SCP Pool Corp (POOL) NASDAQ - Corporate Window

COVINGTON, La., September 18, 2003 -- SCP Pool Corporation ("POOL" or the "Company") (Nasdaq/NM:POOL) today announced that it has entered into a definitive agreement to purchase substantially all of the assets of Litehouse Products, Inc.'s distribution division, with a closing scheduled for September 30, 2003. Litehouse Products, Inc. ("Litehouse") currently operates a distribution division that sells in the Ohio, Pennsylvania and Michigan markets. Litehouse's primary business is the retail sale of swimming pool and other leisure products through 27 stores. "This acquisition establishes a strong presence for us in northern Ohio and adjacent markets while providing Litehouse the opportunity to focus its financial and human resources on its growing pool and leisure products retail business," commented Manuel Perez de la Mesa, President and CEO of POOL.

Also announced today were two recently completed international acquisitions. POOL acquired Sud Ouest Filtration (SOFI), a distributor of swimming pool products operating one service center in Bordeaux, France. The SOFI acquisition represents POOL's fourth location in France with market presence now expanded to the southwest part of that country. POOL also acquired Mepasa Albercas, a swimming pool distributor in Cuernavaca, Mexico. The Cuernavaca service center, located approximately 45 minutes outside Mexico City, is POOL's first location in Latin America. "These two acquisitions further our expansion in the rapidly growing international swimming pool business," said Perez de la Mesa.

These three acquisitions represented over $40 million in sales in 2002 and are expected to be accretive in 2004 and beyond.

SCP Pool Corporation is the world's largest wholesale distributor of swimming pool supplies and related products. Through 194 service centers in North America and Europe, the Company distributes more than 60,000 national brand and private label products to over 45,000 customers.

This news release includes "forward-looking" statements that include risk and uncertainties. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including the sensitivity of the swimming pool supply business to weather conditions and other risks detailed in the Company's 2002 Form 10-K filed with the Securities and Exchange Commission.

Return to headlines

Announces 3-for-2 Stock Split

COVINGTON, La. August 8, 2003--SCP Pool Corporation (Nasdaq/NM:POOL) announced today that its Board of Directors has declared a 3-for-2 stock split to be effected in the form of a 50% stock dividend. The additional shares will be distributed on September 12, 2003 to shareholders of record at the close of business on August 22, 2003. SCP Pool Corporation has approximately 23,562,028 shares outstanding.

Mr. Wilson B. Sexton, Chairman of the Board, noted, "We are confident in the future of the young swimming pool industry and in SCP's continued performance in the industry".

SCP Pool Corporation is the world's largest wholesale distributor of swimming pool supplies and related products. Currently, SCP operates 192 service centers in North America and Europe, through which it distributes more than 60,000 national brand and private label products to approximately 45,000 customers.

Return to headlines

Reports Record Second Quarter Results

COVINGTON, La., July 24, 2003--SCP Pool Corporation (the "Company" or "SCP") (Nasdaq/NM: POOL) today reported record results for the second quarter of 2003.

Earnings per share for the second quarter of 2003 increased 27% to $1.38 per diluted share on net income of $34.0 million, compared to $1.09 per diluted share on net income of $28.6 million last year. The increase in EPS is due to a 19% increase in net income and a decrease in the weighted average shares outstanding between quarters.

Net sales for the three months ended June 30, 2003 increased $67.8 million, or 19%, to $431.9 million, compared to $364.1 million in the second quarter of 2002. Base business sales growth of 7% contributed $22.7 million to the increase, while acquired service centers and service centers consolidated with acquired locations accounted for the remaining increase. Same store sales growth was 6% in the second quarter of 2003.

Gross profit for the three months ended June 30, 2003 increased $24.2 million, or 25%, to $120.9 million from $96.7 million in the same period in 2002. This increase was primarily due to the increase in net sales. Gross profit as a percentage of net sales (gross margin) increased 140 basis points to 28.0% in the second quarter of 2003 from 26.6% in the comparable 2002 period. The base business gross margin improved 60 basis points primarily due to improved selling and purchasing practices. The remaining increase in gross margin is attributable to the business acquired in our August 2002 Fort Wayne acquisition (Fort Wayne), including the consolidation of margins from the acquired manufacturing business.

Operating expenses in the second quarter of 2003 increased $15.4 million, or 32%, to $63.7 million from $48.3 million in the second quarter of 2002. Operating expenses as a percentage of net sales increased 140 basis points to 14.7% in 2003 from 13.3% in 2002. Base business operating expenses as a percentage of net sales increased 100 basis points to 14.1% in 2003 from 13.1% in 2002 primarily due to increased payroll expense resulting from new branches and the additional investment in support personnel and marketing programs to enhance infrastructure and increase value to customers and suppliers. Operating expenses related to Fort Wayne are typically higher due to the consolidation of the manufacturing portion of the business.

Cash provided by operations increased to $8.9 million in the first six months of 2003 compared to $8.4 million in the same period in 2002.

"We realized our record results despite generally poor weather conditions for the industry in the second quarter, and we continue to realize progress on multiple fronts while gaining an increasingly better understanding of the many profit improvement opportunities available to us," commented Manuel Perez de la Mesa, President and CEO.

Net sales for the six months ended June 30, 2003 increased $92.9 million, or 17%, to $628.3 million, compared to $535.4 million in the comparable 2002 period. Base business sales growth of 6% contributed $32.9 million to the increase, while acquired service centers and locations consolidated with acquired service centers accounted for the remaining increase. Same store sales growth was also 6% in the first six months of 2003. Gross profit margin increased 140 basis points to 27.6% in the first six months of 2003 from 26.2% for the same period last year with base business gross margin increasing 70 basis points between periods. Operating income for the first six months of 2003 increased 15% to $60.7 million, or 9.7% of net sales, compared to operating income of $52.7 million, or 9.8% of net sales in the same period last year. Earnings per share for the first six months increased 24% to $1.44 per diluted share on net income of $35.4 million, compared to $1.16 per diluted share on net income of $30.5 million in the comparable 2002 period.

Wilson B. Sexton, Chairman, added, "We are pleased with the resiliency of the swimming pool industry and SCP's performance in the industry, especially in context with today's general economic environment."

At June 30, 2003, 170 service centers were included in the base business calculations. Of the excluded service centers, nine were acquired within the last 15 months and 13 were existing service centers that were consolidated with acquired locations within the last 15 months. In addition to the 22 service centers excluded from the base business calculations, the same store calculations also excluded seven new service centers open less than 15 months and 11 locations affected by new service center openings in the immediate market areas within the last 15 months.

SCP Pool Corporation is the world's largest wholesale distributor of swimming pool supplies and related products. As of July 24, 2003, SCP distributes more than 60,000 national brand and private label products to over 45,000 customers through 192 service centers in North America and Europe.

This news release may include "forward-looking" statements that involve risk and uncertainties. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including the sensitivity of the swimming pool supply business to weather conditions and other risks detailed in SCP's 2002 Form 10-K and subsequent Form 10-Qs filed with the Securities and Exchange Commission.

Return to headlines

Announces Second Quarter 2003 Earnings Release and Conference Call

COVINGTON, La., July 18, 2003--SCP Pool Corporation (Nasdaq/NM:POOL), will hold a conference call to discuss second quarter results on Thursday, July 24, 2003, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time).

The earnings results will be released before the market opens on July 24, 2003. The press release will be available immediately after publishing on the SCP website at www.scppool.com.

The conference call will be moderated by the Company's Chairman, Wilson B. Sexton. The conference call is being web cast by CCBN and can be accessed at SCP's website at www.scppool.com.

The web cast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents.

SCP's third quarter 2003 results will be released on October 23, 2003.

SCP Pool Corporation is the world's largest wholesale distributor of swimming pool equipment, parts, supplies and complementary products. Currently, SCP operates 192 service centers in North America and Europe, through which it distributes more than 60,000 national brand and private label products to over 45,000 customers.

Return to headlines

Projects Continued Growth

COVINGTON, La., May 6, 2003--Speaking today at the annual meeting of stockholders, Wilson B. (Rusty) Sexton, Chairman of the Board, said that the stockholders elected Andrew W. Code, James J. Gaffney, Manuel J. Perez de la Mesa, Robert C. Sledd, John E. Stokely, Harlan F. Seymour, and himself as directors. Stockholders also ratified the appointment of Ernst & Young LLP as the Company's independent auditors for fiscal 2003. Mr. Sexton stated, "We are optimistic about the potential for the swimming pool industry and pleased with how SCP is executing in realizing its objectives."

SCP Pool Corporation is the largest independent wholesale distributor of swimming pool supplies and related products. Currently, the Company operates 192 service centers in North America and Europe, through which it distributes more than 60,000 national brand and private label products to approximately 45,000 customers.

Return to headlines

Announces Canadian Acquisition

COVINGTON, La., May 6, 2003--SCP Pool Corporation (Nasdaq/NM:POOL) announced today the acquisition of Les Industries R.P. Inc., a Quebec based swimming pool company with approximately $10 million in annual sales.

Manuel J. Perez de la Mesa, President and CEO, stated, "This acquisition is consistent with SCP's strategy for entering new pool distribution markets and brings with it Les Industries R.P.'s very strong reputation in Canada."

Return to headlines

Reports First Quarter Results

COVINGTON, La., April 24, 2003--SCP Pool Corporation (the "Company" or "SCP") (Nasdaq/NM: POOL) today reported results for the first quarter of 2003.

Net sales for the three months ended March 31, 2003 increased $25.0 million, or 15%, to $196.4 million, compared to $171.4 million in the first quarter of 2002. Base business growth of 6% contributed $10.3 million to the increase, while service centers acquired from Fort Wayne Pools, Inc. in August 2002 and service centers consolidated with the acquired locations accounted for the remaining increase. Same store sales growth was also 6% in the first quarter of 2003.

Gross profit for the three months ended March 31, 2003 increased $9.0 million, or 21%, to $52.5 million from $43.5 million in the same period in 2002. This increase was primarily due to the increase in net sales. Gross profit as a percentage of net sales (gross margin) increased 130 basis points to 26.7% in the first quarter of 2003 from 25.4% in the comparable 2002 period. The base business gross margin improved 90 basis points to 26.2% in 2003 from 25.3% in 2002 primarily due to our reconciliation of vendor rebates and improved selling and purchasing practices. The remaining increase in gross margin is attributable to the Fort Wayne acquired business.

Operating expenses in the three months ended March 31, 2003 increased $9.8 million, or 25%, to $49.0 million from $39.2 million in the first quarter of 2002. Operating expenses as a percentage of net sales increased 200 basis points to 24.9% in 2003 from 22.9% in 2002. Base business operating expenses as a percentage of net sales increased 120 basis points to 23.5% in 2003 from 22.3% in 2002 primarily due to additional payroll, incentive compensation and other supporting expenses that increased at a rate faster than the increase in seasonal net sales in the first quarter of 2003.

Earnings per share for the first quarter of 2003 decreased to $0.06 per diluted share on net income of $1.5 million, compared to $0.07 per diluted share on net income of $1.9 million last year, primarily due to the dilutive effect of the Fort Wayne Acquisition as a result of the accentuated seasonality of its network which is predominantly located in northern markets (see addendum).

Cash used in operations in the first quarter of 2003 was $32.7 million compared to cash used in operations of $19.3 million in the same period in 2002. This $13.4 million increase is primarily due to the $12.6 million increase in accounts receivable between periods.

"Our season is off to a solid start. The seasonally dilutive impact of the Fort Wayne Acquisition was as expected and the efforts to integrate it together with our continuous investments to enhance our infrastructure and our value proposition are expected to yield positive results in 2003 and beyond. Our first quarter represented a positive first step despite the extended cold weather in most northern markets," commented Manuel Perez de la Mesa, President and CEO.

At March 31, 2003, 170 service centers were included in the base business calculations. Of the excluded service centers, eight were acquired within the last 15 months and 13 were existing service centers that were consolidated with acquired locations. In addition to the 21 service centers excluded from the base business calculations, the same store calculations also excluded ten new service centers open less than 15 months and 14 locations affected by new service center openings in the immediate market areas within the last 15 months.

SCP Pool Corporation is the world's largest wholesale distributor of swimming pool supplies and related products. As of April 24, 2003, the Company distributes more than 60,000 national brand and private label products to over 45,000 customers through 191 service centers in North America and Europe.

This news release includes "forward-looking" statements that involve risk and uncertainties. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including the sensitivity of the swimming pool supply business to weather conditions and other risks detailed in the Company's 2002 Form 10-K filed with the Securities and Exchange Commission.

Return to headlines

Announces First Quarter 2003 Earnings Release and Conference Call

COVINGTON, La.--April 17, 2003--SCP Pool Corporation (Nasdaq/NM:POOL) will hold a conference call to discuss first quarter results on Thursday, April 24, 2003, at 10:00 a.m. Central Standard Time (11:00 a.m. Eastern Time).

The earnings results will be released before the market opens on April 24, 2003.

The conference call is being web cast by CCBN and can be accessed at SCP's web site at www.scppool.com.

In 2003, SCP's second quarter results will be released on July 24 and third quarter results on October 23.

SCP Pool Corporation is the world's largest independent distributor of swimming pool equipment, parts, supplies and complementary products. Currently, SCP operates 191 service centers in North America and Europe, through which it distributes more than 60,000 national brand and private label products to over 45,000 customers.

Return to headlines

CEO Manuel Perez De La Mesa Talks to the Wall Street Transcript

NEW YORK--April 9, 2003-- The Wall Street Transcript has published an in-depth interview with Manuel Perez De La Mesa, CEO of SCP Pool Corporation (Nasdaq:POOL ), in which he talks at length about the Company's future.

The entire 2,500 word interview is available free online at http://www.twst.com/ceos.htm.

Manuel gives an overview of the Company, "Over the past year, first of all, we have continued to execute on our mission by continuing to invest in the programs that help promote the growth of the industry as well as promote the growth of our customers' businesses. Simultaneously, we're working internally to improve our execution and our entire operational and sales effectiveness, so we can add more value in the supply chain between our customers and our suppliers. To that end, 2002 represented another successful year for the company."

Manuel explains, "We will continue to execute on our mission by developing our strategies and executing upon those strategies. With that, we anticipate the industry will continue to grow, at a continued mid single-digit percent rate year-on-year. We, through our initiatives and programs, should continue to exceed the industry growth rate and have higher single digit base business sales growth. We will continue to open up new locations and we will do selective acquisitions as time goes on to further expand our network."

Looking forward, Manuel states, "Within the US, which is far and away the largest pool market in the world, there are a number of markets, Florida being one prime example, where our share market is less than what it should be. There are also pockets in the Northeast, in the mid-Atlantic, and parts of the Midwest, where our share position will increase over time through a combination of our own internal execution as well as our complementary acquisitions."

This interview is part of a 192 - page SunTrust Robinson Humphrey 32nd Annual Institutional Investor Conference Issue available at http://www.twst.com/info/info713.htm or by calling 212/952-7433.

Return to headlines

To Present at Spring Conferences

COVINGTON, La., April 3, 2003--SCP Pool Corporation (Nasdaq/NM:POOL; "SCP") will present to investors at the Burkenroad Reports Investment Research Conference, SunTrust Robinson Humphrey's 32nd Annual Institutional Conference and Sidoti & Company's 7th Annual Emerging Growth Institutional Investor Forum.

The Burkenroad Conference will be held at the Wyndham Hotel at Canal Place in New Orleans, Louisiana and SCP will present on April 4th at 2:00 p.m. CST. The audio and slides of SCP's presentation will be broadcast live on the Internet. Interested parties are invited to participate by logging on to www.scppool.com under the Investor Relations tab and choosing the link for the broadcast or by going to: http://www.businesstoinvestor.com/profiles/investor/LogInvInfo.asp?sm quote_field=POOL&cName=SCP+Pool+Corporation&BzID=603&Validate=2&from= pl&ID=162. (Because of the length of the preceding URL, it may be necessary to copy and paste the hyperlink into your Internet browser's URL address field.) For those unable to listen to the live broadcast, a replay will be available for 60 days by accessing one of the above internet addresses.

The SunTrust Robinson Humphrey Conference will be held at the Ritz-Carlton, Buckhead in Atlanta and SCP will present on April 7th at 1:30 p.m. CST. The audio and slides of SCP's presentation will be broadcast live on the Internet. Interested parties are invited to participate by logging on to www.scppool.com under the Investor Relations tab and choosing the link for the broadcast or by going to: http://www.businesstoinvestor.com/profiles/investor/LogInvInfo.asp?sm_ quote_field=POOL&cName=SCP+Pool+Corporation&BzID=603&Validate=2&from= pl&ID=160. (Because of the length of the preceding URL, it may be necessary to copy and paste the hyperlink into your Internet browser's URL address field.) For those unable to listen to the live broadcast, a replay will be available for 60 days by accessing one of the above internet addresses.

The Sidoti & Company Forum will be held at the Grand Hyatt Hotel in New York, New York and SCP will present on April 10th at 1:30 p.m. ET. This presentation will not be webcast.

SCP recently presented at the Deutsche Bank Securities Basic Industries Conference on April 2nd. If you would like to hear a replay of this presentation, please log on to www.scppool.com under the Investor Relations tab and choose the link for the broadcast or go to: http://www.businesstoinvestor.com/profiles/investor/LogInvInfo.asp?sm_ quote_field=POOL&cName=SCP+Pool+Corporation&BzID=603&Validate=2&from= pl&ID=161. (Because of the length of the preceding URL, it may be necessary to copy and paste the hyperlink into your Internet browser's URL address field.) For those unable to listen to the live broadcast, a replay will be available for 90 days by accessing one of the above internet addresses.

SCP Pool Corporation is the world's largest distributor of swimming pool supplies and related products. Through 191 service centers in the United States and Europe, the Company distributes more than 60,000 national brand and private label products to over 45,000 customers.

Return to headlines

Closes $90 Million Receivables Financing Facility

COVINGTON, La., March 31, 2003--SCP Pool Corporation (Nasdaq/NM:POOL; "SCP") announced the closing of a new receivables financing facility ("Facility") with Bank One, NA with a seasonal peak borrowing capacity of $90 million. This Facility complements the revolving credit facility SCP closed in November 2001 and amended in 2002, with commitments of $150 million.

"This facility provides SCP increased flexibility to pursue growth opportunities and demonstrates Bank One's confidence in the swimming pool industry," said Manuel Perez de la Mesa, President and CEO.

Return to headlines

Reports Record Fiscal 2002 Results

COVINGTON, La., February 13, 2003--SCP Pool Corporation (the "Company" or "SCP") (Nasdaq/NM: POOL) today reported record net sales and net income for 2002. Net sales for the year ended December 31, 2002 increased $129.0 million, or 15%, to $983.2 million, compared to $854.2 million in 2001. Base business growth of 10% contributed $84.5 million to the increase, while acquired service centers and service centers consolidated with acquired locations accounted for the remaining increase. Same store sales growth was also 10% in 2002.

Gross profit for the twelve months ended December 31, 2002 increased $34.6 million, or 16%, to $255.5 million from $220.9 million in 2001. This increase was primarily due to the increase in net sales. Gross profit margin increased 10 basis points to 26.0% for the year ended December 31, 2002 from 25.9% for the same period last year.

Operating expenses in 2002 increased $25.8 million, or 16%, to $182.8 million from $157.0 million in 2001. Excluding the impact of acquisitions and 2001 goodwill amortization, operating expenses as a percentage of net sales was unchanged at 17.9%.

Operating income for the year increased $8.8 million, or 14%, to $72.7 million, or 7.4% of net sales, compared to operating income of $63.9 million, or 7.5% of net sales, in the prior year. Excluding the impact of acquisitions and 2001 goodwill amortization, operating income increased $7.8 million, or 12%, to $73.5 million from $65.7 million and operating income as a percentage of net sales (operating margin) increased 10 basis points to 8.1% in 2002 from 8.0% in 2001.

Earnings per share for 2002 increased 22% to $1.62 per diluted share on net income of $41.3 million, compared to $1.33 per diluted share on net income of $35.4 million last year. Excluding the 2002 dilutive impact of the Fort Wayne acquisition and goodwill amortization in 2001, earnings per diluted share increased 19% to $1.64 per diluted share in 2002 from $1.38 in 2001.

Cash flow from operations in 2002 was $59.2 million compared to $26.8 million in 2001. The increase in cash flow from operations was primarily due to increased net earnings and reduced pre-payments of inventory purchases with extended terms.

"We completed another solid year of performance with notable improvements in many facets of our sales and operational execution. In addition, we see opportunities for continued growth as we complete the integration of the Fort Wayne acquisition and continue to improve our execution. We remain comfortable with our estimated $1.95 in earnings per share for 2003," commented Manuel Perez de la Mesa, President and CEO.

Net sales for the quarter ended December 31, 2002 increased $27.4 million, or 21%, to $159.0 million from $131.6 million in the comparable quarter last year. Base business sales growth of 11% contributed $15.0 million to the increase, while acquired service centers and service centers consolidated with acquired locations accounted for the remaining increase. Same store sales grew 10% in the fourth quarter of 2002.

Gross profit for the three months ended December 31, 2002 increased $7.0 million, or 21%, to $40.3 million from $33.3 million in 2001. This increase was primarily due to the increase in net sales. Gross profit margin was unchanged between quarters at 25.3%.

Operating loss for the quarter increased to $4.5 million, or 2.8% of net sales, compared to an operating loss of $3.9 million, or 3.0% of net sales, in the prior year. Excluding the impact of acquisitions and 2001 goodwill amortization, the operating loss for the quarter decreased $0.9 million, to $1.5 million in 2002 from $2.4 million in 2001.

In the fourth quarters of 2002 and 2001, the Company reported a net loss of $0.15 per share. Excluding the 2002 dilutive impact of the Fort Wayne acquisition and goodwill amortization in 2001, the net loss per diluted share decreased to $0.11 in 2002 from $0.14 in 2001.

"The Board is pleased with SCP's continued success despite the economic challenges of 2002. It once again demonstrates the resiliency of the swimming pool industry and SCP's strong performance in this industry," remarked W.B. Sexton, Chairman.

Beginning in the fourth quarter of 2002, we began calculating our "base business" growth, which is consistent with measures used by other distributors. At December 31, 2002, there were 161 service centers included in the calculation of base business sales. Of the excluded service centers, 11 were acquired within the last 15 months and 13 were existing service centers that were consolidated with acquired service centers. In addition to the 24 service centers excluded from the calculation of base business sales, the same store sales calculation also excluded seven new service centers open less than 15 months and eight locations affected by new service center openings in the immediate market areas within the last 15 months.

SCP Pool Corporation is the world's largest distributor of swimming pool supplies and related products. As of February 13, 2003, the Company distributes more than 60,000 national brand and private label products to over 51,000 customers through 185 service centers in North America and Europe.

This news release includes "forward-looking" statements that include risk and uncertainties. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including the sensitivity of the swimming pool supply business to weather conditions and other risks detailed in the Company's latest Form 10-Q filed with the Securities and Exchange Commission.

Return to headlines

Announces Fourth Quarter and Year End 2002 Earnings Release and Conference Call

COVINGTON, La., February 3, 2003--SCP Pool Corporation (Nasdaq/NM:POOL) will hold a conference call to discuss fourth quarter and year end results on Thursday, February 13, 2003, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time).

The earnings results will be released before the market opens on February 13, 2003. The press release will be available immediately after publishing on the SCP web site at www.scppool.com.

The conference call will be moderated by the Company's Chairman, Wilson B. Sexton, and is being web cast by CCBN and can be accessed at SCP's web site at www.scppool.com.

In 2003, SCP's first quarter results will be released on April 24, second quarter results on July 24 and third quarter results on October 23.

SCP Pool Corporation is the world's largest independent distributor of swimming pool equipment, parts, supplies and complementary products. Currently, SCP operates 185 service centers in North America and Europe, through which it distributes more than 63,000 national brand and private label products to over 34,000 customers.

Return to headlines

Reports Record Third Quarter 2002 Results

COVINGTON, La., October 15, 2002--SCP Pool Corporation (the "Company" or "SCP") (Nasdaq/NM:POOL) today reported record results for the third quarter of 2002. Net sales for the three months ended September 30, 2002 increased $53.1 million, or 23%, to $288.8 million, compared to $235.7 million in the third quarter of 2001. Same store sales growth of 14% contributed $28.6 million to the increase and service centers acquired from Fort Wayne Pools in August 2002 contributed $14.3 million. New locations opened within the last 15 months and service centers acquired in the second half of 2001 accounted for the remaining increase. Gross profit margin decreased slightly to 26.0% for the three months ended September 30, 2002 compared to 26.2% in the same period of 2001. The decrease in gross margin is primarily due to higher freight-in expense. Despite higher freight costs, same store gross margins were up 20 basis points versus the prior year quarter. Operating income for the quarter increased 12% to $24.4 million, or 8.5% of net sales, compared to operating income of $21.8 million, or 9.2% of net sales, in the third quarter of 2001. The decrease in operating income as a percentage of net sales is primarily due to the margin dilutive effect of new service centers and the Fort Wayne acquisition, increased insurance costs, increased marketing costs, and the afore-mentioned decrease in gross margins. In fact, same store operating margins increased by 70 basis points versus the prior year quarter. Earnings per share for the quarter increased 21% to $0.57 per diluted share on net income of $14.2 million, compared to $0.47 per diluted share on net income of $12.8 million in the comparable 2001 period.

"We made solid progress in realizing our business objectives in the third quarter including the successful completion of the Fort Wayne acquisition. We are continuing to identify and address opportunities for improvement and earnings growth in the young swimming pool industry," commented Manuel Perez de la Mesa, President and CEO.

Net sales for the nine months ended September 30, 2002 increased $101.6 million, or 14%, to $824.2 million, compared to $722.6 million in the comparable 2001 period. Same store sales growth of 10% contributed $55.6 million to the increase and service centers acquired from Fort Wayne Pools contributed $14.3 million. New locations opened within the last 15 months and service centers acquired in the second half of 2001 accounted for the remaining increase. Gross profit margin increased 10 basis points to 26.1% in the first nine months of 2002 from 26.0% for the same period last year and increased 20 basis points on a same store basis. Operating income for the first nine months of 2002 increased 14% to $77.2 million compared to operating income of $67.8 million in the same period last year. Operating income as a percentage of net sales remained unchanged between periods as new service centers, higher insurance, marketing, and Fort Wayne costs were offset by the growth in sales. On a same store basis, operating margin increased by 60 basis points versus the prior year to date. Earnings per share for the first nine months increased 18% to $1.73 per diluted share on net income of $44.7 million, compared to $1.46 per diluted share on net income of $39.3 million in the comparable 2001 period.

Mr. Wilson B. Sexton, Chairman, added, "With all of the uncertainties in today's business climate, we are pleased with SCP's continued strong performance."

At September 30, 2002, there were 146 service centers included in the calculation of same store sales. Of the excluded service centers, 10 were new service centers open less than 15 months, 27 were acquired within the last 15 months and 16 were excluded due to new or acquired service center openings in the immediate market areas within the last 15 months. Same store sales growth is calculated using a 15-month convention, whereby all newly opened, acquired or consolidated service centers and certain existing service centers in the immediate market areas of the aforementioned services centers are excluded from the calculation for a period of 15 months.

SCP Pool Corporation is the world's largest distributor of swimming pool supplies and related products. As of October 15, 2002, the Company distributes more than 63,000 national brand and private label products to over 34,000 customers through 199 service centers in North America and Europe.

This news release includes "forward-looking" statements that include risk and uncertainties. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including the sensitivity of the swimming pool supply business to weather conditions and other risks detailed in the Company's 2001 Form 10-K filed with the Securities and Exchange Commission.

Return to headlines