PoolCorp (POOL) Q4 2023 earnings summary

Executive summary

• 2023 net sales of $5.5B were the second highest on record; record operating cash flow reached $888.2M despite weather-related delays and softer pool construction.

• Added 14 greenfield and five acquired locations, ending 2023 with 439 sales centers; returned $473.8M to shareholders through dividends and repurchases.

Financial highlights

• FY 2023 net sales fell 10% to $5.5B; gross profit declined 14% to $1.7B and operating income fell 27% to $746.6M.

• FY 2023 net income decreased 30% to $523.2M; diluted EPS fell 29% to $13.35, or $13.18 excluding ASU 2016-09 tax benefits.

• Adjusted EBITDA decreased 25% to $806.9M, equal to 14.6% of sales versus 17.5% in 2022.

• Q4 net sales declined 8% to $1.0B; operating income fell 26% to $79.3M, net income fell 28% to $51.4M and diluted EPS decreased 27% to $1.32.

Outlook and guidance

• 2024 diluted EPS guidance is $13.10–$14.10, including an estimated $0.10 ASU 2016-09 tax benefit; adjusted guidance is $13.00–$14.00.

• Estimated $3.8M in unrealized tax benefits expected to expire or vest in Q1 2024; no benefits from stock-option exercises tied to grants expiring after 2024 are included.