Delaware
|
0-26640
|
36-3943363
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
109 Northpark Boulevard, Covington, Louisiana
|
70433-5001
|
(Address of principal executive offices)
|
(Zip Code)
|
985-892-5521
|
|
(Registrant's telephone number, including area code)
|
|
(d)
|
Exhibits
|
|
Press release issued by Pool Corporation on April 19, 2012, announcing its first quarter 2012 results and increasing its fiscal 2012 earnings guidance range.
|
·
|
16% sales growth, including 13% from base business
|
·
|
$5.4 million increase in operating income
|
·
|
Diluted EPS of $0.08, versus a loss per share of $0.01 in Q1-11
|
·
|
Updated 2012 earnings guidance range to $1.75 - $1.85 per diluted share
|
Three Months Ended
|
||||||
March 31,
|
||||||
2012
|
2011
|
|||||
Net sales
|
$
|
361,954
|
$
|
312,889
|
||
Cost of sales
|
257,391
|
221,479
|
||||
Gross profit
|
104,563
|
91,410
|
||||
Percent
|
28.9
|
%
|
29.2
|
%
|
||
Selling and administrative expenses
|
98,542
|
90,834
|
||||
Operating income
|
6,021
|
576
|
||||
Percent
|
1.7
|
%
|
0.2
|
%
|
||
Interest expense, net
|
1,477
|
1,645
|
||||
Income (loss) before income taxes and equity earnings
|
4,544
|
(1,069
|
)
|
|||
Provision (benefit) for income taxes
|
1,037
|
(419
|
)
|
|||
Equity earnings in unconsolidated investments
|
144
|
12
|
||||
Net income (loss)
|
$
|
3,651
|
$
|
(638
|
)
|
|
Earnings (loss) per share:
|
||||||
Basic
|
$
|
0.08
|
$
|
(0.01
|
)
|
|
Diluted
|
$
|
0.08
|
$
|
(0.01
|
)
|
|
Weighted average shares outstanding:
|
||||||
Basic
|
47,519
|
48,864
|
||||
Diluted
|
48,598
|
48,864
|
||||
Cash dividends declared per common share
|
$
|
0.14
|
$
|
0.13
|
March 31,
|
March 31,
|
Change
|
|||||||||||
2012
|
2011
|
$
|
%
|
||||||||||
Assets
|
|||||||||||||
Current assets:
|
|||||||||||||
Cash and cash equivalents
|
$
|
20,681
|
$
|
11,420
|
$
|
9,261
|
81
|
%
|
|||||
Receivables, net
|
201,792
|
173,787
|
28,005
|
16
|
|||||||||
Product inventories, net
|
462,810
|
438,791
|
24,019
|
5
|
|||||||||
Prepaid expenses and other current assets
|
12,590
|
6,850
|
5,740
|
84
|
|||||||||
Deferred income taxes
|
11,737
|
10,211
|
1,526
|
15
|
|||||||||
Total current assets
|
709,610
|
641,059
|
68,551
|
11
|
|||||||||
Property and equipment, net
|
45,355
|
34,746
|
10,609
|
31
|
|||||||||
Goodwill
|
177,103
|
178,516
|
(1,413
|
)
|
(1
|
)
|
|||||||
Other intangible assets, net
|
11,717
|
12,597
|
(880
|
)
|
(7
|
)
|
|||||||
Equity interest investments
|
1,099
|
903
|
196
|
22
|
|||||||||
Other assets, net
|
29,381
|
28,822
|
559
|
2
|
|||||||||
Total assets
|
$
|
974,265
|
$
|
896,643
|
$
|
77,622
|
9
|
%
|
|||||
Liabilities and stockholders’ equity
|
|||||||||||||
Current liabilities:
|
|||||||||||||
Accounts payable
|
$
|
319,462
|
$
|
303,395
|
$
|
16,067
|
5
|
%
|
|||||
Accrued expenses and other current liabilities
|
34,240
|
29,096
|
5,144
|
18
|
|||||||||
Current portion of long-term debt and other
long-term liabilities
|
23
|
100,064
|
(100,041
|
)
|
(100
|
)
|
|||||||
Total current liabilities
|
353,725
|
432,555
|
(78,830
|
)
|
(18
|
)
|
|||||||
Deferred income taxes
|
32,957
|
25,870
|
7,087
|
27
|
|||||||||
Long-term debt
|
299,011
|
180,157
|
118,854
|
66
|
|||||||||
Other long-term liabilities
|
7,006
|
7,491
|
(485
|
)
|
(6
|
)
|
|||||||
Total liabilities
|
692,699
|
646,073
|
46,626
|
7
|
|||||||||
Total stockholders’ equity
|
281,566
|
250,570
|
30,996
|
12
|
|||||||||
Total liabilities and stockholders’ equity
|
$
|
974,265
|
$
|
896,643
|
$
|
77,622
|
9
|
%
|
1.
|
The allowance for doubtful accounts was $5.8 million at March 31, 2012 and $6.5 million at March 31, 2011.
|
2.
|
The inventory reserve was $8.6 million at March 31, 2012 and $7.3 million at March 31, 2011.
|
Three Months Ended
March 31,
|
||||||||||
2012
|
2011
|
Change
|
||||||||
Operating activities
|
||||||||||
Net income (loss)
|
$
|
3,651
|
$
|
(638
|
)
|
$
|
4,289
|
|||
Adjustments to reconcile net income (loss) to net cash used in
operating activities:
|
||||||||||
Depreciation
|
2,664
|
2,207
|
457
|
|||||||
Amortization
|
320
|
444
|
(124
|
)
|
||||||
Share-based compensation
|
2,101
|
1,892
|
209
|
|||||||
Excess tax benefits from share-based compensation
|
(1,138
|
)
|
(1,405
|
)
|
267
|
|||||
Equity earnings in unconsolidated investments
|
(144
|
)
|
(12
|
)
|
(132
|
)
|
||||
Other
|
941
|
(1,192
|
)
|
2,133
|
||||||
Changes in operating assets and liabilities, net of effects of acquisitions:
|
||||||||||
Receivables
|
(90,350
|
)
|
(71,602
|
)
|
(18,748
|
)
|
||||
Product inventories
|
(72,788
|
)
|
(91,525
|
)
|
18,737
|
|||||
Accounts payable
|
140,530
|
133,674
|
6,856
|
|||||||
Other current assets and liabilities
|
(19,814
|
)
|
(8,971
|
)
|
(10,843
|
)
|
||||
Net cash used in operating activities
|
(34,027
|
)
|
(37,128
|
)
|
3,101
|
|||||
Investing activities
|
||||||||||
Acquisition of businesses, net of cash acquired
|
(3,855
|
)
|
–
|
(3,855
|
)
|
|||||
Purchase of property and equipment, net of sale proceeds
|
(6,661
|
)
|
(6,246
|
)
|
(415
|
)
|
||||
Other investments
|
(53
|
)
|
–
|
(53
|
)
|
|||||
Net cash used in investing activities
|
(10,569
|
)
|
(6,246
|
)
|
(4,323
|
)
|
||||
Financing activities
|
||||||||||
Proceeds from revolving line of credit
|
215,411
|
167,257
|
48,154
|
|||||||
Payments on revolving line of credit
|
(63,700
|
)
|
(85,800
|
)
|
22,100
|
|||||
Payments on long-term debt and other long-term liabilities
|
(100,005
|
)
|
(89
|
)
|
(99,916
|
)
|
||||
Excess tax benefits from share-based compensation
|
1,138
|
1,405
|
(267
|
)
|
||||||
Proceeds from stock issued under share-based compensation plans
|
4,178
|
4,512
|
(334
|
)
|
||||||
Payments of cash dividends
|
(6,668
|
)
|
(6,321
|
)
|
(347
|
)
|
||||
Purchases of treasury stock
|
(2,369
|
)
|
(35,953
|
)
|
33,584
|
|||||
Net cash provided by financing activities
|
47,985
|
45,011
|
2,974
|
|||||||
Effect of exchange rate changes on cash and cash equivalents
|
(195
|
)
|
62
|
(257
|
)
|
|||||
Change in cash and cash equivalents
|
3,194
|
1,699
|
1,495
|
|||||||
Cash and cash equivalents at beginning of period
|
17,487
|
9,721
|
7,766
|
|||||||
Cash and cash equivalents at end of period
|
$
|
20,681
|
$
|
11,420
|
$
|
9,261
|
(Unaudited)
|
Base Business
|
Excluded
|
Total
|
|||||||||||
(in thousands)
|
Three Months Ended
|
Three Months Ended
|
Three Months Ended
|
|||||||||||
March 31,
|
March 31,
|
March 31,
|
||||||||||||
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
|||||||||
Net sales
|
$
|
350,797
|
$
|
311,663
|
$
|
11,157
|
$
|
1,226
|
$
|
361,954
|
$
|
312,889
|
||
Gross profit
|
101,273
|
91,057
|
3,290
|
353
|
104,563
|
91,410
|
||||||||
Gross margin
|
28.9
|
%
|
29.2
|
%
|
29.5
|
%
|
28.8
|
%
|
28.9
|
%
|
29.2
|
%
|
||
Operating expenses
|
94,623
|
90,302
|
3,919
|
532
|
98,542
|
90,834
|
||||||||
Expenses as a % of net sales
|
27.0
|
%
|
29.0
|
%
|
35.1
|
%
|
43.4
|
%
|
27.2
|
%
|
29.0
|
%
|
||
Operating income (loss)
|
6,650
|
755
|
(629
|
)
|
(179
|
)
|
6,021
|
576
|
||||||
Operating margin
|
1.9
|
%
|
0.2
|
%
|
(5.6
|
)%
|
(14.6
|
)%
|
1.7
|
%
|
0.2
|
%
|
Acquired (1)
|
Acquisition
Date
|
Net
Sales Centers Acquired
|
Periods
Excluded
|
|||
CCR Distribution
|
March 2012
|
1
|
March 2012
|
|||
Ideal Distributors Ltd.
|
February 2012
|
4
|
February–March 2012
|
|||
G.L. Cornell Company
|
December 2011
|
1
|
January–March 2012
|
|||
Poolway Schwimmbadtechnik GmbH
|
November 2011
|
1
|
January–March 2012
|
|||
The Kilpatrick Company, Inc.
|
May 2011
|
4
|
January–March 2012
|
|||
Turf Equipment Supply Co.
|
December 2010
|
3
|
January–February 2012 and
January–February 2011
|
|||
Pool Boat and Leisure, S.A.
|
December 2010
|
1
|
January–February 2012 and
January–February 2011
|
(1)
|
We acquired certain distribution assets of each of these companies.
|
·
|
acquired sales centers (see table above);
|
·
|
existing sales centers consolidated with acquired sales centers (0);
|
·
|
closed sales centers (0);
|
·
|
consolidated sales centers in cases where we do not expect to maintain the majority of the existing business (0); and
|
·
|
sales centers opened in new markets (2).
|
December 31, 2011
|
298
|
|
Acquired
|
5
|
|
New Locations
|
4
|
|
March 31, 2012
|
307
|
(Unaudited)
|
Three Months Ended
March 31,
|
||||||
(in thousands)
|
2012
|
2011
|
|||||
Net income (loss)
|
$
|
3,651
|
$
|
(638
|
)
|
||
Add:
|
|||||||
Interest expense (1)
|
1,477
|
1,645
|
|||||
Provision (benefit) for income taxes
|
1,037
|
(419
|
)
|
||||
Share-based compensation
|
2,101
|
1,892
|
|||||
Equity earnings in unconsolidated investments
|
(144
|
)
|
(12
|
)
|
|||
Depreciation
|
2,664
|
2,207
|
|||||
Amortization (2)
|
221
|
370
|
|||||
Adjusted EBITDA
|
$
|
11,007
|
$
|
5,045
|
(1)
|
Shown net of interest income and includes amortization of deferred financing costs as discussed below.
|
(2)
|
Excludes amortization of deferred financing costs of $99 for 2012 and $74 for 2011. This non-cash expense is included in Interest expense, net on the Consolidated Statements of Income (Loss).
|
(Unaudited)
|
Three Months Ended
March 31,
|
||||||
(in thousands)
|
2012
|
2011
|
|||||
Adjusted EBITDA
|
$
|
11,007
|
$
|
5,045
|
|||
Add:
|
|||||||
Interest expense, net of interest income
|
(1,378
|
)
|
(1,571
|
)
|
|||
Provision (benefit) for income taxes
|
(1,037
|
)
|
419
|
||||
Excess tax benefits from share-based compensation
|
(1,138
|
)
|
(1,405
|
)
|
|||
Other
|
941
|
(1,192
|
)
|
||||
Change in operating assets and liabilities
|
(42,422
|
)
|
(38,424
|
)
|
|||
Net cash used in operating activities
|
$
|
(34,027
|
)
|
$
|
(37,128
|
)
|
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