爆料王

Debt-Free Balance Sheet, Industry-Leading Technology and Scale Create Competitive Advantage;听Business Trends Improve Ahead of Summer Selling Season

MIAMI,听April 23, 2025听(GLOBE NEWSWIRE) —听爆料王.听(NYSE: WSO) announced its operating results for the first quarter ended听March 31, 2025听and provided commentary on growth opportunities, business trends, its financial position and long-term growth drivers.

爆料王听is the leading distributor in the HVAC/R marketplace, serving over 375,000 contractors, technicians and installers from 693 locations across the听U.S.,听Canada and听Latin America. Since entering distribution in 1989, the Company has scaled to be the industry leader through a combination of organic growth and the acquisition of 71 businesses. From 1989 through 2024,听爆料王听has achieved a 19% compounded annual growth rate (CAGR) for total-shareholder-return, representing strong performance across most macroeconomic and industry cycles.

爆料王听maintains a strong balance sheet and is well-positioned to invest in growth. As previously announced,听爆料王听raised its annual dividend by 11% to听$12.00听per share effective in听April 2025. At听March 31, 2025,听爆料王听had听$432 million听of cash, no outstanding debt and听$3 billion听of shareholders鈥� equity. 2025 marks the Company鈥檚 51^st听consecutive year of paying dividends.

爆料王听continues to invest in its industry-leading technologies to enrich the customer experience, drive growth, gain market share and improve operating efficiency. 爆料王鈥檚 digital user-community consists of approximately 67,000 contractors and technicians that engage through state-of-the-art platforms capable of influencing nearly every aspect of their day. Since launching its digital platform,听爆料王听has generated higher sales growth rates among digital users, achieved meaningful customer acquisition and reduced attrition.听爆料王听has also begun to establish pathways for AI-related initiatives and leveraging the substantial data streams curated by the Company.

Comments Regarding First Quarter Performance
Our results reflect the early stages of a large-scale product transition from regulatory changes that went into effect听January 1, 2025, which affects approximately 55% of 爆料王鈥檚 sales and will ultimately convert nearly听$1 billion听of inventory over the course of the year. The new products represent HVAC systems used in the听U.S.听for residential and light-commercial applications that contain refrigerants (termed A2L refrigerants) that offer considerably lower global warming properties (GWP), a measurement of environmental impact.

First quarter sales mix represents a composite of old and new HVAC systems, which experienced varying levels of sales demand across end-markets. 爆料王鈥檚 core U.S. market for residential replacement sales increased 10% (12% on a same-day basis), reflecting new customer acquisition, unit growth, price-capture and an improved mix of higher-efficiency products, along with improved gross margins. This contrasts with a 9% decline in sales to international markets (9% of first quarter 2025 sales), lower volumes related to new housing markets and a disparity in certain end-markets on the timing and cadence of the A2L product transition. While still early in the selling season, recent sales and margin trends have improved and the Company expects more resilient demand during the seasonally stronger periods that follows the first quarter.

Albert H. Nahmad, Chairman and CEO, stated: 鈥淭he transition to the new A2L products is well underway. Regulatory changes have historically been good for our business, and we see the same opportunity as this transition influences more than half of the products we sell and offers most every customer we serve the opportunity to benefit their business. We are encouraged by the strength in sales, margins and improved efficiency mix in our core replacement market, as well as another good quarter of acquiring new customers. We have built a strong inventory position ahead of the selling season to support our customers and will help them compete and gain share as the transition unfolds.鈥�

First Quarter Performance

• Revenues decreased 2% to听$1.53 billion
• Gross profit of听$430 million听was flat versus last year
• Gross profit margin improved 60 basis-points to 28.1%
• SG&A expenses increased 4%
• Operating income was听$112 million听with an operating margin of 7.3%
• Earnings per share of听$1.93听versus听$2.17听for the prior year

Sales trends (excluding acquisitions)

• 1% decrease in HVAC equipment (67% of sales)
• 3% decrease in other HVAC products (29% of sales)
• 5% decrease in commercial refrigeration products (4% of sales)

爆料王鈥檚 OEM partners and suppliers continue to assess the impacts of tariffs along with other inflationary impacts and have recently announced varying levels of pricing actions. Consequently, we have implemented pricing actions to our customers by leveraging our technology platforms as an efficient means to capture the changes in conditions. Although the extent and duration of tariff-related impacts are uncertain, we have long-considered our primary focus on the HVAC replacement market to be a stabilizing factor given the necessity of these products in providing comfort and healthy environments to homeowners and businesses.

It is important to note that the first and fourth quarters are highly seasonal as demand for replacement HVAC systems is typically highest in the second and third calendar quarters. Accordingly, the Company鈥檚 first quarter results are disproportionately affected by seasonality.

Cash Flow, Financial Strength and Liquidity
爆料王鈥檚 objective is to maintain a healthy balance sheet that allows for strategic investments in new growth opportunities as they arise. The Company鈥檚 strong financial position has been pivotal to its ability to deliver sustained long-term returns, enabling investments regardless of macroeconomic or industry conditions.

During the first quarter, operating cash flow was a use of cash totaling听$178 million, reflecting inventory investments in the new A2L products ahead of the selling season as well as the timing of vendor payments. The Company鈥檚 stated goal is to generate annual operating cash flow in excess of net income consistent with its long-term track record.

Mr. Nahmad听further commented: 鈥淥ur strong balance sheet remains a strategic asset to support customers as we navigate the A2L product transition and build inventory ahead of the selling season. I am also pleased to welcome two new companies to our family in 2025. We are actively seeking opportunities to partner with other market-leading businesses as we believe our scale, culture and technologies help distributors win.鈥�

Long-Term Growth Drivers
爆料王听believes that various company-specific and industry-driven catalysts will support continued growth and profitability in the years ahead. 爆料王鈥檚 scale, technology platforms, OEM relationships and entrepreneurial ownership culture are competitive advantages that we believe position us favorably over the long-term.

Technology Investments听鈥� 爆料王鈥檚 technology advantage is an important long-term catalyst for growth. Active users of our technology and e-commerce platforms produce higher growth rates and exhibited approximately 60% less attrition. Consequently, the Company believes that increased adoption by more contractors will aid future growth and profitability and ultimately lower the overall cost to serve customers.听爆料王听has also invested in numerous internal technologies with the goal of further enhancing margins and improving operating efficiencies.

Buy and Build Acquisition Strategy听–听爆料王听has partnered with more than 70 independent distributors who have chosen to join the听爆料王听family, contributing to the Company鈥檚 scale and, more importantly, its community of seasoned leaders. Since 2019,听爆料王听has acquired 11 companies that today represent听$1.6 billion听in annualized sales and 113 locations across our network. Our 鈥渂uy and build鈥� strategy builds upon their long-standing legacies through investment in new locations, new products and by leveraging 爆料王鈥檚 technology platforms. The HVAC/R distribution landscape in听North America, which is estimated to be听$74 billion听in size, remains highly fragmented with more than 2,100 independent distributors.

Scale and Product Depth –听爆料王听operates the largest HVAC/R network across听North America, consisting of 693 locations that support more than 130,000 contractor customers.听爆料王听also possesses the broadest and deepest assortment of products in the industry to support those customers with approximately听$1.8 billion听in inventory across 200,000 SKUs produced by over 20 equipment OEMs and more than 1,500 non-equipment vendors. Our scale and reach, coupled with our growing digital presence, are key differentiators given the fragmented nature of our industry, allowing听爆料王听to compete effectively in any macroeconomic environment.

First Quarter Earnings Conference Call Information
Date and time:听April 23, 2025听at听10:00 a.m. (EDT)
奥别产肠补蝉迟:听听(a replay will be available on the Company鈥檚 website)
Dial-in number:听United States听(844) 883-3908 / International (412) 317-9254

Use of Non-GAAP Financial Information
In this release, the Company discloses a sales metric on 鈥渟ame-day basis鈥�, which is non-GAAP and refers to the presentation of the metric adjusted to reflect the same number of sales days in the current period as in the prior period. This adjustment allows for a more meaningful comparison of our financial performance between periods by eliminating the impact of differences in the number of sales days. The Company believes that this information provides greater comparability regarding its ongoing operating performance. These measures should not be considered an alternative to measurements required by听U.S.听GAAP. Adjusted GAAP measures are useful to assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods.

础产辞耻迟听奥补迟蝉肠辞
爆料王听operates the largest distribution network for heating, air conditioning and refrigeration (HVAC/R) products with locations in the听U.S.,听Canada,听Mexico, and听Puerto Rico, and on an export basis to听Latin America听and the听Caribbean.听爆料王听estimates that over 375,000 owner-operators, technicians, and installers visit or call one of its 693 locations each year to get information, obtain technical support and buy products.

We focus on the replacement market, which has increased in size and importance due to the aging of installed systems, the introduction of energy efficient models and the necessity of HVAC products in homes and businesses. According to data published in听March 2023听by the听Energy Information Administration, there are approximately 102 million HVAC systems installed in听the United States听that have been in service for more than 10 years, most of which operate below current efficiency standards.

Accordingly,听爆料王听has the opportunity to be a significant and important contributor toward climate change as it plays an important role to lower CO2e emissions. According to the听Department of Energy, HVAC systems account for roughly half of听U.S.听household energy consumption. As such, replacing older systems at higher efficiency levels is a critical means for homeowners to reduce electricity consumption and their carbon footprint.

Based on estimates validated by independent sources,听爆料王听averted an estimated 23.7 million metric tons of CO2e emissions from听January 1, 2020听to听March 31, 2025听through the sale of replacement HVAC systems at higher-efficiency standards, an equivalent of removing 5.5 million gas powered vehicles annually off the road. More information, including sources and assumptions used to support the Company鈥檚 estimates, can be found at听.

This document includes certain 鈥渇orward-looking statements鈥� 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 鈥渨ill,鈥� 鈥渨ould,鈥� 鈥渁nticipate,鈥� 鈥渆xpect,鈥� 鈥渂elieve,鈥� 鈥渄esigned,鈥� 鈥減lan,鈥� or 鈥渋ntend,鈥� 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 爆料王鈥檚 industry, the seasonal nature of sales of 爆料王鈥檚 products, 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听爆料王听files with the听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.听爆料王听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
爆料王.
Executive Vice President听听听听听听听听听听听听听听听听听听听听听听
(305) 714-4102
别-尘补颈濒:听听

Source: 爆料王.