Watsco Achieves Record Sales, EPS, Operating Margins, and Cash Flow
Chairman and CEO Albert H. Nahmad states, “Overall, our results represent a nice finish to another excellent year”
MIAMI — HVACR distributor Watsco Inc. reported record results for the fourth quarter and the year ended Dec. 31, 2015.
Highlights of the company’s fourth quarter results included: 9 percent earnings per share (EPS) growth to a record 75 cents; 4 percent operating income increase to a record $54 million; 10 basis-point expansion in operating margins to a record 6 percent; 20 basis-point improvement in gross margin; and 3 percent sales growth to a record $904 million (4 percent on same-store basis).
Sales trends for the quarter were: 6 percent HVAC equipment growth (65 percent of sales), including 8 percent growth in the U.S.; flat sales for other HVAC products (30 percent of sales); and a 4 percent increase in commercial refrigeration products (5 percent of sales).
Albert H. Nahmad, Watsco’s chairman and CEO, stated, “Watsco produced another solid quarter of earnings growth, with expanded operating margins on record sales, market share gains and record cash flow. We experienced consistent growth in both residential and commercial markets, with continued strength in sales of high-efficiency replacement systems. These results are particularly satisfying given the blockbuster results we achieved in the fourth quarter of 2014. Overall, our results represent a nice finish to another excellent year.”
Highlights of the company’s full year results included: 13 percent earnings per share growth to a record $4.90; 10 percent operating income increase to a record $337 million; 40 basis-point expansion in operating margins to a record 8.2 percent; 30 basis-point improvement in gross profit margin; 20 basis-point reduction in selling, general, and administrative expenses (SG&A) as a percentage of sales to a record low; and 4 percent sales growth to a record $4.11 billion (5 percent on a same-store basis).
Sales trends for the year were: 7 percent HVAC equipment growth (66 percent of sales), including 8 percent growth in the U.S.; 2 percent increase in other HVAC products (29 percent of sales); and a 2 percent increase in commercial refrigeration products (5 percent of sales).
Nahmad added, “2015 was an outstanding year for Watsco, which we believe highlights the stability and consistency of our company. We are especially proud of achieving record operating margins given the substantial investments we have made in products, technology, and people to drive long-term performance and innovation in our business.”
For more information, visit www.watsco.com.
Publication date: 2/15/2016