Watsco(WSO_B) - 2024 Q3 - Quarterly Results

Financial Performance - Watsco's Q3 2024 sales reached a record $2.16 billion, a 2% increase year-over-year, with flat same-store sales[7] - For the nine-month period ended September 30, 2024, sales increased 3% to a record$ 5.9 billion, with a 1% increase on a same-store basis[8] - Revenues for the quarter ended September 30, 2024, were $2,160,036, compared to$ 2,126,845 for the same period in 2023, representing a growth of 1.6%[16] - Net income attributable to Watsco shareholders for the nine months ended September 30, 2024, was $439,445, down from$ 453,790 in the same period of 2023, a decline of 3.2%[16] - Operating income for the nine months ended September 30, 2024, was $645,587, compared to$ 687,062 for the same period in 2023, a decrease of 6.0%[16] - Diluted earnings per share for the quarter ended September 30, 2024, was $4.22, down from$ 4.35 in the same quarter of 2023[16] Cash Flow and Assets - Operating cash flow improved by 50% to a record $394 million for the nine-month period[7] - Net cash provided by operating activities for the nine months ended September 30, 2024, was$ 394,205, significantly higher than $263,340 for the same period in 2023, an increase of 49.7%[18] - Total current assets increased to$ 3,132,992 as of September 30, 2024, from $2,391,931 at the end of 2023, reflecting a growth of 30.9%[17] - Cash and cash equivalents rose to$ 294,354 as of September 30, 2024, compared to $210,112 at the end of 2023, an increase of 40.1%[17] Profitability and Margins - Gross profit for Q3 2024 was$ 566 million, resulting in a gross margin of 26.2%[7] - Gross profit margin decreased to 26.2% in Q3 2024 from 26.7% in Q3 2023[16] - The company estimates that ongoing investments to regain market share have diluted gross margins by approximately 30 basis points for the nine-month period[6] Inventory and Liabilities - The company reported a significant increase in inventories, which rose to $1,596,795 as of September 30, 2024, from$ 1,347,289 at the end of 2023, an increase of 18.5%[17] - Total liabilities increased to $1,355,605 as of September 30, 2024, from$ 1,112,992 at the end of 2023, a rise of 21.8%[17] Digital Engagement and E-commerce - Approximately 61,000 contractor businesses and technicians engaged with Watsco digitally, a 14% increase year-over-year[10] - E-commerce sales grew by 5% during the nine-month period, accounting for 35% of total sales[10] - The annualized gross merchandise value (GMV) of products sold through Watsco's OnCallAir® platform was approximately $1.4 billion for the 12-month period[10] Dividends and Financial Position - Watsco's annual dividend rate was increased by 10% to$ 10.80 per share effective April 2024[11] - The company has a debt-free balance sheet with $550 million in cash and short-term investments as of September 30, 2024[7]