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WATSCO, INC. REPORTS RECORD SECOND QUARTER RESULTS; EXPLOSIVE GROWTH IN NEW ENVIRONMENTAL CONTROL PRODUCTS

 WATSCO, INC. REPORTS RECORD SECOND QUARTER RESULTS;
 EXPLOSIVE GROWTH IN NEW ENVIRONMENTAL CONTROL PRODUCTS
 MIAMI, July 22 /PRNewswire/ -- Watsco, Inc. (AMEX: WSOA WSOB) announced today that second quarter 1992 revenues and net income reached record levels, largely driven by explosive growth in its environmental technologies business and components supplied to original equipment manufacturers (OEMs).
 Watsco's second quarter 1992 net income was $858,000, a 14 percent increase over net income of $751,000 in the second quarter of 1991. Earnings per share were 32 cents in the 1992 period, compared to 29 cents per share in the 1991 period (adjusted for a 5 percent stock dividend paid April 30, 1992). Revenues were $49.8 million, an 8 percent increase over revenues of $46.0 million in the second quarter of 1991.
 For the six-month period ended June 30 ,1992, Watsco's net income was up 21 percent and earnings per share were up 20 percent on a revenue increase of 7 percent.
 The company said that nearly all of the growth had occurred in its environmental technologies and climate control manufacturing operations, which account for about one-third of total operating earnings. Revenues in these operations increased more than 65 percent compared to last year's second quarter. Approximately half of this growth came from just one month's shipments of a new line of environmental products called The Flash(R). The Flash(R) permits refrigeration and air conditioning service and repair personnel to comply with ozone-protection regulations mandated by the Federal Clean Air Act of 1990 that became effective July 1, 1992. The Flash(R) collects harmful chlorinated fluorocarbons (CFCs) that would otherwise be released into the atmosphere.
 The other primary contributor to growth was in the manufacture of climate control parts and components for sale to original equipment manufacturers (OEM), a new segment given Watsco's traditional 40-year business of supplying primarily repair and replacement parts to field service personnel.
 In its air conditioner distribution businesses, which account for about two-thirds of operating earnings, Watsco was able to achieve revenues equivalent to last year's despite housing starts continuing to be at very depressed levels in its two primary markets, Florida and California. The company has been able to offset the housing decline by gaining market share and focusing on the replacement market. Both Florida and California have entered major replacement cycles for central air conditioning units that were installed in the housing boom of the 1970s.
 Albert H. Nahmad, Watsco president and chief executive officer, said: "Watsco has been successful at leveraging the strong brand name it has built over a forty-year period to move into two high-growth high- margin businesses -- environmental technologies and OEM parts and components. We have a series of additional new products in these areas, that we will be rolling out later this year and in 1993, which we expect to sustain our growth despite the sluggish economy. If, in addition, housing starts should rebound, we would expect to achieve even greater increases."
 Watsco, Inc., is a small-cap emerging growth company that manufactures products for climate control, environmental protection and energy conservation, and is the nation's largest independent distributor of residential central air conditioners. Revenues have grown from $15 million in 1987 to $170 million in 1991.
 WATSCO, INC.
 Results of Operations
 Three Months Ended June 30
 1992 1991
 Revenues ($000) 49,822 46,011
 Net Income ($000) 858 751
 Primary Earnings Per Share ($) .32 .29
 Fully Diluted Earnings Per Share ($) .29 .26
 Shares Used for Earnings Per Share
 Primary 2,677,561 2,623,769
 Fully Diluted 3,234,520 3,255,284
 Six Months Ended June 30
 1992 1991
 Revenues ($000) 85,448 79,711
 Net Income ($000) 956 787
 Primary Earnings Per Share ($) .36 .30
 Fully Diluted Earnings Per Share ($) .35 .30
 Shares Used for Earnings Per Share
 Primary 2,620,073 2,630,616
 Fully Diluted 3,182,781 3,258,330
 NOTE: Earnings per share and shares used for earnings per share in 1991 have been adjusted to reflect a 5 percent stock dividend paid April 30, 1992.
 -0- 7/22/92
 /CONTACT: Ronald P. Newman of Watsco Inc., 305-858-1204, or William J. Jenks, 212-229-2222, of Broadgate Consultants, for Watsco Inc./
 (WSOA WSOB) CO: Watsco Inc. ST: Florida IN: SU: ERN


TM -- NYW003 -- 1639 07/22/92 07:33 EDT
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Date:Jul 22, 1992
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