Pool Corp(POOL) - 2022 Q3 - Quarterly Report

PART I. FINANCIAL INFORMATION This part presents the company's unaudited interim financial statements and management's discussion and analysis for the specified periods Item 1. Financial Statements This section presents the company's unaudited interim financial statements and accompanying notes for the three and nine months ended September 30, 2022 Consolidated Statements of Income This statement details the company's revenues, costs, and profits, showing growth in net sales, gross profit, operating income, net income, and diluted EPS Three Months Ended September 30, 2022 vs 2021 | Metric | 2022 (USD thousands) | 2021 (USD thousands) | Change (%) | | :--------------------------------- | :------------------- | :------------------- | :--------- | | Net sales | $1,615,339 | $1,411,448 | 14.4% | | Gross profit | $503,687 | $441,899 | 14.0% | | Operating income | $263,877 | $237,276 | 11.2% | | Net income | $190,055 | $184,665 | 2.9% | | Diluted EPS | $4.78 | $4.54 | 5.3% | Nine Months Ended September 30, 2022 vs 2021 | Metric | 2022 (USD thousands) | 2021 (USD thousands) | Change (%) | | :--------------------------------- | :------------------- | :------------------- | :--------- | | Net sales | $5,083,807 | $4,260,027 | 19.3% | | Gross profit | $1,617,681 | $1,294,716 | 24.9% | | Operating income | $918,489 | $704,893 | 30.3% | | Net income | $676,600 | $543,015 | 24.6% | | Diluted EPS | $16.82 | $13.32 | 26.3% | Consolidated Statements of Comprehensive Income This statement details comprehensive income components, including net income and other comprehensive income/loss items like foreign currency adjustments Three Months Ended September 30, 2022 vs 2021 | Metric | 2022 (USD thousands) | 2021 (USD thousands) | | :--------------------------------- | :------------------- | :------------------- | | Net income | $190,055 | $184,665 | | Foreign currency translation losses | $(11,152) | $(3,555) | | Change in unrealized gains on interest rate swaps, net of tax | $8,776 | $1,473 | | Total other comprehensive (loss) income | $(2,376) | $(2,082) | | Comprehensive income | $187,679 | $182,583 | Nine Months Ended September 30, 2022 vs 2021 | Metric | 2022 (USD thousands) | 2021 (USD thousands) | | :--------------------------------- | :------------------- | :------------------- | | Net income | $676,600 | $543,015 | | Foreign currency translation losses | $(18,491) | $(3,522) | | Change in unrealized gains on interest rate swaps, net of tax | $25,267 | $8,453 | | Total other comprehensive (loss) income | $6,776 | $4,931 | | Comprehensive income | $683,376 | $547,946 | Consolidated Balance Sheets This statement presents the company's assets, liabilities, and equity, highlighting significant increases in inventories, goodwill, intangibles, and long-term debt Balance Sheet Highlights (September 30, 2022 vs. September 30, 2021) | Metric | Sep 30, 2022 (USD thousands) | Sep 30, 2021 (USD thousands) | Change (%) | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Total current assets | $2,199,479 | $1,626,400 | 35.2% | | Product inventories, net | $1,539,572 | $1,043,407 | 47.6% | | Goodwill | $691,786 | $281,300 | 145.9% | | Other intangible assets, net | $307,389 | $12,067 | 2447.3% | | Total assets | $3,688,055 | $2,282,233 | 61.6% | | Total current liabilities | $737,260 | $722,136 | 2.1% | | Long-term debt, net | $1,500,337 | $352,075 | 326.1% | | Total liabilities | $2,497,177 | $1,297,021 | 92.5% | | Total stockholders' equity | $1,190,878 | $985,212 | 20.9% | Condensed Consolidated Statements of Cash Flows This statement outlines cash flows from operating, investing, and financing activities, noting decreased operating cash and changes in investing and financing Cash Flows (Nine Months Ended September 30, in thousands) | Activity | 2022 (USD thousands) | 2021 (USD thousands) | | :--------------------------------- | :------------------- | :------------------- | | Operating activities | $307,470 | $359,065 | | Investing activities | $(34,514) | $(42,110) | | Financing activities | $(248,404) | $(267,765) | - The decrease in operating cash flows was driven by federal tax payments of $79.5 million in 2022 (deferred from 2021) and growth-driven working capital outflows, partially offset by an increase in net income[121] - Net cash used in investing activities decreased primarily due to a $9.6 million decrease in cash used for the acquisition of businesses[122] - Financing activities saw a $333.2 million increase in share repurchases and a $24.1 million increase in dividends paid, partially offset by a $380.4 million increase in net debt proceeds[123] Consolidated Statements of Changes in Stockholders' Equity This statement details changes in stockholders' equity, including impacts from net income, currency translation, swaps, share repurchases, and dividends Stockholders' Equity at September 30, 2022 | Component | Amount (USD thousands) | | :--------------------------------- | :--------------------- | | Common Stock | $39 | | Additional Paid-In Capital | $570,855 | | Retained Earnings | $620,692 | | Accumulated Other Comprehensive Loss | $(708) | | Total Stockholders' Equity | $1,190,878 | - Repurchases of common stock, net of retirements, amounted to $(192,528) thousand in the third quarter of 2022[19] - Declaration of cash dividends amounted to $(39,544) thousand in the third quarter of 2022[19] Notes to Consolidated Financial Statements These notes provide additional context for financial statements, covering accounting policies, EPS, acquisitions, fair value, interest rate swaps, and debt structure Note 1 – Summary of Significant Accounting Policies This note outlines significant accounting policies, including interim financial statement presentation, income tax, retained earnings, and comprehensive loss components - Excess tax benefits from share-based compensation were $0.6 million in Q3 2022 (vs $4.2 million in Q3 2021) and $9.5 million for the nine months ended September 30, 2022 (vs $15.9 million in 2021)[24] - Retained earnings reflect cumulative net income, accounting adjustments, $2.1 billion in treasury share retirements, and $902.0 million in cumulative dividends as of September 30, 2022[25] Accumulated Other Comprehensive Loss Components (USD thousands) | Component | September 30, 2022 | December 31, 2021 | | :--------------------------------- | :------------------- | :------------------ | | Foreign currency translation adjustments | $(28,071) | $(9,580) | | Unrealized gains (losses) on interest rate swaps, net of tax | $27,363 | $2,096 | | Accumulated other comprehensive loss | $(708) | $(7,484) | - The company does not expect a material impact on its financial statements from adopting ASU 2020-04 and ASU 2021-01 related to LIBOR reform[27] Note 2 – Earnings Per Share This note explains the calculation of basic and diluted earnings per share using the two-class method for participating securities Diluted EPS (Three Months Ended September 30) | Year | Diluted EPS | | :--- | :---------- | | 2022 | $4.78 | | 2021 | $4.54 | Diluted EPS (Nine Months Ended September 30) | Year | Diluted EPS | | :--- | :---------- | | 2022 | $16.82 | | 2021 | $13.32 | - Participating securities excluded from weighted average common shares outstanding were 213 thousand in the third quarter of 2022 and 223 thousand for the nine months ended September 30, 2022[28] Note 3 – Acquisitions This note details recent acquisitions, including Tri-State Pool Distributors and Porpoise Pool & Patio, highlighting impacts on goodwill and intangibles - Acquired the distribution assets of Tri-State Pool Distributors in April 2022, adding one location in West Virginia[30] - Acquired Porpoise Pool & Patio, Inc. for $788.7 million (net of cash) in December 2021, adding one distribution location in Florida and servicing Pinch A Penny, Inc[31] - Preliminary recognition of goodwill from the Porpoise acquisition was $403.5 million, and other intangible assets were $301.0 million[32] - Other acquisitions in 2021 included Wingate Supply, Inc., Vak Pak Builders Supply, Inc., and Pool Source, LLC, adding locations in Florida and Tennessee[33][34] Note 4 – Fair Value Measurements and Interest Rate Swaps This note explains fair value hierarchy use for financial instruments and details interest rate swap contracts to manage variable interest rate exposure Fair Value at September 30, 2022 (USD thousands) | Item | Fair Value | Level | | :--------------------------------- | :--------- | :---- | | Unrealized gains on interest rate swaps | $36,529 | Level 2 | | Unrealized losses on interest rate swaps | $0 | Level 2 | | Contingent consideration liabilities | $546 | Level 3 | - Two interest rate swap contracts (notional amount $75.0 million each, fixed rates 2.0925% and 1.5500%) terminated on September 29, 2022[41][42] - Currently, two interest rate swap contracts are in place: $150.0 million at 1.3800% (effective Feb 2021, terminates Feb 2025) and $150.0 million at 0.7400% (effective Sep 2022, terminates Feb 2027)[43] - One forward-starting interest rate swap contract is in place: $150.0 million at 0.8130% (effective Feb 2025, terminates Feb 2027)[45] Note 5 – Debt This note details the company's debt, including variable rate facilities, and explains the significant increase in total debt outstanding Total Debt Outstanding (USD thousands) | Date | Amount | | :---------------- | :--------- | | September 30, 2022 | $1,512,545 | | September 30, 2021 | $362,819 | - Long-term debt, net, increased from $352.1 million at September 30, 2021, to $1,500.3 million at September 30, 2022[49] - The $250.0 million incremental term loan available under the Credit Facility was fully drawn in January 2022, bringing total term loans to $500.0 million[49] - The receivables securitization facility balance was $270.0 million at September 30, 2022, up from $15.0 million at September 30, 2021[49] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's analysis of financial performance, condition, and outlook, covering sales, profits, COVID-19 impact, liquidity, and accounting estimates Forward-Looking Statements This cautionary statement highlights that the report contains forward-looking information subject to risks like COVID-19, weather, economic changes, and competition - Forward-looking statements are identified by words such as "anticipate," "estimate," "expect," "intend," "believe," "will likely result," "outlook," "project," "may," "can," "plan," "target," "potential," "should"[54] - Actual results may differ materially due to factors including impacts from the COVID-19 pandemic, sensitivity to weather conditions, changes in the economy, consumer discretionary spending, the housing market or inflation rates, supplier relationships, competition, and the ability to execute growth strategies[55] OVERVIEW This overview summarizes Q3 2022 financial performance, noting sales growth, moderating new pool construction, inventory investments, and increased debt Financial Results Q3 2022 net sales increased 14% due to base business and inflation, despite headwinds, with gross profit and operating income also growing - Net sales increased 14% to $1.6 billion in the third quarter of 2022 compared to $1.4 billion in the third quarter of 2021, with base business sales growing 10%[56] - Net sales benefited approximately 9% to 10% from inflationary product cost increases[56] - Sales were partially offset by a 1% impact from softness in European markets, 1% from currency exchange rate fluctuations, 1% from one less selling day, and an anticipated net sales shift of $9.0 million from Q3 2022 to Q4 2022 due to Hurricane Ian[58] - Gross profit increased 14% to $503.7 million in Q3 2022, but gross margin decreased 10 basis points to 31.2%[56] - Operating income increased 11% to $263.9 million, with operating margin at 16.3% (compared to 16.8% in Q3 2021)[58] - Net income increased 3% to $190.1 million, and diluted earnings per share increased 5% to $4.78[60] COVID-19 Pandemic The company monitors the COVID-19 pandemic's impact, noting moderating new pool construction, proactive inventory investments, and improving supply chains - Experienced unprecedented demand beginning in Q2 2020 as families spent more time at home and sought outdoor living spaces[62] - Recent trends, including a lower number of permits issued for new pools, suggest that new construction activities are moderating[62] - Made significant investments in inventory in late 2021 and early 2022 to meet strong customer demand and address supply chain constraints[63] - Observed improvements in supply chain dynamics in the second and third quarters of 2022, with inventory balances expected to normalize as 2023 progresses[63] Financial Position and Liquidity Net receivables increased 15%, inventory levels rose 48%, and total debt outstanding significantly increased to $1.5 billion for strategic funding - Total net receivables, including pledged receivables, increased 15% compared to September 30, 2021[64] - Days sales outstanding (DSO) was 27.0 days at September 30, 2022, compared to 25.7 days at September 30, 2021[64] - Net inventory levels increased 48% compared to September 30, 2021, driven by increased purchasing, inflation, and recent acquisitions[65] - Inventory turns were 2.7 times at September 30, 2022, compared to 3.8 times at September 30, 2021[65] - Total debt outstanding at September 30, 2022, was $1.5 billion, a significant increase from $362.8 million at September 30, 2021, used to fund acquisitions, share repurchases, and working capital[66] Current Trends and Outlook The company projects 2022 diluted EPS of $18.50-$19.05, 17-19% sales growth, 10% inflation, and modest full-year gross margin improvement - Expected 2022 diluted EPS is $18.50 to $19.05, including year-to-date tax benefits of $0.24[68] - Expected sales growth for the full year is in the range of 17% to 19%[69] - Projected 2022 inflationary product cost increases are approximately 10%[69] - Expects a modest improvement in gross margin for the full year of 2022 compared to 2021, but a decline of 150 to 200 basis points in Q4 2022 due to lower inflation and vendor incentives[70] - Operating expense growth rate in 2022 is projected to be less than gross profit growth rate, reflecting inflationary increases and incremental costs for strategic initiatives like digital transformation and sales center expansion[71] - The annual effective tax rate (without ASU 2016-09 benefit) for 2022 is projected to approximate 25.5%[72] RESULTS OF OPERATIONS This section details the company's financial performance for the three and nine months ended September 30, 2022, analyzing key income statement components Three Months Ended September 30, 2022 Compared to Three Months Ended September 30, 2021 Q3 2022 net sales increased 14% due to base business and inflation, with gross margin slightly down and operating expenses up 17% - The company operated through 417 sales centers as of September 30, 2022, an increase from 410 at December 31, 2021, including 1 acquired location and 6 new locations[79] Factors Affecting Net Sales (Q3 YoY) | Component | Estimated Impact | | :--------------------------------- | :--------------- | | Inflationary product cost increases | 9-10% | | Sales growth from recent acquisitions | 4% | | European market softness | (1%) | | Unfavorable currency exchange rate fluctuations | (1%) | | One less selling day | (1%) | | Anticipated net sales shift due to Hurricane Ian | $(9.0) million | | Base business net sales growth | 10% | - Equipment sales increased 9% (27% of net sales), building materials grew 14% (14% of net sales), and chemical sales increased 32% (13% of net sales)[81] - Net sales in year-round markets increased 15%, while seasonal markets increased 8%, and European net sales declined 11% in local currency[83][84] - Gross margin decreased 10 basis points to 31.2% in Q3 2022 (vs 31.3% in Q3 2021)[85] - Operating expenses increased 17% to $239.8 million, rising to 14.8% of net sales (vs 14.5% in Q3 2021)[86] - Interest and other non-operating expenses, net, increased $9.4 million due to higher average debt levels and interest rates (weighted average effective interest rate 3.2% in Q3 2022 vs 2.8% in Q3 2021)[87] - The effective income tax rate was 24.7% for Q3 2022 (vs 21.4% for Q3 2021), with a lower tax benefit from ASU 2016-09 ($0.6 million vs $4.2 million)[88] - Net income increased 3% to $190.1 million, and diluted EPS increased 5% to $4.78[89] Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021 Nine-month net sales increased 19%, with base business up 14%, gross margin improving 140 basis points, and net income rising 25% Factors Affecting Net Sales (9 Months YoY) | Component | Estimated Impact | | :--------------------------------- | :--------------- | | Inflationary product cost increases | 9-10% | | Sales growth from recent acquisitions | 5% | | European market softness | (1%) | | Unfavorable currency exchange rate fluctuations | (1%) | | Less favorable weather conditions | Negative impact | | Anticipated net sales shift due to Hurricane Ian | $(9.0) million | | Base business net sales growth | 14% | - Equipment sales increased approximately 11% (27% of net sales), building materials grew 22% (13% of net sales), and chemical sales increased 34% (12% of net sales)[92] - Net sales in year-round markets increased 18%, while seasonal markets increased 13%, and European net sales declined 3% in local currency[94][95] - Gross margin improved 140 basis points to 31.8% in the nine months ended September 30, 2022 (vs 30.4% in 9M 2021)[96] - Operating expenses increased 19% to $699.2 million, remaining at 13.8% of net sales[97] - Interest and other non-operating expenses, net, increased $18.6 million due to higher average debt levels ($1.5 billion in 9M 2022 vs $376.2 million in 9M 2021), with the weighted average effective interest rate decreasing to 2.3% (vs 2.6%)[98] - The effective income tax rate was 24.3% for 9M 2022 (vs 22.2% for 9M 2021), with a lower tax benefit from ASU 2016-09 ($9.5 million vs $15.9 million)[99] - Net income increased 25% to $676.6 million, and diluted EPS increased 26% to $16.82[100] Reconciliation of Non-GAAP Financial Measures This section reconciles diluted EPS to adjusted diluted EPS, a non-GAAP measure, by excluding ASU 2016-09 tax benefits Adjusted Diluted EPS (excluding ASU 2016-09 tax benefit) | Period | Diluted EPS | ASU 2016-09 Tax Benefit | Adjusted Diluted EPS | | :--------------------------------- | :---------- | :---------------------- | :------------------- | | Three Months Ended Sep 30, 2022 | $4.78 | $(0.02) | $4.76 | | Three Months Ended Sep 30, 2021 | $4.54 | $(0.10) | $4.44 | | Nine Months Ended Sep 30, 2022 | $16.82 | $(0.24) | $16.58 | | Nine Months Ended Sep 30, 2021 | $13.32 | $(0.39) | $12.93 | Seasonality and Quarterly Fluctuations The company's business is seasonal, with sales and operating income peaking in Q2 and Q3, influencing inventory and cash flows - Sales and operating income are highest during the second and third quarters, representing the peak months of swimming pool use and installation, and irrigation and landscape installations and maintenance[105] - The company typically experiences a build-up of product inventories and accounts payable during the winter months in anticipation of the peak selling season[106] - Peak borrowing usually occurs during the second quarter, while peak accounts receivable collections typically occur in June, July, and August[106] Weather Impacts on 2022 and 2021 Results Weather significantly impacts business, with hot, dry conditions boosting sales and cool, wet weather or hurricanes negatively affecting them - Hot and dry weather increases purchases of chemicals and supplies for existing swimming pools, and above-ground pools and irrigation products[111] - Unseasonably cool weather or extraordinary amounts of rain lead to fewer pool and irrigation installations and decreased purchases of chemicals and impulse items[111] - Sales in Q3 2022 were generally aided by above-average temperatures but negatively impacted by Hurricane Ian in Florida, with recovery expected in Q4 2022[112] - Q2 2022 sales were limited by heavy rainfall and cooler temperatures in the northeastern United States and Canada, and unfavorable weather in Europe[113] CRITICAL ACCOUNTING ESTIMATES Critical accounting estimates involve significant uncertainty, and no changes have been made to previously disclosed policies from the 2021 Annual Report - Critical accounting estimates require the use of assumptions about matters that are inherently and highly uncertain at the time the estimates are made[115] - Changes in estimates or assumptions, or the use of different estimates and assumptions, could have a material impact on consolidated results of operations or financial condition[115] - No changes have been made to the critical accounting policies from those previously disclosed in the 2021 Annual Report on Form 10-K[116] Recent Accounting Pronouncements This section refers to Note 1 of the financial statements for a discussion of recent accounting pronouncements and their expected effects - For a discussion of recent accounting pronouncements, refer to Note 1 of "Notes to Consolidated Financial Statements" included in Part I, Item 1 of this Form 10-Q[117] LIQUIDITY AND CAPITAL RESOURCES This section discusses the company's liquidity, sources and uses of cash, credit facilities, and compliance with financial covenants Sources and Uses of Cash Operating cash decreased due to tax payments and working capital, while investing cash decreased and financing cash decreased due to debt proceeds Cash Flows (Nine Months Ended September 30, in thousands) | Activity | 2022 (USD thousands) | 2021 (USD thousands) | | :--------------------------------- | :------------------- | :------------------- | | Operating activities | $307,470 | $359,065 | | Investing activities | $(34,514) | $(42,110) | | Financing activities | $(248,404) | $(267,765) | - The decrease in operating cash flows was driven by federal tax payments of $79.5 million in 2022 (deferred from 2021) and growth-driven working capital outflows, partially offset by an increase in net income[121] - Net cash used in investing activities decreased primarily due to a $9.6 million decrease in cash used for the acquisition of businesses[122] - Net cash used in financing activities decreased, reflecting a $333.2 million increase in share repurchases and a $24.1 million increase in dividends paid, partially offset by a $380.4 million increase in net debt proceeds[123] Future Sources and Uses of Cash The company's Credit Facility, Term Facility, and Receivables Securitization Facility provide substantial borrowing capacity for future needs - The Credit Facility provides $1.25 billion in borrowing capacity, consisting of a $750.0 million five-year unsecured revolving credit facility and a $500.0 million term loan facility, maturing on September 25, 2026[123] - At September 30, 2022, $573.0 million of revolving borrowings and a $500.0 million term loan were outstanding under the Credit Facility, with $172.2 million available for borrowing[124] - The Term Facility provides $185.0 million in borrowing capacity and matures on December 30, 2026, with $159.6 million outstanding at September 30, 2022[125][126] - The Receivables Securitization Facility allows borrowing up to $350.0 million (seasonally adjusted) and matures on November 1, 2023, with $270.0 million outstanding at September 30, 2022[127][130] Financial Covenants Credit facilities include restrictive financial covenants, such as maximum leverage and minimum fixed charge coverage ratios, and dividend restrictions - The maximum average total leverage ratio must be less than 3.25 to 1.00; as of September 30, 2022, it equaled 1.25[132] - The minimum fixed charge coverage ratio must be greater than or equal to 2.25 to 1.00; as of September 30, 2022, it equaled 11.14[132] - The Credit Facility and Term Facility limit the declaration and payment of dividends and share repurchases, requiring no default and an average total leverage ratio less than 3.25 to 1.00[131] Interest Rate Swaps The company uses interest rate swaps to manage exposure to variable interest rates on borrowings, converting a portion to fixed rates - The company utilizes interest rate swap contracts and forward-starting interest rate swap contracts to reduce exposure to fluctuations in variable interest rates for future interest payments on variable rate borrowings[133] - As of September 30, 2022, two interest rate swap contracts and one forward-starting interest rate swap contract were in place, converting variable interest rates to fixed rates on a portion of variable rate borrowings[134] Compliance and Future Availability The company is in compliance with all credit facility covenants and has adequate capital for operations, working capital, and future acquisitions - As of September 30, 2022, the company was in compliance with all material covenants and financial ratio requirements under its Credit Facility, Term Facility, and Receivables Facility, and expects to remain in compliance[135] - The company believes it has adequate availability of capital to fund present operations and the current capacity to finance any working capital needs and potential future acquisitions[136] - As of October 24, 2022, $230.2 million of the current Board-authorized amount under the share repurchase program remained available[137][149] Item 3. Quantitative and Qualitative Disclosures about Market Risk No material changes occurred in the company's interest rate or currency risk exposure during the nine months ended September 30, 2022 Interest Rate Risk No material changes in interest rate risk occurred during the nine months ended September 30, 2022 - No material changes in interest rate risk during the nine months ended September 30, 2022[139] Currency Risk No material changes in currency risk occurred during the nine months ended September 30, 2022 - No material changes in currency risk during the nine months ended September 30, 2022[140] Item 4. Controls and Procedures Management concluded disclosure controls were effective, with no material changes in internal control over financial reporting during the last quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2022[141] - No change in internal control over financial reporting occurred during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting[142] - The effectiveness of control systems is subject to limitations, providing only reasonable assurance regarding management's control objectives[143] PART II. OTHER INFORMATION This part provides additional information beyond financial statements, including legal proceedings, risk factors, equity sales, and exhibits Item 1. Legal Proceedings The company is involved in routine legal proceedings, but management does not expect a material adverse impact on financial results - The company is subject to various claims and litigation arising in the ordinary course of business[146] - Management does not believe that the ultimate resolution of these matters will have a material adverse impact on the company's financial condition, results of operations, or cash flows[146] Item 1A. Risk Factors No material changes occurred from the risk factors previously disclosed in the 2021 Annual Report on Form 10-K - There have been no material changes from the risk factors disclosed in Part I, Item 1A "Risk Factors" in the 2021 Annual Report on Form 10-K[147] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section details common stock repurchases in Q3 2022 and the remaining authorization, with future dividends at Board discretion Common Stock Repurchases (Q3 2022) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :----------------- | :----------------------------- | :--------------------------- | | July 1-31, 2022 | 2,953 | $359.18 | | August 1-31, 2022 | 216,796 | $366.54 | | September 1-30, 2022 | 329,043 | $340.39 | | Total | 548,792 | $350.82 | - As of October 24, 2022, $230.2 million of the authorized amount remained available under the current share repurchase program[149] - The Board may declare future dividends at their discretion, after considering various factors, including earnings, capital requirements, financial position, and contractual restrictions[149] Item 6. Exhibits This section lists all exhibits filed, including corporate documents, officer certifications, and Inline XBRL documents for financial statements - Exhibits include certifications by the Chief Financial Officer and Chief Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a), and 18 U.S.C. Section 1350[151] - Inline XBRL documents are provided for the Consolidated Statements of Income, Comprehensive Income, Balance Sheets, Condensed Consolidated Statements of Cash Flows, Consolidated Statements of Changes in Stockholders' Equity, and Notes to Consolidated Financial Statements[151][152] SIGNATURE This section confirms the report was signed by Melanie Housey Hart, Vice President and Chief Financial Officer, on October 27, 2022 - The report was signed by Melanie Housey Hart, Vice President and Chief Financial Officer, on behalf of POOL CORPORATION[156] - The signing date of the report was October 27, 2022[154]