Tue, Apr 29, 3:20 PM (14 days ago)
**Pool Corporation (POOL) Q1 2025 Financial Summary** **Revenue and Profit Margins:** - **Net Sales:** $1,071,526,000 (down 4% YoY) - **Gross Profit:** $312,369,000 (down 8% YoY) - **Gross Margin:** 29.2% (down 100 basis points YoY) - **Operating Income:** $77,538,000 (down 29% YoY) - **Operating Margin:** 7.2% (down 250 basis points YoY) - **Net Income:** $53,545,000 (down 32% YoY) - **Earnings per Share (EPS):** $1.42 (down 30% YoY) **Cash Flow:** - **Net Cash Provided by Operating Activities:** $27,224,000 (down 81.9% YoY) - **Net Cash Used in Investing Activities:** $13,561,000 (down 28.5% YoY) - **Net Cash Used in Financing Activities:** $20,611,000 (down 83.4% YoY) **Earnings Changes:** - **EPS Decrease:** 30% YoY - **Net Income Decrease:** 32% YoY **Quarterly Performance Discussion:** - **Sales Decline:** 4% YoY, with a 2% decline on a same-selling day basis. - **Gross Margin Impact:** Affected by a non-recurring reversal of import taxes in Q1 2024. - **Operating Expenses:** Increased by 2% YoY, partially offset by variable cost management. - **Tax Benefits:** Recorded $3.8 million from ASU 2016-09 in Q1 2025. **Trends and Uncertainties:** - **Weather Impact:** Mixed weather conditions affected early-season sales. - **Market Conditions:** Discretionary projects remained pressured, but maintenance-related sales supported overall performance. - **Future Outlook:** Expects flat to slightly positive sales for 2025, with efforts to optimize pricing and supply chain initiatives. **Future Operations Impact:** - **Capital Expenditures:** Projected at 1.0% to 1.5% of net sales for 2025. - **Share Repurchases:** $290.8 million remaining under the current share repurchase program. - **Debt Management:** Compliance with financial covenants and adequate liquidity for operations. **Financial Health:** - **Total Debt:** $1,025,090,000 (up 4.7% YoY) - **Total Assets:** $3,712,449,000 (down 1.2% YoY) - **Total Liabilities:** $2,473,758,000 (up 2.5% YoY) - **Stockholders' Equity:** $1,238,691,000 (down 7.9% YoY) **Segment Information:** - **Single Reportable Segment:** All sales centers aggregated due to similar operations and economic characteristics. **Conclusion:** Pool Corporation faced challenges in Q1 2025 with declining sales and margins, impacted by weather conditions and market pressures. The company is focusing on cost management, strategic pricing, and supply chain initiatives to mitigate these headwinds and expects a modest improvement in sales for the full year. Adequate liquidity and compliance with financial covenants support ongoing operations and future growth initiatives.