On this page of StockholderLetter.com we present the latest annual shareholder letter from POOL CORP — ticker symbol POOL. Reading current and past POOL letters to shareholders can bring important insights into the investment thesis.

 •  3/27/2025 Letter Continued (Full PDF)
 •  3/29/2023 POOL Stockholder Letter
 •  3/28/2024 POOL Stockholder Letter
 •  More "Consumer Goods" Category Stockholder Letters
 •  POOL Benford's Law Stock Score = 87

POOL Shareholder/Stockholder Letter Transcript:

2024
ANNUAL REPORT
THE POOLCORP
DIFFERENCE

O UR N ETWORK S AND LOCATIO N S
NORTH AMERICA
EUROPE
2
10
11
3
1
1
1
2
5
9
81
30
4
3
5
2
4
1
9
2
7
7
2
9
10
1
1
3
2
1
5
3
3
59
4
5
4
3
2
7
1
1
2
9
2
3
1
1
1
7
11
6
AUSTRALIA
66
5
1
NET WORK
TOTAL SALES C E NTE R S
SCP   
266
SUPERIOR   
74
HORIZON   
90
NPT   
18
TOTA L
3
1
1
1
1
448
1
D R I V I N G BOLD NEW
I N N O VAT I O N
TA B L E O F
CONTENTS
VISION
S TAT E M E N T
Message to Our Shareholders .................................... 1
To be the best worldwide distributor of outdoor lifestyle products
that include all products relating to swimming pools, irrigation &
other products that enhance the quality of outdoor home life.
Financial Highlights ...................................................... 2
Improving Retail & Service Value Proposition ........ 3
Expanding Our Digital Ecosystem ............................. 4
Pool Corporation 2024 Form 10-K ........................... 5
Shareholder Information,
Company Officers & Directors .... Inside Back Cover
MISSION
S TAT E M E N T
To provide exceptional value to our customers and suppliers,
creating exceptional return for our shareholders while
providing exceptional opportunities for our employees.

MESSAGE TO OUR
SHAREHOLDERS
DEAR FELLOW SHAREHOLDERS,
In 2024, we were pleased to report a fourth consecutive year
of sales exceeding $5 billion. While net sales were 4% lower
than 2023, steady maintenance outperformance mitigated
continued weakness in homeowner discretionary spending,
which impacted new pool construction and remodeling
activities. Our operating income for the year totaled $617
million with an operating margin of 11.6%, and we generated
operating cash flow of $659 million and 152% of net income.
Along with excellent working capital management, our
operating cash flow allowed us to reduce our debt by $103
million and return over $483 million to our shareholders
through dividends and share repurchases.
We continued expanding our industry-leading sales center
network in 2024 by adding 12 locations, bringing our
worldwide total to 448, which is the most far-reaching
wholesale distribution network in the industry. These
additional locations enhance our capacity for future growth,
offering our vendors the broadest market distribution
footprint in the industry and providing our customers with the
most convenient access to the products and expertise they
need. In addition, our Pinch A Penny franchise network grew
by 11 stores, primarily in the strategic Texas market, raising
the network total to 295 stores. We have added distribution
capacity supporting Pinch A Penny franchised stores in
strategic markets and plan to continue adding new franchised
store locations across western U.S. sunbelt markets in the
years ahead.
We made considerable progress on further development of our
digital ecosystem this year as we accelerated our mission to
transform how we and our industry interact. Our POOL360  
WaterTest and POOL360   PoolService tools integrate
e-commerce, software applications and data-driven insights,
and are designed to boost our retail and service customers   
abilities to serve pool owners. Each tool links directly into our
POOL360   B2B platform, unlocking capacity for our builder,
remodeling, service and retail customers and our sales center
network. Further, our new all-inclusive Regal   and E-Z Clor  
Pool Care mobile apps, which are linked to our proprietary
chemical brand products, help improve water chemistry and
clarity and simplify the pool ownership experience. We
believe these investments are important differentiators and
create an increasing competitive advantage that extends
our industry leadership and positions us to gain share over
the long-term. We plan to continue investing in our digital
ecosystem, bringing the full power of Pool Corporation to our
customers    fingertips 24 hours a day, 7 days a week.
   1   
The current conditions in our industry, impacted by higher
inflation and interest rates, have suppressed major remodel
and new pool construction activities. In 2024, approximately
61,000 new in-ground pools were constructed, about half of
the 117,000 in-ground pools that were installed in 2021. Even
with reduced discretionary spending bringing new in-ground
pool units down almost 50% from 2021, our net sales were flat
over the same period, which makes us confident that we have
outperformed the market. Our capacity creation initiatives
also helped us manage through significant cost inflation to
maintain an operating margin in line with our expanded 2020
operating margin. We believe our company   s performance in
2024 reflects the resilience of the maintenance portion of our
industry, the success of our focused initiatives in this key area
and the industry growth opportunities ahead as conditions
return to a more historically consistent cadence. Our results
also demonstrate the powerful combination of a robust
business model coupled with a seasoned, inspired team.
As we look to the future, we are confident about our
organization   s talent, capabilities and teamwork to achieve
our strategic growth and performance goals. When our
industry enters a renewed cycle following this past five-year
period, we stand ready and prepared to meet our customers   
requirements to serve the growing needs of a resilient,
vibrant outdoor living products marketplace. New product
technologies and enhanced features will expand the market
and continue improving the ease and efficiency of enjoying
swimming pools and outdoor living environments in the years
ahead. With the largest sales center network, broadest product
offering, interactive and comprehensive customer platforms
and a culture driven by relentless focus on our customers   
experiences, we believe that Pool Corporation is positioned
to continue its strong financial performance creating superior
returns for our shareholders. We appreciate your ongoing
support and look forward to creating exceptional opportunities
for you, our customers, our vendors, our employees and the
communities we serve for many years ahead.
PETER D. ARVAN
JOHN E. STOKELY
President and
Chief Executive Officer
Chair of the Board of Directors
and Lead Independent Director

FINANCIAL HIGHLIGHTS
C R E AT I N G
WAV E S O F S U C C E S S
NET SALES
DILUTED EARNINGS PER SHARE
(in millions)
17% CAGR 2014-2024
9% CAGR 2014-2024
$6,500
$20
6,180
$6,000
$5,500
5,542
5,296
$5,000
15.97
$16
$4,500
$14
3,937
$4,000
$3,500
$3,000
$2,500
18.70
$18
5,311
2,363
2,571
2,788
2,998
13.35
$12
3,200
11.30
$10
8.97
$8
$2,000
$6
$1,500
$4
$1,000
2.90
3.47
4.51
6.40
5.62
$2
$500
2015
2016
2017
2018
GROSS PROFIT
2019
2020
2021
2022
2023
2015
2024
2016
2017
2018
2019
2020
2021
2022
2023
USES OF CASH
Since company inception
(in millions)
(in millions)
9% CAGR 2014-2024
$2,200
$2,000
1,933
$1,800
1,660
1,617
$1,600
Capital
Expenditures
$556
(9%)
1,575
$1,400
$1,200
1,131
$1,000
$800
$600
676
741
805
870
925
2018
2019
$400
Dividends
$1,288
(21%)
$200
2015
2016
2017
2020
OPERATING INCOME
2021
2022
2023
2024
Share Repurchases
$2,746
(46%)
(in millions)
13% CAGR 2014-2024
$1,100
1,026
$1,000
$900
833
$800
747
$700
617
$600
$500
464
$400
$300
$200
216
256
284
2016
2017
314
341
2018
2019
$100
2015
2020
2021
2022
2023
Acquisitions, net and
Other Investments
$1,439
(24%)
2024
   2   
2024

IMPROVING
RETAIL & SERVICE
VA L U E P R O P O S I T I O N
In 2024, we successfully launched
four new brands, including new
packaging, displays, planograms,
and in-store signage for our
retail customers.
Relaunching our brands included a detailed
activation guide and marketing portal
accessible through POOL360, which facilitated
seamless onboarding for the 2025 Retail Edge
program and access to brand assets available
to order for Regal  , E-Z Clor  , Life  , PoolStyle  
and SuperPro   XtremeBlue  , as well as
top vendors.
SuperPro  
XtremeBlue   Filters
As part of our growing portfolio of premium, high-performance
solutions, XtremeBlue   filters deliver superior quality and
reliability at a competitive price. They exemplify our
commitment to providing trusted alternatives that meet
or exceed industry standards.
   3   



 3/27/2025 Letter Continued (Full PDF)