Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Exact name of registrant as specified in its charter) FLORIDA 59-0778222 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 For the Fiscal Year Ended December 31, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the T ...

Financial Performance - Revenues for Q3 2023 were $2,126.8 million, an increase of 4% compared to $2,035.8 million in Q3 2022, with $17.9 million attributed to new acquisitions and $1.7 million from new locations opened [81]. - Same-store sales for Q3 2023 were $2,107.2 million, reflecting a 4% increase from $2,033.3 million in Q3 2022 [83]. - Gross profit for Q3 2023 was $566.9 million, a 3% increase from $550.8 million in Q3 2022, with a gross margin of 26.7%, down 40 basis points from 27.1% in the prior year [84]. - Revenues for the nine months ended September 30, 2023, were $5,693.1 million, a slight decrease of $12.5 million or 0% compared to the same period in 2022 [90]. - Same-store sales decreased by 1% to $5,650.0 million for the nine months ended September 30, 2023 [91]. - Gross profit for the nine months ended September 30, 2023, was $1,577.7 million, down $19.0 million or 1% from the previous year, with a gross margin of 27.8% [92]. - Net income attributable to Watsco, Inc. rose by $13.3 million, or 8%, in Q3 2023 compared to the same period in 2022, driven by higher revenues and lower selling expenses [89]. Acquisitions and Growth Strategy - The company acquired Capitol District Supply Co., Inc. in March 2023 and Gateway Supply Company, Inc. in September 2023, contributing to its growth strategy [78]. - The company operated 691 locations as of September 30, 2023, an increase from 675 locations a year earlier, with 19 locations acquired and 5 opened during the year [80]. - The company acquired substantially all the assets of Gateway Supply Company, Inc. for a net purchase price of $106.3 million, consisting of $4.0 million in cash and 280,215 shares of Common stock [118]. - The company acquired Capitol, a distributor of air conditioning and heating products, for a total consideration of $3.1 million in cash and $1.9 million for repayment of indebtedness [119]. - The company continues to evaluate potential acquisitions and joint ventures, believing its financial position allows for obtaining additional debt financing or raising capital through equity securities if needed [120]. Expenses and Financial Management - Selling, general and administrative expenses decreased by 1% to $319.8 million for Q3 2023, with a same-store basis decrease of 2% compared to 2022 [85]. - Selling, general and administrative expenses for the nine months ended September 30, 2023, decreased by 1% to $911.0 million [94]. - Net interest expense increased by $1.4 million, or 291%, in Q3 2023 due to higher effective interest rates and increased borrowings [87]. - Cash flows provided by operating activities decreased by $95.6 million to $263.3 million for the nine months ended September 30, 2023 [105]. Market Conditions and Challenges - The company experienced a 1% revenue impact in Q3 2023 due to supply chain disruptions, with an estimated 3% impact for the first nine months of 2023 [73]. - The company anticipates continued challenges from inflationary pressures and supply chain disruptions affecting product availability and lead times [73]. - The U.S. Inflation Reduction Act of 2022 is expected to increase demand for higher-efficiency HVAC products, with $4.3 billion allocated for state-administered consumer rebate programs [72]. Shareholder Returns and Stock Management - The company paid cash dividends of $7.35 per share on Common and Class B common stock during the nine months ended September 30, 2023, compared to $6.35 per share in the same period of 2022 [121]. - The company has repurchased a total of 6,370,913 shares of Common and Class B common stock at a cost of $114.4 million since the inception of the repurchase program, with 1,129,087 shares remaining authorized for repurchase [122]. - The valuation of the RSI Shareholders' common stock was approximately $426.0 million as of September 30, 2023, based on the criteria set forth in the Shareholders' Agreement [116]. - The company has the discretion to fund up to 80% of any purchase from the RSI Majority Holders using Watsco Common stock, with a limit of $125.0 million on the amount of RSI shares that may be sold during any rolling 12-month period [117]. Other Income and Financial Activities - Other income increased to $9.5 million in Q3 2023 from $6.9 million in Q3 2022, reflecting the company's 38.1% equity interest in Russell Sigler, Inc. [86]. - During the nine months ended September 30, 2023, the company issued and sold 45,000 shares of Common stock under the ATM Program for net proceeds of $15.2 million, with $284.7 million remaining available for sale under the program [113]. - The company entered into a second amended and restated sales agreement with Baird, removing GS as a sales agent under the ATM Program [114]. - There have been no material changes to the information regarding market risk since the last annual report [123].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 2665 South Bayshore Drive, Suite 901 Miami, FL 33133 (Address of principal executive offices, including zip code) (305) 714-4100 For the Quarterly Period Ended June 30, 2023 or ☐ Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission file numb ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2023 or ☐ Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission file number 1-5581 I.R.S. Employer Identification Number 59-0778222 WATSCO, INC. (a Florida Corporation) 2665 South Bayshore Drive, Suite ...

☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission File Number 1-5581 WATSCO, INC. (Exact name of registrant as specified in its charter) FLORIDA 59-0778222 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2022 or ☐ Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ Commission file numb ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2022 or ☐ Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission file number 1-5581 I.R.S. Employer Identification Number 59-0778222 WATSCO, INC. (a Florida Corporation) 2665 South Bayshore Drive, Suite ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2022 or ☐ Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission file number 1-5581 I.R.S. Employer Identification Number 59-0778222 WATSCO, INC. (a Florida Corporation) Indicate by check mark whether t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 For the Fiscal Year Ended December 31, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission File Number 1-5581 WATSCO, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2021 or ☐ Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission file number 1-5581 I.R.S. Employer Identification Number 59-0778222 WATSCO, INC. (a Florida Corporation) 2665 South Bayshore Drive, S ...