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 ...

Highlights include: Annual net sales of $5.3 billion, anchored by a consistent stream of recurring maintenance product salesOperating income of $617.2 million, maintaining a solid operating margin of 11.6%Net cash provided by operations of $659.2 million, or 152% of net income2024 diluted EPS of $11.30, or $11.07 without tax benefits2025 diluted EPS guidance range of $11.08 - $11.58, including an estimated $0.08 tax benefit COVINGTON, La., Feb. 20, 2025 (GLOBE NEWSWIRE) -- Pool Corporation (Nasdaq/GSM:POOL) ...

COVINGTON, La., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Pool Corporation (Nasdaq: POOL) announced today that the Company will release its full year and fourth quarter 2024 earnings results before the market opens on February 20, 2025, 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 ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Pool Corp. (POOL) , which belongs to the Zacks Leisure and Recreation Products industry, could be a great candidate to consider.This distributor of supplies for swimming pools has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 2.56%.For the last r ...

Pool Corp. (POOL) has been beaten down lately with too much selling pressure. While the stock has lost 13.5% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that m ...