Hayward Holdings, Inc. · NYSE:HAYW
Hayward — Q3 2024 Earnings Presentation
23 slides from Hayward's earnings presentation, Oct 29, 2024
Slide 1: Third Quarter 2024 Earnings
THIRD QUARTER 2024 EARNINGS October 29, 2024 © 2024 Hayward Holdings, Inc.
Slide 2: Third Quarter 2024 Earnings Call
THIRD QUARTER 2024 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 and FP&A NYSE: HAYW © 2024 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 Reported Q3 2024 results in line with expectations Delivered strong gross profit margin expansion Generated robust cash flow; reduced net leverage1 to 2.8x Improved in-season order rates in North America Refined full year 2024 guidance; raised lower end of the ranges 1. Net leverage is
Slide 5: Financial Overview
Financial Overview RESULTS REFLECT: ▪ Continued solid execution, notably in • Net sales of $227.6M NAM • Gross profit margin of 49.7% ▪ Positive net price realization offset by Q3 2024 • Adj. EBITDA1 of $51.1M reduced volumes • Adj. EBITDA margin1 of 22.5% ▪ Strong gross profit margin expansion; • A
Slide 6: Business Update
Business Update END DEMAND PRODUCT INNOVATION ✓ Recent demand trends generally consistent with expectations ✓ Received separate awards from largest U.S. distributor for ✓ NAM outperforming Europe and Rest of World Innovation Leadership and Operational Excellence ✓ Resilient aftermarket maintenance;
Slide 7: Third Quarter 2024 Financials
Third Quarter 2024 Financials NET SALES +3.3% YoY ▪ Net price +5.6% (gross price increase, normalized discounts & allowances) NET SALES OF $227.6M ▪ Volume -4.7% ▪ Acquisition +2.5% (ChlorKing) GROSS PROFIT MARGIN OF 49.7% ▪ Increased 190 bps YoY despite 70 bps purchase accounting impact GROSS PROFI
Slide 8: Third Quarter 2024 Segment Overview
Third Quarter 2024 Segment Overview NORTH AMERICA EUROPE & REST OF WORLD NET SALES GROSS PROFIT ADJ. SEGMENT INCOME1 NET SALES GROSS PROFIT ADJ. SEGMENT INCOME1 $195.0M $101.9M $59.3M $32.6M $11.2M $2.7M YoY Change: Gross Profit Margin: Adj. Segment YoY Change: Gross Profit Margin: Adj. Segment +5.3
Slide 9: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights BALANCE SHEET ($M) CASH FLOW ($M) 9/28/2024 YTD YTD 2024 2023 Cash and cash equivalents $274 $600M fixed rate, remainder variable Cash flow from operating activities $276 $217 Total debt principal $984 Blended interest Less capex ($18) ($23) rate of 6.2%5 Term
Slide 10: Capital Allocation Priorities
Capital Allocation Priorities GROWTH INVESTMENTS 1 • Innovative new product development, IoT digital leadership • Commercial programs, dealer conversions • Operational excellence, productivity, growth capex Funding strategic 2 DE-LEVERING • Debt repayment growth investments and shareholder returns w
Slide 11: FY 2024 Financial Outlook
FY 2024 Financial Outlook OUTLOOK REFLECTS: Adjusted EBITDA1 of $260M to $270M ▪ Uncertain macro conditions Net sales of $1.020B to $1.040B, up ~3% to 5% ▪ Resilient aftermarket maintenance Free cash flow1 of ~$160M, >100% of net income ▪ New construction, remodel, upgrade impacted by economic and i
Slide 12: Key Messages
Key Messages Reported Q3 2024 results in line with expectations Delivered strong gross profit margin expansion Generated robust cash flow; reduced net leverage1 to 2.8x Improved in-season order rates in North America Refined full year 2024 guidance; raised lower end of the ranges 1. Net leverage is
Slide 13: Company Overview
COMPANY OVERVIEW © 2024 Hayward Holdings, Inc. 13
Slide 14: Hayward at a Glance
COMPANY OVERVIEW Hayward at a Glance ✓ Global leader in pool and outdoor living technology with the industry’s most recognized and trusted brand ~$1B $247M 2023 ✓ Strong, recurring aftermarket sales driven by one of the largest installed bases in the world 2023 Adj. EBITDA1 Net Sales (25% margin) ✓
Slide 15: Why Invest in Hayward?
COMPANY OVERVIEW Why Invest in Hayward? • Secular tailwinds (sunbelt migration, healthy outdoor living) Attractive • Large installed base that grows every year Industry • Disciplined industry, demonstrated pricing power • Aftermarket1 sales mix of ~80% Recurring • Majority non-discretionary purchase
Slide 16: Attractive Long-Term Growth Dynamics
COMPANY OVERVIEW Attractive Long-Term Growth Dynamics Secular Tailwinds Industry Drivers Competitive Advantages ✓ Healthy outdoor living ✓ Growing, aging installed base ✓ Strong brand and installed base ✓ Sunbelt migration ✓ Predictable, non-discretionary ✓ Technology leadership aftermarket spending
Slide 17: Appendix: Non-GAAP Reconciliations
APPENDIX APPENDIX Non-GAAP Reconciliations Non-GAAP Reconciliations © 2024 Hayward Holdings, Inc. 17
Slide 18: Adjusted EBITDA & Adjusted EBITDA Margin Three Months Ended
Adjusted EBITDA & Adjusted EBITDA Margin Three Months Ended Reconciliation APPENDIX © 2024 Hayward Holdings, Inc. 18
Slide 19: Adjusted EBITDA & Adjusted EBITDA Margin Last Twelve Months
Adjusted EBITDA & Adjusted EBITDA Margin Last Twelve Months Reconciliation APPENDIX © 2024 Hayward Holdings, Inc. 19
Slide 20: Adjusted Net Income & Adjusted EPS Reconciliation
Adjusted Net Income & Adjusted EPS Reconciliation APPENDIX © 2024 Hayward Holdings, Inc. 20
Slide 21: Adjusted Segment Income Three Months Ended
Adjusted Segment Income Three Months Ended Reconciliation APPENDIX © 2024 Hayward Holdings, Inc. 21
Slide 22: Adjusted Segment Income Nine Months Ended
Adjusted Segment Income Nine Months Ended Reconciliation APPENDIX © 2024 Hayward Holdings, Inc. 22
Slide 23: Thank You
THANK YOU © 2024 Hayward Holdings, Inc. 23