September 13, 2011

Mohawk Industries, Inc. 

 

 - 61 - 

MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES  

CONDENSED CONSOLIDATED BALANCE SHEETS  

(In thousands)  

(Unaudited)  

 

ASSETS  

July 2, 2011 

Dec. 31, 2010 

Current assets:  

 

 

Cash and cash equivalents  

$   285,422  

$   354,217  

Restricted cash  

—    

27,954  

Receivables, net  

797,893  

614,473  

Inventories  

1,102,769  

1,007,503  

Prepaid expenses  

103,518  

91,731  

Deferred income taxes  

135,338  

133,304  

Other current assets  

     22,297  

     19,431  

Total current assets  

2,447,237  

2,248,613  

Property, plant and equipment, at cost  

3,649,881  

3,518,392  

Less accumulated depreciation and amortization  

1,918,967  1,831,268 

 

Property, plant and equipment, net

1,730,914  

1,687,124  

Goodwill  

1,418,830  

1,369,394  

Tradenames  

481,351  

456,890  

Other intangible assets, net  

199,827  

220,237  

Deferred income taxes and other non-current assets  

110,841  

116,668  

TOTAL ASSETS 

$ 6,389,000  

$ 6,098,926  

LIABILITIES AND STOCKHOLDERS’ EQUITY  

 

 

Current liabilities:  

 

 

Current portion of long-term debt  

$   453,185  

$   350,588  

Accounts payable and accrued expenses  

771,297  698,326 

 

Total current liabilities  

1,224,482  

1,048,914  

Deferred income taxes  

366,610  

346,503  

Long-term debt, less current portion  

1,155,150  

1,302,994  

Other long-term liabilities  

     93,499  

     93,518  

TOTAL LIABILITIES  

2,839,741  

2,791,929  

Redeemable noncontrolling interest  

32,300  

35,441  

Stockholders’ equity:  

 

 

Preferred stock, $.01 par value  

—    

—    

Common stock, $.01 par value  

798  

797  

Additional paid-in capital  

1,242,963  

1,235,445  

Retained earnings  

2,265,188  

2,180,843  

Accumulated other comprehensive income, net  

   331,558  

   178,097  

 

3,840,507  

3,595,182  

Less treasury stock at cost  

  (323,548)  

  (323,626)  

TOTAL STOCKHOLDERS’ EQUITY  

3,516,959  

3,271,556  

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 

$ 6,389,000  

$ 6,098,926  

 

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September 13, 2011 

Volume XXXVII, Issue VII & VIII 

    - 62 - 

Watsco, Inc.

 

(NYSE: WSO) 

Dow Jones Indus:   11,105.85 

 

S&P 500:  

1,172.87 

 

Russell 2000:  

691.74 

Trigger: No 

Index Component:  S&P 400 

Type of Situation: Consumer Franchise, Business Value  

 

Price: $ 

 

57.25 

Shares Outstanding (MM): 

 

 30.7 

Fully Diluted (MM) (% 

Increase): 

 

 30.8 (0.3%) 

Average Daily Volume (MM):   

0.310 

Market Cap (B): 

$  1.79 

Enterprise Value (B): 

$  1.81 

Percentage Closely Held: 

  

Officers / Directors 

16% economic/ 58% voting 

52-Week High/Low: 

$   72.76/52.12 

5-Year High/Low: 

$  72.76/30.62 

Trailing Twelve Months 

 

 

Price/Earnings:  

21.9x 

Price/Stated Book Value: 

 

 2.3x 

Long-Term Debt (MM): 

$   65 

Upside to Estimate of  

Intrinsic Value: 

 

31% 

Dividend: $ 

 

2.28 

Payout  

 

87% 

Yield  

 

4.0% 

Revenues Per Share: 

 

 

2010: $ 

93.02 

2009: $ 

70.19 

2008: $ 

62.92 

2007: $ 

64.78 

Earnings Per Share: 

 

 

2010: $ 

2.49 

2009: $ 

1.40 

2008: $ 

2.09 

2007: $ 

2.34 

 

 

 

Fiscal Year Ends: 

Company 

Address: 

Telephone: 

Chairman/CEO: 

December 31 

2665 South Bayshore Drive 

Coconut Grove, FL 33133 

305-714-4100 

Albert H. Nahmad 

Clients of Boyar Asset Management, Inc. do not own shares of 

Watsco, Inc. common stock. 

Analysts employed by Boyar's Intrinsic Value Research LLC do not own 

shares of Watsco, Inc. common stock. 

 

 

 

Overview 

Watsco, Incorporated (“Watsco,” “WSO” or “the 

Company”) is a distributor of heating, ventilation, and air 

conditioning (HVAC) equipment and supplies for 

residential and light commercial buildings. Watsco is the 

largest independent distributor in the United States in 

an otherwise fragmented industry characterized by 

strong barriers to entry, rational competition and local 

monopolies, relatively steady pass-through margins, a 

growing install base offering strong long-term recurring 

revenue sources (75% of Watsco’s revenue), and 

positive long-term pricing and margin implications from 

the trend toward more energy efficient units. 

As the only independent U.S. distributor of 

national scale, Watsco looks ideally positioned to take 

advantage of these conditions. The Company has 

historically grown through a very cautious but steady 

acquisition strategy, integrating well-run family 

businesses when the situation presents itself while 

eschewing leveraged transactions. We believe 

Watsco’s three recently established joint ventures with 

United Technologies to take over most of the 

distribution centers of its leading HVAC equipment 

business (Carrier) exemplify the Company’s market 

leadership and strong operational skills. Watsco has 

already expanded operating margins by close to 400 

basis points two years into the first-established JV. 

Watsco also completed the transactions at bargain 

multiples of 0.2x-0.4x sales and as low as 4x forward 

earnings  

 

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