Pool Corporation (POOL) Q3 2022 Earnings Call Transcript

Pool Corporation (NASDAQ:POOL) Q3 2022 Earnings Conference Call October 20, 2022 11:00 AM ET

Company Participants

Melanie Hart - CFO

Peter Arvan - President &CEO

Conference Call Participants

David Manthey - Baird

Ryan Merkel - William Blair

Susan Maklari - Goldman Sachs

Andrew Carter - Stifel

David MacGregor - Longbow Research

Noah Merkousko - Stephens, Inc.

Joe Ahlersmeyer - Deutsche Bank

Stephen Volkmann - Jefferies

Ken Zener - KeyBanc

Garik Shmois - Loop Capital

Operator

Good day, and welcome to the Pool Corporation's Third Quarter 2022 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 would now like to turn the conference over to Melanie Hart, Chief Financial Officer. Please go ahead.

Melanie Hart

Welcome to our third quarter 2022 earnings conference call.

Our discussion, comments and responses to questions today may include forward-looking statements, including management's outlook for 2022 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 our Investor Relations section.

I will now turn the call over to our President and CEO, Peter Arvan.

Peter Arvan

Thank you, Melanie, and good morning to everyone on the call.

This morning, we were pleased to report another solid quarter for the business. Net sales including acquisitions came in at $1.6 billion, a 14% improvement, with base business posting a 10% improvement over the same period in 2021.

Our results were fueled by solid demand for non-discretionary maintenance and repair products, continued new pool construction activity, strong renovation and remodel activity and inflation in the 9% to 10% range.

Now that we have closed the third quarter, we are fairly certain that new pool construction activity in 2022 will be down when compared to 2021. We would estimate that new pool construction units this year will be 10% to 15% less than the previous season. As expected, remodel activity has tapped into the free capacity of our builders to keep them busy.