Financial Performance - Revenues for the first quarter increased 1% to a record $1.56 billion, with a 2% decline on a same-store basis [8]. - Gross profit was $431 million, resulting in a gross margin of 27.5%, down from 28.9% in the previous year [29]. - Operating income decreased to $127 million, reflecting an operating margin of 8.1%, compared to 10.6% last year [29]. - Earnings per share were $2.17, down from $2.83 in the same quarter last year [8]. - Net income for Q1 2024 was $104,262 thousand, a decrease of 19.9% compared to $130,371 thousand in Q1 2023 [33]. Cash Flow and Assets - Record operating cash flow of $104 million was generated during the quarter [18]. - Cash and cash equivalents at the end of Q1 2024 were $278,864 thousand, up from $210,112 thousand at the beginning of the period, marking a net increase of 32.5% [33]. - Total current assets increased to $2,998,372 thousand in Q1 2024 from $2,391,931 thousand in Q4 2023, representing a growth of 25.4% [31]. - Net cash provided by operating activities was $103,706 thousand in Q1 2024, a significant recovery from a net cash used of $(47,421) thousand in Q1 2023 [33]. Liabilities and Equity - Total liabilities rose to $1,429,545 thousand in Q1 2024 from $1,112,992 thousand in Q4 2023, an increase of 28.4% [31]. - Shareholders' equity increased to $2,927,573 thousand in Q1 2024 from $2,616,190 thousand in Q4 2023, showing a growth of 11.9% [31]. Inventory and Receivables - Inventories increased to $1,655,635 thousand in Q1 2024 from $1,347,289 thousand in Q4 2023, reflecting a rise of 23% [31]. - The company reported a decrease in accounts receivable, net, of $33,502 thousand in Q1 2024, compared to a decrease of $64,691 thousand in Q1 2023 [33]. Business Growth and Investments - The company added three new companies to its portfolio since the beginning of last year, enhancing market share [5]. - The company made business acquisitions totaling $5,178 thousand in Q1 2024, compared to $2,989 thousand in Q1 2023 [33]. - The company raised $282 million through an equity offering under its at-the-market program [18]. Sales and Market Trends - Sales of heat pump HVAC systems exceeded $1.2 billion in 2023, continuing to outpace growth rates for conventional systems [14]. - E-commerce sales accounted for 33% of total sales, showing strong growth compared to overall sales [14]. Dividends - A 10% increase in the annual dividend to $10.80 per share was approved, effective April 2024 [4].
Watsco(WSO_B) - 2024 Q1 - Quarterly Results