Business
Pool Corporation Reports Record 2019 Results and Provides 2020 Earnings Guidance
Highlights include: Record annual sales of $3.2 billion for 2019, up 7% from 2018 2019 operating margin of 10.7%, up 20 bps from 2018, with base business
About this update from Pool Corporation
[{"type":"text","content":"Highlights include:\n Record annual sales of $3.2 billion for 2019, up 7% from 2018 2019 operating margin of 10.7%, up 20 bps from 2018, with base business operating margin up 40 bpsRecord 2019 diluted EPS of $6.40 (including a $0.57 tax benefit), an increase of 14% over 2018Cash provided by operations of $298.8 million, an improvement of $180.1 million from 20182020 diluted EPS guidance range of $6.47 - $6.77, including an estimated $0.06 tax benefit; excluding the tax benefit in both years, the guidance range is an increase of 10% - 15% over 2019 COVINGTON, La., Feb. 13, 2020 (GLOBE NEWSWIRE) -- Pool Corporation (NASDAQ/GSM:POOL) today announced fourth quarter and full year 2019 results. “2019 was an exciting year for POOLCORP as we achieved record sales, operating margin and earnings per share. We also achieved a record return on invested capital of 29.3%. Our focus on market share gains and capacity creation allowed us to capitalize on our competitive advantages and deliver solid results, particularly considering the impact of weather on our results in the first half of the year,” commented Peter D. Arvan, president and CEO. Net sales increased 7% to a record high of $3.2 billion for the year ended December 31, 2019 compared to $3.0 billion in 2018. Base business sales increased 5% driven by our continued expansion in commercial and building material products and healthy demand for discretionary products, such as construction materials and products used in the remodel and replacement of in-ground pools. We achieved these favorable results despite inclement weather throughout much of the first half of the year. Gross profit reached a record $924.9 million for the year ended December 31, 2019, a 6% increase over gross profit of $870.2 million in 2018. Gross margin was relatively flat year over year at 28.9% in 2019 compared to 29.0% in 2018, with base business gross margin at 29.0% in both years. Selling and administrative expenses (operating expenses) increased 5% to $583.7 million in 2019, up from $556.3 million in 2018, with base business operating expenses up 3% over 2018. The increase in base business operating expenses was primarily attributable to higher growth-driven labor and freight expenses, as well as greater facility-related costs. Operating income for the year increased 9% to $341.2 million, up from $313.9 millio...