Watsco, Inc. 3Q24 Investor Presentation Safe Harbor Statement This Presentation contains or incorporates by reference statements that are not historical in nature and that are intended to be, and are hereby identified as, "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Statements which are not historical in nature, including the words "anticipate," "estimate," "could," "should," "may," "plan," "seek," "expect," "believe," "intend," "target," "will," "project, ...

Watsco, Inc. 4Q24 Investor Presentation Safe Harbor Statement This Presentation contains or incorporates by reference statements that are not historical in nature and that are intended to be, and are hereby identified as, "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Statements which are not historical in nature, including the words "anticipate," "estimate," "could," "should," "may," "plan," "seek," "expect," "believe," "intend," "target," "will," "project, ...

Watsco, Inc. 1Q25 Investor Presentation Safe Harbor Statement This Presentation contains or incorporates by reference statements that are not historical in nature and that are intended to be, and are hereby identified as, "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Statements which are not historical in nature, including the words "anticipate," "estimate," "could," "should," "may," "plan," "seek," "expect," "believe," "intend," "target," "will," "project, ...

This Presentation contains or incorporates by reference statements that are not historical in nature and that are intended to be, and are hereby identified as, "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Statements which are not historical in nature, including the words "anticipate," "estimate," "could," "should," "may," "plan," "seek," "expect," "believe," "intend," "target," "will," "project," "focused," "outlook", "goal", "designed" and variations of t ...

Financial Performance - Revenues for Q1 2025 were $1,531.1 million, a decrease of 2% compared to $1,565.0 million in Q1 2024[87] - Gross profit margin improved to 28.1% in Q1 2025 from 27.5% in Q1 2024, while operating income decreased to 7.3% from 8.1%[83] - Net income attributable to Watsco, Inc. was 5.2% in Q1 2025, down from 5.6% in Q1 2024[83] - Same-store sales for the quarter ended March 31, 2025, were $1,522.6 million, a decrease of 2% compared to $1,559.7 million in 2024[88] - Gross profit for the quarter was $429.6 million, with a gross margin of 28.1%, an increase of 60 basis points from 27.5% in 2024[89][90] - Net income attributable to Watsco decreased by $6.9 million, or 8%, to $79.5 million for the quarter ended March 31, 2025[95] - Cash flows used in operating activities were $(177.6) million, a decrease of $281.3 million compared to $103.7 million provided in 2024[102] Expenses and Costs - Selling, general and administrative expenses increased to 21.1% of revenues in Q1 2025 from 19.8% in Q1 2024[83] - Selling, general and administrative expenses rose to $322.6 million, a 4% increase from $309.5 million in 2024, with expenses as a percentage of revenues increasing to 21.1%[91] Acquisitions and Investments - On May 1, 2025, the company acquired Southern Ice Equipment Distributors, Inc. for $14.3 million in cash and $3.4 million in Common stock[117] - The company also acquired Hawkins HVAC Distributors, Inc. on April 1, 2025, for $2.5 million in cash[118] - Carrier Enterprise I acquired W.L. Lashley & Associates, Inc. for a total consideration of $4.0 million, resulting in $3.1 million in goodwill[119] - A wholly owned subsidiary acquired Commercial Specialists, Inc. for $6.0 million in cash, leading to $2.5 million in goodwill recognition[120] - The company is actively evaluating potential acquisitions and joint ventures, indicating a strong financial position for future financing[121] Cash and Shareholder Returns - The company had $431.8 million in cash and cash equivalents as of March 31, 2025, with $131.7 million held by foreign subsidiaries[99] - Working capital increased to $2,110.2 million at March 31, 2025, up from $2,096.1 million at December 31, 2024[101] - The company paid cash dividends of $2.70 and $2.45 per share on common stock for the three months ended March 31, 2025 and 2024, respectively[122] - A regular quarterly cash dividend of $3.00 per share was declared on April 1, 2025, payable on April 30, 2025[122] - The Dividend Reinvestment Plan (DRIP) allows shareholders to acquire up to 300,000 shares by reinvesting cash dividends, with 13,942 shares issued under the DRIP during Q1 2025[123] - The company has repurchased a total of 6,370,913 shares at a cost of $114.4 million since the inception of the share repurchase program[124] - As of March 31, 2025, there are 1,129,087 shares remaining authorized for repurchase under the program[124] Market and Regulatory Environment - The company anticipates increased demand for higher-efficiency products due to the U.S. Inflation Reduction Act of 2022, which promotes energy-efficient HVAC systems[79] - The company has a focus on the HVAC replacement market, which is expected to stabilize sales amid tariff-related uncertainties[72] - The company continues to monitor macroeconomic trends and uncertainties related to tariffs and their potential impact on product costs and sales[72] - The company is transitioning inventory to lower-GWP HVAC systems in response to new regulations on refrigerants, with a phasedown of HFC production starting January 1, 2022[76] - An estimated 23.7 million metric tons of CO2e emissions were averted from January 1, 2020, to March 31, 2025, through the sale of higher-efficiency HVAC systems[78] - There have been no material changes to market risk disclosures since the last annual report[125] Interest Income - Interest income, net for the first quarter of 2025 increased by $2.9 million, or 119%, compared to the same period in 2024[93]

Core Viewpoint - The Schall Law Firm is investigating Watsco, Inc. for potential violations of securities laws related to misleading statements and undisclosed information affecting investors [1][2]. Financial Performance - Watsco reported a 2% year-over-year revenue decline for Q1 2025, missing consensus estimates [2]. - The company attributed its results to a large-scale product transition due to regulatory changes effective January 1, 2025, impacting approximately 55% of its sales and converting nearly $1 billion of inventory throughout the year [2]. - Following the announcement, Watsco's shares fell by 11% on the same day [2].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Watsco, Inc. and its officers or directors, following disappointing financial results and a significant stock price drop [1][3]. Financial Performance - Watsco reported first-quarter 2025 revenue of $1.53 billion, which is a 2% decline year-over-year and below consensus estimates [3]. - The company indicated that the results are influenced by a large-scale product transition due to regulatory changes effective January 1, 2025, impacting approximately 55% of its sales and expected to convert nearly $1 billion of inventory throughout the year [3]. - Following the announcement, Watsco's stock price decreased by $56.76 per share, or 11.28%, closing at $446.40 per share on April 23, 2025 [3].

Core Viewpoint - Watsco, Inc. has completed the acquisition of Southern Ice Equipment Distributors and two other companies, enhancing its distribution network and annualized sales in high-growth Sunbelt markets [1][3]. Company Overview - Watsco, Inc. operates the largest distribution network for HVAC/R products across the U.S., Canada, Mexico, and Puerto Rico, with over 702 locations [5]. - The company focuses on the replacement market, which is growing due to aging systems and the need for energy-efficient models [6]. Acquisitions - The acquisition of Southern Ice, along with two other transactions, adds 10 new locations and approximately $47 million in annualized sales [3][9]. - Southern Ice, founded in 1984, is a leading distributor in food-service and commercial refrigeration, operating in key Sunbelt markets [2]. Environmental Impact - Watsco has contributed to reducing CO2e emissions by an estimated 23.7 million metric tons from January 2020 to March 2025 through the sale of higher-efficiency HVAC systems [8]. - The company plays a significant role in lowering household energy consumption, as HVAC systems account for about half of U.S. household energy use [7]. Strategic Goals - Watsco aims to identify and partner with strong businesses in the HVAC/R industry, support their growth, and leverage technology for innovation [10].

NEW YORK, April 29, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of  Watsco, Inc. (“Watsco” or the “Company”) (NYSE: WSO). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Watsco and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On April 23, 2025, Wats ...

NEW YORK, April 25, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Watsco, Inc. (“Watsco” or the “Company”) (NYSE: WSO). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Watsco and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On April 23, 2025, Watsc ...