Core Viewpoint - Pool Corporation (POOL) reported second-quarter 2024 results with earnings and revenues exceeding the Zacks Consensus Estimate, although both metrics declined compared to the prior-year quarter [1][3]. Earnings & Revenues Discussion - Adjusted earnings per share (EPS) for the second quarter were $4.98, surpassing the Zacks Consensus Estimate of $4.90, but down from $5.89 in the prior-year quarter [3]. - Quarterly net revenues reached $1.77 billion, beating the consensus mark of $1.74 billion, but reflecting a 4.7% year-over-year decline due to lower consumer spending on discretionary items and poor sales in building materials [3]. Operating Highlights & Expenses - Cost of sales for the quarter was $1.24 billion, down from $1.29 billion in the prior-year quarter, aligning with estimates [4]. - Gross profit margin was 30%, a decrease of 60 basis points from 30.6% in the previous year [4]. - Operating income fell 17% year over year to $271.5 million, with an operating margin of 15.3%, down 230 basis points from the prior-year quarter [5]. - Selling and administrative expenses increased by 7.4% year over year to $258.7 million, driven by higher spending on network expansion and technology initiatives [5]. Net Income - Net income for the quarter was $192.4 million, down from $232.3 million in the prior-year quarter [6]. Balance Sheet - As of June 30, 2024, cash and cash equivalents were $96.9 million, up from $53.2 million a year earlier [7]. - Net long-term debt decreased to $1.07 billion from $1.15 billion in the prior-year quarter [7]. - Goodwill remained relatively stable at $699.7 million compared to $699.9 million in the previous year [7]. Cash Flow - For the six months ended June 30, 2024, net cash provided by operating activities was $172.1 million, down from $376.8 million in the prior-year period [8]. 2024 Guidance - For 2024, Pool Corporation expects adjusted EPS to be in the range of $11.05 to $11.45 [9].

Financial Data and Key Metrics Changes - The company reported net sales of $1.8 billion in the second quarter, a decrease of 5% from the prior year, although this reflects an improved trend compared to previous quarters [16][149] - Gross margin for the quarter finished at 30%, down 60 basis points from the prior year, with expectations for full-year gross margins to be approximately 30% [10][42][14] - Operating income was reported at $271.5 million, with an operating margin of 15.3%, down from 17.6% in the same period last year [35] Business Line Data and Key Metrics Changes - Sales in the building materials segment declined by 10% for the quarter, which is better than the overall new pool builds and remodel expectations [151] - Equipment sales remained flat for the quarter, with improvements noted in specific areas such as lights, pumps, heaters, and parts [151] - The chemicals segment saw a 1% increase in sales, driven by a 3% growth in volume, despite a 2% deflationary impact on price [36] Market Data and Key Metrics Changes - Europe experienced an 11% decline in sales, attributed to tough consumer sentiment and adverse weather conditions [11] - Sales to independent retail pool customers declined close to 6%, reflecting consumer selectivity in discretionary purchases [12] - The company expects around 15% to 20% lower levels of new pool construction compared to the prior year, impacting total sales by approximately 3% for the quarter [3][8] Company Strategy and Development Direction - The company is focused on expanding its network to better serve both professional and do-it-yourself maintenance customers, enhancing customer experience through technology and service programs [15][39] - Strategic initiatives include investments in technology, expansion of the sales center network, and selective acquisitions to support long-term growth [48][39] - The company aims to leverage its digital ecosystem, particularly through the POOL360 platform, to enhance service and convenience for customers [9][139] Management's Comments on Operating Environment and Future Outlook - Management noted that while discretionary spending remains under pressure, nondiscretionary demand is solid and in line with expectations [8] - The company is optimistic about future demand, citing increased inbound calls from consumers despite current hesitance to commit to purchases [148][60] - The outlook for the remainder of the year includes expectations for continued pricing pressure and lower new pool builds, with a collective sales impact estimated at 4% to 5% [46][107] Other Important Information - The Board of Directors increased the quarterly dividend by 9% to $1.20 per share, reflecting confidence in future earnings and strong cash flows [21][138] - The company has opened eight new sales centers this year and continues to enhance its customer-facing technology platform [18][34] - Cash flows from operating activities of $172 million year-to-date are on pace to meet or slightly exceed the target of approximately 100% of net income for the full year [44] Q&A Session Summary Question: How confident is the company in the reset guidance level for the remainder of the year? - Management expressed confidence in the guidance, noting that building material sales are performing better than market indicators suggest, despite a decline in new pool construction [58][65] Question: What is the impact of the recent closures on operating margins? - The $1 million impact from the closure of three sales centers will not recur, and the focus remains on improving supply chain efficiencies to enhance operating margins [63][75] Question: Are there any changes in competitive behavior following Home Depot's acquisition of Heritage? - Management indicated no significant changes in competitive dynamics, maintaining that the same competitors remain in the market [124][108] Question: What are the expectations for operating expense leverage in 2025? - Management anticipates a return to more normalized levels of operating expense leverage as sales growth resumes, although the timing remains uncertain [110][127] Question: What factors could improve gross margin in 2025? - Management highlighted ongoing efforts in strategic pricing, private label expansion, and supply chain improvements as key factors for potential gross margin enhancement [144][159]

Exhibit 99.1 FOR IMMEDIATE RELEASE POOL CORPORATION REPORTS SECOND QUARTER RESULTS Highlights COVINGTON, LA. (July 25, 2024) – Pool Corporation (Nasdaq/GSM:POOL) today reported results for the second quarter of 2024. "The demand for maintenance products supported a solid quarter given the trend for lower consumer spending on high dollar discretionary items. Our second quarter net sales of $1.8 billion, down 5% from the second quarter of 2023, showed an improving trend from the decrease of 7% that we saw in ...

Pool Corp. (POOL) came out with quarterly earnings of $4.98 per share, beating the Zacks Consensus Estimate of $4.90 per share. This compares to earnings of $5.89 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 1.63%. A quarter ago, it was expected that this distributor of supplies for swimming pools would post earnings of $1.87 per share when it actually produced earnings of $1.85, delivering a surprise of -1.07%. Over the la ...

Core Insights - Net sales for the second quarter of 2024 decreased by 5% to $1.8 billion compared to $1.9 billion in the same period of 2023, with strong performance in recurring maintenance products but lower spending on discretionary items reflecting consumer hesitancy [1][62] - Gross profit decreased by 7% to $530.1 million, with a gross margin of 30.0%, down from 30.6% in the second quarter of 2023, impacted by a lower contribution from building materials [25][60] - Operating income for the second quarter of 2024 decreased by 17% to $271.5 million, with an operating margin of 15.3%, down from 17.6% in the same period last year [60][63] - Net income for the second quarter of 2024 decreased by 17% to $192.4 million, with diluted earnings per share down 16% to $4.99 [63][59] Financial Performance - Selling and administrative expenses increased by 7% to $258.7 million in the second quarter of 2024 compared to $240.8 million in the same period of 2023, with operating expenses as a percentage of net sales rising to 14.6% from 13.0% [2][4] - For the six months ended June 30, 2024, net sales declined by 6% to $2.9 billion from $3.1 billion in the same period of 2023, with a gross margin of 30.1%, down from 30.6% [26][36] - Adjusted EBITDA for the first six months of 2024 decreased by 18% to $411.8 million compared to $502.6 million in the same period last year [36][56] Market Trends - The company noted a positive pricing impact of approximately 1% on sales, with a realization of 2% to 3% on product cost increases for equipment, although offset by lower realized net prices on other products [1] - The demand for maintenance products supported sales despite a trend of lower consumer spending on high-dollar discretionary items, indicating a shift in consumer behavior [62] Outlook - The company confirmed its annual earnings guidance range of $11.05 to $11.45 per diluted share, reflecting confidence in long-term growth opportunities in the outdoor living industry [48][22] - Management emphasized a focus on providing exceptional customer experience and strategic growth investments, supported by a strong balance sheet [62][48]

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The swimming pool products distributor is enduring a challenging 2024, but it's still a good-quality business likely to grow in the future. Wholesale swimming products distributor Pool Corp.'s (POOL -0.14%) shares declined by 22.9% in the first half of 2024, according to data provided by S&P Global Market Intelligence. Moreover, the stock declined 9% after the company updated the market on the swimming pool season and promptly said new pool construction activity in 2024 could be down 15% to 20%. In addition ...

COVINGTON, La., July 11, 2024 (GLOBE NEWSWIRE) -- Pool Corporation (Nasdaq: POOL) announced today that the Company will release its second quarter 2024 earnings results before the market opens on July 25, 2024, and will hold a conference call to discuss the results at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) that same day. The earnings release as well as a live webcast and replay of the conference call will be available on the Company's website at www.poolcorp.com. The conference call can also be a ...

COVINGTON, La., July 11, 2024 (GLOBE NEWSWIRE) -- Pool Corporation (Nasdaq: POOL) announced today that the Company will release its second quarter 2024 earnings results before the market opens on July 25, 2024, and will hold a conference call to discuss the results at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) that same day. The earnings release as well as a live webcast and replay of the conference call will be available on the Company's website at www.poolcorp.com. The conference call can also be a ...

Shares of the United States' largest pool supplies distributor, Pool Corporation (POOL 5.23%), were up 5% as of 1 p.m. ET on Thursday, according to data provided by S&P Global Market Intelligence. Is the end of a down cycle finally in sight? These potentially lower interest rates are important to Poolcorp because it generates roughly 14% of its sales from new pool construction. Down 46% from its all-time highs, Poolcorp's stock could be in the early stages of a rebound as its morecyclical business segments ...