Anthony & Sylvan posts first quarter loss - Making News

In one of the first clear signs that the weak economy is taking a toll on the industry, pool building and retailing giant Anthony & Sylvan Pools Corp., has registered a double-digit loss in first quarter sales for this year.

Net sales for the first quarter were $18.2 million compared with $23.1 million for the same period last year, a decrease of almost 21 percent, according to company officials.

The slide comes on the heels of a 5.5 percent decrease the company posted for year-end sales in 2002.

"Going back to 1999, which was the first year we were a stand-alone public company, this is the first time we have not been able to achieve year-over-year increases in revenues in our first quarter," said Stuart Neidus, CEO of the Mayfield Village, Ohio-based company.

"The unusual, extended winter in the Northeast was the worst in a long time, which caused the decline in our production," he said.

While harsh weather conditions took their toll, the sluggish economy also played a role. For example, the company shut down two of its operations in Florida last year. "We could not get a return on our investment," Neidus said.

"We have been operating in a weak economic environment for a couple of years now," he said. "We have assumed no real change in 2003."

Anthony & Sylvan has made several investments to improve long-term economic benefits, according to Neidus. In addition to sales designers creating more accurate pool designs through the use of new software, the sales staff now uses customer contact management software to better track leads, which results in faster communication with clients.

Neidus also remains optimistic, noting upcoming opportunities for growth.

"We plan on growing our business through internal means, acquisitions, and geographic and product expansion," he said.

COPYRIGHT 2003 Hanley-Wood, Inc.
COPYRIGHT 2003 Gale Group