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Watsco Sets Records for Earnings Per Share, Net Income and Sales
During Fourth Quarter and Full-Year
Record Annual Cash Flow; Dividend Raised 16% to $5.80 Per Share
Adoption of Customer-Centric Technology Grows as Business Transformation Continues
MIAMI, FLORIDA (GLOBENEWSWIRE), February 8, 2018 Watsco, Inc. (NYSE: WSO) reported record operating results for the fourth quarter and year ended December 31, 2017.
The record operating results reflect continued investment in technologies designed to revolutionize Watscos customer-experience, making it easier to do business and helping customers grow their businesses more profitably. Most notably, the digitization of Watscos marketplace via e-commerce through iOS/Android-enabled apps and websites with the industrys most in-depth database of product information made significant progress in 2017. Customer adoption increased enabling more contractors to interact with us 24 hours a day to find products, place orders and obtain technical support. Employees are also empowered with better data, processes and capabilities to serve their customers needs.
In addition to record operating performance, Watsco generated record operating cash flow of $302 million in 2017 on net income of $257 million. Watsco also raised $248 million during 2017 from the sale of shares of its common stock under its previously announced at-the-market (ATM) stock offering program, sharply reducing debt and positioning the Company to capitalize on long-term growth opportunities.
Watsco also announced today that its Board of Directors approved a 16% increase in its annual dividend to $5.80 per share for 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 April 2018.
Fourth Quarter Results
Key performance metrics:
|||47% increase in earnings per share to a record $1.19 (includes 29 cent benefit from tax reform)|
|||46% increase in net income to a record $43 million (includes $10 million benefit from tax reform)|
|||6% increase in operating income to $61 million (6.4% operating margin)|
|||Operating cash flow of $117 million|
|||$243 million of proceeds from ATM share offering|
|||91% reduction in debt to $22 million at December 31, 2017|
|||6% increase in sales to $964 million|
|||7% increase in HVAC equipment (67% of sales)|
|||4% increase in other HVAC products (29% of sales)|
|||4% decrease in commercial refrigeration products (4% of sales)|
Albert Nahmad, Watscos Chairman and Chief Executive Officer stated: Watsco delivered another record quarter with a resumption of strong sales growth rates for residential and commercial HVAC systems from increasing unit demand and an improved mix of higher-efficiency systems. Results also reflect further investments in technology and 150 new customer-facing employees during the course of the year to drive sales growth and market share.
The following information was filed by Watsco Inc (WSO) on Thursday, February 8, 2018 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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