Watsco Inc., Coconut Grove, FL, distributor of air conditioning and heating products, reported revenues grew 16% to $512 million for the second quarter ended June 30, 2006. Revenues grew 15% on a same-store basis. Net income was up 28% to $28.7 million.
For the six months ended June 30, 2006, revenues grew 15% to $906 million, with revenue growth of 14% on a same-store basis. Net income was up 32% to $41.8 million.
Albert H. Nahmad, Watsco's President and Chief Executive Officer, stated: "Strong demand for our products, higher prices related to the launch of new, higher-efficiency air conditioning systems and improved margins combined to produce terrific top and bottom-line performance. New higher-efficiency products have been well-accepted by the market and even more innovative products will be available in the future to provide a greater number of consumer choices to offset increasing energy costs."
Watsco added 23 new locations in the past year and expanded its product offerings. "The potential is huge as Watsco presently enjoys only 7-8% market share of the estimated $25 billion for our products," Nahmad said.
There are an estimated 120 million single-family homes in the U.S., most of which have central air conditioning and heating systems. Eventually, these systems will wear out and require repair or replacement.
Watsco is a distributor of air conditioning, heating and refrigeration equipment and related parts and supplies in the distribution segment of the HVAC industry, currently operating 362 locations serving over 38,000 customers in 32 states.