Watsco (WSO) Q1 FY2024 earnings: revenue $1.6 billion, up 0.9% on the year

Watsco Inc. (WSO) reported revenue of $1.6 billion for Q1 FY2024, the quarter ended 31 March 2024, up 0.9% on the same quarter a year earlier. Net income was $87 million, down 21.0% on the year, and diluted earnings per share $2.17. The figures are the company's own, from the 10-Q it filed with the SEC on 3 May 2024.

Revenue$1.6 billionup 0.9%

Net income$87 milliondown 21.0%

Diluted EPS$2.17

QuarterQ1 FY2024ended 31 March 2024

The quarter, against the one before and a year earlier

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Revenue	1,565	1,603	n/a	n/a
Cost of revenue	1,134	1,189	n/a	n/a
Gross profit	431	414	n/a	n/a
Gross margin	27.5%	25.8%	n/a
Selling, general and administrative	310	312	n/a	n/a
Operating income	127	108	n/a	n/a
Operating margin	8.1%	6.7%	n/a
Pre-tax income	129	109	n/a	n/a
Income tax	24.7	11.0	n/a	n/a
Effective tax rate	19.2%	10.1%	n/a
Net income	87.0	82.5	n/a	n/a
Net margin	5.6%	5.1%	n/a
Diluted EPS	$2.17	$2.06	n/a	n/a

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Operating cash flow	104	299	n/a	n/a
Capital expenditure	5.8	10.0	n/a	n/a
Free cash flow	97.9	289	n/a	n/a
Free cash flow margin	6.3%	18.0%	n/a
Cash from investing	-211	-13.3	n/a	n/a
Cash from financing	178	-252	n/a	n/a
Depreciation and amortisation	9.9	9.7	n/a	n/a
Share-based compensation	8.1	9.2	n/a	n/a
Dividends paid	96.8	96.5	n/a	n/a
Dividend per share	$2.45	n/a	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Shareholders' equity	2,526	2,230	n/a	n/a
Non-controlling interest	401	386	n/a	n/a
Debt	306	305	n/a	n/a
Operating lease liabilities	n/a	277	n/a	n/a
Finance lease liabilities	15.4	12.2	n/a	n/a
Other liabilities	1,108	519	n/a	n/a
Total liabilities and equity	4,357	3,729	n/a	n/a
Fixed assets	138	136	n/a	n/a
Goodwill	459	457	n/a	n/a
Intangible assets	214	218	n/a	n/a
Investments	200	0.0	n/a	n/a
Cash and equivalents	279	210	n/a	n/a
Receivables	832	798	n/a	n/a
Inventory	1,656	1,347	n/a	n/a
Other assets	579	562	n/a	n/a
Total assets	4,357	3,729	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	2,127	1,603	1,565	2,139	2,160	1,754	1,531	2,062	2,067	1,579	1,533	2,105
Cost of revenue	1,560	1,189	1,134	1,560	1,594	1,286	1,101	1,459	1,498	1,150	1,105	1,526
Gross profit	567	414	431	580	566	468	430	603	569	428	428	579
Gross margin	27%	26%	28%	27%	26%	27%	28%	29%	28%	27%	28%	28%
SG&A	320	312	310	319	326	338	323	339	344	333	323	349
Operating income	257	108	127	269	250	136	112	272	235	102	110	238
Operating margin	12%	7%	8%	13%	12%	8%	7%	13%	11%	6%	7%	11%
Pre-tax income	255	109	129	274	257	143	118	274	238	107	117	242
Tax rate	21%	10%	19%	22%	22%	19%	20%	21%	21%	19%	20%	21%
Net income	171	82.5	87.0	181	171	96.8	80.1	184	162	71.7	79.1	163
Net margin	8%	5%	6%	8%	8%	6%	5%	9%	8%	5%	5%	8%
Diluted EPS	$4.35	$2.06	$2.17	$4.49	$4.22	$2.37	$1.93	$4.52	$3.98	$1.82	$1.87	$4.00
Operating cash flow	353	299	104	57.7	233	379	-178	-7.4	355	400	-18.9	-2.5
Capital expenditure	9.7	10.0	5.8	6.4	9.8	8.0	7.5	6.8	8.9	11.3	7.0	9.0
Free cash flow	343	289	97.9	51.3	223	371	-185	-14.3	346	388	-25.9	-11.5
Dividends paid	95.7	96.5	96.8	109	109	109	109	121	122	122	122	134
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 March 2024, filed 3 May 2024, accession 0001193125-24-130664: the filing on EDGAR. All of Watsco Inc.'s filings: EDGAR company page.

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