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Pool Corporation Reports Record 2012 Results and Provides 2013 Earnings Guidance

Pool Corporation Reports Record 2012 Results and Provides 2013 Earnings
Guidance

Highlights include:

  *Sales growth of 9% to a record $1.95 billion
  *2012 diluted EPS of $1.71; adjusted diluted EPS up 23% to a record $1.85
  *2013 diluted EPS guidance of $2.13 to $2.23

COVINGTON, La., Feb. 14, 2013 (GLOBE NEWSWIRE) -- Pool Corporation
(Nasdaq:POOL) today announced fourth quarter and full year 2012 results.

"Solid performance in 2012 produced record results, surpassing our objectives.
We turned challenges into opportunities, and opportunities into success. Our
market share gains reflect our continued efforts to provide added value to our
customers by helping them succeed utilizing our tools, programs and resources
for their businesses and markets. At 23% adjusted EPS growth for 2012, this is
our third consecutive year of greater than 20% EPS growth," commented Manuel
Perez de la Mesa, President and CEO.

Net sales for the year ended December 31, 2012 increased 9% to a record high
of $1.95 billion, compared to $1.79 billion in 2011.Base business sales
increased 7%, including 7% growth on the swimming pool side of the business
and 10% growth on the irrigation side.Base business sales growth was driven
by market share gains, continued improvement in consumer discretionary
expenditures and some price inflation, partially offset by unfavorable
currency fluctuations of approximately 1%.

Gross profit for the year ended December31, 2012 increased 7% to
$567.4million from $531.6million in 2011.Gross profit as a percentage of
net sales (gross margin) decreased 60 basis points to 29.0% for 2012.This
decrease reflects product and customer mix changes and continued competitive
pricing pressures. Gross margin in 2012 was also comparatively lower than 2011
gross margin due to the benefits realized in 2011 from opportunistic inventory
purchases.

Selling and administrative expenses (operating expenses) for 2012 increased 3%
to $415.6million from $405.0million in 2011.Base business operating
expenses were essentially flat year over year, as decreases in employee
incentive costs, lower bad debt expense and the impact of currency
fluctuations were offset by higher professional fees and increases in wages
and employee insurance.

During the third quarter of 2012, the company recorded a non-cash goodwill
impairment charge of $6.9 million, equal to the total goodwill carrying amount
of its United Kingdom reporting unit, which had an impact of$0.14 per diluted
share.During the fourth quarter of 2011, the company recorded a non-cash
goodwill impairment charge of $1.6 million resulting from its annual goodwill
impairment analysis, which had an impact of $0.03 per diluted share.Adjusted
operating income, adjusted net income and adjusted diluted EPS for all periods
exclude goodwill impairment and are provided in this release because the
company believes these amounts are useful to investors in assessing
year-over-year operating performance.

Operating income for the year improved 16% to $144.9million from
$125.1million in 2011.Adjusted operating income for 2012 increased 20% to
$151.8 million compared to adjusted operating income for 2011 of $126.7
million.Adjusted operating income as a percentage of net sales (operating
margin) increased to 7.8% in 2012 compared to 7.1% in 2011.Net interest
expense decreased $1.5millionprimarily due to the impacts of changes in
estimated interest expense related to uncertain tax positions and foreign
currency transaction gains and losses.

Net income increased 14% to $82.0million in 2012 compared to $72.0million in
2011. Earnings per share was up 16% to $1.71 per diluted share compared to
$1.47 per diluted share in 2011.Adjusted net income for 2012 increased 21% to
$88.9 million, while adjusted diluted EPS increased 23% to a record
$1.85.Adjusted EBITDA (as defined in the addendum to this release) increased
19% to $172.9 million in 2012 compared to $145.2 million in 2011, or 8.8% of
net sales in 2012 compared to 8.1% of net sales in 2011.

On the balance sheet, total net receivables increased 4% compared to
December31, 2011 due primarily to an increase in current trade receivables as
a result of December base business sales growth and higher vendor
receivables.Inventory levels grew 3% to $400.3 million at December31, 2012
compared to $386.9 million at December31, 2011, including approximately
$4.0million in inventory from recent acquisitions.Total debt outstanding at
December31, 2012 was $230.9 million, down $16.4 million from the balance at
December31, 2011.

Cash provided by operations was $119.1 million in 2012, or $30.2 million more
than adjusted net income.Compared to 2011, cash provided by operations was up
$44.0 million due primarily to the increase in net income and improved working
capital management.

Net sales for the seasonally slow fourth quarter increased 13% to $306.8
million compared to the fourth quarter of 2011.Base business sales improved
12% in the quarter compared to the same period in 2011.Gross margin declined
90basis points to 29.0% in the fourth quarter of 2012.

Operating loss for the fourth quarter of 2012 was $10.3 million compared to a
loss of $14.3 million in the same period last year.Net interest expense
decreased $1.7 million due to the impact of the change in foreign currency
transaction gains and losses, with recognized gains of $0.4 million during the
fourth quarter of 2012 versus losses of $0.5 million during the same period in
2011, and lower interest expense on borrowings.Loss per diluted share for the
fourth quarter of 2012 was $0.17 on a net loss of $8.0 million, compared to a
loss of $0.21 per diluted share on a net loss of $10.1 million in the
comparable 2011 period.

"Our 2012 results speak volumes about the talent and commitment that exist
throughout our company.We are excited about closing the year strong and
creating significant momentum heading into 2013, which marks our 20th year as
the value added distribution company we are today.For fiscal 2013, we expect
earnings per diluted share will be approximately $2.13 to $2.23.This range
reflects our expectations for sales growth in the mid-single digits and 15% to
20% growth from adjusted 2012 diluted EPS," said Perezdela Mesa.

POOLCORP is the largest wholesale distributor of swimming pool and related
backyard products.Currently, POOLCORP operates 312 sales centers in North
America and Europe, through which it distributes more than 160,000 national
brand and private label products to roughly 80,000 wholesale customers.For
more information, please visit www.poolcorp.com.

The Pool Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4853

This news release includes "forward-looking" statements that involve risk and
uncertainties that are generally identifiable through the use of words such as
"believe," "expect," "intend," "plan," "estimate," "project" 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 the economy and the housing market, our ability to
maintain favorable relationships with suppliers and manufacturers, competition
from other leisure product alternatives and mass merchants and other risks
detailed in POOLCORP's 2011 Annual Report on Form10-K filed with the
Securities and Exchange Commission.

POOL CORPORATION
Consolidated Statements of Income
(In thousands, except per share data)
                                                              
                          Three Months Ended        Year Ended
                           December 31,              December 31,
                          2012         2011         2012         2011 ^(1)
                                                              
Net sales                  $306,818     $270,422     $1,953,974   $1,793,318
Cost of sales              217,880      189,587      1,386,567    1,261,728
Gross profit               88,938       80,835       567,407      531,590
Percent                    29.0%        29.9%        29.0%        29.6%
                                                              
Selling and administrative 99,235       93,628       415,592      404,973
expenses
Goodwill impairment        —            1,550        6,946        1,550
Operating income (loss)    (10,297)     (14,343)     144,869      125,067
Percent                    (3.4)%       (5.3)%       7.4%         7.0%
                                                              
Interest expense, net ^(2) 1,105        2,854        6,469        7,964
Income (loss) before
income taxes and equity    (11,402)     (17,197)     138,400      117,103
earnings
Provision for income taxes (3,276)      (7,058)      56,744       45,319
Equity earnings in         129          24           316          209
unconsolidated investments
Net income (loss)          $(7,997)     $(10,115)    $81,972      $71,993
                                                              
Earnings (loss) per share:                                     
Basic                      $(0.17)      $(0.21)      $1.75        $1.49
Diluted                    $(0.17)      $(0.21)      $1.71        $1.47
Weighted average shares                                        
outstanding:
Basic                      46,522       47,568       46,937       48,158
Diluted                    46,522       47,568       48,058       48,987
                                                              
Cash dividends declared    $0.16        $0.14        $0.62        $0.55
per common share
_________________                                              
                                                              
^(1)^ Derived from audited financial statements.
                                                              
^(2)^ Interest expense, net includes realized foreign currency transaction
gains of $0.4 million for the quarter and $0.1 million for the year ended
December31, 2012, and foreign currency transaction losses of $0.5 million for
the quarter and $0.6 million for the year ended December31, 2011.


POOL CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
                                                                    
                                 December 31,  December 31,  Change    
                                 2012          2011 ^(1)     $         %
                                                                    
Assets                                                               
Current assets:                                                      
Cash and cash equivalents         $12,463       $17,487       $(5,024)  (29)%
Receivables, net ^(2)             113,859       109,273       4,586     4
Product inventories, net ^(3)     400,308       386,924       13,384    3
Prepaid expenses and other        11,280        11,298        (18)      —
current assets
Deferred income taxes             5,186         7,084         (1,898)   (27)
Total current assets              543,096       532,066       11,030    2
                                                                    
Property and equipment, net       46,566        41,394        5,172     12
Goodwill                          169,983       177,103       (7,120)   (4)
Other intangible assets, net      11,053        11,738        (685)     (6)
Equity interest investments       1,160         980           180       18
Other assets, net                 8,718         7,621         1,097     14
Total assets                      $780,576      $770,902      $9,674    1%
                                                                    
Liabilities and stockholders'                                        
equity
Current liabilities:                                                 
Accounts payable                  $199,787      $177,437      $22,350   13%
Accrued expenses and other        48,186        49,140        (954)     (2)
current liabilities
Current portion of long-term debt 23            22            1         5
and other long-term liabilities
Total current liabilities         247,996       226,599       21,397    9
                                                                    
Deferred income taxes             13,453        9,531         3,922     41
Long-term debt                    230,882       247,300       (16,418)  (7)
Other long-term liabilities       6,622         7,726         (1,104)   (14)
Total liabilities                 498,953       491,156       7,797     2
Total stockholders' equity        281,623       279,746       1,877     1
Total liabilities and             $780,576      $770,902      $9,674    1%
stockholders' equity
_________________                                                   

^(1)^ Derived from audited financial statements.
^(2)^ The allowance for doubtful accounts was $5.5 million at December31,
2012 and $5.9 million at December31, 2011.
^(3)^ The inventory reserve was $7.5 million at December31, 2012 and $7.1
million at December31, 2011.


POOL CORPORATION
Condensed Consolidated Statements of Cash Flows
(In thousands)
                                                                  
                                                Year Ended          
                                                 December 31,
                                                2012      2011 ^(1) Change
Operating activities                                               
Net income                                       $81,972   $71,993   $9,979
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation                                     11,592    9,746     1,846
Amortization                                     1,284     1,559     (275)
Share-based compensation                         8,465     8,233     232
Excess tax benefits from share-based             (4,487)   (3,118)   (1,369)
compensation
Equity earnings in unconsolidated investments    (316)     (209)     (107)
(Gains) losses on foreign currency transactions  (111)     592       (703)
Goodwill impairment                              6,946     1,550     5,396
Other                                            3,375     1,850     1,525
Changes in operating assets and liabilities, net of effects of       
acquisitions:
Receivables                                      (3,396)   (5,887)   2,491
Product inventories                              (9,232)   (35,339)  26,107
Prepaid expenses and other assets                (1,159)   (2,951)   1,792
Accounts payable                                 20,253    6,402     13,851
Accrued expenses and other current liabilities   3,892     20,682    (16,790)
Net cash provided by operating activities        119,078   75,103    43,975
                                                                  
Investing activities                                               
Acquisition of businesses, net of cash acquired  (4,699)   (5,934)   1,235
Purchase of property and equipment, net of sale  (16,271)  (19,454)  3,183
proceeds
Other investments                                (238)     (190)     (48)
Net cash used in investing activities            (21,208)  (25,578)  4,370
                                                                  
Financing activities                                               
Proceeds from revolving line of credit           607,923   749,349   (141,426)
Payments on revolving line of credit             (524,341) (700,749) 176,408
Payments on long-term debt and other long-term   (100,022) (149)     (99,873)
liabilities
Payments of deferred acquisition consideration   —         (500)     500
Payments of deferred financing costs             —         (1,674)   1,674
Excess tax benefits from share-based             4,487     3,118     1,369
compensation
Proceeds from stock issued under share-based     20,205    13,085    7,120
compensation plans
Payments of cash dividends                       (29,135)  (26,470)  (2,665)
Purchases of treasury stock                      (81,761)  (76,564)  (5,197)
Net cash used in financing activities            (102,644) (40,554)  (62,090)
Effect of exchange rate changes on cash and cash (250)     (1,205)   955
equivalents
Change in cash and cash equivalents              (5,024)   7,766     (12,790)
Cash and cash equivalents at beginning of period 17,487    9,721     7,766
Cash and cash equivalents at end of period       $12,463   $17,487   $(5,024)
_________________                                                 
                                                                  
^(1)^ Derived from audited financial                              
statements.

ADDENDUM

Base Business

The following table breaks out our consolidated results into the base business
component and the excluded components (sales centers excluded from base
business):

(Unaudited)       Base Business         Excluded        Total
                   Three Months Ended    Three Months    Three Months Ended
(in thousands)     December 31,          Ended           December 31,
                                         December 31,
                  2012       2011       2012    2011    2012       2011
Net sales          $301,370   $270,108   $5,448  $314    $306,818   $270,422
                                                              
Gross profit       87,943     80,712     995     123     88,938     80,835
Gross margin       29.2%      29.9%      18.3%   39.2%   29.0%      29.9%
                                                              
Operating expenses 96,700     93,307     2,535   321     99,235     93,628
Expenses as a % of 32.1%      34.5%      46.5%   102.2%  32.3%      34.6%
net sales
                                                              
Goodwill           —          1,550      —       —       —          1,550
impairment
                                                              
Operating loss     (8,757)    (14,145)   (1,540) (198)   (10,297)   (14,343)
Operating margin   (2.9)%     (5.2)%     (28.3)% (63.1)% (3.4)%     (5.3)%
                                                              
                                                              
(Unaudited)       Base Business         Excluded        Total
(in thousands)     Year Ended            Year Ended      Year Ended
                   December 31,          December 31,    December 31,
                  2012       2011       2012    2011    2012       2011
Net sales          $1,910,333 $1,787,800 $43,641 $5,518  $1,953,974 $1,793,318
                                                              
Gross profit       555,493    530,002    11,914  1,588   567,407    531,590
Gross margin       29.1%      29.6%      27.3%   28.8%   29.0%      29.6%
                                                              
Operating expenses 401,897    402,709    13,695  2,264   415,592    404,973
Expenses as a % of 21.0%      22.5%      31.4%   41.0%   21.3%      22.6%
net sales
                                                              
Goodwill           6,946      1,550      —       —       6,946      1,550
impairment
                                                              
Operating income   146,650    125,743    (1,781) (676)   144,869    125,067
(loss)
Operating margin   7.7%       7.0%       (4.1)%  (12.3)% 7.4%       7.0%
                                                              

We have excluded the following acquisitions from base business for the periods
identified:

                                      Net
Acquired ^(1)           Acquisition   Sales    Periods
                        Date          Centers  Excluded
                                      Acquired
CCR Distribution        March 2012    1        March–December 2012
Ideal Distributors Ltd. February 2012 4        February–December 2012
G.L. Cornell Company    December 2011 1        January–December 2012 and
                                               December 2011
Poolway                 November 2011 1        January–December 2012 and
Schwimmbadtechnik GmbH                         November–December 2011
The Kilpatrick Company, May 2011      4        January–July 2012 andMay–July
Inc.                                           2011
Turf Equipment Supply   December 2010 3        January–February 2012 and
Co.                                            January–February 2011
Pool Boat and Leisure,  December 2010 1        January–February 2012 and
S.A.                                           January–February 2011
^(1)We acquired certain distribution         
assets of each of these companies.

We exclude sales centers that are acquired, closed or opened in new markets
from base business results 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.There were four sales centers opened in new markets
that were excluded from base business as of December31, 2012.

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 of operations, we include acquired, consolidated and new market sales
centers in the base business calculation including the comparative prior year
period.

The table below summarizes the changes in our sales centers during 2012:

  December31, 2011  298
  Acquired           5
  New locations      9
  December31, 2012  312

Adjusted EBITDA

We define Adjusted EBITDA as net income or net loss plus interest expense,
income taxes, depreciation, amortization, share‑based compensation, goodwill
and other non-cash impairments and equity earnings or losses in unconsolidated
investments.Adjusted EBITDA is not a measure of cash flow or liquidity as
determined by generally accepted accounting principles (GAAP).We have
included Adjusted EBITDA as a supplemental disclosure because we believe that
it is widely used by our investors, industry analysts and others as a useful
supplemental liquidity measure in conjunction with cash flows provided by or
usedin operating activities to help investors understand our ability to
provide cash flows to fund growth, service debt and pay dividends as well as
compare our cash flow generating capacity from year to year.

We believe Adjusted EBITDA should be considered in addition to, not as a
substitute for, operating income or loss, net income or loss, 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.Other companies may calculate Adjusted EBITDA differently than we do,
which may limit its usefulness as a comparative measure.

The table below presents a reconciliation of net income to Adjusted EBITDA.

(Unaudited)                                Year Ended December 31,
(in thousands)                             2012               2011
                                                            
Net income                                 $81,972            $71,993
Add:                                                         
Interest expense ^(1)                      6,580              7,372
Provision for income taxes                 56,744             45,319
Share-based compensation                   8,465              8,233
Goodwill impairment                        6,946              1,550
Equity earnings in unconsolidated          (316)              (209)
investments
Depreciation                               11,592             9,746
Amortization ^(2)                          896                1,234
Adjusted EBITDA                            $172,879           $145,238
                                                            
^(1)Shown net of interest income and includes amortization of deferred
financing costs as discussed below.
^(2)Excludes amortization of deferred financing costs of $388 for 2012 and
$325 for 2011.This non-cash expense is included in Interest expense, net on
the Consolidated Statements of Income.

The table below presents a reconciliation of Adjusted EBITDA to net cash
provided by operating activities.Please see page 5 for our Condensed
Consolidated Statements of Cash Flows.

                                                 
(Unaudited)                                       Year Ended December 31,
(in thousands)                                    2012        2011
                                                            
Adjusted EBITDA                                   $172,879    $145,238
Add:                                                         
Interest expense, net of interest income          (6,192)     (7,047)
Provision for income taxes                        (56,744)    (45,319)
(Gains) losses on foreign currency transactions   (111)       592
Excess tax benefits from share-based compensation (4,487)     (3,118)
Other                                             3,375       1,850
Change in operating assets and liabilities        10,358      (17,093)
Net cash provided by operating activities         $119,078    $75,103

CONTACT: Craig K. Hubbard
         985.801.5117
         craig.hubbard@poolcorp.com

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