The company plans to broaden its geographic presence by opening 8 to 10 new sales centers in 2025 and by making selective acquisitions when appropriate opportunities arise. This indicates a continued focus on expansion and market penetration.

The company is continuing investment in technological solutions to enhance customer service and improve efficiency. This suggests a strategic emphasis on digital transformation and leveraging technology for competitive advantage.

The company expects sales to be flat to a low single digit increase compared to 2024, impacted by normal weather patterns, sustained demand for pool maintenance products, and similar volumes of discretionary products. This suggests a cautious outlook due to macroeconomic uncertainties.

Inventory management efforts reduced inventory levels by 6% to $1.3 billion, outpacing the 4% decline in net sales. This demonstrates effective management of working capital and responsiveness to changing market conditions.

The company manages discretionary spending and continues to leverage existing infrastructure. Close management of variable costs partially mitigated expense growth, demonstrating a commitment to operational efficiency.

The company used operating cash flows to reduce debt by $103.0 million and fund share repurchases and dividend payments. This reflects a balanced approach to capital allocation, prioritizing both debt reduction and shareholder returns.

The document states that demand for products is subject to fluctuations and is difficult to predict, often due to factors outside of the company's control. Consumer discretionary spending significantly affects sales and is impacted by a variety of factors, including changes in general economic conditions, the housing market, unemployment rates, wage levels, interest rate fluctuations, inflation, disposable income levels, consumer confidence and access to credit.

The document states that weather is one of the principal external factors affecting the business and the effect of seasonality has a significant impact on results. Unfavorable weather during peak seasons can significantly affect results, and extreme weather events and natural disasters may adversely impact the company in several ways.

The document states that the failure to prevent unauthorized access to the company's data or the personal data of its customers or suppliers could put the company at a competitive disadvantage. Such a breach could result in damage to the company's reputation and subject it to potential litigation, liability, fines and penalties and require it to incur significant expense to address and remediate or otherwise resolve these issues.

The document states that the company faces intense competition from many regional and local distributors, mass market retailers, and large pool or irrigation supply retailers. This highlights the competitive pressures in the industry.

The document states that new competitors may emerge as there are low barriers to entry in the industry, which has led to highly competitive markets. This indicates a potential risk of increased competition in the future.

The document states that the company believes its high customer service levels and expanded product offerings have enabled it to gain market share historically. This suggests a focus on differentiation and value proposition to maintain a competitive edge.

The document states that the company utilizes warehouse management technology to optimize receiving, inventory control, picking, packing and shipping functions. This indicates a focus on improving operational efficiency through technology.

The document states that the company evaluates its sales centers based on their performance relative to predetermined standards that include both financial and operational measures. This suggests a focus on monitoring and improving sales center performance.

The document states that the company's preferred vendor program encourages its distribution networks to stock and sell products from a smaller number of vendors offering better overall terms and service to optimize profitability and shareholder return.

The document states that the company invests in technology to better serve customers and use information to make better data-driven decisions. This includes the POOL360 digital ecosystem, which is a suite of SaaS products transforming the way pool professionals do business.

The document states that the company offers a growing selection of energy-efficient and environmentally friendly products, which support sustainability and can help pool owners save energy, water, time and money over time. This suggests a focus on innovation and sustainability.

The document states that the company offers virtual tools for homeowners to select and design their pool and outdoor environments, collaborating with their chosen contractors to install these products. This indicates a focus on leveraging technology to enhance the customer experience.

The document states that the company prioritizes its use of cash based on investing in the business, maintaining a prudent capital structure, including a modest amount of debt, and returning cash to its shareholders through dividends and share repurchases. This reflects a balanced approach to capital allocation.

Based on management's current plans, the company projects capital expenditures for 2025 will average 1% to 1.5% of net sales. This indicates a continued investment in the business to support growth.

The document states that the company expects to continue to use cash for the payment of cash dividends as and when declared by the Board and to fund opportunistic share repurchases over the next year. This reflects a commitment to returning value to shareholders.

The document states that the company is committed to sustainable business practices, which includes offering energy-efficient and environmentally-friendly products to its customers, closely monitoring its sourcing activities, and being good stewards within the communities it serves.

The document states that the company's goal is to be an Employer of Choice by focusing on the engagement, development, retention, and health and well-being of its employees. This reflects a commitment to social responsibility.

The document states that the company is subject to numerous federal, state, local and international laws and regulations, many of which are complex and subject to varying interpretations, including regulations related to employment, environmental, health, transportation and safety requirements.

The document states that certain trends in the housing market, the cost and availability of consumer credit and general economic conditions affect the industry, particularly the installation of new pools and irrigation systems, as well as the timing and extent of pool remodels, equipment replacements, landscaping projects and outdoor living space renovations.

The document states that the contributory effects of the geopolitical conflicts in the Middle East, Russia or Ukraine may result in higher inflation, labor costs, energy and commodity prices and costs of materials and services, which could negatively affect the business.

The document states that concerns over changing climate patterns have led to, and may in the future lead to, new or increased legal and regulatory requirements designed to reduce or mitigate the effects of changing climate patterns, which could increase the company's compliance obligations.