EX-99 2 exh99-1.htm

EXHIBIT 99.1




 

FOR IMMEDIATE RELEASE

SCP POOL CORPORATION
ANNOUNCES INVESTOR DAY
AND
PROVIDES GUIDANCE ON THE IMPACT OF STOCK OPTION EXPENSING

_____________________________

COVINGTON, La. (April 19, 2006) – SCP Pool Corporation (the “Company” or “POOL”) (Nasdaq/NM: POOL) today announced that it will host an Investor Day in Riverside, CA on May 17, 2006 at its pool and irrigation distribution centers.  The investor day is by invitation only.  Presentation slides will be available on the Company’s website on the day of the event.

Separately, POOL announced that it has adopted Statement of Financial Accounting Standards (SFAS) 123(R) – Share-Based Payment. In accordance with SFAS 123(R), and in order to provide a consistent year-to-year comparison of financial results, the Company has elected the modified retrospective transition method and has adjusted prior period financial statements to reflect the impact of share-based compensation expenses. Adjusted historical income statements are attached as exhibits to this release.

In addition, the Company has calculated the expected impact of the adoption of SFAS 123(R) on 2006 results and now projects the impact to be $0.08 per diluted share, two cents more than the $0.06 per diluted share previously disclosed by the Company. The Company has also updated the expected distribution of this additional expense by quarter from an even $0.015 per quarter as previously communicated to $0.023, $0.021, $0.017 and $0.018 per quarter for the first to fourth quarters, respectively. The additional first quarter and full year expense over previous guidance and prior years is primarily due to a provision in SFAS 123(R) requiring the acceleration of stock option expense for options issued to retirement eligible employees. The Company’s annual earnings guidance is unchanged from what was provided in February 2006.

SCP Pool Corporation is the largest wholesale distributor of swimming pool and related backyard products. Currently, POOL operates 253 service centers in North America and Europe, through which it distributes more than 100,000 national brand and private label products to roughly 68,000 wholesale customers. For more information about POOL, please visit www.poolcorp.com.

This news release may include “forward-looking” statements that involve risk and uncertainties. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including the sensitivity of the swimming pool supply business to weather conditions and other risks detailed in POOL’s 2005 Form 10-K filed with the Securities and Exchange Commission.

CONTACT:

Craig K. Hubbard
Treasurer
985.801.5117
craig.hubbard@poolcorp.com





EXHIBIT A

SCP Pool Corporation
Consolidated Statements of Income – As Adjusted for 123(R)
(In thousands, except per share data)
(Unaudited)

As Adjusted for the Fiscal Year Ended December 31,
2005
 2004
 2003
Net sales     $ 1,552,659   $ 1,310,853   $ 1,155,832  
Cost of sales       1,120,211     940,019     840,694  
        Gross profit       432,448     370,834     315,138  
   
Selling and administrative expenses       297,085     262,679     231,144  
        Operating income       135,363     108,155     83,994  
   
Interest expense, net       6,434     3,855     4,669  
Income before income taxes and equity earnings       128,929     104,300     79,325  
Provision for income taxes       49,941     40,894     31,076  
Equity earnings in unconsolidated investments, net       1,467     --     --  
Net income     $ 80,455   $ 63,406   $ 48,249  
Earnings per share:                      
        Basic     $ 1.53   $ 1.20   $ 0.91  
        Diluted   $ 1.45   $ 1.13   $ 0.87  
Weighted average shares outstanding:    
        Basic       52,445     52,838     53,058  
        Diluted       55,412     55,911     55,269  
   
Impact of Stock-Based Compensation Adjustment On:    
   
Selling and administrative expenses     $ 4,894   $ 5,439   $ 4,032  
   
Income before income taxes and equity earnings     $ (4,894 ) $ (5,439 ) $ (4,032 )
   
Provision for income taxes     $ (1,728 ) $ (1,904 ) $ (1,433 )
   
Net Income     $ (3,166 ) $ (3,535 ) $ (2,599 )
   
Earnings per share:                      
        Basic     $ (0.060 ) $ (0.067 ) $ (0.049 )
        Diluted     $ (0.051 ) $ (0.058 ) $ (0.039 )
   
Diluted weighted average shares outstanding       (222 )   (228 )   (504 )




EXHIBIT B

SCP Pool Corporation
Consolidated Statements of Income – As Adjusted for 123(R)
(In thousands, except per share data)
(Unaudited)

Quarterly Results As Adjusted for
the Fiscal Year Ended December 31, 2005
Q1
 Q2
 Q3
 Q4
Net sales     $ 265,161   $ 563,978   $ 423,729   $ 299,791  
Cost of sales    193,210    401,297    309,124    216,580  
        Gross profit    71,951    162,681    114,605    83,211  
   
Selling and administrative expenses    61,695    81,292    73,174    80,923  
        Operating income    10,256    81,389    41,431    2,288  
   
Interest expense, net    1,080    1,905    1,331    2,118  
Income before income taxes and equity earnings    9,176    79,484    40,100    170  
Provision for income taxes    3,592    30,717    15,491    141  
Equity earnings (loss) in unconsolidated investments, net    (1,482 )  1,942    1,912    (905 )
Net income (loss)   $ 4,102   $ 50,709   $ 26,521   $ (876 )
Earnings (loss) per share(1):                            
        Basic   $ 0.08   $ 0.97   $ 0.50   $ (0.02 )
        Diluted   $ 0.07   $ 0.91   $ 0.47   $ (0.02 )
Weighted average shares outstanding:  
        Basic    52,273    52,491    52,699    52,308  
        Diluted    55,477    55,782    55,945    52,308  
   
Impact of Stock-Based Compensation Adjustment On:  
   
Selling and administrative expenses   $ 1,045   $ 1,406   $ 962   $ 1,480  
   
Income before income taxes and equity earnings   $ (1,045 ) $ (1,406 ) $ (962 ) $ (1,480 )
   
Provision for income taxes   $ (394 ) $ (475 ) $ (363 ) $ (496 )
   
Net Income (loss)   $ (651 ) $ (931 ) $ (599 ) $ (984 )
   
Earnings (loss) per share(1):                            
        Basic   $ (0.012 ) $ (0.018 ) $ (0.011 ) $ (0.019 )
        Diluted   $ (0.012 ) $ (0.017 ) $ (0.011 ) $ (0.019 )
   
Diluted weighted average shares outstanding(2)    (17 )  19    56    (3,020 )

_________________

(1)

The sum of earnings per share for each of the quarters may not equal the total earnings per share for the annual period due to rounding differences or because of a difference in the way that in-the-money stock options are considered from quarter to quarter for diluted earnings per share under the requirements of SFAS 128, Earnings per Share.


(2)

The adjustment for stock option expense in the fourth quarter 2005 changed the reported net income for the period to a net loss. As such, this change reflects the difference between the as reported diluted weighted average shares outstanding and the basic weighted average shares outstanding.






EXHIBIT C

SCP Pool Corporation
Consolidated Statements of Income – As Adjusted for 123(R)
(In thousands, except per share data)
(Unaudited)

Quarterly Results As Adjusted for
the Fiscal Year Ended December 31, 2004
Q1
 Q2
 Q3
 Q4
Net sales     $ 234,648   $ 504,177   $ 362,091   $ 209,937  
Cost of sales    169,616    358,962    257,908    153,533  
        Gross profit    65,032    145,215    104,183    56,404  
   
Selling and administrative expenses    58,682    74,305    68,275    61,417  
        Operating income    6,350    70,910    35,908    (5,013 )
   
Interest expense, net    983    1,122    868    882  
Income (loss) before income taxes and equity earnings    5,367    69,788    35,040    (5,895 )
Provision (benefit) for income taxes    2,109    27,344    13,680    (2,239 )
Equity earnings in unconsolidated investments, net    --    --    --    --  
Net income (loss)   $ 3,258   $ 42,444   $ 21,360   $ (3,656 )
Earnings (loss) per share(1):                            
        Basic   $ 0.06   $ 0.80   $ 0.40   $ (0.07 )
        Diluted   $ 0.06   $ 0.76   $ 0.38   $ (0.07 )
Weighted average shares outstanding:  
        Basic    53,264    53,063    52,847    52,179  
        Diluted    56,031    56,127    55,995    52,179  
   
Impact of Stock-Based Compensation Adjustment On:    
   
Selling and administrative expenses   $ 1,322   $ 1,679   $ 1,041   $ 1,397  
   
Income (loss) before income taxes and equity earnings   $ (1,322 ) $ (1,679 ) $ (1,041 ) $ (1,397 )
   
Provision (benefit) for income taxes   $ (500 ) $ (528 ) $ (391 ) $ (485 )
   
Net Income (loss)   $ (822 ) $ (1,151 ) $ (650 ) $ (912 )
   
Earnings (loss) per share(1):                            
        Basic   $ (0.015 ) $ (0.022 ) $ (0.012 ) $ (0.017 )
        Diluted   $ (0.014 ) $ (0.017 ) $ (0.010 ) $ (0.017 )
   
Diluted weighted average shares outstanding    (358 )  (251 )  (180 )  --  

_________________

(1)

The sum of earnings per share for each of the quarters may not equal the total earnings per share for the annual period due to rounding differences or because of a difference in the way that in-the-money stock options are considered from quarter to quarter for diluted earnings per share under the requirements of SFAS 128, Earnings per Share.






EXHIBIT D

SCP Pool Corporation
Consolidated Statements of Income – As Adjusted for 123(R)
(In thousands, except per share data)
(Unaudited)

Quarterly Results As Adjusted for
the Fiscal Year Ended December 31, 2003
Q1
 Q2
 Q3
 Q4
Net sales     $ 196,388   $ 431,885   $ 337,611   $ 189,949  
Cost of sales    143,865    311,023    245,454    140,352  
        Gross profit    52,523    120,862    92,157    49,597  
   
Selling and administrative expenses    50,127    64,897    61,471    54,649  
        Operating income (loss)    2,396    55,965    30,686    (5,052 )
   
Interest expense, net    1,085    1,514    1,063    1,007  
Income (loss) before income taxes and equity earnings    1,311    54,451    29,623    (6,059 )
Provision (benefit) for income taxes    525    21,282    11,565    (2,295 )
Equity earnings in unconsolidated investments, net    --    --    --    --  
Net income (loss)   $ 786   $ 33,169   $ 18,058   $ (3,764 )
Earnings (loss) per share(1):                            
        Basic   $ 0.01   $ 0.63   $ 0.34   $ (0.07 )
        Diluted   $ 0.01   $ 0.60   $ 0.33   $ (0.07 )
Weighted average shares outstanding:  
        Basic    53,017    52,963    53,075    53,179  
        Diluted    54,538    54,920    55,516    53,179  
   
Impact of Stock-Based Compensation Adjustment On:  
   
Selling and administrative expenses   $ 1,124   $ 1,224   $ 534   $ 1,150  
   
Income (loss) before income taxes and equity earnings   $ (1,124 ) $ (1,224 ) $ (534 ) $ (1,150 )
   
Provision (benefit) for income taxes   $ (426 ) $ (430 ) $ (196 ) $ (380 )
   
Net Income (loss)   $ (698 ) $ (794 ) $ (338 ) $ (770 )
   
Earnings (loss) per share(1):                            
        Basic   $ (0.013 ) $ (0.015 ) $ (0.006 ) $ (0.014 )
        Diluted   $ (0.012 ) $ (0.008 ) $ (0.004 ) $ (0.014 )
   
Diluted weighted average shares outstanding    (757 )  (571 )  (415 )  --  

_________________

(1)

The sum of earnings per share for each of the quarters may not equal the total earnings per share for the annual period due to rounding differences or because of a difference in the way that in-the-money stock options are considered from quarter to quarter for diluted earnings per share under the requirements of SFAS 128, Earnings per Share.