Exhibit 99.1

Watsco Reports Record Sales, Income and

Earnings Per Share during Third Quarter

 

 

Achieves Record Nine-Month Operating Cash Flow;

Continued Investments in Technology and Network Expansion

MIAMI, FLORIDA – (GLOBENEWSWIRE), October 17, 2019 – Watsco, Inc. (NYSE: WSO) reported its third quarter results. Record sales, operating income, net income attributable to Watsco and earnings per share (EPS) were achieved for the quarter and nine-month periods ended September 30, 2019. Record operating cash flow for the nine-month period ended September 30, 2019 was also achieved.

Operating results include continued investments in a variety of technologies to revolutionize Watsco’s customer-experience, to create a data-driven culture and to enhance productivity and operational excellence. Watsco’s e-commerce revenues are expected to approach $1.5 billion for 2019 (a 25% increase over 2018), and the number of unique users of its contractor-focused mobile apps has increased 15% to over 88,000 year to date. The Company expects to accelerate the pace of change and innovation in its markets and is confident that its industry-specific focus, scale and leadership position will provide significant long-term value.

Watsco has also focused efforts on making investments in successful businesses to grow its network and build further scale. The Company completed several transactions during 2019, investing $133 million of capital in market-leading businesses through a combination of cash and Watsco shares. Operating results of acquired businesses were immediately accretive and are expected to provide new sources of growth as investments are made in support of their growth plans. The Company’s debt-to-total capitalization ratio remains low at 9%, consistent with the Company’s philosophy of maintaining a conservative, risk averse financial position, that enables the Company to aggressively invest in attractive opportunities at a low cost of capital.    

Third Quarter Results

Key performance metrics:

 

   

8% sales growth to a record $1.39 billion (3% on a same-store basis)

 

   

4% increase in EPS to a record $2.20 with net income attributable to Watsco increasing 5% to a record $83 million

 

   

2% increase in operating profit to a record $125 million (1% increase on a same-store basis)

 

   

9.0% operating margin

 

   

9.2% same-store operating margin versus 9.4% last year (2018 included the benefit of mid-year OEM pricing actions that did not recur in 2019)

 

   

6% increase in SG&A expenses, reflecting 35 new or acquired locations

 

   

Flat same-store SG&A expenses (a 50 basis-point improvement as a percentage of sales)

 

   

45% increase in operating cash flow to $129 million

Sales trends (excluding acquisitions):

 

   

4% growth in HVAC equipment (69% of sales), including 6% growth in residential products

 

   

2% increase in other HVAC products (27% of sales)

 

   

1% increase in commercial refrigeration products (4% of sales)

Albert H. Nahmad, Watsco’s Chairman and CEO stated: “Watsco produced strong cash flow and record performance that reflects sales growth across the Company’s markets, solid revenue and profit contributions from recent acquisitions and improved operating efficiencies. We are optimistic that 2019 will be a record year for our company.”    

 

1


The following information was filed by Watsco Inc (WSO) on Thursday, October 17, 2019 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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