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TheStreet Open House

Watsco Sets New Records For Sales, Operating Profit And EPS During Second Quarter

Stocks in this article: WSO

Dividends paid during 2012 increased 15% to $41 million. In January 2012, the Company raised its quarterly dividend rate 9% to 62 cents per share. Watsco has paid dividends for 38 consecutive years and 2012 will mark the eleventh year of paying increasing dividends.

Mr. Nahmad added, “Shareholders continue to participate in the Company’s success through increasing dividends. Since 2000, our cumulative operating cash flow has been approximately $850 million compared to net income of approximately $800 million, surpassing our stated goal of generating cash flow greater than net income.”

Option to Purchase Additional 10% Interest of Carrier Enterprise LLC

The Company exercised its option to purchase an additional 10% ownership interest in Carrier Enterprise LLC effective July 2, 2012, for cash consideration of approximately $52 million. This raises the Company’s ownership interest in Carrier Enterprise LLC to 70%.

Outlook for 2012

Watsco’s outlook for 2012 diluted earnings per share is revised to a range of $3.15 to $3.25 per diluted share, representing a prospective growth rate of 15% to 19% over 2011’s results.

Conference Call

Watsco is hosting a conference call at 10:00 a.m. (EDT) on July 25, 2012, to discuss its second quarter earnings results. The conference call will be web-cast by CCBN's StreetEvents at http://www.watsco.com. A replay of the conference call will be available on the Company's website. For those unable to connect to the webcast, you may listen via telephone. The dial-in number for callers in the United States is (866) 740-9405; the dial-in number for callers outside of the United States is (702) 696-4900.

Use of Non-GAAP Financial Information

In this release, the Company discloses non-GAAP measures of same-store sales and adjusted diluted earnings per share. Information referring to “same-store basis” excludes the effects of locations acquired or locations opened or closed during the immediately preceding 12 months unless they are within close geographical proximity to existing locations. A reconciliation of adjusted diluted earnings per share to diluted earnings per share appears in the pages that follow. The Company believes that this information provides greater comparability regarding its ongoing operating performance. These measures should not be considered an alternative to measurements required by accounting principles generally accepted in the United States (GAAP).

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