Latham Group, Inc. · NASDAQ:SWIM
Latham — Corporate Update (November 2024)
26 slides from Latham's corporate update, Nov 20, 2024
Slide 1: Latham Group Zephyrhills, FL Site Visit
Latham Group Zephyrhills, FL Site Visit November 20, 2024
Slide 2: Forward-looking Statements
Forward - looking Statements Certain statements in this presentation constitute forward - looking statements within the meaning of the Private Securities Litig ation Reform Act of 1995. All statements contained in this presentation other than statements of historical fact may constitute forward - lo
Slide 3: On-Site Agenda
On - Site Agenda President & CEO CFO Scott Rajeski Oliver Gloe Business & Financial Overview Director of Sales, Sand States Josh Rickaby Accelerating the Sand State Strategy Technical Field Specialist President & CEO, Concord Pools & Spas Director of Strategy, Concord Pools & Spas Wayne Hoban Jon Fo
Slide 4: Business & Financial Overview
Business & Financial Overview
Slide 5: Year-To-Date Accomplishments
5 Year - To - Date Accomplishments Completed accretive acquisition , paid for with cash on hand On track to outperform the market again in 2024 Increased investments to position Latham for future growth Continue to gain production efficiencies that have structurally changed our cost base Retained a
Slide 6: Sand State Strategy | Driving Fiberglass Adoption
28% 11% 11% 17% 33% Non - Sand States 24K Pools Florida 20K Pools Arizona 8K Pools California 12K Pools Texas 8K Pools 2023 Pool Starts by State (2) (1) 2023 PK Data (2) Estimated based on permit data (3) Latham Fiberglass pool share in the US 2023 Latham Fiberglass Poo ls (3) ~15% ~85% Sand State S
Slide 7: Sand State Strategy | Key Priorities
Sand State Strategy | Key Priorities 7 Expanding the Pool Dealer Base • Driving pool builder expansion and development • Opportunities to “stand up” new builders and convert concrete builders to Fiberglass Marketing to Consumers & Builders • Highlight Fiberglass benefits to consumers: faster install
Slide 8: Productivity Gains | Cost Structure
Productivity Gains | Cost Structure 8 $1 $1 $2 $2 $3 $4 $4 $6 $6 $3 $2 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Lean Manufacturing / Value Engineering Restructuring Drove Meaningful Cost Structure Improvements Since 2023 (in millions) $7 $7 $5 $4
Slide 9: Zephyrhills Productivity Gains | Lean Manufacturing & Value Engineering
Zephyrhills Productivity Gains | Lean Manufacturing & Value Engineering 9 Lean Manufacturing : Product Flow Value Engineering : Fabric Utilization Before Kaizen After Kaizen Lean Manufacturing improvements: • >50% reduction in shell travel time • Lower forklift / crane wear and tear • Improving oper
Slide 10: Latham Key Growth Drivers
10 Latham Key Growth Drivers Accelerating Fiberglass Share Gain in the Sand States along with ongoing market penetration 1 Continuing to Drive Awareness and Adoption of Automatic Safety Covers 2 Full Roll - Out of “Measure by Latham” for Pool Liners & Winter Covers 3 Our goal of continuing to outper
Slide 11: Impact of Growth Initiatives & Production Efficiencies
Impact of Growth Initiatives & Production Efficiencies 11 (1) Historical pool starts determined from PK Data; 2024 and beyond are based on management estimates. (2) Unaudited (3) Management model (4) 25 - year average (1999 - 2024) (5) See Appendix for reconciliation of Adjusted EBITDA. Adjusted EBI
Slide 12: Accelerating the Sand State Strategy
Accelerating the Sand State Strategy
Slide 13: Expanding Fiberglass Penetration
Converting Concrete Dealers to Fiberglass “Standing Up” New Dealers Increasing Productivity of Existing Dealers Expanding Fiberglass Penetration 13 • Engaging with existing dealers to provide training on productivity enhancement • Targeting to increase number of pools built per year, per dealer • Re
Slide 14: Marketing to Consumers & Builders
Marketing to Consumers & Builders 14 Marketing to Consumers & Builders • Fiberglass benefits to consumers : faster installation, lower cost of ownership than concrete • Fiberglass benefits to builders : more profitable, faster to scale than concrete • New Fiberglass marketing campaign – “Get Out Of
Slide 15: Targeting FL and TX Master Planned Communities
Targeting FL and TX Master Planned Communities 15 Sand State Master Planned Communities Present A Massive Growth Opportunity 2025 Focus: Babcock Ranch (FL) & Silverado (TX) Master Planned Community Silverleaf The Villages Viera Traditional Miranda Lakewood Ranch Babcock Ranch Ave Maria Wellen Park T
Slide 16: Building the Fiberglass Dealer Network: Dealer Training
Building the Fiberglass Dealer Network: Dealer Training
Slide 17: Benefits of Fiberglass Installation vs. Concrete
Benefits of Fiberglass Installation vs. Concrete 17 Control Over The Entire Installation Environment Not Reliant On Multiple Sub - Contractors Faster Installation From Start To Finish Vastly Improved Consumer Experience
Slide 18: Dealer Bootcamp | Training for Installation
Dealer Bootcamp | Training for Installation 18 Total 2024 (2) 2023 2022 2021 (1) 2020 Bootcamp 54 18 11 8 11 6 Number of Training Events 468 103 121 71 65 108 Fiberglass Bootcamps 188 51 34 54 34 15 Packaged Pool Bootcamps 656 154 155 125 99 123 Total Bootcamp Dealer Participants Hands - On Installa
Slide 19: Building the Fiberglass Dealer Network: A Conversation with A Dealer
Building the Fiberglass Dealer Network: A Conversation with A Dealer
Slide 20: Concord Pools & Spas
Achievements & Highlights • Ranked in the Top 1% of pool builders nationwide (1) • More than 100 Fiberglass pools installed per year • Vertically integrated business model; positioning for “portability” – growth beyond the New York market Company History • Established in 1972 • Headquartered in Lath
Slide 21: Partnering with Latham
Best Fiberglass Pools in the Market Benefits of Market Intelligence Leading Technological Innovation Partnering for Growth 21 Partnering with Latham • Latham’s Fiberglass pools are feature - rich with high - quality finishes and unmatched warranties • Real - time responsiveness from the industry’s l
Slide 22: Babcock Ranch
Babcock Ranch 22 About Babcock Key Highlights • Babcock Ranch is a Master Planned Community located in Southwest Florida • Targeting young millennials, growing families, empty nesters, and retirees • The site sits on 17K acres of land, and will ultimately include 19.5K homes, developed by 10 unique
Slide 23: Marketing Investment in Master Planned Communities
Marketing Investment in Master Planned Communities 23 Marketing Investment Marketing Activities • Sponsored events at Master Planned Communities • Showcases Fiberglass pool benefits • Reaches thousands of potential pool owners • Educational seminars, “Why Fiberglass?” • “GOOTSA” marketing campaign l
Slide 24: Q&A
Q&A
Slide 25: Appendix
Appendix Qotham Group SWIM | Nasdaq Listed
Slide 26: Adjusted EBITDA Reconciliation Footnotes
(a) Represents the cost of shutting down production and warehouse facilities in Decatur, Georgia and Mississauga, Ontario, Canada , i ncluding the cost to transfer and dispose of property and equipment and involuntary workforce reductions. Also includes severance and other costs for our executive ma