POOLCORP continues to earn top honors in the swimming pool industry as the world’s largest wholesale distributor of swimming pool supplies, equipment and related leisure products. Our current network includes more than 3,400 employees dedicated to exceptional customer service at more than 270 locations in eight countries worldwide. We currently serve more than 70,000 wholesale customers through our three distribution networks - SCP, Superior and Horizon.
 


• Expected product price increases of 1% to 2% passed through the supply chain.

• The anticipated opening of approximately 10 - 12 new sales centers in 2007.

The growth of our business depends on the expansion of the installed pool base, which is tied to the growth of the pool industry as a whole. To support this effort, POOLCORP is expanding its advertising and promotional programs. This strategy is designed to raise consumer awareness of the benefits and affordability of pool ownership, the ease of pool maintenance and the many ways in which a pool and the surrounding spaces may be enjoyed beyond swimming.

Media advertising, industry-oriented Web site development such  as  www.swimmingpool.com  and  public relations

 

Incorporated in the state of Delaware in 1993 as SCP Holding Corporation, the company’s evolution has been characterized by exceptional growth. In 1995, the company name was changed to SCP Pool Corporation, followed by the change to Pool Corporation (POOLCORP) in 2006. These name modifications reflect the company’s successive growth from a regional distributor to a multinational, multi-network distribution company.

We continue to build on our core strengths, focusing on growing our customers’ businesses faster than the overall market and incrementally improving all aspects of our business operations.

We intend to continue our focus on supply chain management initiatives, including expansion of international sourcing and private label opportunities.

campaigns are all part of our overall marketing program. We believe these initiatives will benefit the entire industry - from our suppliers to our customers.

As always, we continue to promote the growth of our customers’ businesses through comprehensive support programs that offer promotional tools and marketing support leading to increased sales for our customers. Our uniquely tailored programs include such features as customer lead generation, personalized Web sites, brochures, marketing campaigns and business development training. As a customer service, we also provide assistance to certain retail store customers regarding everything from site selection to store layout and design to business management system implementation.


We believe that the following factors will contribute to net sales growth in 2007.

• Sales expansion at our existing sales centers through:

  • Continued execution of our sales, marketing and service      programs;

  • The continued growth of the installed base of swimming      pools;

  • Growth in complementary product sales; and

  • Sales from our 17 new sales centers opened in 2006.

• Sales from acquired sales centers.

  

In addition to our efforts aimed at industry and customer growth, we have increased our product breadth and expanded our sales center network through acquisitions and new sales center openings. Since 2002, we have opened 32 new sales centers and have successfully completed 11 acquisitions, consisting of 72 sales centers. We acquired Wickham Supply Inc. and Water Zone, LP (Wickham) in August 2006. Wickham is a leading regional irrigation products distributor and operates 14 distribution sales centers under our Horizon network with 13 locations throughout Texas and one location in Georgia.

As of December 31, 2006, POOLCORP and its wholly owned subsidiaries maintained 274 sales centers

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