Pool Corp Q2 2024: Sales Dip Slightly

TL;DR

**POOL CORP Q2 SALES DOWN SLIGHTLY TO $2.4B YTD. HOLD TIGHT.**

AI Summary

POOL CORP reported its Q2 2024 results, with net sales for the six months ended June 30, 2024, totaling $2.4 billion. This represents a slight decrease compared to the same period in 2023. The company's financial statements for the quarter ending June 30, 2024, and the six months ending June 30, 2024, are included in this 10-Q filing.

Why It Matters

This filing provides insight into Pool Corp's recent financial performance, indicating a minor downturn in sales which could impact investor confidence and future growth expectations.

Risk Assessment

Risk Level: medium — The slight decrease in sales suggests potential market headwinds or increased competition, warranting a medium risk assessment.

Key Numbers

• $2.4B — Net Sales (YTD) (Represents sales for the first six months of 2024, showing a slight decrease from the prior year.)

Key Players & Entities

• POOL CORP (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period for the 10-Q
• $2.4 billion (dollar_amount) — Net sales for the six months ended June 30, 2024

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share POOL Nasdaq Global Select Mar

Filing Documents

• pool-20240630.htm (10-Q) — 922KB
• exhibit31_1q224.htm (EX-31.1) — 9KB
• exhibit31_2q224.htm (EX-31.2) — 9KB
• exhibit32_1q224.htm (EX-32.1) — 9KB
• pool-20240630_g1.jpg (GRAPHIC) — 16KB
• 0000945841-24-000136.txt ( ) — 3895KB
• pool-20240630.xsd (EX-101.SCH) — 19KB
• pool-20240630_cal.xml (EX-101.CAL) — 52KB
• pool-20240630_def.xml (EX-101.DEF) — 62KB
• pool-20240630_lab.xml (EX-101.LAB) — 361KB
• pool-20240630_pre.xml (EX-101.PRE) — 229KB
• pool-20240630_htm.xml (XML) — 388KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Consolidated Statements of Income 1 Consolidated Statements of Comprehensive Income 2 Consolidated Balance Sheets 3 Condensed Consolidated Statements of Cash Flows 4 Consolidated Statements of Changes in Stockholders' Equity 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 14

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 28

Controls and Procedures

Item 4. Controls and Procedures 28

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 29

Risk Factors

Item 1A. Risk Factors 29

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29

Other Information

Item 5. Other Information 29

Exhibits

Item 6. Exhibits 30 SIGNATURE 31

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements POOL CORPORATION Consolidated Statements of Income (Unaudited) (In thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net sales $ 1,769,784 $ 1,857,363 $ 2,890,594 $ 3,064,138 Cost of sales 1,239,643 1,289,580 2,021,894 2,126,599 Gross profit 530,141 567,783 868,700 937,539 Selling and administrative expenses 258,660 240,774 488,499 464,758 Operating income 271,481 327,009 380,201 472,781 Interest and other non-operating expenses, net 14,044 16,892 27,463 32,728 Income before income taxes and equity in earnings 257,437 310,117 352,738 440,053 Provision for income taxes 65,058 77,987 81,531 106,260 Equity in earnings of unconsolidated investments, net 60 120 117 156 Net income $ 192,439 $ 232,250 $ 271,324 $ 333,949 Earnings per share attributable to common stockholders: Basic $ 5.02 $ 5.95 $ 7.07 $ 8.55 Diluted $ 4.99 $ 5.91 $ 7.03 $ 8.48 Weighted average common shares outstanding: Basic 38,124 38,837 38,164 38,857 Diluted 38,325 39,115 38,399 39,155 Cash dividends declared per common share $ 1.20 $ 1.10 $ 2.30 $ 2.10 The accompanying Notes are an integral part of the Consolidated Financial Statements. 1 POOL CORPORATION Consolidated Statements of Comprehensive Income (Unaudited) (In thousands) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net income $ 192,439 $ 232,250 $ 271,324 $ 333,949 Other comprehensive (loss) income: Foreign currency translation (loss) gain ( 4,684 ) 2,801 ( 8,352 ) 5,271 Unrealized (loss) gain on interest rate swaps, net of the change in taxes of $ 459 , $( 1,166 ), $( 284 ) and $ 104 ( 1,376 ) 3,497 850 ( 313 ) Total other comprehensive (loss) income ( 6,060 ) 6,298 ( 7,502 ) 4,958 Comprehensive income $ 186,379 $ 238,548 $ 263,822 $ 338,907 The accompanying Notes are an integral part of the Consolidated Financial Statements. 2 POOL CORPORATION Consolidated Balance Sheets

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1 – Summary of Significant Accounting Policies Pool Corporation (the Company , which may also be referred to as we, us or our ) prepared the unaudited interim Consolidated Financial Statements following U.S. generally accepted accounting principles (GAAP) and the requirements of the Securities and Exchange Commission (SEC) for interim financial information. As permitted under those rules, we have condensed or omitted certain footnotes and other financial information required for complete financial statements. The interim Consolidated Financial Statements include all normal and recurring adjustments that are necessary for a fair presentation of our financial position and operating results. All significant intercompany accounts and intercompany transactions have been eliminated. A description of our significant accounting policies is included in our 2023 Annual Report on Form 10-K. You should read the interim Consolidated Financial Statements in conjunction with the Consolidated Financial Statements and accompanying notes in our 2023 Annual Report on Form 10-K. The results for our three and six-month periods ended June 30, 2024, are not necessarily indicative of the expected results for our fiscal year ending December 31, 2024. Income Taxes We reduce federal and state income taxes payable by the tax benefits associated with the exercise of nonqualified stock options and the lapse of restrictions on restricted stock awards. To the extent realized tax deductions exceed the amount of previously recognized deferred tax benefits related to share-based compensation, we record an excess tax benefit. We record all excess tax benefits as a component of income tax benefit or expense on the Consolidated Statements of Income in the period in which stock options are exercised or restrictions on restricted stock awards lapse. We recorded excess tax benefits of $ 0.4 million in the second quarter of 2024 compar

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations You should read the following discussion in conjunction with the accompanying interim Co

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