Watsco, Inc. (NYSE:WSO) (PARIS:WSO), Miami, FL, sales for the third quarter ended Sept. 30, 2011, were up 12 percent to $914 million, including $76 million of sales added by new locations. Same-store sales improved 4 percent, reflecting a 5 percent increase in air conditioning and heating (HVAC) equipment, a 1 percent increase in other HVAC products, and a 4 percent increase in commercial refrigeration products.
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Profit for the quarter was $34 million.
Albert Nahmad, president, said: "Strong replacement HVAC equipment unit growth, increased sales of commercial products, effective management of SG&A expenses and good performance at our new locations all combined to enhance margins and produce record earnings per share. We are focused on overcoming short-term economic challenges by growing market share, reducing operating costs and generating cash flow. For the long-term, we remain very positive about our fundamentals – a movement towards higher-efficiency HVAC systems, ever-improving efficiency of our operations and strategic use of our balance sheet to grow our business."
Results from new locations include 35 locations from joint ventures formed in 2011 with Carrier Corp. in the northeast U.S. and Mexico. Watsco owns 60 percent of the joint ventures and Carrier owns 40 percent. The locations had combined revenues of $285 million in 2010.
In the first nine months, revenues increased 7 percent to a record $2.3 billion and include $126 million of sales from new locations. Same-store sales increased 2 percent, reflecting flat sales of HVAC equipment (60 percent of sales), a 1 percent increase in other HVAC products (33 percent of sales) and a 9% increase in commercial refrigeration products (7 percent of sales). Profit was $77 million.
