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 July 19, 2012, announcing its second quarter 2012 results and its updated fiscal 2012 earnings guidance range.
|
·
|
Sales growth of 7%, including 5% from base business
|
·
|
10% increase in operating income
|
·
|
13% increase in diluted EPS to a record $1.34
|
·
|
Updated 2012 earnings guidance range to $1.75 - $1.82 per diluted share
|
Three Months Ended
|
Six Months Ended
|
|||||||||||
June 30,
|
June 30,
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||
Net sales
|
$
|
757,175
|
$
|
706,423
|
$
|
1,119,129
|
$
|
1,019,312
|
||||
Cost of sales
|
534,770
|
494,984
|
792,161
|
716,463
|
||||||||
Gross profit
|
222,405
|
211,439
|
326,968
|
302,849
|
||||||||
Percent
|
29.4
|
%
|
29.9
|
%
|
29.2
|
%
|
29.7
|
%
|
||||
Selling and administrative expenses
|
114,271
|
113,518
|
212,813
|
204,352
|
||||||||
Operating income
|
108,134
|
97,921
|
114,155
|
98,497
|
||||||||
Percent
|
14.3
|
%
|
13.9
|
%
|
10.2
|
%
|
9.7
|
%
|
||||
Interest expense, net
|
2,200
|
1,824
|
3,677
|
3,469
|
||||||||
Income before income taxes and equity earnings
|
105,934
|
96,097
|
110,478
|
95,028
|
||||||||
Provision for income taxes
|
41,018
|
37,670
|
42,055
|
37,251
|
||||||||
Equity earnings in unconsolidated investments
|
27
|
150
|
171
|
162
|
||||||||
Net income
|
$
|
64,943
|
$
|
58,577
|
$
|
68,594
|
$
|
57,939
|
||||
Earnings per share:
|
||||||||||||
Basic
|
$
|
1.38
|
$
|
1.21
|
$
|
1.45
|
$
|
1.19
|
||||
Diluted
|
$
|
1.34
|
$
|
1.19
|
$
|
1.42
|
$
|
1.17
|
||||
Weighted average shares outstanding:
|
||||||||||||
Basic
|
47,142
|
48,231
|
47,330
|
48,546
|
||||||||
Diluted
|
48,288
|
49,116
|
48,430
|
49,352
|
||||||||
Cash dividends declared per common share
|
$
|
0.16
|
$
|
0.14
|
$
|
0.30
|
$
|
0.27
|
June 30,
|
June 30,
|
Change
|
|||||||||||
2012
|
2011
|
$
|
%
|
||||||||||
Assets
|
|||||||||||||
Current assets:
|
|||||||||||||
Cash and cash equivalents
|
$
|
50,311
|
$
|
37,218
|
$
|
13,093
|
35
|
%
|
|||||
Receivables, net
|
270,089
|
266,032
|
4,057
|
2
|
|||||||||
Product inventories, net
|
402,266
|
389,763
|
12,503
|
3
|
|||||||||
Prepaid expenses and other current assets
|
8,437
|
7,692
|
745
|
10
|
|||||||||
Deferred income taxes
|
11,737
|
10,211
|
1,526
|
15
|
|||||||||
Total current assets
|
742,840
|
710,916
|
31,924
|
4
|
|||||||||
Property and equipment, net
|
45,409
|
38,732
|
6,677
|
17
|
|||||||||
Goodwill
|
177,103
|
178,516
|
(1,413
|
)
|
(1
|
)
|
|||||||
Other intangible assets, net
|
11,497
|
12,221
|
(724
|
)
|
(6
|
)
|
|||||||
Equity interest investments
|
1,089
|
1,052
|
37
|
4
|
|||||||||
Other assets, net
|
29,076
|
29,113
|
(37
|
)
|
–
|
||||||||
Total assets
|
$
|
1,007,014
|
$
|
970,550
|
$
|
36,464
|
4
|
%
|
|||||
Liabilities and stockholders’ equity
|
|||||||||||||
Current liabilities:
|
|||||||||||||
Accounts payable
|
$
|
267,990
|
$
|
247,904
|
$
|
20,086
|
8
|
%
|
|||||
Accrued expenses and other current liabilities
|
87,614
|
79,794
|
7,820
|
10
|
|||||||||
Current portion of long-term debt and other long-term liabilities
|
22
|
100,033
|
(100,011
|
)
|
(100
|
)
|
|||||||
Total current liabilities
|
355,626
|
427,731
|
(72,105
|
)
|
(17
|
)
|
|||||||
Deferred income taxes
|
32,139
|
26,151
|
5,988
|
23
|
|||||||||
Long-term debt
|
309,813
|
206,049
|
103,764
|
50
|
|||||||||
Other long-term liabilities
|
7,058
|
7,663
|
(605
|
)
|
(8
|
)
|
|||||||
Total liabilities
|
704,636
|
667,594
|
37,042
|
6
|
|||||||||
Total stockholders’ equity
|
302,378
|
302,956
|
(578
|
)
|
–
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
1,007,014
|
$
|
970,550
|
$
|
36,464
|
4
|
%
|
1.
|
The allowance for doubtful accounts was $5.0 million at June 30, 2012 and $5.4 million at June 30, 2011.
|
2.
|
The inventory reserve was $9.6 million at June 30, 2012 and $7.5 million at June 30, 2011.
|
Six Months Ended
|
||||||||||
June 30,
|
||||||||||
2012
|
2011
|
Change
|
||||||||
Operating activities
|
||||||||||
Net income
|
$
|
68,594
|
$
|
57,939
|
$
|
10,655
|
||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||||
Depreciation
|
5,559
|
4,470
|
1,089
|
|||||||
Amortization
|
638
|
898
|
(260
|
)
|
||||||
Share-based compensation
|
4,306
|
4,084
|
222
|
|||||||
Excess tax benefits from share-based compensation
|
(1,609
|
)
|
(2,021
|
)
|
412
|
|||||
Equity earnings in unconsolidated investments
|
(171
|
)
|
(162
|
)
|
(9
|
)
|
||||
Other
|
1,248
|
(2,798
|
)
|
4,046
|
||||||
Changes in operating assets and liabilities, net of effects of acquisitions:
|
||||||||||
Receivables
|
(157,829
|
)
|
(161,549
|
)
|
3,720
|
|||||
Product inventories
|
(13,289
|
)
|
(40,962
|
)
|
27,673
|
|||||
Prepaid expenses and other assets
|
2,612
|
17
|
2,595
|
|||||||
Accounts payable
|
88,946
|
78,192
|
10,754
|
|||||||
|
Accrued expenses and other current liabilities
|
34,516
|
42,953
|
(8,437
|
)
|
|||||
Net cash provided by (used in) operating activities
|
33,521
|
(18,939
|
)
|
52,460
|
||||||
Investing activities
|
||||||||||
Acquisition of businesses, net of cash acquired
|
(4,429
|
)
|
(2,637
|
)
|
(1,792
|
)
|
||||
Purchase of property and equipment, net of sale proceeds
|
(9,520
|
)
|
(12,427
|
)
|
2,907
|
|||||
Other investments
|
(166
|
)
|
(113
|
)
|
(53
|
)
|
||||
Net cash used in investing activities
|
(14,115
|
)
|
(15,177
|
)
|
1,062
|
|||||
Financing activities
|
||||||||||
Proceeds from revolving line of credit
|
345,631
|
345,049
|
582
|
|||||||
Payments on revolving line of credit
|
(183,118
|
)
|
(237,700
|
)
|
54,582
|
|||||
Payments on long-term debt and other long-term liabilities
|
(100,012
|
)
|
(125
|
)
|
(99,887
|
)
|
||||
Payments of deferred acquisition consideration
|
–
|
(500
|
)
|
500
|
||||||
Excess tax benefits from share-based compensation
|
1,609
|
2,021
|
(412
|
)
|
||||||
Proceeds from stock issued under share-based compensation plans
|
7,879
|
7,826
|
53
|
|||||||
Payments of cash dividends
|
(14,223
|
)
|
(13,074
|
)
|
(1,149
|
)
|
||||
Purchases of treasury stock
|
(43,866
|
)
|
(43,725
|
)
|
(141
|
)
|
||||
Net cash provided by financing activities
|
13,900
|
59,772
|
(45,872
|
)
|
||||||
Effect of exchange rate changes on cash
|
(482
|
)
|
1,841
|
(2,323
|
)
|
|||||
Change in cash and cash equivalents
|
32,824
|
27,497
|
5,327
|
|||||||
Cash and cash equivalents at beginning of period
|
17,487
|
9,721
|
7,766
|
|||||||
Cash and cash equivalents at end of period
|
$
|
50,311
|
$
|
37,218
|
$
|
13,093
|
(Unaudited)
|
Base Business
|
Excluded
|
Total
|
||||||||||
(in thousands)
|
Three Months Ended
|
Three Months Ended
|
Three Months Ended
|
||||||||||
June 30,
|
June 30,
|
June 30,
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||
Net sales
|
$
|
739,650
|
$
|
703,722
|
$
|
17,525
|
$
|
2,701
|
$ |
757,175
|
$
|
706,423
|
|
Gross profit
|
217,581
|
210,694
|
4,824
|
745
|
222,405
|
211,439
|
|||||||
Gross margin
|
29.4
|
%
|
29.9
|
%
|
27.5
|
%
|
27.6
|
%
|
29.4
|
%
|
29.9
|
%
|
|
Operating expenses
|
110,329
|
112,539
|
3,942
|
979
|
114,271
|
113,518
|
|||||||
Expenses as a % of net sales
|
14.9
|
%
|
16.0
|
%
|
22.5
|
%
|
36.2
|
%
|
15.1
|
%
|
16.1
|
%
|
|
Operating income (loss)
|
107,252
|
98,155
|
882
|
(234
|
)
|
108,134
|
97,921
|
||||||
Operating margin
|
14.5
|
%
|
13.9
|
%
|
5.0
|
%
|
(8.7
|
)%
|
14.3
|
%
|
13.9
|
%
|
(Unaudited)
|
Base Business
|
Excluded
|
Total
|
||||||||||
(in thousands)
|
Six Months Ended
|
Six Months Ended
|
Six Months Ended
|
||||||||||
June 30,
|
June 30,
|
June 30,
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||
Net sales
|
$
|
1,090,447
|
$
|
1,015,387
|
$
|
28,682
|
$
|
3,925
|
$ |
1,119,129
|
$
|
1,019,312
|
|
Gross profit
|
318,856
|
301,751
|
8,112
|
1,098
|
326,968
|
302,849
|
|||||||
Gross margin
|
29.2
|
%
|
29.7
|
%
|
28.3
|
%
|
28.0
|
%
|
29.2
|
%
|
29.7
|
%
|
|
Operating expenses
|
205,019
|
202,820
|
7,794
|
1,532
|
212,813
|
204,352
|
|||||||
Expenses as a % of net sales
|
18.8
|
%
|
20.0
|
%
|
27.2
|
%
|
39.0
|
%
|
19.0
|
%
|
20.0
|
%
|
|
Operating income (loss)
|
113,837
|
98,931
|
318
|
(434
|
)
|
114,155
|
98,497
|
||||||
Operating margin
|
10.4
|
%
|
9.7
|
%
|
1.1
|
%
|
(11.1
|
)%
|
10.2
|
%
|
9.7
|
%
|
Acquired (1)
|
Acquisition
Date
|
Net
Sales
Centers Acquired
|
Periods
Excluded
|
|||
CCR Distribution
|
March 2012
|
1
|
March–June 2012
|
|||
Ideal Distributors Ltd.
|
February 2012
|
4
|
February–June 2012
|
|||
G.L. Cornell Company
|
December 2011
|
1
|
January–June 2012
|
|||
Poolway Schwimmbadtechnik GmbH
|
November 2011
|
1
|
January–June 2012
|
|||
The Kilpatrick Company, Inc.
|
May 2011
|
4
|
January–June 2012 and
May–June 2011
|
|||
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 (3).
|
December 31, 2011
|
298
|
|
Acquired
|
5
|
|
New locations
|
5
|
|
June 30, 2012
|
308
|
(Unaudited)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||
(In thousands)
|
June 30,
|
June 30,
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||||
Net income
|
$
|
64,943
|
$
|
58,577
|
$
|
68,594
|
$
|
57,939
|
|||||
Add:
|
|||||||||||||
Interest expense (1)
|
2,200
|
1,824
|
3,677
|
3,469
|
|||||||||
Provision for income taxes
|
41,018
|
37,670
|
42,055
|
37,251
|
|||||||||
Share-based compensation
|
2,205
|
2,192
|
4,306
|
4,084
|
|||||||||
Equity earnings in unconsolidated investments
|
(27
|
)
|
(150
|
)
|
(171
|
)
|
(162
|
)
|
|||||
Depreciation
|
2,895
|
2,263
|
5,559
|
4,470
|
|||||||||
Amortization (2)
|
222
|
380
|
443
|
750
|
|||||||||
Adjusted EBITDA
|
$
|
113,456
|
$
|
102,756
|
$
|
124,463
|
$
|
107,801
|
(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 $74 for the three months ended June 30, 2012 and June 30, 2011, respectively, and $195 and $148 for the six months ended June 30, 2012 and June 30, 2011, respectively.
|
(Unaudited)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||
(In thousands)
|
June 30,
|
June 30,
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||||
Adjusted EBITDA
|
$
|
113,456
|
$
|
102,756
|
$
|
124,463
|
$
|
107,801
|
|||||
Add:
|
|||||||||||||
Interest expense, net of interest income
|
(2,104
|
)
|
(1,750
|
)
|
(3,482
|
)
|
(3,321
|
)
|
|||||
Provision for income taxes
|
(41,018
|
)
|
(37,670
|
)
|
(42,055
|
)
|
(37,251
|
)
|
|||||
Excess tax benefits from share-based compensation
|
(471
|
)
|
(616
|
)
|
(1,609
|
)
|
(2,021
|
)
|
|||||
Other
|
307
|
(1,606
|
)
|
1,248
|
(2,798
|
)
|
|||||||
Change in operating assets and liabilities
|
(2,622
|
)
|
(42,925
|
)
|
(45,044
|
)
|
(81,349
|
)
|
|||||
Net cash provided by (used in) operating activities
|
$
|
67,548
|
$
|
18,189
|
$
|
33,521
|
|
$
|
(18,939
|
)
|
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