Hayward Holdings, Inc. · NYSE:HAYW
Hayward — Q3 2023 Earnings Presentation
18 slides from Hayward's earnings presentation, Oct 31, 2023
Slide 1: Third Quarter 2023 Earnings
THIRD QUARTER 2023 EARNINGS October 31, 2023 © 2023 Hayward Holdings, Inc.
Slide 2: Third Quarter 2023 Earnings Call
THIRD 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 Strong execution; delivered Q3 2023 in line with expectations Expanded gross profit margins at reduced volume levels Entered the new pool season with leaner channel inventory levels Strengthened the business; well positioned for long-term profitable growth Updated full year guidance lar
Slide 5: Financial Overview
Financial Overview RESULTS REFLECT: ▪ Solid execution in the US and Europe • Net sales of $220.3M ▪ Normalizing distributor inventory levels • Gross profit margin of 47.8% ▪ 5% list price realization offset by change in channel rebate achievement YoY and Q3 2023 • Adj. EBITDA1 of $47.2M increased mi
Slide 6: Business Update
Business Update ✓ End demand, reflected in channel sell through, consistent with expectations End Demand ✓ Demand for discretionary products impacted by economic uncertainty, rising interest rate environment ✓ One of the largest US pool builders standardizing on Omni IoT platform; 94% of Omni units
Slide 7: Third Quarter 2023 Financials
Third Quarter 2023 Financials NET SALES (10%) YoY ▪ Net price -3% (list price increases of 5% offset by the change in channel rebate NET SALES OF $220.3M achievement YoY and mix of dealer incentives) ▪ Volume -8% (channel inventory movements, reduced sell through) GROSS PROFIT MARGIN OF 47.8% GROSS
Slide 8: Third Quarter 2023 Segment Overview
Third Quarter 2023 Segment Overview North America Europe and Rest of World Net Sales $185.1M Net Sales $35.2M YoY Change (9.1%) YoY Change (15.3%) Gross Profit $91.5M Gross Profit $14.0M Gross Profit Margin 49.4% Gross Profit Margin 39.6% Adj. Segment Income1 $46.1M Adj. Segment Income1 $6.7M Adj. S
Slide 9: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights BALANCE SHEET ($M) CASH FLOW ($M) 9/30/2023 YTD 2023 YTD 2022 Cash and cash equivalents $244 $600M fixed rate, Cash flow from operating activities $217 $144 remainder variable Total debt principal $1,113 Blended interest Less capex ($23) ($24) rate of 6.7%6 Ter
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 De-levering ✓ Debt repayment growth investments and shareholder retu
Slide 11: FY 2023 Financial Outlook
FY 2023 Financial Outlook OUTLOOK REFLECTS: Adjusted EBITDA1 of ▪ Challenging global macro conditions $245M to $255M ▪ NAM aftermarket resilient, new construction Net sales down 24% to 26% down >30%, remodel / upgrade down ~25% Free cash flow1 of ▪ ERW down ~20-25% $125M to $150M ▪ Channel inventory
Slide 12: Key Messages
Key Messages Strong execution; delivered Q3 2023 in line with expectations Expanded gross profit margins at reduced volume levels Entered the new pool season with leaner channel inventory levels Strengthened the business; well positioned for long-term profitable growth Updated full year guidance lar
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.