POOL - Earnings call 4 2023 | Pool Corporation

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Operator

Good day, and welcome to the Pool Corporation Fourth Quarter 2023 Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Melanie Hart, Vice President and Chief Financial Officer. Please go ahead.

Melanie M. Hart

Welcome to our fourth quarter and year-end 2023 earnings conference call. to for may XXXX responses including forward-looking and outlook management's and comments questions include today statements, Discussion, future periods. differ may results materially discussed those Actual today. from Information our XX-K. cause that from regarding results and to projected in results differ could discussed are the factors actual variables

description may financial A Relations measures posted our release reconciliation addition, included our we financial to in of CEO, Peter our and begin Pete? are website President Investor references in section. make In of in our non-GAAP any to measures will comments. and non-GAAP the today. corporate our press Arvan, call

Peter Arvan

Thank you, Melanie, call. to and everyone on good the morning

year point last double the more margin For the of a new a constructed income, revenue, generated history in before XXXX in similar We in margin. full and billion in pools company basis XXXX, a pandemic. above year year in and XX.X%, over operating over higher $XXX with $X.X second operating million billion largest the generated expansion number the our $X of XXXX we income operating XXXX, than operating than XXX

make environment, results to most ability wise These customers' fulfill outshined installed distribution the Even needs. remodel investments integrated future our powerful us promote available and our largest, continue challenging construction customer to service network, in in maintenance industry, the competitors our new renovation product to and through and our and post-pandemic we the a highlight to serve for larger our growth. base pool our

to sales seasonal us of the conditions sales during selling contributed solid The in quarter throughout XXXX in across the extremely quarter at most half levels, markets. key the higher-than-normal followed of year-round year, XX% pool the very of XXXX an many to yet first weather over We poor abnormal results. hard in team year. were environment all compared to levels with growth up XXXX, the lapping the XXXX Delayed tremendous of industry the openings of markets worked declined year began unusually XX% comps against in and our amidst first inventory deliver first

of units XXXX year. constraints primarily and pool factors XX,XXX extremely XX,XXX Macroeconomic uncertainties, and units declining new recent These the or escalating an rates decline. forecast demand underlying from the resulted units external the inflation, elevated estimated XX,XXX it in evolving a in in start to interest XXXX to in XX% of made difficult to to XX% at and form

clarity market and around XXXX As the improved progressed, adapted we accordingly.

needs in maintaining and those million the base. swimming to X.X focused on particularly opportunities, specific related customer ever-growing pools We the installed

shines. is our this reach, Given that like it our broad unmatched team situations capabilities, in

customers' invest We in more and expanding technology to continue grow improve business that ability in footprint tools productive. to and our be our their

the our focus our outperforming share best being experience our These to combined continued us allowed and suppliers. and to the customer for market on efforts We channel continue growing industry.

in inventory. generate management our Our a and million capacity opportune This capabilities, us XXXX, enabled in demonstrates capital and cash investments flow operating result positively disciplined execution record. working in to company capital insightful $XXX

in Total XX% down our to year from full -- quarter for billion, I'd results. at guidance. XXXX total like line and Now fourth which the recap came quarter year of our record and was the third sales with $X.X in our year

billion sales fourth XXXX, or down quarter fourth compared came the in XXXX $X.X total of of -- $X quarter the For sales billion to in at X%.

progressed. sequentially declines our in fairly sales the and of markets year the as major consistent were Geographically, X improved

both better and Texas, for quarter year sales we experienced XX% XX% for X% of strong bit X% recorded sales down of in -- but in at XX% X% full the were minus down growth X%, the down we and For as very year saw respectively. the fourth in the comps against full declined periods. the fourth in come XXXX. performed California full a sales XXXX year, and fourth of for XX%, X%, Florida in quarter. the quarter quarter, in at similar XX% down consistent Arizona the minus results In

the full our as year and in and X% For year-round of quarter, improvement and markets year in sales the seasonal XX% declined season and year-round markets most showing progressed. our our fourth the XX% and X% the our markets in

year-round For markets. X% some and fourth on product year. XXXX, sales last for category now and provide quarter XX% in perspective, up seasonal markets the were color our I full to our of in key year up year will compared the our

critical year, first the X.X%, challenging full and significant the quarter, share inventory season clear the in channel the by result the down pattern, the Chemical only X.X% a and the to the for weather sales maintenance of in were start considered X% of category. this for excess Considering deflation trichlor driven during the ] that year pool softer XXXX us our [ further year but up we the in down expanding indication fourth quarter. hit

believe and We pass inventory us from excess to the the that we be XXXX behind will channel first normalized. has exhibited price significant quarter XXXX after volatility of XXXX

that to As progress of the usage we acquisition. acquired chemical of chemical made initiatives, SunCoast it expanding packaging relates our great supply Porpoise as on we our facility part

XX%, was the with pleased profitable and this and in of the These profitability. our XXXX. of actions construction group. product new down X% that surety X% our strategic team Materials quarter. highly Building was pool declined around that and down to Considering the produced performed to quite in XXXX, the for XX% very how also than facility improve tripled and year an more are compared amount estimated renovation improve full the only and chemicals we sales sourced fourth capable remodel supply not teams XX% our but from In

in more more that material the to product in design proprietary a and quarter, of resilience and the towards customer industry. team new discerning sales the remain best source for has despite demand the complete maintenance-related the base. convenient and in equipment equipment or construction network offering dealer the No equipment Our one branded X% a the best-in-class our building for remodelers decreased sales both pool nationwide look XXXX. caters for demonstrating service We NPT the expanded and lower pool center builders products our go-to offering year and center pad, owners outstanding activity fourth capable

many remain spending growth opportunities pads for the cycled pool to backyard heaters during desire and category headwinds that the product purchases. of more going Demand was item and we equipment and the of older pools that the pulled equipment modernize cautious most within installed move discretionary as years demand base the incremental discretionary the cleaners saw forward We continued consumer forward. on pandemic the a the connected confident present to ever-increasing need and towards through

end markets. to Turning

X% both full year quarter year the at The fourth for growth the for growth Our and commercial continued business XX% quarter. and in fourth XXXX of is full the of to for the X% on grow XXXX. top

resources to XXXX, and continue markets, invest the included service operators. furthering this needs expand equipment to wholesale commercial distribution products our distribution in a infrastructure construction investment We reach our competitive our pool acquiring in installed base company, pool utilize expansive market. commercial and efforts serve pool commercial to new In the commercial to

resulting X% gaining pool Unfavorable sales supply and customers Sales wholesale area retailers independent half for the in continue of independent weather industry. less retail and our maintenance in to year in in growing the XX% fourth distribution to the XXXX. the We needs this quarter. affected normalization market chemical and declined specialty share full first our of

start the that have late adversely seasonal in concentration to the of markets retailers a impacted were We high by that year. operate

are all Additionally, this channel. category Keep cleaners heavily is and in to spas, returning to pre-pandemic levels. by mind, represents products sell this the like retail impacted and the which pools

retail quarter. are retail X% concentrated and Retail channel to Texas and and Florida sell sales fourth through compared the year in by increased in stores, our represent A XXXX independent Pinch declined the for in X% the XXXX highly full which Penny

We given this had. the dynamic and result, market comps the tough we are with pleased

the year For of A fourth grew reference, the in XX% Pinch and full quarter XXXX. Penny both

Europe. to Turning

sales previously sales XX% X% affecting or resulting Eastern costs escalating XXXX, in under the economic the following record rapidly fourth Europe, currency XXXX, local results European the we caution. in of full in war and the and in for quarter. XX% -- customer in in reported, As In backdrop XXXX slowdown year declined Europe consumer an declined energy

see to growth long-term of our signs inflection in up remains believe about opportunity total end and season began pool towards Keep some We swimming in the our X% strong. revenue. of market Europe makes the of this mind,

fourth sales. For full and quarter. Throughout residential weaker for both Horizon, year projects market commercial sales the buffered XXXX, stronger irrigation from declined net sales X% the

and landscape growing growth needs. support distribution reach, expansion on focus to Sunbelt opportunities operating and greenfield continue through We to expanding markets primarily and long-term through the in the on within leveraging irrigation our the model our equipment

Now talk let little a margins. me gross about

consistent for and expectations. with the gross recent our at finished margins year, Our XX% guidance long-term full

capabilities growing chain supply We are proud optimization, pricing label private of this accomplishment, highlights our on portfolio our and initiatives. products value-added of which

gross XXXX. XX For compared of quarter the XXXX, of improved basis the points quarter to to margins fourth fourth XX.X% our

employer ourselves trends, details line reflected XXXX, we our on the guidance. the in industry margins retained continued from and we continue competition. sales in increase remarks. on more Despite provide a will cyclical X.X% gross prepared Melanie expenses her the Operating with in previous to to choice team our the in sure best separate of that talent and initiatives in investing make our

our conducting almost customer-facing chemical training through count and facility. events bringing centers. In opened to new total XXXX, our capacity continue locations, Additionally, acquisition, XX packaging added XXX we sales locations expanded at opening we and X locations and new to

We distribution also expanded Penny capabilities. A Pinch our

the has franchise the year, that network Penny the A Pinch stores added added a number in ever which to Our added stores XX franchise Xx franchise stores, new year. most of over network the is last

Pinch synergies, A distribution serve Texas we of through now advantage localized Taking network. our the stores our Penny

and expand the for footprint open network us distribution wide Our Sunbelt. to the quickly door integrated throughout

platform growing increase focus total in initiatives, While without intense of nearly through our X% lines or service. we total POOLXXX invest processed from compromising in of XX% XX% in customer grow expenses or XX% and in XXXX growth-driven lines. in lines we total lines, applied BXB Orders a to in continue experience to XXXX, XXXX increasing total controllable continue variable to to

-- the year's faster We also growing than overall by benefit dollars through rate X% sales. revenue environment progress, a digital sales demonstrate this particularly net in customers the tool tool in at results it provides. our total growing increased showing These and through faster significant our XXXX,

product product effort time We experience. information and overall critical significant the feature user this improving have user put into and like search,

traction just our POOLXXX customer-facing renewed on are to year, platform. our In for a years tool our customer-facing Last service tools ecosystem. BXB POOLXXX building to our water launched our launched XXXX, week, ordering These we complete march customers digital approach we application, POOLXXX towards transforming revamped gain POOLXXX for With the solutions, innovative we a a continue next-generation that platform. will POOLXXX incredible last come. software. to solution to And all from

awareness. water proprietary label best-in-class grow dosage analysis and us and private from that tool, and water brand fed swimming testing Water safe methods recommendation pool. to offer in-store a chemical all digital delivering from that the will products variety mobile and a and healthy titration are liquid improve POOLXXX ensure of provides solutions into chemical help our diagnosis a

quoting business CIRM automating, through for their already and procurement designed advice an better and POOLXXX accurate pool for includes tremendous consistent, provide ordering also water enhancing securing small, has offering. This facilitating all and the allows creating our demand while onetime that and established and the it to service large our will requests, collections, stores invoicing POOLXXX of in customer customers, electronic chemical integrating POOLXXX our embedded a account. owners operators CRM and experience. to tool our offer with service manage dealers unparalleled help routes, service to daily applications

Over add their the to this quickly. more to we next more productivity few and our years, ecosystem business customers phases further to help add plan digital grow

professional digital see can directly our will customers early help products. customers services and For best-in-class drive resources tremendous their our their that provide stages platforms, offering, connect all service help to of them we in adoption, to for proprietary marketing and are but opportunity profitable X leverage expand easily unique growth and business. we the retail Recognize customer our

in on me performance. up income billion let XXXX. $X comment on, but Moving down from in XXXX, a operating income our in million We recorded $XXX operating $XXX XXXX, million from record

compared was XXXX, decline investments costs making and generating basis in to to growth-oriented For business. from the manage year Xx but demonstrating quarter fourth in quarter, operating recorded a XXXX our ability for XXXX income, while XX.X% million margins over Operating XX% points XX.X% a margins our in XXXX, the income XXXX. operating of and from we leverage enhanced record the of full of operating the XXX expanded variable effectively fixed expenses $XX

installed us, potential our upgrading remain future. industry in let renovation continual on long-term comment and POOLCORP. maintenance drives needs. growth aging and behind A I XX% me the and excited specifically the through confident revenue our periodic growing base XXXX very With for and of and

the will over We to in best do needs, XXXX. business XX% of nondiscretionary continue our up do maintenance serving which what made in we

normal XXXX, expect We slight maintenance our product weather from assuming components growth in conditions.

Further, to pool Penny professional and enhance products offering, and aftermarket and maintenance serve category. network to positioned to capabilities talent continue market, tools. digital service A considering share have we'll important the scale, no Pinch better this considerable and platform and we one in DIY is and retail to added our With our independent repair grow industry-leading expand

to consolidated top X% X% our in benefit We with estimated business line. to again expect increases an overall added XXXX our inflationary to

believe and make we will fluctuations on largely sales. remained some to have stabilized, pricing portion as a of very that We our that commodities equipment pricing chemical see expected small solid up

XX%, represented vary broadly likely construction pool pool The in units to be construction pool market under and in that could down to flat although could XX% geography. New higher by expect of reflect Currently, just number new we values. our XXXX. business

uncertain, interest remains While outdoor the rate past strong. of cuts timing future over rate of years the the and living full impact remain couple growth of for products interest outlook long-term the hikes

sidelines expect new more borrowing affluent rates content building the features will consumers stay pool a likely seeking the and end inflation products As to $XX,XXX, approximately cost on will of the towards recent enhanced drive pools we higher consumers in with of swimming increased have XXXX. mix the and and higher budget-conscious pools again

but available outpacing the seeking with watch as we making in are the slower have other rate new existing where new generations and pools trend swimming that our sales, to this last the up will considered to backyards shortage, strategy of creating several the and housing than or for seen a is slowdown at it We serve of the future, ensure years. homes located for are new home expansion carefully Millennials pools we part be. construction effectively

and in most priority be about how basis. new contemplating all for efficient activity on and to should connected driving a technology-enabled products. for and a products vendor for remain with of Automation the work high channel most base provide the an partners introducing particularly we this XX% our generation, market Renovation but remodel installed renovation to stable markets, annual

modern out operate, gets Surfaces becomes to wear are a need of Equipment more look. or repair. a outdated maintain uneconomical and

consider discussed, semi-discretionary. have we As market to we be this

and So larger costs. not their this cycle rates but higher pools life XX% flat the but cycle. persist, economy a market R&R will down win sales too need interest could all will if if potentially to borrowing consider an with during this periodically as market, We renovation be normal

including from her on help an ASU. Melanie expenses estimating our are basis, share margin provide on variables, comments comments $XX.XX per an $XX.XX $X.XX gross sales understand EPS estimated additional and we will XXXX will these for in view. to that Considering to a be you range benefit

net that line flow be expect our We unchanged. allocation and from will cash in income, priorities activities operating remain capital with

We our flow robust and invest our use to operations, will expansion. in cash growth

structure debt We repurchases dividends Board, strategic with pay share the maintaining returns to while approval a consider exceptional continue ultimately acquisitions to and shareholders. and prudent our will our of fund providing

further provide enable stronger. that share. our focus Xx a new gaining unmatched larger enhanced allow us us a support, of and spirit execution focused to which has relentlessly position of been execution. approximately and innovation continue never This being will Our to value history will customer on by competitive competitor We have nearest than remain is

the in ensure new strong It on rate and ownership that living to the continue pool is and imperative last in stronger. pool focus we continue has are construction future a get get customer Consumers is we there will cautious more but doubt, on investments years, today than our stronger. even that slowed. we of No at the is investing the few of outdoor desirability

policy that The unique change grows Don't industry about and portion positioned the other and no only sight like upon changes better but economy to of industry. is which cycles improve this the of as the environment is things impacts most monetary lose will business, our and of fact continuously the one evolves, the company demand that smaller itself, the weather POOLCORP. continuously

closing, confident the X,XXX-plus I am our to the to am progress of continued work and proud as and the POOLCORP of our which you thank clear team. our hard say every each industry of continued of our I to In day. progress value -- superior proposition, employees I improve of proud each in want leader

reflect tough than one. ever. But year, you, it on better are company because I has this As a stronger and of been we a

want to customers, thank the of and of for living her benefits our Financial millions now of most lifetime. our Melanie making turn Hart, also over call I of partners our I to memories detailed the Chief commentary. supplier importantly, for and President Vice helping will healthy Officer, and the a people outdoor Finance enjoy

Melanie M. Hart

Thank compared Good modestly third finished as quarter into we and to down morning, we X.X% quarter. versus the for benefit fourth improved X% I'll quarter start are of X.X% an quarter negative cover our move what for out approximate prior you, XXXX. and was trend, as the Inflation how moderated Pete. a XXXX showed begin the everyone. seeing year. for when sales results, Net XXXX then we fourth expected

taxes a of the prior import XXXX. additional benefit, includes quarter gain year-over-year inventory basis XX.X% in offset from basis over improvement The points gross basis recorded margin decrease the by for quarter fourth XX fourth improvement the XXX point third quarter and XX margin an We year realized points a a quarter, XXXX. change of from during XXXX the

increased During fourth in operating improvement over fourth quarter, year's the efficiency expenses and be quarter. mitigated operating sales largely by Cost and wages continue inflation insurance center expenses last management. occupancy, X% to cost

the of $XX quarter $XXX Operating for of represents million. quarter by income expense. X.X% X.X% quarter QX income $X.XX was for income, reflecting quarter in the Operating interest a per fourth fourth the to XXXX. share in prior of decrease compared operating operating slightly XX% million of in compared year from offset of margin Diluted to XXXX, less was $X.XX lower the earnings

Other represented our results. of to year Now review performance. XXXX, very strong a than XXXX XXXX year I'll move full on record a comparing a to full

$XXX and transitions industry opened free million pandemic chain operating stores, flow, disruptions, sales inflation flat, of $XXX parts heightened XX technology, of of for position, our successfully the over approximately reduced generated million to XX from cash with the As new over our sales borrowings and and centers, covering Penny all customer-enabling demand business million acquired shareholders returned $XXX repurchases. and Pinch centers new future almost introduced supply share inventory and our dividends period expenses franchise and rightsized in A through effects invested held we our X growth outstanding by greenfield

activity, XX% proud sales activities year we of by built pool and operating the our the X Within net the demonstrated levels around which represents All of cost performance sales, down year. percentage approximately expected reduced points of prior be benefit. and model pool resilience a growth. remodel X% as were XXXX with of renovation inflation future in record units We total and product construction sales of in combined sales new lower billion, we're from driven approximately during net reduced sales. XXXX, for in of we net Lower realized to principally finished our $X.X XX.X% all, of in decrease positioned successful ourselves

to net of contributed negative the during sales in buys chemical additional the the inventory resulted pricing early Lower estimated at primarily lower X and and an of start the customer the year in the first on year due higher percentage business. half are weather customer maintenance have the portion sales. of Unfavorable commodity of X% impact to points

the products, X attributable remaining sales of in were Lower estimate year. lower Horizon and points activity net percentage the cleaners composition representing Europe certain of construction such impact our sales of the discretionary levels XXXX in slightly new pool our during heaters to American Additional declines changed and North sales. and as of

the Renovation For XX% renovation our XXXX, product to construction-related and product approximately In comprised that remodel roughly represented products our new XXXX. indicated portion XX%, coming in sales approximately to XX%. maintenance estimated pool of sales moved total our remaining new were of at on lower used preliminary market sales outperformed products, sales decreases appear we and certain closer decreases of new estimated XXXX, by pool total pool remaining sales the for remodel the maintenance. XX%. less construction new level and have units sales specifically with these product the new severe product the business and construction, of were and in as Based of products XX% reported permit XX% as constructed we activity from estimates market than

Gross margin finished the line long-term with full target year XX%. of our in

in or year, seasonality variations. to we As sales typical expect a quarter we mix pluses and minuses product see each due

saw quarters normal cost of level. from our of realize each product benefits changes year, lower remaining incentives season, to the the vendor patterns start the and seasonal we resulting purchase as impact slow varying fluctuations lower lower from mix During inventory, from

$XX inflation, sales the costs were only centers expenses. offset X.X% compensation opened XXXX, year. continued increase and and partially million occupancy in Operating greenfield to wage sales a million including investments $X $XXX over lower and Increased volume-related to and expenses technology acquired incentive-based digital transformation related during increased million, locations by

prior development of levels. market sales and new to normalized prior compared are in Operating additional and conditions to growth digital transformation investments The stabilize margin generate as year XX.X%, XXX growth expected industry at sales basis our decreased and points which to the capacity came significant returns normalized have and represented revenue leveraged long-term over our when with rate year as margin even XX.X%, we pre-pandemic benefits gross expansion have consistent of operating compared levels target. scale a to our record margin in operating margin dollars

our the was the included of which $XX.XX million, $XX.XX when ASU, and the guidance. we added activities fourth the decreased million. increased reduction full excluding working quarter decrease Full of in of Without XXXX. EPS XXXX. of or our flow to record benefit cash per diluted both ASU of the $XX.XX million This Cash We for benefit was efforts a per prior $X.XX tax from capital compared in in compared in improvement $XX.XX, to ASU earned net our was rate, of periods, $XXX share Earnings not received year, for of share an XX%. $XXX XXXX $X year an operating a the $X.XX a record including operating inventory million management, impact to XX%. results strong our benefit from over and from includes that $XXX contributed XX%

down Moving the to days especially million balance accounts team comparable to to the meet year. great ended XXXX sheet. sales by and during customer comments of year prior totaling demand million, on our tough XX.X with days working year-end We a $XXX A environment. receivable outstanding from our job $X needs,

goals our quarter, on third accomplishments. and reported reduction inventory the During we

million acquisitions in activity early fourth year higher of receipt during number balances buy the new higher-than-normal year-over-year, reduction quarter, inventory opened, impact $XXX inflation. locations executed the and with current inventory Even we almost of including

in to to maintain expect season, XXXX. than XXXX inventory ahead lower but the balances are throughout We that first a see quarter plan seasonal increase XXXX of

of below X.Xx. by borrowing debt finishing XXXX. Xx, billion million year-end $XXX compared leverage We remain ratio levels to of reduced total outstanding leverage X.X target ratio Total $X.XX the to with year our a to

XXXX. reducing shares compared million weighted million XXX,XXX average fourth diluted stock, fully $XXX our by outstanding our in of including to $XXX the the repurchased also full We quarter, year

in compared our our the we May dividend per million with we to our $X.XX XX% share year Additionally, shareholders, increased history. second to quarterly returned share highest XXXX, when by in almost repurchases, $XXX

XXXX. his Pete of in expectations our the Next, growth I'll XXXX market outlook comments included timing the sales and comment in regarding on for our has net recovery.

XXXX. we to the as continue With market a in that to outperform backdrop, expect

from We to single-digit X% to X% pricing sales a on with to and increases XXXX, X% in a weather, product benefit benefit basis expecting a blended discretionary could stabilize. first potentially are quarters. expectation the the flat will see attributable some to primarily line This currently normalized economic low rise pools still considers of maintenance installed product will conditions slightly our X increase that until see sales and base pressures in with X%

volume similar decrease at considers and and at markets the the guidance renovation to also low up end. XXXX see the X% potential a to decline high pressure at remodel in of to could Our Europe XX% end levels up low modest new expectations continuing the for end. and construction Horizon on at a

During XXXX, with of the will and quarter see we the an X increase in days X X third quarter. selling fourth in

quarter of expected the full However, X%. be to second has seasonally our than extra historically, over we for year. year margin be the the expect highest given as impact the margin timing Gross less vary Margin guidance to is XX%. days, of will reflecting with near typically quarters long-term the it target gross for the

in benefit be we through carryover to of the at cost sold will substantially place first the of early buys quarter get XXXX the in lower from of from end will vendor XXXX inventory the normalized the expect took that that remainder We the similar XXXX.

year of a customer from margins XXXX. XXXX expecting level which not early corresponding are prior the first to benefit However, a also in was in buys we quarter impact lower in

operating prices the selling resulting expense should minimal on will a the first there quarter. from remaining We other see Wages, increases also of costs be the modest and XXXX. and margins chemicals at effect in in still lower quarter. rent impact are current in on second commodities And pricing, headwind,

initiatives will exert plan our continue the accelerating ongoing creation will on margin technology We that company to pressure our operating the short-term projects productivity. throughout capacity improved drive improvement. But

grow additive drive future and investments operating these are capacity However, intended continued to increased drive growth, strategic provide efficiency. long-term to

approximately Interest current our million $XX million repurchases. be initiatives. $XX expect for locations expense we will in based on million $XX incremental XX%. cost a Specifically, expense and technology in incremental we considered in to operating investment of excluding million XXXX should have we $XX performance-based greenfield open million between share for be our and guidance SG&A margin $XX Overall, new and XXXX rates compensation, normalized any

$XX million. of anticipated amortization for to be range Depreciation XXXX the and is in

expected estimating are first in XXXX. expiring and a quarter the options stock shares from We vesting in ASU of for the $X.XX restricted impact benefit

annual Our approximately to is ASU. be rate tax projected XX.X% excluding

additional be XXXX results income including we approximately $X.XX XX.X attributable excluding of of average the to QX will X.X% in XX.X common diluted improvement guidance ASU weighted the quarters represents with expect midpoint the outstanding $XX.XX shares For no remaining shareholders, a million $XX.XX, buybacks. benefit. guidance This for The to to for the end and shares the that applied net of shares million our share ASU. EPS at

see we return XXX% flows to After of would around income. normalized XXXX, our record of cash to levels XXXX expect in net

capital consistent Our X% cash ongoing net priorities organic sales center expenditures uses of of include sales capital and as of around X.X% on such growth, to expansions. allocation

plan and buybacks. We acquisitions, continue dividends to also authorized share strategic

the with levels standpoint. increased relative higher XXXX from and stability Gains sales remain. flow coupled growth available share authorization. year XXXX, or in of majority over XXXX, market $XXX In Since and of repurchase the million XXXX the seasonal current we period inflation is inflation have of XX% of second the a with generated our half the from acquisitions share activities ended cost cash reported of higher under our and from to We XX%. typical year as operating was product

XXXX higher from margin pricing to our and initiatives continue and realize sales versus acquired chain supply also We levels.

we our us in leading value. and Our to operations shareholder long-term areas us continue long-term continue while for invest allow and market that growth will XXXX in improving can position in to as position decision have strengthening the proven to to XXXX our forward move

today's for you joining call. Thank

line are for now We to the questions. ready open

Operator

The from question Instructions] Blair. of [Operator William Ryan Merkel first comes

Ryan Merkel

Thanks all on the for guidance. details the

do the a moving to quarter want pieces. talk there's is I about what first because think I few just

something XX basis down margin, points expect points, should XX neighborhood the year-over-year? gross we in basis For

Melanie M. Hart

compared would We the saw quarter that much be XXXX. Yes. to would seasonally in expect more we first margins in what

So would quarter. the that expect I down first would it in be range for of

Ryan Merkel

Okay. Great. to seasonality. return pre-COVID And you're then going I think to

So for in XX% I'm of EPS? EPS should about sorry, -- kind the we year of think sales XX%, XQ

Melanie M. Hart

Yes.

to with the of to a then the the And in will XX% to expect like So that typically, that not within that reasonable we've well-controlled slightly overall to range. compared generally, be what I it more kind margins levels seen couple think historical line EPS top we less is contribution consistent quarter last years. of and and seasonal operating would overall would year. But first XX% return for expenses,

Ryan Merkel

about Okay. Pete. seems which It tools this of conservative, and And you're guidance a lot did just maybe you expected. investing year? one feels in It How for like more I think things. new

So maybe maybe about you for versus think it. products high to products? then guidance? us what just way think level, I assuming for that's an discretionary nondiscretionary how are do you easier think about the And the

Peter Arvan

Yes. the for question, Thanks Ryan.

that to for guidance our beginning together that, impact last didn't the going construction. increases those put the to and a because year, in obviously, trying stronger of have were to of size came we we the were we rate interest we going see the the was out year, bit rates As that number contemplate on of

that and biggest maintenance be felt going weather is go. business I us, in of kind XX% every We a -- So bit back break that's we with The as impact this a to I the as If I what year. We little the We our -- service. at to better year. business right? look the that's of to that can into guidance and repair, area the provide take for step the do get of better going little share. is business down

better, the that's If have turns it's us. that a if open business or for year for pools will So sooner, the slower favorable, less to shine negative weather the weather then going if is impact.

I X year of of last first so inverse weeks year. through of saw really the of -- the guess, kind we we it's year the weeks what As the X far, look we're

was So March first then and last quarter beginning tough. was very in better weather year's the

year already rain. has XX I had over this California of inches mean

conditions get new we're we with the business, to don't I semi-discretionary that much all through repair the cycle. with our the going year this the being that we the would most is, get about and So look and of to construction that I through at change until think business. maintenance given election wanted were and sure to talk as think tell make topic we are -- the the X want on people pool And as parts the economic probably really discretionary I appropriately uncertainties impacts on And look weather. you, also I and I conservative outlook, at

really HELOC the by financing somebody approximately the is the can't say that that reduction. needed rate pool if that -- third point that that So XX% of interest I year quarter X.XX the that rates rate, I believe Fed in new cuts which a now or for X.X% X.XX%

pool. okay, XX.X% I'm now, totally build in or XX.XX% going So say, I'm that would to

relates we're environment to pool demand looking consistent. as construction fairly new to just it the I be for So think

are slapping the to comments, mentioned on price should -- business the the doing The the and -- that renovation to good. every the subject is, because renovation?" that XX% of affluent that's the increase We more the remodel, of going will less of think on there year, homeowners are I buyers my business is average I that pool "Hey, going the about, And owners be about as way. pool think of decide in a be phenomena financing,

you're $XX,XXX Renovations now could be $XX,XXX depending in what doing. to range the on

seeing our saying is because saying, still So do a are those stages can impact I products. remodeler we're okay, some what larger think on we costs borrowing there maybe of builders of is in this renovation big --

business is normal think chemicals, products, good. cartridges, I pumps, So filters, maintenance that

in investing our and to providing proposition, focus it business for making customer exceptional customers do are value us an on easier We our with experience. improving

we're pools. demand building of new think centers remodel the I terms I I design be renovation to I play the dealt material and that's network but and look for portfolio to of our in at going good. cards going of environment think building the have and expansive what is that's on we our to If look be for at materials, products good,

and So the X I weather think the of economic in we for context viewed what got like. weeks of overall, what year looks first we the environment ongoing

Operator

of next The Sachs. Susan question Goldman from comes Maklari

Susan Maklari

Pete, continue 'XX? dynamics the to and gains relative you're share through you you've you're this some for a thinking gain how competitive to into My 'XX? just years ability And little the the the updates we realized a perhaps any as talk operating through like guess, coming about to talk question, on as year. bit to move to couple last then the Can hold that environment is, share first even bit I'd I come that in and of that, to may

Peter Arvan

in any is industry and of on demand that Sure. environment level the is. environment overall The competitive competitive depending the interesting usually dictates how

had we would So before. see desperate you, in right, good, haven't a doing months, coming seen that there's the competitors environment what I when nothing some slower XXXX the -- the beginning be of consider In and we of is off things. that XXXX, to that we see tell it in demand that isn't year would we

cost those has view we than better as efficient nature because -- there term is nobody Nobody than we do. we in short a more are. But position

see So in and ridiculous many it's desperation we go that customers -- it's is unfortunately, cases, offer in when And that sustainable. competitors too. we nothing and it's out that, our deals, know know of

sure is we and try side. on We and we we help customers' worry as tend provider sell attentive making making do the and how certainly are being they're we the about to being grow much be investments market, can business always, how our technology worrying in So to more focus on, driving help best lot we're needs and of to easiest how about them them. the a which them can instead product we doing that the their can productive, with the how business of

our doing productive by to grow Those customer. customers along we them tools that right from today hope are help faster. designed specifically order and an I that, out opposed And that more if as to them with just a we'll get figuring grow can to make

a and So view we much and accordingly. have longer-term invest therefore, act

I believe gained about of you XXXX. in would tell we The share gains, was second that again we question your share part And I think.

that quite it have given are every of day. that we the And we data to. confident see access We

our Now day, and to wake have that for partner force that that to day, X,XXX to But make we -- sure compete have sure make we to day differentiator. the for best people to and our tremendous market given to right? and a we tremendous We resources is that we provide I've unparalleled a a That compete suppliers, every think and up provide the that continue new best huge got I our service. are customer every and want we provider, best continue force. every that have and is customers the channel we that for

to deliberately fear we we back. and the that to business that on the we're that customers may from along opportunities So really I don't in provider working be make give get with market, to best enjoy the about think gains so the new the to way. share we've friends them more existing Rather, continue those focused had our

Susan Maklari

helpful of the Okay. discretionary wanted That's there, the then I demand things. and little the to semi very dig and into color. And kinds the a products cleaners, deeper those heaters

about several talked the You've quarters. the weakness last there for

whether into as think purchases As come do change environment, move do coming And the help any year, you think move or off about demand? we see for through guess, remain I saw could we macro XX pool start does last the the in it headwind they that. had start we tough Is that a months this enough the so, do could next or the it that of in you some into back the to think to forward trough to that the to market the year then, late full year those that pandemic? with season, during while that in more delayed people of you maybe that and that, drive pull offset comps comes the that 'XX,

Peter Arvan

Yes.

it is and our those hands for And we will we're on is we not our that know that And necessary. term. products what the in advantage is that think have short right? time, be I

cleaner pool both can the most to only defer you -- need a you I automatic need pool, or So or you clean need you somebody if an mean have in you cases.

cleaner a heater, -- So we there's they're cycle more cycle there things. for normal time and And if normal no a if those do it. have for that right, to those there's when comes discretionary longer discretionary a purchases, or people or replacement a semi-discretionary replacement

on demand in was that those I the there pull products? absolutely think forward I do some do. So

month technology improvements on goes a back same are get we driving do. cycle time, make normal absolutely the that that desirable. also to manufacturers products closer think products? more think at I also those them by, I that the I -- to Do those every little being the there on the replacement

where -- we're I the exactly demand the No. is I across the heater think of that stopped demand you have tell shrinking where can't inflection to Is now point going universal we of markets So Yes. again. month are happen? you board? in that now I and tell it starting can flipping to is that higher Is that we grow split.

time there takes more that consumers and spend. their an for little for think a get this forward. elevated pressures was pull entire area consumer the But to comfortable us that with the through inflation see that that just cycle I to It across their is a they spending

that's month just I lap tell think and on to can't starting have. we're not-too-distant in those be products to that, to you growth I the we'll exactly future. back what going

Operator

of David comes question Manthey next The Baird. from

David Manthey

international, Just have green, so price you give one we Blue, and this on across volume us business place, please? information base could

Melanie M. Hart

is you're for? that what looking that is for And year the full

David Manthey

quarter. the For

Melanie M. Hart

so we on it it was in impact X% to contributed of green it -- Yes, very the quarter, have for was price -- quarter, meaningful there in the we little flat. for less than it a quarter. was about acquisitions. X% X%. quarter. the from contribution as X% business the the relatively it For so didn't down to -- see the It international X% because saw negative did base that We then side, kind And was pricing because thought about was in -- relatively had And quarter. same was was the significant consolidated revenue

David Manthey

green? the And in what price was

Melanie M. Hart

The price was higher green end. in the to closer

been overall. have I'm for would X then -- to it be closer And quarter will closer with it X X. the So sorry, to

David Manthey

you revenues SG&A looking then And Melanie, or right. dollar assuming about Pete, often gross margin you and long slower gross growth. than term, All Okay. flat talk rate margins or at a growing a

dollar expectations sales growth? what of growing relative SG&A secular from for to As here, your forward a gross you profit growth on look basis or kind are

Melanie M. Hart

Yes.

that time. achieved look will see you we've the of when you always year, consistently So over at guide for as similar formula what kind next

the where investments And XXXX. expect into of out incremental kind move those would I we so as X specifically, called we areas

And in those indicate fluctuations year upon spending the how is get kind -- those many wouldn't what burden at out well. past on kind year. could continuing see expect would we of depending of in expect compensation base the this of we that we're particular that we performance-based point, as the dollars we each for would term, we that that would any larger near As centers sales necessarily of kind be open the expense that, expense IT part

David Manthey

term, long it higher than growth used bit But then that was to it XX% like and to growth? a be little SG&A relative sales

Melanie M. Hart

Yes.

technology you it's the to going be XX% consider than the when higher So investments.

David Manthey

XXXX? beyond Even

Peter Arvan

Yes.

many our will many, us in come. -- years for Dave, differentiators said, to for they invest The are in allow we're technology are they're real real take to us, investment. but growing that keep we we investing which trying platforms to As capabilities,

that we're to of know ahead spend that. we So the going on benefits

technology going that if back, but get I'm at beginning expect really going way ratio years. I to in to more So would technology, the work get that I'm in early to that on, spend investing would cycles outer that's on us. I'm looked in going And the I back that for the

Operator

Scott comes question Oppenheimer. next from The Schneeberger of

Scott Schneeberger

actually On for year. points this the has X weather, tough more X guidance, probably weather it started then beginning California you Peter But you, comments the maybe year-over-year. sounds with Melanie, said had percentage I that like those benefit in guess, or Peter. then at

So want sense up just really to opportunity looking to where -- and But last how that at that the you're year make a it's get of unpredictable. very ground. versus

Melanie M. Hart

Yes.

So to high end. weather at within what looking really X% is the X% recovery we're the

be would consideration the at recovery. of so And flat revenue base weather no

the significantly know were quarter, we we year. more from So comps have in do normally, weather and the where we kind of for we're that guide, but second first impacted looking for weather, when normalized

what we of if recovery as it, to we our a will know and of really look within at but But it's this when hands timing of We kind range, is bit quarter-over-quarter. kind be. that very hard So predict -- get we forward, point. the the impact get out the little historical

Scott Schneeberger

then follow-up, as inventory And Okay. a down. is

I done you're it with Did bit then Or and your inventory third I to quantified XXXX. second, all was challenge Do $XXX around how think -- think there first a lot? in more 'XX? you is quarter, that? a lower was in million. I still reduce guidance you opportunity it believe the Is overall fourth. room a year-over-year it levels much by managing you of have get XX% in and but in

Melanie M. Hart

Yes.

on from is expect. what quarter, to So for stocking be we a us for pace quarter actually, in would the we're much to prepared The first very really uptick selling season. first level

see we network, creation would of level really existing historical as year-end of quarter to do overall sales And centers. with be we of kind our levels. the the So from we -- kind at continually the would reduce that to increase consistent first internally as across we strive inventories but look part our of capacity initiatives,

flip in And new sales then the to as well. centers side we bring continue products that to to those also is

in would standpoint, by our and improved the on would we at kind be levels of SKUs look target the hand of we're lower end you of sales really that days year, offset supply chain. of mix and of by a a when certainly that see this additional carrying days because to overall couple improvement, from expect So

Peter Arvan

improvement. that ways we're And and Our at at market inventory the do inventory job more at look best of those to sure it management we continuous our new those level. supplier that always products be representing is partners to efficient We We we sales center. looking at take market. is individual treat look one the functions for like making to the

a I our is. manage and well do tremendous we year activity inventory, volume we'll ability to last what year, as the this commitments think deliver with line in and on So demonstrated that

Operator

The Longbow comes next Research. question of from David MacGregor

David S. MacGregor

guess meeting back fairly a talk to confidence could. -- the expressed operating you've conversation number margins thinking go given a in just weak analyst back I'm made to on structural a want in and hold if go environment, pick of the I we level previous back I had you on progress Pete, high and your SG&A, to want to up where And of I a factors. XX% that ability around

taken to be investment whatever you that consideration achieve requirements And presumably, point, that. into would the at

level have this Now from that gone the Where those achieve things investment up XX.X% year, changed necessary goals which to divergence fairly time? from greatest seem year. Is you last substantially expectations? of envisioned XX% to point see and did just had the your in you at

Peter Arvan

our Well, contribution is. I the of think added to deck terms more we've what in things

I are on think are different. if those as you doing invest looked technology the and ahead back we platforms I a and And we the of investing couple actually that things. work at said, the where today, of as go the cycles years -- working way a deck what we're were money, I and from actually perspective today where is very I technology you we

comments, expenses mentioned I initiatives. controllable focused as our time, relentlessly creation also we across rate they initiatives branches, of the in significant. my But too. all were also are at on years renewals same the our what the I ago, productivity look at levels capacity that and looking At rental there's seeing a couple the we today a couple If of of versus are things, rent are our

compared But are a look margin, digesting look those job good at of on capacity view. very they are it's years think the the a doing focusing couple to by as costs labor If as increases longer I ago, But significant. is I we today continually seeing I a creation. that business at operating

last say, forego I to don't did I in So because that, or have I it this I year would exactly invest I get make we look that "Wow, to programs." better at then a ability little bit probably longer-term our did what and sure if year to

long view long-term the we to believe here this company haul. that good characteristics. or We're very going in industry, Our has -- We're be anywhere. growth is industry we're the going which biggest biggest not for

we when long the we term. for invest, So invest

and of think think at level where is for the I'm it's business, No, our investing investment. we're that you the concerned not longer-term spending returns up? if wise I look I money are a I because year am that this very So what

grow And ability every if pigeonhole to okay, ourselves long be I we because to would think think we stick shortsighted our and I that term. to said, we got the would year ratio over we inhibit

David S. MacGregor

investments, And that about into get if of operating these Right. pools, you returns you new XXX,XXX achievable you're with XXX,XXX, anticipating terms if back what's environment the think on margins? an in

Peter Arvan

I saw on operating think back could look at I think up margins, if in history to be units, you peak. if at I considered, to we our all pool XXX,XXX our back ability fundamentals of of was a But that close structural new we the construction the Obviously, mean, things those numbers is delivering the things and to to business consider. variables on history the there, company's execute there. of are lot

in volume obviously, operating largest terms So lever is margin of our improvement.

goes at roof rapid rate. margins the comes a operating because to our volume back through roof, expect construction goes and the renovation would new pool if So then certainly expand through the I

Operator

Trey from Grooms comes question Stephens. from next The

Unknown Analyst

for Trey. This is actually on

but longer tech you investments Sorry in to color more go on could SG&A, give some their are to and term? the what these back impact us more

Melanie M. Hart

Yes.

largely are described. the tech Pete in ones investments the that So

it's service suite the to out as as on So to POOLXXX go definitely software. at water into robust more upcoming discussion Day. that build We're It's our Investor the continuing some our test well of going service.

Unknown Analyst

what gears, an follow-up, of kind in as construction terms us kind versus then you and And switching give commentary there of remodel? updated a it. seeing new backlogs you're Got of could on

Peter Arvan

Sure.

our Now just the keep part smallest that's business. in that mind of

weeks last is beginning the cautious. spoken very show to the the Mike, I the group guess, and their is, right? of season, year hundreds year. So have I several the describe always of optimistic, over I large, sentiment beginning way since is but would of the the by So customers

So I didn't that it's doom meet and anybody said gloom.

getting stronger your are think I stronger. dealers

until at are of feeling new it the and a some anything a optimistic structural weaker that to renovation But economy pool improves. believes I and and to for going in than think drive lending others. demand cautious. they're dealer base anybody changes if the resurgence think the affordable I don't worse in as monetary the there's but remodel, construction new I access policy huge dealers look that is cohort pool

Operator

comes Stifel. from question from next The Andrew Carter

W. Andrew Carter

of if, Or of say your up, you kind recognizing value, conclusion definitive ask seeing an higher replacing been in Anything any of going are trade you to of done speed that of completely deferrals? contemplating the of story could a year lower pumps Also within value that there's kind mix, I in was ongoing to wanted can't as that's any XXXX? the this elevated guidance, equipment analogs kind kind kind of saying level with guidance? with go variable risk and of backwards that's deferrals backwards. headwind a you're

Peter Arvan

cautious. was I'm your let I year." question. are nothing still I I If than think come expect it right. think I "Oh, not, got more people try answer part, I On back, So deferrals, I first cautious I didn't and mean, me the appropriately really would this I year tell don't answer last you, to new. people say,

really the to suppliers, change the you on anything of don't a to a is the spend perspective. also very partners talking spend desirability I I lot our dealers. from imagine, manufacturers, our So who And also maintenance customers still to and lot And time, to can products, of technology of talking expect new as a deferred time important.

talk without any you very are are being few pools pools If technology. to that built building the dealers today,

I Do some several opting more going was it's automation, that's others. compared year? I sometimes years to No. for is think to But this significantly what look than in jump Almost general ago, everybody level materially of if it better.

look of or pieces for XX Andrew, this to a if are continue in desirable I But going of don't sold the higher gain -- huge were to at products wouldn't more look equipment very think still that step they'll I say I I and those end. pieces -- a change that that be function sold equipment to the are XXX year, will percentage share.

I think gain share. that slowly will to continue

W. Andrew Carter

swing of how much then a kind quarter-to-date, wraparound can wrapped of give question, of final I March trends, kind you my the but dictates just reminder question, versus fourth the weather really this Is kind call March out of year benefits April? versus kind in weather was year you any in quarter? XQ? last determined any there -- would final of And -- mean, weather. And Okay. you

Melanie M. Hart

Yes.

So change year. significant so fourth a the favorable, weather over overall not for last was fairly quarter

The last first March in quarter the definitely year. is determined weather saw by as we

So certainly, we'll look within for fall range that to quarter. see how the -- the for how we the

Peter Arvan

a June. April, Obviously, it for January, sequentially us and more March is month May through much important grows than and

-- it So in March. March it fantastic would choice March I if right? January, weather, having or had be take weather great in March was I'd Because great great had of weather a getting in --

Operator

from Wells from question Fargo. The next comes Reid Sam

Richard Reid

This is question. actually a follow-up earlier an to

helpful XX% kind You is I to annual top the believe it anticipating. revenues total to around QX XX% of year. some guys full gave what line around you're of contribution color was

first, year-over-year little in flow-through The why is So would it because correct asked a pullback the a just think think reason detail. talk meaningful sure And more to through pretty way on I I I in want bit make the about we the EPS. imply that's to that? P&L then can

Melanie M. Hart

Yes.

a -- look is look So the our if of consistent. revenue historically, relative fairly of within kind range contribution you at first contribution when see kind quarter, you you'll

probably kind I towards the lean of XXXX from a year. So because of there the was later exclude just would that portion

talked being we've that, for margins with less year. than quarter so first about And last

will overall the EPS quarter. an the ultimate that for So on have impact

Richard Reid

this then And maybe ties your and back you. follow-up, into Got results. one QX more

So was to a the I specifically range, to the consider low X% ultimately mid- to moderate understand especially the that tailwind? guide. of printed got what transpired want versus bridge end down what perhaps down single-digit maybe high that want you intra-quarter weather I And of kind that when of you to you sort

Melanie M. Hart

Yes.

than on their look the it you less the you nature negative quarter. contribution it fourth when a seasonal bit to slightly and inflation in side on the when third the of overall, was quarter, in of at higher quarter the little Horizon it the of a the So kind components fourth relatively consistent had quarter business, look impact because with at third did

Operator

Loop comes The question Capital. Garik from from Shmois next

Garik Shmois

was detail investments just lumpiness? if we any with bit the should over Or the modeling you in for normal year more of could little go increases SG&A cadence wondering seasonality? a this the expect I follow

Melanie M. Hart

Yes.

percentage So as as of we compensation, it the to performance operating the component a relates income. that record

seasonality. that follow So overall our will normal

center good that bulk a would with As it season. will the see of the new to amount investments, relates [indiscernible] happen sales preseason happening the you remaining really

generally. in first or on quarter opening we new to the these So try typically centers focus sales fourth the either

continuing And relates add as technology are it to investments, we the to resources.

rest the ramp will the see first and the of you'll investments some year. quarter up through in then So that

Garik Shmois

you is, question for in XXXX. actually like to little bit markets the I year. Follow-up It performed seasonal it. looks versus expectations speak wonder just if Got could a better last year-round year-round

Just curious expecting case you're the be if well. as that to

Peter Arvan

Yes.

have think to got deeper at had look quarter go I year-round. I you a think than very year Florida in you XXXX. you just -- -- to like seasonal specific Garik, and really and strong markets, so

out. the to are year, more in Florida in very comps the beginning of be tough So even and going the then we'll

issue I the going the year, early But look be stable. out fairly California, new environment, big much general demand I look this changing was for year. at see a we to economic from given a improvement the construction perspective, there to if So California's there. saw what in weather compared don't curve don't is I

I be at they'll weather Arizona, we'll If probably things and Seasonal I look think Texas this included, stable. year. do fairly all considered markets, okay

bigger they had a think correction I that early still but it's tell. sooner, very to

Operator

question The Ahlersmeyer Bank. next comes Joe Deutsche from from

Joseph Ahlersmeyer

there like over maybe it keep is I quick about on Is be right? down a with sales. I'll XQ some it, numbers down I'm something want with XQ to Or wrong to the here? on just getting very that XX% math X% here. hearing since to little something around we're I'm what clear my

Melanie M. Hart

me. the seems was with 'XX high seem, say, in worst to that Yes, even high bit the little end. a would weather March, -- That bit a little on

range. have if So know quite broader I that don't

Joseph Ahlersmeyer

is it year-over-year? doubles midpoint, the something high down to low like at maybe But Okay. single

Melanie M. Hart

Yes.

And end a once your probably what midpoint more March towards of think looks again, know like to of be March. range I upon depending expectation. the we'll kind weather high reasonable get in to the we would

Peter Arvan

much that It's if size relative I overall at at compared environment the But March is of seen on given minus a just Joe, I -- your demand it's weather, think of compared the look XX January, like still end. and open. the season say just so you to to very question to -- the when is uncertainty high solid. the does we've think the that hard

know don't anything. I would that overcorrect I on So

Joseph Ahlersmeyer

just quarter of lapping, I I at to it. -- the looking just sure I weather think the first make in wasn't I off. because Got with far expectations Okay. growth want that

margin year The around the other clarity was have I comment. full question

to same XX%. is than saying say near or said points so? near basis XX%? that approximately Or way another Is maybe as just less the You XX within

Melanie M. Hart

Certainly, within basis XX points. approximately

Operator

our like conference and concludes to This session. CEO, over closing President Peter would question-and-answer the I Arvan, turn for back to remarks.

Peter Arvan

today. We will Yes. quarter for call, look will forward our results. on joining our Thank XX, you release to be first which XXXX all next when we April us

where will Investor to our and into XX, on dive long-term strategies our we initiatives. financial hosting look growth March We deeper also Day forward

for announced today. a have Thanks, this great and details Additional event day. will be later

Operator

Thank The presentation. you today's conference now has attending for concluded.

may now disconnect. You

Pool (POOL) 22 Feb 242023 Q4 Earnings call transcript