Pool Corp. said it again set a company record for quarterly sales as it saw its third-quarter earnings jump to $119.1 million, or $2.92 per share.
That compares to $79.5 million, or $1.95 per share, the company earned in third-quarter 2019.
Quarterly earnings were boosted by $8.5 million, or 21 cents per share, due to an update in accounting standards.
The Covington-based wholesale distributor of swimming pool equipment and supplies said it capitalized on the demand for safe, stay-at-home activities that have been generated by the coronavirus pandemic. Net sales rose to $1.1 billion in the third quarter, a 27% increase from the $898.5 million in 2019.
Pool Corp. had second-quarter net sales of almost $1.3 billion, which was up from $1.1 billion the year before.
“Consumer spending on outdoor living products remained strong, and our team continued to execute at a very high level, which resulted in stellar results this quarter across a broad range of operating metrics,” said Peter D. Arvan, president and chief executive officer. Arvan said Pool Corp. was boosted by the recent acquisitions of Northeastern Swimming Pool Distributors Inc. and Jet Line Products Inc., which expanded the company’s network.
As a result of the increased sales, Pool Corp. has again raised its earnings guidance for 2020. The company now projects earnings per share of $8.05 to $8.35, up from the previous range of $6.90 to $7.30.
“As we move forward into the fourth quarter, we believe that demand for our products remains strong, and our teams are committed to sustaining our track record of operational excellence,” Arvan said.
Gross profits rose from $257.9 million in 2019 to $328.7 million, another third-quarter record for the company. Gross margin increased from 28.7% to 28.9%, with increased purchase volumes driving improvements in supply chain management. Operating expenses rose from $153.4 million to $180.5 million, as a result of performance-based pay for employees.