The company acquired Shoreline Pool Distribution in January 2024, adding one location in Mississippi. This continues the company's strategy of expanding its distribution network through acquisitions.

Management expects sales for the full year of 2024 to be flat to slightly positive, based on assumptions of normal weather patterns, sustained demand for maintenance products, and a flat to down 10% volume in discretionary products.

The company plans to invest 1.0% to 1.5% of net sales in capital expenditures for 2024, primarily focused on maintenance and growth of the sales center network, technology-related investments, and fleet vehicles.

Selling and administrative expenses increased 3% to $229.8 million, driven by rent and facility costs, wage increases, insurance costs, technology initiatives, and greenfield locations. This increase occurred despite a 7% decline in net sales.

Net inventory levels were reduced by $189.7 million, or 11%, compared to March 31, 2023, consistent with inventory management efforts executed over the 2023 swimming pool season following strategic buys in prior years.

The company continues to prioritize returning cash to shareholders through dividends and share repurchases. As of April 24, 2024, $283.8 million remained available for share repurchases under the current Board-approved program.

The filing acknowledges that operations and financial results are subject to various risks and uncertainties that could adversely affect the business. The company urges careful consideration of the risk factors discussed in the 2023 Annual Report on Form 10-K.

The document highlights the sensitivity of the business to weather conditions, noting that the first quarter of 2024 was the tenth wettest on record, leading to mixed impacts across markets. Unfavorable weather is expected to continue impacting sales.

The document cites macroeconomic conditions as a factor impacting sales, indicating concerns about consumer discretionary spending and the housing market. These conditions are expected to continue to present challenges.

The filing states that base business results for the quarter ended March 31, 2024, closely approximated consolidated results for the same period, indicating a stable competitive position in core markets.

Sales to retail customers decreased 4% in the first quarter of 2024 compared to the first quarter of 2023 and represented approximately 15% of total net sales. This indicates a potential weakening in the retail segment compared to other customer segments.

Sales to commercial swimming pool customers were flat in the first quarter of 2024 compared to the first quarter of 2023 and represented approximately 5% of net sales. This indicates a stable position in the commercial segment.

Operating expenses increased to 20.5% of net sales in the first quarter of 2024 compared to 18.6% in the same period of 2023, indicating a decrease in operational efficiency as expenses grew faster than sales.

Inventory turns, as calculated on a trailing four quarters basis, were 2.7 times at March 31, 2024 and 2.5 times at March 31, 2023, indicating improved inventory management.

Gross margin benefited from ongoing supply chain management initiatives, indicating that these efforts are contributing to improved cost control and efficiency.

Technology initiatives are listed as a driver of increased selling and administrative expenses, suggesting ongoing investments in this area. However, the specific nature and impact of these initiatives are not detailed.

Total debt outstanding was $979.2 million at March 31, 2024, down $386.6 million from March 31, 2023, as the company has used operating cash flows to reduce debt over the past year.

As of April 24, 2024, $283.8 million remained available to purchase shares of common stock under the current Board-approved share repurchase program, indicating a continued commitment to returning capital to shareholders.

Capital spending primarily relates to leasehold improvements, delivery and service vehicles and information technology. In recent years, the company has increased its investment in technology and automation.

The document cites macroeconomic conditions as a factor impacting sales, indicating concerns about consumer discretionary spending and the housing market.

The document cites weather conditions as a factor impacting sales, indicating concerns about consumer discretionary spending and the housing market.