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Watsco Reports Record Third Quarter Results and
Dividend Raise to $6.40 Per Share
Initiative Launched to Leverage Technology Investments
and Improve Operating Efficiency
MIAMI, FLORIDA (GLOBENEWSWIRE), October 25, 2018 Watsco, Inc. (NYSE: WSO) reported record results for the quarter and nine-month periods ended September 30, 2018. Record sales, operating profit, net income and earnings per share were achieved for both periods.
Watsco also announced that its Board of Directors approved a 10% increase in its annual dividend to $6.40 per share on each outstanding share of its Common stock and Class B common stock to be reflected in the Companys next regular quarterly dividend payment beginning in January 2019.
Third Quarter Results
Key performance metrics:
16% earnings per share (EPS) growth to a record $2.11
22% increase in net income to a record $79 million
5% sales growth to a record $1.296 billion
8% increase in gross profit to a record $319 million
50 basis-point increase in gross margin
7% increase in operating income to a record $122 million
10 basis-point expansion in operating margins to 9.4%
7% growth in HVAC equipment (68% of sales)
4% growth in other HVAC products (28% of sales)
Flat sales for commercial refrigeration products (4% of sales)
Albert H. Nahmad, Chairman and CEO stated: Watsco produced another record quarter with higher gross margin and expanded operating margins. Strong execution was achieved in many markets and we expect to close out another record year in 2018. We are pleased to reward shareholders by raising our annual dividend, reflecting our continued confidence in our business.
Results reflect unit growth in HVAC equipment, realization of price increases and a richer mix of high-efficiency systems. Comparable growth rates were achieved for residential and commercial products. Results include a $3 million operating profit decline in Florida-based locations on flat sales and a $2 million operating profit decline in Mexico on lower sales. Sales increased 8% and operating profit increased 18%, excluding these markets, which drove a $6 million increase in performance-based compensation during the quarter.
Key performance metrics:
18% earnings per share growth to a record $5.43
23% increase in net income to a record $203 million
5% sales growth to a record $3.555 billion
The following information was filed by Watsco Inc (WSO) on Thursday, October 25, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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