Hayward Holdings, Inc. · NYSE:HAYW
Hayward — Q1 2024 Earnings Presentation
23 slides from Hayward's earnings presentation, May 2, 2024
Slide 1: First Quarter 2024 Earnings
FIRST QUARTER 2024 EARNINGS May 2, 2024 © 2024 Hayward Holdings, Inc.
Slide 2: First Quarter 2024 Earnings Call
FIRST 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 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 Q1 2024 results in line with expectations Delivered strong gross profit margin expansion Launched new products in high-growth robotic cleaner category Completed a voluntary early debt repayment subsequent to quarter end Reaffirmed full year 2024 guidance © 2024 Hayward Holdings
Slide 5: Financial Overview
Financial Overview RESULTS REFLECT: • Net sales of $212.6M ▪ Solid execution • Gross profit margin of 49.2% ▪ Modest increases in net price Q1 2024 • Adj. EBITDA1 of $45.0M and volume • Adj. EBITDA margin1 of 21.2% ▪ Strong gross profit margin expansion, • Adj. diluted EPS1 of $0.08 matching the qua
Slide 6: Business Update
Business Update END DEMAND EUROPEAN FOOTPRINT CONSOLIDATION ✓ Resilient aftermarket maintenance ✓ Better utilizing our new/modern facility in Barcelona ✓ Discretionary spending impacted by economic and ✓ Delayed shipments in Q1; achieving full production rates in Q2 interest rate environment CHANNEL
Slide 7: New Products for Second Quarter 2024
New Products for Second Quarter 2024 NEW Robotic Cleaners: R110 & R130 R110 R130 User Interface ✓ Floor/Wall Cleaning ✓ Floor/Wall/Waterline Cleaning ✓ Programmable ✓ Smart Navigation ✓ Active, Dual Brush Scrubbing ✓ Daily/Weekly Schedules ✓ Interchangeable Filters ✓ Smart Navigation, Cord Swivel ✓
Slide 8: First Quarter 2024 Financials
First Quarter 2024 Financials NET SALES +1.2% YoY ▪ Net price +0.6% NET SALES OF $212.6M ▪ Volume +0.5% ▪ F/X +0.1% GROSS PROFIT MARGIN OF 49.2%; INCREASED 260 BPS YoY GROSS PROFIT OF $104.6M ▪ Strong execution, increased operational efficiencies ▪ Positive price realization offsetting inflation ADJ
Slide 9: First Quarter 2024 Segment Overview
First Quarter 2024 Segment Overview NORTH AMERICA EUROPE & REST OF WORLD NET SALES GROSS PROFIT ADJ. SEGMENT INCOME1 NET SALES GROSS PROFIT ADJ. SEGMENT INCOME1 $173.4M $89.9M $45.3M $39.1M $14.7M $6.3M YoY Change: Gross Profit Margin: Adj. Segment YoY Change: Gross Profit Margin: Adj. Segment +6.6%
Slide 10: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights BALANCE SHEET ($M) CASH FLOW ($M) 3/30/2024 Q1 2024 Q1 2023 Cash and cash equivalents $116 $600M fixed rate, Cash flow used in operating activities ($77) ($91) remainder variable Total debt principal $1,110 Blended interest Less capex ($6) ($6) rate of 6.7%4 Te
Slide 11: 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 12: Unchanged FY 2024 Financial Outlook
Unchanged FY 2024 Financial Outlook Net sales of $1.010B to $1.060B, Adjusted EBITDA1 of OUTLOOK REFLECTS: up ~2% to 7% $255M to $275M ▪ Uncertain macro conditions Seasonality expectations Free cash flow1 of ~$160M, ▪ Resilient aftermarket maintenance • Normal seasonal strength in Q2 & Q4 >100% of n
Slide 13: Key Messages
Key Messages Reported Q1 2024 results in line with expectations Delivered strong gross profit margin expansion Launched new products in high-growth robotic cleaner category Completed a voluntary early debt repayment subsequent to quarter end Reaffirmed full year 2024 guidance © 2024 Hayward Holdings
Slide 14: Company Overview
COMPANY OVERVIEW © 2024 Hayward Holdings, Inc. 14
Slide 15: 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 16: 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 17: 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 18: Appendix: Non-GAAP Reconciliations
APPENDIX APPENDIX Non-GAAP Reconciliations Non-GAAP Reconciliations © 2024 Hayward Holdings, Inc. 18
Slide 19: Adjusted EBITDA & Adjusted EBITDA Margin Three Months Ended
Adjusted EBITDA & Adjusted EBITDA Margin Three Months Ended Reconciliation APPENDIX © 2024 Hayward Holdings, Inc. 19
Slide 20: Adjusted EBITDA & Adjusted EBITDA Margin Last Twelve Months
Adjusted EBITDA & Adjusted EBITDA Margin Last Twelve Months Reconciliation APPENDIX © 2024 Hayward Holdings, Inc. 20
Slide 21: Adjusted Net Income & Adjusted EPS Reconciliation
Adjusted Net Income & Adjusted EPS Reconciliation APPENDIX © 2024 Hayward Holdings, Inc. 21
Slide 22: Adjusted Segment Income Reconciliation
Adjusted Segment Income Reconciliation APPENDIX © 2024 Hayward Holdings, Inc. 22
Slide 23: Thank You
THANK YOU © 2024 Hayward Holdings, Inc. 23