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, 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, 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, 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, Suite ...

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, 2020 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) FLORIDA 59-0778222 (State or other jurisdiction of ...

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, 2020 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 901 Miami, Fl ...

For the Transition Period From to 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, 2020 or ☐ Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number 1-5581 I.R.S. Employer Identification Number 59-0778222 WATSCO, INC. (a Florida Corporation) 2665 South Bayshore Drive, Suite ...

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, 2020 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 901 Miami, Florid ...

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, 2019 or 2665 South Bayshore Drive, Suite 901 Miami, FL 33133 (Address of principal executive offices, including zip code) (305) 714-4100 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: ☐ Transition Report Pursuant to ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the Transition Period From to Commission file number 1-5581 I.R.S. Employer Identification Number 59-0778222 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, 2019 or ☐ Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 Large accelerated filer ☒ Accelerated filer ☐ Emerging growth com ...

Revenue Growth - Revenues for Q2 2019 increased by $39.1 million, or 3%, with $22.8 million from new locations and acquisitions, and a same-store revenue increase of $19.9 million, or 1%[90] - For the first half of 2019, revenues increased by $43.8 million, or 2%, with a same-store revenue increase of $23.1 million, or 1%[98] Gross Profit and Margin - Gross profit for Q2 2019 increased by $7.2 million, or 2%, with a gross profit margin of 23.9%, down 20 basis points from 24.1% in Q2 2018[92] - Gross profit for the first half of 2019 increased by $10.1 million, or 2%, maintaining a gross profit margin of 24.4%[99] Expenses - Selling, general and administrative expenses for Q2 2019 rose by $10.0 million, or 5%, with expenses as a percentage of revenues increasing to 14.3% from 14.0% in Q2 2018[93] - Selling, general and administrative expenses for the first half of 2019 increased by $11.5 million, or 3%, with expenses as a percentage of revenues rising[100] - Selling, general and administrative expenses increased by $4.3 million, or 1%, compared to the same period in 2018, including $2.9 million for ongoing technology initiatives[1] Net Income - Net income attributable to Watsco for Q2 2019 increased by $0.2 million compared to Q2 2018, driven by higher revenues and gross profit, alongside a reduction in income taxes[97] - Net income attributable to Watsco for the first half of 2019 increased by $1.0 million, or 1%, compared to the same period in 2018, driven by higher revenues and gross profit[105] Income Taxes - The effective income tax rate for Q2 2019 was 21.7%, down from 23.8% in Q2 2018, primarily due to lower estimated foreign withholding taxes[96] - Income taxes decreased to $35.8 million for the first half of 2019, compared to $39.3 million for the same period in 2018, with effective income tax rates of 22.0% and 23.8% respectively[104] Cash Flow and Working Capital - Cash flows provided by operating activities for the first half of 2019 were $68.4 million, compared to $(19.3) million in 2018, an increase of $87.7 million[112] - Working capital increased to $1,114.6 million at June 30, 2019, from $1,084.2 million at December 31, 2018, reflecting higher accounts receivable and inventories[111] Acquisitions and Ownership - The company opened 11 new locations and acquired 7 locations in the six months ended June 30, 2019, bringing the total to 585 locations[89] - The company purchased an additional 20% ownership interest in Homans effective May 31, 2019, increasing its ownership to 100%[81] - The company acquired an additional 20% ownership interest in Homans for $32.4 million, increasing its ownership to 100%[118] - The company acquired assets of Peirce-Phelps, Inc. for $85.0 million, with consideration including $10.0 million in cash and shares valued at $58.6 million[122] Interest Expense - Interest expense, net for the first half of 2019 increased by $0.7 million, or 50%, primarily due to higher average outstanding borrowings and a higher effective interest rate[103] Dividends - Cash dividends paid were $3.20 per share during the first half of 2019, compared to $2.70 per share in 2018[124] Credit Facilities - The company maintained a $500.0 million revolving credit agreement, with $219.6 million outstanding as of June 30, 2019[116][117]

Revenue and Sales Performance - Revenues for Q1 2019 increased by $4.7 million, or 1%, with $4.1 million from new locations and a $2.7 million decrease from closed locations [92]. - On a same-store basis, revenues increased by $3.3 million, reflecting a 2% increase in HVAC equipment sales, a 2% decrease in other HVAC products, and a 4% decrease in commercial refrigeration products [92]. Profitability - Gross profit for Q1 2019 increased by $2.9 million, or 1%, with a gross profit margin improvement to 25.1% from 24.9% [93]. - Net income attributable to Watsco for Q1 2019 increased by $0.8 million, or 2%, driven by higher revenues and expanded profit margins [98]. Expenses - Selling, general and administrative expenses for Q1 2019 increased by $1.5 million, or 1%, remaining consistent at 19.3% of revenues [94]. - Interest expense, net, increased by $0.2 million, or 37%, due to higher average outstanding borrowings [96]. Cash Flow and Working Capital - Cash flows provided by operating activities increased to $52.9 million in Q1 2019 from a negative $41.6 million in Q1 2018, a change of $94.5 million [106]. - Working capital decreased to $1,020.6 million at March 31, 2019, from $1,084.2 million at December 31, 2018, primarily due to lease liabilities [103]. Tax and Financial Position - The effective income tax rates were 22.7% for Q1 2019, down from 23.8% in Q1 2018, due to higher share-based payment deductions [97]. - The company believes its financial position allows for obtaining additional debt financing or raising capital through equity securities for future acquisitions [116]. Investments and Acquisitions - The company acquired a 1.8% additional ownership interest in RSI for $4.9 million, increasing its total ownership to 38.1% [113]. - On April 2, 2019, a subsidiary acquired assets of Dunphey & Associates for $16.8 million in cash and $7.5 million in stock [115]. - The estimated purchase amount for additional ownership interests in RSI is approximately $142 million [114]. Shareholder Returns - Cash dividends paid were $1.60 per share in Q1 2019, up from $1.25 per share in Q1 2018 [117]. - A total of 6,370,913 shares have been repurchased under the share repurchase program at a cost of $114.4 million since its inception [118]. Company Operations - The company operates 575 locations as of March 31, 2019, an increase from 571 locations at the end of 2018 [91]. - The company maintains a $500 million revolving credit agreement, with $137.5 million outstanding as of March 31, 2019 [110]. Investing and Financing Activities - Net cash used in investing activities rose to $4.1 million in Q1 2019, compared to $3.4 million in Q1 2018, reflecting higher capital expenditures [108]. - Net cash used in financing activities increased to $54.9 million in Q1 2019, down from $23.3 million in Q1 2018, primarily due to lower borrowing requirements and increased dividends paid [109].