Hayward Holdings, Inc. · NYSE:HAYW
Hayward — Q2 2023 Earnings Presentation
18 slides from Hayward's earnings presentation, Aug 2, 2023
Slide 1: Second Quarter 2023 Earnings
SECOND QUARTER 2023 EARNINGS August 2, 2023 © 2023 Hayward Holdings, Inc.
Slide 2: Second Quarter 2023 Earnings Call
SECOND QUARTER 2023 EARNINGS CALL KEVIN HOLLERAN President and Chief Executive Officer EIFION JONES Senior Vice President and Chief Financial Officer KEVIN MACZKA Vice President of Investor Relations NYSE: HAYW © 2023 Hayward Holdings, Inc. 2
Slide 3: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation includes certain statements that are “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 that are based on the beliefs of Hayward’s mana
Slide 4: Key Messages
Key Messages Delivered Q2 2023 results ahead of expectations Channel inventory rebalance progressing; expected completion by end of Q3 Achieved record gross profit margins at reduced volume levels Generated strong cash flow through effective working capital management Full year Adjusted EBITDA withi
Slide 5: Financial Overview
Financial Overview RESULTS REFLECT: • Net sales of $283.5M ▪ Positive price realization • Gross profit margin of 48.1% ▪ Reduced distribution inventory levels Q2 2023 • Adj. EBITDA1 of $79.5M ▪ Difficult macroeconomic conditions • Adj. EBITDA margin1 of 28.0% • Adj. diluted EPS1 of $0.19 ▪ Record gr
Slide 6: Business Update
Business Update ✓ Targeting share gain through new product innovation, enhanced commercial programs Market Share ✓ Evolving go-to-market strategy, integrated customer engagement structure, allocating resources to high-growth regions ✓ Sell through exceeded expectations in Q2 Channel Sell Through ✓ N
Slide 7: Second Quarter 2023 Financials
Second Quarter 2023 Financials NET SALES (29%) YoY NET SALES OF $283.5M ▪ Price +4%, acquisitions +1% ▪ Volume -35% (channel inventory movements, reduced sell through) GROSS PROFIT MARGIN OF 48.1% GROSS PROFIT OF $136.5M ▪ Gross margin increased 70 bps YoY and 150 bps sequentially ▪ Price-cost neutr
Slide 8: Second Quarter 2023 Segment Overview
Second Quarter 2023 Segment Overview North America Europe and Rest of World Net Sales $237.4M Net Sales $46.2M YoY Change (30.6%) YoY Change (19.5%) Gross Profit $118.4M Gross Profit $18.1M Gross Profit Margin 49.9% Gross Profit Margin 39.1% Adj. Segment Income1 $76.9M Adj. Segment Income1 $9.6M Adj
Slide 9: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights BALANCE SHEET ($M) CASH FLOW ($M) 7/1/2023 YTD 2023 YTD 2022 Cash and cash equivalents $205 Cash flow from operating activities $167 $64 $600M fixed rate, Total debt principal $1,116 remainder variable Less capex ($16) ($16) Term debt (2028 maturity)1 $1,104 Fr
Slide 10: Balanced Capital Allocation Priorities
Balanced Capital Allocation Priorities ✓ Innovative new product development, IoT digital leadership Growth ✓ Commercial programs, dealer conversions Investments ✓ Operational excellence, productivity, growth capex Funding strategic growth investments ✓ Pipeline of tuck-in opportunities to complement
Slide 11: FY 2023 Financial Outlook
FY 2023 Financial Outlook OUTLOOK REFLECTS: Adjusted EBITDA1 of ▪ Challenging global macro conditions Net sales down 20% to 23% $265M to $280M ▪ NAM aftermarket resilient, new construction down ~30%, remodel / upgrade down ~25% Reversion to more normal Free cash flow1 exceeding ▪ ERW down ~25% seaso
Slide 12: Key Messages
Key Messages Delivered Q2 2023 results ahead of expectations Channel inventory rebalance progressing; expected completion by end of Q3 Achieved record gross profit margins at reduced volume levels Generated strong cash flow through effective working capital management Full year Adjusted EBITDA withi
Slide 13: Appendix: Non-GAAP Reconciliations
APPENDIX APPENDIX Non-GAAP Reconciliations Non-GAAP Reconciliations © 2023 Hayward Holdings, Inc.
Slide 14: Adjusted EBITDA & Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA & Adjusted EBITDA Margin Reconciliation APPENDIX © 2023 Hayward Holdings, Inc. 14
Slide 15: Adjusted EBITDA & Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA & Adjusted EBITDA Margin Reconciliation APPENDIX © 2023 Hayward Holdings, Inc. 15
Slide 16: Adjusted Net Income and Adjusted EPS Reconciliation
Adjusted Net Income and Adjusted EPS Reconciliation APPENDIX © 2023 Hayward Holdings, Inc. 16
Slide 17: Adjusted Segment Income Reconciliations
Adjusted Segment Income Reconciliations APPENDIX © 2023 Hayward Holdings, Inc. 17
Slide 18: Thank You
THANK YOU © 2023 Hayward Holdings, Inc.