Pool Corporation Reports Year End and Fourth Quarter 2024 Results; Provides 2025 Earnings Guidance
Rhea-AI Summary
Pool (POOL) reported its 2024 full-year and fourth quarter results, with annual net sales of $5.3 billion, down 4% from 2023. The company maintained a solid operating margin of 11.6% with operating income of $617.2 million. Net cash provided by operations was $659.2 million, representing 152% of net income.
The company's 2024 diluted EPS was $11.30 ($11.07 excluding tax benefits), showing a 15% decrease from 2023. Maintenance activities remained stable, while discretionary spending was softer due to macroeconomic conditions. The company expanded its network with 10 new locations and 2 acquisitions, reaching 448 worldwide locations.
Looking ahead, Pool provided 2025 diluted EPS guidance of $11.08-$11.58, including an estimated $0.08 tax benefit. The company returned $483.4 million to shareholders through dividends and share repurchases in 2024.
Positive
- Strong operating cash flow of $659.2 million, 152% of net income
- Network expansion with 12 new locations (10 greenfield, 2 acquisitions)
- Reduced inventory levels by 6% to $1.3 billion
- Lowered total debt by $103.0 million to $950.4 million
- Returned $483.4 million to shareholders via dividends and buybacks
Negative
- Net sales decreased 4% to $5.3 billion
- Operating income declined 17% to $617.2 million
- Operating margin decreased 190 basis points to 11.6%
- Net income declined 17% to $434.3 million
- Diluted EPS decreased 15% to $11.30
News Market Reaction 1 Alert
On the day this news was published, POOL gained 1.01%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Highlights include:
- Annual net sales of
$5.3 billion , anchored by a consistent stream of recurring maintenance product sales - Operating income of
$617.2 million , maintaining a solid operating margin of11.6% - Net cash provided by operations of
$659.2 million , or152% of net income - 2024 diluted EPS of
$11.30 , or$11.07 without tax benefits - 2025 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) today announced full year and fourth quarter 2024 results.
“Our results in 2024 highlight the strength of our business model in a pressured macroenvironment. Strategic execution in our growth initiatives allowed us to achieve net sales of
Year ended December 31, 2024 compared to the year ended December 31, 2023
Net sales decreased
Gross profit was
Selling and administrative expenses (operating expenses) increased
Operating income for the year decreased
Interest and other non-operating expenses, net for the year was reduced by
We recorded an
Net income declined
Adjusted EBITDA decreased
Balance Sheet and Liquidity
On the balance sheet at December 31, 2024, we ended the year with days sales outstanding ratio of 26.3, as calculated on a trailing four quarters basis, down from 26.8 days at December 31, 2023. We reduced our inventory levels
Net cash provided by operations was
Fourth quarter ended December 31, 2024 compared to the fourth quarter ended December 31, 2023
Net sales decreased
Gross profit decreased
Operating expenses increased
Operating income in the fourth quarter of 2024 decreased
Interest and other non-operating expenses, net was reduced by
We recorded a
2025 Outlook
“The dedication, hard work and collaboration of the POOLCORP team have been instrumental in our success this year. Moving into 2025, we remain encouraged by stable home values, a resilient consumer and continuing favorable industry trends, and are excited for the new products and services that our team has worked hard to make available in the marketplace. Our expansive, integrated sales center network allows us to provide a broad variety of products quickly and efficiently and unmatched customer resources and business support. With the help of our longstanding vendor partnerships, talented team and industry-leading technology solutions, we believe we are well positioned to capitalize on the opportunities available, while continuing to provide a superior customer experience. We expect earnings for 2025 to be in the range of
We estimate that we have approximately
Non-GAAP Financial Measures
This press release contains certain non-GAAP measures (adjusted EBITDA, adjusted diluted EPS and projected 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. As of December 31, 2024, POOLCORP operated 448 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,” “outlook,” and other words 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 favorable consumer spending trends over the past several years will continue; 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 | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 (1) | ||||||||||||
| Net sales | $ | 987,480 | $ | 1,003,050 | $ | 5,310,953 | $ | 5,541,595 | |||||||
| Cost of sales | 697,236 | 709,275 | 3,735,606 | 3,881,551 | |||||||||||
| Gross profit | 290,244 | 293,775 | 1,575,347 | 1,660,044 | |||||||||||
| Percent | 29.4 | % | 29.3 | % | 29.7 | % | 30.0 | % | |||||||
| Selling and administrative expenses | 229,593 | 214,431 | 958,143 | 913,477 | |||||||||||
| Operating income | 60,651 | 79,344 | 617,204 | 746,567 | |||||||||||
| Percent | 6.1 | % | 7.9 | % | 11.6 | % | 13.5 | % | |||||||
| Interest and other non-operating expenses, net | 10,433 | 12,104 | 50,250 | 58,431 | |||||||||||
| Income before income taxes and equity in earnings | 50,218 | 67,240 | 566,954 | 688,136 | |||||||||||
| Provision for income taxes | 12,945 | 15,745 | 132,836 | 165,084 | |||||||||||
| Equity in earnings (loss) of unconsolidated investments, net | 27 | (58 | ) | 207 | 177 | ||||||||||
| Net income | $ | 37,300 | $ | 51,437 | $ | 434,325 | $ | 523,229 | |||||||
| Earnings per share attributable to common stockholders:(2) | |||||||||||||||
| Basic | $ | 0.98 | $ | 1.33 | $ | 11.37 | $ | 13.45 | |||||||
| Diluted | $ | 0.98 | $ | 1.32 | $ | 11.30 | $ | 13.35 | |||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 37,718 | 38,372 | 38,007 | 38,704 | |||||||||||
| Diluted | 37,922 | 38,648 | 38,228 | 38,997 | |||||||||||
| Cash dividends declared per common share | $ | 1.20 | $ | 1.10 | $ | 4.70 | $ | 4.30 | |||||||
| (1) | Derived from audited financial statements. |
| (2) | 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) | |||||||||||||
| December 31, | December 31, | Change | |||||||||||
| 2024 | 2023 (1) | $ | % | ||||||||||
| Assets | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 77,862 | $ | 66,540 | $ | 11,322 | 17 | % | |||||
| Receivables, net (2) | 115,835 | 145,723 | (29,888 | ) | (21 | ) | |||||||
| Receivables pledged under receivables facility | 199,026 | 197,187 | 1,839 | 1 | |||||||||
| Product inventories, net (3) | 1,289,300 | 1,365,466 | (76,166 | ) | (6 | ) | |||||||
| Prepaid expenses and other current assets | 47,091 | 40,444 | 6,647 | 16 | |||||||||
| Total current assets | 1,729,114 | 1,815,360 | (86,246 | ) | (5 | ) | |||||||
| Property and equipment, net | 251,324 | 223,929 | 27,395 | 12 | |||||||||
| Goodwill | 698,910 | 700,078 | (1,168 | ) | — | ||||||||
| Other intangible assets, net | 290,732 | 298,282 | (7,550 | ) | (3 | ) | |||||||
| Equity interest investments | 1,439 | 1,305 | 134 | 10 | |||||||||
| Operating lease assets | 314,853 | 305,688 | 9,165 | 3 | |||||||||
| Other assets | 81,812 | 83,426 | (1,614 | ) | (2 | ) | |||||||
| Total assets | $ | 3,368,184 | $ | 3,428,068 | $ | (59,884 | ) | (2)% | |||||
| Liabilities and stockholders’ equity | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable | $ | 525,235 | $ | 508,672 | $ | 16,563 | 3 | % | |||||
| Accrued expenses and other current liabilities | 171,194 | 134,676 | 36,518 | 27 | |||||||||
| Short-term borrowings and current portion of long-term debt | 49,473 | 38,203 | 11,270 | 30 | |||||||||
| Current operating lease liabilities | 98,284 | 89,215 | 9,069 | 10 | |||||||||
| Total current liabilities | 844,186 | 770,766 | 73,420 | 10 | |||||||||
| Deferred income taxes | 81,408 | 67,421 | 13,987 | 21 | |||||||||
| Long-term debt, net | 900,883 | 1,015,117 | (114,234 | ) | (11 | ) | |||||||
| Other long-term liabilities | 44,959 | 40,028 | 4,931 | 12 | |||||||||
| Non-current operating lease liabilities | 223,283 | 221,949 | 1,334 | 1 | |||||||||
| Total liabilities | 2,094,719 | 2,115,281 | (20,562 | ) | (1 | ) | |||||||
| Total stockholders’ equity | 1,273,465 | 1,312,787 | (39,322 | ) | (3 | ) | |||||||
| Total liabilities and stockholders’ equity | $ | 3,368,184 | $ | 3,428,068 | $ | (59,884 | ) | (2)% | |||||
| (1) | Derived from audited financial statements. |
| (2) | The allowance for doubtful accounts was |
| (3) | The inventory reserve was |
| POOL CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | ||||||||||||
| Year Ended | ||||||||||||
| December 31, | ||||||||||||
| 2024 | 2023 (1) | Change | ||||||||||
| Operating activities | ||||||||||||
| Net income | $ | 434,325 | $ | 523,229 | $ | (88,904 | ) | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation | 36,784 | 31,585 | 5,199 | |||||||||
| Amortization | 8,697 | 8,555 | 142 | |||||||||
| Share-based compensation | 19,248 | 19,582 | (334 | ) | ||||||||
| Equity in earnings of unconsolidated investments, net | (207 | ) | (177 | ) | (30 | ) | ||||||
| Net loss (gain) on foreign currency transactions | 218 | (813 | ) | 1,031 | ||||||||
| Goodwill impairment | — | 550 | (550 | ) | ||||||||
| Other | 13,775 | 14,369 | (594 | ) | ||||||||
| Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||||||
| Receivables | 29,146 | 10,108 | 19,038 | |||||||||
| Product inventories | 66,201 | 231,240 | (165,039 | ) | ||||||||
| Prepaid expenses and other assets | 75,122 | 57,840 | 17,282 | |||||||||
| Accounts payable | 14,429 | 96,128 | (81,699 | ) | ||||||||
| Accrued expenses and other liabilities | (38,552 | ) | (103,967 | ) | 65,415 | |||||||
| Net cash provided by operating activities | 659,186 | 888,229 | (229,043 | ) | ||||||||
| Investing activities | ||||||||||||
| Acquisition of businesses, net of cash acquired | (4,692 | ) | (11,533 | ) | 6,841 | |||||||
| Purchase of property and equipment, net of sale proceeds | (59,476 | ) | (60,096 | ) | 620 | |||||||
| Other investments, net | (2,001 | ) | 32 | (2,033 | ) | |||||||
| Net cash used in investing activities | (66,169 | ) | (71,597 | ) | 5,428 | |||||||
| Financing activities | ||||||||||||
| Proceeds from revolving line of credit | 1,517,800 | 1,548,618 | (30,818 | ) | ||||||||
| Payments on revolving line of credit | (1,575,700 | ) | (1,815,829 | ) | 240,129 | |||||||
| Payments on term loan under credit facility | (25,000 | ) | (12,500 | ) | (12,500 | ) | ||||||
| Proceeds from asset-backed financing | 727,000 | 552,500 | 174,500 | |||||||||
| Payments on asset-backed financing | (744,600 | ) | (560,300 | ) | (184,300 | ) | ||||||
| Payments on term facility | — | (47,313 | ) | 47,313 | ||||||||
| Proceeds from short-term borrowings and current portion of long-term debt | 8,873 | 19,998 | (11,125 | ) | ||||||||
| Payments on short-term borrowings and current portion of long-term debt | (10,103 | ) | (19,338 | ) | 9,235 | |||||||
| Payments of deferred acquisition consideration | — | (551 | ) | 551 | ||||||||
| Payments of deferred financing costs | (2,077 | ) | (52 | ) | (2,025 | ) | ||||||
| Proceeds from stock issued under share-based compensation plans | 13,190 | 10,455 | 2,735 | |||||||||
| Payments of cash dividends | (179,633 | ) | (167,461 | ) | (12,172 | ) | ||||||
| Repurchases of common stock and payments of excise tax | (306,300 | ) | (306,359 | ) | 59 | |||||||
| Net cash used in financing activities | (576,550 | ) | (798,132 | ) | 221,582 | |||||||
| Effect of exchange rate changes on cash and cash equivalents | (5,145 | ) | 2,449 | (7,594 | ) | |||||||
| Change in cash and cash equivalents | 11,322 | 20,949 | (9,627 | ) | ||||||||
| Cash and cash equivalents at beginning of period | 66,540 | 45,591 | 20,949 | |||||||||
| Cash and cash equivalents at end of period | $ | 77,862 | $ | 66,540 | $ | 11,322 | ||||||
| (1) | Derived from audited financial statements. |
ADDENDUM
Base Business
When calculating our base business results, we exclude for a period of 15 months sales centers that are acquired, opened in new markets or closed. 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 quarter and year ended December 31, 2024 closely approximated our consolidated results for the same periods, and acquisitions and sales centers excluded from base business contributed less than
The table below summarizes the changes in our sales centers during 2024.
| December 31, 2023 | 439 | |
| Acquired locations | 2 | |
| New locations | 10 | |
| Consolidated/closed locations | (3 | ) |
| December 31, 2024 | 448 | |
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) | Year Ended December 31, | |||||||
| (In thousands) | 2024 | 2023 | ||||||
| Net income | $ | 434,325 | $ | 523,229 | ||||
| Adjustments to increase (decrease) net income: | ||||||||
| Interest and other non-operating expenses(1) | 50,032 | 59,244 | ||||||
| Provision for income taxes | 132,836 | 165,084 | ||||||
| Share-based compensation | 19,248 | 19,582 | ||||||
| Equity in earnings of unconsolidated investments, net | (207 | ) | (177 | ) | ||||
| Goodwill impairment | — | 550 | ||||||
| Depreciation | 36,784 | 31,585 | ||||||
| Amortization(2) | 7,838 | 7,824 | ||||||
| Adjusted EBITDA | $ | 680,856 | $ | 806,921 | ||||
| (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-over-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.
| Three Months Ended | Year Ended | ||||||||||
| (Unaudited) | December 31, | December 31, | |||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Diluted EPS | $ | 0.98 | $ | 1.32 | $ | 11.30 | $ | 13.35 | |||
| Less: ASU 2016-09 tax benefit | 0.01 | 0.02 | 0.23 | 0.17 | |||||||
| Adjusted diluted EPS | $ | 0.97 | $ | 1.30 | $ | 11.07 | $ | 13.18 | |||
FAQ
What is Pool 's (POOL) revenue guidance for 2025?
How much did POOL's net sales decline in 2024?
What was Pool 's (POOL) dividend and share repurchase total in 2024?
How many new locations did POOL add in 2024?
What was POOL's operating margin in 2024?
