Pool (POOL) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

POOL CORPORATION

REPORTS RECORD FIRST QUARTER SALES

AFFIRMS 2007 EARNINGS GUIDANCE

COVINGTON, La. (April 19, 2007) - Pool Corporation (the “Company” or “POOL”) (Nasdaq/GSM: POOL) today reported record net sales for the first quarter of 2007 and affirmed its projected 2007 diluted earnings per share guidance.

Earnings for the first quarter of 2007 were $0.03 per diluted share on net income of $1.4 million, compared to $0.12 per diluted share on net income of $6.4 million in 2006. The decrease includes the impact of approximately $0.03 per diluted share related to incremental operating expenses for the 17 new sales centers opened in 2006 and the 7 new sales centers opened in the first quarter of 2007.

Net sales for the quarter ended March 31, 2007 increased $25.1 million, or 7%, to $373.7 million, compared to $348.6 million in 2006. Base business sales growth of approximately 4% (on top of 15% growth in the first quarter of 2006) contributed $12.4 million to the increase. The remaining increase in net sales is attributable to acquired sales centers, primarily the Wickham business acquired in August 2006, and new sales centers opened in new markets. During the quarter, there was a 7% decrease in complementary product sales, which is a category that faced a tough sales comparison to last year given the 36% growth achieved in the first quarter of 2006. Complementary product sales were also impacted by a decline in pool construction in some markets and commodity price decreases.

Gross profit for the quarter ended March 31, 2007 increased $5.5 million, or 6%, to $103.5 million from $98.0 million in 2006. Gross profit as a percentage of net sales (gross margin) decreased 40 basis points to 27.7% in the first quarter of 2007 from 28.1% in the first quarter of 2006. Our first quarter 2007 gross margin is comparatively lower primarily due to the impacts of early buy and early pay inventory purchases in the fourth quarter of 2005, which benefited our first quarter 2006 gross margin.

Operating expenses increased $11.9 million, or 14%, to $94.9 million in the first quarter of 2007 from $83.0 million in the first quarter of 2006. Operating expenses as a percentage of net sales increased to 25.4% in 2007 from 23.8% in 2006. This increase includes the impact from our investments in new sales centers and higher expenses related to the significant number of sales center expansions and relocations we have made in the past year.

Operating income was $8.6 million in the first quarter of 2007 compared to $15.0 million in the same period in 2006. Operating income as a percentage of net sales (operating margin) decreased to 2.3% from 4.3% in 2006. EBITDA (as defined in the addendum) was $11.5 million in the first quarter of 2007 compared to $18.6 million in the first quarter of 2006.

The seasonal use of cash in operations decreased $47.4 million to $13.3 million in the first quarter of 2007 compared to $60.7 million in the same period of 2006. The decrease in cash used in operations is primarily due to a difference between periods in the timing of payments related to our year end early buy inventory purchases. During the first quarter of 2007, share repurchases totaled $61.4 million, or approximately 1.7 million shares of our common stock.

“We realized a 4% increase in base business sales despite a tough comparison to the 15% base business sales growth in the first quarter of 2006 and unfavorable weather conditions during the first quarter of 2007. As we move into the heart of the pool season, we are prepared to take advantage of the numerous opportunities in the young swimming pool industry and we expect to deliver another year of solid results. Consistent with our prior guidance, we project that 2007 earnings per share will be in the range of $2.00 to $2.10 per diluted share,” commented Manuel Perez de la Mesa, President and CEO.

At March 31, 2007, 260 sales centers were included in the base business calculations, and 22 sales centers were excluded because they were acquired or opened in new markets within the last 15 months.

Pool Corporation is the largest wholesale distributor of swimming pool and related backyard products. Currently, POOL operates 282 sales centers in North America and Europe, through which it distributes more than 100,000 national brand and private label products to roughly 70,000 wholesale customers. For more information about POOL, please visit www.poolcorp.com.

This news release includes “forward-looking” statements that involve risk and uncertainties that are generally identifiable through the use of words such as “believe,” “expect,” “intend,” “plan,” “estimate,” “project” and similar expressions and include projections of earnings. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date of this release, and we undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur. Actual results may differ materially due to a variety of factors, including the sensitivity of our business to weather conditions, our ability to maintain favorable relationships with suppliers and manufacturers, competition from other leisure product alternatives and mass merchants, changes in the economy and other risks detailed in POOL’s 2006 Form 10-K filed with the Securities and Exchange Commission.

CONTACT:

Craig K. Hubbard

Treasurer

985.801.5117

craig.hubbard@poolcorp.com

2

POOL CORPORATION

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share data)

	Three Months Ended
	March 31,
		2007			2006
Net sales	$	373,706		$	348,556
Cost of sales		270,221			250,508
Gross profit		103,485			98,048
Percent		27.7	%		28.1	%
Selling and administrative expenses		94,853			83,026
Operating income		8,632			15,022
Percent		2.3	%		4.3	%
Interest expense, net		4,519			2,851
Income before income taxes and equity losses		4,113			12,171
Provision for income taxes		1,588			4,699
Equity losses in unconsolidated investments, net		(1,171	)		(1,050	)
Net income	$	1,354		$	6,422
Earnings per share:
Basic	$	0.03		$	0.12
Diluted	$	0.03		$	0.12
Weighted average shares outstanding:
Basic		50,201			52,593
Diluted		52,462			55,443
Cash dividends declared per common share	$	0.105		$	0.09

3

POOL CORPORATION

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

			March 31,		March 31,		Change
			2007		2006		$		%
Assets
Current assets:
	Cash and cash equivalents	$	30,555	$	5,964	$	24,591		412	%
	Receivables, net		51,104		42,988		8,116		19
	Receivables pledged under receivables facility		179,930		168,590		11,340		7
	Product inventories, net		413,161		406,310		6,851		2
	Prepaid expenses and other current assets		9,383		5,193		4,190		81
	Deferred income taxes		7,676		3,970		3,706		93
Total current assets			691,809		633,015		58,794		9
Property and equipment, net			34,551		27,884		6,667		24
Goodwill			155,231		142,177		13,054		9
Other intangible assets, net			17,763		18,955		(1,192	)	(6	)
Equity interest investments			30,522		28,182		2,340		8
Other assets, net			17,753		15,413		2,340		15
Total assets		$	947,629	$	865,626	$	82,003		9	%
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable	$	325,448	$	267,296	$	58,152		22	%
	Accrued and other current liabilities		24,515		51,827		(27,312	)	(53	)
	Short-term financing		102,300		80,275		22,025		27
	Current portion of long-term debt and other long-term liabilities		4,350		2,100		2,250		107
Total current liabilities			456,613		401,498		55,115		14
Deferred income taxes			13,867		12,786		1,081		9
Long-term debt			253,222		155,163		98,059		63
Other long-term liabilities			5,639		2,174		3,465		159
Total liabilities		$	729,341	$	571,621	$	157,720		28	%
Total stockholders’ equity			218,288		294,005		(75,717	)	(26	)
Total liabilities and stockholders’ equity		$	947,629	$	865,626	$	82,003		9	%

__________________

1.   The allowance for doubtful accounts was $4.8 million at March 31, 2007 and $4.1 million at March 31, 2006.

2.   The inventory reserve was $4.4 million at March 31, 2007 and $4.5 million at March 31, 2006.

4

POOL CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

		Three Months Ended March 31,
			2007		2006		Change
Operating activities
Net income		$	1,354	$	6,422	$	(5,068	)
Adjustments to reconcile net income to net cash used in operating activities:
	Depreciation		2,184		1,860		324
	Amortization		1,220		1,328		(108	)
	Share-based compensation		1,543		2,145		(602	)
	Excess tax benefits from share-based compensation		(2,834	)	(8,236	)	5,402
	Equity losses in unconsolidated investments		1,987		1,725		262
	Other		(1,920	)	(1,578	)	(342	)
Changes in operating assets and liabilities, net of effects of acquisitions:
	Receivables		(76,398	)	(69,638	)	(6,760	)
	Product Inventories		(80,453	)	(76,348	)	(4,105	)
	Accounts payable		147,859		93,145		54,714
	Other current assets and liabilities		(7,849	)	(11,484	)	3,635
Net cash used in operating activities			(13,307	)	(60,659	)	47,352
Investing activities
Acquisition of businesses, net of cash acquired			(842	)	(1,446	)	604
Purchase of property and equipment, net of sale proceeds			(3,073	)	(3,408	)	335
Proceeds from sale of investment			75		—		75
Net cash used in investing activities			(3,840	)	(4,854	)	1,014
Financing activities
Proceeds from revolving line of credit			87,716		71,213		16,503
Payments on revolving line of credit			(121,900	)	(44,400	)	(77,500	)
Proceeds from asset-backed financing			39,779		23,622		16,157
Payments on asset-backed financing			(11,765	)	(9,004	)	(2,761	)
Proceeds from long-term debt			100,000		—		100,000
Payments on long-term debt and other long-term liabilities			(773	)	(23	)	(750	)
Payments of capital lease obligations			(257	)	(257	)	—
Payments of deferred financing costs			(377	)	(18	)	(359	)
Excess tax benefits from share-based compensation			2,834		8,236		(5,402	)
Issuance of common stock under stock option plans			2,921		3,709		(788	)
Payment of cash dividends			(5,248	)	(4,750	)	(498	)
Purchase of treasury stock			(61,788	)	(4,071	)	(57,717	)
Net cash provided by financing activities			31,142		44,257		(13,115	)
Effect of exchange rate changes on cash			(174	)	354		(528	)
Change in cash and cash equivalents			13,821		(20,902	)	34,723
Cash and cash equivalents at beginning of period			16,734		26,866		(10,132	)
Cash and cash equivalents at end of period		$	30,555	$	5,964	$	24,591

5

Addendum

(Unaudited)		Base Business				Acquired & New Market					Total
(In thousands)		Three Months				Three Months					Three Months
		Ended				Ended					Ended
		March 31,				March 31,					March 31,
		2007		2006		2007		2006			2007		2006
Net sales	$	360,322	$	347,935	$	13,384	$	621		$	373,706	$	348,556
Gross profit		99,639		97,982		3,846		66			103,485		98,048
Gross margin		27.7	%	28.2	%	28.7	%	10.6	%		27.7	%	28.1	%
Selling and administrative expenses		91,712		82,626		3,141		400			94,853		83,026
Expenses as a % of net sales		25.5	%	23.7	%	23.5	%	64.4	%		25.4	%	23.8	%
Operating income (loss)		7,927		15,356		705		(334	)		8,632		15,022
Operating income (loss) margin		2.2	%	4.4	%	5.3	%	(53.8	)%		2.3	%	4.3	%

We exclude the following sales centers from base business for 15 months:

·   acquired sales centers;

·   sales centers divested or consolidated with acquired sales centers; and

·   new sales centers opened in new markets.

Additionally, we generally allocate overhead expenses to acquired sales centers on the basis of acquired sales center net sales as a percentage of total net sales.

The effect of sales center acquisitions in the table above includes the operations of the following:

·Wickham Supply, Inc. and Water Zone, LP - January through March 2007

·Tor-Lyn Limited - February through March 2007

6

We define EBITDA as net income plus interest expense, income taxes, share-based compensation, depreciation and amortization. We consider EBITDA an important indicator of the operational strength and performance of our business, including the ability to provide cash flows to fund growth, service debt and pay dividends. EBITDA eliminates the non-cash expenses related to share-based compensation, depreciation of tangible assets and amortization of intangible assets. We believe EBITDA should be considered in addition to, not as a substitute for, operating income, net income and other measures of financial performance reported in accordance with accounting principles generally accepted in the United States (GAAP).

The table below presents a reconciliation of net income to EBITDA.

(Unaudited)			Three Months Ended
(In thousands)			March 31,
			2007		2006
Net income		$	1,354	$	6,422
	Add:
	Interest expense, net		4,519		2,851
	Provision for income taxes		1,588		4,699
	Income tax benefit on equity losses		(816	)	(675	)
	Share-based compensation		1,543		2,145
	Depreciation		2,184		1,860
	Amortization (1)		1,170		1,298
EBITDA		$	11,542	$	18,600

 ⁽¹⁾ Excludes amortization included in interest expense, net

7