pool-20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 0-26640


POOL CORPORATION
(Exact name of registrant as specified in its charter)

Delaware		36-3943363
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

109 Northpark Boulevard,
Covington,	Louisiana	70433-5001
(Address of principal executive offices)		(Zip Code)

(985) 892-5521

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	POOL	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of July 25, 2022, there were 39,590,630 shares of common stock outstanding.

POOL CORPORATION

Form 10-Q

For the Quarter Ended June 30, 2022

TABLE OF CONTENTS



			Page
PART I. FINANCIAL INFORMATION

	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	7

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

	Item 3. Quantitative and Qualitative Disclosures about Market Risk		30

	Item 4. Controls and Procedures		30

PART II. OTHER INFORMATION

	Item 1. Legal Proceedings		31

	Item 1A. Risk Factors		31

	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		31

	Item 6. Exhibits		32

SIGNATURE			33

PART I. FINANCIAL INFORMATION

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,
	2022		2021		2022		2021
Net sales	$	2,055,818	$	1,787,833	$	3,468,468	$	2,848,579
Cost of sales	1,389,014		1,236,148		2,354,474		1,995,762
Gross profit	666,804		551,685		1,113,994		852,817
Selling and administrative expenses	247,916		213,099		459,382		385,200

Operating income	418,888		338,586		654,612		467,617
Interest and other non-operating expenses, net	8,523		1,963		13,722		4,545
Income before income taxes and equity in earnings	410,365		336,623		640,890		463,072
Provision for income taxes	103,160		76,985		154,482		104,854
Equity in earnings of unconsolidated investments, net	78		57		136		132


Net income	$	307,283	$	259,695	$	486,544	$	358,350


Earnings per share attributable to common stockholders:
Basic	$	7.71	$	6.47	$	12.16	$	8.92
Diluted	$	7.63	$	6.37	$	12.03	$	8.78
Weighted average common shares outstanding:
Basic	39,660		40,125		39,795		40,169
Diluted	40,064		40,745		40,231		40,800

Cash dividends declared per common share	$	1.00	$	0.80	$	1.80	$	1.38

The accompanying Notes are an integral part of the Consolidated Financial Statements.

POOL CORPORATION

Consolidated Statements of Comprehensive Income

(Unaudited)

(In thousands)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net income	$	307,283	$	259,695	$	486,544	$	358,350
Other comprehensive (loss) income:
Foreign currency translation (losses) gains	(7,125)		1,302		(7,339)		34
Change in unrealized gains (losses) on interest rate swaps, net of change in taxes of $(1,631), $719, $(5,497), and $(2,327)	4,893		(2,157)		16,491		6,980
Total other comprehensive (loss) income	(2,232)		(855)		9,152		7,014
Comprehensive income	$	305,051	$	258,840	$	495,696	$	365,364

The accompanying Notes are an integral part of the Consolidated Financial Statements.

POOL CORPORATION

Consolidated Balance Sheets

(In thousands, except share data)


	June 30,		June 30,		December 31,
	2022		2021		2021
	(Unaudited)		(Unaudited)		(Audited)
Assets
Current assets:
Cash and cash equivalents	$	91,481	$	58,465	$	24,321
Receivables, net	239,639		210,318		155,259
Receivables pledged under receivables facility	516,946		375,248		221,312
Product inventories, net	1,579,101		894,654		1,339,100
Prepaid expenses and other current assets	43,317		18,716		29,093
Total current assets	2,470,484		1,557,401		1,769,085

Property and equipment, net	183,480		111,661		179,008
Goodwill	692,972		283,284		688,364
Other intangible assets, net	309,375		12,350		312,814
Equity interest investments	1,179		1,293		1,231
Operating lease assets	259,571		221,068		241,662
Other assets	45,044		26,978		37,967
Total assets	$	3,962,105	$	2,214,035	$	3,230,131

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	604,225	$	439,453	$