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SHAREHOLDERS' EQUITY
 6 Months Ended
Jun. 30, 2024
SHAREHOLDERS' EQUITY
8.
SHAREHOLDERS’ EQUITY
Dividend Reinvestment Plan
On March 29, 2024, we implemented the Watsco, Inc. Dividend Reinvestment Plan (the “Plan”), under which existing shareholders may, in accordance with the Plan, acquire shares of the Company’s Common stock or Class B common stock, as applicable (collectively “common stock”), by reinvesting all or a portion of the cash dividends paid on such shareholders’ shares of common stock. The Plan has been registered under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to our automatically effective shelf registration statement on Form
S-3
(File
No. 333-260758).
During the quarter and six months ended June 30, 2024, we issued four shares of Common stock under the Plan.
At-the-Market
Offering Program
On August 6, 2021, we executed
a sales agreement with Robert W. Baird & Co. Inc. (“Baird”), which enable
d
 the Company to issue and sell shares of Common stock in one or more negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act
of 1933, as amended (the “Securities Act”),
for
a maximum aggregate offering amount of up to $300,000 (the “
2021
ATM Program”).
During the quarter ended March 31, 2024, we issued and sold 712,000 shares of Common stock under the 2021 ATM Program for net proceeds of $281,784. Direct costs of $33 incurred in connection with the offering were charged against the proceeds from the sale of Common stock and reflected as a reduction of
paid-in
capital. Cumulatively, $298,455 of Common stock was sold under the 2021 ATM Program.
 
On May 3, 2024, we executed an amended and restated sales agreement with Baird (the “2024 ATM Program”), which enables the further issuance of up to $400,000 of Common stock. At June 30, 2024, $400,000 was available for sale under the 2024 ATM Program. The offer and sale of shares under the 2024 ATM Program were registered under the Securities Act pursuant to our automatically effective shelf registration statement on Form
S-3
(File
No. 333-260758).
Common Stock Dividends
We paid cash dividends of $2.70, $2.45, $5.15, and $4.90 per share on both Common and Class B common stock during the quarters and six months ended June 30, 2024 and 2023, respectively.
Restricted Stock
During the quarter and six months ended June 30, 2024, a total of 1,706 shares of Class B common stock with an aggregate fair market value of $759, and a total of 2,705 shares of Class B common stock with an aggregate fair market value of $1,150, respectively, were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of restricted stock. These shares were retired upon delivery. During the six months ended June 30, 2023, a total of 6,047 shares of Common and Class B common stock with an aggregate fair market value of $1,664 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of restricted stock. These shares were retired upon delivery.
Exercise of Stock Options
Cash received from Common stock issued
upon the exercise
of stock options during the quarters and six months ended June 30, 2024 and 2023, was $5,912, $4,526, $15,952, and $12,694, respectively.
During the quarter and six months ended June 30, 2024, 3,573 shares of Common stock with an aggregate fair market value of $1,685, and 3,999 shares of Common stock with an aggregate fair market value of $1,860, respectively, were withheld as payment in lieu of cash for stock option exercises and related tax withholdings. These shares were retired upon delivery. During the quarter and six months ended June 30, 2023, 1,737 shares of Common stock with an aggregate fair market value of $595, and 17,392 shares of Common stock with an aggregate fair market value of $5,383, respectively, were withheld as payment in lieu of cash for stock option exercises. These shares were retired upon delivery.
Employee Stock Purchase Plan
During the quarters ended June 30, 2024 and 2023, we received proceeds of $568 and $554, respectively, for shares of our Common stock purchased under our employee stock purchase plan. During the six months ended June 30, 2024 and 2023, we received proceeds of $1,151 and $1,133, respectively, for shares of our Common stock purchased under our employee stock purchase plan.