| |
| 11. |
Stock Option and Stock Purchase Plans
(continued) |
In May 2002, our stockholders
approved the 2002 Long-Term Incentive Plan (the 2002 Plan), which
authorizes the Board to grant stock options and restricted stock
awards to employees, agents, consultants or independent contractors.
No more than 700,000 shares may be issued under this plan. As of
December 31, 2002, no shares were issued under the 2002 Plan. Granted
options will have an exercise price equal to our stock’s market
price on the grant date. These options generally may be exercised
three or more years after the grant date, and they expire ten years
after the grant date.
The SCP Pool Corporation Non-Employee
Directors Equity Incentive Plan permits the Board to grant stock
options to each non-employee director. No more than 600,000 shares
may be issued under this plan. In 2002, we granted 42,500 options
to the non-employee directors. As of December 31, 2002,
177,345 shares were available for grant. The exercise price of the
granted options was equal to our stock’s market price on the
grant date. The options generally may be exercised one year after
the grant date, and they expire ten years after the grant date.
In March 1998, the Board adopted
the SCP Pool Corporation Employee Stock Purchase Plan. Under this
plan, employees who meet minimum age and length of service requirements
may purchase stock at 85% of the lower of:
- The closing price of our common stock at
the end of a six month period ending either June 30 or December 31;
or
- The average of the beginning and ending closing
prices of our common stock for such six month period.
No more than 425,000 shares of
our common stock may be issued under this plan. In 2002, we issued
22,025 shares under this plan, and 326,740 shares remained available
at December 31, 2002.
| 12. |
Quarterly Financial Data (Unaudited)
|
The table below summarizes the
unaudited quarterly operating results of operations for the past
two years (in thousands, except per share data):
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Quarter |
| |
|
|
|
2002
|
|
2001
|
| |
|
|
|
First |
|
|
Second |
|
|
Third |
|
|
Fourth |
|
|
First |
|
|
Second |
|
|
Third |
|
|
Fourth |
|
|
| Net sales |
|
|
$ |
171,354 |
|
$ |
364,088 |
|
$ |
288,799 |
|
$ |
159,005 |
|
$ |
155,207 |
|
$ |
331,685 |
|
$ |
235,742 |
|
$ |
131,600 |
|
| Gross profit |
|
|
|
43,502 |
|
|
96,695 |
|
|
75,069 |
|
|
40,266 |
|
|
38,104 |
|
|
87,858 |
|
|
61,659 |
|
|
33,253 |
|
| Net income (loss) |
|
|
|
1,902 |
|
|
28,602 |
|
|
14,204 |
|
|
(3,405 |
)
|
|
1,042 |
|
|
25,466 |
|
|
12,752 |
|
|
(3,816 |
)
|
| Net income (loss) per share
|
|
|
| Basic
|
|
|
$ |
0.08 |
|
$ |
1.15 |
|
$ |
0.60 |
|
$ |
(0.15 |
)
|
$ |
0.04 |
|
$ |
0.99 |
|
$ |
0.50 |
|
$ |
(0.15 |
)
|
| Diluted
|
|
|
$ |
0.07 |
|
$ |
1.09 |
|
$ |
0.57 |
|
$ |
(0.15 |
)
|
$ |
0.04 |
|
$ |
0.95 |
|
$ |
0.47 |
|
$ |
(0.15 |
)
|
|
The sum of diluted earnings
per share for each of the quarters may not equal the total diluted
earnings per share for the annual period because there is a difference
in the way that in-the-money stock options are considered from quarter
to quarter under the requirements of SFAS 128, Earnings per Share.
In the fourth quarter of 2001,
our effective income tax rate increased from 38.5% to 39.5%. Accordingly,
we recorded additional income tax expense of approximately $0.6 million
in the fourth quarter of 2001.
Additionally, we wrote-off approximately
$0.2 million of capitalized financing costs in the fourth quarter
of 2001 when we replaced the Senior Loan Facility one year prior
to the maturity date.
21
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|
