Core Viewpoint - Pool Corporation will participate in the Oppenheimer 20th Annual Industrial Growth Conference on May 5, 2025, with a focus on investor meetings and a fireside chat [1] 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]

Core Viewpoint - Pool Corp. is a leading player in a fragmented market, demonstrating significant long-term shareholder wealth creation, with a stock return exceeding 42,000% over its lifetime [2][3] Company Overview - Pool Corp. serves over 125,000 wholesale customers, primarily in the U.S., but also operates in Canada, Mexico, Europe, and Australia [3] - The company generates revenue from three main aspects of pool ownership: new construction and installation, upgrades and remodels, and supplies and maintenance [9] Revenue Streams - Recurring revenue from supplies and maintenance accounted for 65% of 2024 sales, an increase from 60% in 2014 [3] - New construction and installation contributed 15% of 2024 revenue, while upgrades and remodels made up 20% [9] Market Position - Pool Corp. has a competitive advantage as the leader in the fragmented pool industry, frequently acquiring smaller competitors to enhance market share [4] Financial Performance - The company generates increasing cash flow as it grows, with management allocating most cash flow to stock buybacks and dividends, enhancing earnings per share [5] - Despite a year-over-year decline in sales and profits in Q1 2025, management maintained its full-year earnings guidance, indicating confidence in the upcoming peak swimming pool season [7] Earnings Guidance - Management anticipates 2025 earnings between $11.10 and $11.60 per share, up from $11.07 in 2024, following a peak of $18.43 in 2022 [8] Valuation and Investment Potential - Pool Corp.'s current valuation appears attractive as the company returns to growth, with a proven track record of dividend increases over 14 consecutive years [10] - The stock yields 1.6%, the highest in over a decade, with a payout ratio below half of the 2025 earnings guidance, suggesting value rather than business risk [11]

Group 1: Coca-Cola (KO) - Coca-Cola offers a 2.8% dividend yield and is considered relatively safe in the current market environment, making it a strong investment choice [2][3] - The company is insulated from cross-border tariffs due to its local production and sales strategy, which minimizes exposure to tariff impacts [2][3] - Increased packaging costs from tariffs on aluminum are not significant for Coca-Cola, as aluminum constitutes a small part of its overall cost structure [3] Group 2: Louisiana-Pacific (LPX) - Louisiana-Pacific specializes in engineered wood siding and oriented strand board (OSB), with its pricing heavily influenced by wood fiber and resin costs [4] - The company could benefit from tariffs on Canadian wood fiber, as it has the capacity to increase production in both Canada and the U.S. [5][6] - Long-term prospects for engineered wood siding are positive, with potential market share gains against alternatives like vinyl and fiber cement [7] Group 3: Pool Corp. (POOL) - Pool Corp. is a resilient business, with 65% of its sales coming from maintenance and minor repairs, which supports sales even in a slowing discretionary spending environment [8] - The company does not have significant direct imports and does not anticipate material impacts from current tariffs on sales for 2025 [10] - Long-term growth prospects remain strong due to ongoing pool maintenance spending and a potential recovery in new pool construction [11]

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 ...

Financial Data and Key Metrics Changes - The company reported net sales of $1.1 billion for the first quarter, down 4% year-over-year, but down 2% on a same selling day basis, indicating an improving trend towards the end of the quarter [13][14] - Gross margins were reported at 29.2%, a decrease from 30.2% in the first quarter of 2024, but reflecting year-over-year improvement when adjusted for a prior year tax benefit [15][39] - Operating income was $77.5 million, with a diluted earnings per share of $1.42, down from $2.04 in the prior year [18][43] Business Line Data and Key Metrics Changes - Maintenance product sales performed well, with chemicals showing volume and revenue growth, including double-digit growth in private label chemical products [14][36] - New construction and remodel activities continued to be affected by tight discretionary spending, but the drag on top-line sales was less than in previous quarters [14][37] - Equipment sales, excluding cleaners, declined 4% during the quarter, while commercial business sales increased by 7% [26][25] Market Data and Key Metrics Changes - Sales increased by 2% in Arizona, remained flat in California, declined by 1% in Florida, and decreased by 11% in Texas, with challenging weather impacting sales in Texas and Florida [19][20] - In Europe, net sales declined 4% in local currency and 6% in US dollars, with positive trends noted in Spain and Portugal [20][21] - Horizon's net sales also declined by 4% due to deflation in commodity pricing, particularly in PVC [22] Company Strategy and Development Direction - The company aims to achieve above-market growth through strategic initiatives focused on customer experience, private label products, and expanding its footprint [6][31] - The company is expanding its wholesale distribution network and has opened two new locations, bringing the total to nearly 450 [28] - The Pinch A Penny franchise network is expanding, with new stores opening to capture the do-it-yourself market [29] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment continues to weigh on new pool construction, with high interest rates causing a wait-and-see pattern in demand for large discretionary purchases [7][52] - There is cautious optimism regarding improving trends in sales, particularly in Florida and California, as the season progresses [69][70] - The company confirmed its full-year EPS guidance range of $11.10 to $11.60, including an estimated benefit from ASU [30][60] Other Important Information - The company has a strong balance sheet, with total debt of $1 billion and a leverage ratio of 1.47, maintaining financial flexibility for strategic growth and shareholder returns [47][49] - Inventory balances increased by $171 million from year-end, reflecting proactive inventory management in anticipation of seasonal demand [46] Q&A Session Summary Question: Expectations for second quarter top line growth - Management expects low single-digit top line growth in the second quarter, consistent with full-year guidance [64][65] Question: Price expectations for the second quarter - Price increases are expected to be more pronounced in the second half of the year, with some impact in the second quarter [66][67] Question: New pool ASP and remodel expectations - The higher-end consumer market remains strong, with no significant trade-downs observed, although remodel projects are being spaced out over time [80][82] Question: Impact of macroeconomic conditions on margins - Management indicated that discretionary spending is the most vulnerable to macroeconomic downturns, but maintenance and repair segments remain strong [109][110] Question: Positioning for DIY versus do-it-for-me trends - There has not been a significant shift towards DIY, with both channels performing well [114][116] Question: Competitive pricing environment - Competitive pricing remains a challenge, but the company focuses on long-term value and customer experience rather than short-term price cuts [122][125]

Financial Data and Key Metrics Changes - The company reported net sales of $1.1 billion for the first quarter, a decrease of 4% year-over-year, but a decline of only 2% on a same selling day basis, indicating an improving trend towards the end of the quarter [13][14] - Gross margins were reported at 29.2%, down from 30.2% in the first quarter of 2024, but reflecting year-over-year improvement when adjusted for a prior year tax benefit [15][39] - Operating income decreased to $77.5 million, with diluted earnings per share at $1.42, down from $2.04 in the prior year [18][43] Business Line Data and Key Metrics Changes - Maintenance product sales performed well, with chemicals showing volume and revenue growth, including double-digit growth in private label chemical products [14][36] - New construction and remodel activities continued to be affected by tight discretionary spending, but the drag on top-line sales was less severe than in previous quarters [14][37] - Equipment sales, excluding cleaners, declined by 4% during the quarter, while commercial business sales increased by 7% [25][26] Market Data and Key Metrics Changes - Sales increased by 2% in Arizona, remained flat in California, declined by 1% in Florida, and decreased by 11% in Texas, with challenging weather impacting sales in Texas and Florida [19][20] - In Europe, net sales declined by 4% in local currency and 6% in US dollars, with positive trends noted in Spain and Portugal [20][21] - Horizon's net sales also declined by 4%, impacted by commodity pricing deflation, particularly in PVC [22] Company Strategy and Development Direction - The company aims to achieve above-market growth through strategic initiatives focused on customer experience, private label products, and expanding its footprint [6][31] - The company is expanding its wholesale distribution network, having opened two new locations in the first quarter, bringing the total to nearly 450 [28] - The Pinch A Penny franchise network is expanding, with new stores opening to capture the do-it-yourself market [29] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment continues to weigh on new pool construction, with high interest rates causing a wait-and-see pattern in demand for large discretionary purchases [7][52] - There is cautious optimism regarding improving trends in sales, particularly in Florida and California, with expectations for some growth in new pool construction in the second half of the year [69][70] - The company confirmed its full-year EPS guidance range of $11.10 to $11.60, including an estimated benefit from ASU [30][60] Other Important Information - The company has a strong balance sheet, with total debt reported at $1 billion and a leverage ratio of 1.47, at the lower end of its target [47] - Cash flow from operating activities was reported at $27 million, with significant cash outflows related to inventory purchases and deferred tax payments [48] - The company plans to continue share repurchases, having completed $56 million in repurchases during the quarter [49] Q&A Session Summary Question: Expectations for second quarter top line growth - Management expects low single-digit top line growth in the second quarter, consistent with full-year guidance [64][65] Question: Price expectations for the second quarter - Price increases are expected to be more pronounced in the second half of the year, with some impact in the second quarter [66][67] Question: New pool ASP and remodel expectations - The higher-end consumer market remains strong, with no significant trade-downs observed, although remodel projects are being spaced out over time [80][82][85] Question: Impact of macroeconomic conditions on margins - If macro conditions worsen, discretionary spending on new pool construction will be most affected, but maintenance and repair business remains strong [109][110] Question: Positioning of Pinch A Penny in a softening market - No significant shift to DIY from do-it-for-me has been observed, with both channels performing well [114][116] Question: Competitive pricing environment - Competitive pricing remains a challenge, but the company focuses on long-term value and customer experience rather than unsustainable pricing wars [122][125]

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]

Financial Performance - Pool Corp. reported quarterly earnings of $1.32 per share, missing the Zacks Consensus Estimate of $1.42 per share, and down from $1.85 per share a year ago, representing an earnings surprise of -7.04% [1] - The company posted revenues of $1.07 billion for the quarter, missing the Zacks Consensus Estimate by 2.03%, and down from $1.12 billion year-over-year [2] - Over the last four quarters, Pool Corp. has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Pool Corp. shares have lost about 9.3% since the beginning of the year, compared to the S&P 500's decline of -8.6% [3] - The current Zacks Rank for Pool Corp. is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $5.15 on revenues of $1.78 billion, and for the current fiscal year, it is $11.27 on revenues of $5.36 billion [7] - The estimate revisions trend for Pool Corp. is currently unfavorable, which may change following the recent earnings report [6] Industry Context - The Leisure and Recreation Products industry, to which Pool Corp. belongs, is currently in the bottom 27% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly impact stock performance [5][8]

Core Insights - Pool Corporation reported a net sales of over $1.0 billion in Q1 2025, reflecting the strength and resilience of its business despite a 4% decrease in net sales compared to Q1 2024 [3][4] - The company confirmed its full-year 2025 earnings guidance range of $11.10 to $11.60 per diluted share, which includes a tax benefit of $0.10 [11][14] Financial Performance - Net sales decreased by 4% in Q1 2025, with a same-selling day basis decline of 2%, consistent with the previous quarter's performance [4] - Gross profit fell by 8% year-over-year, with gross margin decreasing to 29.2% from 30.2% [5] - Operating income decreased by 29%, resulting in an operating margin of 7.2% compared to 9.7% in Q1 2024 [7] - Net income dropped to $53.5 million in Q1 2025 from $78.9 million in Q1 2024, with earnings per diluted share decreasing by 30% to $1.42 [9] Operational Highlights - The company expanded its sales center network by adding two new locations and optimized its supply chain capabilities [3] - Maintenance-related product sales supported overall sales, with chemical volumes growing by 1% [4] - Selling and administrative expenses increased by 2% due to inflation and network expansion, leading to an operating expense percentage of 21.9% [6] Balance Sheet and Liquidity - Inventory balance was $1.5 billion, a reduction of $36.3 million or 2% from the previous year [12] - Total debt outstanding increased by $45.9 million to $1.0 billion [12] - Net cash provided by operations was $27.2 million, a significant decline from $145.4 million in the same period last year [13] Market Position and Strategy - The company continues to focus on strengthening its industry-leading position through disciplined execution and innovation in its customer-centric digital ecosystem [14] - Pool Corporation operates 449 sales centers across North America, Europe, and Australia, distributing over 200,000 products to approximately 125,000 wholesale customers [16]

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]