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Watsco Achieves Record Sales, EPS, Operating Margins and Cash Flow
During Fourth Quarter and Full-Year 2015
MIAMI, FLORIDA (BUSINESS WIRE), February 11, 2016 Watsco, Inc. (NYSE: WSO) reported record results for the fourth quarter and year ended December 31, 2015.
Fourth Quarter Results
Key performance metrics:
|||9% earnings per share growth to a record 75 cents|
|||4% operating income increase to a record $54 million|
|||10 basis-point expansion in operating margins to a record 6.0%|
|||20 basis-point improvement in gross margin|
|||3% sales growth to a record $904 million (4% on same-store basis)|
|||6% HVAC equipment growth (65% of sales), including 8% growth in the U.S.|
|||Flat sales for other HVAC products (30% of sales)|
|||4% increase in commercial refrigeration products (5% of sales)|
Albert H. Nahmad, Watscos Chairman and CEO stated: Watsco produced another solid quarter of earnings growth, with expanded operating margins on record sales, market share gains and record cash flow. We experienced consistent growth in both residential and commercial markets, with continued strength in sales of high-efficiency replacement systems. These results are particularly satisfying given the blockbuster results we achieved in the fourth quarter of 2014. Overall, our results represent a nice finish to another excellent year.
It is important to note that the fourth quarter of each calendar year is highly seasonal due to the nature and timing of the replacement market for air conditioning systems, which is strongest in the second and third quarters. Accordingly, the Companys fourth quarter financial results are disproportionately affected by this seasonality.
Full Year Results
Key performance metrics:
|||13% earnings per share growth to a record $4.90|
|||10% operating income increase to a record $337 million|
|||40 basis-point expansion in operating margins to a record 8.2%|
|||30 basis-point improvement in gross profit margin|
|||20 basis-point reduction in SG&A as a percentage of sales to a record low|
|||4% sales growth to a record $4.11 billion (5% on a same-store basis)|
|||7% HVAC equipment growth (66% of sales), including 8% growth in the U.S.|
|||2% increase in other HVAC products (29% of sales)|
|||2% increase in commercial refrigeration products (5% of sales)|
Mr. Nahmad added: 2015 was an outstanding year for Watsco, which we believe highlights the stability and consistency of our company. We are especially proud of achieving record operating margins given the substantial investments we have made in products, technology and people to drive long-term performance and innovation in our business.
The following information was filed by Watsco Inc (WSO) on Thursday, February 11, 2016 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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