Watsco Sets High Sales and Results in 2015
Watsco Inc., an HVACR distributor, has reported record results for the fourth quarter and the year that ended on December 31, 2015.
Some of the highlights of Watsco’s fourth quarter results include the following:
* Nine percent earnings per share (EPS) growth to a record 75 cents.
* An increase of 4 percent in the operating income to a record $54 million.
* Ten basis-point expansion in operating margins to a record 6 percent.
* Twenty basis-point improvement in gross margin.
* Three percent sales growth to a record $904 million (4 percent on a same-store basis).
Here are the sales trends of the company for the fourth quarter:
* Six percent HVAC equipment growth. It represents 65 percent of sales that include 8 percent growth in the United States.
* Flat sales for other HVAC products (30 percent of sales).
* An increase of 4 percent in commercial refrigeration products (5 percent of sales).
According to Albert H. Nahmad, the Chairman and CEO of Watsco Inc. said, “Watsco produced another solid quarter of earnings growth, with expanded operating margins on record sales, market share gains, and record cash flow. We experienced consistent growth in both residential and commercial markets, with continued strength in sales of high-efficiency replacement systems. These results are particularly satisfying given the blockbuster results we achieved in the fourth quarter of 2014. overall, our results represent a nice finish to another excellent year.”
Here are some more details on the highlights of the company’s achievements for the year 2015:
* Thirteen percent earnings per share growth to a record $4.90.
* An increase of 10 percent for the operating income to a record $337 million.
* Forty basis-point expansion in operating margins to a record 8.2 percent.
* Thirty basis-point improvement in gross profit margin.
* Twenty basis-point reductions in selling, general, and administrative expenses as a percentage of sales to a record low.
* Four percent sales growth to a record of $4.11 billion (5 percent on a same-store basis).
The sales trend of the company for the whole year of 2015 are as follows:
* Seven percent HVAC equipment growth or 66 percent of sales that include 8 percent growth in the United states.
* Two percent increase in other HVAC products, or 29 percent of the company’s total sales.
* Two percent increase in commercial refrigeration products, or 5 percent of the year’s sales.
“2015 was an outstanding year for Watsco, which we believe highlights the stability and consistency of our company. We are especially proud of achieving record operating margins given the substantial investments we have made in products, technology, and people to drive long-term performance and innovation in our business,” Nahmad added.