July 30, 2012: Watsco Sets Records for Sales, Operating Profit, and EPS During Second Quarter
MIAMI — HVACR distributor, Watsco Inc., reported results for the second quarter ended June 30, 2012, and announced that revenues increased 15 percent to a record $1 billion, including $114 million of sales added by new locations. Same-store sales increased 2 percent, reflecting a 5 percent increase in HVAC equipment (63 percent of sales), a 4 percent decrease in other HVAC products (33 percent of sales), and a 16 percent increase in commercial refrigeration products (4 percent of sales).
Gross profit increased 12 percent to a record $238 million. Gross profit margin (on an overall and same-store basis) declined 50 basis-points to 23.6 percent, reflecting primarily a higher sales mix of HVAC equipment and growth in sales of commercial products, both of which generate lower gross margins than non-equipment products.