Exhibit 99.1

Watsco’s Fourth Quarter EPS Jumps 24%, Setting New Records

for Sales, Operating Profit, Net Income and Cash Flow

 

 

Annual Records Achieved for EPS, Sales, Profitability and Cash Flow

10% Dividend Raise to $7.80 Following Record Performance

MIAMI, FLORIDA – (GLOBENEWSWIRE) February 11, 2021 – Watsco, Inc. (NYSE: WSO) reported record fourth quarter results. Watsco set new annual records for earnings per share (EPS), sales, operating income, net income and operating cash flow.

Watsco also announced that its Board of Directors approved a 10% increase in its annual dividend to $7.80 per share to be reflected in the Company’s next regular quarterly payment in April 2021.

Watsco’s entrepreneurial culture, which empowers leaders to think and act locally, proved critically important in responding to changing market conditions during 2020. The Company’s technology platforms supported customers and facilitated higher levels of engagement and connectivity, which led to more customer acquisition and market share gains. In addition, Watsco’s internally-focused technology platforms, designed to promote operational excellence in each of the Company’s 600 locations, yielded efficiencies and contributed to the Company’s record cash flow.

Albert H. Nahmad, Watsco’s Chairman and CEO commented: “We are excited to deliver another record year, especially given the unique business challenges faced in 2020. Our core U.S. residential business remained solid, generating 17% growth during the quarter and reflecting the continued trend towards higher-efficiency systems. We express our gratitude to our more than 5,700 employees for their extraordinary efforts during this challenging year. We are optimistic and look forward to another strong year in 2021.”

Fourth Quarter Results

Key performance metrics:

 

   

24% EPS growth to $1.14

 

   

23% increase in net income attributable to Watsco to a record $46 million

 

   

8% sales growth to a record $1.15 billion (7% increase on a same-store basis)

 

   

34% increase in operating profit to a record $70 million with 110 basis-point operating margin expansion

 

   

8% gross profit increase to a record $282 million with 10 basis-point increase in gross margin

 

   

2% increase in SG&A expenses (110 basis-point improvement as a percentage of sales)

 

   

17% increase in operating cash flow to a record $162 million

Sales Trends (excluding acquisitions):

 

   

9% increase in HVAC equipment (67% of sales), including 13% overall growth in U.S. markets and 17% growth in U.S. residential equipment

 

   

7% increase in other HVAC products (30% of sales)

 

   

2% increase in commercial refrigeration products (3% of sales)

Mr. Nahmad added: “Looking to the long-term, we believe there is opportunity to be a significant participant and contributor in efforts to address climate change. The sale of higher-efficiency products has long been a fundamental opportunity given the size and age of the installed base of HVAC systems in the U.S., many of which are operating under old efficiency standards that result in higher energy use and costs to homeowners. We have a role to play in educating contractors and consumers on the benefits of higher-efficiency systems that both reduce energy costs and contribute to a healthier climate. Watsco plans to actively collaborate with its OEM partners and key stakeholders to lead these ongoing efforts in its marketplace.”

 

1


The following information was filed by Watsco Inc (WSO) on Thursday, February 11, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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