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Watsco Reports Record Sales, Enhanced Operating Efficiency and Strong Cash Flow During Second Quarter

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Watsco (NYSE: WSO) reported record sales and enhanced operating efficiency for Q2 2024. Key highlights include:

- Revenue increased 7% to a record $2.1 billion (4% same-store growth)
- Gross profit up 3% to $580 million (27.1% margin)
- Operating income of $269 million (12.6% margin)
- EPS of $4.49 vs $4.42 last year
- Operating cash flow improved by $100 million year-over-year

The company's growth strategy focuses on acquisitions, technology innovation, and industry catalysts like regulatory changes and electrification trends. Watsco maintains a strong financial position with $425 million in cash and no borrowings, supporting future growth opportunities.

Watsco (NYSE: WSO) ha riportato vendite record e una maggiore efficienza operativa per il secondo trimestre del 2024. I punti salienti includono:

- I ricavi sono aumentati del 7% raggiungendo un record di 2,1 miliardi di dollari (crescita del 4% nelle vendite a negozio comparabile)
- L'utile lordo è aumentato del 3% a 580 milioni di dollari (margine del 27,1%)
- L'utile operativo è stato di 269 milioni di dollari (margine del 12,6%)
- EPS di 4,49 dollari rispetto a 4,42 dollari dell'anno precedente
- I flussi di cassa operativi sono migliorati di 100 milioni di dollari anno su anno

La strategia di crescita dell'azienda si concentra su acquisizioni, innovazione tecnologica e catalizzatori del settore come cambiamenti normativi e tendenze di elettrificazione. Watsco mantiene una solida posizione finanziaria con 425 milioni di dollari in contante e nessun indebitamento, a supporto delle opportunità di crescita future.

Watsco (NYSE: WSO) reportó ventas récord y una mayor eficiencia operativa para el segundo trimestre de 2024. Los aspectos más destacados incluyen:

- Los ingresos aumentaron un 7% alcanzando un récord de 2.1 mil millones de dólares (crecimiento del 4% en tiendas comparables)
- La ganancia bruta aumentó un 3% a 580 millones de dólares (margen del 27.1%)
- El ingreso operativo fue de 269 millones de dólares (margen del 12.6%)
- EPS de 4.49 dólares en comparación con 4.42 dólares el año pasado
- El flujo de caja operativo mejoró en 100 millones de dólares año tras año

La estrategia de crecimiento de la empresa se centra en adquisiciones, innovación tecnológica y catalizadores de la industria como cambios regulatorios y tendencias de electrificación. Watsco mantiene una sólida posición financiera con 425 millones de dólares en efectivo y sin deudas, apoyando futuras oportunidades de crecimiento.

Watsco (NYSE: WSO)는 2024년 2분기에 대한 기록적인 매출과 향상된 운영 효율성을 보고했습니다. 주요 내용은 다음과 같습니다:

- 수익은 7% 증가하여 21억 달러의 기록을 세웠습니다 (동일 매장 성장률 4%)
- 총 이익은 3% 증가하여 5억 8천만 달러에 달했으며 (27.1%의 마진)
- 운영 소득은 2억 6천9백만 달러 (12.6%의 마진)
- 주당 순이익은 4.49달러로 작년 4.42달러와 비교됩니다.
- 지난해 대비 운영 현금 흐름은 1억 달러 개선되었습니다.

회사의 성장 전략은 인수, 기술 혁신, 그리고 규제 변화나 전기화 동향과 같은 산업 촉매에 중점을 두고 있습니다. Watsco는 4억 2천5백만 달러의 현금을 보유하고 있으며, 부채가 없어 강력한 재무 상태를 유지하고 있으며, 이는 미래 성장 기회를 지원합니다.

Watsco (NYSE: WSO) a annoncé des ventes record et une efficacité opérationnelle améliorée pour le deuxième trimestre de 2024. Les points saillants comprennent :

- Les revenus ont augmenté de 7 % pour atteindre un record de 2,1 milliards de dollars (croissance de 4 % dans les magasins comparables)
- Le bénéfice brut a progressé de 3 % à 580 millions de dollars (marge de 27,1 %)
- Le bénéfice opérationnel s'élève à 269 millions de dollars (marge de 12,6 %)
- Le bénéfice par action est de 4,49 dollars contre 4,42 dollars l'année dernière
- Le flux de trésorerie d'exploitation a amélioré de 100 millions de dollars d'une année sur l'autre

La stratégie de croissance de l'entreprise se concentre sur les acquisitions, l'innovation technologique et des catalyseurs industriels tels que les changements réglementaires et les tendances d'électrification. Watsco maintient une solide position financière avec 425 millions de dollars en liquidités et aucune dette, soutenant ainsi les opportunités de croissance futures.

Watsco (NYSE: WSO) hat Rekordverkäufe und verbesserte Betriebseffizienz für das 2. Quartal 2024 gemeldet. Wichtige Highlights sind:

- Der Umsatz stieg um 7 % auf einen Rekord von 2,1 Milliarden USD (4 % Wachstum im Vergleich zu Vorjahresumsätzen)
- Der Bruttogewinn stieg um 3 % auf 580 Millionen USD (Marge von 27,1 %)
- Das Betriebsergebnis betrug 269 Millionen USD (Marge von 12,6 %)
- EPS von 4,49 USD im Vergleich zu 4,42 USD im Vorjahr
- Der operative Cashflow verbesserte sich um 100 Millionen USD im Vergleich zum Vorjahr

Die Wachstumsstrategie des Unternehmens konzentriert sich auf Akquisitionen, technologische Innovationen und branchenspezifische Katalysatoren wie regulatorische Änderungen und Elektrifizierungstrends. Watsco hat eine starke finanzielle Position mit 425 Millionen USD in bar und keinen Schulden, was zukünftige Wachstumschancen unterstützt.

Positive
  • Record Q2 revenue of $2.1 billion, up 7% (4% same-store growth)
  • Gross profit increased 3% to $580 million
  • Operating income of $269 million with 12.6% margin
  • EPS improved to $4.49 from $4.42 last year
  • Operating cash flow improved by $100 million year-over-year
  • Strong balance sheet with $425 million in cash and no borrowings
  • 13% growth in e-commerce sales, accounting for 36% of total sales
  • Increased annual dividend rate by 10% to $10.80 per share
Negative
  • Slight decline in gross margin to 27.1% from previous year
  • 1% decline in other HVAC products sales (25% of total sales)
  • First-half EPS decreased to $6.69 from $7.25 last year

Insights

Watsco's Q2 2024 results demonstrate solid performance with record sales and improved operating efficiency. The 7% revenue increase to $2.1 billion and $4.49 EPS show resilience in a competitive market. The 30 basis-point improvement in SG&A as a percentage of sales is particularly noteworthy, indicating enhanced operational efficiency.

The company's focus on technology adoption is paying dividends, with e-commerce sales growing 13% and now accounting for 36% of total sales. This digital transformation is likely to drive future growth and efficiency gains.

Watsco's strong balance sheet, with $425 million in cash and no borrowings, positions it well for future acquisitions and investments. The 10% dividend increase demonstrates confidence in future cash flows.

However, investors should note the slight decline in gross margin and the slower growth in non-equipment HVAC products. The upcoming regulatory changes in the industry could present both opportunities and challenges for Watsco.

Watsco's Q2 results reflect broader trends in the HVAC industry. The 8% increase in HVAC equipment sales suggests a robust replacement market, likely driven by aging systems and energy efficiency upgrades. The 6% growth in ducted residential units and 3% increase in average selling price indicate healthy demand and potential pricing power.

The company's focus on heat pump systems, with sales exceeding $1.2 billion over 12 months, aligns with the industry's shift towards electrification. This trend is expected to continue as regulations and consumer preferences favor more environmentally friendly heating solutions.

Watsco's investment in digital tools like HVAC Pro+ and OnCallAir® is transforming contractor interactions. The 18% increase in quotes and 27% growth in gross merchandise value through OnCallAir® demonstrate the potential of these platforms to drive sales and efficiency.

The upcoming regulatory changes, including new energy efficiency standards and refrigerants, present significant opportunities for Watsco. As the largest distributor in a fragmented market, Watsco is well-positioned to capitalize on these industry shifts.

Watsco's performance should be viewed in the context of the broader $64 billion North American HVAC/R market. As the largest player in a highly fragmented industry, Watsco's ability to grow market share is crucial. The company's technology investments and acquisition strategy are key differentiators in this landscape.

The 12% expansion in authenticated users of Watsco's mobile apps indicates growing contractor engagement. This digital ecosystem could be a significant moat, potentially leading to higher customer retention and market share gains.

Watsco's 'buy and build' strategy, having completed 69 acquisitions to date, remains a key growth driver. With an estimated 2,200 independent distributors still in the market, there's significant runway for further consolidation.

The company's focus on the replacement market is strategically sound, given the 102 million HVAC systems over 10 years old in the U.S. This aging installed base, coupled with increasing energy efficiency requirements, presents a substantial long-term growth opportunity.

Watsco's environmental impact, having averted an estimated 20.9 million metric tons of CO2e emissions since 2020, aligns with growing ESG concerns and could appeal to socially conscious investors.

Continued Customer Adoption of Industry-Leading Technologies Helps Drive Share Gains; 
Debt-Free Balance Sheet Supports Long-Term Investment and Growth

MIAMI, July 30, 2024 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced its operating results for the second quarter and six-month period ended June 30, 2024. Commentary was also provided on business trends, growth opportunities, technology innovation and its financial position.

Watsco is the largest distributor in the highly fragmented $64 billion North American HVAC/R marketplace, with more than $7 billion in annual sales and nearly 700 locations in the U.S., Canada, and Latin America. Watsco estimates that over 375,000 owner-operators, technicians and installers visit, call or digitally engage with one of its locations each year to get information, obtain technical support and buy products.

Since entering distribution in 1989, Watsco’s operating profits have grown at a compounded annual growth rate (CAGR) of 18% and dividends have grown at a 21% CAGR. These long-term growth rates are indicative of strong and consistent performance across most macroeconomic and industry cycles.

A cornerstone of Watsco’s growth strategy is the acquisition of long-standing, family-owned businesses. Watsco has completed 69 acquisitions, achieving industry-leading scale and preserving many wonderful business legacies into future generations. Over the last five years, Watsco has acquired eight businesses that today generate approximately $1 billion in annual sales. We believe our proven entrepreneurial culture, track record, strategic relationships and strong financial position provide an attractive home for great businesses, and we are actively seeking additional opportunities to expand our network.

Watsco has also developed industry-leading technologies to enhance the customer experience, gain operating efficiencies and drive growth. Today, approximately 60,000 contractors and technicians engage with Watsco digitally, which is complimented by modern, state-of-the-art technologies in each of our locations to better serve customers. We have achieved stronger sales growth rates among our digitally engaged customers, increased penetration with new customers and lowered overall customer attrition. Follow-on investments are being made to enhance current technologies and to grow customer adoption. The Company believes these technologies will continue to be an important catalyst for long-term growth and performance.

Second Quarter Results

  • Revenue increased 7% to a record $2.1 billion (4% increase on a same-store basis)
  • Gross profit increased 3% to $580 million (27.1% gross margin)
  • SG&A increased 5% (2% increase on a same-store basis) and improved 30 basis-points as a percentage of sales
  • Operating income of $269 million (operating margin of 12.6%)
  • Earnings per share of $4.49 versus $4.42 last year
  • Operating cash flow improved by $100 million compared to last year ($58 million of cash flow in 2024 versus a $42 million cash use in 2023)

Sales trends (excluding acquisitions)

  • 8% increase in HVAC equipment (71% of sales)
  • 1% decline in other HVAC products (25% of sales)
  • 1% increase in commercial refrigeration products (4% of sales)

Albert H. Nahmad, Watsco’s Chairman and CEO noted: “We are pleased with our second quarter results, which reflect record sales, strong cash flow and a strengthened balance sheet, which is particularly gratifying during our peak selling season. In addition, we made strides toward producing greater operating efficiencies across our network, as evidenced by our SG&A performance. We now look ahead to the next important regulatory transition and the introduction of new products by our OEM partners later this year.”

Second quarter sales reflect healthier residential end-markets, reflecting 6% growth in ducted residential units and a 3% increase in average selling price. In addition, sales of commercial products grew 8% during the quarter on top of the 18% growth achieved during the comparable period last year.

First-Half Results

  • Revenue increased 4% to a record $3.7 billion (1% increase on a same-store basis)
  • Gross profit of $1.0 billion (27.3% gross margin)
  • SG&A increase of 6% (3% increase on a same-store basis)
  • Operating income of $395 million (operating margin of 10.7%)
  • Earnings per share of $6.69 versus $7.25 last year
  • Operating cash flow improved by $250 million compared to last year ($161 million of cash flow in 2024 versus an $89 million cash use in 2023)

Sales trends (excluding acquisitions)

  • 4% increase in HVAC equipment (70% of sales)
  • 3% decline in other HVAC products (26% of sales)
  • 2% increase in commercial refrigeration products (4% of sales)

Mr. Nahmad further commented: “Given our strong balance sheet and solid cash flow, Watsco is well-positioned to invest in future growth opportunities to expand our business. We look forward to investing in market share opportunities as the upcoming regulatory change and product transitions unfold. We are also prepared to partner with other great family businesses in our industry. Our scale, technology and entrepreneurial culture gives us confidence in the growth outlook.”

Technology Transformation
Watsco has developed the industry’s leading digital ecosystem of technologies that transform the customer experience and reshape how our industry operates. Through platforms like HVAC Pro+ and OnCallAir®, Watsco has enabled above-market growth for its customers and, in turn, has made it easier for contractors to do business thereby improving their speed, efficiency and profitability. Updates to our various technology initiatives include:

  • Product Information Management (PIM), Watsco’s repository of rich product information, is delivered seamlessly through its mobile apps and e-commerce platform. Watsco’s PIM database contains more than 1.5 million SKUs accessible to more than 375,000 contractors and technicians annually.
  • HVAC Pro+ Mobile Apps provide contractors real-time access to critical information that improves speed to market and enhances efficiency for the customer. This includes real-time technical support, product specifications, inventory availability, warranty look-up and processing, system matchups, e-commerce, and much more. The community of authenticated users (those linked to an e-commerce account) over the 12-month period ended June 30, 2024 expanded 12% to approximately 60,000 users.
  • E-commerce sales continue to outpace overall sales growth rates, growing 13% during the quarter and accounting for 36% of total sales (inclusive of revenues from recently acquired businesses), and in some regions, exceed 60% of total sales.
  • OnCallAir®, Watsco’s digital sales platform, has increased penetration among HVAC contractors as digital engagement with homeowners expands. The annualized gross merchandise value (GMV) of products sold by customers through OnCallAir® was approximately $1.4 billion for the twelve-month period ended June 30, 2024. During the first-half of 2024, OnCallAir® presented quotes to approximately 160,000 households, an 18% increase, and generated $743 million GMV, a 27% increase, versus the comparable period last year.

A.J. Nahmad, Watsco’s President, commented: “We continue to make good progress towards our goal of scaling Watsco’s customer-focused technologies to more and more contractors. Our e-commerce sales grew at nearly double the rate of overall sales, indicating more progress in scaling our industry-leading tools and platforms. We are also engaging with more contractors and technicians than ever before through our mobile platforms, which should generate more operating efficiencies over time. I am encouraged by our progress and we have produced great results, but I feel the bulk of the benefit from our technology investments remains ahead of us.”

Long-Term Growth Drivers
In addition to the Company’s unique technology investments that are expected to drive future growth, Watsco believes that various industry-driven catalysts will support continued growth and profitability in the years ahead. These industry catalysts – coupled with Watsco’s scale, technology platforms, OEM relationships and entrepreneurial culture – are competitive advantages that we believe position us favorably over the long-term.

Regulatory Changes. New energy efficiency standards and a new generation of refrigerants translate to more product innovation, improved homeowner energy efficiency, reduced carbon footprint of end-users, and increased average selling prices over time.

Technology Investments. Watsco is investing to enhance its technology advantage in the HVAC/R distribution industry. Customers who become active users of our technology platforms produce higher growth rates and exhibit approximately 50% less attrition. Consequently, the Company believes that increased technology adoption by more contractors will aid future growth and profitability and will lower the Company’s overall cost to serve its customers. Watsco has also invested in numerous internal technology platforms with the goal of further enhancing margins and improving operating efficiencies.

Electrification of Heating Systems. Regulatory catalysts and electrification trends are also influencing the adoption of heat pump HVAC systems in lieu of traditional gas furnaces and other forms of fossil-fuel heating. For the twelve-month period ended June 30, 2024, sales of heat pump HVAC systems exceeded $1.2 billion and continued to outpace growth rates for conventional straight-cool HVAC systems.

Growth of Ductless HVAC Systems. The growing acceptance of ductless HVAC systems in both residential and commercial applications is also a long-term growth driver. We are the leading distributor of ductless products in North America, representing approximately 20 brands manufactured around the world. Long-term growth in sales of ductless HVAC systems continue to outpace growth rates of conventional ducted HVAC systems.

Buy and Build Acquisition Strategy. Watsco has been the partner of choice for 69 market-leading independent distributors, and these acquisitions are an important long-term driver of the Company’s growth and scale. Our “buy and build” strategy builds upon their long-standing legacies through investment in new locations, new products and by leveraging Watsco’s technology platforms. The $64 billion HVAC/R distribution landscape in North America is still highly fragmented with an estimated 2,200 independent distributors.

Cash Flow, Financial Strength and Liquidity
Watsco’s strong balance sheet and liquidity are key components of the Company’s ability to drive growth across any industry or macroeconomic cycle. As of June 30, 2024, Watsco had $425 million of cash and short-term investments and no borrowings under its unsecured $600 million credit facility, providing significant access to capital to invest in new growth opportunities. In March 2024, the Company raised $282 million of new capital from the sale of 712,000 shares of Common stock under its ATM program. We have executed a supplemental ATM program in May 2024 providing equity sales capacity of $400 million.

Watsco has paid dividends for 50 consecutive years. The Company increased its annual dividend rate by 10%, effective in April 2024, to $10.80 per share. The Company’s philosophy is to share increasing amounts of cash flow through higher dividends while maintaining a conservative financial position with continued capacity to build its network. Future dividend increases will be considered in light of investment opportunities, general economic conditions and the Company’s overall financial position.

Second Quarter Earnings Conference Call Information
Date and time: July 30, 2024 at 10:00 a.m. (EDT)
Webcast: http://investors.watsco.com (a replay will be available on the Company’s website)
Dial-in number: United States (844) 883-3908 / International (412) 317-9254

Use of Non-GAAP Financial Information
This release discloses certain performance measures on a “same-store basis”, which are non-GAAP and excludes the effects of locations closed, acquired or locations opened, in each case during the immediately preceding 12 months, unless such locations are within close geographical proximity to existing locations. The Company believes this information provides greater comparability regarding its ongoing operating performance. These measures should not be considered an alternative to measurements presented in accordance with U.S. GAAP.

About Watsco
Watsco operates the largest distribution network for heating, air conditioning and refrigeration (HVAC/R) products with locations in the United States, Canada, Mexico, and Puerto Rico, and on an export basis to Latin America and the Caribbean.

We focus on the replacement market, which has increased in size and importance as a result of the aging of installed systems, the introduction of higher energy efficient models and the necessity of HVAC products in homes and businesses. According to data published in March 2023 by the Energy Information Administration, there are approximately 102 million HVAC systems installed in the United States that have been in service for more than 10 years, most of which operate well below current minimum efficiency standards.

Accordingly, Watsco has the opportunity to be a significant and important contributor toward climate change as it plays an important role to lower CO2e emissions. According to the Department of Energy, HVAC systems account for roughly half of U.S. household energy consumption. As such, replacing older systems at higher efficiency levels is a critical means for homeowners to reduce electricity consumption and their carbon footprint.

Based on estimates validated by independent sources, Watsco averted an estimated 20.9 million metric tons of CO2e emissions from January 1, 2020 to June 30, 2024 through the sale of replacement HVAC systems at higher-efficiency standards, an equivalent of removing 5.0 million gas powered vehicles annually off the road. More information, including sources and assumptions used to support the Company’s estimates, can be found at www.watsco.com.

This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, the seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments.

Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.

 

WATSCO, INC.
Condensed Consolidated Results of Operations
(In thousands, except share and per share data)
(Unaudited)
 Quarter Ended June 30, Six Months Ended June 30,
 2024 2023 2024 2023
Revenues$2,139,328  $2,003,084  $3,704,319  $3,553,725 
Cost of sales 1,559,568   1,440,462   2,693,934   2,542,946 
Gross profit 579,760   562,622   1,010,385   1,010,779 
Gross profit margin 27.1%  28.1%  27.3%  28.4%
SG&A expenses 319,029   304,155   628,577   591,212 
Other income 8,072   7,238   13,532   10,878 
Operating income 268,803   265,705   395,340   430,445 
Operating margin 12.6%  13.3%  10.7%  12.1%
Interest (income) expense, net (4,913)  3,415   (7,383)  4,030 
Income before income taxes 273,716   262,290   402,723   426,415 
Income taxes 59,065   56,887   83,810   90,641 
Net income 214,651   205,403   318,913   335,774 
Less: net income attributable to non-controlling interest 33,241   32,639   50,499   52,937 
Net income attributable to Watsco$181,410  $172,764  $268,414  $282,837 
        
Diluted earnings per share:       
Net income attributable to Watsco shareholders$181,410  $172,764  $268,414  $282,837 
Less: distributed and undistributed earnings allocated to restricted common stock 12,608   11,916   18,788   19,322 
Earnings allocated to Watsco shareholders$168,802  $160,848  $249,626  $263,515 
        
Weighted-average Common and Class B common shares and equivalent shares used to calculate diluted earnings per share 37,627,637   36,429,937   37,313,593   36,366,237 
        
Diluted earnings per share for Common and Class B common stock$4.49  $4.42  $6.69  $7.25 
                

 

WATSCO, INC.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
 June 30, December 31,
 2024 2023
    
Cash and cash equivalents$224,854 $210,112
Short-term cash investments 200,000  -
Accounts receivable, net 1,001,329  797,832
Inventories, net 1,573,496  1,347,289
Other 34,718  36,698
Total current assets 3,034,397  2,391,931
    
Property and equipment, net 138,301  136,230
Operating lease right-of-use assets 384,816  368,748
Goodwill, intangibles, net and other 837,810  832,273
Total assets$4,395,324 $3,729,182
    
Accounts payable and accrued expenses$840,758 $611,747
Current portion of lease liabilities 104,409  100,265
Total current liabilities 945,167  712,012
    
Borrowings under revolving credit agreement -  15,400
Operating lease liabilities, net of current portion 307,118  289,127
Deferred income taxes and other liabilities 98,849  96,453
Total liabilities 1,351,134  1,112,992
    
Watsco's shareholders’ equity 2,610,837  2,229,839
Non-controlling interest 433,353  386,351
Shareholders’ equity 3,044,190  2,616,190
Total liabilities and shareholders’ equity$4,395,324 $3,729,182
      


WATSCO, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
 Six Months Ended June 30,
 2024 2023
Cash flows from operating activities:   
Net income$318,913  $335,774 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:   
Depreciation and amortization 19,893   16,615 
Share-based compensation 16,517   13,529 
Non-cash contribution to 401(k) plan 8,735   8,862 
Provision for doubtful accounts 1,569   1,405 
Other income from investment in unconsolidated entity (13,532)  (10,878)
Other, net 3,862   2,961 
Changes in operating assets and liabilities, net of effects of acquisitions   
Accounts receivable, net (203,962)  (243,440)
Inventories, net (225,984)  (313,634)
Accounts payable and other liabilities 233,517   103,442 
Other, net 1,913   (3,815)
Net cash provided by (used in) operating activities 161,441   (89,179)
    
Cash flows from investing activities:   
Purchases of short-term cash investments (200,000)  - 
Capital expenditures, net (12,142)  (14,599)
Business acquisitions, net of cash acquired (5,173)  (2,989)
Net cash used in investing activities (217,315)  (17,588)
    
Cash flows from financing activities:   
Net proceeds from the sale of Common stock 281,784   15,179 
Net (repayments) proceeds under revolving credit agreement (15,400)  286,500 
Dividends on Common and Class B Common stock (205,568)  (190,409)
Other, net 12,994   9,198 
Net cash provided by financing activities 73,810   120,468 
Effect of foreign exchange rate changes on cash and cash equivalents (3,194)  1,320 
Net increase in cash and cash equivalents 14,742   15,021 
Cash and cash equivalents at beginning of period 210,112   147,505 
Cash and cash equivalents at end of period$224,854  $162,526 
        

Barry S. Logan
Executive Vice President
(305) 714-4102
e-mail: blogan@watsco.com


FAQ

What was Watsco's (WSO) revenue growth in Q2 2024?

Watsco's revenue increased 7% to a record $2.1 billion in Q2 2024, with 4% growth on a same-store basis.

How much did Watsco's (WSO) e-commerce sales grow in Q2 2024?

Watsco's e-commerce sales grew 13% during Q2 2024, accounting for 36% of total sales.

What was Watsco's (WSO) earnings per share in Q2 2024?

Watsco reported earnings per share of $4.49 in Q2 2024, compared to $4.42 in the same quarter last year.

How much cash does Watsco (WSO) have on its balance sheet as of June 30, 2024?

As of June 30, 2024, Watsco had $425 million in cash and short-term investments, with no borrowings under its credit facility.

Watsco, Inc.

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22.02B
35.04M
0.63%
106%
6.53%
Industrial Distribution
Wholesale-hardware & Plumbing & Heating Equipment & Supplies
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United States of America
COCONUT GROVE