Pool Corp. (POOL, Financial) filed Quarterly Report for the period ended 2012-06-30.
Pool Corporation has a market cap of $1.75 billion; its shares were traded at around $37.8 with a P/E ratio of 21.8 and P/S ratio of 1. The dividend yield of Pool Corporation stocks is 1.7%. Pool Corporation had an annual average earning growth of 6.3% over the past 10 years.
Operating expenses were up less than 1% compared to the second quarter of 2011, with higher expenses related to recent acquisitions and new market sales center openings largely offset by a 2% drop in base business operating expenses. Base business operating expenses declined due to a $2.4 million decrease in employee incentive costs, a $1.1 million impact from currency fluctuations, a $0.8 million reduction in bad debt expense and small decreases in other expense categories including delivery costs. These expense decreases were partially offset by a $2.1 million increase in professional fees and marketing expenses and slightly higher other variable costs related to the growth in sales, including higher salary costs due to a 3% increase in average headcount excluding acquisitions.
Net income improved 11% to $64.9 million compared to the second quarter of 2011, while earnings per share increased 13% quarter over quarter to $1.34 per diluted share. The increase in earnings per share included an accretive impact of approximately $0.01 per diluted share from the reduction in our weighted average shares outstanding due to our share repurchase activities during the year and an offsetting impact of approximately $0.01 per diluted share related to unfavorable currency fluctuations.
Net sales for the first half of 2012 increased 10%, with an increase of over 7% in base business sales and close to a 3% increase related to recent acquisitions and new market sales center openings. Our base business sales growth included a 7% increase on both the swimming pool side of the business and the irrigation side of the business. While base business sales grew 9% for our North American swimming pool business, this growth was partially offset by a 1% decline from unfavorable currency fluctuations and the impact of lower base business sales in Europe. In local currencies, net sales in Europe declined 4% compared to the first half of 2011.
Net sales for the first half of 2012 increased 10%, with an increase of over 7% in base business sales and close to a 3% increase related to recent acquisitions and new market sales center openings. Our base business sales growth included a 7% increase on both the swimming pool side of the business and the irrigation side of the business. While base business sales grew 9% for our North American swimming pool business, this growth was partially offset by a 1% decline from unfavorable currency fluctuations and the impact of lower base business sales in Europe. In local currencies, net sales in Europe declined 4% compared to the first half of 2011.
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Pool Corporation has a market cap of $1.75 billion; its shares were traded at around $37.8 with a P/E ratio of 21.8 and P/S ratio of 1. The dividend yield of Pool Corporation stocks is 1.7%. Pool Corporation had an annual average earning growth of 6.3% over the past 10 years.
Highlight of Business Operations:
Second quarter sales and earnings were in line with our expectations. We had much stronger comparative results in both April and May as the season peaked earlier than normal in 2012 due to the unusually mild winter, while June results reflected the shift of sales into the first and early second quarter. Net sales increased 7% compared to the second quarter of 2011. Base business sales were up 5% despite a 1% unfavorable impact from currency fluctuations. Base business sales grew 5% on the swimming pool side of the business and 11% on the irrigation side of the business, with growth attributed to market share gains, higher consumer discretionary expenditures, price inflation and the larger installed base of pools.Operating expenses were up less than 1% compared to the second quarter of 2011, with higher expenses related to recent acquisitions and new market sales center openings largely offset by a 2% drop in base business operating expenses. Base business operating expenses declined due to a $2.4 million decrease in employee incentive costs, a $1.1 million impact from currency fluctuations, a $0.8 million reduction in bad debt expense and small decreases in other expense categories including delivery costs. These expense decreases were partially offset by a $2.1 million increase in professional fees and marketing expenses and slightly higher other variable costs related to the growth in sales, including higher salary costs due to a 3% increase in average headcount excluding acquisitions.
Net income improved 11% to $64.9 million compared to the second quarter of 2011, while earnings per share increased 13% quarter over quarter to $1.34 per diluted share. The increase in earnings per share included an accretive impact of approximately $0.01 per diluted share from the reduction in our weighted average shares outstanding due to our share repurchase activities during the year and an offsetting impact of approximately $0.01 per diluted share related to unfavorable currency fluctuations.
Net sales for the first half of 2012 increased 10%, with an increase of over 7% in base business sales and close to a 3% increase related to recent acquisitions and new market sales center openings. Our base business sales growth included a 7% increase on both the swimming pool side of the business and the irrigation side of the business. While base business sales grew 9% for our North American swimming pool business, this growth was partially offset by a 1% decline from unfavorable currency fluctuations and the impact of lower base business sales in Europe. In local currencies, net sales in Europe declined 4% compared to the first half of 2011.
Net sales for the first half of 2012 increased 10%, with an increase of over 7% in base business sales and close to a 3% increase related to recent acquisitions and new market sales center openings. Our base business sales growth included a 7% increase on both the swimming pool side of the business and the irrigation side of the business. While base business sales grew 9% for our North American swimming pool business, this growth was partially offset by a 1% decline from unfavorable currency fluctuations and the impact of lower base business sales in Europe. In local currencies, net sales in Europe declined 4% compared to the first half of 2011.
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