On April 19, pool-supply distributor Pool Corporation
- Same-store sales grew 4% for the quarter, and sales from a recent acquisition added the remaining growth. I'll throw the company a life preserver here, since winter's not the most brisk season for pool supplies.
- Increased costs from opening new sales centers -- while expanding and relocating others -- put a 200-basis-point dent in operating margins. Hopefully, those investments will pay off down the road.
- I couldn't find any direct, publicly traded competitors for the three-star-rated company in CAPS. That may be a good thing, considering the company's highly fragmented market.
(Figures in millions, except per-share data)
Income Statement Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Sales |
$373.7 |
$348.6 |
7.2% |
Net Profit |
$1.4 |
$6.4 |
(78.1%) |
EPS |
$0.03 |
$0.12 |
(75%) |
Diluted Shares |
52.5 |
55.4 |
(5.2%) |
Get back to basics with the income statement.
Margin Checkup
Q1 2007 |
Q1 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
27.7% |
28.1% |
(0.4) |
Operating Margin |
2.3% |
4.3% |
(2.0) |
Net Margin |
0.4% |
1.8% |
(1.5) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$30.6 |
$6.0 |
413.4% |
Accounts Rec. |
$231.0 |
$211.6 |
9.2% |
Inventory |
$413.2 |
$406.3 |
1.7% |
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Accounts Payable |
$325.4 |
$267.3 |
21.7% |
Long-Term Debt |
$253.2 |
$155.2 |
63.2% |
The balance sheet reflects the company's health.
Cash Flow Highlights
YTD 2007 |
YTD 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
($13.3) |
($60.7) |
N/A |
Capital Expenditures |
($3.3) |
($3.4) |
N/A |
Free Cash Flow |
($16.6) |
($64.1) |
N/A |
Free cash flow is a Fool's best friend.
We haven't written much on the company, but it sure seems impressive:
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At the time of publication, retail editor David Meier did not own stock in any of the companies mentioned. Fool rules are here.