MIAMI — Watsco Inc. reported record operating results for the first quarter ended March 31, 2022.
The company highlighted 34% sales growth to a record $1.52 billion, a 109% increase in EPS to a record $2.90 on record net income attributable to Watsco of $113 million, and a 109% increase in operating income to a record $171 million (400 basis-point operating margin expansion to 11.2%) .
In addition, a 53% gross profit increase reached a record $450 million (370 basis-point increase in gross margin), and the company reported a 30% increase in SG&A (a 60 basis-point reduction in SG&A as a percentage of sales).
The results reflect added investments to grow adoption of Watsco’s industry-leading technology platforms, which collectively transform the customer experience, enhance operational efficiency, and help contractors grow faster as they deliver a more contemporary experience to homeowners and businesses. Taken as a whole, we believe that Watsco’s technology offering is solidifying existing customer relationships and creating new customer acquisition opportunities that are producing consistent gains in market share.
“Watsco delivered exceptional performance during the first quarter. The company achieved strong performance across all geographic markets and product categories and reflects a combination of strong unit growth, our ability to capture increased cost of goods through higher selling prices, a richer mix of high-efficiency systems and what, we believe, are technology-driven gains in market share," said Chairman and CEO Albert Nahmad. "Our teams and associates are accomplishing extraordinary things and we thank them for their commitment and remarkable efforts to serve customers under what continues to be challenging circumstances. Although it is still early in the year, we are encouraged by current demand trends and expect Watsco to produce another record year.”