Pool Corporation Reports First Quarter Results and Affirms 2013 Earnings Guidance of $2.13 to $2.23

Pool Corporation Reports First Quarter Results and Affirms 2013 Earnings
Guidance of $2.13 to $2.23

COVINGTON, La., April 18, 2013 (GLOBE NEWSWIRE) -- Pool Corporation
(Nasdaq:POOL) today reported results for the first quarter of 2013.

"As anticipated, 2013 started with a more normalized onset to the season
versus 2012, which impacted both sales and margins. We realized sales growth
despite one less selling day and the tough comparison, given last year's
unusually mild winter. We were also able to maintain good pricing discipline
and expense management," said Manuel Perez de la Mesa, President and CEO.

Net sales for the quarter ended March 31, 2013 increased 2% to $370.4 million,
compared to $362.0 million in the first quarter of 2012. Sales in the first
quarter of last year benefited from record warm temperatures across the
Northeast and Midwest, which prompted an earlier than normal start to the 2012
season. This shift contributed to sales growth of 16% in the first quarter of
2012 over the first quarter of 2011. Base business sales were up 2% in the
first three months of 2013. The impact of weather on our first quarter results
is evidenced by growth of approximately 10% in our largest year-round markets
while our more seasonal markets experienced declines of close to 10%. Sales on
the irrigation side of the business were up 14% due in part to the gradual
recovery of the housing market in some of our key states.

Gross profit for the first quarter of 2013 was essentially flat at $104.8
million. Gross profit as a percentage of net sales (gross margin) declined 60
basis points to 28.3% in the first quarter of 2013. This decrease is primarily
due to unfavorable product mix as well as competitive pricing pressures. As a
result of the slower start to the 2013 season, geographic regions with
generally higher margins experienced a proportionally smaller share of our
total sales.

Selling and administrative expenses (operating expenses) decreased 1% to $97.8
million in the first quarter of 2013 compared to the same period in 2012.Base
business operating expenses were flat compared to the first quarter of 2012.

Operating income for the quarter increased 15% to $6.9 million compared to
2012. Operating income as a percentage of net sales (operating margin) was
1.9% for the first quarter of 2013 compared to 1.7% in the same period in
2012.

Net income decreased 6% to $3.4 millionin the first quarter of 2013, compared
to $3.7 million for the first quarter of 2012.Our provision for income taxes
for the first three months of 2013 included a benefit of $0.2 million related
to the temporary lapse in 2012 of the controlled foreign corporation income
exclusion. Comparatively, our provision for income taxes for the same period
in 2012 included a benefit of approximately $0.7 million related to the
expiration of statutes of limitations for income tax returns filed in the
first quarter of 2009.

Earnings per share was down $0.01 to $0.07 per diluted share for the first
three months of 2013 versus $0.08 per diluted share for the same period in
2012.

On the balance sheet, total net receivables decreased 6% due primarily to the
decline in net sales growth, while inventory levels were up 7% in anticipation
of the upcoming season.Total debt outstanding at March31, 2013 was $278.5
million, down $20.5 million compared to March31, 2012.

The seasonal use of cash in operations was $40.0 million in the first three
months of 2013 compared to $34.0 millionin the first three months of
2012.Adjusted EBITDA (as defined in the addendum to this release) was $12.1
million in the first quarter of 2013 compared to $11.0 million in comparable
2012 period.

"Business is moving along as expected, with no significant changes in factors
considered in our guidance.We confirm our 2013 annual earnings guidance of
$2.13 to $2.23 per diluted share.The investments that we continue to make to
further increase value to both our customers and our suppliers demonstrate our
commitment to them and our confidence in the future growth of our industry.We
are looking forward to the heart of the season, when we will really
distinguish ourselves as a company," said PerezdelaMesa.

POOLCORP is the largest wholesale distributor of swimming pool and related
backyard products.Currently, POOLCORP operates 318 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.

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 2012 Annual Report on Form10-K filed with the
Securities and Exchange Commission.


POOL CORPORATION
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)

                                              Three Months Ended
                                              March 31,
                                              2013      2012
                                                       
Net sales                                      $ 370,362 $ 361,954
Cost of sales                                  265,601   257,391
Gross profit                                   104,761   104,563
Percent                                        28.3%     28.9%
                                                       
Selling and administrative expenses            97,829    98,542
Operating income                               6,932     6,021
Percent                                        1.9%      1.7%
                                                       
Interest expense, net                          1,614     1,477
Income before income taxes and equity earnings 5,318     4,544
Provision for income taxes                     1,896     1,037
Equity earnings in unconsolidated investments  18        144
Net income                                     $ 3,440   $ 3,651
                                                       
Earnings per share:                                     
Basic                                          $ 0.07    $ 0.08
Diluted                                        $ 0.07    $ 0.08
Weighted average shares outstanding:                    
Basic                                          46,385    47,519
Diluted                                        47,580    48,598
                                                       
Cash dividends declared per common share       $ 0.16    $ 0.14



POOL CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)

                                      March 31,  March 31,  Change
                                      2013       2012       $          %
                                                                    
Assets                                                               
Current assets:                                                      
Cash and cash equivalents              $ 12,873   $ 20,681   $ (7,808)  (38)%
Receivables, net                       188,294    200,640    (12,346)   (6)
Product inventories, net               494,321    462,810    31,511     7
Prepaid expenses and other current     13,029     12,590     439        3
assets
Deferred income taxes                  5,153      7,078      (1,925)    (27)
Total current assets                   713,670    703,799    9,871      1
                                                                    
Property and equipment, net            48,755     45,355     3,400      7
Goodwill                               169,983    177,103    (7,120)    (4)
Other intangible assets, net           10,793     11,717     (924)      (8)
Equity interest investments            1,179      1,099      80         7
Other assets, net                      9,360      7,735      1,625      21
Total assets                           $ 953,740  $ 946,808  $ 6,932    1%
                                                                    
Liabilities and stockholders' equity                                 
Current liabilities:                                                 
Accounts payable                       $ 338,026  $ 319,462  $ 18,564   6%
Accrued expenses and other current     30,413     30,111     302        1
liabilities
Current portion of long-term debt and  21         23         (2)        (9)
other long-term liabilities
Total current liabilities              368,460    349,596    18,864     5
                                                                    
Deferred income taxes                  14,207     9,629      4,578      48
Long-term debt                         278,542    299,011    (20,469)   (7)
Other long-term liabilities            7,549      7,006      543        8
Total liabilities                      668,758    665,242    3,516      1
Total stockholders' equity             284,982    281,566    3,416      1
Total liabilities and stockholders'    $ 953,740  $ 946,808  $ 6,932    1%
equity
                                                                    
1.The allowance for doubtful accounts was $5.4 million at March31, 2013 and
$5.8 million atMarch31, 2012.
2.The inventory reserve was $8.5 million at March31, 2013 and $8.6 million
at March31, 2012.



POOL CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

                                                Three Months Ended  
                                                March 31,           
                                                2013      2012      Change
Operating activities                                               
Net income                                       $ 3,440   $ 3,651   $ (211)
Adjustments to reconcile net income to net cash                    
used in operating activities:
Depreciation                                     3,073     2,664     409
Amortization                                     321       320       1
Share-based compensation                         1,905     2,101     (196)
Excess tax benefits from share-based             (1,703)   (1,138)   (565)
compensation
Equity earnings in unconsolidated investments    (18)      (144)     126
Other                                            (38)      941       (979)
Changes in operating assets and liabilities, net                   
of effects of acquisitions:
Receivables                                      (74,283)  (90,350)  16,067
Product inventories                              (94,786)  (72,788)  (21,998)
Prepaid expenses and other assets                (2,461)   (1,395)   (1,066)
Accounts payable                                 137,896   140,530   (2,634)
Accrued expenses and other current liabilities   (13,332)  (18,419)  5,087
Net cash used in operating activities            (39,986)  (34,027)  (5,959)
                                                                  
Investing activities                                               
Acquisition of businesses, net of cash acquired  (325)     (3,855)   3,530
Purchase of property and equipment, net of sale  (4,882)   (6,661)   1,779
proceeds
Other investments                                9         (53)      62
Net cash used in investing activities            (5,198)   (10,569)  5,371
                                                                  
Financing activities                                               
Proceeds from revolving line of credit           149,760   215,411   (65,651)
Payments on revolving line of credit             (102,100) (63,700)  (38,400)
Payments on long-term debt and other long-term   (5)       (100,005) 100,000
liabilities
Excess tax benefits from share-based             1,703     1,138     565
compensation
Proceeds from stock issued under share-based     6,438     4,178     2,260
compensation plans
Payments of cash dividends                       (7,434)   (6,668)   (766)
Purchases of treasury stock                      (3,829)   (2,369)   (1,460)
Net cash provided by financing activities        44,533    47,985    (3,452)
Effect of exchange rate changes on cash and cash 1,061     (195)     1,256
equivalents
Change in cash and cash equivalents              410       3,194     (2,784)
Cash and cash equivalents at beginning of period 12,463    17,487    (5,024)
Cash and cash equivalents at end of period       $ 12,873  $ 20,681  $ (7,808)

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
(in thousands)        Three Months Ended Three Months Ended Three Months Ended
                     March 31,          March 31,          March 31,
                     2013      2012     2013      2012     2013      2012
Net sales             $366,178  $358,847 $4,184    $3,107   $370,362  $361,954
                                                                
Gross profit          103,457   103,617  1,304     946      104,761   104,563
Gross margin          28.3%     28.9%    31.2%     30.4%    28.3%     28.9%
                                                                
Operating expenses    95,083    96,681   2,746     1,861    97,829    98,542
Expenses as a % of    26.0%     26.9%    65.6%     59.9%    26.4%     27.2%
net sales
                                                                
Operating income      8,374     6,936    (1,442)   (915)    6,932     6,021
(loss)
Operating margin      2.3%      1.9%     (34.5)%   (29.4)%  1.9%      1.7%

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

                                            Net           
                               Acquisition   Sales Centers Periods
Acquired ^(1)                   Date          Acquired      Excluded
Swimming Pool Supply Center,    March 2013    1             March 2013
Inc.
CCR Distribution                March 2012                  January - March
                                            1             2013 and
                                                            March 2012
                                                            January - March
Ideal Distributors Ltd.         February 2012 4             2013 and
                                                            February - March
                                                            2012
                                                            January - February
G.L. Cornell Company            December 2011 1             2013 and
                                                            January - February
                                                            2012
                                                            January - February
Poolway Schwimmbadtechnik GmbH  November 2011 1             2013 and
                                                            January - February
                                                            2012

^(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 March31, 2013.

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 in the first three
months of 2013:

December31, 2012 312
Acquired          1
New locations     5
March31, 2013    318

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 loss 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)                                 Three Months Ended
(In thousands)                              March 31,
                                           2013              2012
Net income                                  $ 3,440           $ 3,651
Add:                                                         
Interest expense ^(1)                       1,614             1,477
Provision for income taxes                  1,896             1,037
Share-based compensation                    1,905             2,101
Equity earnings in unconsolidated           (18)              (144)
investments
Depreciation                                3,073             2,664
Amortization ^(2)                           225               221
Adjusted EBITDA                             $ 12,135          $ 11,007

(1)Shown net of interest income and includes amortization of deferred
financing costs as discussed below.
(2)Excludes amortization of deferred financing costs of $96 and $99 for the
three months ended March31, 2013 and March31, 2012, respectively.

The table below presents a reconciliation of Adjusted EBITDA to net cash used
in operating activities.Please see page5 for our Condensed Consolidated
Statements of Cash Flows.

                                                 
(Unaudited)                                       Three Months Ended
(In thousands)                                    March 31,
                                                 2013       2012
Adjusted EBITDA                                   $ 12,135   $ 11,007
Add:                                                        
Interest expense, net of interest income          (1,518)    (1,378)
Provision for income taxes                        (1,896)    (1,037)
Excess tax benefits from share-based compensation (1,703)    (1,138)
Other                                             (38)       941
Change in operating assets and liabilities        (46,966)   (42,422)
Net cash used in operating activities             $ (39,986) $ (34,027)

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

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