Watsco, Inc.

Good day and welcome to the Watsco First Quarter 2026 Earnings Conference Call. All participants will be in the listen-only mode. Should you need assistance, please signal your conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your touchtone phone. To withdraw your question, you may press star and then two. Please note that this event is being recorded. I would now like to turn the conference over to Mr. Albert Named. Thank you, and a word to you.

Welcome to our first quarter earnings call.

This is Al Namid, Chairman and CEO. With me is Ajay Namid, the President, Paul Johnson, Barry Logan, and Rick Gomez. Before we start our cautionary statement, this conference call has forward-looking statements as defined by SEC laws and regulations that are made pursuant to the safe harbor provisions of these various laws. Ultimate results, they differ materially from the forward-looking statements. First quarter results point to improving stability now that the transition to ATOL products has matured. We expect a more simplified business environment this year, but it is still early in our summer season, but so far so good. We're also excited to announce our agreement to acquire Jackson Supply. a legendary market-leading Sunbelt distributor with $230 million in annual sales. We are fortunate to know many great entrepreneurs in our industry. Jim Durrett, Jacksonville owner, and his talented group of leaders, all of whom will remain with the company, certainly meet the definition of great entrepreneur. Thank you. Our relationship with Jackson dates back more than 20 years, and we are grateful to Jim for entrusting us with this company's next chapter. Jackson will expand their sub-bill presence by 25 locations and provide diversification of brands and products, giving their strong presence in parts and supplies. As I mentioned, and is our culture, Jackson team will continue to operate and grow the company with our full support. In addition, our community of leaders, along with Jackson, will collaborate and learn from each other, as is also our culture.