Latham Group, Inc. · NASDAQ:SWIM
Latham — Q3 2022 Earnings Presentation
11 slides from Latham's earnings presentation, Nov 10, 2022
Slide 1: Q3 2022 Earnings Call
Q3 2022 Earnings Call November 10, 2022
Slide 2: Disclaimer: Forward-looking Statements
Disclaimer Forward-looking Statements Certain statements contained in this presentation are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are
Slide 3: Q3 2022 Highlights
Net Sales Q3 2022 Highlights ($ in millions) +17% YoY Growth $189 Strong topline growth across our product portfolio $162 Continued to drive year-over-year improvement in North American fiberglass production Q3 2021 Q3 2022 Adjusted EBITDA1 ($ in millions) Substantially normalized lead times across
Slide 4: Go-Forward Strategy
Go-Forward Strategy Leverage Direct-to- Reduce Costs Homeowner Strategy and Drive Fiberglass Conversion Lead Generation Engine • Cost reduction initiatives expected to • Positioned as a key resource for • Enhancing leadership position through generate annual operating expense homeowners’ pool buying
Slide 5: Q3 / YTD 2022 Financial Highlights
Q3 / YTD 2022 Financial Highlights Q3 Net Sales Adjusted EBITDA(1) ($ in millions) ($ in millions) +17% YoY Growth +17% YoY Growth Key Drivers $189 $42 • Net sales growth across all three product $162 $36 categories - in-ground swimming pools, covers and liners Q3 2021 Q3 2022 Q3 2021 Q3 2022 • Topl
Slide 6: Responding to Current Market Conditions
Responding to Current Market Conditions Latham’s continuous improvement culture coupled with the recent cost reduction actions strengthen our ability to navigate the challenging market environment while still prioritizing our growth strategy Cost Reduction Impact Actions • Optimized production and s
Slide 7: Financial Outlook
Financial Outlook FISCAL 2022 OUTLOOK1 THREE-TO-FIVE YEAR TARGETS2 Net Sales Net Sales Growth ~$685 million to $700 million 10% to 12% Adjusted EBITDA Adjusted EBITDA Growth ~$140 million to $145 million 12% to 15% Capital Expenditures Adjusted EBITDA Margin ~$40 million to $45 million +500 bps Key
Slide 8: Latham: A Compelling Growth Story
Serving a large and attractive market benefitting from material conversion The leading consumer brand in the residential pool market Unique direct-to-homeowner model driving business for our dealer partners Latham: A 1 Broadest portfolio of branded products known for quality, durability and aestheti
Slide 9: SWIM | Nasdaq Listed
SWIM | Nasdaq Listed
Slide 10: Appendix
Appendix Latham Group SWIM | Nasdaq Listed
Slide 11: Non-GAAP Reconciliations
Non-GAAP Reconciliations (in thousands) Fiscal Quarter Ended Three Fiscal Quarters Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Net income (loss) $ 11,876 $ (11,296) $ 13,339 $ (56,361) Depreciation and amortization 9,560 8,019 28,834 23,689 Interest expense 4,264 4,271 9,19