Please wait while we load the requested 10-K report or click the link below:
Watsco Reports Record Annual Results and
11% Dividend Raise to $7.10 Per Share
Continued Investments in Customer-Focused Technologies;
Acquisitions Drive Network Expansion by 35 Locations;
Cultural Investments in Long-term Equity and Employee Wellness Programs
MIAMI, FLORIDA (GLOBENEWSWIRE), February 13, 2020 Watsco, Inc. (NYSE: WSO) reported its annual and fourth quarter 2019 results. The Company achieved record results in annual sales, net income attributable to Watsco, earnings per share (EPS) and operating cash flow. Watsco also announced today that its Board of Directors approved an 11% increase in its annual dividend to $7.10 per share to be reflected in the Companys next regular quarterly dividend payment in April 2020.
Watsco continues to invest in its industry-leading technology platforms designed to revolutionize its customer-experience and further enhance its offerings to HVAC/R contractors. The Company believes the pace of innovation and adoption of technology is accelerating and its customer-focused solutions, scale and leadership position provides significant long-term value. To date, nearly 20,000 customers have embraced Watscos technology solutions and the Company has intensified its effort to add functionality and drive widespread adoption. Technology spending increased $5.0 million in 2019 or 11 cents per diluted share ($0.7 million or 2 cents per diluted share for the fourth quarter). The current annual run-rate for technology spending (included in SG&A expenses) is $32 million.
Watsco completed several transactions in 2019, investing $148 million of capital in strong, market-leading businesses. Results of acquired businesses were accretive to 2019 results and are expected to provide new sources of growth as more capital is deployed to support their growth plans. Despite these investments, the Companys debt-to-total capitalization ratio remains low, consistent with the Companys core philosophy to maintain a conservative, risk-averse financial position, while possessing a strong balance sheet that can invest in most any opportunity at a low cost of capital.
Watsco also invested more in its people and culture during 2019, including incremental investments in its unique equity and employee wellness programs. The Company believes these investments are important to performance along with the continuity of its culture, which empowers employees to think and act long-term. Incremental SG&A related to these programs was approximately $3 million (7 cents per diluted share) in 2019, including:
a 33% increase in the annual 401(k) matching contribution, which is made in Watsco common stock. The Companys 30-year compounded total shareholder return of 18% has benefited shareholders and employees alike, particularly the Companys 3,500+ 401(k) participants, many of whom have spent their careers with the Company;
expansion of Watscos ownership culture to more employees through a variety of unique, equity-based programs, including stock options and the innovative use of restricted stock that vests at the end of an employees career, and
implementation of an enriched wellness program, including greater incentives for employees to learn more about their health, identify risks and promote preventive care.
Albert H. Nahmad, Watscos Chairman and Chief Executive Officer, said: 2019 marked a year of continued investments in technology, the expansion of our network and in our organization, all with a long-term perspective. We are pleased with our record cash flow and the resulting dividend raise to reward our shareholders with consistent returns as we move through this transformative period.
The following information was filed by Watsco Inc (WSO) on Thursday, February 13, 2020 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.
View differences made from one year to another to evaluate Watsco Inc's financial trajectory
Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were
removed , and by Watsco Inc.