Latham Group, Inc. (NASDAQ: SWIM), a prominent designer, manufacturer, and marketer of in-ground residential swimming pools, disclosed its financial outcomes for the fiscal third quarter concluded on September 28, 2024, in an 8-K filing with the Securities and Exchange Commission on November 5, 2024.
In the third quarter, Latham Group posted net sales of $150.5 million, exhibiting a decline of $10.3 million or 6.4% in comparison to the prior year’s third quarter. The drop in sales volumes was attributed to persisting soft industry conditions and a challenging macroeconomic environment.
The selling, general, and administrative expenses climbed to $28.3 million, marking a 20.9% increase from the third quarter of 2023, primarily due to amplified spending on sales and marketing efforts and the acquisition of Coverstar Central.
Net income for the quarter was $5.9 million, corresponding to $0.05 per diluted share. This was slightly lower than the prior year’s third quarter net income of $6.2 million or $0.05 per diluted share.
Adjusted EBITDA for the third quarter of 2024 amounted to $29.8 million, down by 17.3% from $36.1 million in the same period in 2023. The Adjusted EBITDA margin was reported at 19.8%, a decrease from 22.4% in the comparable prior-year quarter.
For the first nine months of 2024, Latham Group reported net sales of $421.2 million, declining by $54.4 million or 11.4% from the prior year due to lower sales volume stemming from continued macroeconomic weakness. Despite this, gross margin expanded to 31.4%, reflecting productivity gains and cost containment measures.
With a focus on increasing market share and driving future growth through strategic initiatives, Latham Group expressed a narrowed full-year 2024 guidance for net sales and Adjusted EBITDA to account for the conclusion of the pool building season and potential shipment disruptions from recent hurricanes.
The company ended the third quarter with $59.9 million in cash after acquiring Coverstar Central and repaying debt. Latham’s total debt stood at $282.8 million, resulting in a net debt leverage ratio of 2.6.
Latham Group’s strategic efforts are centered around capitalizing on its market leadership position and the adoption of initiatives to enhance its position within the industry.
The company’s conference call to discuss these financial results is scheduled for November 5, 2024, at 4:30 PM Eastern Time. Interested participants can join the call using the provided details or access the live audio webcast on the company’s investor relations website.
For further financial details and disclosures, refer to Latham Group’s Form 8-K filing with the SEC.
This news article is a summary based on the information available in Latham Group’s 8-K filing and is not an endorsement of investment decisions.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Latham Group’s 8K filing here.
Latham Group Company Profile
Latham Group, Inc designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names.
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