Pool Corp(POOL) - 2024 Q4 - Annual Results

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].