Forward-Looking Statements
This presentation includes forward-looking statements that involve risks and uncertainties that are generally identifiable through the use of words such as "believe", "expect", "anticipate", "intend", "plan", "estimate", "project", "should", "will", "may", and similar expressions and include projections of earnings. The forward-looking statements in this presentation 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 presentation, 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 economic conditions, consumer discretionary spending, the housing market, inflation or interest rates, our ability to maintain favorable relationships with suppliers and manufacturers, the extent to which home-centric trends will moderate or reverse, competition from other leisure product alternatives or mass merchants, our ability to execute our growth strategies, changes in the regulatory environment, new or additional taxes, duties or tariffs, excess tax benefits or deficiencies recognized under ASU 2016-09 and other risks detailed in POOLCORP's 2022 Annual Report on Form 10-K, 2023 Quarterly Reports on Form 10-Q and other reports and filings filed with the Securities and Exchange Commission (SEC) as updated by POOLCORP's subsequent filings with the SEC.
This presentation may also contain references to certain non-GAAP financial measures as defined by the SEC. A reconciliation of non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles can be found in the Appendix at the end of this presentation or, if applicable, at https://ir.poolcorp.com/non-GAAP-financial-measures, or in the Company's most recent earnings release, which was furnished in our Current Report on Form 8-K filed with the SEC.
2
POOL Profile
#1 worldwide distributor of
swimming pool-related outdoor
living products
Technology-enabled B2B &
retailer support services
125,000+ professional contractor & retailer customers, including over
270 independently-owned Pinch A Penny Pool Patio Spa franchised
stores
$6.2 billion in sales through over 430 Sales Centers in 41 U.S. states, 12 countries
Swimming pool, hardscapes &
outdoor living, irrigation &
landscape maintenance products
Over 200,000 products across more than 50 product categories from over 2,200 suppliers
Strong Growth History
Net Sales (billions)
$6.2
17%
CAGR$5.3
$3.9
$2.8 $3.0 $3.2
2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
3
POOLCORP Global Sales Center Network
2022
2021
2020
2019
2018
-
of Total Revenue
88%
86%
86%
85%
85%
8% 4%
8% 6%
8% 6%
9% 6%
9% 6%
Global Network | Sales |
Centers(1) | |
North America Pool | 318 |
Irrigation & Landscape | 92 |
Maintenance | |
Europe & Other Int'l | 24 |
Total | 434 |
(1)As of September 2023
0 | 50 | 100 | 150 | 200 | 250 | 300 | 350 | 400 | 450 |
North America Pool | Irrigation & Landscape Maintenance | Europe & Other International | |||||||
'Powerful & growing integrated global sales & distribution networks'
Source: Company information
4
POOL 2022 Estimated Sales Profile
New Pool
Construction
17%
Renovation &
Remodel
22%
DIY Retail & Maintenance
Service
61%
Discretionary
17%
Construction-related & equipment products
Contractor & Pool professional building mat'ls, equipment & accessory products
Somewhat
Discretionary 22%
Non-Discretionary 61%
Maintenance
supplies, replacement
- minor repair products
At wholesale value
Source: Company estimates & industry data
'Growing installed base driving non-discretionary, recurring sales'
5
POOL North America 'Blue' Product Sales
Chemicals
13%
All Other
Categories
36%
Commercial Pool | |||||
Products | |||||
4% | Hardscapes & | ||||
Outdoor Living | |||||
Equipment - Pumps & | |||||
Automation & | |||||
4% | |||||
Controls | Accessories | ||||
5% | 9% |
Pool Construction
Mat'ls & Tile
9%
Equipment - Filters,
Automatic Cleaners &
Accessories
10%
Equipment -
Heaters &
Accessories
10%
o Broad, highly fragmented & diverse product assortment
o Expanding product categories to additional sales centers as we grow
o No single category represents over 10% of sales, except non-discretionary Chemicals
Source: Company information'Broad, diverse product assortment; more than 200,000 products from over 2,200 suppliers'
6
PoolCorp Revenue Growth
30%-35%
Inflation
2019
Sales
~7%
Installed
base
growth
~9%
New pool
construction
25%-30%
Market share, new products, higher content spend
~17%
Acquisitions
- 93% total revenue growth over 3-year period
- Significant contributions from share gains, new products, acquisitions
- Highest 3-year new pool construction & installed base growth since 2007
- Price inflation embedded in industry
- No historical precedent for industry price deflation
Source: Company financial data & estimates
'Gaining share in a growing industry'
7
Long-Term Gross Margin Enhancement
Historical
approximate gross margin
Pinch A
Penny higher
margin profile contribution
Private label
products
expansion & product mix
Supply chain management
- product procurement enhancement
-
CSL
operations, freight cost
-
CSL
management
30.0%
Centralized
pricing
administration
- market pricing
customization
& estimates | 'Higher gross margin level from accretive acquisition & scale efficiency contributions' | |
Source: Company Financial Data | ||
8
Financial Performance
Net Sales | Gross Profit Margin | Operating Margin | |||||
(in millions) | |||||||
$6,180 | 30.5% | 31.3% | 16.6% | ||||
15.7% | |||||||
28.9% | 29.0% | 28.9% | 28.7% | ||||
$5,296 | |||||||
11.8% | |||||||
$3,937 | 10.2% | 10.5% 10.7% | |||||
$2,788 $2,998
$3,200
'Consistent sales growth, stable gross margin and operating leverage'
Source: Company Financial Data
9
Financial Performance
Diluted Earnings per Share | Adjusted EBITDA1 |
(in millions) |
$18.70
$1,079
$15.97
$875
$8.97 | $513 | ||||
$5.62 | $6.40 | $322 | $353 | $382 | |
$4.51 | |||||
1 See Appendix for Reconciliation of Adjusted EBITDA
Free Cash Flow2
(in millions)
$441
$376
$266$275
$136
$87
2 Cash Flow from Operating Activities - Capital Expenditures
'Strong earnings growth and cash flow generation'
Source: Company financial data
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Pool Corporation published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 13:43:37 UTC.