QUOTE AND NEWS
Market Intelligence Center  May 8  Comment 
Pool Corp (NASDAQ: POOL) closed Tuesday's trading session at $51.07. In the past year, the stock has hit a 52-week low of $34.78 and 52-week high of $51.17. Pool (POOL) stock has been showing support around $49.63 and resistance in the $51.87...
StreetInsider.com  May 2  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Dividends/Pool+Corporation+%28POOL%29+Declares+%240.19+Quarterly+Dividend%3B+1.6%25+Yield/8301773.html for the full story.
Market Intelligence Center  May 2  Comment 
Pool Corp (NASDAQ: POOL) closed Wednesday's trading session at $47.68. In the past year, the stock has hit a 52-week low of $34.78 and 52-week high of $49.80. Pool (POOL) stock has been showing support around $46.67 and resistance in the $49.69...
Market Intelligence Center  Apr 26  Comment 
Pool Corp (NASDAQ: POOL) closed Thursday's trading session at $49.13. In the past year, the stock has hit a 52-week low of $34.78 and 52-week high of $49.80. Pool (POOL) stock has been showing support around $48.55 and resistance in the $50.09...
Market Intelligence Center  Apr 4  Comment 
Pool Corp (NASDAQ: POOL) closed Wednesday's trading session at $47.64. In the past year, the stock has hit a 52-week low of $34.78 and 52-week high of $48.29. Pool (POOL) stock has been showing support around $47.28 and resistance in the $48.26...
Market Intelligence Center  Mar 27  Comment 
Pool Corp (NASDAQ: POOL) closed Tuesday's trading session at $47.54. In the past year, the stock has hit a 52-week low of $34.78 and 52-week high of $48.14. Pool (POOL) stock has been showing support around $46.39 and resistance in the $48.35...
Market Intelligence Center  Mar 11  Comment 
Pool Corp (NASDAQ: POOL) closed Friday's trading session at $48.11. In the past year, the stock has hit a 52-week low of $34.78 and 52-week high of $48.12. Pool (POOL) stock has been showing support around $46.64 and resistance in the $48.86...
Market Intelligence Center  Mar 4  Comment 
Pool Corp (NASDAQ: POOL) closed Friday's trading session at $46.02. In the past year, the stock has hit a 52-week low of $34.75 and 52-week high of $47.37. Pool (POOL) stock has been showing support around $45.06 and resistance in the $46.62...
StreetInsider.com  Mar 4  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Dividends/Pool+Corporation+%28POOL%29+Declares+%240.16+Quarterly+Dividend%3B+1.4%25+Yield/8150005.html for the full story.
Market Intelligence Center  Feb 6  Comment 
Pool Corp (NASDAQ: POOL) closed Tuesday's trading session at $45.36. In the past year, the stock has hit a 52-week low of $34.18 and 52-week high of $46.56. Pool (POOL) stock has been showing support around $44.62 and resistance in the $46.02...




 
TOP CONTRIBUTORS

Pool Corporation (NYSE: POOL) is the largest wholesale distributor of swimming pool supplies and equipment worldwide. It's revenue comes from three sources: pool construction materials, pool maintenance and recreational equipment. Pool Corporation's net sales and income took a significant blow in 2007 due in large part to the 2007 Credit Crunch.[1] As home values fell and credit became harder to secure, it became more difficult to get financing for large home improvements such as building a pool. In addition, unusual weather, such as abnormally long winters in the Northeast and hurricanes in Florida have kept people out of the pools, leading to a decrease in net sales.[2] Those two factors are mitigated by the fact that Pool Corporation's pool maintenance sales have remained relatively steady and have served to dampen the decreased performance from its pool construction division.

Business and Financials

Pool Corporation is the largest wholesale distributor of swimming pool supplies and equipment worldwide. Its business focuses on buying products from manufacturers and then selling them to its customers on terms that are more favorable than the customers would have been able to obtain otherwise.[3] Pool Corporation sells products such as:

  • pool maintenance products
  • replacement parts
  • packaged pool kids
  • materials for pool construction and remodeling
  • irrigation and landscaping products
  • pool toys, games, furniture and grills[4]

Pool Corporation is divided into 3 networks:[5]

  • the SCP Distributors network--composed of 157 locations, 11 of which are in Europe.
  • the Superior Pool Products network--62 locations
  • Horizon network--62 locations

The SCP and Superior networks sell pool supplies and equipment. The Horizon network sells irrigation and landscape products.[6]

Image:POOL_Income.jpg[7]

The housing and credit crises of 2007 caused a decrease in Pool Corporation's net sales and income.[8] Home values fell and credit became harder to acquire, meaning it was more difficult to get financing for construction. Also, abnormally long winters in the Northeast and wet weather in Texas and Oklahoma adversely affected construction and repair activities.[9]

Network 12/31/2006 New Locations Consolidated & Closed Locations Acquired Locations 12/31/2007
SCP1346-30137
SPP621-1062
Horizon604-2062
Total Domestic25611-60261
SCP International1810120
Total27412-61281
[10]

Pool Corporation's locations varied very little in fiscal year 2007. Of all its domestic locations, the greatest concentration are found in California, Florida and Texas.[11] Therefore, factors such as abnormally wet weather in Texas as well as especially damaging hurricanes in Florida will have a much more adverse impact than if it happened in any other state, where the number of Pool Corporation locations is much smaller.

Trends and Forces

Pool Use, and thus Pool Corporation's Sales, are Heavily Weather-Dependent

Pool use is usually highest during the summer. However, unusually cold or wet weather can have a negative impact on sales. For example, Texas saw abnormally wet weather during the summer of 2007. Heavy storms kept people in their homes and out of the pool, thereby decreasing their use and adversely affecting pool installation and repair.[12] Uncooperative weather patterns led to a 3% decline in sales last year.[13]

You put the lime in the coconut and drink the atrcile up.

Decrease in New Pool Construction Mitigated by Revenue from Other Divisions

Florida is one of Pool Corporation's most important markets. 48,000 new pools were constructed in 2005, and only 23,000 were constructed in 2007. This year only 13,000 pools have been built.[14] In this market Pool Corporation's revenues from pool construction have taken a significant blow, dampened by their other businesses, namely pool maintenance, landscaping and recreational products. Those other businesses let Pool Corporation earn revenues of $800 million despite building fewer new pools.[15] Arizona, on the other hand, is a younger housing market, and thus Pool Corporation does not have as much of a presence there, meaning it cannot rely on sales from pool maintenance and recreational products to cover losses from a drop in new pool construction.[16] Thus, in some areas such as Florida, Pool Corporation is insulated from a decrease in new pool construction by its sales in pool maintenance products. However, in other markets where it does not have as much of a presence, the effect of a decrease in new pool construction has a much stronger effect.

Competition

Company 2007 Sales ($millions) Locations (2007) 2007 Revenue per Location ($millions)
Leslie's Poolmart*440.6[17]541[18]0.814
Pool Corp.1,928[19]281[20]6.861
Lowe's48,283[21]1,534[22]31.475
Home Depot77,349[23]2193[24]35.271
  • The data for Leslie's Poolmart is from 2006. It's the most recent data available.

Leslie's Poolmart is a privately-owned company that is in direct competition with Pool Corporation. They are the only two companies that sell pool products nationwide. The bulk of Pool Corporation's direct competition comes in the form of regional companies. Lowe's Companies (LOW) and Home Depot (HD) also compete with Pool Corporation, insomuch as pool equipment is concerned. They are both large department stores and thus their primary focus is not on pool equipment. However, their larger size gives them more access to money and distribution networks that are unavailable to Pool Corporation.

References

  1. POOL 2007 10-K. Item 7, Page 16.
  2. POOL 2007 10-K. Item 7, Page 16.
  3. POOL 2007 10-K. Item 1, Page 1.
  4. POOL 2007 10-K. Item 1, Page 3.
  5. POOL 2007 10-K. Item 1, Page 4.
  6. POOL 2007 10-K. Item 1, Page 4.
  7. POOL 2007 10-K. Item 6, Page 15.
  8. POOL 2007 10-K. Item 7, Page 16.
  9. POOL 2007 10-K. Item 7, Page 16.
  10. POOL 2007 10-K. Item 2, Page 10.
  11. POOL 2007 10-K. Item 2, Page 11.
  12. POOl 2007 10-K. Item 7, Page 16.
  13. Pool Corporation Q2 2008 Earnings Call Transcript
  14. "Pool Corporation Q2 2008 Earnings Call Transcript"
  15. "Pool Corporation Q2 2008 Earnings Call Transcript"
  16. "Pool Corporation Q2 2008 Earnings Call Transcript"
  17. Leslie's Poolmart Key Numbers-Hoover's
  18. Leslie's Poolmart, Inc. Products and Operations Archive-Hoover's
  19. POOL 2007 10-K. Item 6, Page 15.
  20. POOL 2007 10-K. Item 2, Page 11
  21. Portions of Lowe's 2007 Annual Report to Shareholders, Page 44
  22. LOW 2007 10-K. Item 1, Page 5
  23. HD 2007 10-K. Item 12, Page 59
  24. HD 2007 10-K. Item 2, Pages 10-11
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