Pool Corp(POOL)2025-04-24 13:54Financial 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]