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 18, 2013, announcing first quarter 2013 results and affirming its 2013 earnings guidance. |
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 |
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 assets | 13,029 | 12,590 | 439 | 3 | ||||||||||||
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 liabilities | 30,413 | 30,111 | 302 | 1 | ||||||||||||
Current portion of long-term debt and other long-term liabilities | 21 | 23 | (2 | ) | (9 | ) | ||||||||||
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’ equity | $ | 953,740 | $ | 946,808 | $ | 6,932 | 1 | % |
1. | The allowance for doubtful accounts was $5.4 million at March 31, 2013 and $5.8 million at March 31, 2012. |
2. | The inventory reserve was $8.5 million at March 31, 2013 and $8.6 million at March 31, 2012. |
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 compensation | (1,703 | ) | (1,138 | ) | (565 | ) | |||||||
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 proceeds | (4,882 | ) | (6,661 | ) | 1,779 | ||||||||
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 liabilities | (5 | ) | (100,005 | ) | 100,000 | ||||||||
Excess tax benefits from share-based compensation | 1,703 | 1,138 | 565 | ||||||||||
Proceeds from stock issued under share-based compensation plans | 6,438 | 4,178 | 2,260 | ||||||||||
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 equivalents | 1,061 | (195 | ) | 1,256 | |||||||||
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 | ) |
(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 net sales | 26.0 | % | 26.9 | % | 65.6 | % | 59.9 | % | 26.4 | % | 27.2 | % | ||||||||||||
Operating income (loss) | 8,374 | 6,936 | (1,442 | ) | (915 | ) | 6,932 | 6,021 | ||||||||||||||||
Operating margin | 2.3 | % | 1.9 | % | (34.5 | )% | (29.4 | )% | 1.9 | % | 1.7 | % |
Acquired (1) | Acquisition Date | Net Sales Centers Acquired | Periods Excluded | |||
Swimming Pool Supply Center, Inc. | March 2013 | 1 | March 2013 | |||
CCR Distribution | March 2012 | 1 | January - March 2013 and March 2012 | |||
Ideal Distributors Ltd. | February 2012 | 4 | January - March 2013 and February - March 2012 | |||
G.L. Cornell Company | December 2011 | 1 | January - February 2013 and January - February 2012 | |||
Poolway Schwimmbadtechnik GmbH | November 2011 | 1 | January - February 2013 and January - February 2012 |
(1) | We acquired certain distribution assets of each of these companies. |
December 31, 2012 | 312 | |
Acquired | 1 | |
New locations | 5 | |
March 31, 2013 | 318 |
(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 investments | (18 | ) | (144 | ) | ||||
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 March 31, 2013 and March 31, 2012, respectively. |
(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 | ) |
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