SCP registers record fiscal year - Making News

Despite the economic challenges plaguing many American businesses last year, SCP Pool Corp., said to be the nation's largest distributor of pool supplies, recently announced record sales for 2002.

Net sales for the year increased $129 million, or 15 percent, to $983.2 million, compared with $854.2 million in 2001, according to company officials.

"That's a healthy level of growth, particularly when you look at the economic environment and the many markets we're in," said SCP President Manuel Perez de la Mesa.

The rise in sales at SCP is attributed, in part, to the acquisitions of Fort Wayne Pools in August 2002 and Capital Pool Industries Ltd. in October 2001, according to Perez.

"Based on those acquisitions, we were able to boost sales 15 percent," he said. "Ten percent came from internal and 5 percent came from acquisitions."

Improved customer value components also contributed to the company's growth, said Perez. "We have programs that generate leads for our customer, whether it be a builder, retailer or service technician," he said. "We complement those programs with tools to aid our customer base in their ability to sell more pools."

Although the Covington, La.-based company reported a net income loss of 11 percent during its fourth quarter, which was a slow time for the industry, it still registered double-digit percentage increases across the board for the entire year in gross profit (16 percent), operating income (14 percent) and earnings per share (22 percent).

Perez credited the resilience of the industry in a sluggish economic environment to a strong, untapped pool market. "We, as an industry, have only captured a 10 percent share of the potential pool market in the United States," he said. "Therefore, we are capturing a small share of the major expenditures, and we have a huge market upside."

Onward and Upward

SCP Pool Corp.'s sales have grown
steadily over the last five years:

1998    $459 million
1999    $572 million
2000    $672.2 million
2001    $854.2 million
2002    $983.2 million

Note: Table made from line graph.

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