Watsco Reports Strong Q2 Results

Watsco,WSO today reported record results for the second quarter and for the six months ended June 30, 2010. The results include Carrier Enterprise, a joint venture formed on July 1, 2009 with Carrier Corporation, which added 95 locations to the Watsco network. Watsco owns 60% of Carrier Enterprise and Carrier owns 40%. Watsco is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies in the HVAC/R industry, currently operating 506 locations serving over 50,000 customers in 36 states, Puerto Rico, Latin America and the Caribbean. Watsco's pro forma revenues for 2009 were $2.6 billion. Earnings per share increased 93% to a record $1.08 per diluted share on record net income of $35 million, compared to $0.56 per diluted share on net income of $16 million in 2009. Revenues increased 114% to a record $865 million, including $400 million of sales added by Carrier Enterprise. Gross profit increased 99% to a record $201 million and gross profit margin was 23.3% versus 24.9%, reflecting lower selling margins for Carrier Enterprise. Operating income increased 170% to a record $71 million with operating margins expanding 170 basis-points to 8.2%.