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].

Core Viewpoint - Pool Corporation (POOL) reported fourth-quarter 2024 results with earnings and revenues exceeding the Zacks Consensus Estimate, although both metrics declined compared to the prior-year quarter [1][3]. Financial Performance - Adjusted earnings per share (EPS) for Q4 were 97 cents, surpassing the Zacks Consensus Estimate of 91 cents, down from $1.30 in the prior-year quarter [3]. - Quarterly net revenues reached $987.5 million, beating the consensus mark of $953 million, but reflecting a 1.6% decline year over year, primarily due to poor sales in pool construction and discretionary products [3]. - Operating income fell 23.6% year over year to $60.7 million, with an operating margin of 6.1%, down 180 basis points from the previous year [5]. Cost and Expenses - Cost of sales for the quarter was $697.2 million, a decrease from $709.3 million in the prior-year quarter [4]. - Selling and administrative expenses increased by 7.1% year over year to $229.6 million, driven by inflation, network expansion, and technology investments [6]. Balance Sheet - As of December 31, 2024, cash and cash equivalents were $77.9 million, up from $66.5 million a year earlier, while net long-term debt decreased to $900.9 million from $1.02 billion [7]. - Net cash provided by operating activities for the 12 months ended December 31, 2024, was $659.2 million, down from $888.2 million in the prior-year period [7]. Annual Highlights - For 2024, net sales totaled $5.31 billion, down from $5.54 billion in 2023, and operating income was $617.2 million compared to $746.6 million in 2023 [8]. - Adjusted EPS for 2024 was $11.07, a decrease from $13.18 in the previous year [8]. Future Guidance - For 2025, Pool Corporation expects adjusted EPS to be in the range of $11.08 to $11.58 [9].

Financial Data and Key Metrics Changes - For the full year 2024, the company reported revenue of $5.3 billion, a decrease of 4% from 2023, but slightly above guidance due to strong team efforts [9][40] - Gross margin for the year was 29.7%, down from 30% in the previous year, impacted by a weaker product mix and competitive pressures [45] - Operating income was $617 million with an operating margin of 11.6%, consistent with the 2020 operating margin [9][46] - Diluted EPS for the year was $11.30, a 15% decrease from the prior year [49] Business Line Data and Key Metrics Changes - Chemical sales increased by 2% for the year and 8% in Q4, driven by mid-teens growth in private label chemical sales [15][20] - Building material sales declined by 10% for the year and 8% in Q4, reflecting a 15% decline in new pool units constructed [17][41] - Equipment sales were flat for the year but increased by 6% in Q4, supported by steady maintenance-related demand [17] - Commercial pool product sales grew by 9% for both the full year and Q4 [18] Market Data and Key Metrics Changes - Florida market showed resilience with 12% growth in Q4, while other year-round markets experienced mid-single-digit declines [12][13] - European sales declined by 9% for the year and 5% in Q4, although there was sequential improvement during the swimming pool season [14][15] - Sales to independent retail customers declined by 4% for the year but increased by 1% in Q4 [19] Company Strategy and Development Direction - The company is focused on expanding its Pool 360 ecosystem and enhancing customer experience to drive growth in maintenance business [5][21] - Strategic investments in technology and network expansion are ongoing, with ten new sales centers opened in 2024 [21][40] - The long-term outlook remains positive due to factors like southern migration and a growing millennial and Gen Z home-buying population [30][31] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer spending on discretionary items remains a headwind, with new pool construction expected to decline by 15% in 2024 [6][24] - For 2025, total sales growth is expected to be flat to slightly up, driven by maintenance-related product sales and modest inflation [25][57] - Management remains cautious about the economic environment but believes deferred remodels will present growth opportunities as the economy improves [26][112] Other Important Information - The company returned $483 million to shareholders through dividends and share repurchases in 2024 [40][55] - Cash flow from operations was strong, with a reduction in inventory contributing to nearly $660 million in operating cash flow [40][50] - The company plans to continue investing in technology and expanding its distribution network in 2025 [60][63] Q&A Session Summary Question: Discussion on Pool 360 initiatives and their impact on sales outlook - Management expressed satisfaction with the traction of Pool 360, emphasizing its role in driving maintenance sales and efficiency for maintenance companies [78][80] Question: Growth on the DIY side of the business and implications for Pinch A Penny - Management noted that there hasn't been a significant shift from professional services to DIY, with customer experience being a key driver for growth in Pinch A Penny [85][89] Question: Guidance on new construction units and market sentiment - Management indicated that while new construction is expected to be flat, sentiment from dealers suggests a potential improvement in the second half of the year [93][96] Question: Gross margin guidance and offsets to negative impacts - Management highlighted several actions being taken to maintain gross margins, including supply chain improvements and increased private label offerings [98][100] Question: Competitive pressures and customer mix - Management discussed the impact of private equity entering the market and how it has allowed the company to focus on serving national accounts [104][105] Question: Renovation and remodel market outlook - Management noted that cash customers are likely to proceed with remodels, while financing-dependent customers may delay projects due to high interest rates [111][112] Question: Weather impact on 2025 guidance - Management acknowledged that weather conditions in 2024 may create tougher comparisons for 2025, but this has been factored into guidance [120][121] Question: Strategic thoughts around Horizon and capital allocation - Management indicated that Horizon is focused on the Sunbelt market and will not require significant capital investment unless new home construction picks up [124][126]

Financial Performance - Net sales for 2024 were $5.3 billion, a decrease of 4% from $5.5 billion in 2023, with stable maintenance activities and softer discretionary product sales due to macroeconomic conditions [5]. - Gross profit for 2024 was $1.6 billion, down 5% from $1.7 billion in 2023, resulting in a gross margin of 29.7%, a decline of 30 basis points from 30.0% in 2023 [6]. - Operating income decreased 17% to $617.2 million in 2024, with an operating margin of 11.6%, down from 13.5% in 2023 [9]. - Net income for 2024 was $434.3 million, a decline of 17% compared to $523.2 million in 2023, leading to diluted earnings per share of $11.30, down 15% from $13.35 [11]. - Adjusted EBITDA decreased 16% to $680.9 million in 2024, representing 12.8% of net sales compared to 14.6% in 2023 [12]. - Selling and administrative expenses increased 5% to $958.1 million in 2024, representing 18.0% of net sales, up from 16.5% in 2023 [7]. - Q4 2024 diluted EPS decreased to $0.98 from $1.32 in Q4 2023, representing a decline of 25.76% [49]. - Adjusted diluted EPS for Q4 2024 was $0.97, down from $1.30 in Q4 2023, a decrease of 25.38% [49]. - For the year ended December 31, 2024, diluted EPS was $11.30, compared to $13.35 in 2023, reflecting a decline of 15.36% [49]. - Adjusted diluted EPS for the year ended December 31, 2024, was $11.07, down from $13.18 in 2023, a decrease of 16.01% [49]. Cash Flow and Investments - Operating cash flows for 2024 were $659.2 million, or 152% of net income, with $306.3 million allocated for share repurchases and $179.6 million for dividends [14]. - Cash and cash equivalents increased by $11,322 million, or 17%, from $66,540 million in 2023 to $77,862 million in 2024 [31]. - Payments on asset-backed financing increased by $184,300 million, from $560,300 million in 2023 to $744,600 million in 2024 [33]. Assets and Liabilities - Total assets decreased by $59,884 million, or 2%, from $3,428,068 million in 2023 to $3,368,184 million in 2024 [31]. - Total current liabilities rose by $73,420 million, or 10%, from $770,766 million in 2023 to $844,186 million in 2024 [31]. - Total stockholders' equity decreased by $39,322 million, or 3%, from $1,312,787 million in 2023 to $1,273,465 million in 2024 [31]. Inventory and Accounts - Inventory levels were reduced by 6% to $1.3 billion, outpacing the 4% decline in net sales [13]. - Product inventories decreased by $76,166 million, or 6%, from $1,365,466 million in 2023 to $1,289,300 million in 2024 [31]. - The allowance for doubtful accounts decreased from $11.7 million in 2023 to $8.6 million in 2024 [31]. Expansion and Growth - The company expanded its sales center network by adding 10 greenfield locations and 2 acquisitions, bringing the total to 448 locations worldwide [4]. - The company acquired 2 new locations and opened 10 new locations, resulting in a total of 448 sales centers by December 31, 2024 [38]. Tax Benefits - The ASU 2016-09 tax benefit for Q4 2024 was $0.01, compared to $0.02 in Q4 2023 [49]. - The ASU 2016-09 tax benefit for the year ended December 31, 2024, was $0.23, up from $0.17 in 2023 [49].

Pool Corp. (POOL) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $1.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.59%. A quarter ago, it was expected that this distributor of supplies for swimming pools would post earnings of $3.15 per share when it actually produced earnings of $3.26, delivering a surprise of 3.49%.Over the last ...