Watsco Named to Fortune Magazine World’s Most Admired Company List

MIAMI, March 07, 2022 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today that it has been named to the FORTUNE Magazine 2022 World’s Most Admired Company list.

FORTUNE conducts a comprehensive global survey of thought leaders annually across 52 industries to determine which companies excel in a variety of factors including long-term investment value, innovation, quality of management, social responsibility, competitiveness, financial stability and ability to attract talent. This year marks Watsco’s inclusion into this important list of companies.

Albert H. Nahmad, Watsco’s Chairman and CEO said: “It is an honor to be recognized as one of FORTUNE’s Most Admired Companies. This recognition is a testament to our culture and would not be possible without the contributions of our business partners and particularly our employees who make extraordinary efforts to serve our contractor customers every day.”

Watsco’s entrepreneurial culture and de-centralized operating model were established decades ago and continue to drive the Company’s performance today. The tenets of Watsco’s culture include:

• managing and investing with a long-term perspective
• empowering entrepreneurs to make local decisions with local customers in mind
• creating a sustainable competitive edge through our industry-leading technology platforms
• respecting entrepreneurs and management teams that join our company via acquisition
• promoting an ownership culture with long-term equity for over 125 key leaders
• providing excellent wellness and retirement benefits for our employees
• establishing strong and respectful relationships with our OEM partners
• instilling a growth mindset and culture of continuous improvement
• sustaining financial strength through conservative management of our balance sheet
  

Watsco’s distribution strategy began in 1989. Today, the Company operates the industry’s largest network for heating, air conditioning and refrigeration (HVAC/R) products with 671 locations covering large portions of the United States, Canada, Mexico, Puerto Rico and Latin America. Watsco is proud to serve an estimated 350,000 contractors and technicians who visit, call and digitally engage with us to deliver timely and effective solutions to countless homeowners and businesses. Watsco has achieved the following results since its entry into HVAC/R distribution (unaudited):

	1989	2021	CAGRs(1)
Sales	$64 million	$6.3 billion	16%
Operating income	$2 million	$629 million	20%
Dividends	$.5 million	$295 million	23%
Locations	16	671
Total shareholder return (1)			19%
———– (1) Compounded annual growth rates (CAGRs) are measured for the 32-year period ended December 31, 2021. Total shareholder return reflects market appreciation of Watsco’s stock and reinvestment of dividends.

Watsco is committed to play an active role in the transition to a lower-carbon economy, which accelerated during 2021. Watsco continued to drive sales of high efficiency and non-fossil fuel equipment which resulted in 26% sales growth over 2020. With heating and air conditioning accounting for roughly half of U.S. household energy consumption according to the Department of Energy, replacing old energy-intensive HVAC systems for newer, higher-efficiency systems helps homeowners save energy and reduce their carbon footprint. Watsco’s sales of high-efficiency equipment over the last two years averted the release of an estimated 10.1 million metric tons of CO2e emissions, which is equivalent to taking 2.2 million passenger vehicles off the road for a year.

About Watsco

Watsco is the largest distribution network for heating, air conditioning and refrigeration (HVAC/R) products with locations in the United States, Canada, Mexico and Puerto Rico, and on an export basis to Latin America and the Caribbean. Watsco estimates that over 350,000 contractors and technicians visit or call one of its 671 locations each year to get information, obtain technical support and buy products. Additional information about Watsco may be found at www.watsco.com.

This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, the seasonality of product sales, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments. Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.

Barry S. Logan
Watsco, Inc.
Executive Vice President
(305) 714-4102
e-mail: blogan@watsco.com