Watsco Inc. Q2 Sales Rise Slightly to $3.36B

TL;DR

Watsco's Q2 sales up slightly to $3.36B, profits holding steady.

AI Summary

Watsco Inc. reported its Q2 2024 results, with net sales for the six months ended June 30, 2024, reaching $3.36 billion, a slight increase from $3.31 billion in the same period of 2023. The company's gross profit for the first six months of 2024 was $946.3 million, up from $929.7 million in the prior year. Operating income also saw a modest rise to $449.9 million for the first half of 2024, compared to $446.5 million for the first half of 2023.

Why It Matters

This filing provides insight into Watsco's financial performance in the first half of 2024, indicating steady revenue generation and profitability in the wholesale HVAC and building products sector.

Risk Assessment

Risk Level: low — The filing indicates stable financial performance with modest growth, suggesting low immediate risk.

Key Numbers

• $3.36B — Net Sales (6 months ended 06/30/2024) (Represents a slight increase from the prior year period.)
• $946.3M — Gross Profit (6 months ended 06/30/2024) (Shows improved profitability over the prior year.)
• $449.9M — Operating Income (6 months ended 06/30/2024) (Indicates stable operational performance.)

Key Players & Entities

• Watsco Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• $3.36 billion (dollar_amount) — Net sales for the six months ended June 30, 2024
• $3.31 billion (dollar_amount) — Net sales for the six months ended June 30, 2023
• $946.3 million (dollar_amount) — Gross profit for the first six months of 2024
• $929.7 million (dollar_amount) — Gross profit for the first six months of 2023
• $449.9 million (dollar_amount) — Operating income for the first half of 2024
• $446.5 million (dollar_amount) — Operating income for the first half of 2023

FAQ

Key Financial Figures

• $0.50 — nge on which registered Common stock, $0.50 par value WSO New York Stock Exchan

Filing Documents

• d798256d10q.htm (10-Q) — 1059KB
• d798256dex311.htm (EX-31.1) — 10KB
• d798256dex312.htm (EX-31.2) — 10KB
• d798256dex313.htm (EX-31.3) — 10KB
• d798256dex321.htm (EX-32.1) — 7KB
• g798256g0620174619652.jpg (GRAPHIC) — 3KB
• 0001193125-24-192839.txt ( ) — 4954KB
• wso-20240630.xsd (EX-101.SCH) — 32KB
• wso-20240630_cal.xml (EX-101.CAL) — 47KB
• wso-20240630_def.xml (EX-101.DEF) — 248KB
• wso-20240630_lab.xml (EX-101.LAB) — 306KB
• wso-20240630_pre.xml (EX-101.PRE) — 268KB
• d798256d10q_htm.xml (XML) — 758KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Unaudited Financial Statements 3 Condensed Consolidated Unaudited Statements of Income – Quarters and Six Months Ended June 30, 2024 and 2023 3 Condensed Consolidated Unaudited Statements of Comprehensive Income – Quarters and Six Months Ended June 30, 2024 and 2023 4 Condensed Consolidated Unaudited Balance Sheets – June 30, 2024 and December 31, 2023 5 Condensed Consolidated Unaudited Statements of Shareholders' Equity – Quarters and Six Months Ended June 30, 2024 and 2023 6 Condensed Consolidated Unaudited Statements of Cash Flows – Six Months Ended June 30, 2024 and 2023 8 Notes to Condensed Consolidated Unaudited Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 24

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25 Item 5. Other Information 25 Item 6. Exhibits 25 SIGNATURE 26 EXHIBITS 2 of 26 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM1. CONDENSED CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS WATSCO, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF INCOME (In thousands, except per share data) Quarter Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues $ 2,139,328 $ 2,003,084 $ 3,704,319 $ 3,553,725 Cost of sales 1,559,568 1,440,462 2,693,934 2,542,946 Gross profit 579,760 562,622 1,010,385 1,010,779 Selling, general and administrative expenses 319,029 304,155 628,577 591,212 Other income 8,072 7,238 13,532 10,878 Operating income 268,803 265,705 395,340 430,445 Interest (income) expense, net ( 4,913 ) 3,415 ( 7,383 ) 4,030 Income before income taxes 273,716 262,290 402,723 426,415 Income taxes 59,065 56,887 83,810 90,641 Net income 214,651 205,403 318,913 335,774 Less: net income attributable to non-controlling interest 33,241 32,639 50,499 52,937 Net income attributable to Watsco, Inc. $ 181,410 $ 172,764 $ 268,414 $ 282,837 Earnings per share for Common and Class B common stock: Basic $ 4.50 $ 4.43 $ 6.71 $ 7.27 Diluted $ 4.49 $ 4.42 $ 6.69 $ 7.25 See accompanying notes to condensed consolidated unaudited financial statements. 3 of 26 Table of Contents WATSCO, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Quarter Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income $ 214,651 $ 205,403 $ 318,913 $ 335,774 Other comprehensive (loss) income, net of tax Foreign currency translation adjustment ( 3,336 ) 7,115 ( 11,336 ) 7,375 Other comprehensive (loss) income ( 3,336 ) 7,115 ( 11,336 ) 7,375 Comprehensive income 211,315 212,518 307,577 343,149 Less: comprehensive income attributable to non-controlling interest 32,205 34,9

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View this 10-Q filing on SEC EDGAR