Covington, Louisiana-based Pool Corp. (Nasdaq/GSM:POOL) on Thursday reported ‘record’ third-quarter results, including strong net sales that reflect an overall 24% growth compared to the same period in 2020.
“I am incredibly proud of the POOLCORP team,” said Peter D. Arvan, president and CEO. “Everyone in the field, from our drivers, warehouse associates, customer service representatives, field management and those in support roles, came together to produce truly incredible results for the quarter. Their extraordinary efforts, tenacity and unending work ethic continued in the third quarter. Our net sales grew 24% to a record $1.4 billion, fueling 60% growth in operating income, on top of the 42% operating income growth that we posted in the third quarter of 2020. Each and every day, our teams have performed remarkably to meet customer demand in challenging conditions.”
Net sales were $1.1 billion during the third quarter in 2020.
During Q3 this year, base business sales increased 19%.
The company’s year-to-date net sales growth is $1.2 billion.
POOLCORP said its sales growth has benefited from elevated demand for outdoor living products along with favorable weather conditions. The company says its rigorous commitment to operating efficiency and capacity creation, along with its strategic focus on inventory purchases to serve demand has allowed them to fulfill their customers’ high volumes.
Gross profit increased 34% to a record $441.9 million in the third quarter of 2021, from $328.7 million in the same period of 2020. Base business gross profit improved 29% over the third quarter of 2020. Gross margin increased 240 basis points to 31.3% in the third quarter of 2021 compared to 28.9% in the third quarter of 2020. Base business gross margin increased 250 basis points, primarily reflecting benefits from supply chain management initiatives, POOLCORP said.
Selling and administrative expenses, including the recovery of goodwill and other assets, increased 13% to $204.6 million in the third quarter this year compared to $180.5 million over the same period in 2020. Base business operating expenses grew 7%, primarily due to growth-driven labor, facility and freight costs, along with increased investments in technology.
Operating income in the third quarter of 2021 increased 60% to $237.3 million compared to $148.2 million in the same period last year. Operating margin was 16.8% in the third quarter of 2021 compared to 13.0% in the third quarter of 2020, while base business operating margin was 17.1%, up 410 basis points from the prior-year period.
Net income increased 55% to $184.7 million in the third quarter, compared to $119.1 million in during the same period in 2020. Earnings per diluted share increased 55% to $4.54 in the third quarter of 2021 compared to $2.92 in the same period of 2020.