EX-99.1 2 pool-q32018xer.htm POOL Q3 2018 EARNINGS RELEASE Exhibit
poolcorplogoa15.jpg
Exhibit 99.1

FOR IMMEDIATE RELEASE


POOL CORPORATION REPORTS RECORD THIRD QUARTER RESULTS

Highlights

Net sales growth of 9% for Q3 2018, with 8% growth in base business sales
Q3 2018 diluted EPS increase of 43% to $1.66; YTD growth of 34% to $5.20, each including tax benefits
Updates 2018 earnings guidance range to $5.58 - $5.78 per diluted share from previous $5.50 - $5.70 range
______________________

COVINGTON, LA. (October 18, 2018) – Pool Corporation (NASDAQ/GSM:POOL) today reported record results for the third quarter of 2018.
“We produced strong third quarter results thanks to our operational execution and a continuation of the elevated demand trends for discretionary pool and irrigation related products. Despite bouts of severe weather, with Hurricane Florence impacting the Carolinas, elevated rainfall in Texas and wildfires in California, we achieved favorable results. Natural disasters not only impact our business, but the lives of those in and around the impacted areas. In that spirit, we would like to recognize the resiliency of all affected and the ability of our team to continue to produce solid results in spite of these obstacles,” said Manuel Perez de la Mesa, President and CEO.
Net sales increased 9% to a record $811.3 million in the third quarter of 2018 compared to $743.4 million in the third quarter of 2017. Base business sales grew 8% over the same quarter of 2017, with demand for discretionary products such as building materials and our expanded commercial product offerings driving our sales growth.
Gross profit increased 8% to a record $235.0 million in the third quarter of 2018 from $216.6 million in the same period of 2017. Base business gross profit improved 8% over the third quarter of 2017. Gross profit as a percentage of net sales (gross margin) was 29.0% for the third quarter of 2018 compared to 29.1% for the third quarter of 2017. This decline in gross margin mainly reflects differences in product mix.
Selling and administrative expenses (operating expenses) increased 6% to $142.7 million in the third quarter of 2018 compared to the third quarter of 2017, with base business operating expenses up 5% over the comparable 2017 period. We attribute the expense growth to variable labor and freight costs together with higher facility costs. As a percentage of net sales, base business operating expenses declined to 17.4% for the third quarter of 2018 compared to 18.0% for the third quarter of 2017.
Operating income for the third quarter of 2018 increased 13% to a record $92.3 million compared to the same period in 2017. Operating income as a percentage of net sales (operating margin) was 11.4% for the third quarter of 2018 and 11.0% for the same period in 2017, while base business operating margin was 11.5% for the third quarter of 2018 and 11.2% for the same period in 2017.
Both Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting, which we adopted on January 1, 2017, and U.S. tax reform enacted in December 2017, impacted our income tax provision for the third quarter of 2018. Our effective tax rate was 20.8% and 37.4% for the third quarters of 2018 and 2017, respectively. We recorded a $3.3 million benefit from ASU 2016-09 in the quarter ended September 30, 2018 compared to a benefit of $0.3 million realized in the same period in 2017. Excluding the benefits from ASU 2016-09, our effective tax rate was 24.6% and 37.9% for the third quarters of 2018 and 2017, respectively. As previously reported, we expect our annual effective tax rate (excluding the benefit from ASU 2016-09) for 2018 and future periods to approximate 25.5%, which is a reduction compared to our historical rate of approximately 38.5% due to the impact of the recent U.S. tax reform.


1



Net income attributable to Pool Corporation was $69.3 million in the third quarter of 2018 compared to $48.8 million in the third quarter of 2017. Earnings per share increased 43% to a record $1.66 per diluted share for the three months ended September 30, 2018 compared to $1.16 per diluted share for the same period in 2017. The reduction in our effective tax rate from 37.4% to 20.8% as discussed above reduced our income tax expense by approximately $14.5 million, or $0.35 per diluted share, in the third quarter of 2018.
Net sales for the nine months ended September 30, 2018 increased 8% to a record $2,455.0 million from $2,278.0 million in the comparable 2017 period, with most of this growth coming from the 7% improvement in base business sales. Gross margin for the nine months ended September 30, 2018 was 28.9% compared to 29.0% from the same period in 2017.

Operating expenses for the nine months ended September 30, 2018 increased 7% compared to the first nine months of 2017, with base business operating expenses up 6%. Operating income for the first nine months of 2018 increased 8% to $287.9 million compared to $267.1 million in the same period in 2017.

Our effective tax rate was 20.5% for the nine months ended September 30, 2018 compared to 35.2% for the nine months ended September 30, 2017. ASU 2016-09 benefited our income tax provision by $13.9 million in the first nine months of 2018 and $7.7 million in the first nine months of 2017, or $0.33 and $0.14 per diluted share, respectively.

Net income attributable to Pool Corporation for the nine months ended September 30, 2018 was $217.6 million compared to $166.0 million for the nine months ended September 30, 2017. Earnings per share for the first nine months of 2018 increased 34% to a record $5.20 per diluted share compared to $3.89 per diluted share for the first nine months of 2017. The reduction in our effective tax rate as discussed above from 35.2% to 20.5% reduced our income tax expense by approximately $40.3 million, or $0.96 per diluted share, in the first nine months of 2018. Excluding the benefits from ASU 2016-09, our effective tax rate was 25.5% and 38.2% for the nine months ended September 30, 2018 and September 30, 2017, respectively. Considering the impact of U.S. Tax Reform in 2018 and the ASU 2016-09 impacts in both 2018 and 2017, diluted earnings per share increased approximately 15% year over year.

On the balance sheet at September 30, 2018, total net receivables, including pledged receivables, increased 10%, while inventory levels grew 26% compared to September 30, 2017. In 2018, we increased our inventory purchases in advance of greater than normal vendor price increases, which negatively impacted operating cash flow, but should positively impact operating income for the remainder of 2018 and into fiscal 2019. Inventory also increased due to normal business growth and as a result of acquisitions. Total debt outstanding was $580.7 million at September 30, 2018, a $16.1 million increase from total debt at September 30, 2017.
Cash provided by operations was $51.3 million in the first nine months of 2018 compared to $112.0 million in the first nine months of 2017. The decline in cash provided by operations reflects timing differences from the pre-price increase inventory purchases discussed above, which should benefit future periods’ cash flow as the inventory is sold. Adjusted EBITDA (as defined in the addendum to this release) was $102.5 million and $91.7 million in the third quarters of 2018 and 2017, respectively, and $318.0 million and $295.3 million in the first nine months of 2018 and 2017, respectively.
We are updating our 2018 earnings guidance to a range of $5.58 to $5.78 per diluted share from our previous range of $5.50 to $5.70 per diluted share to reflect the $0.08 benefit realized from ASU 2016-09 in the third quarter. We have not projected any additional tax benefit from ASU 2016-09 in our earnings guidance range for the remainder of the year.
“Based on our expectations of sustained demand, combined with our proactive supply chain management, we expect to finish the year strong with a solid fourth quarter. Looking further, I have complete confidence in our leadership team and the opportunities available to our business. I believe they will sustain our track record of exceptional performance, while adding value to our industry. It has been a privilege to do my job for almost 20 years working with truly outstanding individuals in a great industry,” said Perez de la Mesa.



2



POOLCORP is the world’s largest wholesale distributor of swimming pool and related backyard products. As of September 30, 2018, POOLCORP operated 360 sales centers in North America, Europe, South America and Australia, through which it distributes more than 180,000 national brand and private label products to roughly 120,000 wholesale customers. For more information, please visit www.poolcorp.com.
This news release includes “forward-looking” statements that involve risks and uncertainties that are generally identifiable through the use of words such as “believe,” “expect,” “intend,” “plan,” “estimate,” “project,” “should” 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, excess tax benefits or deficiencies recognized under ASU 2016-09 and other risks detailed in POOLCORP’s 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) as updated by POOLCORP’s subsequent filings with the SEC. In addition, this press release includes forward-looking statements and estimates regarding the effects of the Tax Cuts and Jobs Act, which are based on our current interpretation of this legislation and on reasonable estimates and may change as a result of new guidance issued by regulators or changes in our estimates.

CONTACT:
Curtis J. Scheel
Director of Investor Relations
985.801.5341
curtis.scheel@poolcorp.com

3



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

 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2018
 
2017
 
2018
 
2017
Net sales
$
811,311

 
$
743,401

 
$
2,455,015

 
$
2,278,005

Cost of sales
576,308

 
526,795

 
1,745,283

 
1,618,114

Gross profit
235,003

 
216,606

 
709,732

 
659,891

Percent
29.0
%
 
29.1
%
 
28.9
%
 
29.0
%
 
 
 
 
 
 
 
 
Selling and administrative expenses
142,666

 
134,678

 
421,812

 
392,779

Operating income
92,337

 
81,928

 
287,920

 
267,112

Percent
11.4
%
 
11.0
%
 
11.7
%
 
11.7
%
 
 
 
 
 
 
 
 
Interest and other non-operating expenses, net
4,931

 
4,009

 
14,449

 
11,608

Income before income taxes and equity earnings
87,406

 
77,919

 
273,471

 
255,504

Provision for income taxes
18,206

 
29,179

 
55,989

 
89,951

Equity earnings in unconsolidated investments, net
61

 
43

 
167

 
121

Net income
69,261

 
48,783

 
217,649

 
165,674

Net loss attributable to noncontrolling interest

 

 

 
294

Net income attributable to Pool Corporation
$
69,261

 
$
48,783

 
$
217,649

 
$
165,968

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
Basic
$
1.71

 
$
1.20

 
$
5.39

 
$
4.04

Diluted
$
1.66

 
$
1.16

 
$
5.20

 
$
3.89

Weighted average shares outstanding:
 
 
 
 
 
 
 
Basic
40,422

 
40,659

 
40,416

 
41,065

Diluted
41,797

 
42,207

 
41,831

 
42,691

 
 
 
 
 
 
 
 
Cash dividends declared per common share
$
0.45

 
$
0.37

 
$
1.27

 
$
1.05







4



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

 
 
 
September 30,
 
 
September 30,
 
 
Change
 
 
 
 
2018
 
 
2017
 
 
$
 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
35,693

 
$
36,398

 
$
(705
)
 
(2
)
%
 
Receivables, net (1)
 
90,775

 
 
90,142

 
 
633

 
1

 
 
Receivables pledged under receivables facility
 
196,998

 
 
172,654

 
 
24,344

 
14

 
 
Product inventories, net (2)
 
609,983

 
 
484,287

 
 
125,696

 
26

 
 
Prepaid expenses and other current assets
 
19,457

 
 
14,832

 
 
4,625

 
31

 
Total current assets
 
952,906

 
 
798,313

 
 
154,593

 
19

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment, net
 
109,942

 
 
103,880

 
 
6,062

 
6

 
Goodwill
 
189,029

 
 
189,024

 
 
5

 

 
Other intangible assets, net
 
12,305

 
 
13,206

 
 
(901
)
 
(7
)
 
Equity interest investments
 
1,163

 
 
1,168

 
 
(5
)
 

 
Other assets
 
18,413

 
 
16,333

 
 
2,080

 
13

 
Total assets
$
1,283,758

 
$
1,121,924

 
$
161,834

 
14

%
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
204,706

 
$
209,062

 
$
(4,356
)
 
(2
)
%
 
Accrued expenses and other current liabilities
 
75,639

 
 
87,887

 
 
(12,248
)
 
(14
)
 
 
Short-term borrowings and current portion of long-term debt
 
9,343

 
 
8,609

 
 
734

 
9

 
Total current liabilities
 
289,688

 
 
305,558

 
 
(15,870
)
 
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred income taxes
 
24,802

 
 
27,244

 
 
(2,442
)
 
(9
)
 
Long-term debt, net
 
571,360

 
 
555,964

 
 
15,396

 
3

 
Other long-term liabilities
 
25,170

 
 
22,614

 
 
2,556

 
11

 
Total liabilities
 
911,020

 
 
911,380

 
 
(360
)
 

 
Total stockholders’ equity
 
372,738

 
 
210,544

 
 
162,194

 
77

 
Total liabilities and stockholders’ equity
$
1,283,758

 
$
1,121,924

 
$
161,834

 
14

%

(1) 
The allowance for doubtful accounts was $5.4 million at September 30, 2018 and $4.1 million at September 30, 2017.
(2) 
The inventory reserve was $8.8 million at September 30, 2018 and $7.8 million at September 30, 2017.




5



POOL CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
 
 
Nine Months Ended
 
 
 
 
 
 
September 30,
 
 
 
 
 
 
2018
 
 
2017
 
 
Change
 
Operating activities
 
 
 
 
 
 
 
 
 
Net income
$
217,649

 
$
165,674

 
$
51,975

 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
 
Depreciation
 
19,499

 
 
17,947

 
 
1,552

 
 
Amortization
 
1,408

 
 
1,132

 
 
276

 
 
Share-based compensation
 
9,793

 
 
9,496

 
 
297

 
 
Equity earnings in unconsolidated investments, net
 
(167
)
 
 
(121
)
 
 
(46
)
 
 
Other
 
3,584

 
 
1,074

 
 
2,510

 
Changes in operating assets and liabilities, net of effects of acquisitions:
 
 
 
 
 
 
 
 
 
 
Receivables
 
(93,911
)
 
 
(90,204
)
 
 
(3,707
)
 
 
Product inventories
 
(80,142
)
 
 
9,057

 
 
(89,199
)
 
 
Prepaid expenses and other assets
 
143

 
 
(1,523
)
 
 
1,666

 
 
Accounts payable
 
(40,143
)
 
 
(27,328
)
 
 
(12,815
)
 
 
Accrued expenses and other current liabilities
 
13,547

 
 
26,816

 
 
(13,269
)
 
Net cash provided by operating activities
 
51,260

 
 
112,020

 
 
(60,760
)
 
 
 
 
 
 
 
 
 
 
 
Investing activities
 
 
 
 
 
 
 
 
 
Acquisition of businesses, net of cash acquired
 
(578
)
 
 
(6,879
)
 
 
6,301

 
Purchases of property and equipment, net of sale proceeds
 
(27,976
)
 
 
(37,709
)
 
 
9,733

 
Other investments, net
 

 
 
4

 
 
(4
)
 
Net cash used in investing activities
 
(28,554
)
 
 
(44,584
)
 
 
16,030

 
 
 
 
 
 
 
 
 
 
 
Financing activities
 
 
 
 
 
 
 
 
 
Proceeds from revolving line of credit
 
820,967

 
 
918,338

 
 
(97,371
)
 
Payments on revolving line of credit
 
(813,996
)
 
 
(857,609
)
 
 
43,613

 
Proceeds from asset-backed financing
 
193,400

 
 
156,600

 
 
36,800

 
Payments on asset-backed financing
 
(138,400
)
 
 
(97,800
)
 
 
(40,600
)
 
Proceeds from short-term borrowings and current portion of long-term debt
 
16,118

 
 
25,001

 
 
(8,883
)
 
Payments on short-term borrowings and current portion of long-term debt
 
(17,610
)
 
 
(17,497
)
 
 
(113
)
 
Payments of deferred financing costs
 
(8
)
 
 
(909
)
 
 
901

 
Payments of deferred and contingent acquisition consideration
 
(265
)
 
 
(199
)
 
 
(66
)
 
Purchase of redeemable noncontrolling interest
 

 
 
(2,573
)
 
 
2,573

 
Proceeds from stock issued under share-based compensation plans
 
12,732

 
 
8,647

 
 
4,085

 
Payments of cash dividends
 
(51,371
)
 
 
(43,165
)
 
 
(8,206
)
 
Purchases of treasury stock
 
(38,906
)
 
 
(141,580
)
 
 
102,674

 
Net cash used in financing activities
 
(17,339
)
 
 
(52,746
)
 
 
35,407

 
Effect of exchange rate changes on cash and cash equivalents
 
386

 
 
(248
)
 
 
634

 
Change in cash and cash equivalents
 
5,753

 
 
14,442

 
 
(8,689
)
 
Cash and cash equivalents at beginning of period
 
29,940

 
 
21,956

 
 
7,984

 
Cash and cash equivalents at end of period
$
35,693

 
$
36,398

 
$
(705
)
 


6



ADDENDUM

Base Business

The following table breaks out our consolidated results into the base business component and the excluded component (sales centers excluded from base business):
(Unaudited)
Base Business
Excluded
Total
(in thousands)
Three Months Ended
Three Months Ended
Three Months Ended
 
September 30,
September 30,
September 30,
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Net sales
$
800,971

 
$
738,391

 
$
10,340

 
$
5,010

 
$
811,311

 
$
743,401

 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
231,841

 
215,078

 
3,162

 
1,528

 
235,003

 
216,606

Gross margin
28.9
%
 
29.1
%
 
30.6
 %
 
30.5
 %
 
29.0
%
 
29.1
%
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses
139,392

 
132,663

 
3,274

 
2,015

 
142,666

 
134,678

Expenses as a % of net sales
17.4
%
 
18.0
%
 
31.7
 %
 
40.2
 %
 
17.6
%
 
18.1
%
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
92,449

 
82,415

 
(112
)
 
(487
)
 
92,337

 
81,928

Operating margin
11.5
%
 
11.2
%
 
(1.1
)%
 
(9.7
)%
 
11.4
%
 
11.0
%
(Unaudited)
Base Business
 
Excluded
 
Total
(in thousands)
Nine Months Ended
 
Nine Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
September 30,
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Net sales
$
2,419,766

 
$
2,266,386

 
$
35,249

 
$
11,619

 
$
2,455,015

 
$
2,278,005

 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
699,058

 
656,433

 
10,674

 
3,458

 
709,732

 
659,891

Gross margin
28.9
%
 
29.0
%
 
30.3
 %
 
29.8
 %
 
28.9
%
 
29.0
%
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses
409,791

 
388,299

 
12,021

 
4,480

 
421,812

 
392,779

Expenses as a % of net sales
16.9
%
 
17.1
%
 
34.1
 %
 
38.6
 %
 
17.2
%
 
17.2
%
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
289,267

 
268,134

 
(1,347
)
 
(1,022
)
 
287,920

 
267,112

Operating margin
12.0
%
 
11.8
%
 
(3.8
)%
 
(8.8
)%
 
11.7
%
 
11.7
%
We have excluded the following acquisitions from base business for the periods identified:


Acquired
 

Acquisition
Date
 
Net
Sales Centers
Acquired
 

Periods
Excluded
Tore Pty. Ltd. (Pool Power) (1)
 
January 2018
 
1
 
January - September 2018
Chem Quip, Inc. (1)
 
December 2017
 
5
 
January - September 2018
Intermark
 
December 2017
 
1
 
January - September 2018
E-Grupa
 
October 2017
 
1
 
January - September 2018
New Star Holdings Pty. Ltd. (Newline)
 
July 2017
 
1
 
January - September 2018 and July - September 2017
Lincoln Aquatics (1)
 
April 2017
 
1
 
January - July 2018
and May - July 2017
(1) 
We acquired certain distribution assets of each of these companies.


7



When calculating our base business results, we exclude sales centers that are acquired, closed or opened in new markets 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.
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 center count in the first nine months of 2018.
December 31, 2017
351

 
Acquired location
1

 
New locations
9

 
Consolidated location
(1
)
 
September 30, 2018
360

 

8



Adjusted EBITDA

We define Adjusted EBITDA as net income or net loss plus interest and other non-operating expenses, 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 used in 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
 
 
Nine Months Ended
 
(In thousands)
 
September 30,
 
 
September 30,
 
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
Net income
$
69,261

 
$
48,783

 
$
217,649

 
$
165,674

 
 
Add:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and other non-operating expenses (1)
 
4,931

 
 
4,009

 
 
14,449

 
 
11,608

 
 
Provision for income taxes
 
18,206

 
 
29,179

 
 
55,989

 
 
89,951

 
 
Share-based compensation
 
3,312

 
 
3,197

 
 
9,793

 
 
9,496

 
 
Equity earnings in unconsolidated investments
 
(61
)
 
 
(43
)
 
 
(167
)
 
 
(121
)
 
 
Depreciation
 
6,611

 
 
6,330

 
 
19,499

 
 
17,947

 
 
Amortization (2)
 
276

 
 
253

 
 
827

 
 
724

 
Adjusted EBITDA
$
102,536

 
$
91,708

 
$
318,039

 
$
295,279

 
(1) 
Shown net of interest income and includes amortization of deferred financing costs as discussed below.
(2) 
Excludes amortization of deferred financing costs of $194 and $136 for the three months ended September 30, 2018 and September 30, 2017, respectively, and $581 and $408 for the nine months ended September 30, 2018 and September 30, 2017, respectively.

The table below presents a reconciliation of Adjusted EBITDA to net cash provided by (used in) operating activities. Please see page 6 for our Condensed Consolidated Statements of Cash Flows.
(Unaudited)
 
Three Months Ended
 
 
Nine Months Ended
 
(In thousands)
 
September 30,
 
 
September 30,
 
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
Adjusted EBITDA
$
102,536

 
$
91,708

 
$
318,039

 
$
295,279

 
 
Add:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and other non-operating expenses, net of interest income
 
(4,737
)
 
 
(3,873
)
 
 
(13,868
)
 
 
(11,200
)
 
 
Provision for income taxes
 
(18,206
)
 
 
(29,179
)
 
 
(55,989
)
 
 
(89,951
)
 
 
Other
 
1,723

 
 
(1,048
)
 
 
3,584

 
 
1,074

 
 
Change in operating assets and liabilities
 
6,753

 
 
95,758

 
 
(200,506
)
 
 
(83,182
)
 
Net cash provided by operating activities
$
88,069

 
$
153,366

 
$
51,260

 
$
112,020

 

9