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Latham (SWIM) - 2024 Q3 - Quarterly Results
SWIMLatham (SWIM)2024-11-05 21:10
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Financial Performance - Third quarter 2024 net sales were 150.5million,adecreaseof150.5 million, a decrease of 10.3 million or 6.4% from 160.8millionintheprioryear′sthirdquarter[4].−Netincomeforthethirdquarterwas160.8 million in the prior year's third quarter[4]. - Net income for the third quarter was 5.9 million, or 0.05perdilutedshare,comparedto0.05 per diluted share, compared to 6.2 million, or 0.05perdilutedshare,intheprioryear[7].−AdjustedEBITDAforthethirdquarterwas0.05 per diluted share, in the prior year[7]. - Adjusted EBITDA for the third quarter was 29.8 million, down 6.3millionor17.36.3 million or 17.3% from 36.1 million in the prior year's third quarter, with an adjusted EBITDA margin of 19.8%[7]. - Gross profit for the third quarter was 48.7million,withagrossmarginof32.448.7 million, with a gross margin of 32.4%, an increase of 250 basis points from 29.9% in the prior year[5]. - Income from operations decreased to 13.4 million from 18.1millionintheprioryear,reflectingadeclineof26.918.1 million in the prior year, reflecting a decline of 26.9%[28]. - Net income for the quarter was 5.9 million, compared to 6.2millioninthesamequarterlastyear,representingadecreaseof4.26.2 million in the same quarter last year, representing a decrease of 4.2%[28]. - Adjusted EBITDA for the quarter was 29,829 thousand, down from 36,083thousandyear−over−year,resultinginanadjustedEBITDAmarginof19.836,083 thousand year-over-year, resulting in an adjusted EBITDA margin of 19.8% compared to 22.4%[31]. Sales and Market Performance - Year-to-date fiberglass pool sales are expected to reach approximately 75% of total in-ground pool sales in 2024[2]. - The acquisition of Coverstar Central contributed approximately two months of sales in the third quarter, enhancing the company's safety cover product line[2]. - Net sales for the quarter ended September 28, 2024, were 150.5 million, a decrease of 6.9% compared to 160.8millionforthesamequarterin2023[28].ExpensesandLiabilities−Selling,general,andadministrativeexpensesincreasedto160.8 million for the same quarter in 2023[28]. Expenses and Liabilities - Selling, general, and administrative expenses increased to 28.3 million, up 20.9% from 23.4millionintheprioryear,primarilyduetoincreasedmarketingspending[6].−Totalliabilitiesincreasedslightlyto23.4 million in the prior year, primarily due to increased marketing spending[6]. - Total liabilities increased slightly to 436.8 million from 435.8millionattheendofthepreviousyear[29].−Thecompanyreportedanincreaseinaccountspayableto435.8 million at the end of the previous year[29]. - The company reported an increase in accounts payable to 28.3 million from 17.1millionyear−over−year,indicatingpotentialcashflowpressures[29].CashFlowandDebt−Totaldebtattheendofthethirdquarterwas17.1 million year-over-year, indicating potential cash flow pressures[29]. Cash Flow and Debt - Total debt at the end of the third quarter was 282.8 million, with a net debt leverage ratio of 2.6, up from 2.1 at the end of the second quarter[13]. - Cash balance as of September 28, 2024, was 59.9million,downfrom59.9 million, down from 102.8 million at the end of 2023[29]. - Cash provided by operating activities was 55,150thousand,adecreasefrom55,150 thousand, a decrease from 88,123 thousand in the prior year[30]. - Cash paid for interest was 20,481thousand,comparedto20,481 thousand, compared to 18,538 thousand in the prior year, indicating rising interest expenses[30]. - The net debt leverage ratio increased to 2.6x from 2.1x in the previous quarter, reflecting higher debt levels relative to adjusted EBITDA[32]. Future Outlook and Strategic Initiatives - Full year 2024 guidance for net sales is narrowed to 500−510million,andadjustedEBITDAguidanceissetat500-510 million, and adjusted EBITDA guidance is set at 77-83 million[16]. - The company is focused on implementing cost reduction plans and digital transformation initiatives to improve operational efficiency[26]. - Future outlook includes potential non-cash impairment charges for goodwill and the integration of the recent acquisition of Coverstar Central[26]. Capital Expenditures - Capital expenditures totaled 4.0millioninthethirdquarter,consistentwiththecompany′sguidanceofapproximately4.0 million in the third quarter, consistent with the company's guidance of approximately 5 million per quarter[14]. - Stock-based compensation expense decreased to 5,187thousandfrom5,187 thousand from 14,887 thousand year-over-year[31].