Our primary emphasis in promoting the young swimming pool industry has resulted in a 143% increase in consumer contacts. Our sales and marketing programs, designed to help grow our customers’ businesses, increased sales by 21% for participating customers. The continuous investment in people and technology resulted in improved service levels, reduced slow moving inventory, and provided better management disciplines. A highlight of this effort is reflected in what we have accomplished in our distribution methods. For the 2003 season, 99% of our business will operate on the same software platform. In addition, we have increased hardware capabilities to enhance field service levels and reduce the risk of downtime in the event of a man-made or a natural disaster.

We are fortunate in many respects. The swimming pool industry is young and provides an attractive value to consumers at virtually every income level. Our position in the industry is unique and enables us to provide truly exceptional value to both customers and suppliers. We have extraordinary employees with a strong desire to serve their customers and to achieve exceptional results. We are also very privileged to have the solid foundation provided by those that have come before us and served the company well for many years.

One such person is Frank St. Romain, who started South Central Pool Supply in 1980 with the long term vision of becoming a regional distribution company in the promising swimming pool industry. At the end of 1993, South Central Pool Supply became the first acquisition made by SCP Pool Corporation and Frank became SCP’s first president. In the following five years, SCP established itself as the largest distributor in the industry.  At the end of 1998, Frank retired from management but continued to serve the Company as a member of the Board of Directors. Frank has chosen to fully retire effective with the May 2003 stockholders’ meeting. We are very fortunate for Frank’s service to SCP and the swimming pool industry. His strong character, leadership abilities, and business instincts are well regarded by all who have known him.  We wish Frank the very best as he enjoys his family, his boat, and his many friends.

     
 
     
Manuel J. Perez de la Mesa
President and Chief Executive Officer
 
Wilson B. Sexton
Chairman of the Board