Watsco(WSO) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter sales increased by 9% to a record $1.75 billion, with gross profit rising 13% to $468 million[8] - Operating income grew by 26% to $136 million, with an operating margin expansion of 110 basis points to 7.8%[8] - Annual sales reached $7.62 billion, representing a 5% increase, with a same-store growth of 3%[14] - E-commerce sales grew by 8% to $2.6 billion for the year, accounting for 35% of annual sales[14] - Revenues for Q4 2024 reached $1,753,962, a 9.4% increase from $1,603,197 in Q4 2023[32] - Net income attributable to Watsco was $96,841 in Q4 2024, up from $82,547 in Q4 2023, representing a 17.5% increase[32] - Operating income for the year was $781,775, slightly down from $794,810 in 2023, a decrease of 1.8%[32] - Diluted earnings per share for 2024 were $13.30, compared to $13.67 in 2023, showing a decrease of 2.7%[32] Cash Flow and Assets - Operating cash flow increased by 38% to a record $773 million, representing 122% of net income[16] - Cash and cash equivalents at the end of 2024 were $526,271, significantly higher than $210,112 at the end of 2023, marking a 150.5% increase[34] - Net cash provided by operating activities for 2024 was $773,102, compared to $561,954 in 2023, indicating a 37.5% increase[36] - Total assets increased to $4,479,523 in 2024, up from $3,729,182 in 2023, reflecting a growth of 20.1%[34] Expenses and Liabilities - SG&A expenses rose to $338,489 in Q4 2024, up from $312,461 in Q4 2023, reflecting an increase of 8.3%[32] - Total liabilities increased to $1,415,285 in 2024 from $1,112,992 in 2023, a rise of 27.2%[34] Dividends and Acquisitions - The company raised its annual dividend by 11% to $12.00 per share, marking the 51st consecutive year of dividend payments[3][17] - The company has acquired 70 companies since 1989, contributing to approximately $1.6 billion in annualized sales from 111 locations[19] Market and User Growth - Watsco's digital user community expanded to approximately 64,000 users, a 15% increase from the prior year[14] - Sales of residential equipment increased by 16% during the quarter, driven by new customer acquisition and market share gains[9] - Watsco's gross margin for the full year was 26.8%, down from 27.4% the previous year[14] - Gross profit margin improved to 26.7% in Q4 2024, compared to 25.8% in Q4 2023[32]