- $ 1
-------------------------- --------------------------
Common - $.30 per share 1,694 1,780
-------------------------- --------------------------
$ 1,694 $ 1,781
========================== ==========================
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, 2004 SEPTEMBER 30, 2003
-------------------------- --------------------------
GROSS SALES, net of returns and allowances $ 3,062,422 $ 2,843,767
-------------------------- --------------------------
Less - Cash discounts 9,722 7,992
-------------------------- --------------------------
NET SALES 3,052,700 2,835,775
-------------------------- --------------------------
COST OF MERCHANDISE SOLD 2,457,401 2,291,178
-------------------------- --------------------------
Gross margin 595,299 544,597
-------------------------- --------------------------
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 527,000 494,721
-------------------------- --------------------------
DEPRECIATION AND AMORTIZATION 27,364 27,301
-------------------------- --------------------------
Income from operations 40,935 22,575
-------------------------- --------------------------
OTHER INCOME, net 2,332 6,390
-------------------------- --------------------------
INTEREST EXPENSE 17,698 17,820
-------------------------- --------------------------
Income before provision for income taxes 25,569 11,145
-------------------------- --------------------------
PROVISION FOR INCOME TAXES
Current 4,133 (50)
-------------------------- --------------------------
Deferred 6,606 4,731
-------------------------- --------------------------
Total provision for income taxes 10,739 4,681
-------------------------- --------------------------
NET INCOME $ 14,830 $ 6,464
========================== ==========================
NET INCOME PER SHARE OF COMMON STOCK (NOTE 2) $ 2.58 $ 1.07
========================== ==========================
DIVIDENDS
Preferred - $.25 per share $ 1 $ 2
-------------------------- --------------------------
Common - $.90 per share 5,150 5,399
-------------------------- --------------------------
$ 5,151 $ 5,401
========================== ==========================
See accompanying Notes to Consolidated Financial Statements
5
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
(Dollars Stated in Thousands)
NINE MONTHS ENDED SEPTEMBER 30,
2004 2003
-------------------------- --------------------------
CASH FLOWS FROM OPERATIONS
Net Income $ 14,830 $ 6,464
-------------------------- --------------------------
Adjustments to reconcile net income to cash provided (used) by
operations:
Depreciation and amortization 27,364 27,301
-------------------------- --------------------------
Deferred income taxes 6,606 4,731
-------------------------- --------------------------
Gain on sale of property --- (3,665)
-------------------------- --------------------------
Changes in assets and liabilities:
Trade receivables (90,598) (78,274)
-------------------------- --------------------------
Merchandise inventory (5,795) 28,800
-------------------------- --------------------------
Other current assets (70) (6,740)
-------------------------- --------------------------
Other assets 1,591 (5,841)
-------------------------- --------------------------
Trade accounts payable (28,649) 63,199
-------------------------- --------------------------
Accrued payroll and benefit costs 9,049 12,358
-------------------------- --------------------------
Other accrued liabilities 24,866 16,223
-------------------------- --------------------------
(55,636) 58,092
-------------------------- --------------------------
Net cash provided (used) by operations (40,806) 64,556
-------------------------- --------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property 68 6,098
-------------------------- --------------------------
Capital expenditures for property (13,820) (45,436)
-------------------------- --------------------------
Net cash used by investing activities (13,752) (39,338)
-------------------------- --------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in short-term borrowings 72,594 ---
-------------------------- --------------------------
Proceeds from long-term debt --- ---
-------------------------- --------------------------
Repayment of long-term debt (13,520) (9,908)
-------------------------- --------------------------
Principal payments under capital equipment leases (2,065) (3,836)
-------------------------- --------------------------
Sale of common stock 330 380
-------------------------- --------------------------
Purchase of treasury stock (4,955) (5,278)
-------------------------- --------------------------
Dividends paid (11,620) (12,203)
-------------------------- --------------------------
Net cash provided (used) by financing activities 40,764 (30,845)
-------------------------- --------------------------
NET DECREASE IN CASH (13,794) (5,627)
-------------------------- --------------------------
CASH, BEGINNING OF YEAR 19,161 20,826
-------------------------- --------------------------
CASH, END OF THIRD QUARTER $ 5,367 $ 15,199
========================== ==========================
See accompanying Notes to Consolidated Financial Statements
6
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
----------------------------------------------------------
FOR THE NINE MONTHS ENDED
-------------------------
SEPTEMBER 30, 2004 AND 2003
---------------------------
(Dollars Stated in Thousands)
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
---------------
Comprehensive Income 8,378
---------------
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
============= ============== ================ ============== =================== ===============
COMMON ACCUMULATED
STOCK OTHER
COMMON PREFERRED SUBSCRIBED, RETAINED COMPREHENSIVE
STOCK STOCK UNISSUED EARNINGS INCOME (LOSS) TOTAL
------------- -------------- ---------------- -------------- ------------------- ---------------
December 31, 2003 $ 117,427 $ 43 $ 45 $ 306,030 $ (35,962) $ 387,583
---------------
Net Income 14,830 14,830
Currency Translation Adjustments 818 818
Unrealized Gain/(Loss) from
Interest Rate Swap (net of tax
of $21) 32 32
---------------
Comprehensive Income 15,680
---------------
Stock Issued 335 335
Stock Redeemed (4,912) (43) (4,955)
Advance Payments (5) (5)
Dividends Declared (5,151) (5,151)
------------- -------------- ---------------- -------------- ------------------- ---------------
September 30, 2004 $ 112,850 $ 0 $ 40 $ 315,709 $ (35,112) $ 393,487
============= ============== ================ ============== =================== ===============
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 2004 presentation.
Note 2
- ------
NINE MONTHS 2004 NINE MONTHS 2003
-------------------------- -------------------------
Earnings for Nine Months $ 14,830 $ 6,464
-------------------------- -------------------------
Dividends on Preferred Stock 1 2
-------------------------- -------------------------
Available for Common Stock $ 14,829 $ 6,462
-------------------------- -------------------------
Average Common Shares Outstanding 5,747,729 6,023,873
-------------------------- -------------------------
Earnings Per Share $ 2.58 $ 1.07
-------------------------- -------------------------
Note 3
- ------
At September 30, 2004 the Company had a $200 million accounts
receivable securitization program that expires in 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. Borrowings outstanding under the securitization program
were $50,000 and $0 at September 30, 2004 and December 31, 2003,
respectively.
8
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. The Company has recorded a $809 liability for the
estimated fair value of the residual value guarantee for one of
these operating lease agreements which was renewed in 2003.
The leasing structures used in these two lease arrangements
qualify as variable interest entities under FASB 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 first quarter of 2005. As of September
30, 2004 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
- ------
The Company has elected to defer accounting for the effects
of the Medicare Prescription Drug, Improvement and Modernization
Act of 2003 in accordance with FASB Staff Position (FSP) No. FAS
106-2. The accumulated postretirement benefit obligation and the
net periodic postretirement benefit cost do not currently reflect
the accounting impact of the Act since the Company is currently
unable to determine whether the benefits provided by its plan are
actuarially equivalent to Medicare Part D under the Act.
Note 6
- ------
Comprehensive income is reported in the Consolidated
Statements of Changes in Shareholders' Equity. Comprehensive income
for the quarters ended September 30, 2004 and 2003 was $4,731 and
$5,529, respectively.
Note 7
- ------
During the nine months ended September 30, 2004, the Company
made contributions totaling $20,700 to its defined benefit pension
plan. Additional contributions totaling $7,500 are expected to be
paid during the remainder of 2004.
Note 8
- ------
The Company recorded additional pension expense of
approximately $15.1 million in the third quarter 2004 due to
settlement of a portion of its defined benefit plan obligations as
a result of increased election of lump sum payouts by retirees
under the standard terms of the plan.
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: 2004 2003
---- ----
Net Sales 100.0% 100.0%
Cost of Merchandise Sold (80.5) (80.8)
---------- ----------
Gross Margin 19.5 19.2
Selling, General and Administrative Expenses (17.3) (17.4)
Depreciation and amortization (.9) (1.0)
---------- ----------
Income from operations 1.3 .8
Other Income, net .1 .2
Interest Expense (.6) (.6)
---------- ----------
Income Before Provision for Income Taxes .8 .4
Provision for Income Taxes (.3) (.2)
---------- ----------
Net Income .5% .2%
========== ==========
Net sales in the first nine months of 2004 increased $216,925, or
7.6%, to $3,052,700 compared to $2,835,775 in the first nine months of 2003.
The higher net sales resulted from the generally improved economic
conditions that are prevalent on an industry-wide basis in the electrical
and communications market sectors in which the Company operates. The
Company's business in the electrical market improved significantly during
the first nine months of 2004 as a result of the general increase in new
construction projects along with increased spending by commercial and
industrial customers. Communications market sales showed modest improvement
during the first nine months of 2004. Activity in the communications market
served by the Company continued to be impacted by the lingering effects of
the excess of infrastructure and plant and network capacity in the
communications marketplace. Electrical market sales increased 10.4% and
communications market sales increased .6% when comparing the first nine
months of 2004 to the first nine months of 2003.
Gross margin increased $50,702, or 9.3%, from $544,597 in the first
nine months of 2003 to $595,299 in the first nine months of 2004 primarily
due to the increased sales in the electrical and communications markets.
Selling, general and administrative expenses increased $32,279, or
6.5%, when comparing the first nine months of 2004 to the first nine months
of 2003 due largely to increases in employee compensation costs of
approximately $8,500 and an increase in pension plan expense of
approximately $18,100. The substantial increase in pension plan expense
resulted primarily from increased payouts made under the standard terms of
the Company's defined benefit pension plan during the first three quarters
of 2004.
Depreciation and amortization was generally flat when comparing the
first nine months of 2004 to the first nine months of 2003.
Other income, net includes gains on sale of property of $0 and
$3,665 and accounts receivable interest charges to customers of $1,584 and
$1,241 in the first nine months of 2004 and the first nine months of 2003,
respectively.
Interest expense decreased $122 when comparing the first nine
months of 2004 to the first nine months of 2003 primarily due to lower
interest rates on short-term borrowings.
10
MANAGEMENT'S DISCUSSION & ANALYSIS
OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------
(Dollars Stated in Thousands)
RESULTS OF OPERATIONS (Continued)
- ---------------------
The combined effect of the increase in gross margin and the
decrease in other income, together with the increases in selling, general
and administrative expenses and depreciation and amortization and the
decrease in interest expense, resulted in an increase in pretax earnings of
$14,424 in the first nine months of 2004 compared to the same period in
2003.
FINANCIAL CONDITION AND LIQUIDITY
- ---------------------------------
At September 30, 2004, current assets exceeded current liabilities
by $406,186, down $10,426 from December 31, 2003. The increase in accounts
receivable from December 31, 2003 to September 30, 2004 resulted primarily
from the increase in sales experienced by the Company. Merchandise inventory
increased when comparing September 30, 2004 to December 31, 2003 due largely
to higher inventory levels required to support the overall increase in sales
volume.
The Company is converting its existing computer systems to an
Enterprise Resource Planning (ERP) system. Implementation of the new system
began in April 2003 and was completed in October 2004. The Company is
funding the project through a combination of equipment leases and working
capital. Project costs through September 30, 2004 were approximately
$100,000, of which $76,906 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, 2004, the Company had available to it unused lines
of credit amounting to $246,723. These lines are available to meet
short-term cash requirements of the Company. Short-term borrowings
outstanding during 2004 through September 30 ranged from a minimum of $0 to
a maximum of $192,223.
The Company has funded its capital requirements from operations,
stock issuances to its employees and long-term debt. During the first nine
months of 2004, cash used by operations amounted to $40,806 compared to
$64,556 cash provided by operations in the first nine months of 2003. Cash
provided from the sale of common stock and proceeds received on stock
subscriptions amounted to $330 in the first nine months of 2004.
Capital expenditures for property for the nine-month periods ended
September 30, 2004 and 2003 were $13,820 and $45,436, respectively.
Purchases of treasury stock for the nine-month periods ended September 30,
2004 and 2003 were $4,955 and $5,278, respectively. Dividends paid for the
nine-month periods ended September 30, 2004 and 2003 were $11,620 and
$12,203, respectively.
11
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 Item 7A, "Quantitative and
Qualitative Disclosures About Market Risk", of the Company's Annual Report
on Form 10-K for the year ended December 31, 2003.
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, 2004. 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. On
April 1, 2003, the Company began implementation of its conversion to a new
ERP platform and continued implementation to various locations throughout
2004. 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
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits furnished in accordance with provisions of Item 601
of Regulation S-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 12, 2004 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 CONTROLLER
14