Watsco Inc. Reports Record Year
COCONUT GROVE, Fla. — Watsco Inc. reported record revenues, net income, and earnings per share for its fourth quarter and full year ended Dec. 31, 2013.
In the fourth quarter of last year, revenues increased 8 percent to a record $827 million, reflecting a 10 percent increase in sales of HVAC equipment, a 5 percent increase in sales of other HVAC products, and a 2 percent decrease in sales of commercial refrigeration products.
Gross profit increased 9 percent to a record $199 million with gross profit margin improving 10 basis-points.
"Watsco delivered another solid quarter of earnings growth from higher sales, improved selling margins and the continued effort of our business units to manage operating costs," said Albert Nahmad, Watsco's president and CEO. "We saw strength in sales of residential HVAC systems in the United States, which grew 17 percent, from a combination of strong unit demand and a better sales mix of higher-efficiency systems. Overall, our results represent a great finish to another excellent year."
As for the full year results, earnings per share increased 21 percent to a record $3.68 compared to $3.03 in 2012 on an adjusted basis. Operating income increased 21 percent to a record $271 million with operating margins improving 70 basis-points to 7.2 percent. Same-store operating profit increased 19 percent with operating margins improving 70 basis-points. Net income increased 24 percnet to a record $128 million. Revenues increased 9 percent to a record $3.74 billion.
Same-store sales increased 7 percent reflecting a 9 percent increase in HVAC equipment, a 3 percent increase in other HVAC products, and a 3 percent increase in commercial refrigeration products.
Gross profit increased 10 percent to a record $899 million with gross margin increasing 30 basis-points.
"Last year was another great year, which we believe highlights the stability and consistency of our company," said Nahmad. "Our team did a super job of managing the business and took advantage of opportunities in the markets to drive the business and optimize performance. Watsco's scale, access to capital, commitment to innovation, and long-standing vendor relationships are all at the disposal of our most important asset — the local branches that serve our contractor customers."
For more information, visit www.watsco.com.