Pool Corporation (POOL)

Sector: Industrials|Industry: Industrial Distribution|Market Cap: $12.91B|Employees: 6K


Pool Corporation is the world's largest wholesale distributor of swimming pool supplies, equipment, and related leisure products. They are also a leading distributor of irrigation and landscape maintenance products in the United States. The company operates through five distribution networks across North America, Europe, and Australia, adding value by efficiently distributing products from numerous manufacturers to their customer base.

  1. Filings
  2. Company Profile

Business Summary

Pool Corporation is the world's largest wholesale distributor of swimming pool supplies, equipment, and related leisure products. It is also a leading distributor of irrigation and landscape maintenance products in the United States. The company adds value by purchasing products from numerous manufacturers and efficiently distributing them to customers. Pool Corporation operates through five distribution networks and serves a fragmented market. The company's competitive advantages include its broad product assortment, extensive sales center network, and customer support programs.

Key Statistics

  • Employees: Approximately 6,000 (as of December 31, 2023)
  • Geographic Footprint: North America, Europe, and Australia
  • Headquarters: Covington, Louisiana
  • Founded: Not explicitly stated in the filing
  • Number of locations/facilities: 439 sales centers (as of December 31, 2023)
  • Revenue: $5.54 billion (FY2023)
  • Market Capitalization: $14.21 billion (as of June 30, 2023)
  • Key Subsidiaries/Brands: SCP Distributors, Superior Pool Products, Horizon Distributors, National Pool Tile, Sun Wholesale Supply

Leadership

  • CEO: Peter D. Arvan
  • CFO: Melanie M. Housey Hart
  • Board Chair: John E. Stokely
  • Other Key Executives: Walker F. Saik (Chief Accounting Officer and Corporate Controller)

The filing does not provide specific tenure or background information for the executives listed.

Key Financial Metrics

  • Annual Revenue: $5.54 billion (FY2023)
  • Net Income: $523.2 million (FY2023)
  • Market Cap: $14.21 billion (as of June 30, 2023)
  • Total Assets: $3.43 billion (as of December 31, 2023)
  • Employees: Approximately 6,000 (as of December 31, 2023)
  • Key Financial Highlights: Net sales decreased by 10% compared to 2022. Gross profit decreased by 14%. Operating income decreased by 27%. Net income decreased by 30%.

Products and Services

Pool Corporation offers a comprehensive selection of products, including:

  • Maintenance Products: Chemicals, supplies, and pool accessories
  • Repair and Replacement Parts: Cleaners, filters, heaters, pumps, and lights
  • Building Materials: Concrete, plumbing, electrical components, pool surfaces, decking, tile, and natural stone
  • Pool Equipment and Components: For new pool construction and remodeling
  • Irrigation and Related Products: System components and turf care equipment
  • Commercial Pool Products: Heaters, safety equipment, decking, and pumps
  • Fiberglass Pools and Hot Tubs: Packaged pool kits
  • Other Pool Construction and Recreational Products: Grills and components for outdoor kitchens

Key Business Segments

Pool Corporation operates through five distribution networks:

  • SCP Distributors (SCP): Distributes swimming pool supplies, equipment and related leisure products.
  • Superior Pool Products (Superior): Distributes swimming pool supplies, equipment and related leisure products.
  • Horizon Distributors (Horizon): Distributes irrigation, landscape maintenance and related products.
  • National Pool Tile (NPT): Distributes swimming pool tile, decking materials and interior pool surfacing products.
  • Sun Wholesale Supply (Sun Wholesale): Distributes swimming pool supplies, equipment and related leisure products, primarily servicing Pinch A Penny franchise locations.

The company does not provide a revenue breakdown by segments. The majority of sales are in North America, with a smaller percentage in Europe and Australia.

Business Strategy

Pool Corporation's core strategies include:

  • Promoting the growth of the industry through advertising and promotional programs
  • Promoting the growth of their customers' businesses by offering the broadest product assortment and support programs
  • Operating more effectively by continuously focusing on improvements in operations

The company is investing in digital transformation and technology to improve customer service. Strategic initiatives include expanding product offerings, penetrating new markets, and making strategic acquisitions. The company aims to realize sales growth through market share gains and expansion of proprietary and exclusive brand products.

Industry Context

Pool Corporation operates in the highly fragmented swimming pool and irrigation industries. Key aspects of the industry include:

  • Primary Industry: Wholesale distribution of swimming pool supplies, equipment, and related leisure products, as well as irrigation and landscape maintenance products.
  • Market Trends: Long-term growth in housing units in warmer climates, increased homeowner spending on outdoor living spaces, and a focus on environmentally sustainable products.
  • Major Competitors: Regional and local distributors, national wholesale distributors of irrigation and landscape supplies, mass market retailers, and large pool supply retailers.
  • Market Share: Not explicitly stated in the filing.

Risk Factors

  • Macroeconomic Risks: Demand for products may be affected by unfavorable economic conditions and changes in consumer discretionary spending, including fluctuations in interest rates, inflation, and consumer confidence.
  • Weather Risks: Adverse weather conditions can negatively impact sales, particularly during peak seasons for swimming pool use and irrigation activities. Climate change could intensify these risks.
  • Supplier Risks: The company's business is dependent on maintaining favorable relationships with suppliers. Disruptions in the supply chain or decisions by suppliers to sell directly to retailers could negatively impact the business.
  • Competition Risks: The company faces intense competition from various distributors, mass market retailers, and other leisure product alternatives. Increased competition could negatively impact sales and profitability.
  • Cybersecurity Risks: The company relies on information technology systems and is vulnerable to cyber-attacks, which could disrupt operations and result in loss of sensitive data.

Last Updated

2024-02-27

(Generated from latest 10-K filing)