Business
Latham Group, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results and Provides 2024 Guidance
Full Year 2023 Sales Outperformed the U.S. In-Ground Pool Market in 2023 Driven by Continued Fiberglass Conversion Substantially Reduced Cost Structure During
About this update from Latham Group, Inc.
[{"type":"text","content":"Full Year 2023 Sales Outperformed the U.S. In-Ground Pool Market in 2023 Driven by Continued Fiberglass Conversion Substantially Reduced Cost Structure During 2023 Full Year Operating Cash Flow of $116 Million Yielded Record Cash Position of $100 Million at Year-End 2024 Guidance Anticipates Continued Ability to Outperform Industry Amid Difficult Market Conditions Fourth Quarter 2023 Highlights: Net sales of $90.9 million, down 15.8% year-over-yearNet income of $0.1 million improved from prior year’s net loss of $19.0 million; Net income margin was 0.1%Adjusted EBITDA of $9.9 million, compared to last year’s $4.4 million; Adjusted EBITDA margin was 10.9% Full Year 2023 Highlights: Net sales of $566.5 million, down 18.6% year-over-yearNet loss of $2.4 million versus a net loss of $5.7 million in the prior year period; Net loss margin was 0.4%Adjusted EBITDA of $88.0 million, down 38.6% year-over-year; Adjusted EBITDA margin was 15.5% LATHAM, N.Y., March 12, 2024 (GLOBE NEWSWIRE) -- Latham Group, Inc. (Nasdaq: SWIM), the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand, today announced financial results for the fourth quarter and full year 2023 ended December 31, 2023. Commenting on the results, Scott Rajeski, President and CEO, said, “Latham navigated a very difficult market environment in 2023. We successfully implemented cost reduction programs and lean manufacturing initiatives that structurally reduced our cost basis, while maintaining our investments in future growth. These cost reduction programs improved margins as the year progressed and we expect they will enable us to considerably expand margins and overall profitability once volumes recover. At the same time, we increased productivity and efficiency for our dealers, developed new fiberglass pool models, and invested in digital tools that have enhanced the consumer’s pool buying experience. As a result of these actions, Latham is positioned for meaningful market share gains as overall industry conditions improve. “Our 2023 total sales outperformed U.S. new in-ground pool starts by approximately 10 percentage points, largely reflecting Latham’s leadership in the design, manufacture, and sale of fiberglass pools. The multi-year success of our conversion strategy has resulted in consistent sha...