Business
Latham Group, Inc. Reports Third Quarter Fiscal 2023 Financial Results
Year-over-year In-ground Net Sales Performance for First Nine Months of Fiscal 2023 Outpaced Expected Declines in U.S. New In-ground Pool Installations for
About this update from Latham Group, Inc.
[{"type":"text","content":"Year-over-year In-ground Net Sales Performance for First Nine Months of Fiscal 2023 Outpaced Expected Declines in U.S. New In-ground Pool Installations for 2023 Reduction in Facilities Footprint and Lean Initiatives Driving Improved Cost Structure Strong Cash Generation in Q3’23 Supports $10 Million Repayment of Debt Updates Fiscal 2023 Guidance LATHAM, N.Y., Nov. 07, 2023 (GLOBE NEWSWIRE) -- Latham Group, Inc. (“Latham” or “the Company”) (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 third quarter and first nine months of its fiscal year 2023 ended September 30, 2023. Third Quarter Fiscal 2023 Highlights: Net sales of $160.8 million, down 15.1% year-over-yearNet income of $6.2 million versus net income of $11.9 million in the prior year period, representing a 3.8% net income marginAdjusted EBITDA of $36.1 million, down 14.6% year-over-year, representing a 22.4% Adjusted EBITDA margin Nine Months Fiscal 2023 Highlights: Net sales of $475.6 million, down 19.1% year-over-yearNet loss of ($2.5) million versus net income of $13.3 million in the prior year period, representing a (0.5%) net loss marginAdjusted EBITDA of $78.1 million, down 43.7% year-over-year, representing a 16.4% Adjusted EBITDA margin “Our year-to-date in-ground swimming pool net sales have outperformed the anticipated decline in U.S. new pool installations for 2023, similar to how we outpaced the market last year. These results demonstrate the competitive strengths of fiberglass pools, which are cost effective, easy to install, and more eco-friendly than concrete pools,” commented Scott Rajeski, President and CEO of Latham. “Our structural cost reduction actions and ongoing lean initiatives have enabled us to achieve both sequential and year-over-year Adjusted EBITDA margin improvements in Q3 on lower net sales. We continue to drive efficiencies, while maintaining the flexibility to ramp up production as market conditions improve. We also are pleased with our strong cash flow generation in the third quarter, which has further strengthened our liquidity.” Mr. Rajeski continued, “We continue to see progress on our lead generation, dealer strategy, and fiberglass conversion efforts, underscoring our confidence that the long-t...