What changed in this filing

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Item 1A. Risk Factors

2020-08-06 compared with 2020-05-07 · 38 added, 4 removed, 7 unchanged (86% of the section changed)

Information about risk factors for the quarter ended March 31, 2019 does not differ materially from that set forth in Part I, Item 1A of our Annual Report on Form 10-K

for the year ended December 31, 2019, except for the addition of the following risk factor.

Information about risk factors for the quarter ended June 30, 2020 does not differ materially from that set forth in Part I, Item 1A, of our Annual Report on Form 10-K

for the year ended December 31, 2019 except as set forth below.

A novel strain of coronavirus, COVID-19,

1 unchanged sentence

In March 2020, the World Health Organization declared COVID-19

pandemic began to impact our operations late in the first quarter of 2020 and is likely to continue to adversely affect our business and results of operations, including as a result of government authorities imposing mandatory closures, work-from-home orders and social distancing protocols, or imposing other restrictions.

pandemic began to impact our operations late in the first quarter of 2020 and is likely to continue to adversely affect our business and results of operations, including as government authorities impose or reimpose mandatory closures, work-from-home orders and social distancing protocols, or impose other restrictions.

These actions could materially adversely affect our ability to adequately staff and maintain our operations, impair our ability to sustain sufficient financial liquidity and adversely impact our financial results.

While our locations continue to operate, we have restricted public access to our branches and a few of our locations experienced short-term closures for COVID-19

employee health concerns or are operating at a diminished capacity, negatively impacting sales at the end of the first quarter of 2020 and through the date of this filing.

employee health concerns or are operating at a diminished capacity, negatively impacting sales for the second quarter of 2020.

related factors that have impacted, or may negatively impact, sales, gross margin and other results of operations in the future include, but are not limited to:

limitations on the ability of our suppliers to manufacture, or procure from manufacturers, the products we sell, or to meet delivery requirements and commitments;

limitations on the ability of our employees to perform their work due to illness or other disruptions caused by the pandemic, including local, state, or federal orders requiring employees to remain at home;

limitations on the ability of carriers to deliver our products to customers;

limitations on the ability of our customers to conduct their businesses and purchase our products;

and limitations on the ability of our customers to pay us on a timely basis.

Moreover, the COVID-19

pandemic could alter the mix of our business due to a shift in consumer demand towards repair of equipment rather than replacement, as well as changes in our sales mix toward value-oriented equipment and lower demand and/or disruption to new construction and commercial markets, which would result in a reduction in our sales and consequential gross margin.

As we cannot predict the duration or scope of the COVID-19

pandemic, the anticipated negative financial impact to our results of operations cannot be reasonably estimated but could be material and last for an extended period of time.

Revolving Credit Increase and Joinder Agreement, dated as of April 10, 2020, by and among Watsco, Inc., Watsco Canada, Inc.

and Carrier Enterprise Mexico, S.

de C.V., as Borrowers, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Regions Bank, and PNC Bank N.A.

as a joining Lender, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on April 16, 2020 and incorporated herein by reference.

Certification of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a- 15(e) and 15d-15(e) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Certification of Executive Vice President pursuant to Securities Exchange Act Rules 13a-15(e) and 15d-15(e) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Certification of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a- 15(e) and 15d-15(e) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Certification of Chief Executive Officer, Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C.

Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.

XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document.

Inline XBRL Taxonomy Extension Schema Document.

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

Inline XBRL Taxonomy Extension Definition Linkbase Document.

Inline XBRL Taxonomy Extension Label Linkbase Document.

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

The cover page from the Company’s Quarterly Report on Form 10-Q

for the quarter ended June 30, 2020, formatted in Inline XBRL.

filed herewith.

furnished herewith.

Pursuant to Item 601(a)(5) of Regulation S-K,

schedules and similar attachments to this exhibit have been omitted because they do not contain information material to an investment or voting decision and such information is not otherwise disclosed in such exhibit.

The Company will supplementally provide a copy of any omitted schedule or similar attachment to the U.S.

Securities and Exchange Commission or its staff upon request.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

August 6, 2020

Chief Financial Officer (on behalf of the Registrant and as Principal Financial Officer)

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1A. Risk Factors