Watsco(WSO_B) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter sales increased by 9% to a record $1.75 billion, with a gross profit increase of 13% to$ 468 million[8] - Operating income grew by 26% to $136 million, with an operating margin expansion of 110 basis points to 7.8%[8] - Annual sales reached$ 7.62 billion, representing a 5% increase, with a same-store growth of 3%[14] - Revenues for Q4 2024 reached $1,753,962, a 9.4% increase from$ 1,603,197 in Q4 2023[32] - Gross profit margin improved to 26.7% in Q4 2024, compared to 25.8% in Q4 2023[32] - Net income attributable to Watsco shareholders was $96,841 in Q4 2024, up from$ 82,547 in Q4 2023, representing a 17.5% increase[32] - Operating income for the year was $781,775, slightly down from$ 794,810 in 2023, reflecting a decrease of 1.8%[32] - Diluted earnings per share for 2024 were $13.30, compared to$ 13.67 in 2023, showing a decrease of 2.7%[32] Cash Flow and Assets - Operating cash flow for 2024 increased by 38% to a record $773 million, equating to 122% of net income[16] - Total current assets increased to$ 3,079,981 in 2024 from $2,391,931 in 2023, reflecting a growth of 28.8%[34] - Cash and cash equivalents at the end of 2024 were$ 526,271, significantly up from $210,112 in 2023, marking a 150.5% increase[36] - Net cash provided by operating activities for 2024 was$ 773,102, compared to $561,954 in 2023, indicating a 37.5% increase[36] - Total assets grew to$ 4,479,523 in 2024 from $3,729,182 in 2023, an increase of 20.1%[34] Dividends and Shareholder Returns - The annual dividend was raised by 11% to$ 12.00 per share, marking the 51st consecutive year of dividend payments[3][17] E-commerce and Digital Growth - E-commerce sales grew by 8% to $2.6 billion for the year, accounting for 35% of annual sales[14] - The digital user community expanded to approximately 64,000 users, a 15% increase from the prior year[14] Strategic Initiatives - Watsco's buy-and-build strategy has resulted in the acquisition of 70 companies since 1989, contributing to approximately$ 1.6 billion in annualized sales from 111 locations[19] - The transition to A2L products is underway, providing incremental growth opportunities as technology platforms gain adoption[6] - Watsco's technology platforms have shown to produce higher growth rates and approximately 60% less attrition among active users[20] Expenses - SG&A expenses increased to $1,293,439 in 2024 from$ 1,223,507 in 2023, a rise of 5.7%[32]