Business
Pool Corporation Reports Record First Quarter Results
HighlightsNet sales growth of 2% for Q1 2019, with 1% growth in base business salesGross margin growth of 90 basis points and operating income growth of 14%Q1
About this update from Pool Corporation
[{"type":"text","content":"HighlightsNet sales growth of 2% for Q1 2019, with 1% growth in base business salesGross margin growth of 90 basis points and operating income growth of 14%Q1 2019 diluted EPS increase of 7% to $0.80 or an increase of 11% to $0.59, excluding tax benefitsUpdates 2019 earnings guidance range to $6.09 - $6.39 per diluted share from previous $6.05 - $6.35 rangeCOVINGTON, La., April 18, 2019 (GLOBE NEWSWIRE) -- Pool Corporation (NASDAQ/GSM:POOL) today reported record results for the first quarter of 2019.\"I am pleased to report a solid first quarter of 2019 despite wetter and cooler conditions throughout most of the quarter in some of our major markets. Our team's strong execution, coupled with modest top line growth, delivered favorable results in the quarter,\" said Peter D. Arvan, President and CEO.Net sales increased 2% to a record $597.5 million in the first quarter of 2019 compared to $585.9 million in the first quarter of 2018, while base business sales grew 1%. Cooler and wetter weather, particularly in the western US, combined with a later Easter holiday impacted first quarter sales. Pool openings and normal spring early buys from customers in seasonal markets are influenced by the timing of the Easter holiday. In addition, sales were negatively impacted approximately 2% by the loss of a selling day compared to the first quarter of 2018 and 1% from unfavorable currency exchange rates.Gross profit increased 5% to a record $174.6 million in the first quarter of 2019 from $166.1 million in the same period of 2018. Base business gross profit improved 4% over the first quarter of 2018, including a negative currency exchange impact of 1%. Gross margin increased 90 basis points to 29.2% in the first quarter of 2019 compared to 28.3% in the first quarter of 2018, reflecting benefits from our strategic inventory purchases in 2018 and lower customer early buys.Selling and administrative expenses (operating expenses) increased 3% to $136.2 million in the first quarter of 2019 compared to the first quarter of 2018. Base business operating expenses were up 1% over the comparable 2018 period including a 1% currency benefit. As a percentage of net sales, base business operating expenses increased to 22.6% in the first quarter of 2019 compared to 22.5% in the first quarter of 2018.Operating income for the first quarter of 2019 increased to...