Please wait while we load the requested 10-Q report or click the link below:
Watsco Reports Record First Quarter Sales and Net Income;
Sales Momentum Building into Second Quarter
After Seasonally Late Start to the Year
Annual Dividend Boosted 19% to $5.00 Per Share From Strong Cash Flow
MIAMI, FLORIDA (BUSINESS WIRE), April 25, 2017 Watsco, Inc. (NYSE: WSO) today reported results for the first quarter ended March 31, 2017.
Watsco also announced today that its Board of Directors approved a 19% increase in its annual dividend to $5.00 per share on each outstanding share of its Common and Class B common stock. The increase will be reflected in the Companys next regular dividend payment beginning in July 2017.
|||Sales increased 2% to a record $872 million (3% on a same-store basis)|
|||HVAC equipment increased 3% (65% of sales)|
|||Other HVAC products increased 1% (30% of sales)|
|||Commercial refrigeration products increased 5% (5% of sales)|
Key performance metrics:
|||Gross profit improved 3% to a record $219 million (gross margin improved 10 basis-points)|
|||SG&A increased 5%, reflecting sales and service-related headcount additions (4 cents per share impact) and higher technology spending (2 cents per share impact)|
|||Operating income decreased 4% to $49 million|
|||Net income increased 3% to a record $26 million|
|||Earnings per share was flat at 71 cents|
|||Operating cash flow of $34 million ($1.05 per diluted share)|
Albert H. Nahmad, Watscos Chairman and CEO, stated: Sales trends during the quarter proved highly seasonal, especially in the face of last years double-digit U.S. equipment growth rate comparison. Sales momentum improved as the quarter closed and current trends in April have accelerated to double-digit growth. We believe profit growth should follow as we expect the improved selling margins and richer sales mix of higher-efficiency systems achieved in the first quarter to continue. Results also reflect further investments in technology and additional headcount of approximately 150 customer-facing employees intended to enhance long-term sales growth and market share. Although it is early, we are optimistic that 2017 will be a record year for our company.
Mr. Nahmad added: We are pleased to boost our dividend to an annual rate of $5.00 per share beginning in July. As evidenced by our long-term track record, we have confidence in our business to produce meaningful earnings growth and cash flow that exceeds net income. It is our intention to share cash flow through increasing dividends, while retaining the ability to invest in our network and evaluate any-sized opportunities that come our way.
It is important to note that the first 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 first quarter financial results are disproportionately affected by this seasonality.
Watsco is actively transforming its business into the digital age by investing in scalable platforms for mobile apps, e-commerce, business intelligence and supply chain optimization. Strategic goals are to further strengthen
The following information was filed by Watsco Inc (WSO) on Tuesday, April 25, 2017 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
View differences made from one quarter to another to evaluate Watsco Inc's financial trajectory
Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were
removed , and by Watsco Inc.