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WATSCO THIRD QUARTER NET INCOME UP 23 PERCENT TO RECORD LEVEL

 MIAMI, Oct. 18 /PRNewswire/ -- Watsco Inc. (AMEX: WSOA, WSOB) announced today that third quarter revenues and net income reached record levels.
 For the quarter ended Sept. 30, 1993, Watsco reported revenues of $72.5 million, up 19 percent from the comparable 1992 quarter, and net income of $1.8 million, up 23 percent. Fully diluted earnings per share were $.42 ($.44 primary), compared with $.47 ($.55 primary) in the comparable 1992 quarter, reflecting a 31 percent increase in the fully diluted number of shares outstanding (53 percent primary) resulting from a public offering earlier this year.
 For the nine months ended Sept. 30, 1993, revenues increased 17 percent to $170.7 million and net income from operations, which excludes the effect of insurance proceeds related to Hurricane Andrew, increased 51 percent to $3.7 million. Fully diluted earnings per share from operations for the nine months were up 11 percent to $.91 ($.95 primary), reflecting an increase in the fully diluted number of shares outstanding of 29 percent (45 percent primary).
 The increase in third quarter net income is attributable to continued strength of the air conditioner market in Florida and to the May 1993 acquisition of an air conditioner distributor in Texas, where the new homebuilding market has improved.
 The company's air conditioner distribution operations in California experienced decreased sales and earnings as a result of the continuing depressed new homebuilding market there.
 Adding to the decline in earnings in California was the effect of the Central California distributor recently acquired as part of Watsco's strategy to take advantage of the soft economic conditions to acquire distributors in key Sunbelt market areas. Watsco expects this acquisition to be dilutive into 1994 as it is integrated into the existing California operations.
 The company's manufacturing operations benefited in last year's third quarter from a surge in sales for a new line of CFC (chlorofluorocarbon) recovery equipment. Sales in the 1993 third quarter fell off from those peak levels due to a lack of federal enforcement of ozone protection legislation requiring air conditioner field service personnel to use such equipment. Sales of Watsco's other parts and components continued to show good growth during the quarter.
 "We are encouraged by the firming of new homebuilding in Florida and Texas, the two largest markets for residential central air conditioning in the country," said Albert H. Nahmad, Watsco chairman and chief executive officer. "Assuming that these trends continue and that the California market stabilizes, we would expect 10 percent growth in earnings per share this year and 20 percent next year. We would expect even faster growth if homebuilding in our key markets shows strong recovery and if the government were finally to enforce environmental legislation requiring CFC recovery and recycling."
 Watsco Inc., an emerging growth company, is the nation's largest independent distributor of residential central air conditioners and a leading manufacturer of products for climate control, environmental protection and energy conservation. Revenues have grown from $15 million in 1987 to a current annual rate of approximately $250 million.
 WATSCO INC.
 Results of Operations
 Three months ended
 Sept. 30, Percent
 1993 1992 change
 Revenues ($000) $72,474 $60,867 +19
 Net income ($000) 1,830 1,482 +23
 Primary earnings
 per share .44 .55 -20
 Fully diluted earnings
 per share .42 .47 -11
 Shares used for
 earnings per share
 Primary 4,156 2,709 +53
 Fully diluted 4,356 3,329 +31
 Nine months ended
 Sept. 30, Percent
 1993 1992 change
 Revenues ($000) $170,672 $146,315 +17
 Net income ($000)
 Operations 3,683 2,438 +51
 Insurance proceeds 706 ---
 Total net income 4,389 2,438 +80
 Primary earnings
 per share
 Operations .95 .92 +3
 Insurance proceeds .18 -- --
 Total net income 1.13 .92 +23
 Fully diluted earnings
 per share
 Operations .91 .82 +11
 Insurance proceeds .17 ---
 Total net income 1.08 .82 +32
 Shares used for
 earnings per share
 Primary 3,852 2,648 +45
 Fully diluted 4,218 3,277 +29
 -0- 10/18/93
 /CONTACT: Ronald P. Newman of Watsco, 305-858-1204; or William J. Jenks of Broadgate Consultants, 212-229-2222/
 (WSOA WSOB)


CO: Watsco Inc. ST: Florida IN: HOU SU: ERN

JL -- NYON2 -- 3222 10/18/93 09:18 EDT
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Publication:PR Newswire
Date:Oct 18, 1993
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