Continued Customer Adoption of Industry-Leading Technologies Helps Drive Share Gains; Debt-Free Balance Sheet Supports Long-Term Investment and Growth A cornerstone of Watsco's growth strategy is the acquisition of long-standing, family-owned businesses. Watsco has completed 69 acquisitions, achieving industry-leading scale and preserving many wonderful business legacies into future generations. Over the last five years, Watsco has acquired eight businesses that today generate approximately $1 billion in an ...

Continued Customer Adoption of Industry-Leading Technologies Helps Drive Share Gains; Debt-Free Balance Sheet Supports Long-Term Investment and Growth Since entering distribution in 1989, Watsco's operating profits have grown at a compounded annual growth rate (CAGR) of 18% and dividends have grown at a 21% CAGR. These long-term growth rates are indicative of strong and consistent performance across most macroeconomic and industry cycles. Second Quarter Results 8% increase in HVAC equipment (71% of sales) 1 ...

Continued Customer Adoption of Industry-Leading Technologies Helps Drive Share Gains; Debt-Free Balance Sheet Supports Long-Term Investment and Growth MIAMI, July 30, 2024 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced its operating results for the second quarter and six-month period ended June 30, 2024. Commentary was also provided on business trends, growth opportunities, technology innovation and its financial position. Watsco is the largest distributor in the highly fragmented $64 billion North ...

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. Estimate Revisions Trend The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower. This heating and cooling company is e ...

Company Overview - Watsco, Inc. operates the largest distribution network for heating, air conditioning, and refrigeration (HVAC/R) products across the United States, Canada, Mexico, and Puerto Rico, with additional export operations to Latin America and the Caribbean [5] - The company has 691 locations that serve over 375,000 owner-operators, technicians, and installers annually, providing information, technical support, and product sales [5] Market Focus - Watsco focuses on the replacement market, which is growing due to the aging of installed HVAC systems, the introduction of more energy-efficient models, and the essential nature of HVAC products in residential and commercial settings [6] - Approximately 102 million HVAC systems in the U.S. are over 10 years old and operate below current efficiency standards, indicating a significant opportunity for replacement [6] Environmental Impact - Watsco plays a crucial role in addressing climate change by contributing to the reduction of CO2e emissions through the sale of higher-efficiency HVAC systems [7] - HVAC systems account for about half of U.S. household energy consumption, making the replacement of older systems a vital strategy for reducing electricity use and carbon footprints [7] - From January 1, 2020, to June 30, 2024, Watsco is estimated to have averted 20.9 million metric tons of CO2e emissions, equivalent to removing 5 million gas-powered vehicles from the road annually [8]

Company Overview - Watsco, Inc. operates the largest distribution network for heating, air conditioning, and refrigeration (HVAC/R) products across the United States, Canada, Mexico, and Puerto Rico, with additional exports to Latin America and the Caribbean [4] - The company has 691 locations that serve over 375,000 owner-operators, technicians, and installers annually, providing information, technical support, and product sales [4] Market Insights - The replacement market for HVAC systems is growing due to the aging of installed systems, the introduction of more energy-efficient models, and the essential nature of HVAC products in residential and commercial settings [2] - Approximately 102 million HVAC systems in the U.S. have been in service for over 10 years, many of which operate below current minimum efficiency standards [2] Environmental Impact - Watsco has contributed to a significant reduction in CO2e emissions, averting an estimated 20.9 million metric tons from January 1, 2020, to June 30, 2024, through the sale of higher-efficiency replacement HVAC systems [5] - This reduction is equivalent to removing 5.0 million gas-powered vehicles from the road annually [5] - HVAC systems account for roughly half of U.S. household energy consumption, making the replacement of older systems with higher efficiency models critical for reducing electricity consumption and carbon footprints [8] Upcoming Events - Watsco will host a conference call on July 30, 2024, at 10:00 a.m. (EDT) to discuss its second-quarter results, with prepared remarks followed by a Q&A session [1][6] - Investors and analysts are encouraged to pre-register for the call to receive a unique PIN for immediate access [3]

We focus on the replacement market, which has increased in size and importance as a result of the aging of installed systems, the introduction of higher energy efficient models and the necessity of HVAC products in homes and businesses. According to data published in March 2023 by the Energy Information Administration, there are approximately 102 million HVAC systems installed in the United States that have been in service for more than 10 years, most of which operate well below current minimum efficiency s ...

MIAMI, July 01, 2024 (GLOBE NEWSWIRE) -- Watsco, Inc.'s (NYSE: WSO) Board of Directors has declared a regular quarterly cash dividend of $2.70 on each outstanding share of its Common and Class B common stock payable on July 31, 2024 to shareholders of record at the close of business on July 16, 2024. Watsco has paid dividends to shareholders for 50 consecutive years. The Company's philosophy is to share cash flow through dividends while maintaining a conservative balance sheet with continued capacity to bui ...

Financial Performance - Revenues for Q1 2024 were $1,565.0 million, a 1% increase from $1,550.6 million in Q1 2023, with $51.4 million attributed to new locations acquired[83] - Same-store sales decreased by 2%, from $1,549.8 million in Q1 2023 to $1,512.5 million in Q1 2024[84] - Gross profit for Q1 2024 was $430.6 million, down 4% from $448.2 million in Q1 2023, resulting in a gross margin decline to 27.5% from 28.9%[85] - Selling, general and administrative expenses increased by 8% to $309.5 million in Q1 2024, with expenses as a percentage of revenues rising to 19.8% from 18.5%[86] - Operating income for Q1 2024 was $126.5 million, a decrease from $164.0 million in Q1 2023, leading to an operating margin of 8.1% compared to 10.6%[78] - Net income attributable to Watsco, Inc. for Q1 2024 was $87.6 million, or 5.6% of revenues, down from $109.0 million, or 7.1% of revenues in Q1 2023[78] - Net income attributable to Watsco for Q1 2024 decreased by $23.1 million, or 21%, compared to Q1 2023, primarily due to lower gross profit and higher selling, general, and administrative expenses[90] Cash Flow and Working Capital - Cash flows provided by operating activities increased by $151.1 million, from $(47.4) million in Q1 2023 to $103.7 million in Q1 2024[97] - Working capital increased to $1,972.2 million as of March 31, 2024, up from $1,679.9 million at December 31, 2023, driven by higher inventory and accounts receivable[96] - The company had $278.9 million in cash and cash equivalents as of March 31, 2024, with $176.1 million held by foreign subsidiaries[94] Investments and Acquisitions - The company acquired 16 locations in the past year, bringing the total number of locations to 691 as of March 31, 2024[82] - The company acquired CSI, a distributor of HVAC products, for a total consideration of $6.0 million in cash and stock, and GWS, a plumbing and HVAC distributor, for a net purchase price of $4.0 million in cash and stock[109][110] - Cash flows used in investing activities increased by $200.5 million, primarily due to the purchase of $200.0 million in short-term cash investments in 2024[99] Tax and Dividends - The effective income tax rate decreased from 23.3% in Q1 2023 to 21.8% in Q1 2024, attributed to higher share-based compensation deductions[89] - The company paid cash dividends of $2.45 per share during both Q1 2024 and Q1 2023, with a new dividend of $2.70 declared for April 2024[113] Interest and Environmental Impact - Interest income for Q1 2024 increased by 502% to $3.1 million, primarily due to higher interest earned on cash and short-term investments[88] - The company averted an estimated 20.1 million metric tons of CO2e emissions from January 1, 2020, to March 31, 2024, through the sale of higher-efficiency HVAC systems[72] - The U.S. Inflation Reduction Act of 2022 is expected to increase demand for high-efficiency products, with $4.3 billion allocated for state-administered consumer rebate programs[73] Stock and Credit Facilities - The company issued and sold 712,000 shares of Common stock under the ATM Program for net proceeds of $281.8 million during Q1 2024[104] - The company maintains a $600.0 million revolving credit agreement, with no outstanding balance as of March 31, 2024[102]

Exhibit 99.1 Watsco Reports Record First Quarter Sales, Record Cash Flow and Improving Business Trends Ahead of Summer Selling Season Continued Customer Adoption of Industry-Leading Technologies Drives Share Gains; Company Strengthens Balance Sheet for Long-Term Investment and Growth MIAMI, FLORIDA – (GLOBENEWSWIRE), April 24, 2024 – Watsco, Inc. (NYSE: WSO) announced its operating results for the first quarter ended March 31, 2024 and provided commentary on business trends, growth opportunities, technology ...