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Watsco EPS Jumps 93 % Setting First Quarter Records for Sales , Operating Profit , Operating Margins and Net Income April 22 , 2021 at 7:30 AM EDT Double - Digit Sales Growth , Higher Gross Margins and Operating Efficiencies Drive Record Performance Customer - Adoption of Technologies Grows as Business Evolution Continues MIAMI , April 22 , 2021 ( GLOBE NEWSWIRE ) -- Watsco , Inc. ( NYSE : WSO ) reported record first quarter operating results , establishing new records for sales , operating income , operating margins , net income and earnings per share ( EPS ) . Watsco's entrepreneurial culture continues to be critically important in response to the varying business conditions in the marketplace . The Company believes the pace of change and innovation is accelerating as adoption of its technology platforms gains further momentum . These platforms are designed to revolutionize the customer experience , providing contractors speed and efficiency as well as supporting their growth in unparalleled ways . In terms of results , new customer acquisition is increasing and attrition rates with existing customers are decreasing , providing meaningful contributions to sales and overall operating performance . The Company continues to make incremental investments to add more capabilities and functionality , to develop and launch new innovations and drive adoption by more customers . First Quarter Results Key Performance Metrics • 93 % increase in EPS to a record $ 1.39 • 81 % increase in operating income to a record $ 82 million • 270 basis - point operating margin expansion to a record 7.2 % • 19 % gross profit increase to a record $ 295 million • 130 basis - point gross margin increase to a record 25.9 % • 7 % increase in SG & A expenses and a 100 basis - point reduction in SG & A as a percentage of sales Sales trends : • 13 % sales growth to a record $ 1.14 billion • 14 % growth in HVAC equipment ( 67 % of sales ) , including 18 % growth in residential products 11 % increase in other HVAC products ( 29 % of sales ) • 10 % increase in commercial refrigeration products ( 4 % of sales ) Albert H. Nahmad , Watsco's Chairman & CEO stated : “ Watsco delivered another record quarter with solid earnings growth and margin expansion . These results are attributable to strong sales growth , a richer sales mix of high - efficiency systems , better selling margins and operating efficiencies . First quarter results also reflect continued investments in products , technology and people to drive sales and innovation throughout our business . As we head into the selling season , we are focused on the same proven fundamentals - growth in customer adoption of our industry - leading technologies , driving profitable sales and share gains for our supplier partners . Our first quarter results are a good start in what we expect to be a record year for our company . " Mr. Nahmad added : " Sales of residential HVAC systems with energy - efficiency ratings above the minimum energy - standard grew 20 % this quarter , a progression that began more than a decade ago . We believe that the products we sell play a key role in advancing energy efficiency , providing Watsco the opportunity to be an important contributor to address climate change . There are an estimated 110 million HVAC systems installed in the U.S. , many of which operate under old efficiency standards . Replacing the installed base to today's minimum standards can help reduce energy consumption , but even greater conservation and cost savings can be achieved with the higher - efficiency products that we offer . Higher-