On 16 March 2020, Pool Corporation (NASDAQ: POOL) stock identified change of 9.95% away from 52-week low price and recently located move of -28.00% off 52-week high price. It has market worth of $7646.81M and dividend yield of 1.28%. POOL stock has been recorded -22.06% away from 50 day moving average and -15.63% away from 200 day moving average. Moving closer, we can see that shares have been trading -21.85% off 20-day moving average.
Pool Corporation (POOL) recently reported fourth quarter and full year 2019 results.
“2019 was an exciting year for POOLCORP as we achieved record sales, operating margin and earnings per share. We also achieved a record return on invested capital of 29.3%. Our focus on market share gains and capacity creation allowed us to capitalize on our competitive advantages and deliver solid results, particularly considering the impact of weather on our results in the first half of the year,” commented Peter D. Arvan, president and CEO.
Net sales increased 7% to a record high of $3.2B for the year ended December 31, 2019 contrast to $3.0B in 2018. Base business sales increased 5% driven by our continued expansion in commercial and building material products and healthy demand for discretionary products, such as construction materials and products used in the remodel and replacement of in-ground pools. We achieved these favorable results despite inclement weather throughout much of the first half of the year.
Gross profit reached a record $924.9M for the year ended December 31, 2019, a 6% increase over gross profit of $870.2M in 2018. Gross margin was relatively flat year over year at 28.9% in 2019 contrast to 29.0% in 2018, with base business gross margin at 29.0% in both years.
Selling and administrative expenses (operating expenses) increased 5% to $583.7M in 2019, up from $556.3M in 2018, with base business operating expenses up 3% over 2018. The increase in base business operating expenses was primarily attributable to higher growth-driven labor and freight expenses, as well as greater facility-related costs.
Operating income for the year increased 9% to $341.2M, up from $313.9M in 2018. Operating margin increased to 10.7% in 2019 contrast to 10.5% in 2018, while base business operating margin improved 40 basis points to 10.9% in 2019.
We recorded a $23.5M, or $0.57 per diluted share, benefit from Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting, for the year ended December 31, 2019 contrast to a benefit of $15.3M, or $0.36 per diluted share, realized in 2018.
Net income increased 12% to a record $261.6M in 2019 contrast to $234.5M in 2018. Earnings per share increased 14% to a record $6.40 per diluted share contrast to $5.62 per diluted share in 2018. Not Including the impact from ASU 2016-09 in both periods, earnings per diluted share increased 11% to $5.83 in 2019 contrast to $5.26 in 2018. Adjusted EBITDA (as defined in the addendum to this release) increased 8% to $382.2M in 2019 contrast to $353.4M in 2018 and was 11.9% of net sales in 2019 contrast to 11.8% of net sales in 2018.
On the balance sheet at December 31, 2019, total net receivables, including pledged receivables, increased 9% contrast to 2018, driven by our December sales growth. Inventory levels grew 4% to $702.3M contrast to $672.6M in 2018, reflecting inventory from purchased businesses of $10.3M and normal business growth. Total debt outstanding reduced $155.4M, or 23%, contrast to last year’s balance.
Cash provided by operations was $298.8M in 2019, contrast to $118.7M in 2018, an improvement of $180.1M. The planned inventory purchases that we made in the latter half of 2018 negatively influenced our 2018 cash flows Because of timing differences that reversed in 2019. Our return on invested capital (as defined in the addendum to this release) for 2019 was 29.3% contrast to 27.7% in 2018.
Net sales increased 7% to $582.2M in the fourth quarter of 2019 contrast to $543.1M in the fourth quarter of 2018. Gross margin reduced 170 basis points to 27.8% in the fourth quarter of 2019 contrast to the fourth quarter of 2018. Gross margin in the fourth quarter of 2018 reflected benefits from planned inventory purchases ahead of vendor price increases resulting in a comparative decline in the fourth quarter of 2019. Operating income in the fourth quarter of 2019 reduced 1% to $25.8M contrast to $26.0M in the same period of 2018. Operating margin reduced 40 basis points in the fourth quarter, including a 10 basis point decrease in base business operating margin. We recorded a $2.4M benefit from ASU 2016-09 in the fourth quarter of 2019 contrast to a benefit of $1.4M realized in the fourth quarter of 2018. Net income in the fourth quarter of 2019 was $18.0M contrast to $16.8M in the comparable 2018 period. Earnings per diluted share was $0.44 in the fourth quarter of 2019, or $0.38 not including the $0.06 per diluted share impact from ASU 2016-09, contrast to $0.41, or $0.37 not including the $0.04 impact from ASU 2016-09, for the same period in 2018.
Pool Corporation noticed change of -16.79% to $171.53 along volume of 560657 shares in recent session compared to an average volume of 217.78K. POOL’s shares are at -17.33% for the quarter and driving a 9.27% return over the course of the past year and is now at -19.23% since this point in 2018.