Pool Corporation (POOL) reported first-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate. Both top and bottom lines declined from the prior-year quarter's actuals. Following the results, the company’s shares declined 6.7% during trading hours yesterday.Although discretionary project spending remained under pressure, overall sales picked up in March, recovering from the weather-related challenges seen in January and February.POOL’s Q1 Earnings & Revenue DiscussionIn the fi ...

Pool Corporation (NASDAQ:POOL) Q1 2025 Earnings Conference Call April 24, 2024 11:00 AM ET Company Participants Melanie Hart - Senior Vice President and CFO Peter Arvan - President and CEO Conference Call Participants Ryan Merkel - William Blair Quinn Fredrik - Baird Susan Maklari - Goldman Sachs David MacGregor - Longbow Research Stephen Volkmann - Jefferies Scott Schneeberger - Oppenheimer Andrew Carter - Stifel Sam Reid - Wells Fargo Garik Shmois - Loop Capital Collin Verron - Deutsche Bank Operator Good ...

Financial Performance - Net sales for Q1 2025 were $1.07 billion, a decrease of 4% compared to $1.12 billion in Q1 2024[19] - Gross profit decreased by 8% to $312.4 million, with a gross margin of 29.2%, down from 30.2% in the previous year[5] - Operating income fell 29% to $77.5 million, resulting in an operating margin of 7.2%, compared to 9.7% in Q1 2024[7] - Net income decreased to $53.5 million, down from $78.9 million in Q1 2024, leading to earnings per diluted share of $1.42, a 30% decline[10] - Adjusted EBITDA for the same period was $95,439, down 23.4% from $124,481 in 2024[34] - Adjusted diluted EPS decreased to $1.32 from $1.85, reflecting a decline of 28.6% year-over-year[39] Guidance and Future Outlook - The company confirmed its annual earnings guidance range of $11.10 to $11.60 per diluted share, including a tax benefit of $0.10[8] - The company aims to strengthen its market position through continued innovation and expansion of its customer-centric digital ecosystem, POOL360[13] Cash Flow and Inventory - Net cash provided by operations was $27.2 million, a significant decline from $145.4 million in Q1 2024, primarily due to deferred tax payments[12] - Net cash provided by operating activities fell significantly to $27,224, a decrease of 81.3% compared to $145,442 in the prior year[23] - Inventory balance was $1.5 billion, a reduction of $36.3 million, or 2%, from the previous year[11] Expenses and Capital Allocation - Selling and administrative expenses increased by 2% to $234.8 million, representing 21.9% of net sales, up from 20.5% in Q1 2024[6] - Payments on common stock repurchases rose to $56,316, compared to $16,304 in the same period last year, indicating a strategic shift in capital allocation[23] Sales and Operations - The company added two greenfield sales center locations during the quarter, enhancing its sales center network[3] - The company had a total of 449 sales centers as of March 31, 2025, an increase of 0.2% from 448 centers at the end of 2024[28] Cash and Financing Activities - Cash and cash equivalents at the end of the period were $71,644, an increase of 5.4% from $67,974 at the end of the previous year[23] - The company reported a net cash used in financing activities of $20,611, a significant improvement compared to $124,162 in the same quarter of 2024[23] - Proceeds from the revolving line of credit increased to $427,700, up 87.2% from $228,400 in the prior year[23] Foreign Currency Impact - The company experienced a foreign currency transaction loss of $44 for the three months ended March 31, 2025, compared to a gain of $161 in the same period of 2024[34]

Core Insights - Gate.io is launching the World Crypto Trading Competition Season 7 (WCTC S7) in April 2025, which is highly anticipated in the crypto community [1] - The competition features a dynamic prize pool of up to $5 million, with both team and individual competitions [3][5] - Gate.io has over 22 million registered users and ranks among the top in global spot and futures trading [1] Company Growth and Brand Building - Gate.io has shown impressive growth, ranking in the Top 2 for spot trading and Top 5 for futures trading globally [1] - The platform has made significant strides in brand building, including sponsorship of Oracle Red Bull Racing in F1, aligning its brand with speed and excellence [2] Competition Structure and Rewards - The team competition comprises 80% of the total prize pool, with up to $4 million available, and features a two-stage challenge [4][5] - The individual competition accounts for 20% of the prize pool, offering up to $1 million in rewards for the top 300 participants [5] - Airdrop events during the competition guarantee a 100% winning rate, providing various prizes including trading fee rebates and exclusive merchandise [6][7] Inclusivity and Engagement - The competition is designed to be inclusive, allowing participants to choose between team or individual contests [7] - The airdrop events ensure that all participants have the opportunity to win prizes, catering to both newcomers and seasoned traders [7]

Core Viewpoint - Pool Corporation will release its first quarter 2025 earnings results on April 24, 2025, before market opens, followed by a conference call to discuss the results [1] Group 1: Earnings Announcement - The earnings release will be available on the Company's website [1] - A live webcast and replay of the conference call will also be accessible on the website [1] - The conference call is scheduled for 10:00 a.m. Central Time (11:00 a.m. Eastern Time) on the same day [1] Group 2: Company Overview - Pool Corporation is the largest wholesale distributor of swimming pool and related backyard products globally [2] - The company operates approximately 445 sales centers across North America, Europe, and Australia [2] - Pool Corporation distributes over 200,000 products to around 125,000 wholesale customers [2]

Group 1 - Chipotle (NYSE: CMG) is experiencing significant dark pool buying activity, which may indicate investor interest despite a decline in stock price since early February [1] - The company is well-known for its burritos and bowls, suggesting a strong brand presence in the fast-casual dining sector [1] Group 2 - The author emphasizes a data-driven approach to investment, focusing on options trading and macroeconomic trends, which may provide insights into market movements related to Chipotle [1] - The article aims to share research and connect with investors interested in understanding market drivers, indicating a collaborative approach to investment analysis [1]

Core Insights - LiqTech International, Inc. has entered a distribution and partnership agreement with PoolCourt Engineering Ltd. to target the Irish commercial swimming pool market, covering the full PurePool™ product range with the first order expected in Q2 2025 [1][2] Company Overview - LiqTech is a clean technology company specializing in advanced ceramic silicon carbide filtration technologies for gas and liquid purification, offering unique solutions for challenging water purification applications [6] Strategic Goals - The partnership aligns with LiqTech's strategic goal to expand its market presence in Europe, leveraging its innovative filtration technology to accelerate revenue growth and strengthen recurring business opportunities [2][4] Product Advantages - LiqTech's PurePool™ filtration system provides significant benefits over traditional filtration systems, including an 80% reduction in water consumption, 60% lower energy costs, and 30% less chlorine usage, while requiring only one-third of the space of conventional systems [4][5] Partner Profile - PoolCourt Engineering Ltd. is a well-established company in the Irish leisure market, specializing in the design, supply, installation, and maintenance of various pool types, which enhances LiqTech's opportunity for expansion in Ireland [3][4]

Group 1 - The core viewpoint is that Pool Corporation (NASDAQ: POOL) is rated as a buy due to its position as the largest player in the industry, which allows it to capitalize on market opportunities despite short-term growth focus from the market [1] - The company is recognized for its long-term growth potential, with an emphasis on value investing strategies that prioritize price and margin of safety [1] - The analyst holds a beneficial long position in POOL shares, indicating confidence in the company's future performance [2] Group 2 - The article emphasizes a fundamental standpoint for investment, advocating for a "buy & hold" strategy over the long term [1] - The analyst's educational background includes an MBA from IESE Business School and a Master in Finance from Universidad del Pacifico, which supports the credibility of the analysis [1]

Company Overview - Pool Corporation is the world's largest wholesale distributor of swimming pool and related backyard products [2] - The company operates approximately 445 sales centers across North America, Europe, and Australia [2] - Pool Corporation distributes more than 200,000 products to roughly 125,000 wholesale customers [2] Upcoming Events - Melanie M. Hart, Senior Vice President and Chief Financial Officer, will participate in virtual investor meetings at the Loop Capital Markets 2025 Investor Conference on March 10, 2025 [1]

Customer Base and Sales Distribution - The company serves approximately 125,000 customers, primarily small, family-owned businesses, with no single customer accounting for 10% or more of sales in 2024 [31]. - In 2024, the company generated approximately 96% of its sales in North America, with Florida, California, Texas, and Arizona representing about 54% of net sales [33]. - Sales of maintenance and minor repair products accounted for approximately 64% of total sales in 2024, while partially discretionary products made up 22% and discretionary products accounted for 14% [40]. - The company offers over 200,000 products across more than 650 product lines, with pool and hot tub chemicals representing approximately 15% of total net sales in 2024 [35]. Strategic Growth and Market Focus - The company plans to continue strategic acquisitions and open new sales centers to penetrate existing markets and expand into new geographic areas and product categories [30]. - The company has increased its focus on the commercial swimming pool market, which is considered a key growth opportunity [39]. - The company has expanded its Pinch A Penny franchise operations since its acquisition in December 2021 and plans to continue these initiatives [43]. Supplier and Inventory Management - Major suppliers include Pentair plc, Zodiac Pool Systems, and Hayward Pool Products, accounting for approximately 20%, 12%, and 11% of the cost of products sold in 2024, respectively [50]. - The company operates 448 sales centers across North America, Europe, and Australia, with a focus on maintaining well-stocked inventories to meet customer needs [33][46]. Financial Performance and Seasonality - In 2024, approximately 60% of net sales and 73% of operating income were generated in the second and third quarters, aligning with peak swimming pool usage [65]. - The company’s business is seasonal, with sales and operating income typically highest during the second and third quarters [65]. Corporate Governance and Risk Management - The company’s governance structure includes oversight by the Board of Directors, which is responsible for risk management and ensuring long-term value for stockholders [64]. Employee Development and Compensation - The company maintains a performance-based compensation philosophy, offering cash compensation, retirement plans with company match, and equity grants for certain roles [63]. - The company’s employee training programs include managerial training and an entry-level program for Manager Trainees, focusing on practical industry knowledge and leadership skills [61]. Sustainability and Community Engagement - The company emphasizes sustainability by offering energy-efficient products and monitoring its sourcing activities to manage its carbon footprint [52]. - The company has provided water safety lessons for over 42,000 underserved children and trained around 3,000 lifeguards since 2021 through partnerships with YMCA [62]. Financial Management and Tax Considerations - The company’s unsecured syndicated senior credit facility and other borrowings bear interest at variable rates, with interest rate swaps in place to mitigate exposure to fluctuations [126]. - Changes in tax laws and accounting standards may cause fluctuations in the company's effective tax rate, which is influenced by the geographic mix of earnings [127]. - The company cannot assure the continuation of dividends at current rates, as decisions are at the discretion of the Board of Directors [128]. Acquisition Strategy - The company regularly evaluates potential acquisitions and may be engaged in discussions regarding these transactions, although announcements are typically made post-completion [75].