Pool Corporation (POOL) Q1 2023 Earnings Call Transcript

Pool Corporation (NASDAQ:POOL) Q1 2023 Earnings Conference Call April 20, 2023 11:00 AM ET

Company Participants

Melanie Hart - Vice President, Chief Financial Officer and Treasurer

Peter Arvan - President and Chief Executive Officer

Conference Call Participants

Ryan Merkel - William Blair

Susan Maklari - Goldman Sachs

David Manthey - Baird

Joe Ahlersmeyer - Deutsche Bank

Andrew Carter - Stifel

Scott Schneeberger - Oppenheimer

Trey Grooms - Stephens

Garik Shmois - Loop Capital

Stephen Volkmann - Jefferies

Shaun Calnan - Bank of America

Operator

Good morning and welcome to the Pool Corporation First Quarter 2023 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I'd now like to turn the conference over to Melanie Hart, Vice President and Chief Financial Officer. Please go ahead.

Melanie Hart

Welcome everyone to our first quarter 2023 earnings conference call. Our discussion, comments and responses to questions today may include forward-looking statements, including management's outlook for 2023 and future periods. Actual results may differ materially from those discussed today. Information regarding the factors and variables that could cause actual results to differ from projected results are discussed in our 10-K.

In addition, we may make references to non-GAAP financial measures in our comments. A description and reconciliation of our non-GAAP financial measures is included in our press release and posted to our corporate website in the Investor Relations section.

Peter Arvan, our President and CEO, will begin the call with his comments.

Peter Arvan

Thank you, Melanie, and good morning to everyone on the call. This morning we released our first quarter results which were adversely affected by challenging weather patterns across most of the North American market, and we were up against extremely difficult comparisons from 2022.

Despite cooler and extraordinarily wetter weather across many of our year round markets, we posted revenue of $1.2 billion, down 15% for both total and base business revenue when compared to 2022. As a reminder, in the first quarter of 2021, our base business sales grew 51%. In the first quarter of 2022, we saw sales grow by an additional 26%, which makes a quarter-over-quarter comparison tough in and of itself, but especially when confronted with unprecedented weather some of our major markets. What is encouraging though is that in the areas where the weather was normal, our business performed in line with expectations.