WSO - Earnings call transcript Q4 2020

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Operator

Good day, and welcome to the Watsco Fourth Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note, being recorded. Please now Albert Nahmad, would like to to over conference the CEO. turn I Please go ahead.

Albert Nahmad

Good morning This President. to is President; Watsco’s Chairman everyone. and And CEO A.J. fourth safe. Hope and also Johnston, quarter everyone Nahmad, is Barry President; earnings Executive with Logan, call. and is Paul Nahmad, healthy Al me and Vice welcome Vice Executive

laws as This do, regulations SEC Now start statement. laws. various has we differ statements. made forward-looking normally are provisions to and from may materially cautionary before Safe conference as defined forward-looking pursuant statements we our here’s call Ultimate Harbor results the by these that the of

flow Now million almost sales, generated cash balance provides well net levels. generating onto record make to sheet, of of investment business. We is This our another and during in us report. cash excess now reaching which year, produced goal greater flow of debt-free record and the to net grow record our any year, $XXX further capacity with strengthened our earnings than financial our Watsco income size per share the income.

remain quarter. efficiencies continue invest higher in to residential business. That HVAC We as from equipment during our annual dividend sales our business, U.S. which share. this in confidence increase through our growth grew today. at XX% also $X.XX driven Homeowners per XX% in share morning the announced to their by were gains in a for XX% the XXXX early our year fourth and steady replacement summer market homes results reflects with strong

standards address many point. have sales our our States, and XXX been are and over of in which data installed significant products there steadily decade. are grown We and will interesting efficiency in resulted a It's in energy user the opportunities component use note, old mix we HVAC contributor and our under to opportunity see progress explore higher impactful over them. United systems strong of operating all we to to climate is leading scale, marketplace. a million past long-term an This the in that to long cost relationships long evaluate Looking platforms, the the a for be access important benefit make have foundation high-efficiency provide and technology to participant in Sales involved. customer OEM to change. and Watsco's unrivaled relationships for of of believe business capital, stakeholders industry efforts term, combination

users growth new invest in leading a of good acquisition We platform, up sales effectiveness. non-users. during active users XXXX. of technology for our growth non-users, that on Also, This another Watsco's XX% is is adoption, of adoption, of good greater important are tech and to to customers indicator also gains. indicator overall customer share active attrition outpace continue rates fraction customer platforms, as among growth a rates e-commerce User industry-leading market was

more XX% to our orders. XX% of The examples apps progress. of with of grew Weekly Now users X.X mobile some this downloads. XXX,XXX in detailed XXXX, number transactions year online over million e-commerce our increased

at the XX% of certain it's XX%. sales Our markets, end over versus annualized year. rate run e-commerce last XX% is In

last And our more Investments exponentially. or is orders inventory, year loans. returns This Credit-For-Comfort operating our flow customers, Credit-For-Comfort. between available million using XXXX funded digital platforms XXX% dockside exciting, investments. them, to it's digitize homeowners Air generated the help $XXX OnCall gross systems. over digital third-party Two applications in in versus company OnCall been curbside since the proposals efficiency. the to Contract only financing contributing lower in this users. in afford and systems. XXX,XXX includes These our and Our unique contractors our and technology examples XXXX, tool improved software Air of tool The last buying financing also for homeowners record than still platforms in growing in year. value cash locations and call processed These have momentum over terms provided than increase yielding has replacement HVAC and and resulting we XX% benefited and XX% inventory hospitals potential innovative has the We are to more when XXXX. full relationship already over during early no-contact payment more expanded of X,XXX of helps and merchandise nearly much XX,XXX an reaching now fulfilled functionality. pickup gained summer, services by in believe and HVAC increase more management were technology newer needed

feel and its As further technology a call us, our with schedule to can progress. Zoom explain always, we free and

Now one -- we these remarks. as in prepared very important thought

results across A.J., Paul, Barry that, XXXX Watsco to are valued the Our your appreciate are efforts of a their to happy questions. the our Elizabeth? testament answer deeply We network. commitment. With employees I and

Operator

go question Please first from Volkmann Stephen The ahead. of comes today [Operator Instructions] Jefferies.

Albert Nahmad

Stephen. morning, Good

Stephen Volkmann

Good spending progresses. in question. obviously, and comparison morning, for Thanks guess year e-commerce, up mean, XXXX, the as a of that lots ways, was your us potentially market extraordinary especially, what for share of kick of in course, I sets terms difficult in stay-at-home to year guys. the etcetera. gains But is and off, my maybe in I just an taking XXXX improvements

about to of how Al, kind your will thoughts give the for in unveiled opportunities you I'm the growth? wondering, be continued market XXXX think maybe So us you can relative

Albert Nahmad

Paul to about answer, with then I'll start Well, turn talk I'll industry. ourselves. I'll about Johnston an the to talk and

of talked financial our continue our we think are adoption. about allows a technology We've to -- talked continue We've which us I M&A program. to to strength, will that set active we about number up over grow years.

growth, and lot confident regardless things you can we next... a Paul, happens the the market, our very of statement. talk do We continue to of that in have want feel industry, to what about to we

Paul Johnston

and market obviously, and downs it's ups such. inventory we XXXX, many Yes. flows because in ebbs the and a so to comparison, and tough XXXX Yes, make issues and to had

that say to fair strong during it's industry remain year. will the think the I However,

remains right this the footing. Replacement where following year still construction we're strong. New seeing on last or with year ended through demand, that we beginning

out probably there I mean that's for replacement that of homeowners think pandemic. homes is, flipping not periods, mean their I another And we're there's the and changing and seeing as because they dynamics. your the it. were longer I stay helping in it they're in to phenomenon seeing homes don't stay in houses to the their as conditioning years, a them XX, is does opposed system, when early to something indicator XXXXs. replace which We're that happen XX you're repair going air good

home. tendency you if a of repair sell are more have You'd to your planning to

So I'm bullish on that.

markets should good market on bullish have idea have market very and markets as we as we our have where also isn't we we that the it be. share I'm think high share, Secondly, where

happen. still to the we gains that and help market that make us OEM So we have striving with we're for. have for working side going great on share And partners

Albert Nahmad

Good, Paul.

Stephen Volkmann

Okay. And house my on year we're going is XX, -- actually.

really the your I levels. So point. get I Quick surprised follow-up, could. by I inventory was if

did of in might a new job year. And as good under really higher? even of demand guys that just added have normal kind to benefits and little kind inventory of is whether information that to the a industry, technology wraps that keeping Or have I'm with you've your strong the management. you preferred we more all the them actually that's the You just curious ended the

Albert Nahmad

question. great a That's

turn Let for answer. to me A.J. the

Aaron Nahmad

probably all new us gave were share above. industry. environment growth of and chain was well And combination enabled and our that in call a the us in It's been for Sure. we what There market constraints of attack fill customer supply it Inventory strong There orders shelves as show that's too the demand. in technology insight inventory. as our to tools to sales and long. non-performing take

detail we to were more that of product well. it, on talent So as focused able of move out and with some the network old more

those confluence it's factors. mix are into to all of going beyond. So continue certainly, XXXX and a and going efforts three a And

Paul Johnston

could add technology not of is, only system great the I I one to did it. a needed with job A.J. and getting we If side have that of that, that more thing -- the

add through systems. in what management way commodities from inventory of our from mixed People industry. had for life different with So in in all were the inventory the fortunately, should of pandemic, the to, from HVAC walks purchasing we group be. to able us, retail, people before also, But visibility people knew a the we the the different that

bode and and that suppliers think capabilities, to it cadence hand glove people our into sure So once we're able with we and other well our receives. the with that make I work a OEMs pandemic inventory our varied proper had we backgrounds got in to had

Aaron Nahmad

Paul... right, so You're

Barry Logan

And I...

Aaron Nahmad

We -- sorry, Barry.

great and Paul. people, as technology. profitability. right, create shorthand. so change really in processes technology We people Technology really to You're and increase It's process just enables and great use put

Barry Logan

number. much of the $XXX layer it. which was a temporary part I And million, add of think is of pretty that Yes. is right? I'll just reduction how is, year-over-year to permanent, astounding versus The around numbers question

Albert Nahmad

Yes.

Barry Logan

had cut the finished and than view order of actually half, than technology kind more recalibrating I stock -- We well how and products and our it's to the with more conversations point of reduction would stores on of permanent from products products. say, through new and operate

half a than and more permanent I would it, call is, certainly So reduction.

Stephen Volkmann

perfect. you, Thank That's guys.

Albert Nahmad

Sure.

Operator

of The ahead. is Please Manthey next Baird. from go question David

Albert Nahmad

Hi, David.

David Manthey

Hey, good morning. guys. Hi,

Albert Nahmad

not are. where it's you hope I too cold

David Manthey

No. In Al Tampa,

Albert Nahmad

Bowl. For the Super

David Manthey

your hoping fine. growth, the a units price/mix Actually, little disaggregate always, the And you then as warm versus equipment to outlook relates for XXXX it pricing? But in absolutely there? as yesterday We're XX. organic can

Albert Nahmad

Barry, do shot? you want to take a

BarryLogan

XX%, little slight price is unit look similar it, almost all quarter business a for Well, which year. up of if would again, full very very year, circumstance, at think mostly a amount no look slight price, almost Sure. mix way say, And benefit any, a if growth, I first, I Dave, unit and unit on all growth, almost mix, the the at this potential the benefit. to you growth responsible a

David Manthey

being and we everything we copper with And a impact steel and see positive expect there? could XXXX, Okay. that actually should up,

Albert Nahmad

Barry?

Barry Logan

right? There's the OEMs increases two announced through cycle and season what all price the are, Well, discussion. And what their this there and will are flow in make cost the pricing inputs the that inventory into almost that XXXX. OEMs actions, groups already for So year. products

that, right? So think that And see It's in of products inflation through prices of and to more XXXX. you're price I in been the and growth, it. metals, this increases announced, We a non-equipment see quarter's it's the do benefit me and how there we're going nonequipment than has fits heading on while consist we'll that but but that ready some encyclopedic is call the ball, some into don't fourth accounts pricing I helpful crystal year. sell been that, have for market those about increasing think there you

Albert Nahmad

Correct.

David Manthey

it. Got

initiative some major products? theme HVAC stay initiative a that and just returns just volume some I of that Okay. was working to on returns growth the on that to you're trends you assuming there that early of Could from from know that other And I'm assuming you're products, there, program. seeing relative the other was HVAC the that you the about talk early and had

Albert Nahmad

a Paul I guess -- with at take picture. we that can it, shot

Paul Johnston

from of parts initiative. a little of of wasn't a the equipment think lot I don't it I Yes. had, available. bit our equipment was we think was a just pent-up the of demand spotting lot that that early it of some with

everybody people product. Had furnace. market probably repair for So now. to a the right repair their had That's to tightest been

not the prices really They material mentioned, in scheme lot the As of a the Barry quarter. revenues did steel overall price had quarter. increases, for fourth of that as in and benefit, a copper occur but the Watsco's far

commodities. think bleed perhaps happen idea of into better what's of second this in price-wise We'll going going the first quarter is for I to and a those have that to with more year.

David Manthey

guys. Thanks update, Thank for you, alright. the

Albert Nahmad

Sure.

Operator

question is Jeff Capital Please The go ahead. of from next Hammond Markets. KeyBanc

Albert Nahmad

morning, Good Jeff.

Jeffrey Hammond

Just what into res year, on and or businesses on commercial whether headwind? update quarter from U.S., you color HVAC. it on, trends you the kind be seem be just the -- saw to the And XQ Can outside us the of XXXX? the U.S. a good still which just full then

Albert Nahmad

Barry?

Barry Logan

U.S. in press we market, that to first, well the release. directly pretty speak Jeff, the

the that's in the which our look XX-K, where split Canada some we really Latin at publish States that which $X.XX whole, into from the sales market, business, went a international the other our United other can profits and you this Latin commercial that's underperforming and to actually about a sales a in market, day. A glean markets, good in That's at data -- -- year. Canada, profits do on And of in tune it. if business, look of mostly lot full business share, America, American like year, and is certainly we the two have businesses its grew Our end commercial I the XXXX. residential, probably international looked but down

which improving, a commercial is still give after for speak we but that this everyone's largely a year $X.XX year. We'll can lagging. And about of Latin results, we like a when market. about us sense So that in XXXX. Again, seeing again, you're and and And America, expect see placeholder it about recovery you our and costing recovery year this put a wait it market as of have XXXX a commercial but could some be talk happens, benefit. it discussion,

Jeffrey Hammond

kind costs Okay. That's maybe seems and came can Certainly you line, it incrementals companies XQ puts good as then SG&A of quickly. good think back takes just incrementals, But like demand just that very half. about about lot a tamped And then into down in helpful. on the of in and talk back you XXXX? the

are some tamp back SG&A? of you those impact costs costs start So come just down thinking to temp and how or

Albert Nahmad

Barry. ahead, Go

Barry Logan

Yes. Again, kind in answer, three unbundle the it. I of factors, think, to Jeff

So early reduction the reaction reasons. for XXXX, to you're good all provoking that and helping right, cost were knives cost reduction spring with an falling

eight thereafter was with for the next Second double-digit need the months. to interesting, deal demand

we that. intended So cost. equation the do technology all then And conduct outcomes Especially can to certainly, gain kind out. as played of do, to whole, of which that's third, we technology. technology, we is technology did to costs XXXX is see improve needed continue What to relative can should clear of in the we some do,

say look would this, we So pay, to next We year. that's to growth our of want at would I answer. incentive abstract happen. If are that commission I growth, half SG&A nice XXXX, And people. in in that happen expect

is in And that example, year. of so Rent, with about category. the That's I which this SG&A SG&A accomplishment. for an is, think, XX% increases, flat

realities likely on to year's dealt of flat. went this increase. the the was market that rent are intended going in Our to is was otherwise teams Well, with landlords and and what to

savings will and sustained think next into of I year. those some be kept

SG&A So it try summarize explanation, if realities what we to next just happened another of XXXX. year, growth some in see I minutes XX without in the of would

opportunity. making with the We And we distribution in and see in our locations. people are network XXXX investments

efforts, will I again, We not for increases. moderate year, and really to some have partnership in performance pinch OEM network there'll increase SG&A next those out growth those same that. going many year. Otherwise, a next some we're our expand and of the technology help and expect go but And be would

Jeffrey Hammond

Thanks the call, Okay. for guys

Operator

The Chris next question Longbow of is from Dankert Research. ahead. Please go

Albert Nahmad

Chris. morning, Good

Christopher Dankert

to and we know into year? anything kind of I think there's mix? good kind besides moving margin guess, XXXX, for I dynamics just performance just guys. taking out piece. great, in gross any how Thanks half price/volume the mean, Definitely on, Hey, gross question. mix the do is morning, about got back going bear a stabilized. into the XXXX. Latin the in some but new typical puts you'd Just looking mind of I guess call takes things I margin of great the on America

Albert Nahmad

something approach year improvements saw on. or continue of last should focused year whatever you show we're internal about systems because through improvement that to we own it's will marketplace. as because believe and of our ability say, and to our And I focus the it the this something do year, to this well Well,

Christopher Dankert

though? of kind what the a kind Latin early of do of piece was I assume was late XXXX, America XXXX, headwind

Albert Nahmad

if XXXX, you and XXXX? answer. Barry, ahead go understand that,

Barry Logan

Yes. Go ahead.

again. question your Ask

So what's are what you to? the -- getting

Christopher Dankert

Yes.

Sorry.

margin earlier of of much in America half latter think is year-over-year We're half decline curious facing that some XXXX? was a margin gross just XXXX, I'm in early I So of year-over-year in a basis playing Latin on role gross how kind headwinds. XXXX. the

Barry Logan

at U.S. internationally margin. no, like margins The gross -- look all. Oh not margins the

the It's those our pricing no products there's the sort. to mix getting we there's going pieces. into And market. about help. blocking a really algebra So see. the technology. of go in and -- that XXXX. We pricing It's inflation. know, market. moving a There's we price opportunity inflation affects season. the how don't larger get of in on to We'll big until But of might some The initiative are inflation the improve talked in lack tackling we And earlier

Christopher Dankert

And Got lately. I it. then touched something right. we on it. All guess, Got haven't

Sigler, update terms made what's investments? of in in required of ownership? terms likelihood any Russell be consolidation investments there, on share kind Just of being of you great. would either of anything Just kind The of there can further

Albert Nahmad

of have we are of in ownership. very intentions We're us. want much. We share we're divesting can't from supportive what -- don't position, they and And can terms their no we all Well, minority that's in I idea anything more say. a

Christopher Dankert

Even Yes. of of fully integrated technology they terms pulling they type of tools? on Air, use -- Are OnCall mean, how that are some the in of thing? I terms can in they how

Albert Nahmad

is What Across with we All pleased we're can you very that tell their performance.

Christopher Dankert

Understood.

Albert Nahmad

Yes.

Christopher Dankert

Thanks so much, guys.

Operator

The Research. next Vertical of Sprague question is from ahead. Please Jeff go

Albert Nahmad

Jeff. morning, Good

Jeffrey Sprague

for questions. speak if somewhat point. bit are Hey good on you I morning good. a just maybe M&A in imagine bit little tug everyone. I I there's following And of is Business potential could war. up last a that Thanks you little wonder landscape. seeing to what guess of the

same like sell, the people by to smaller it pressure increasing does of So the seem the guys. perhaps maybe technology are on aren't some the eager of kind but changes token,

we color your on expect just state Maybe other the So there? XXXX? the of happen in M&A activity in pipeline? play Should to some

Albert Nahmad

part strategy, revenue general M&A, a can billion an $XX make then more industry. Well, billion Barry, And have I'll our is acquirer. $X statement Watsco leads the of overall as we in and provide a information. who our

building to culture, active, M&A do do sheet but we year. we balance has we promise, So we'll And use for M&A. think in have different the this are of sort thing acquirer. all I we're the think people with matter things grow. room kind small, a the other continue that now our there's are out try some capital, what the bring them our doesn't share which we're that -- We're a Barry? is us. believe. in reputation organization, they very and want Watsco since of we're of That have our of is no and think lots support just And $X lot only billion. to it key billion I attractive, our we opportunities to our supportive. that And XXXk, shares. add, as people And donations but not the of said, in We continuing to equity for And disruptive, we $XX of are to the an culturally I our And And the support. do working

Barry Logan

Yes, Jeff.

We're Jeff, of then is, two in kind M&A first, focus will of of Yes, back. to I welcome focused invest platforms on drive We're on attempting to that superpower build the and Just up the fragmented roll the to share in. take industry. things that of targets businesses growth are not a and regional everyone largest industry. this remind is and

big turnaround fundamental not greater looking reaching in businesses invest invest we're experts, growing strengthening strength, The market we'll rather when we businesses. to for and We're picture buy. is, they're would in a dip in second, not looking the to

net-net through I it is has environment a So ago. after this this think now a stronger been year was than everyone year, lot

effort other than said say with some were So for again, businesses than are never some through the of to are. the be I ago. the today were XXXX that think and reason rekindling in happen a that year the gives opportunity able of now good having a that the weirdness they we're discussion. confidence presents would were I the technology I'll that, Along targets of to thing, discussions for and say stronger that foundations can performance, predict that us But where us certainly

So transactions seen, some be great conversation. is I but... Whether would or great there's not, expect to still

Albert Nahmad

There's about very be very a but Barry. to great we're optimistic transaction, guarantees, answer. got optimistic. No Good We're that.

Jeffrey Sprague

beep, good Thanks. well. back to Barry. on be the that and Very for Thanks color

Operator

is ahead. question from Tusa next The of Please JPMorgan. Steve go

Albert Nahmad

Steve. on, Go

Charles Tusa

going? it is How guys. Hi,

Albert Nahmad

good. Doing visit. Come

Charles Tusa

concerns in not I'd residential not on love in typically we front half in talk a especially here? here. Question times increases out snowy the for type up you bunch, year-over-year. said thing was to. their and Did in they'll the availability up you that a in residential, these guys Backlog order three of price about some deliver is backlog little first Carrier December. It's get to guys or of of you

Albert Nahmad

to Who answer? that a volunteer wants What for question.

Paul Johnston

everybody It's the huge We we order I we lost in. the do our pre-buys. we that to no, will. was the during even entire still inventory orders, canceling cadence pandemic selective. not buys just in -- did and the One orders that that throughout is, sure though deficit we make thing pandemic. else we when of maintained had refilling did a several entire board were maintained Very did we putting

And shortages, really have -- lot didn't inventory type we of like but so didn't these a people movements yoyo we yes, had we did.

year able like, feel have a basis that order. that be and OEMs we XXXX, make finished shape in diligently what need we into on sure have fulfilment we So we our working But getting the with daily that going weekly on we'll good concern we we're Yes, a status. on we're to the on to inventory. maintain

Charles Tusa

to they first or mean, I just you whatever that guess they right? was half are be allowed finished kind get the -- they there or terms it's order shift and whatever? be a kind guys that's backlog something that them, would be Yes. place kind goods what of they in of an If of they would paper So like have. for I you'd inventory, have unusual holding and to wouldn't essentially

So none activity? that of

Paul Johnston

Like we orders the orders way put I have. our in -- got our we always said, we've

of Most think, building the manufacturers, we a to unusual normally they would product continued have shutdowns. We I where offseason, have not during like We're do. be trying the here. pre-buy, always

OEMs. much was I across think the universal pretty that

Charles Tusa

seeing any speaking mean swings? any of Goodman them do serve was some I Did that you it all. it's I expect pretty share, Are you pretty the much of whether you think clear kind you kind -- OEMS, their -- fault of lost not. or

you a that this or Do any the negative of it's kind either for XXXX? between in of you like a guys it's kind way. guys lost positive and So see year swings not back won

Paul Johnston

they an that's everybody -- And loyal other that that's hundred that has. to the marketing back gains brands. first the get they plans what couldn't dollar all that guess up they they dealers maintain It everybody's picked question share Will availability able they I to go were that I went in brands or they guess worked year. are has about. that been and lost prior to to,

Charles Tusa

then Goodman's And one -- acquiring few just distributors one last a noticed one. I've recently.

I is little think to And you've a put of Ferguson noticed around increase competition? it's more brand. of mostly their you and been also publicly Daikin some on pretty bit about we be of selective if an aggressive around block, They the looking bit targets. in will, kind aggressive kind Anything understand out a here.

Albert Nahmad

we've the Competition others always number a strong. And have see others, that we mentioned we've and reason that industry had not don't And one it's going have. is by of the don't for you why any evidenced that's growth fragmented years we continue. a think advantages I to that very as that had.

stronger. think We're on we're actually in we've the than getting roll. the about a I future more past. I'm done optimistic anything

Charles Tusa

digital worked has you out guys. the Right. for stuff Clearly,

on congrats So that.

Albert Nahmad

it's beginning. has. just Yes. It And

Aaron Nahmad

is This A.J.

is was of low into same saw at the rate the we're new Company, Going and exciting. the from now ties all-time what to the customers. which conversation attrition which right growth huge is And back Watsco we seeing new a share, customers that, question time, market buying

these good to you companies. them tells and their that it's easy we for the customers is them more that try getting try that's valued business what as in finding to with to and Watsco think buy I help product it to contractors and make us, businesses, partners to So do grow We're good very more are appreciated. -- we

Charles Tusa

Right. It Al. like a A.J. for sounds is raise, up

Albert Nahmad

Well, with that. agree I

Charles Tusa

guys, it. Thanks, appreciate

Albert Nahmad

talk to to Good you.

Operator

ahead. is next from Research. go Longbow follow-up question Chris of Dankert The comes Instructions] [Operator -- Please a

Christopher Dankert

Hi, Chris.

their at customer more about one I one stocking more you from what back on still the a hearing they time? to what me. inventory, and let's product skittish like? go guess normal, you are I about bit level? mean able what kind being level. are still customers than from I we seeing looks mean position Just Just of OEM inventory, down your get talked inventory are

Albert Nahmad

don't you that? why Paul, take

Paul Johnston

-- we most inventory, of contractors and do any supplies. with, don't in and Yes. business base just dealers maintain It's the inventory parts really

So that isn't an really issue.

what some the distributor's inventory, but I on concerned to place? are relies and about the really the contractors the may Do that part, of the most shortages there rely of think they're some it's last -- right supply in they Some of some is I wouldn't happening. been who carry do Yes, inventory on that some trying a put on now. we year inventory. larger To industry have extent? really contractors there have think read

Albert Nahmad

it The And also true. inventory. their for our remains vast majority of customers rely on us

Paul Johnston

right. That's Yes.

Albert Nahmad

is terms Baker with talking, part was from an sell customers six are us. said the $X de within replenishing inventory business that's that would in it. probably ordered of they call hours. revenue last drawing of their None pushing Watsco. out, minimis, today units of I as XXX If overstating we billion mean and say XX.X% of example, I I have Yes. we what

of Some them...

Paul Johnston

I set, market. line some carry the tubing, of copper mean generally XX% ambassadors and dealers That's some and not refrigerant, motors equipment. but

Christopher Dankert

Got it. Thanks so much.

Operator

This turn Nahmad for to question-and-answer I concludes to our session. over back the conference closing remarks. like any would Albert

Albert Nahmad

to I'll a A.J. want I that to confidence on really talk his interest. level Well, have, give raise. listening, thanks here. We that I we're about roll and just your for you the appreciate

going very stronger. we're to I get and strong think

other more start continues. the healthy, about changer. safe game offer; wish is now. business learning call stay about technology we'll at of that and you the than stay Bye-bye talk And our next think the initiative. at And us on to the solid And I quarter. year. I hope that, and It's I a up all take us

Operator

Thank you attending now today’s has for concluded. The conference presentation.

now may disconnect. You

Watsco (WSO) 11 Feb 212020 Q4 Earnings call transcript