Superior Pool Products - Virginia Beach

There are roughly 80 million homes in the United States that have both the yard space and the economic capacity to add a pool. Of that number, only 12% currently have a pool, indicating a wide-open market of potential pool owners. A steady stream of new homes only adds to this overall market, creating even more fertile ground for pool development.

In terms of growth, the pool industry has historically been a steady performer. However, the adverse housing and economic trends over the past several years had a significant impact on our industry and our performance. These trends drove an approximate 80% reduction in new pool construction in the United States compared to peak levels in 2005 and also contributed to more than a 30% decline in replacement and refurbishment activities. While current economic trends indicate that consumer spending may rebound slowly and that construction activities in many markets will likely remain near current depressed levels through 2011, we believe that new pool and irrigation construction activities will gradually return to more normalized levels. We also believe there is potential for significant sales recovery due to the build-up of deferred replacement and retrofit activity and our expectation for gradually normalized new pool and irrigation construction levels. We expect that sales levels should once again benefit from long-term industry growth dynamics and that over the long-term the industry will return to an annual growth rate of approximately 2% to 6% when the overall economy rebounds and the real state and credit markets recover.

POOLCORP's expanding product offerings and markets place the company in a highly favorable position to capture a large portion of that business. Pool ownership delivers a wealth of benefits - from relaxation and entertainment to family togetherness and exercise - and these ideals never go out of style.