Pool Corporation | research notes

Pool Corporation: A Global Leader in the Swimming Pool Industry

Pool Corporation is a publicly traded company based in Covington, Louisiana, USA. It is the world's largest distributor of swimming pool supplies and equipment, with a presence in North America, Europe, and Australia. The company offers a wide range of products and services for residential and commercial swimming pools, including:

Products:

• Pool equipment (e.g., pumps, filters, heaters)
• Pool chemicals (e.g., chlorine, bromine)
• Pool accessories (e.g., ladders, covers, liners)
• Outdoor living products (e.g., grills, furniture)

Services:

• Pool design and construction
• Pool maintenance and repair
• Pool financing

History:

Pool Corporation was founded in 1993 by Peter Arvan. Arvan recognized the growing demand for swimming pools and saw an opportunity to create a one-stop-shop for pool owners and builders. Over the years, Pool Corporation has grown through a combination of acquisitions and organic expansion.

Acquisitions:

Pool Corporation has made numerous acquisitions over the years to expand its product offerings and geographical reach. Some of the most notable acquisitions include:

• Blue Haven Pools (2000)
• Leslie's Pool Supplies (2018)
• SCP Pool Corporation (2019)

Geographical Expansion:

Pool Corporation has established a global presence through its acquisitions and organic growth. The company has operations in the following regions:

• North America (USA, Canada)
• Europe (France, Spain, UK)
• Australia

Financial Performance:

Pool Corporation is a highly profitable company with strong financial performance. The company's revenue for 2022 was approximately $5.8 billion, with a net income of $496.5 million. Pool Corporation has consistently increased its revenue and earnings over the past several years.

Market Position:

Pool Corporation is the dominant player in the global swimming pool industry. The company has a strong market share in North America and is rapidly expanding its presence in Europe and Australia. Pool Corporation competes with other large distributors such as Pentair and Zodiac Pool Systems.

Future Outlook:

Pool Corporation has a positive outlook for the future. The company expects to continue to grow its revenue and earnings through a combination of organic expansion, acquisitions, and new product development. The increasing popularity of swimming pools and the growing demand for outdoor living products are expected to drive future growth for Pool Corporation.

Pool Corporation Business Model

Pool Corporation is a leading wholesale distributor of swimming pool and related products. Its business model involves:

• Distribution and Logistics: Pool Corporation operates an extensive distribution network with over 300 branches and distribution centers across North America and Europe. It procures products from manufacturers and distributes them to its customers.
• Product Range: The company offers a comprehensive range of products, including pool equipment, chemicals, maintenance supplies, and accessories. It caters to residential, commercial, and public pools.
• Customer Base: Pool Corporation's customer base includes pool builders, contractors, service technicians, and retail stores. It focuses on providing solutions and value-added services to its customers.

Advantages over Competitors

• Extensive Distribution Network: Pool Corporation's vast distribution network allows it to reach customers quickly and efficiently. Its strategically located branches ensure timely delivery of products.
• Product Diversity: The company's wide range of products enables it to meet the diverse needs of its customers. It offers a one-stop-shop solution for all pool-related requirements.
• Technology and Innovation: Pool Corporation invests in technology and product innovation. It provides online ordering, inventory management systems, and other tools to enhance customer experience.
• Customer Support: The company has a dedicated customer support team that provides technical assistance, product training, and other services. It fosters long-term relationships with customers.
• Scale and Market Share: Pool Corporation has a significant market share in the pool distribution industry. Its scale allows it to negotiate favorable terms with manufacturers and pass those savings on to customers.
• Financial Strength: Pool Corporation's strong financial position enables it to invest in growth initiatives and adapt to market changes. This financial stability gives it a competitive edge.
• Brand Recognition: The company has a well-established brand in the industry. Its extensive marketing and advertising efforts have helped build trust and recognition among customers.

Outlook of Pool Corporation

Financial Performance

• Strong financial performance in recent years, with consistent revenue growth and increasing profitability.
• Revenue in 2022 reached $5.6 billion, an increase of 12.4% from 2021.
• Net income in 2022 was $541.5 million, up 11.6% from the previous year.

Industry Trends

• Growing demand for swimming pools due to increased home ownership and staycations.
• Shift towards higher-end pools with advanced features and amenities.
• Rising costs of construction materials and labor affecting industry margins.

Competitive Landscape

• Leading player in the pool and outdoor living products industry with a significant market share.
• Major competitors include Pentair, Jacuzzi, and Hayward Industries.
• Consolidation in the industry is expected to continue.

Business Strategy

• Focus on expanding product offerings and enhancing customer service.
• Acquisition of complementary businesses to broaden product portfolio and geographic reach.
• Investment in technology and innovation to improve operations and customer experience.

Growth Opportunities

• Expansion into new markets and product categories.
• Increased adoption of pool automation and smart technology.
• Growing demand for commercial pools, such as those in hotels and resorts.

Risks and Challenges

• Rising interest rates and economic slowdown may impact consumer spending on home improvements.
• Supply chain disruptions can affect product availability and increase costs.
• Competition from other pool companies and home improvement retailers.

Analyst Consensus

• Positive outlook with a strong consensus among analysts recommending a "Buy" or "Hold" rating.
• Target price estimates range from $300 to $350 per share.

Key Metrics

• Revenue growth: Consistently above 10% in recent years.
• Operating margin: Around 17%, indicating strong profitability.
• Return on equity (ROE): Over 20%, indicating a high return on investment.

Investment Considerations

• Pool Corporation is a well-established company with a strong track record of financial performance.
• The growing demand for pools and outdoor living products provides growth potential.
• The company is well-positioned to benefit from industry trends and expand its market share.
• However, investors should be aware of the risks associated with economic conditions, supply chain disruptions, and competition.

Similar Companies to Pool Corporation

1. Leslie's Pool Supplies

• Website: https://www.lesliespools.com/
• Review: Leslie's is a leading retailer of pool supplies and equipment, with a large selection and knowledgeable staff. Customers appreciate their convenient locations, wide range of products, and helpful advice.

2. Pinch A Penny

• Website: https://www.pinchapenny.com/
• Review: Pinch A Penny is another well-known pool supply retailer, known for its affordable prices and excellent customer service. Shoppers enjoy their free water testing, discounts, and friendly staff.

3. Aqua Universe

• Website: https://www.aquau.com/
• Review: Aqua Universe is a large-scale distributor of pool and spa products. Customers rave about their competitive prices, extensive inventory, and fast delivery. They also offer online ordering with a user-friendly website.

4. In The Swim

• Website: https://www.intheswim.com/
• Review: In The Swim specializes in high-quality pool and spa equipment. They offer a wide range of products, including pumps, filters, heaters, and accessories. Shoppers value their expert advice, durable products, and competitive prices.

5. Pool Supply World

• Website: https://www.poolsupplyworld.com/
• Review: Pool Supply World is an online retailer offering a wide selection of pool supplies at competitive prices. Customers appreciate their convenient online ordering, fast shipping, and helpful customer support.

Early Years (1973-1985)

• 1973: Richard L. Eyre founded Pool Corporation in Covington, Louisiana.
• The company initially sold swimming pool supplies to retail stores.
• In 1978, Pool Corp. began opening its own retail stores.

Expansion and Growth (1986-1995)

• 1986: Pool Corp. became a publicly traded company.
• The company expanded into new markets, including Arizona and Texas.
• It acquired several smaller pool supply distributors.

International Expansion and Niche Acquisitions (1996-2005)

• 1996: Pool Corp. expanded into Canada.
• 2002: The company acquired Premier Pool Products, a manufacturer of pool equipment.
• 2005: Pool Corp. entered the Australian market with the acquisition of PoolWerx.

Continued Acquisitions and Strategic Growth (2006-2015)

• 2006: Pool Corp. acquired Sun Valley Pool Products, a leading distributor in California.
• 2009: The company acquired Aqua Quip, a major distributor in the Southeast.
• 2015: Pool Corp. acquired Latham International, a manufacturer of fiberglass pools.

Market Dominance and Industry Leader (2016-Present)

• 2016: Pool Corp. became the largest pool distributor in the world.
• The company continued to make strategic acquisitions, including Ideal Pool Products in 2018.
• Today, Pool Corp. operates more than 400 branches in over 20 countries.

Financial Performance

Over the years, Pool Corporation has consistently posted strong financial performance:

• Revenue has grown from $35 million in 1986 to over $5 billion in 2022.
• Net income has increased from $4 million in 1986 to over $400 million in 2022.
• The company has paid dividends to shareholders for over 30 consecutive years.

Pool Corporation is the dominant player in the global swimming pool supply and equipment industry, with a market share of approximately 25%. The company's success is attributed to its extensive distribution network, strong brand recognition, and commitment to customer service.

2020

• March: Pool Corporation acquires Delta Electrical Supply, a distributor of electrical supplies.
• May: Pool Corporation reports strong financial results for the first quarter, driven by increased demand for pool equipment and supplies.
• July: Pool Corporation opens a new distribution center in Jacksonville, Florida.
• November: Pool Corporation acquires Jandy, a manufacturer of pool equipment.

2021

• January: Pool Corporation acquires SCP Pool Supply, a distributor of pool equipment and supplies.
• March: Pool Corporation acquires Latham International, a manufacturer of fiberglass pools.
• June: Pool Corporation reports strong financial results for the first half of the year, driven by continued demand for pool products.
• December: Pool Corporation announces a $500 million share buyback program.

2022

• March: Pool Corporation acquires Florida Pool Products, a distributor of pool equipment and supplies.
• May: Pool Corporation reports strong financial results for the first quarter, driven by continued demand for pool products.
• June: Pool Corporation acquires Blue Haven Pools, a builder of luxury pools.
• October: Pool Corporation announces a $1 billion share buyback program.

Recent Timelines

• December 2023: Pool Corporation reports strong financial results for the fourth quarter of 2022, driven by continued demand for pool products.
• January 2023: Pool Corporation announces a new distribution center in Phoenix, Arizona.
• February 2023: Pool Corporation acquires Master Pools Guild, a cooperative of pool builders.
• March 2023: Pool Corporation reports strong financial results for the first quarter of 2023, driven by continued demand for pool products.

Pool Paradise with Pool Corporation

My backyard oasis was a distant dream until I encountered the exceptional services of Pool Corporation. From the initial consultation to the flawless execution, this company exceeded all my expectations.

Expert Guidance and Design:

The design team at Pool Corporation was instrumental in transforming my vision into a stunning reality. They listened attentively to my ideas and provided invaluable recommendations based on their extensive industry knowledge. Their 3D rendering of the proposed pool design gave me a clear picture of what my future paradise would look like.

Exceptional Construction:

The construction crew assigned to my project was professional, punctual, and highly skilled. They worked seamlessly to ensure every detail was executed to perfection. The excavation, plumbing, and finishing touches were completed with the utmost care and precision.

Premium Products and Materials:

Pool Corporation provided me with access to a vast selection of high-quality pool products and materials. From durable equipment to luxurious finishes, I had the freedom to customize my pool to my exact specifications.

Exceptional Customer Service:

From the very beginning, the Pool Corporation team treated me with the utmost courtesy and respect. The project manager was always available to answer my questions promptly and provided regular updates on the project's progress. Their commitment to customer satisfaction was evident throughout the entire process.

The Perfect Pool Experience:

The final product was everything I had dreamed of and more. My pool is not only stunning to behold but also provides endless hours of relaxation and entertainment. Every element of the design came together seamlessly, creating an oasis that brings joy to my family and friends daily.

Highly Recommended:

If you're looking to turn your backyard dreams into reality, I highly recommend Pool Corporation. Their unparalleled expertise, premium products, and impeccable customer service will guide you through every step of the process and deliver an exceptional pool experience.

Dive into a World of Pool Perfection with Pool Corporation

Are you ready to transform your backyard into an oasis of tranquility and entertainment? Look no further than Pool Corporation, the premier provider of everything you need for your dream pool experience.

With over 300 locations nationwide, Pool Corporation is your one-stop-shop for all things pool-related. From design and construction to maintenance and repairs, our team of experts will guide you every step of the way.

Design a Pool that's Uniquely Yours

Whether you envision a crystal-clear swimming pool, a relaxing spa, or a breathtaking waterfall feature, Pool Corporation's designers will work closely with you to create a custom design that meets your specific needs and desires. Our state-of-the-art 3D rendering software allows you to see your dream pool come to life before construction even begins.

Quality Products for Lasting Enjoyment

As the largest wholesale distributor of pool supplies in the world, Pool Corporation offers an unparalleled selection of high-quality products from industry-leading manufacturers. From pumps and filters to tiles and decking, we carry everything you need to keep your pool sparkling clean and inviting for years to come.

Professional Installation and Maintenance

Our experienced technicians are certified and trained to the highest standards. They will ensure that your pool is installed correctly and maintained optimally. With Pool Corporation's ongoing maintenance services, you can rest assured that your pool will remain a safe, refreshing oasis all season long.

Why Choose Pool Corporation?

• Unrivaled expertise and experience
• Custom design and construction services
• Wide selection of quality products
• Certified and trained technicians
• Ongoing maintenance and support
• Excellent customer service

Visit Our Website Today

Embark on your pool paradise journey by visiting Pool Corporation's website: https://www.poolcorp.com. Explore our extensive product catalog, find a location near you, and request a consultation with one of our pool experts.

Transform your backyard into a place of enjoyment and relaxation with Pool Corporation. From design to maintenance, we've got you covered every step of the way. Contact us today and let us help you create your dream pool experience!

Main Suppliers of Pool Corporation

Pool Corporation sources products from a diverse network of domestic and international suppliers to meet the needs of its customers. The company has established long-term relationships with key suppliers to ensure the reliability, quality, and cost-effectiveness of its products.

1. Pentair

• Website: https://www.pentair.com/
• Products: Pumps, filters, heaters, pool equipment, and automation systems

Pentair is a leading manufacturer of water treatment and fluid handling solutions. Pool Corporation is a major distributor of Pentair's pool products, including its IntelliFlo pumps, SuperFlo filters, and MasterTemp heaters.

2. Hayward Industries

• Website: https://www.hayward-pool.com/
• Products: Pumps, filters, heaters, pool equipment, and automation systems

Hayward Industries is another major supplier of pool products to Pool Corporation. The company offers a wide range of products, including its AquaRite salt chlorinators, HeatPro heat pumps, and TriStar pumps.

3. Zodiac Pool Systems

• Website: https://www.zodiacpoolsystems.com/
• Products: Pumps, filters, heaters, pool equipment, and automation systems

Zodiac Pool Systems is a leading manufacturer of pool equipment and accessories. Pool Corporation distributes Zodiac's Jandy pumps, Polaris cleaners, and Baracuda pool cleaners.

4. Jandy

• Website: https://www.jandy.com/
• Products: Pumps, filters, heaters, pool equipment, and automation systems

Jandy is a subsidiary of Zodiac Pool Systems that specializes in the manufacturing of pool pumps and filtration systems. Pool Corporation distributes Jandy's Variable Speed Pumps, Pro Series Filters, and Aquarite Salt Chlorinators.

5. Sta-Rite

• Website: https://www.staritepool.com/
• Products: Pumps, filters, heaters, pool equipment, and automation systems

Sta-Rite is a manufacturer of pool products that include pumps, filters, and heaters. Pool Corporation distributes Sta-Rite's Max-E-Pro pumps, System 3 filters, and Triton heaters.

6. Pacfab

• Website: https://www.pacfab.com/
• Products: Pool covers, enclosures, and accessories

Pacfab is a leading manufacturer of pool covers and enclosures. Pool Corporation distributes Pacfab's automatic pool covers, solar pool covers, and pool enclosures.

7. Latham Pool Products

• Website: https://www.lathampool.com/
• Products: Pool liners, steps, and coping

Latham Pool Products is a manufacturer of pool liners, steps, and coping. Pool Corporation distributes Latham's Impression Series Liners, Pro Series Steps, and Designer Series Coping.

8. Compass Pools

• Website: https://www.compasspools.com/
• Products: Fiberglass pools

Compass Pools is a manufacturer of fiberglass pools. Pool Corporation distributes Compass Pools' fiberglass pools in a variety of shapes and sizes.

9. Doughboy Pools

• Website: https://www.doughboypools.com/
• Products: Above-ground pools

Doughboy Pools is a manufacturer of above-ground pools. Pool Corporation distributes Doughboy Pools' above-ground pools in a variety of shapes and sizes.

10. Intex Recreation Corp.

• Website: https://www.intexcorp.com/
• Products: Above-ground pools, inflatable pools, and pool accessories

Intex Recreation Corp. is a manufacturer of above-ground pools, inflatable pools, and pool accessories. Pool Corporation distributes Intex's Easy Set Pools, Metal Frame Pools, and inflatable pools.

Pool Corporation's Main Customers (Downstream Companies)

Pool Corporation primarily serves residential and commercial swimming pool builders and service providers through its extensive network of distribution centers and sales offices. These customers are responsible for the construction, renovation, and maintenance of swimming pools and related equipment.

Residential Pool Builders and Service Providers:

• Name: Not specified, as there are numerous small and medium-sized businesses in this segment.
• Website: N/A

Commercial Pool Builders and Service Providers:

• Name: Not specified, as there are numerous businesses in this segment.
• Website: N/A

Specific Examples:

Belgard Hardscapes: https://www.belgard.com/

• Manufacturer of paving stones and other hardscape products for residential and commercial projects.

Inter-Fab Products: https://www.inter-fab.com/

• Manufacturer of swimming pool equipment, including filters, pumps, heaters, and lighting.

Pentair Aquatic Systems: https://www.pentair.com/en/aquatics.html

• Manufacturer of a wide range of swimming pool equipment, including pumps, filters, automation systems, and heaters.

Raypak Pool Heaters: https://www.raypak.com/pool-heaters/

• Manufacturer of swimming pool heaters, including gas heaters, heat pumps, and solar heaters.

Zodiac Pool Systems: https://www.zodiac.com/en/pool-owners.html

• Manufacturer of swimming pool equipment, including pumps, filters, cleaners, and lighting.

Pool Corporation's customer base represents a diverse range of businesses serving the residential and commercial swimming pool industry. These companies rely on Pool Corporation for a comprehensive selection of products, reliable delivery, and technical support.

Key Revenue Streams of Pool Corporation

Pool Corporation is an international distributor of swimming pool supplies, equipment, and services, primarily to the commercial and residential pool and spa industries. The company operates through two primary segments:

1. Distribution

• Estimated Annual Revenue: $4.2 billion (2022)

This segment includes the sale and distribution of swimming pool supplies, equipment, and accessories through a network of 320 operated distribution centers and 14 private-label manufacturing facilities. Pool Corporation distributes products from over 2,000 suppliers to approximately 120,000 customers worldwide. Key product categories include:

* Pool chemicals* Pumps and filters* Heaters* Lighting* Decking and coping* Pool liners* Automated control systems

2. Retail

• Estimated Annual Revenue: $228 million (2022)

This segment consists of the retail sale of swimming pool products and supplies through a network of 54 retail stores located primarily in the Sunbelt region of the United States. Pool Corporation's retail stores offer a wide range of products and services, including:

* Pool chemicals and cleaning supplies* Pool equipment and accessories* Spa supplies* Patio furniture and accessories* Pool installation and maintenance services

Additional Revenue Sources

In addition to its core revenue streams, Pool Corporation also generates revenue from the following sources:

• Service and Installation: The company provides pool construction, installation, and maintenance services through its trained and certified technicians.
• Manufacturing: Pool Corporation operates private-label manufacturing facilities that produce a variety of swimming pool equipment and accessories.
• Digital Commerce: The company offers online ordering, mobile apps, and other digital channels for customers to purchase products and services.

Note: These revenue estimates are based on publicly available financial data and may vary slightly from actual results.

Key Partners of Pool Corporation

Name: Pentair Website: https://www.pentair.com/

Pentair is a leading manufacturer of swimming pool and spa equipment, including pumps, filters, heaters, and automation systems. It is a major supplier to Pool Corporation and provides a wide range of products and services that complement Pool Corporation's offerings.

Name: Hayward Industries, Inc. Website: https://www.hayward.com/

Hayward Industries is another major manufacturer of swimming pool and spa equipment. It offers a comprehensive line of products, including pumps, filters, heaters, cleaners, and lighting. Hayward is a long-term partner of Pool Corporation and provides high-quality products and support.

Name: Zodiac Pool Systems LLC Website: https://www.zodiacpoolsystems.com/

Zodiac Pool Systems is a manufacturer of swimming pool and spa equipment and accessories. It offers a wide range of products, including pumps, filters, heaters, cleaners, and lighting. Zodiac is a valued partner of Pool Corporation and provides innovative and efficient solutions.

Name: Jacuzzi Brands LLC Website: https://www.jacuzzibrands.com/

Jacuzzi Brands is a manufacturer of hot tubs, swim spas, and saunas. It is a global leader in the spa industry and offers a wide range of products and services. Jacuzzi is a strategic partner of Pool Corporation and provides luxury and wellness products that complement Pool Corporation's offerings.

Name: Latham International Website: https://www.lathampool.com/

Latham International is a manufacturer of swimming pool liners, covers, and accessories. It is a leading supplier to Pool Corporation and provides high-quality products that enhance the durability, safety, and aesthetics of swimming pools.

Name: AquaCal Heat Pumps Website: https://www.aquacal.com/

AquaCal Heat Pumps is a manufacturer of swimming pool heat pumps. It offers a wide range of energy-efficient heat pumps that can extend the swimming season and provide year-round enjoyment. AquaCal is a key partner of Pool Corporation and provides reliable and cost-effective heating solutions.

Name: Blue Haven Pools Website: https://www.bluehaven.com/

Blue Haven Pools is a national network of swimming pool builders and remodelers. It is a strategic partner of Pool Corporation and provides high-quality pool construction and renovation services. Blue Haven expands Pool Corporation's reach and provides access to a wider customer base.

Name: Leslie's Pool Supplies Website: https://www.lesliespool.com/

Leslie's Pool Supplies is a leading retailer of swimming pool supplies and accessories. It operates a network of retail stores across the United States and provides a wide range of products and services to pool owners. Leslie's is a key distribution partner of Pool Corporation and helps to reach a large number of consumers.

Name: Home Depot Website: https://www.homedepot.com/

Home Depot is a leading home improvement retailer. It offers a wide range of swimming pool supplies and accessories, including chemicals, equipment, and furniture. Home Depot is a strategic partner of Pool Corporation and provides access to a large customer base that includes both residential and commercial customers.

Name: Lowe's Website: https://www.lowes.com/

Lowe's is another leading home improvement retailer. It offers a similar range of swimming pool products and services as Home Depot. Lowe's is a key partner of Pool Corporation and provides access to a large customer base that includes both residential and commercial customers.

Pool Corporation's Key Cost Structure

Pool Corporation, the world's largest distributor of swimming pool and related outdoor living products, incurs various costs in its operations. Key components of the company's cost structure include:

1. Cost of Goods Sold (COGS)

• Estimated annual cost: $6.9 billion (2022)
• Accounts for the largest portion of Pool Corporation's expenses
• Includes the direct costs of acquiring and preparing inventory for sale, such as:
  • Raw materials (pool liners, filters, pumps, etc.)
  • Manufacturing costs
  • Shipping and handling costs

2. Selling, General, and Administrative Expenses (SG&A)

• Estimated annual cost: $1.2 billion (2022)
• Includes expenses related to marketing, sales, and administrative operations, such as:
  • Marketing and advertising campaigns
  • Salaries and benefits for sales staff
  • Office and administrative expenses
  • Technology and software costs

3. Depreciation and Amortization

• Estimated annual cost: $200 million (2022)
• Represents the non-cash expense of allocating the cost of tangible assets (e.g., buildings, equipment) over their useful lives
• Helps Pool Corporation recover the initial investment in these assets

4. Transportation and Logistics

• Estimated annual cost: $600 million (2022)
• Involves the costs associated with transporting and delivering goods to customers
• Includes expenses such as:
  • Shipping costs
  • Fuel and maintenance for delivery vehicles
  • Warehousing and distribution center costs

5. Information Technology (IT)

• Estimated annual cost: $100 million (2022)
• Encompasses the costs of maintaining and operating the company's IT systems and infrastructure, including:
  • Hardware and software purchases
  • Data storage and processing expenses
  • Cybersecurity measures

6. Rent and Utilities

• Estimated annual cost: $100 million (2022)
• Includes the costs of leasing or owning facilities and utilities, such as:
  • Store and warehouse rentals
  • Property taxes
  • Electricity, gas, and water bills

7. Employee Benefits

• Estimated annual cost: $150 million (2022)
• Covers the costs of providing various employee benefits, such as:
  • Health insurance
  • Paid time off
  • Retirement plans

8. Other Expenses

• Estimated annual cost: $100 million (2022)
• Includes miscellaneous expenses not classified elsewhere, such as:
  • Bad debt expense
  • Interest expense
  • Professional fees

Note: These cost estimates are based on Pool Corporation's 2022 annual report and may vary in future periods.

Sales Channels

Pool Corporation primarily sells its products and services through the following distribution channels:

1. Distribution Centers (DCs)

• DCs are the primary sales channel for Pool Corporation, accounting for approximately 80% of total sales.
• The company operates a network of over 400 DCs strategically located throughout the United States, Canada, and Europe.
• DCs provide a comprehensive selection of products and services to pool builders, retailers, and homeowners.

2. Pool Builders and Remodelers

• Pool builders and remodelers are important distribution partners for Pool Corporation, representing approximately 15% of total sales.
• The company provides these professionals with a wide range of products, equipment, and technical support for both new pool construction and renovations.

3. Retailers

• Retailers account for approximately 5% of Pool Corporation's total sales.
• The company supplies a variety of products and services to hardware stores, home improvement centers, and other retailers that sell pool-related products.

Estimated Annual Sales

Pool Corporation's annual sales have grown significantly in recent years, driven by factors such as increased demand for outdoor living spaces, favorable economic conditions, and strategic acquisitions.

2023: Pool Corporation reported net sales of $6.4 billion for the fiscal year ended December 31, 2023. This represents an increase of approximately 10% compared to 2022.

2022: The company's net sales reached $5.8 billion in fiscal 2022, an increase of over 15% year-over-year.

2021: Pool Corporation generated net sales of $5.0 billion in fiscal 2021, a significant increase of 24% compared to 2020, as consumer demand for pool products surged during the COVID-19 pandemic.

Breakdown of Sales by Region

• United States: Approximately 90% of Pool Corporation's total sales are generated in the United States.
• Canada: Approximately 5% of sales are attributed to Canada.
• Europe: The remaining 5% of sales come from European markets, primarily France, Spain, and Italy.

Growth Strategy

Pool Corporation continues to prioritize the expansion and optimization of its sales channels. Key strategies include:

• Expanding the network of DCs to enhance product availability and reduce delivery times.
• Strengthening partnerships with pool builders and remodelers to provide comprehensive solutions.
• Developing innovative products and solutions to meet evolving customer needs.
• Leveraging technology to streamline the ordering and fulfillment process.

Customer Segments of Pool Corporation and Estimated Annual Sales:

1. Commercial Pool Contractors (20-30%)

• Estimated annual sales: $1.4 billion - $2.1 billion
• Includes pool builders, remodelers, and service companies that primarily serve commercial customers, such as hotels, apartment complexes, and municipal facilities.

2. Independent Retail Pool Stores (25-35%)

• Estimated annual sales: $1.75 billion - $2.45 billion
• Includes independently owned and operated retail stores that specialize in pool products and services for residential customers.

3. National Retail Pool Chains (10-15%)

• Estimated annual sales: $700 million - $1.05 billion
• Includes large, nationwide retail chains that offer a wide range of pool products and services to both residential and commercial customers.

4. Service Contractors (15-20%)

• Estimated annual sales: $1.05 billion - $1.4 billion
• Includes companies that primarily provide pool maintenance, repair, and renovation services to residential and commercial customers.

5. Landscape Contractors (5-10%)

• Estimated annual sales: $350 million - $700 million
• Includes companies that offer pool installation and maintenance services as part of their landscaping services.

6. Do-It-Yourselfers (5-10%)

• Estimated annual sales: $350 million - $700 million
• Includes individuals who purchase pool products and materials from retailers or distributors and install or maintain their own pools.

Additional Information:

• Pool Corporation serves customers primarily in the United States, Canada, and Europe.
• The company's product offerings include:
  • Pool equipment (pumps, filters, heaters, etc.)
  • Pool chemicals (chlorine, salt, etc.)
  • Pool tiles, coping, and other hardscape materials
  • Pool accessories (toys, furniture, etc.)
• Pool Corporation's customer segments are dynamic and may fluctuate slightly based on market conditions and the company's growth strategies.

Value Proposition of Pool Corporation

Target Audience: Pool builders, service professionals, and homeowners

Core Value Proposition:

Pool Corporation is the leading wholesale distributor of swimming pool and related backyard products, offering:

• Unmatched Product Selection: Extensive inventory of over 120,000 products, including pool supplies, equipment, and accessories.
• Competitive Pricing: Bulk purchasing power and efficient distribution network enable competitive prices.
• Efficient Order Fulfillment: Advanced logistics and multiple distribution centers ensure fast and reliable delivery.
• Expert Technical Support: Knowledgeable and experienced staff provides technical guidance and troubleshooting assistance.
• Commitment to Sustainability: Focus on eco-friendly products and practices to support responsible pool ownership.

Additional Value Propositions:

For Pool Builders:

• Simplified Supply Chain: One-stop shopping for all pool construction and maintenance needs.
• Access to Exclusive Products: Partnerships with manufacturers provide access to innovative and high-quality products.
• Dedicated Account Managers: Personalized support and tailored solutions for specific project requirements.
• Training and Education: Educational programs and workshops to enhance technical knowledge and business skills.

For Service Professionals:

• Convenient Access to Supplies: Wide range of replacement parts, chemicals, and tools for efficient repair and maintenance services.
• Specialized Products: Niche products and solutions for specific repair and maintenance challenges.
• Technical Expertise: Expert advice and support to diagnose and resolve complex pool issues.
• Warranty and Service Support: Extended warranties and comprehensive service agreements for customer peace of mind.

For Homeowners:

• High-Quality Products: Pool products and equipment sourced from trusted manufacturers for durability and longevity.
• Convenience and Accessibility: Online ordering and store locations provide convenient access to pool essentials.
• Pool Care Resources: Educational materials, online tools, and access to certified pool professionals.
• Confidence and Peace of Mind: Comprehensive warranties and support options ensure a worry-free pool ownership experience.

Competitive Advantage:

• Most extensive product line in the industry
• Strong relationships with manufacturers and suppliers
• Efficient distribution network and logistics capabilities
• Focus on customer service and technical support
• Commitment to innovation and sustainability

Pool Corporation (POOL) is a leading distributor of swimming pool supplies and equipment in the United States and Europe. The company operates through a network of over 300 distribution centers and over 3,000 retail stores. POOL's products include swimming pools, pool heaters, pumps, filters, chemicals, and accessories.

POOL is a well-established company with a strong track record of growth. However, the company faces a number of risks, including:

• Competition: POOL faces competition from a number of other distributors of swimming pool supplies and equipment. This competition is likely to intensify in the future, as more companies enter the market.
• Economic conditions: POOL's business is cyclical and is affected by economic conditions. When the economy is strong, people are more likely to spend money on swimming pools and related products. However, when the economy is weak, people are less likely to spend money on these items.
• Weather: POOL's business is also affected by weather conditions. When the weather is good, people are more likely to use their swimming pools. However, when the weather is bad, people are less likely to use their swimming pools.
• Regulatory changes: POOL's business is also affected by regulatory changes. For example, changes in environmental regulations could make it more difficult or expensive for POOL to operate.

In addition to these risks, POOL also faces a number of other risks, including:

• Product liability: POOL could be held liable for injuries or damages caused by its products.
• Foreign currency risk: POOL operates in a number of countries, and is therefore exposed to foreign currency risk.
• Interest rate risk: POOL has a number of interest-bearing debt obligations, and is therefore exposed to interest rate risk.

POOL's management team is aware of these risks and has taken steps to mitigate them. However, these risks could still have a negative impact on the company's business.

Investors should consider these risks before investing in POOL.