Watsco, Inc. (NYSE:WSO) (Paris: WSO) today reported results for the fourth quarter and year ended December 31, 2011.
Fourth Quarter Results
Earnings per share increased 26% to 39 cents per diluted share compared to 31 cents per diluted share in 2010. Net income increased 28% to $13 million versus $10 million last year.
Operating income improved 49% to a record $33 million with operating margin expanding 170 basis-points to 5.0%. On a same-store basis, operating income increased 31% to $28 million with operating margin also expanding 170 basis-points.Revenues were $646 million and declined 12% on a same-store basis. Gross profit was a record $161 million with gross profit margin improving 150 basis-points to 24.9%. On a same-store basis, gross profit decreased 6% with gross profit margin increasing 180 basis-points to 25.1%. Selling, general and administrative (SG&A) expenses decreased 3% to $128 million and as a percentage of sales were 19.9% versus 20.1% last year. Excluding new locations, SG&A declined 13% or $17 million to $115 million. Albert Nahmad, Watsco’s President & Chief Executive Officer stated: “Our team did a great job of anticipating and reacting to more difficult market conditions and produced higher margins and strong earnings growth during the quarter. These results are a testament to our culture, which provides local leadership the empowerment and incentives to constantly identify opportunities that enhance value to our customers and generate higher profitability.” Full Year Results Earnings per share increased 10% to $2.74 per diluted share on net income of $90 million, compared to $2.49 per diluted share on net income of $81 million in 2010. Operating income increased 20% to a record $199 million with operating margin expanding 90 basis-points to 6.7%. On a same-store basis, operating income increased 14% to $187 million with operating margin also improving 90 basis-points to 6.7%.