Q2 2024 Latham Group Inc Earnings Call Transcript
Key Points
- Latham Group Inc (SWIM) increased its adjusted EBITDA guidance for full year 2024 by $15 million, reflecting strong profitability gains.
- The company achieved a 400 basis point year-over-year increase in adjusted EBITDA margin despite lower sales volumes.
- Latham Group Inc (SWIM) completed an accretive acquisition of Coverstar Central, expected to expand margins and accelerate sales.
- Fiberglass pools showed relative strength, gaining market share due to cost efficiency, fast installation, and eco-friendly advantages.
- The company maintained a strong financial position with $90.8 million in cash and a net debt leverage ratio of 2.1 times.
- Net sales for the second quarter were down 9.6% year-over-year, reflecting challenging macroeconomic conditions.
- In-ground pool sales declined 10.6%, liners declined 7.2%, and covers were down 11.3% in the second quarter.
- The company is facing a forecasted 15% decline in new pool starts for 2024, impacting overall sales.
- Year-over-year comparisons are expected to become more difficult as the year progresses due to better performance in the second half of 2023.
- Despite strong interest in pools, consumer purchases remain delayed, with many potential buyers on the sidelines.
Good afternoon and welcome to the Latham Group second quarter 2024 earnings conference call. (Operator instructions)
I would now like to turn the conference over to Casey Kotary, Investor Relations Representative. Please go ahead.
Thank you. This afternoon. We issued our second quarter 2024 earnings press release, which is available on the Investor Relations portion of our website where you can also find the slide presentation that accompanies our prepared remarks. On today's call are Latham's President and COO, Scott Rajeski, and CFO, Oliver Gloe. Following their remarks, we will open the call to questions.
During this call, the company may make certain statements that constitute forward-looking statements, which reflect the company's views with respect to future events and financial performance as of today or the date specified. Actual events and results may differ materially from those contemplated by such forward-looking statements due to risks and other factors that are
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
