Outdoor Living Market Trends and Growth Initiatives slide image

Outdoor Living Market Trends and Growth Initiatives

Appendix Reconciliation of Net Income to Adjusted EBITDA FYE 12/31/21 FYE 12/31/20 FYE 12/31/19 FYE 12/31/18 FYE 12/31/17 FYE 12/31/16 Net income ($ in thousands) $650,624 $366,738 $261,575 $234,461 $191,339 $148,603 Add: Interest expense (1) 8,314 10,605 22,425 20,336 15,360 13,802 Provision for income taxes 173,812 85,231 56,161 58,774 77,982 92,931 Share-based compensation 15,187 14,516 13,472 12,874 12,482 9,902 Goodwill impairment (2,500) 6,944 613 Equity (earnings) losses in unconsolidated investments, net (291) (295) (262) (242) (139) (156) of tax Depreciation 28,287 27,967 27,885 26,122 24,157 20,338 Amortization (2) Adjusted EBITDA 1,325 $874,758 1,032 $512,738 956 1,102 976 $382,212 $353,427 $322,157 1,012 $287,045 (1) Shown net of interest income, impact of foreign currency transactions and includes amortization of deferred financing costs (2) Excludes amortization of deferred financing costs Return on Invested Capital 2021 2020 2019 2018 2017 2016 Numerator (trailing four quarters total): Net Income attributable to Pool Corporation $650,624 Interest and other non-operating expenses, net 8,639 Less: taxes on Interest and other non-operating expenses, net at 21.1%, 18.9% for 2020, 17.7% for 2019, 20.1% for 2018, 33.4% for 2017 (1,823) $366,738 12,353 (2,335) $657,440 $376,756 $261,575 23,772 (4,205) $281,142 $234,461 20,896 (4,200) $179,633 15,189 (5,073) $148,955 14,481 (5,575) $251,157 $189,749 $157,861 Denominator (average of trailing four quarters): Long-term debt, net $589,368 Short-term borrowings and current portion of long-term debt 11,246 Total stockholders' equity 897,320 $1,497,934 $432,829 12,372 516,040 $961,242 $595,247 17,323 346,049 $958,619 $602,984 15,190 289,979 $908,153 $520,950 11,030 236,901 $768,881 $441,026 3,806 237,380 $682,212 Return on invested capital 43.9% 39.2% 29.3% 27.7% 24.7% 23.1%
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