Q3 sales growth of 5%, including 3% from base business
Q3 diluted EPS of $0.45, adjusted diluted EPS up 18% to a record $0.59 (excluding goodwill impairment)
COVINGTON, La., Oct. 18, 2012 (GLOBE NEWSWIRE) -- Pool Corporation (Nasdaq:POOL) today reported results for the third quarter of 2012. "We realized strong third quarter results despite the challenging external environment and one less selling day than the third quarter of 2011. Solid execution across the company drove market share gains and resulted in a contribution margin from base business sales of over 24% year to date excluding the impact of goodwill impairment," said Manuel Perez de la Mesa, President and CEO. Net sales for the quarter ended September 30, 2012 increased 5% to $528.0 million, compared to $503.6 million in the third quarter of 2011. Base business sales were up 3% (over 4% on a same selling day basis), with 3% growth on the swimming pool side of the business and 8% on the irrigation side of the business. This growth is primarily attributable to market share gains, modest growth in consumer discretionary expenditures and some price inflation, offset by a 1% decline from the impact of unfavorable currency fluctuations. Gross profit for the third quarter of 2012 improved 2% to $151.5 million from $147.9 million in the comparable 2011 period. Gross profit as a percentage of net sales (gross margin) declined 70 basis points to 28.7% in the third quarter of 2012. The decrease in gross margin reflects a difficult comparison given the 60 basis point improvement in the third quarter last year, which included the benefit of 2011 mid-year vendor price increases. Unfavorable product and customer mix changes and continued competitive pricing pressures also contributed to the gross margin decline in the quarter.