Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2022 or ☐ Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission file number 1-5581 I.R.S. Employer Identification Number 59-0778222 WATSCO, INC. (a Florida Corporation) 2665 South Bayshore Drive, Suite ...

Financial Data and Key Metrics Changes - Earnings per share increased by 33% to a record $4.93 for the quarter, with sales growing 15% to a record $2.13 billion, marking the first $2 billion quarter [6] - Operating income rose 32% to a record $287 million, with margins expanding 180 basis points to a record 13.5% [6][7] - For the first half of the year, earnings per share increased by 53% to a record $7.83, with a 22% increase in sales [7] Business Line Data and Key Metrics Changes - The company reported strong same-store sales growth of 29% in the previous year, indicating robust performance against tough comparisons [7] - Current trends show meaningful unit growth and additional price capture as inflation persists in the industry [8] Market Data and Key Metrics Changes - The company noted significant growth in the Southeast and Southwest regions, with substantial increases in demand compared to the previous year [46] - Unit sales in early July were reported to be up mid to high single digits [50] Company Strategy and Development Direction - The company is focusing on productivity and operating efficiencies to sustain growth and build market share despite challenges in the supply chain [9] - Regulatory changes, such as the increase in minimum federal SEER standards in 2023, are expected to create growth opportunities [14][15] - The company is investing in technology to enhance customer engagement and reduce attrition, which is expected to yield long-term benefits [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2023, citing regulatory changes and the necessity of HVAC products in key markets as drivers of demand [14][105] - The company acknowledged potential economic slowdowns and higher interest rates but remains focused on capturing market opportunities [8][9] - Management emphasized the importance of consumer financing options to facilitate purchases in a potentially inflationary environment [78] Other Important Information - The company maintains a strong balance sheet with minimal debt, allowing for continued investment in growth [16] - There is an ongoing focus on improving SG&A efficiency as the company adapts to changing market conditions [35][118] Q&A Session Summary Question: Update on gross margins and digital pricing optimization - Management highlighted the importance of technology in managing pricing amidst multiple price increases from manufacturers, indicating that the tools have eased administrative burdens and created opportunities for price optimization [25][26] Question: Sales trends exiting the quarter and into July - Management reported a strong increase in demand in July, particularly in the Southeast and Southwest regions, with unit sales up mid to high single digits [46][50] Question: Impact of SEER changes on pricing mix in 2023 - Management indicated that a significant portion of equipment sales would see mid-teen price increases due to regulatory changes, suggesting a meaningful price mix benefit in 2023 [54][56] Question: Concerns about potential consumer pushback on pricing - Management noted that there has been no significant pushback on pricing to date, attributing strong demand to the necessity of HVAC products [72] Question: Outlook for 2023 and potential slowing demand - Management clarified that while new construction sales may be impacted, overall demand remains strong, and they are optimistic about continued growth in 2023 [99][105] Question: SG&A growth in relation to revenue growth - Management acknowledged that SG&A has grown in line with sales but emphasized the need for improved efficiency and productivity moving forward [116][118]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2022 or ☐ Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission file number 1-5581 I.R.S. Employer Identification Number 59-0778222 WATSCO, INC. (a Florida Corporation) 2665 South Bayshore Drive, Suite ...

Watsco, Inc. (NYSE:WSO) Q1 2022 Earnings Conference Call April 21, 2022 10:00 AM ET Company Participants Albert Nahmad - Chairman and Chief Executive Officer Aaron Nahmad - President Paul Johnston - Executive Vice President Barry Logan - Executive Vice President of Planning & Strategy and Secretary Rick Gomez - Vice President of Corporate Development Conference Call Participants Thomas Moll - Stephens Inc. Jeffrey Sprague - Vertical Research Partners, LLC Jeffrey Hammond - KeyBanc Capital Markets Inc. Nigel ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 For the Fiscal Year Ended December 31, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission File Number 1-5581 WATSCO, INC. 2665 South Bayshore Drive, Suite 901 Miami, FL 33133 (Address of principal executive offices, including zi ...

Watsco, Inc. (NYSE:WSO) Q4 2021 Earnings Conference Call February 10, 2022 10:00 AM ET Company Participants Albert Nahmad – Chief Executive Officer A.J. Nahmad – President Paul Johnston – Vice President Barry Logan – Executive Vice President-Planning and Strategy and Secretary Conference Call Participants Tommy Moll – Stephens David Manthey – Baird Jeff Sprague – Vertical Research Jeff Hammond – KeyBanc Capital Markets Stephen Volkmann – Jefferies Steve Tusa – JPMorgan Ryan Merkel – William Blair Joshua Pok ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2021 or ☐ Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission file number 1-5581 I.R.S. Employer Identification Number 59-0778222 WATSCO, INC. (a Florida Corporation) 2665 South Bayshore Drive, S ...

Watsco, Inc. (NYSE:WSO) Q3 2021 Earnings Conference Call October 20, 2021 10:00 AM ET Company Participants Albert Nahmad - CEO Paul Johnston - EVP Barry Logan - Executive VP of Planning & Strategy and Secretary Aaron Nahmad - President & Director Conference Call Participants Tommy Moll - Stephens Steve Volkmann - Jefferies Jeff Hammond - KeyBanc Capital Markets David Manthey - Baird Jeff Sprague - Vertical Research Chris Dankert - Loop Capital Ryan Merkel - William Blair Steve Tusa - JPMorgan Josh Pokrzywin ...

For the Transition Period From to Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2021 or ☐ Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number 1-5581 I.R.S. Employer Identification Number 59-0778222 WATSCO, INC. (a Florida Corporation) 2665 South Bayshore Drive, Suite ...

Financial Data and Key Metrics Changes - Earnings per share increased by 64% to a record $3.71, with net income rising by 66% [6] - Sales grew by 36% or nearly $500 million to a record $1.850 billion for the quarter [7] - Gross profits increased by 50%, with gross margin expanding by 220 basis points [7] - Operating income rose by $88 million or 68% to $217 million, with operating margins expanding by 220 basis points to a record 11.7% [7] Business Line Data and Key Metrics Changes - The company added two new companies, TEC and Acme, which performed well and are now integral to Watsco [7] - Growth rates among active users of the company's technologies outpaced non-users, indicating a positive trend in customer engagement [9] - The number of digital sales presentations made by contractor customers increased by 84%, contributing to over $200 million in sales during the quarter [10] Market Data and Key Metrics Changes - The North American market is valued at $50 billion, and the company aims to find more companies to join its portfolio [8] - The company noted that high-efficiency systems are being sold at a greater rate, contributing positively to gross margins [17] Company Strategy and Development Direction - The company is focused on long-term growth and aims to leverage its industry-leading technologies to gain market share [8][12] - There is an emphasis on selling higher-margin parts and supplies, which are expected to contribute to overall profitability [23] - The company is committed to investing in technology to enhance customer relationships and improve sales processes [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of gross margins, attributing improvements to pricing strategies and high-efficiency system sales [19][20] - The company is aware of supply chain challenges but believes that demand will eventually catch up with supply [40] - Management highlighted the importance of financing options for customers to mitigate the impact of price increases [32][37] Other Important Information - The company maintains a strong balance sheet with minimal debt, providing capacity for growth through acquisitions [12] - E-commerce sales are a significant contributor, with a run rate of about $1.8 billion for the last 12 months [80] Q&A Session Summary Question: What is driving the exceptional gross margins? - Management indicated that high-efficiency systems and optimized pricing strategies are key factors [17][19] Question: Are there signs of demand disruption due to price increases? - Management noted no significant pushback from consumers, attributing this to the nature of HVAC purchases [33][34] Question: How is the company managing supply chain pressures? - The company utilizes advanced technology for inventory management and maintains close communication with OEMs to mitigate supply issues [48] Question: What is the outlook for financing as a growth pillar? - Management sees financing as a significant growth opportunity but has not yet defined its full potential [88][90] Question: How does the company view the competitive landscape for M&A? - Management believes that the current environment may encourage some independent distributors to consider selling, but emotional factors play a significant role in such decisions [92][96]