Latham Group, Inc. · NASDAQ:SWIM
Latham — Q1 2024 Earnings Presentation
15 slides from Latham's earnings presentation, May 7, 2024
Slide 1: Q1 2024 Earnings Call
Q1 2024 Earnings Call May 7, 2024
Slide 2: Disclaimer
Disclaimer Forward-looking Statements Certain statements in this presentation constitute forward-looking statements under federal securities laws. These forward-looking statements reflect our views with respect to future events and financial performance as of the date of this presentation or otherwi
Slide 3: Q1 2024 Highlights
Q1 2024 Highlights First quarter results exceeded guidance and 1 represented a solid start to the year Demonstrated strong execution and benefited from 2 cost savings, lean manufacturing & value engineering initiatives Ended Q1 with a strong cash position 3 Seasonal net working capital build in-line
Slide 4: Executed Effectively on Key 2024 Priorities
Executed Effectively on Key 2024 Priorities Continued to drive awareness and adoption of fiberglass and introduced new and innovative pool designs Gained additional operating efficiencies through lean and value engineering initiatives Maintained a strong balance sheet 4
Slide 5: Moved Forward With New and Refreshed Products + New Dealer Conversions
Moved Forward With New and Refreshed Products + New Dealer Conversions Plunge Pools • Launched the Enchantment plunge pool series to serve the important California, Arizona, and Nevada markets Refreshed Pool Models • Refreshed the Tuscan and Providence series – trendy rectangular pools with an attra
Slide 6: Gained Operating Efficiencies Through Lean and Value Engineering Initiatives
Gained Operating Efficiencies Through Lean and Value Engineering Initiatives Structural cost benefits will have a long-term positive impact on Latham’s margin profile COST BENEFITS Driving ongoing production efficiencies and incremental capacity PRODUCTION EFFICIENCIES 8% improved labor efficiency a
Slide 7: Ended Q1 With A Strong Balance Sheet
Ended Q1 With A Strong Balance Sheet Substantial cash position after usual seasonal outlays Significant resilience to manage through difficult economic conditions Financial flexibility to take advantage of future growth opportunities 7
Slide 8: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights Net Sales ($ in millions) Q1 Q1 2024 2024 Key Key Drivers Drivers $138 $111 • Year-over-year volume declines due to continued economic challenges Q1 2023 Q1 2024 • Effective execution helped to meet an up- tick in demand late in the quarter Adjusted EBITDA(1) ($ in milli
Slide 9: Balance Sheet & Cash Flow Highlights
Balance Sheet & Cash Flow Highlights $119 million • Substantial financial flexibility to navigate difficult economic Quarter-End Liquidity(1) + $37 million conditions and continue to deploy our capital allocation policy versus 1Q23 Net Cash Used in Operating $34.5 million • Seasonal cash usage follo
Slide 10: Re-Affirming Full Year 2024 Outlook
Re-Affirming Full Year 2024 Outlook(1) $ in millions 2024 Outlook Metric Low High Net Sales $490 $520 Adjusted EBITDA(2) $60 $70 Capital Expenditures $18 $22 Reflects • Managing to ~15% decline in new in-ground pool installations in 2024, planning for recovery in 2025; • Benefits from our cost savin
Slide 11: Latham: A Compelling Long-term Growth Story
Serving a large and attractive market benefitting from fiberglass market share gains The leading consumer brand in the residential pool market Latham: A Unique direct-to-homeowner model driving business for our dealer partners Compelling Long-term 1 Broadest portfolio of branded products known for q
Slide 12: Q&A
Q&A
Slide 13: Appendix
Appendix Qatham Group SWIM | Nasdaq Listed
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA and Adjusted EBITDA Margin Quarter Ended March 30, 2024 April 1, 2023 (in thousands) Net loss $ (7,864) $ (14,368) Depreciation and amortization 10,375 9,258 Interest expense, net 4,982 10,804 Income tax expense (benefit) 532 (2,928) Loss on sale and disposal
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Net Debt and Net Debt Leverage Ratio (in thousands) March 30, 2024 April 1, 2023 Total debt $ 282,781 $ 360,461 Less: Cash (43,811) (55,016) Net Debt 238,970 305,455 LTM Adjusted EBITDA(a) 89,285 106,323 Net Debt Leverage Ratio 2.7x 2.9x (a) LTM Adjusted EBITDA is the sum of