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WATSCO'S FIRST QUARTER NET UP 250 PERCENT CONVERTIBLE SUBORDINATED DEBENTURES TO BE REDEEMED

 MIAMI, April 19 /PRNewswire/ -- Watsco, Inc. (AMEX: WSOA, WSOB), the nation's largest distributor of residential central air conditioners and a leading manufacturer of climate control parts and components, today announced that for the first quarter ended March 31, 1993, net income grew 250 percent to $343,000, earnings per share increased 150 percent to $.10, and revenues increased 8 percent to $38.7 million.
 Climate control distribution revenues, which accounted for 71 percent of total company revenues, increased 6 percent. Gross margins in the distribution operations improved from the depressed levels of the first quarter of 1992, contributing substantially to the company's overall improvement in profitability.
 Market conditions were mixed in the company's distribution operations. In Florida, revenues were up 20 percent, largely reflecting a surge in repair, replacement, and new homebuilding in south Florida related to the rebuilding program in the wake of last year's Hurricane Andrew. In the company's California-based western distribution operations, revenues were down 8 percent from last year's first quarter. Extensive rains in southern California have delayed replacement sales while new homebuilding continued to show little activity.
 Commenting on the distribution operations' results, Albert H. Nahmad, chairman and president, said, "The upcoming second and third quarters represent our peak selling season for climate control equipment. We expect the air conditioning replacement cycle that has contributed to our growth throughout the recession to continue. We are also encouraged by some signs that new homebuilding in Florida may be gradually strengthening."
 Revenues in Watsco's manufacturing operations increased by 8 percent, reflecting continued expansion of the company's penetration of the market for original equipment manufacturers (OEMs).
 Commenting on the manufacturing operations, Mr. Nahmad said, "We expect sales of our new environmental control product, The Flash, to benefit this year from the anticipated enforcement, by the Environmental Protection Agency, of ozone protection regulations that became effective last year." The Flash allows field service technicians to collect and recycle chloroflourocarbon (CFC) based refrigerants that otherwise would be released into the atmosphere. Few of the nation's 300,000 field service technicians have yet purchased the equipment necessary to comply with the new federal law.
 The number of shares used to calculate earnings per share increased to 3.447 million (3.963 million fully diluted) in the first quarter of 1993 compared to 2.662 million (3.247 million fully diluted) in the first quarter of 1992 as a result of a public offering of new shares completed during the first quarter of 1993.
 Conversion of Debentures
 The company also announced its intention to redeem $2.4 million of Class A 10 percent convertible subordinated debentures due 1996 at par plus accrued interest.
 Holders of the convertible subordinated debentures will have the option of receiving cash at par value or converting to Class A common stock at a conversion price of $8.73 per share (per $1000 principal amount, holders would receive 114 shares of Class A common stock, cash of $4.78 in lieu of fractional shares and accrued interest through the redemption date). The total subordinated debentures being redeemed are convertible into 275,430 shares of Class A common stock, as already reflected in the company's fully diluted share numbers.
 The company expects the redemption to be completed in May 1993. The redemption will reduce Watsco's annual interest expense by $240,000 per year, will lower the company's capitalization ratio from 27.5 percent to 23.1 percent, and will contribute to a larger float and increased liquidity in the company's publicly traded common shares.
 Watsco is the largest distributor of residential central air conditioners in the United States, and a leading manufacturer of parts and components for cooling, refrigerating and heating systems that are sold worldwide. The company also manufactures new climate control related technologies that contribute to greater energy conservation and environmental protection.
 WATSCO, INC.
 First Quarter 1993
 Three Months Ended March 31 1993 1992
 Revenues $38,652,000 $35,626,000
 Net income 343,000 98,000
 Primary earnings per share .10 .04
 Fully diluted earnings per share .10 .04
 Shares used for earnings per share:
 Primary 3,447,657 2,662,405
 Fully diluted 3,963,256 3,247,168
 -0- 4/19/93
 /CONTACT: Ronald P. Newman of Watsco, 305-858-1204, or William J. Jenks of Broadgate Consultants, 212-229-2222, for Watsco/
 (WSO)


CO: Watsco, Inc. ST: Florida IN: CST SU: ERN 765 04-18-93 23:00 EDT TS-SB -- NYON1 -- 7157 04/19/93 08:21 EDT
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Publication:PR Newswire
Date:Apr 19, 1993
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