Pool Corporation (POOL) FY2024 10-K Annual Report

Filed: Feb 27, 2025
Consumer Discretionary
Wholesale-Misc Durable GoodsSEC EDGAR

Pool Corporation (POOL) 10-K annual report for fiscal year 2024, filed with SEC EDGAR on Feb 27, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Pool Corporation FY2024 10-K Analysis

Business Overview

  • Core business: Distributor of swimming pool and irrigation products to a fragmented customer base across U.S. and Canada
  • New emphasis on managing increased risks from extreme weather and climate change impacting supply chains and sales, especially in key markets FL, CA, TX
  • Strategic focus on maintaining favorable supplier relationships with key suppliers accounting for 43% of product costs in 2024 to protect margins
  • Geographic concentration: FL, CA, TX, AZ markets represented 54% of net sales in 2024, highlighting competitive intensity and exposure
  • Noteworthy risk focus on cyberattacks and technology disruptions with ongoing investments in e-commerce and cybersecurity due to increased threat complexity

Management Discussion & Analysis

  • Revenue $5.31B in 2024 vs $5.54B in 2023, down approximately $230M YoY driven by mixed weather impacts
  • Operating income $617.2M in 2024 vs $746.6M in 2023, operating margin 11.6% vs 13.5%
  • Best segment: third quarter sales $1.433B in 2024, slightly lower than $1.474B in 2023; worst Q4 segment sales $987.5M vs $1.003B
  • Net income $434.3M in 2024 vs $523.2M in 2023; net margin declined accordingly due to margin compression
  • Weather risks elevated with wetter, cooler conditions in key regions impacting sales volume and economic activity in 2024 compared to prior year

Risk Factors

  • Income tax risk from audits by federal, state, and foreign tax authorities across 41 US states and 11 countries with potential adjustments to tax liabilities
  • Macroeconomic exposure to housing market trends monitored via House Price Index affecting allowance for doubtful accounts and credit losses
  • Inventory obsolescence risk with reserve impacting pretax income by $5.3M and EPS by $0.10 per diluted share sensitivity to 20% reserve change
  • Competitive risk from evolving customer preferences and product offerings influencing inventory management and sales center stocking strategies
  • Goodwill impairment risk with $698.9M goodwill (21% of assets), $401.6M in Porpoise Pool & Patio unit, prior $0.6M impairments due to underperformance

Pool Corporation FY2024 Key Financial Metrics
XBRL

Revenue

$5.3B

-4.2% YoY

Net Income

$434M

-17.0% YoY

Gross Margin

29.7%

-29bp YoY

Operating Margin

11.6%

-185bp YoY

Net Margin

8.2%

-126bp YoY

ROE

34.1%

-575bp YoY

Total Assets

$3.4B

-1.7% YoY

EPS (Diluted)

$11.30

-15.4% YoY

Operating Cash Flow

$659M

-25.8% YoY

Source: XBRL data from Pool Corporation FY2024 10-K filing on SEC EDGAR. All figures in USD.

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