WSO
#You know, it's been pretty steady with the commodities.
They are small.
They are not material to the whole business, but copper refrigerant had been pretty stable.
We are seeing some increases, obviously, in the parts and components side, which is good.
No, no, we don't.
We don't get into that.
Well, it's sort of like this, <UNK>.
We are not out of the investment mode.
We added another 25 people in the first quarter, and I think we're going to continue the investment frame for quite a while.
Now, when is some of that investment paying off.
I think that's what we are seeing is some of that, but it's not measurable.
It's just the whole idea that we are getting more efficient in our operations and more efficient in our ability to gain share and produce revenue.
That's really an ongoing thing.
We are not going to stop investing, and quite the contrary.
If anything, I will step it up.
No, it doesn't work that way.
We just keep ---+ and where we see we want to beef up our sales force, we do that, but that doesn't matter what time of the year.
And, of course, technology is an ever-increasing investment.
So, it's not related really to the time of the year; it's just where do we have need and then we take actions to take care of it.
We are still going to be adding people is what I'm saying in the rest of the year.
It's not ---+ we are not over it in the first quarter.
It's just something that we do on an ongoing basis.
That's correct.
No, I don't know about ---+
We didn't say that.
I think the consumer ---+ and again, we don't look at short-term swings.
It doesn't matter to us as it does perhaps to (multiple speakers)
We believe that the movement by the consumer to higher efficiency is a long-term, is a long-term trend.
Yes, yes.
Manufacturers are also keen on increasing their efficiency, so, as I said, I think this is a long-term trend.
There is no end to the technology development by the manufacturers of equipment to improving efficiency.
They are at it and so that trend, I think, is starting with manufacturing and going on through distribution because the consumer wants it.
I don't want to mislead anybody.
Let's use the word strong.
It's only a few days, but I like it.
Yes, I think the market will be bigger this year than it was last year.
I would agree with that.
I couldn't tell you that.
I couldn't tell the growth rate.
Well, because we have been doing this for a long time and we just ---+ this is our sense of what we are going to do.
No, we are not going to provide growth rate numbers.
But don't forget.
The premise is that we are getting better at what we do.
We are more efficient.
It has stuck.
Those increases made last year have stuck this year.
Wow, that's a heckuva question.
<UNK>, do you have a sense for that.
No, I really don't.
Like I say, it's not ---+ even on commercial, it's not a big quarter for us, so I really can't say there is any direction that I can point us in as far as strong versus weak sectors right now.
I would say it this way, that it's become a dependable part of the business over the last several quarters.
There was some choppiness a couple years ago, but it's become much more dependable and consistent, and as <UNK> said, it's early, but it certainly has become more dependable over time.
<UNK>, do you have a sense for that, or <UNK>.
We certainly stock commercial products to fulfill the demand cycle of replacement, just as we do in residential, so there is nothing peculiar or different about commercial versus residential at all.
It is a replacement market that we are working in, <UNK>, so, yes, we do keep inventory out there.
It's just packaged equipment.
It's rooftops and packaged equipment.
<UNK>, there is really not a material backlog.
When we talk about the replacement market, our backlog might be a half an hour after a phone call is made.
So, it's a very short-term, quick emergency replacement business.
Backlog is not really a measurable thing in our business.
And that's how we compete, because of our balance-sheet strength.
We perhaps can carry more inventory to meet replacement demand than our competitors can.
That's fundamental to our strength.
<UNK>.
Yes, the price already moved in the fourth quarter.
Do we expect it to stay high.
Quite frankly, Dave, it's a very, very small piece of our business.
R-22 refrigerant sales, it is almost untrackable.
It's not a material.
Any what.
I couldn't hear the question.
Of course, if it opens up, we are right next to it.
There are 11 million people living there and they probably need a lot of air conditioning.
Don't forget our current market is North America and the export market and our locations in Mexico, so it's a much larger market than we are presently service and 11 million people against, I don't know, 500 million, 600 million is not ---+ of our existing market is not a big number, but the need may be greater there because they are so underdeveloped.
Then we have to see whether they can afford to pay for things, so if it develops, we will be ---+ we're their neighbor, so ---+ and if we're allowed to do business there, we certainly are not going to ignore it.
We are interested in M&A, but the situation for us is that at our size, it's very difficult to see an M&A activity at this moment that would move the needle much for us.
But if it comes along, we certainly want to have and do have the balance sheet to do almost any size, but there is nothing of size that is imminent that I am aware of or I have a sense for, not for lack of looking and not for lack of trying.
But we bought 67 companies more or less and many of them were smaller businesses.
That's not the sort of thing we probably would do today, acquire smaller business.
What I hope we can do is when we do M&A to have something of some size.
I wish you would get after them, <UNK>.
We would love for them to ---+ get after them.
Tell them that they should turn over their distribution to us.
Trust me, I would love to do that.
We would love to buy manufacturers' distribution assets in the Americas.
Well, you don't want to know.
Well, actually in the Northeast, it's also very good, so it's beautiful.
Come visit.
Yes.
86, sunny, and humid.
We love it.
Thanks for your interest in our Company and we look forward to talking again at the conclusion of the second quarter.
Bye-bye.
