Pool Corporation (POOL) CEO Peter Arvan on Q1 2022 Results - Earnings Call Transcript

Pool Corporation (NASDAQ:POOL) Q1 2022 Earnings Conference Call April 21, 2022 11:00 AM ET

Company Participants

Melanie Hart - Vice President and Chief Financial Officer

Peter Arvan - President and Chief Executive Officer

Conference Call Participants

Ryan Merkel - William Blair

David Manthey - Baird

Susan Maklari - Goldman Sachs

Andrew Carter - Stifel

Trey Grooms - Stephens

David MacGregor - Longbow Research

Ken Zener - KeyBanc

Jeff Stevenson - Loop Capital

Operator

Good day and welcome to the Pool Corporation First Quarter 2022 Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ms. Melanie Hart, Vice President and Chief Financial Officer. Please go ahead, ma’am.

Melanie Hart

Welcome everyone to our first 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 any non-GAAP financial measures will be 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. Pete?

Peter Arvan

Thank you, Melanie and good morning to everyone on the call. Earlier today, we released our first quarter 2022 results and they were nothing short of spectacular. Revenue grew by 33% in the quarter, ending at $1.4 billion. This marks our fifth consecutive quarter with sales over $1 billion and is the second biggest quarter ever for POOLCORP. Making this even more notable is that this tremendous growth compares to a very strong first quarter in 2021 when we posted growth of 57%. Outdoor living remains a priority with homeowners across North America, which continues to keep demand for our products strong. New pool construction backlogs are solid and will keep builders busy for much of this year.

Families continue to invest in their backyards and enjoy the benefits of a healthy outdoor living lifestyle. Pent-up demand for renovation continues on the installed base of pools and hardscapes fueled by a tight housing market and rising home values. The maintenance and repair business is strong with the most maintenance companies commenting that the tight labor market isn’t allowing them to expand as fast as the market opportunities will allow. Fortunately, we have seen some improvements in the supply chain issues that plagued the industry last year. Our investment in inventory, infrastructure and relentless focus on execution, when combined with our vendors’ capacity investments, had eased some shortages and allowed us to provide a better customer experience than a year ago.