Monthly Archives: January 2009

Watsco – Company Overview

Watsco Inc. (Watsco) is an independent distributor of heating, air conditioning, and refrigeration (HVAC/R) products in the US. The company operates at 434 locations in 34 states serving over 40,000 contractors and dealers who service the replacement and new construction markets. The company is headquartered in Coconut Grove, Florida and employs about 3,600 people.

The company recorded revenues of $1,758 million during the fiscal year ended December 2007, a decrease of 0.7% compared with 2006. The decrease in sales was due to decline in sales of HVAC equipment and other products. The operating profit of the company was $111.2 million in 2007, a decrease of 17.9% compared with 2006. The net profit was $65.6 million in 2007, a decrease of 20.4% compared with 2006.

Watsco – Key Facts


Head Office

Watsco, Inc

Watsco, Inc

2665 South Bayshore Drive

Suite 901

Coconut Grove

Florida 33133

USA

Phone

1 305 714 4100

Fax

1 305 858 4492

Web Address

http://www.watsco.com

Revenue / turnover (USD Mn)

1,758.0

Financial Year End

December

Employees

3,600

New York Ticker

WSO

Watsco – Business Description

Watsco is an independent distributor of air conditioning, heating, and refrigeration equipment, and related parts and supplies (HVAC/R) in the United States. The company distributes its products through a network of 1,300 distributors in the US. The company serves over 40,000 contractor customers from 434 locations in 34 states in the US and Puerto Rico.

The company offers: equipment, including residential central air conditioners ranging from 1-1/2 to 5 tons; light commercial air conditioners ranging up to 20 tons; gas, electric and oil furnaces ranging from 50,000 to 150,000 BTUs (British thermal units); commercial air conditioning and heating equipment and systems ranging from 5 to 25 tons; other specialized equipment; and other ancillary supplies. It also offers a number of related parts and supplies. Watsco sells these products to contractors. These products are basically used in installing or repairing a central air conditioner, furnace or refrigeration system.

Residential central air conditioning and heating equipment is sold to both the replacement and the homebuilding markets.Watsco also sells products to the refrigeration market. Such products include condensing units, compressors, evaporators, valves, refrigerant, walk-in coolers and ice machines for industrial and commercial applications. The company distributes products manufactured by Copeland Compressor Corporation, EI Du Pont De Nemours and Company, Heatcraft Refrigeration Products Company, Tecumseh Products Company and The Manitowoc Company.

Watsco carries approximately 50,000 SKUs of HVAC/R equipment, parts and supplies for residential and light commercial applications and continue to expand its offering of energy-efficient air conditioning systems and accessories.

The company offers internet and e-Commerce services. Sites such as Comfortsupply.com, Homans.com and ACDoctor.com offers licensed contractor’s connectivity 24 hours a day, search for the desired products, verify inventory availability, obtain pricing, place orders, check order status, schedule pickup or delivery times and make payments. These online services offer maximum convenience to contractors as they are available in all of Watsco’s major markets.

In addition to technical support at the point of sale, a variety of training programs are offered to enhance contractor technical and business skills. Other competitive services include, providing contractor credit, parts expertise, warranty service and support.

Watsco – Key Employees


Name

Job Title

Board

Compensation

Albert H. Nahmad

Chairman, President and Chief Executive Officer

Executive Board

3430450 USD

Cesar L. Alvarez

Director

Non Executive Board

4000 USD

Robert L. Berner

Director

Non Executive Board

169654 USD

Denise Dickins

Director

Non Executive Board

168654 USD

Frederick H. Joseph

Director

Non Executive Board

3000 USD

Paul F. Manley

Director

Non Executive Board

104000 USD

Bob L. Moss

Director

Non Executive Board

4000 USD

George P. Sape

Director

Non Executive Board

4000 USD

Gary L. Tapella

Director

Non Executive Board

16444 USD

Barry S. Logan

Senior Vice President and Secretary

Senior Management

493336 USD

Ana M. Menendez

Chief Financial Officer and Treasurer

Senior Management

317951 USD

Stephen R. Combs

President, Gemaire Distributors

Senior Management

838652 USD

Carole J. Poindexter

President, Baker Distributing Company

Senior Management

516771 USD

Watsco – Major Products and Services

The company’s key products and services include the following:

  • Residential central air conditioners
  • Light commercial air conditioners
  • Gas furnaces
  • Electric furnaces
  • Oil furnaces
  • Commercial air conditioning and heating equipment and systems
  • Specialized equipment
  • Parts and supplies
  • Condensing units
  • Compressors
  • Evaporators
  • Valves
  • Refrigerant
  • Walk-in coolers and ice machines