SCP Pool Corporation | ||
Craig K. Hubbard
Chief Financial Officer
985/892-5521 x 5117
SCP POOL CORPORATION REPORTS FIRST QUARTER RESULTS
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EARNINGS PER SHARE INCREASE 75%
COVINGTON, La. (April 16, 2002) –SCP Pool Corporation (the “Company” or “SCP”) (Nasdaq/NM: POOL) today reported results for the first quarter of 2002.
Net sales for the three months ended March 31, 2002 increased $16.2 million, or 10%, to $171.4 million, compared to $155.2 million in the first quarter of 2001. Same store sales growth of 8% contributed $9.7 million to the increase, while service centers acquired in 2001 contributed $5.0 million. Newly opened service centers accounted for the remaining increase. Gross profit margin increased 80 basis points to 25.4% for the three months ended March 31, 2002 from 24.6% for the same period last year. Operating income for the quarter increased 34% to $4.3 million, or 2.5% of net sales, compared to operating income of $3.2 million, or 2.1% of net sales in the first quarter of 2001. Earnings per diluted share for the quarter increased 75% to $0.07 per diluted share on net income of $1.9 million, compared to $0.04 per diluted share on net income of $1.0 million in the comparable 2001 period.
“We continued to make progress in the quarter as reflected in the results, but our busy season is just now starting. We have many opportunities for growth in our young industry, and we are taking the actions necessary to succeed,” commented Manuel Perez de la Mesa, President & CEO.
Same store growth is calculated using a 15-month convention, whereby all newly opened, acquired or consolidated service centers and existing service centers in the immediate market areas of the aforementioned service centers are excluded from the calculation for a period of 15 months. At March 31, 2002, there were 114 service centers included in the calculation of same store sales. Of the excluded service centers, nine were new service centers open less than 15 months, 35 were acquired within the last 15 months and 16 were excluded due to new or acquired service center openings in the respective market areas within the last 15 months.
SCP Pool Corporation is the largest distributor of swimming pool supplies and related products. As of April 16, 2002, the Company distributes more than 63,000 national brand and private label products to over 34,000 customers through 177 service centers in North America and Europe.
POOL Reports First Quarter 2002 Results
Page 2
April 16, 2002
Consolidated Statements of Income | |||||||||
(Unaudited) | Three Months Ended | ||||||||
(Dollars, in thousands except per share data) | March 31, | ||||||||
(Note) | 2002 | 2001 | |||||||
Net sales | 171,354 | 155,207 | |||||||
Cost of sales | 127,852 | 117,103 | |||||||
Gross profit | 43,502 | 38,104 | |||||||
Percent | 25.4 | % | 24.6 | % | |||||
Selling and administrative expenses | 39,171 | 34,356 | |||||||
Goodwill amortization | — | 536 | |||||||
Total selling and operating expenses | 39,171 | 34,892 | |||||||
Operating income | 4,331 | 3,212 | |||||||
Percent | 2.5 | % | 2.1 | % | |||||
Interest expense | 1,213 | 1,504 | |||||||
Income before income taxes | 3,118 | 1,708 | |||||||
Income taxes | 1,216 | 666 | |||||||
Net income | 1,902 | 1,042 | |||||||
Net income per share of common stock | |||||||||
Basic | 0.08 | 0.04 | |||||||
Diluted | 0.07 | 0.04 | |||||||
Average shares outstanding | |||||||||
Basic | 25,005 | 25,551 | |||||||
Diluted | 26,137 | 26,818 | |||||||
Note: | The 2001 per share figures and average shares outstanding have been adjusted to reflect the 3-for-2 stock split effective September 7, 2001. |
POOL Reports First Quarter 2002 Results
Page 3
April 16, 2002
Condensed Consolidated Balance Sheets | |||||
(Unaudited) | March 31, | ||||
(Dollars, in thousands) | 2002 | 2001 | |||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 7,255 | 3,056 | |||
Receivables, net | 99,779 | 104,649 | |||
Product inventories, net | 215,077 | 177,484 | |||
Prepaid expenses and deferred income taxes | 8,726 | 5,971 | |||
Total current assets | 330,837 | 291,160 | |||
Property and equipment, net | 16,141 | 12,121 | |||
Goodwill and other assets, net | 80,837 | 82,823 | |||
Total assets | 427,815 | 386,104 | |||
Liabilities and stockholders’ equity | |||||
Current liabilities | |||||
Accounts payable | 153,284 | 154,395 | |||
Short-term debt and note payable | 1,091 | 31,250 | |||
Accrued and other current liabilities | 11,879 | 11,316 | |||
Total current liabilities | 166,254 | 196,961 | |||
Deferred income taxes | 5,541 | 4,166 | |||
Long-term debt, less current portion | 108,000 | 58,986 | |||
Total stockholders’ equity | 148,020 | 125,991 | |||
Total liabilities and stockholders’ equity | 427,815 | 386,104 | |||