Pool Corporation Reports Third Quarter Results
Pool (POOL) reported Q3 2024 results with net sales of $1.4 billion, down 3% from Q3 2023. The company maintained steady demand for maintenance products while discretionary business segments faced pressure. Gross margin remained stable at 29.1%, while operating income decreased 9% to $176.4 million. Q3 diluted EPS was $3.27, down 7% from $3.51 in 2023. The company maintained its 2024 full-year earnings guidance range of $11.06 - $11.46 per diluted share. Total debt decreased by $110.1 million compared to September 2023, and inventory levels were reduced by 6% to $1.2 billion.
Pool (POOL) ha riportato i risultati del terzo trimestre 2024 con un fatturato netto di 1,4 miliardi di dollari, in calo del 3% rispetto al terzo trimestre 2023. L'azienda ha mantenuto una domanda costante per i prodotti di manutenzione, mentre i segmenti di business discrezionali hanno subito delle pressioni. Il margine lordo è rimasto stabile al 29,1%, mentre il reddito operativo è diminuito del 9% a 176,4 milioni di dollari. L'utile per azione diluito del terzo trimestre è stato di 3,27 dollari, in calo del 7% rispetto ai 3,51 dollari del 2023. L'azienda ha mantenuto la propria previsione di guadagni per l'intero anno 2024 nell'intervallo di 11,06 - 11,46 dollari per azione diluita. Il debito totale è diminuito di 110,1 milioni di dollari rispetto a settembre 2023 e i livelli di inventario sono stati ridotti del 6% a 1,2 miliardi di dollari.
Pool (POOL) reportó los resultados del tercer trimestre de 2024 con ventas netas de 1.4 mil millones de dólares, una disminución del 3% en comparación con el tercer trimestre de 2023. La compañía mantuvo una demanda constante de productos de mantenimiento, mientras que los segmentos de negocio discrecional enfrentaron presiones. El margen bruto se mantuvo estable en el 29.1%, mientras que el ingreso operativo disminuyó un 9% a 176.4 millones de dólares. El EPS diluido del tercer trimestre fue de 3.27 dólares, un descenso del 7% desde 3.51 dólares en 2023. La empresa mantuvo su guía de ganancias para todo el año 2024 en el rango de 11.06 - 11.46 dólares por acción diluida. La deuda total disminuyó en 110.1 millones de dólares en comparación con septiembre de 2023, y los niveles de inventario se redujeron en un 6% a 1.2 mil millones de dólares.
풀(Pool)은 2024년 3분기 결과를 발표하며 순매출 14억 달러를 기록했으며, 이는 2023년 3분기 대비 3% 감소한 수치입니다. 회사는 유지보수 제품에 대한 꾸준한 수요를 유지했지만, 선택적 사업 부문은 압박을 받았습니다. 총 이익률은 29.1%로 안정적으로 유지되었고, 운영 소득은 1억 7640만 달러로 9% 감소했습니다. 3분기 희석 주당 순이익은 3.27달러로, 2023년의 3.51달러보다 7% 하락했습니다. 회사는 2024년 전체 연도 수익 추정 범위를 희석 주당 11.06 - 11.46달러로 유지했습니다. 총 부채는 2023년 9월 대비 1억 1010만 달러 감소했으며, 재고 수준은 6% 감소하여 12억 달러에 이르렀습니다.
Pool (POOL) a publié ses résultats du troisième trimestre 2024 avec des ventes nettes de 1,4 milliard de dollars, en baisse de 3 % par rapport au troisième trimestre 2023. L'entreprise a maintenu une demande stable pour les produits d'entretien, tandis que les segments d'activités discrétionnaires ont subi des pressions. La marge brute est restée stable à 29,1 %, tandis que le revenu d'exploitation a chuté de 9 % à 176,4 millions de dollars. Le BPA dilué du troisième trimestre était de 3,27 dollars, en baisse de 7 % par rapport à 3,51 dollars en 2023. L'entreprise a maintenu ses prévisions de bénéfices pour l'année 2024 dans une fourchette de 11,06 à 11,46 dollars par action diluée. La dette totale a diminué de 110,1 millions de dollars par rapport à septembre 2023, et les niveaux d'inventaire ont été réduits de 6 % à 1,2 milliard de dollars.
Pool (POOL) hat die Ergebnisse für das 3. Quartal 2024 mit einem Nettoumsatz von 1,4 Milliarden Dollar veröffentlicht, was einem Rückgang von 3% im Vergleich zum 3. Quartal 2023 entspricht. Das Unternehmen konnte eine konstante Nachfrage nach Wartungsprodukten aufrechterhalten, während die diskretionären Geschäftsbereiche unter Druck standen. Die Bruttomarge blieb stabil bei 29,1%, während das Betriebsergebnis um 9% auf 176,4 Millionen Dollar fiel. Der verwässerte Gewinn pro Aktie im 3. Quartal betrug 3,27 Dollar, was einem Rückgang von 7% gegenüber 3,51 Dollar im Jahr 2023 entspricht. Das Unternehmen hielt seine Gewinnprognose für das gesamte Jahr 2024 im Bereich von 11,06 - 11,46 Dollar pro verwässerter Aktie aufrecht. Die Gesamtverschuldung sank um 110,1 Millionen Dollar im Vergleich zu September 2023, und die Lagerbestände wurden um 6% auf 1,2 Milliarden Dollar reduziert.
- Maintained stable gross margin at 29.1%
- Reduced total debt by $110.1 million year-over-year
- Decreased inventory levels by 6% to $1.2 billion
- Strong maintenance product sales performance
- Generated $488.6 million in operating cash flow
- Net sales declined 3% to $1.4 billion in Q3 2024
- Operating income decreased 9% to $176.4 million
- Operating margin declined to 12.3% from 13.2%
- EPS decreased 7% to $3.27
- Softness in pool construction and discretionary products sales
Insights
Pool 's Q3 results reveal concerning trends with
Key concerns include:
- Softening discretionary spending and pool construction sales
- Operating expenses growing faster than revenue at
2% - Year-to-date net income down
16%
The swimming pool industry is showing clear signs of cyclical pressure, particularly in discretionary spending. While maintenance revenues remain resilient, the decline in new pool construction signals broader consumer spending caution. The company's focus on digital transformation through Pool360 and private-label growth demonstrates strategic adaptation to market conditions.
The
Highlights
- Resilient recurring maintenance revenues contributed to Q3 2024 net sales of
$1.4 billion - Seasonal gross margin of
29.1% - Operating income of
$176.4 million and operating margin of12.3% - Q3 2024 diluted EPS of
$3.27 or$3.26 without tax benefits - Maintains annual earnings guidance range of
$11.06 -$11.46 per diluted share
______________________
COVINGTON, La., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Pool Corporation (Nasdaq/GSM:POOL) today reported results for the third quarter of 2024.
“We generated third quarter net sales of
Third quarter ended September 30, 2024 compared to the third quarter ended September 30, 2023
Net sales decreased
Gross profit decreased
Increases in our selling and administrative expenses (operating expenses) moderated during the third quarter of 2024, growing
Operating income in the third quarter of 2024 decreased
Interest and other non-operating expenses, net for the third quarter of 2024 decreased
We recorded a
Net income decreased
Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023
Net sales for the nine months ended September 30, 2024 declined
Operating expenses for the nine months ended September 30, 2024 increased
Interest and other non-operating expenses, net for the first nine months of 2024 decreased
Net income for the nine months ended September 30, 2024 decreased
Earnings per diluted share decreased
Balance Sheet and Liquidity
Total net receivables, including pledged receivables, decreased
Net cash provided by operations decreased to
Outlook
“With the 2024 swimming pool season behind us, we are maintaining our 2024 full year earnings guidance of
Non-GAAP Financial Measures
This press release contains certain non-GAAP measures (adjusted EBITDA and adjusted diluted EPS). See the addendum to this release for definitions of our non-GAAP measures and reconciliations of our non-GAAP measures to GAAP measures.
About Pool Corporation
POOLCORP is the world’s largest wholesale distributor of swimming pool and related backyard products. POOLCORP operates 447 sales centers in North America, Europe and Australia, through which it distributes more than 200,000 products to roughly 125,000 wholesale customers. For more information, please visit www.poolcorp.com.
Forward-Looking Statements
This news release includes “forward-looking” statements that involve risks and uncertainties that are generally identifiable through the use of words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “should,” “will,” “may,” and similar expressions and include projections of earnings. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date of this release, and we undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur. Actual results may differ materially due to a variety of factors, including the sensitivity of our business to weather conditions; changes in economic conditions, consumer discretionary spending, the housing market, inflation or interest rates; our ability to maintain favorable relationships with suppliers and manufacturers; the extent to which home-centric trends will continue to moderate or reverse; competition from other leisure product alternatives or mass merchants; our ability to continue to execute our growth strategies; changes in the regulatory environment; new or additional taxes, duties or tariffs; excess tax benefits or deficiencies recognized under ASU 2016-09 and other risks detailed in POOLCORP’s 2023 Annual Report on Form 10-K, 2024 Quarterly Reports on Form 10-Q and other reports and filings filed with the Securities and Exchange Commission (SEC) as updated by POOLCORP's subsequent filings with the SEC.
Investor Relations Contacts:
Kristin S. Byars
985.801.5153
kristin.byars@poolcorp.com
Curtis J. Scheel
985.801.5341
curtis.scheel@poolcorp.com
| POOL CORPORATION Consolidated Statements of Income (Unaudited) (In thousands, except per share data) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 1,432,879 | $ | 1,474,407 | $ | 4,323,474 | $ | 4,538,545 | |||||||
| Cost of sales | 1,016,476 | 1,045,676 | 3,038,370 | 3,172,276 | |||||||||||
| Gross profit | 416,403 | 428,731 | 1,285,104 | 1,366,269 | |||||||||||
| Percent | 29.1 | % | 29.1 | % | 29.7 | % | 30.1 | % | |||||||
| Selling and administrative expenses | 240,050 | 234,288 | 728,550 | 699,046 | |||||||||||
| Operating income | 176,353 | 194,443 | 556,554 | 667,223 | |||||||||||
| Percent | 12.3 | % | 13.2 | % | 12.9 | % | 14.7 | % | |||||||
| Interest and other non-operating expenses, net | 12,355 | 13,599 | 39,818 | 46,327 | |||||||||||
| Income before income taxes and equity in earnings | 163,998 | 180,844 | 516,736 | 620,896 | |||||||||||
| Provision for income taxes | 38,361 | 43,079 | 119,891 | 149,339 | |||||||||||
| Equity in earnings of unconsolidated investments, net | 64 | 78 | 180 | 235 | |||||||||||
| Net income | $ | 125,701 | $ | 137,843 | $ | 397,025 | $ | 471,792 | |||||||
| Earnings per share attributable to common stockholders: (1) | |||||||||||||||
| Basic | $ | 3.29 | $ | 3.54 | $ | 10.37 | $ | 12.09 | |||||||
| Diluted | $ | 3.27 | $ | 3.51 | $ | 10.30 | $ | 12.00 | |||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 37,983 | 38,735 | 38,104 | 38,816 | |||||||||||
| Diluted | 38,187 | 39,023 | 38,330 | 39,112 | |||||||||||
| Cash dividends declared per common share | $ | 1.20 | $ | 1.10 | $ | 3.50 | $ | 3.20 | |||||||
(1) Earnings per share under the two-class method is calculated using net income attributable to common stockholders (net income reduced by earnings allocated to participating securities), which was
| POOL CORPORATION Condensed Consolidated Balance Sheets (Unaudited) (In thousands) | |||||||||||||
| September 30, | September 30, | Change | |||||||||||
| 2024 | 2023 | $ | % | ||||||||||
| Assets | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 91,347 | $ | 85,220 | $ | 6,127 | 7 | % | |||||
| Receivables, net (1) | 119,538 | 140,997 | (21,459 | ) | (15) | ||||||||
| Receivables pledged under receivables facility | 306,155 | 320,585 | (14,430 | ) | (5) | ||||||||
| Product inventories, net (2) | 1,180,491 | 1,259,308 | (78,817 | ) | (6) | ||||||||
| Prepaid expenses and other current assets | 43,168 | 26,414 | 16,754 | 63 | |||||||||
| Total current assets | 1,740,699 | 1,832,524 | (91,825 | ) | (5) | ||||||||
| Property and equipment, net | 243,308 | 213,732 | 29,576 | 14 | |||||||||
| Goodwill | 700,147 | 699,270 | 877 | — | |||||||||
| Other intangible assets, net | 292,722 | 300,237 | (7,515 | ) | (3) | ||||||||
| Equity interest investments | 1,434 | 1,383 | 51 | 4 | |||||||||
| Operating lease assets | 309,648 | 293,673 | 15,975 | 5 | |||||||||
| Other assets | 79,431 | 89,915 | (10,484 | ) | (12) | ||||||||
| Total assets | $ | 3,367,389 | $ | 3,430,734 | $ | (63,345 | ) | (2) | % | ||||
| Liabilities and stockholders’ equity | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable | $ | 401,702 | $ | 429,436 | $ | (27,734 | ) | (6) | % | ||||
| Accrued expenses and other current liabilities | 185,118 | 157,172 | 27,946 | 18 | |||||||||
| Short-term borrowings and current portion of long-term debt | 44,683 | 37,788 | 6,895 | 18 | |||||||||
| Current operating lease liabilities | 95,412 | 84,724 | 10,688 | 13 | |||||||||
| Total current liabilities | 726,915 | 709,120 | 17,795 | 3 | |||||||||
| Deferred income taxes | 65,106 | 55,226 | 9,880 | 18 | |||||||||
| Long-term debt, net | 879,146 | 996,109 | (116,963 | ) | (12) | ||||||||
| Other long-term liabilities | 43,612 | 37,885 | 5,727 | 15 | |||||||||
| Non-current operating lease liabilities | 220,101 | 214,168 | 5,933 | 3 | |||||||||
| Total liabilities | 1,934,880 | 2,012,508 | (77,628 | ) | (4) | ||||||||
| Total stockholders’ equity | 1,432,509 | 1,418,226 | 14,283 | 1 | |||||||||
| Total liabilities and stockholders’ equity | $ | 3,367,389 | $ | 3,430,734 | $ | (63,345 | ) | (2) | % | ||||
(1) The allowance for doubtful accounts was
(2) The inventory reserve was
| POOL CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | |||||||||||||
| Nine Months Ended | |||||||||||||
| September 30, | |||||||||||||
| 2024 | 2023 | Change | |||||||||||
| Operating activities | |||||||||||||
| Net income | $ | 397,025 | $ | 471,792 | $ | (74,767 | ) | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
| Depreciation | 26,848 | 23,355 | 3,493 | ||||||||||
| Amortization | 6,514 | 6,425 | 89 | ||||||||||
| Share-based compensation | 14,391 | 14,592 | (201 | ) | |||||||||
| Equity in earnings of unconsolidated investments, net | (180 | ) | (235 | ) | 55 | ||||||||
| Goodwill impairment | — | 550 | (550 | ) | |||||||||
| Other | 3,123 | 1,157 | 1,966 | ||||||||||
| Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||||||||
| Receivables | (80,362 | ) | (110,078 | ) | 29,716 | ||||||||
| Product inventories | 181,326 | 330,850 | (149,524 | ) | |||||||||
| Prepaid expenses and other assets | 57,151 | (23,431 | ) | 80,582 | |||||||||
| Accounts payable | (109,021 | ) | 20,667 | (129,688 | ) | ||||||||
| Accrued expenses and other liabilities | (8,196 | ) | 14,374 | (22,570 | ) | ||||||||
| Net cash provided by operating activities | 488,619 | 750,018 | (261,399 | ) | |||||||||
| Investing activities | |||||||||||||
| Acquisition of businesses, net of cash acquired | (4,435 | ) | (11,500 | ) | 7,065 | ||||||||
| Purchases of property and equipment, net of sale proceeds | (45,951 | ) | (42,958 | ) | (2,993 | ) | |||||||
| Other investments, net | 944 | (48 | ) | 992 | |||||||||
| Net cash used in investing activities | (49,442 | ) | (54,506 | ) | 5,064 | ||||||||
| Financing activities | |||||||||||||
| Proceeds from revolving line of credit | 1,146,900 | 1,154,601 | (7,701 | ) | |||||||||
| Payments on revolving line of credit | (1,274,400 | ) | (1,497,501 | ) | 223,101 | ||||||||
| Payments on term loan under credit facility | (18,750 | ) | (6,250 | ) | (12,500 | ) | |||||||
| Proceeds from asset-backed financing | 623,900 | 465,500 | 158,400 | ||||||||||
| Payments on asset-backed financing | (606,300 | ) | (422,700 | ) | (183,600 | ) | |||||||
| Payments on term facility | — | (47,313 | ) | 47,313 | |||||||||
| Proceeds from short-term borrowings and current portion of long-term debt | 8,873 | 19,428 | (10,555 | ) | |||||||||
| Payments on short-term borrowings and current portion of long-term debt | (8,643 | ) | (19,182 | ) | 10,539 | ||||||||
| Payments of deferred financing costs | (1,731 | ) | (52 | ) | (1,679 | ) | |||||||
| Payments of deferred and contingent acquisition consideration | — | (551 | ) | 551 | |||||||||
| Proceeds from stock issued under share-based compensation plans | 11,955 | 9,278 | 2,677 | ||||||||||
| Payments of cash dividends | (134,181 | ) | (124,983 | ) | (9,198 | ) | |||||||
| Repurchases of common stock | (159,408 | ) | (187,110 | ) | 27,702 | ||||||||
| Net cash used in financing activities | (411,785 | ) | (656,835 | ) | 245,050 | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | (2,585 | ) | 952 | (3,537 | ) | ||||||||
| Change in cash and cash equivalents | 24,807 | 39,629 | (14,822 | ) | |||||||||
| Cash and cash equivalents at beginning of period | 66,540 | 45,591 | 20,949 | ||||||||||
| Cash and cash equivalents at end of period | $ | 91,347 | $ | 85,220 | $ | 6,127 | |||||||
ADDENDUM
Base Business
When calculating our base business results, we exclude sales centers that are acquired, opened in new markets or closed for a period of 15 months. We also exclude consolidated sales centers when we do not expect to maintain the majority of the existing business and existing sales centers that are consolidated with acquired sales centers.
We generally allocate corporate overhead expenses to excluded sales centers on the basis of their net sales as a percentage of total net sales. After 15 months, we include acquired, consolidated and new market sales centers in the base business calculation including the comparative prior year period.
We have not provided separate base business income statements within this press release as our base business results for the three and nine months ending September 30, 2024 closely approximated our consolidated results, and acquisitions and sales centers excluded from base business contributed less than
The table below summarizes the changes in our sales center count in the first nine months of 2024.
| December 31, 2023 | 439 | |
| Acquired locations | 2 | |
| New locations | 9 | |
| Consolidated/closed locations | (3 | ) |
| September 30, 2024 | 447 |
Reconciliation of Non-GAAP Financial Measures
The non-GAAP measures described below should be considered in the context of all of our other disclosures in this press release.
Adjusted EBITDA
As illustrated in detail in the reconciliation table below, we define Adjusted EBITDA as net income or net loss plus interest and other non-operating expenses, income taxes, depreciation, amortization, share-based compensation, goodwill and other impairments and equity in earnings or loss of unconsolidated investments. Other companies may calculate Adjusted EBITDA differently than we do, which may limit its usefulness as a comparative measure.
Adjusted EBITDA is not a measure of performance as determined by generally accepted accounting principles (GAAP). We believe Adjusted EBITDA should be considered in addition to, not as a substitute for, operating income or loss, net income or loss, net cash flows provided by or used in operating, investing and financing activities or other income statement or cash flow statement line items reported in accordance with GAAP.
We have included Adjusted EBITDA as a supplemental disclosure because management uses it to monitor our performance, and we believe that it is widely used by our investors, industry analysts and others as a useful supplemental performance measure. We believe that Adjusted EBITDA, when viewed with our GAAP results and the accompanying reconciliations, provides an additional measure that enables management and investors to monitor factors and trends affecting our ability to service debt, pay taxes and fund capital expenditures.
The table below presents a reconciliation of net income to Adjusted EBITDA.
| (Unaudited) | Three Months Ended | Nine Months Ended | ||||||||||||||
| (In thousands) | September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income | $ | 125,701 | $ | 137,843 | $ | 397,025 | $ | 471,792 | ||||||||
| Adjustments to increase (decrease) net income: | ||||||||||||||||
| Interest and other non-operating expenses (1) | 12,230 | 13,647 | 39,484 | 47,054 | ||||||||||||
| Provision for income taxes | 38,361 | 43,079 | 119,891 | 149,339 | ||||||||||||
| Share-based compensation | 4,047 | 4,596 | 14,391 | 14,592 | ||||||||||||
| Equity in earnings of unconsolidated investments, net | (64 | ) | (78 | ) | (180 | ) | (235 | ) | ||||||||
| Goodwill impairment | — | 550 | — | 550 | ||||||||||||
| Depreciation | 9,257 | 8,063 | 26,848 | 23,355 | ||||||||||||
| Amortization (2) | 1,963 | 2,001 | 5,854 | 5,863 | ||||||||||||
| Adjusted EBITDA | $ | 191,495 | $ | 209,701 | $ | 603,313 | $ | 712,310 | ||||||||
(1) Shown net of losses (gains) on foreign currency transactions of
(2) Excludes amortization of deferred financing costs of
Adjusted Diluted EPS
We have included adjusted diluted EPS, a non-GAAP financial measure, in this press release as a supplemental disclosure, because we believe this measure is useful to management, investors and others in assessing our period-to-period operating performance.
Adjusted diluted EPS is a key measure used by management to demonstrate the impact of tax benefits from ASU 2016-09 on our diluted EPS and to provide investors and others with additional information about our potential future operating performance to supplement GAAP measures.
We believe this measure should be considered in addition to, not as a substitute for, diluted EPS presented in accordance with GAAP, and in the context of our other disclosures in this press release. Other companies may calculate this non-GAAP financial measure differently than we do, which may limit its usefulness as a comparative measure.
The table below presents a reconciliation of diluted EPS to adjusted diluted EPS.
| (Unaudited) | Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Diluted EPS | $ | 3.27 | $ | 3.51 | $ | 10.30 | $ | 12.00 | |||||||||
| ASU 2016-09 tax benefit | (0.01 | ) | (0.01 | ) | (0.21 | ) | (0.15 | ) | |||||||||
| Adjusted diluted EPS | $ | 3.26 | $ | 3.50 | $ | 10.09 | $ | 11.85 | |||||||||
FAQ
What was Pool 's (POOL) Q3 2024 revenue?
What is Pool 's (POOL) earnings guidance for 2024?
How much did Pool 's (POOL) EPS decrease in Q3 2024?
What was Pool 's (POOL) operating margin in Q3 2024?
