WSO
#Let's give it to <UNK> <UNK>, since you've heard from <UNK> and I.
Yes, I think the trend is going to continue long term.
We definitely have seen not only seen the pricing of 22 to go up, but also the availability of 22 going down.
So, with this vast population of R22 in our installed base, obviously I think it's going all have to be replaced with 410.
I feel very, very bullish about the replacement market ---+ at least for the next four to five years.
Well, it always has.
We leverage our sales into a higher growth rate of either, and I don't see why that should not continue, and then of course the offset to that can be the incremental technology spending.
As I said earlier, and as I said in prior conference calls, everything we think about is long term.
So, we're going to take this technology thing and change ---+ change what we do, help our contractors be much more efficient and more loyal to everything that we're doing and that's just the goal.
It's a long-term goal.
So that's the variable ---+ how much are we going to spend for that.
Eventually, these things that we spend produce ---+ produce something.
Right now, we're seeing the benefits in cash flow.
We're seeing the benefits to our contracts as they are getting and picking up their products much quicker.
They're ordering anytime they want now, seven days a week, 24/7 on e-commerce.
There are all kind of things that are in the initial adoption, so that's the only caveat.
I just think that we have got to continue to look long term on investment spend and just follow the opportunity.
Yes, I think that is going to continue.
That was in the quarter, yes.
Just when you make the comparison from prior year.
I'd consider it to be very strong that it's up double digits ---+ the 410 is, all by itself, year over year.
Go ahead, <UNK>.
I haven't spent any time even trying to reconcile.
I don't know what their database is, what their geographic locations are.
You know, it's wonderful that they've grown, but Watsco is a national company.
We have our consistent financials that we have to report year after year.
So, it just isn't something that we follow.
I don't know what the sales mix is of those people.
Again, the answer is yes, <UNK>, for the quarter, for the fourth quarter, there's very little benefit to, so most of what you've seen year to date is what it will be.
No, it wasn't.
There is a couple of drop-in replacements for R22 that are available from the three big refrigerant manufacturers, so you can get it.
It has a slight degradation as far as the capacity and the efficiency of the equipment, but it is available.
(multiple speakers)
A year ago, we had a short period to sell R22 product before manufacturers wouldn't make it anymore, and we did have a real nice bump from refrigerant-free equipment last year, and that's the comparison this year, that's what <UNK> is saying.
We grew double digits in equipment sales this year, but when you compare it to the prior year that had refrigerant-free equipment, that we could sell before the deadline, we didn't have that repeating this year.
But fundamentally, if your equipment sales are growing at double digits, that's a very healthy thing, we believe.
Great.
<UNK>.
Most of it was volume.
We had some price pickup, obviously, as we switched over to the 14 SEER, but we also had a lift in unit sales.
Morning.
I think <UNK> really likes that.
(inaudible)
Why don't we have <UNK> answer that.
The answer is yes, of course, we have visibility into exactly where dollars are being allocated.
And the growth in spending over the last several years has been on new platforms, new technology to enhance the customer experience and help make our operations more efficient and more profitable, and hope to create some new profit streams through these Watsco Ventures programs, which are going to have a little more speculative at this point.
But yes, we have visibility to that, of course.
It is not just the new programs, but the spending at the branches and in the ERPs are now of course influenced by the new programs and technology, so, they should be looked at as a whole because development is part of ongoing programs.
Good morning, <UNK>ua.
<UNK> or <UNK>.
I have no idea what Carrier reported.
There is a global sales anyhow I presume.
Yes.
We're just talking domestic.
Okay, I guess we'll follow up with you on a call later.
Morning, <UNK>.
Yes, that's a good question.
Yes.
We noticed, it doesn't happen very often, that late season it didn't occur in the second quarter.
So, we were very conservative and said so at the last conference call that we were not going to provide outlook until we got a better fix on it.
We didn't know whether it was a late season or something different than that, and as it turned out, it was only a late season because the (indiscernible) very strong beginning of the third quarter.
And now that we have a better feel for things, we're providing [to date].
We don't like to reach out there unless we have a good sense of it.
Yes, I would say, generally speaking, around the second quarter, yes.
Good question though.
You know somebody working in our company that's giving you our information.
(Laughter)
<UNK>.
Yes, that's the real fun part of the Watsco Ventures vehicle that we've created is that we get to dream, we get to explore, we get to learn about what others are doing, we get to try some things internally and of course, IoT, the Internet of Things, is very much on our minds.
I'll answer this question a little generically in that if and when, I think it really is a when, all of the HVAC systems in the country or the world are connected and there is visibility into the data and the health of the systems and the ability to measure and monitor and meter those systems, it can only be a good thing for us.
Because we are very well positioned to leverage that data and build business models on top of that data for all stakeholders.
So, yes, we love that idea.
Some of our OEM partners already have some of that measuring and monitoring technology in their highest-end equipment, and there is some fun stuff happening in the Watsco Ventures portfolio where we are also thinking of taking a deep dive into that.
Well, once again, thanks for your interest in our company, and we'll speak to you at the end of the year when we have our year-end numbers ready for you.
Bye.
