Pool Corporation Reports Record Second Quarter Results

Highlights
  • Net sales growth of 8% with base business net sales growth of 7% for Q2 2017
  • Q2 2017 diluted EPS increased 12% to $2.21, with year to date diluted EPS up 16% to a record $2.73
  • Affirms 2017 earnings guidance range of $4.12 - $4.32 per diluted share

COVINGTON, La., July 20, 2017 (GLOBE NEWSWIRE) -- Pool Corporation (NASDAQ:POOL) today reported record results for the second quarter of 2017.

"Our second quarter results show solid sales and earnings growth, founded on strong execution.  Our continued focus on improving operational leverage enabled us to create real value for our customers and suppliers.  As we pass the halfway mark of 2017, we are pleased to affirm that we are on track to meet expectations," said Manuel Perez de la Mesa, President and CEO.

Net sales for the second quarter of 2017 increased 8% to a record $988.2 million compared to $918.9 million in the second quarter of 2016.  We realized base business sales growth of 7% over the same period last year, with increases in swimming pool repair and remodel activities, including major pool refurbishment and replacement of key pool equipment.

Gross profit for the second quarter of 2017 increased 7% to a record $289.7 million from $270.7 million in the same period of 2016.  Base business gross profit improved 6% over the second quarter of last year.  Gross profit as a percentage of net sales (gross margin) was 29.3% for the second quarter of 2017 compared to 29.5% for the second quarter of 2016.  Gross margin decreased approximately 15 basis points from the second quarter of 2016, which comes on top of a 30 basis point increase in the first quarter of 2017.

Selling and administrative expenses (operating expenses) increased approximately 6% to $135.5 million in the second quarter of 2017 compared to the second quarter of 2016, with base business operating expenses up 5% over the comparable 2016 period. The increase in operating expenses is in line with the increase in sales growth, which resulted in operating expenses as a percentage of net sales of 14% for both the second quarter of 2017 and 2016.  The increase includes seasonally higher growth-driven labor and freight expenses, as well as higher employee-related insurance costs. 

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