☒ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 |
FLORIDA | 59-0778222 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common stock, $0.50 par value | WSO | New York Stock Exchange | ||
Class B common stock, $0.50 par value | WSOB | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Page No. | ||||||
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9 | ||||||
Item 2. | 15 | |||||
Item 3. | ||||||
Item 4. | ||||||
Item 1. | ||||||
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Item 1A. | 24 | |||||
Item 5. | 24 | |||||
Item 6. | 25 | |||||
26 | ||||||
EXHIBITS |
ITEM 1. CONDENSED CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS |
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenues | $ | 2,133,755 | $ | 1,849,640 | $ | 3,657,325 | $ | 2,985,758 | ||||||||
Cost of sales | 1,538,222 | 1,371,699 | 2,611,434 | 2,212,996 | ||||||||||||
Gross profit | 595,533 | 477,941 | 1,045,891 | 772,762 | ||||||||||||
Selling, general and administrative expenses | 314,753 | 266,697 | 598,107 | 484,309 | ||||||||||||
Other income | 6,317 | 5,539 | 10,362 | 10,210 | ||||||||||||
Operating income | 287,097 | 216,783 | 458,146 | 298,663 | ||||||||||||
Interest expense, net | 1,110 | 448 | 1,668 | 536 | ||||||||||||
Income before income taxes | 285,987 | 216,335 | 456,478 | 298,127 | ||||||||||||
Income taxes | 60,481 | 44,202 | 96,082 | 59,867 | ||||||||||||
Net income | 225,506 | 172,133 | 360,396 | 238,260 | ||||||||||||
Less: net income attributable to non-controlling interest | 32,949 | 28,031 | 54,541 | 39,066 | ||||||||||||
Net income attributable to Watsco, Inc. | $ | 192,557 | $ | 144,102 | $ | 305,855 | $ | 199,194 | ||||||||
Earnings per share for Common and Class B common stock: | ||||||||||||||||
Basic | $ | 4.94 | $ | 3.73 | $ | 7.86 | $ | 5.16 | ||||||||
Diluted | $ | 4.93 | $ | 3.71 | $ | 7.83 | $ | 5.13 | ||||||||
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenues | $ | 2,003,084 | $ | 2,133,755 | $ | 3,553,725 | $ | 3,657,325 | ||||||||
Cost of sales | 1,440,462 | 1,538,222 | 2,542,946 | 2,611,434 | ||||||||||||
Gross profit | 562,622 | 595,533 | 1,010,779 | 1,045,891 | ||||||||||||
Selling, general and administrative expenses | 304,155 | 314,753 | 591,212 | 598,107 | ||||||||||||
Other income | 7,238 | 6,317 | 10,878 | 10,362 | ||||||||||||
Operating income | 265,705 | 287,097 | 430,445 | 458,146 | ||||||||||||
Interest expense, net | 3,415 | 1,110 | 4,030 | 1,668 | ||||||||||||
Income before income taxes | 262,290 | 285,987 | 426,415 | 456,478 | ||||||||||||
Income taxes | 56,887 | 60,481 | 90,641 | 96,082 | ||||||||||||
Net income | 205,403 | 225,506 | 335,774 | 360,396 | ||||||||||||
Less: net income attributable to non-controlling interest | 32,639 | 32,949 | 52,937 | 54,541 | ||||||||||||
Net income attributable to Watsco, Inc. | $ | 172,764 | $ | 192,557 | $ | 282,837 | $ | 305,855 | ||||||||
Earnings per share for Common and Class B common stock: | ||||||||||||||||
Basic | $ | 4.43 | $ | 4.94 | $ | 7.27 | $ | 7.86 | ||||||||
Diluted | $ | 4.42 | $ | 4.93 | $ | 7.25 | $ | 7.83 | ||||||||
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net income | $ | 225,506 | $ | 172,133 | $ | 360,396 | $ | 238,260 | ||||||||
Other comprehensive (loss) income, net of tax | ||||||||||||||||
Foreign currency translation adjustment | (9,381 | ) | 4,016 | (5,000 | ) | 7,473 | ||||||||||
Unrealized (loss) gain on cash flow hedging instruments | — | (6 | ) | — | 70 | |||||||||||
Reclassification of (gain) loss on cash flow hedging instruments into earnings | — | (22 | ) | — | 221 | |||||||||||
Other comprehensive (loss) income | (9,381 | ) | 3,988 | (5,000 | ) | 7,764 | ||||||||||
Comprehensive income | 216,125 | 176,121 | 355,396 | 246,024 | ||||||||||||
Less: comprehensive income attributable to non-controlling interest | 29,833 | 29,370 | 52,871 | 41,707 | ||||||||||||
Comprehensive income attributable to Watsco, Inc. | $ | 186,292 | $ | 146,751 | $ | 302,525 | $ | 204,317 | ||||||||
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income | $ | 205,403 | $ | 225,506 | $ | 335,774 | $ | 360,396 | ||||||||
Other comprehensive income (loss), net of tax Foreign currency translation adjustment | 7,115 | (9,381 | ) | 7,375 | (5,000 | ) | ||||||||||
Other comprehensive income (loss) | 7,115 | (9,381 | ) | 7,375 | (5,000 | ) | ||||||||||
Comprehensive income | 212,518 | 216,125 | 343,149 | 355,396 | ||||||||||||
Less: comprehensive income attributable to non-controlling interest | 34,974 | 29,833 | 55,362 | 52,871 | ||||||||||||
Comprehensive income attributable to Watsco, Inc. | $ | 177,544 | $ | 186,292 | $ | 287,787 | $ | 302,525 | ||||||||
June 30, 2023 | December 31, 2022 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 162,526 | $ | 147,505 | ||||
Accounts receivable, net | 990,663 | 747,110 | ||||||
Inventories, net | 1,689,309 | 1,370,173 | ||||||
Other current assets | 40,070 | 33,951 | ||||||
Total current assets | 2,882,568 | 2,298,739 | ||||||
Property and equipment, net | 128,065 | 125,424 | ||||||
Operating lease right-of-use | 334,376 | 317,314 | ||||||
Goodwill | 431,592 | 430,711 | ||||||
Intangible assets, net | 175,766 | 175,191 | ||||||
Investment in unconsolidated entity | 141,082 | 132,802 | ||||||
Other assets | 9,562 | 8,033 | ||||||
$ | 4,103,011 | $ | 3,488,214 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of long-term obligations | $ | 93,099 | $ | 90,597 | ||||
Borrowings under revolving credit agreement | — | 56,400 | ||||||
Accounts payable | 602,462 | 456,128 | ||||||
Accrued expenses and other current liabilities | 260,438 | 303,397 | ||||||
Total current liabilities | 955,999 | 906,522 | ||||||
Long-term obligations: | ||||||||
Borrowings under revolving credit agreement | 342,900 | — | ||||||
Operating lease liabilities, net of current portion | 247,928 | 232,144 | ||||||
Finance lease liabilities, net of current portion | 10,975 | 11,388 | ||||||
Total long-term obligations | 601,803 | 243,532 | ||||||
Deferred income taxes and other liabilities | 93,159 | 89,882 | ||||||
Commitments and contingencies | ||||||||
Watsco, Inc. shareholders’ equity: | ||||||||
Common stock, $0.50 par value | 19,155 | 19,054 | ||||||
Class B common stock, $0.50 par value | 2,791 | 2,757 | ||||||
Preferred stock, $0.50 par value | — | — | ||||||
Paid-in capital | 1,023,147 | 973,060 | ||||||
Accumulated other comprehensive loss, net of tax | (42,760 | ) | (47,710 | ) | ||||
Retained earnings | 1,121,944 | 1,029,516 | ||||||
Treasury stock, at cost | (86,630 | ) | (87,440 | ) | ||||
Total Watsco, Inc. shareholders’ equity | 2,037,647 | 1,889,237 | ||||||
Non-controlling interest | 414,403 | 359,041 | ||||||
Total shareholders’ equity | 2,452,050 | 2,248,278 | ||||||
$ | 4,103,011 | $ | 3,488,214 | |||||
June 30, 2022 | December 31, 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 129,049 | $ | 118,268 | ||||
Accounts receivable, net | 983,033 | 698,456 | ||||||
Inventories, net | 1,480,519 | 1,115,469 | ||||||
Other current assets | 31,330 | 29,207 | ||||||
Total current assets | 2,623,931 | 1,961,400 | ||||||
Property and equipment, net | 119,525 | 111,019 | ||||||
Operating lease right-of-use | 298,223 | 268,528 | ||||||
Goodwill | 432,777 | 434,019 | ||||||
Intangible assets, net | 183,133 | 186,896 | ||||||
Investment in unconsolidated entity | 122,831 | 114,808 | ||||||
Other assets | 8,172 | 9,191 | ||||||
$ | 3,788,592 | $ | 3,085,861 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of long-term obligations | $ | 88,600 | $ | 84,501 | ||||
Accounts payable | 625,962 | 364,185 | ||||||
Accrued expenses and other current liabilities | 346,781 | 278,036 | ||||||
Total current liabilities | 1,061,343 | 726,722 | ||||||
Long-term obligations: | ||||||||
Borrowings under revolving credit agreement | 203,600 | 89,000 | ||||||
Operating lease liabilities, net of current portion | 213,344 | 187,024 | ||||||
Finance lease liabilities, net of current portion | 10,204 | 9,189 | ||||||
Total long-term obligations | 427,148 | 285,213 | ||||||
Deferred income taxes and other liabilities | 80,326 | 76,511 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Watsco, Inc. shareholders’ equity: | ||||||||
Common stock, $0.50 par value | 19,007 | 18,941 | ||||||
Class B common stock, $0.50 par value | 2,918 | 2,895 | ||||||
Preferred stock, $0.50 par value | — | — | ||||||
Paid-in capital | 1,032,291 | 1,003,932 | ||||||
Accumulated other comprehensive loss, net of tax | (37,506 | ) | (34,176 | ) | ||||
Retained earnings | 905,167 | 760,796 | ||||||
Treasury stock, at cost | (87,440 | ) | (87,440 | ) | ||||
Total Watsco, Inc. shareholders’ equity | 1,834,437 | 1,664,948 | ||||||
Non-controlling interest | 385,338 | 332,467 | ||||||
Total shareholders’ equity | 2,219,775 | 1,997,415 | ||||||
$ | 3,788,592 | $ | 3,085,861 | |||||
(In thousands, except share and per share data) | Common Stock, Class B Common Stock and Preferred Stock Shares | Common Stock, Class B Common Stock and Preferred Stock Amount | Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Non- controlling Interest | Total | ||||||||||||||||||||||||
Balance at December 31, 2022 | 38,749,887 | $ | 21,811 | $ | 973,060 | $ | (47,710 | ) | $ | 1,029,516 | $ | (87,440 | ) | $ | 359,041 | $ | 2,248,278 | |||||||||||||||
Net income | 110,073 | 20,298 | 130,371 | |||||||||||||||||||||||||||||
Other comprehensive income | 170 | 90 | 260 | |||||||||||||||||||||||||||||
Issuances of restricted shares of common stock | 116,510 | 58 | (58 | ) | — | |||||||||||||||||||||||||||
Forfeitures of restricted shares of common stock | (2,000 | ) | (1 | ) | 1 | — | ||||||||||||||||||||||||||
Common stock contribution to 401(k) plan | 35,533 | 18 | 8,844 | 8,862 | ||||||||||||||||||||||||||||
Stock issuances from exercise of stock options and employee stock purchase plan | 75,186 | 38 | 12,947 | 12,985 | ||||||||||||||||||||||||||||
Issuance of Class B common stock | 632 | — | 200 | 200 | ||||||||||||||||||||||||||||
Retirement of common stock | (21,702 | ) | (11 | ) | (6,441 | ) | (6,452 | ) | ||||||||||||||||||||||||
Share-based compensation | 8,763 | 8,763 | ||||||||||||||||||||||||||||||
Cash dividends declared and paid on Common and Class B common stock, $ 2.45 per share | (94,970 | ) | (94,970 | ) | ||||||||||||||||||||||||||||
Balance at March 31, 2023 | 38,954,046 | 21,913 | 997,316 | (47,540 | ) | 1,044,619 | (87,440 | ) | 379,429 | 2,308,297 | ||||||||||||||||||||||
Net income | 172,764 | 32,639 | 205,403 | |||||||||||||||||||||||||||||
Other comprehensive income | 4,780 | 2,335 | 7,115 | |||||||||||||||||||||||||||||
Issuances of restricted shares of common stock | 38,000 | 19 | (19 | ) | — | |||||||||||||||||||||||||||
Forfeitures of restricted shares of common stock | (467 | ) | — | — | — | |||||||||||||||||||||||||||
Stock issuances from exercise of stock options and employee stock purchase plan | 30,794 | 15 | 5,622 | 5,637 | ||||||||||||||||||||||||||||
Retirement of common stock | (1,737 | ) | (1 | ) | (594 | ) | (595 | ) | ||||||||||||||||||||||||
Share-based compensation | 6,828 | 6,828 | ||||||||||||||||||||||||||||||
Net proceeds from the sale of Common stock | 45,000 | 13,994 | 810 | 14,804 | ||||||||||||||||||||||||||||
Cash dividends declared and paid on Common and Class B common stock, $ 2.45 per share | (95,439 | ) | (95,439 | ) | ||||||||||||||||||||||||||||
Balance at June 30, 2023 | 39,065,636 | $ | 21,946 | $ | 1,023,147 | $ | (42,760 | ) | $ | 1,121,944 | $ | (86,630 | ) | $ | 414,403 | $ | 2,452,050 | |||||||||||||||
(In thousands, except share and per share data) | Common Stock, Class B Common Stock and Preferred Stock Shares | Common Stock, Class B Common Stock and Preferred Stock Amount | Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Non- controlling Interest | Total | ||||||||||||||||||||||||
Balance at December 31, 2021 | 38,799,632 | $ | 21,836 | $ | 1,003,932 | $ | (34,176 | ) | $ | 760,796 | $ | (87,440 | ) | $ | 332,467 | $ | 1,997,415 | |||||||||||||||
Net income | 113,298 | 21,592 | 134,890 | |||||||||||||||||||||||||||||
Other comprehensive income | 2,935 | 1,446 | 4,381 | |||||||||||||||||||||||||||||
Issuances of restricted shares of common stock | 105,882 | 53 | (53 | ) | — | |||||||||||||||||||||||||||
Common stock contribution to 401(k) plan | 21,532 | 11 | 6,726 | 6,737 | ||||||||||||||||||||||||||||
Stock issuances from exercise of stock options and employee stock purchase plan | 24,850 | 12 | 4,408 | 4,420 | ||||||||||||||||||||||||||||
Share-based compensation | 8,667 | 8,667 | ||||||||||||||||||||||||||||||
Cash dividends declared and paid on Common and Class B common stock, $ 1.95 per share | (75,795 | ) | (75,795 | ) | ||||||||||||||||||||||||||||
Balance at March 31, 2022 | 38,951,896 | 21,912 | 1,023,680 | (31,241 | ) | 798,299 | (87,440 | ) | 355,505 | 2,080,715 | ||||||||||||||||||||||
Net income | 192,557 | 32,949 | 225,506 | |||||||||||||||||||||||||||||
Other comprehensive (loss) | (6,265 | ) | (3,116 | ) | (9,381 | ) | ||||||||||||||||||||||||||
Issuances of restricted shares of common stock | 21,177 | 11 | (11 | ) | — | |||||||||||||||||||||||||||
Forfeitures of restricted shares of common stock | (10,000 | ) | (5 | ) | 5 | — | ||||||||||||||||||||||||||
Common stock contribution to 401(k) plan | 28 | — | 9 | 9 | ||||||||||||||||||||||||||||
Stock issuances from exercise of stock options and employee stock purchase plan | 21,939 | 11 | 3,796 | 3,807 | ||||||||||||||||||||||||||||
Retirement of common stock | (8,181 | ) | (4 | ) | (2,175 | ) | (2,179 | ) | ||||||||||||||||||||||||
Share-based compensation | 6,987 | 6,987 | ||||||||||||||||||||||||||||||
Cash dividends declared and paid on Common and Class B common stock, $ 2.20 per share | (85,689 | ) | (85,689 | ) | ||||||||||||||||||||||||||||
Balance at June 30, 2022 | 38,976,859 | $ | 21,925 | $ | 1,032,291 | $ | (37,506 | ) | $ | 905,167 | $ | (87,440 | ) | $ | 385,338 | $ | 2,219,775 | |||||||||||||||
(In thousands, except share and per share data) | Common Stock, Class B Common Stock and Preferred Stock Shares | Common Stock, Class B Common Stock and Preferred Stock Amount | Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Non- Interest | Total | ||||||||||||||||||||||||
Balance at December 31, 2021 | 38,799,632 | $ | 21,836 | $ | 1,003,932 | $ | (34,176 | ) | $ | 760,796 | $ | (87,440 | ) | $ | 332,467 | $ | 1,997,415 | |||||||||||||||
Net income | 113,298 | 21,592 | 134,890 | |||||||||||||||||||||||||||||
Other comprehensive income | 2,935 | 1,446 | 4,381 | |||||||||||||||||||||||||||||
Issuances of non-vested restricted shares of common stock | 105,882 | 53 | (53 | ) | — | |||||||||||||||||||||||||||
Common stock contribution to 401(k) plan | 21,532 | 11 | 6,726 | 6,737 | ||||||||||||||||||||||||||||
Stock issuances from exercise of stock options and employee stock purchase plan | 24,850 | 12 | 4,408 | 4,420 | ||||||||||||||||||||||||||||
Share-based compensation | 8,667 | 8,667 | ||||||||||||||||||||||||||||||
Cash dividends declared and paid on Common and Class B common stock, $1.95 per share | (75,795 | ) | (75,795 | ) | ||||||||||||||||||||||||||||
Balance at March 31, 2022 | 38,951,896 | 21,912 | 1,023,680 | (31,241 | ) | 798,299 | (87,440 | ) | 355,505 | 2,080,715 | ||||||||||||||||||||||
Net income | 192,557 | 32,949 | 225,506 | |||||||||||||||||||||||||||||
Other comprehensive (loss) | (6,265 | ) | (3,116 | ) | (9,381 | ) | ||||||||||||||||||||||||||
Issuances of non-vested restricted shares of common stock | 21,177 | 11 | (11 | ) | — | |||||||||||||||||||||||||||
Forfeitures of non-vested restricted shares of common stock | (10,000 | ) | (5 | ) | 5 | — | ||||||||||||||||||||||||||
Common stock contribution to 401(k) plan | 28 | — | 9 | 9 | ||||||||||||||||||||||||||||
Stock issuances from exercise of stock options and employee stock purchase plan | 21,939 | 11 | 3,796 | 3,807 | ||||||||||||||||||||||||||||
Retirement of common stock | (8,181 | ) | (4 | ) | (2,175 | ) | (2,179 | ) | ||||||||||||||||||||||||
Share-based compensation | 6,987 | 6,987 | ||||||||||||||||||||||||||||||
Cash dividends declared and paid on Common and Class B common stock, $2.20 per share | (85,689 | ) | (85,689 | ) | ||||||||||||||||||||||||||||
Balance at June 30, 2022 | 38,976,859 | $ | 21,925 | $ | 1,032,291 | $ | (37,506 | ) | $ | 905,167 | $ | (87,440 | ) | $ | 385,338 | $ | 2,219,775 | |||||||||||||||
( In thousands, except share and per sharedata) | Common Stock, Class B Common Stock and Preferred Stock Shares | Common Stock, Class B Common Stock and Preferred Stock Amount | Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Non- Interest | Total | ||||||||||||||||||||||||
Balance at December 31, 2020 | 38,521,694 | $ | 21,697 | $ | 950,915 | $ | (34,867 | ) | $ | 636,373 | $ | (87,440 | ) | $ | 293,083 | $ | 1,779,761 | |||||||||||||||
Net income | 55,092 | 11,035 | 66,127 | |||||||||||||||||||||||||||||
Other comprehensive income | 2,474 | 1,302 | 3,776 | |||||||||||||||||||||||||||||
Issuances of non-vested restricted shares of common stock | 121,934 | 61 | (61 | ) | — | |||||||||||||||||||||||||||
Forfeitures of non-vested restricted shares of common stock | (43,000 | ) | (21 | ) | 21 | — | ||||||||||||||||||||||||||
Common stock contribution to 401(k) plan | 22,752 | 11 | 5,143 | 5,154 | ||||||||||||||||||||||||||||
Stock issuances from exercise of stock options and employee stock purchase plan | 24,735 | 12 | 3,862 | 3,874 | ||||||||||||||||||||||||||||
Share-based compensation | 6,656 | 6,656 | ||||||||||||||||||||||||||||||
Cash dividends declared and paid on Common and Class B common stock, $1.775 per share | (68,521 | ) | (68,521 | ) | ||||||||||||||||||||||||||||
Balance at March 31, 2021 | 38,648,115 | 21,760 | 966,536 | (32,393 | ) | 622,944 | (87,440 | ) | 305,420 | 1,796,827 | ||||||||||||||||||||||
Net income | 144,102 | 28,031 | 172,133 | |||||||||||||||||||||||||||||
Other comprehensive income | 2,649 | 1,339 | 3,988 | |||||||||||||||||||||||||||||
Issuances of non-vested restricted shares of common stock | 44,881 | 22 | (22 | ) | — | |||||||||||||||||||||||||||
Forfeitures of non-vested restricted shares of common stock | (7,589 | ) | (4 | ) | 4 | — | ||||||||||||||||||||||||||
Stock issuances from exercise of stock options and employee stock purchase plan | 34,311 | 18 | 5,658 | 5,676 | ||||||||||||||||||||||||||||
Retirement of common stock | (2,965 | ) | (1 | ) | (862 | ) | (863 | ) | ||||||||||||||||||||||||
Share-based compensation | 5,569 | 5,569 | ||||||||||||||||||||||||||||||
Common stock issued for Acme Refrigeration of Baton Rouge LLC | 8,492 | 4 | 2,547 | 2,551 | ||||||||||||||||||||||||||||
Investment in TEC Distribution LLC | 21,040 | 21,040 | ||||||||||||||||||||||||||||||
Cash dividends declared and paid on Common and Class B common stock, $1.95 per share | (75,388 | ) | (75,388 | ) | ||||||||||||||||||||||||||||
Balance at June 30, 2021 | 38,725,245 | $ | 21,799 | $ | 979,430 | $ | (29,744 | ) | $ | 691,658 | $ | (87,440 | ) | $ | 355,830 | $ | 1,931,533 | |||||||||||||||
Six Months Ended June 30, | ||||||||
2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 335,774 | $ | 360,396 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 16,615 | 15,376 | ||||||
Share-based compensation | 13,529 | 14,961 | ||||||
Provision for doubtful accounts | 1,405 | 4,139 | ||||||
Deferred income tax provision | 3,442 | 4,098 | ||||||
Other income from investment in unconsolidated entity | (10,878 | ) | (10,362 | ) | ||||
Other, net | 8,381 | 6,853 | ||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||
Accounts receivable, net | (243,440 | ) | (289,478 | ) | ||||
Inventories, net | (313,634 | ) | (366,359 | ) | ||||
Accounts payable and other liabilities | 103,442 | 332,217 | ||||||
Other, net | (3,815 | ) | 1,231 | |||||
Net cash (used in) provided by operating activities | (89,179 | ) | 73,072 | |||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (15,831 | ) | (18,952 | ) | ||||
Business acquisitions, net of cash acquired | (2,989 | ) | (47 | ) | ||||
Proceeds from sale of property and equipment | 1,232 | 111 | ||||||
Net cash used in investing activities | (17,588 | ) | (18,888 | ) | ||||
Cash flows from financing activities: | ||||||||
Net proceeds under current revolving credit agreement | 342,900 | — | ||||||
Net proceeds from the sale of Common stock | 15,179 | — | ||||||
Net proceeds from issuances of Common stock under employee-related plans | 13,827 | 8,228 | ||||||
Payment of fees related to revolving credit agreement | (580 | ) | — | |||||
Net repayments of finance lease liabilities | (1,795 | ) | (1,437 | ) | ||||
Repurchases of common stock to satisfy employee withholding tax obligations | (2,254 | ) | (2,179 | ) | ||||
Net (repayments) proceeds under prior revolving credit agreement | (56,400 | ) | 114,600 | |||||
Dividends on Common and Class B common stock | (190,409 | ) | (161,484 | ) | ||||
Net cash provided by (used in) financing activities | 120,468 | (42,272 | ) | |||||
Effect of foreign exchange rate changes on cash and cash equivalents | 1,320 | (1,131 | ) | |||||
Net increase in cash and cash equivalents | 15,021 | 10,781 | ||||||
Cash and cash equivalents at beginning of period | 147,505 | 118,268 | ||||||
Cash and cash equivalents at end of period | $ | 162,526 | $ | 129,049 | ||||
Six Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 360,396 | $ | 238,260 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 15,376 | 13,877 | ||||||
Share-based compensation | 14,961 | 12,351 | ||||||
Provision for doubtful accounts | 4,139 | 465 | ||||||
Deferred income tax provision | 4,098 | 2,115 | ||||||
Other income from investment in unconsolidated entity | (10,362 | ) | (10,210 | ) | ||||
Other, net | 6,853 | 5,685 | ||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||
Accounts receivable, net | (289,478 | ) | (283,077 | ) | ||||
Inventories, net | (366,359 | ) | (173,539 | ) | ||||
Accounts payable and other liabilities | 332,217 | 282,852 | ||||||
Other, net | 1,231 | (6,897 | ) | |||||
Net cash provided by operating activities | 73,072 | 81,882 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (18,952 | ) | (11,008 | ) | ||||
Business acquisitions, net of cash acquired | (47 | ) | (126,549 | ) | ||||
Proceeds from sale of equity securities | — | 5,993 | ||||||
Proceeds from sale of property and equipment | 111 | 100 | ||||||
Net cash used in investing activities | (18,888 | ) | (131,464 | ) | ||||
Cash flows from financing activities: | ||||||||
Dividends on Common and Class B common stock | (161,484 | ) | (143,909 | ) | ||||
Repurchases of common stock to satisfy employee withholding tax obligations | (2,179 | ) | — | |||||
Net repayments of finance lease liabilities | (1,437 | ) | (966 | ) | ||||
Proceeds from non-controlling interest for investment in TEC Distribution LLC | — | 21,040 | ||||||
Net proceeds from issuances of common stock | 8,228 | 8,687 | ||||||
Net proceeds under revolving credit agreement | 114,600 | 114,167 | ||||||
Net cash used in financing activities | (42,272 | ) | (981 | ) | ||||
Effect of foreign exchange rate changes on cash and cash equivalents | (1,131 | ) | 1,283 | |||||
Net increase (decrease) in cash and cash equivalents | 10,781 | (49,280 | ) | |||||
Cash and cash equivalents at beginning of period | 118,268 | 146,067 | ||||||
Cash and cash equivalents at end of period | $ | 129,049 | $ | 96,787 | ||||
Supplemental cash flow information: | ||||||||
Common stock issued for Acme Refrigeration of Baton Rouge LLC | — | $ | 2,551 |
Quarter Ended June 30, | Six Months Ended June 30, | Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Primary Geographical Regions: | ||||||||||||||||||||||||||||||||
United States | $ | 1,934,435 | $ | 1,665,253 | $ | 3,305,775 | $ | 2,676,519 | $ | 1,799,031 | $ | 1,934,435 | $ | 3,194,035 | $ | 3,305,775 | ||||||||||||||||
Canada | 113,159 | 113,880 | 202,582 | 188,372 | 107,360 | 113,159 | 188,623 | 202,582 | ||||||||||||||||||||||||
Latin America and the Caribbean | 86,161 | 70,507 | 148,968 | 120,867 | 96,693 | 86,161 | 171,067 | 148,968 | ||||||||||||||||||||||||
$ | 2,133,755 | $ | 1,849,640 | $ | 3,657,325 | $ | 2,985,758 | $ | 2,003,084 | $ | 2,133,755 | $ | 3,553,725 | $ | 3,657,325 | |||||||||||||||||
Major Product Lines: | ||||||||||||||||||||||||||||||||
HVAC equipment | 70 | % | 71 | % | 69 | % | 69 | % | 69 | % | 70 | % | 69 | % | 69 | % | ||||||||||||||||
Other HVAC products | 26 | % | 26 | % | 28 | % | 28 | % | 27 | % | 26 | % | 27 | % | 28 | % | ||||||||||||||||
Commercial refrigeration products | 4 | % | 3 | % | 3 | % | 3 | % | 4 | % | 4 | % | 4 | % | 3 | % | ||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Basic Earnings per Share: | ||||||||||||||||
Net income attributable to Watsco, Inc. shareholders | $ | 172,764 | $ | 192,557 | $ | 282,837 | $ | 305,855 | ||||||||
Less: distributed and undistributed earnings allocated to restricted common stock | 11,933 | 17,600 | 19,341 | 27,902 | ||||||||||||
Earnings allocated to Watsco, Inc. shareholders | $ | 160,831 | $ | 174,957 | $ | 263,496 | $ | 277,953 | ||||||||
Weighted-average common shares outstanding—Basic | 36,304,824 | 35,403,171 | 36,249,021 | 35,376,223 | ||||||||||||
Basic earnings per share for Common and Class B common stock | $ | 4.43 | $ | 4.94 | $ | 7.27 | $ | 7.86 | ||||||||
Allocation of earnings for Basic: | ||||||||||||||||
Common stock | $ | 146,511 | $ | 162,229 | $ | 239,999 | $ | 257,716 | ||||||||
Class B common stock | 14,320 | 12,728 | 23,497 | 20,237 | ||||||||||||
$ | 160,831 | $ | 174,957 | $ | 263,496 | $ | 277,953 | |||||||||
Diluted Earnings per Share: | ||||||||||||||||
Net income attributable to Watsco, Inc. shareholders | $ | 172,764 | $ | 192,557 | $ | 282,837 | $ | 305,855 | ||||||||
Less: distributed and undistributed earnings allocated to restricted common stock | 11,916 | 17,570 | 19,322 | 27,856 | ||||||||||||
Earnings allocated to Watsco, Inc. shareholders | $ | 160,848 | $ | 174,987 | $ | 263,515 | $ | 277,999 | ||||||||
Weighted-average common shares outstanding—Basic | 36,304,824 | 35,403,171 | 36,249,021 | 35,376,223 | ||||||||||||
Effect of dilutive stock options | 125,113 | 117,992 | 117,216 | 136,595 | ||||||||||||
Weighted-average common shares outstanding—Diluted | 36,429,937 | 35,521,163 | 36,366,237 | 35,512,818 | ||||||||||||
Diluted earnings per share for Common and Class B common stock | $ | 4.42 | $ | 4.93 | $ | 7.25 | $ | 7.83 | ||||||||
Anti-dilutive stock options not included above | 24,328 | 185,872 | 79,271 | 167,441 |
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Basic Earnings per Share: | ||||||||||||||||
Net income attributable to Watsco, Inc. shareholders | $ | 192,557 | $ | 144,102 | $ | 305,855 | $ | 199,194 | ||||||||
Less: distributed and undistributed earnings allocated to non-vested restricted common stock | 17,600 | 12,779 | 27,902 | 17,618 | ||||||||||||
Earnings allocated to Watsco, Inc. shareholders | $ | 174,957 | $ | 131,323 | $ | 277,953 | $ | 181,576 | ||||||||
Weighted-average common shares outstanding - Basic | 35,403,171 | 35,228,061 | 35,376,223 | 35,203,925 | ||||||||||||
Basic earnings per share for Common and Class B common stock | $ | 4.94 | $ | 3.73 | $ | 7.86 | $ | 5.16 | ||||||||
Allocation of earnings for Basic: | ||||||||||||||||
Common stock | $ | 162,229 | $ | 121,745 | $ | 257,716 | $ | 168,324 | ||||||||
Class B common stock | 12,728 | 9,578 | 20,237 | 13,252 | ||||||||||||
$ | 174,957 | $ | 131,323 | $ | 277,953 | $ | 181,576 | |||||||||
Diluted Earnings per Share: | ||||||||||||||||
Net income attributable to Watsco, Inc. shareholders | $ | 192,557 | $ | 144,102 | $ | 305,855 | $ | 199,194 | ||||||||
Less: distributed and undistributed earnings allocated to non-vested restricted common stock | 17,570 | 12,748 | 27,856 | 17,596 | ||||||||||||
Earnings allocated to Watsco, Inc. shareholders | $ | 174,987 | $ | 131,354 | $ | 277,999 | $ | 181,598 | ||||||||
Weighted-average common shares outstanding - Basic | 35,403,171 | 35,228,061 | 35,376,223 | 35,203,925 | ||||||||||||
Effect of dilutive stock options | 117,992 | 199,657 | 136,595 | 175,121 | ||||||||||||
Weighted-average common shares outstanding - Diluted | 35,521,163 | 35,427,718 | 35,512,818 | 35,379,046 | ||||||||||||
Diluted earnings per share for Common and Class B common stock | $ | 4.93 | $ | 3.71 | $ | 7.83 | $ | 5.13 | ||||||||
Anti-dilutive stock options not included above | 185,872 | 10,907 | 167,441 | 7,144 |
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Foreign currency translation adjustment | $ | (9,381 | ) | $ | 4,016 | $ | (5,000 | ) | $ | 7,473 | ||||||
Unrealized (loss) gain on cash flow hedging instruments | — | (6 | ) | — | 97 | |||||||||||
Income tax expense | — | — | — | (27 | ) | |||||||||||
Unrealized (loss) gain on cash flow hedging instruments, net of tax | — | (6 | ) | — | 70 | |||||||||||
Reclassification of (gain) loss on cash flow hedging instruments into earnings | — | (28 | ) | — | 305 | |||||||||||
Income tax expense (benefit) | — | 6 | — | (84 | ) | |||||||||||
Reclassification of (gain) loss on cash flow hedging instruments into earnings, net of tax | — | (22 | ) | — | 221 | |||||||||||
Other comprehensive (loss) income | $ | (9,381 | ) | $ | 3,988 | $ | (5,000 | ) | $ | 7,764 | ||||||
Six Months Ended June 30, | 2022 | 2021 | 2023 | 2022 | ||||||||||||
Foreign currency translation adjustment: | ||||||||||||||||
Beginning balance | $ | (34,176 | ) | $ | (34,694 | ) | $ | (47,710 | ) | $ | (34,176 | ) | ||||
Current period other comprehensive (loss) income | (3,330 | ) | 4,948 | |||||||||||||
Current period other comprehensive income (loss) | 4,950 | (3,330 | ) | |||||||||||||
Ending balance | (37,506 | ) | (29,746 | ) | $ | (42,760 | ) | $ | (37,506 | ) | ||||||
Cash flow hedging instruments: | ||||||||||||||||
Beginning balance | — | (173 | ) | |||||||||||||
Current period other comprehensive income | — | 43 | ||||||||||||||
Reclassification adjustment | — | 132 | ||||||||||||||
Ending balance | — | 2 | ||||||||||||||
Accumulated other comprehensive loss, net of tax | $ | (37,506 | ) | $ | (29,744 | ) | ||||||||||
Accounts receivable | $ | 33,315 | ||
Inventories | 71,325 | |||
Other current assets | 962 | |||
Property and equipment | 2,590 | |||
Operating lease ROU assets | 53,829 | |||
Goodwill | 18,724 | |||
Intangibles | 19,900 | |||
Accounts payable | (25,393 | ) | ||
Accrued expenses and other current liabilities | (20,509 | ) | ||
Operating lease liabilities, net of current portion | (48,046 | ) | ||
Total | $ | 106,697 | ||
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(Loss) gain recorded in accumulated other comprehensive loss | — | $ | (6 | ) | — | $ | 97 | |||||||||
(Gain) loss reclassified from accumulated other comprehensive loss into earnings | — | $ | (28 | ) | — | $ | 305 |
Asset Derivatives | Liability Derivatives | |||||||||||||||
June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||
Derivatives designated as hedging instruments | $ | — | $ | — | $ | — | $ | — | ||||||||
Derivatives not designated as hedging instruments | 9 | — | — | — | ||||||||||||
Total derivative instruments | $ | 9 | $ | — | $ | — | $ | — | ||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||
Derivatives designated as hedging instruments | $ | — | $ | — | $ | — | $ | — | ||||||||
Derivatives not designated as hedging instruments | 12 | — | — | 5 | ||||||||||||
Total derivative instruments | $ | 12 | $ | — | $ | — | $ | 5 | ||||||||
Fair Value Measurements at June 30, 2022 Using | ||||||||||||||||||
Balance Sheet Location | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||||
Derivative financial instruments | Other current assets | $ | 12 | — | $ | 12 | — | |||||||||||
Equity securities | Other assets | $ | 650 | $ | 650 | — | — | |||||||||||
Private equities | Other assets | $ | 1,000 | — | — | $ | 1,000 |
Total | Fair Value Measurements at December 31, 2021 Using | |||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | |||||||||||||||
Assets: | ||||||||||||||||||
Equity securities | Other assets | $ | 1,790 | $ | 1,790 | — | — | |||||||||||
Private equities | Other assets | $ | 1,000 | — | — | $ | 1,000 | |||||||||||
Liabilities: | ||||||||||||||||||
Derivative financial instruments | Accrued expenses and other current liabilities | $ | 5 | — | $ | 5 | — |
Total | Fair Value Measurements at June 30, 2023 Using | |||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Derivative financial instruments | Other current assets | $ | 9 | — | $ | 9 | — | |||||||||||||
Equity securities | Other assets | $ | 779 | $ | 779 | — | — | |||||||||||||
Private equities | Other assets | $ | 1,000 | — | — | $ | 1,000 | |||||||||||||
Total | Fair Value Measurements at December 31, 2022 Using | |||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Equity securities | Other assets | $ | 678 | $ | 678 | — | — | |||||||||||||
Private equities | Other assets | $ | 1,000 | — | — | $ | 1,000 |
9. SHAREHOLDERS’ EQUITY |
Quarter Ended June 30, | Six Months Ended June 30, | Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||
Cost of sales | 72.1 | 74.2 | 71.4 | 74.1 | 71.9 | 72.1 | 71.6 | 71.4 | ||||||||||||||||||||||||
Gross profit | 27.9 | 25.8 | 28.6 | 25.9 | 28.1 | 27.9 | 28.4 | 28.6 | ||||||||||||||||||||||||
Selling, general and administrative expenses | 14.8 | 14.4 | 16.4 | 16.2 | 15.2 | 14.8 | 16.6 | 16.4 | ||||||||||||||||||||||||
Other income | 0.3 | 0.3 | 0.3 | 0.3 | 0.4 | 0.3 | 0.3 | 0.3 | ||||||||||||||||||||||||
Operating income | 13.5 | 11.7 | 12.5 | 10.0 | 13.3 | 13.5 | 12.1 | 12.5 | ||||||||||||||||||||||||
Interest expense, net | 0.1 | 0.0 | 0.0 | 0.0 | 0.2 | 0.1 | 0.1 | 0.0 | ||||||||||||||||||||||||
Income before income taxes | 13.4 | 11.7 | 12.5 | 10.0 | 13.1 | 13.4 | 12.0 | 12.5 | ||||||||||||||||||||||||
Income taxes | 2.8 | 2.4 | 2.6 | 2.0 | 2.8 | 2.8 | 2.6 | 2.6 | ||||||||||||||||||||||||
Net income | 10.6 | 9.3 | 9.9 | 8.0 | 10.3 | 10.6 | 9.4 | 9.9 | ||||||||||||||||||||||||
Less: net income attributable to non-controlling interest | 1.5 | 1.5 | 1.5 | 1.3 | 1.6 | 1.5 | 1.5 | 1.5 | ||||||||||||||||||||||||
Net income attributable to Watsco, Inc. | 9.0 | % | 7.8 | % | 8.4 | % | 6.7 | % | 8.6 | % | 9.0 | % | 8.0 | % | 8.4 | % | ||||||||||||||||
Number of Locations | ||||
June 30, | ||||
Opened | ||||
Closed | (4 | ) | ||
December 31, 2022 | 673 | |||
Opened | 3 | |||
Acquired | ||||
Closed | (6 | ) | ||
June 30, | 673 | |||
Quarters Ended June 30, | ||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||
Revenues | $ | 2,003.1 | $ | 2,133.8 | $ | (130.7 | ) | (6 | %) |
Quarters Ended June 30, | ||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||
Same-store sales | $ | 1,996.3 | $ | 2,131.3 | $ | (135.0 | ) | (6 | %) |
% of Sales | % Change | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
HVAC equipment | 69 | % | 70 | % | (8 | %) | 19 | % | ||||||||
Other HVAC products | 27 | % | 26 | % | (7 | %) | 23 | % | ||||||||
Commercial refrigeration products | 4 | % | 4 | % | 1 | % | 26 | % |
Quarters Ended June 30, | ||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||
Gross profit | $ | 562.6 | $ | 595.5 | $ | (32.9 | ) | (6% | ) | |||||||
Gross margin | 28.1 | % | 27.9 | % |
Quarters Ended June 30, | ||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||
Selling, general and administrative expenses | $ | 304.2 | $ | 314.8 | $ | (10.6 | ) | (3% | ) | |||||||
Selling, general and administrative expenses as a percentage of revenues | 15.2 | % | 14.8 | % |
Quarters Ended June 30, | ||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||
Income taxes | $ | 56.9 | $ | 60.5 | $ | (3.6 | ) | (6% | ) | |||||||
Effective income tax rate | 24.6 | % | 23.8 | % |
Six Months Ended June 30, | ||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||
Revenues | $ | 3,553.7 | $ | 3,657.3 | $ | (103.6 | ) | (3 | %) |
Six Months Ended June 30, | ||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||
Same-store sales | $ | 3,542.7 | $ | 3,653.3 | $ | (110.6 | ) | (3 | %) |
% of Sales | % Change | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
HVAC equipment | 69 | % | 69 | % | (4 | %) | 24 | % | ||||||||
Other HVAC products | 27 | % | 28 | % | (5 | %) | 27 | % | ||||||||
Commercial refrigeration products | 4 | % | 3 | % | 6 | % | 30 | % |
Six Months Ended June 30, | ||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||
Gross profit | $ | 1,010.8 | $ | 1,045.9 | $ | (35.1 | ) | (3% | ) | |||||||
Gross margin | 28.4 | % | 28.6 | % |
Six Months Ended June 30, | ||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||
Selling, general and administrative expenses | $ | 591.2 | $ | 598.1 | $ | (6.9 | ) | (1% | ) | |||||||
Selling, general and administrative expenses as a percentage of revenues | 16.6 | % | 16.4 | % |
Six Months Ended June 30, | ||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||
Income taxes | $ | 90.6 | $ | 96.1 | $ | (5.5 | ) | (6 | %) | |||||||
Effective income tax rate | 24.1 | % | 23.8 | % |
2022 | 2021 | Change | ||||||||||
Cash flows provided by operating activities | $ | 73.1 | $ | 81.9 | $ | (8.8 | ) | |||||
Cash flows used in investing activities | $ | (18.9 | ) | $ | (131.5 | ) | $ | 112.6 | ||||
Cash flows used in financing activities | $ | (42.3 | ) | $ | (1.0 | ) | $ | (41.3 | ) |
2023 | 2022 | Change | ||||||||||
Cash flows (used in) provided by operating activities | $ | (89.2 | ) | $ | 73.1 | $ | (162.3 | ) | ||||
Cash flows used in investing activities | $ | (17.6 | ) | $ | (18.9 | ) | $ | 1.3 | ||||
Cash flows provided by (used in) financing activities | $ | 120.5 | $ | (42.3 | ) | $ | 162.8 |
# | filed herewith. |
+ | furnished herewith. |
WATSCO, INC. | ||||||
(Registrant) | ||||||
Date: August | By: | /s/ Ana M. Menendez | ||||
Ana M. Menendez | ||||||
Chief Financial Officer (on behalf of the Registrant and as Principal Financial Officer) |