POOL CORP reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $1,432.9 million, a decrease of 3% from $1,474.4 million in Q3 2023. The nine-month net sales also fell by 5%, totaling $4,323.5 million compared to $4,538.5 million in the prior year. Contributing factors included a decline in discretionary spending and lower sales volumes in pool construction, despite a 2% increase in chemical sales.
Gross profit for Q3 2024 was $416.4 million, down 3% from $428.7 million in Q3 2023, maintaining a consistent gross margin of 29.1%. For the nine months, gross profit decreased by 6% to $1,285.1 million, with a slight drop in gross margin to 29.7% from 30.1%. Operating income for Q3 2024 was $176.4 million, a 9% decrease from $194.4 million in the same quarter of 2023, while the nine-month operating income fell to $556.6 million from $667.2 million.
Net income for Q3 2024 was $125.7 million, a 9% decline from $137.8 million in Q3 2023, resulting in diluted earnings per share (EPS) of $3.27, down from $3.51. For the nine months, net income decreased by 16% to $397.0 million, with diluted EPS falling to $10.30 from $12.00.
The company declared cash dividends of $1.20 per share for Q3 2024, up from $1.10 in Q3 2023, and $3.50 for the nine months, compared to $3.20 in the previous year.
Strategically, POOL CORP made several acquisitions, including Swimline Distributors, Inc. in May 2024 and Shoreline Pool Distribution in January 2024, expanding its operational footprint. The company also entered into a Third Amended and Restated Credit Agreement, increasing its borrowing capacity from $750 million to $800 million, with a maturity extension to September 30, 2029.
As of September 30, 2024, total assets were $3,367.4 million, with total liabilities of $1,934.9 million, resulting in stockholders' equity of $1,432.5 million. The company reported total debt of $923.8 million, down from $1,033.9 million a year earlier.
Looking ahead, POOL CORP anticipates a full-year sales decline of approximately 5% for 2024, driven by significant decreases in discretionary and remodeling product volumes. The projected gross margin for the year is around 30.0%, with an expected effective tax rate of 25.0%.
About POOL CORP
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