Anthony & Sylvan Pools Corporation Announces Record First Quarter Sales

Business Wire, April 25, 2000

Business Editors

MAYFIELD VILLAGE, Ohio--(BUSINESS WIRE)--April 25, 2000

Anthony & Sylvan Pools Corporation (Nasdaq:SWIM) today announced results for its first quarter ended March 31, 2000. Net sales were a record $30,391,000, an increase of 15.0% from the first quarter 1999 sales of $26,422,000. The net loss for the seasonally slow first quarter was $(2,104,000), an improvement of 28.9% compared with $(2,958,000) for the comparable period last year. On a per share basis, the $(.80) per diluted share for 2000 compares favorably with a per share loss of $(.88) for the first quarter ended March 31, 1999.

Commenting on the results, Stuart D. Neidus, Anthony & Sylvan's Chairman and Chief Executive Officer, stated, "We have gotten off to a good start in a traditionally slow quarter. With strong demand, we have a full pipeline of business-building activities, including developing a growing sales force, expanding our pool-building capacity and integrating the recently announced acquisition in Austin, Texas."

As to the financial condition of the Company, Mr. Neidus said, "We are in excellent financial shape. As we enter what is normally our strongest quarter, we have good control over our working capital, and we have a virtually unused line of credit of $35 million. Also, since we became a stand-alone public company in August 1999, we have reduced the net number of shares outstanding by approximately 20%, through a combination of share repurchases offset by the purchase of some of those shares by executives and directors under a Leveraged Stock Purchase Plan."

Mr. Neidus went on to say, "The earnings improvement in the first quarter is very encouraging. We are tracking with our business plan for the year 2000 which, barring any unusual weather or economic conditions, should produce double-digit sales growth for the year similar to what we achieved in our first quarter. Our efforts to grow the business, control costs and improve our operating efficiencies, coupled with fewer diluted shares outstanding, should allow us to produce at least a four-fold increase in diluted earnings per share for the year over last year's $.27 per share."

Anthony & Sylvan (http://www.anthonysylvan.com) is one of the largest installers of residential in-ground concrete swimming pools in the United States with a network of 47 sales offices in 29 geographic markets serving 16 states. The Company also is a provider of pool-related products and services, including renovation, pool supplies and replacement goods.

This press release contains statements that are forward-looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations, and releases. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors, including but not limited to: the costs of integrating acquired businesses; dependence on existing management; consumer spending and market conditions; weather; and year 2000 issues. Accordingly, actual results may differ from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by the Company or any other person that results expressed therein will be achieved.

                  Anthony & Sylvan Pools Corporation
                       Statements of Operations
          For the Three Months Ended March 31, 2000 and 1999
             (Dollars in thousands, except per share data)

                                                   March 31,
                                               2000        1999
                                             --------    --------
                                                  (Unaudited)

Net sales                                    $ 30,391    $ 26,422

Cost of sales                                  23,938      20,719
                                             --------    --------
  Gross profit                                  6,453       5,703

Operating expenses                              9,650       9,505
                                             --------    --------
  Income from operations                       (3,197)     (3,802)

Interest and other expense                        196       1,095
                                             --------    --------
  Income before income taxes                   (3,393)     (4,897)

Provision for income taxes                     (1,289)     (1,939)
                                             --------    --------
  Net income                                 $ (2,104)   $ (2,958)
                                             --------    --------
                                             --------    --------
Earnings per share:

  Basic                                      $   (.80)   $   (.88)
                                             --------    --------
                                             --------    --------
  Diluted                                    $   (.80)   $   (.88)
                                             --------    --------
                                             --------    --------
Average shares outstanding:

  Basic                                         2,620       3,357
                                             --------    --------
                                             --------    --------
  Diluted                                       2,620       3,357
                                             --------    --------
                                             --------    --------


                  Anthony & Sylvan Pools Corporation
                            Balance Sheets
                        (Dollars in thousands)

                                             March 31,  December 31,
                                               2000        1999
                                            (Unaudited)  (Audited)
                                             --------    --------
ASSETS

Current Assets:
       Cash and cash equivalents             $  1,079    $    533
       Contract receivables, net                5,600       8,101
       Inventories, net                         7,625       5,282
       Prepayments and other                    1,930       1,673
       Deferred income taxes                    3,450       2,584
                                             --------    --------
           Total current assets                19,684      18,173

Property, plant and equipment, net              8,210       8,107
Goodwill, net                                  27,204      27,386
Other                                           1,977       1,841
                                             --------    --------
                                             $ 57,075    $ 55,507
                                             --------    --------
                                             --------    --------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
        Current maturities of long-term debt $    171    $    171
        Accounts payable                        9,322       5,782
        Accrued expenses                       14,581      11,695
        Accrued income taxes                        -         451
                                             --------    --------
           Total current liabilities           24,074      18,099

Long-Term Debt                                  2,050       4,593
Other Long-Term Liabilities                     2,218       2,243
Commitments and Contingencies                       -           -

Shareholders' Equity                           28,733      30,572
                                             --------    --------
                                             $ 57,075    $ 55,507
                                             --------    --------
                                             --------    --------