Hayward Holdings Announces Fourth Quarter and Full Year 2022 Financial Results
Hayward Holdings reported a 27% decline in net sales for Q4 FY2022, totaling $259 million, attributed to lower volumes and macroeconomic uncertainties. Net income fell 75% to $16 million, while adjusted EBITDA dropped 50% to $53.3 million. Despite a 6% decrease in full-year sales at $1.314 billion, GAAP diluted EPS rose 59% to $0.78. The company initiated cost reduction measures aimed at saving $25-$30 million in 2023. Looking ahead, Hayward expects Q1 2023 net sales to decrease by 18% to 22% and adjusted EBITDA to be $265-$285 million.
- GAAP diluted EPS increased by 59% year-over-year to $0.78 for FY2022.
- Cost optimization program projected to save $25-$30 million in 2023.
- Q4 FY2022 net sales decreased by 27% year-over-year.
- Net income for Q4 FY2022 decreased by 75% year-over-year.
- Adjusted EBITDA decreased by 50% year-over-year in Q4 FY2022.
- 2023 guidance anticipates a decrease in net sales by 18%-22%.
FOURTH QUARTER FISCAL 2022 SUMMARY
-
Net Sales decreased27% year-over-year to$259.0 million -
Net Income decreased
75% year-over-year to$16.0 million -
Adjusted EBITDA decreased
50% year-over-year to$53.3 million -
GAAP diluted EPS decreased
72% year-over-year to$0.07 -
Adjusted diluted EPS decreased
61% year-over-year to$0.11
FULL FISCAL YEAR 2022 HIGHLIGHTS
-
Net Sales decreased6% year-over-year to$1,314.1 million -
Net Income decreased
12% year-over-year to$179.3 million -
Adjusted EBITDA decreased
13% year-over-year to$367.6 million -
GAAP diluted EPS increased
59% year-over-year to$0.78 -
Adjusted diluted EPS decreased
28% year-over-year to$0.98
CEO COMMENTS
“Our fourth quarter performance was consistent with expectations, reflecting the continued reduction of channel inventory days on hand,” said
FOURTH QUARTER FISCAL 2022 CONSOLIDATED RESULTS
Net sales decreased by
Gross profit decreased by
Selling, general, and administrative (“SG&A”) expenses remained relatively consistent at
Operating income decreased by
Interest expense, net, increased by approximately
Income tax expense for the fourth quarter of fiscal 2022 was
Net income decreased by
Adjusted EBITDA decreased by
Diluted GAAP EPS decreased by
FOURTH QUARTER FISCAL 2022 SEGMENT RESULTS
Net sales decreased by
Segment income decreased by
Net sales decreased by
Segment income decreased by
FULL FISCAL YEAR 2022 CONSOLIDATED RESULTS
Net sales decreased by
Gross profit decreased by
Operating income decreased by
Net income decreased by
Adjusted EBITDA decreased by
Diluted GAAP EPS increased by
BALANCE SHEET AND CASH FLOW
As of
COST OPTIMIZATION PROGRAM
During the year ended
OUTLOOK
The pool industry remains attractive and continues to benefit from sustainable secular demand trends in outdoor living. Hayward continues to leverage our competitive advantages and drive increasing adoption of our leading SmartPad™ pool equipment products both in new construction and the aftermarket, which represents approximately
Hayward is introducing 2023 guidance that reflects more challenging macroeconomic conditions and consequently an additional reduction of channel inventory levels. For fiscal year 2023, Hayward expects net sales to decrease
Please see the Forward-Looking Statements section of this release for a discussion of certain risks relevant to Hayward’s outlook.
SHARE REPURCHASE PROGRAM
For the twelve months ended
CONFERENCE CALL INFORMATION
Hayward will hold a conference call to discuss the results today,
To access the live conference call, please register for the call in advance by visiting https://www.netroadshow.com/events/login?show=20c7f7a9&confId=46452. Registration will also be available during the call. After registering, a confirmation e-mail will be sent including dial-in details and a unique access code for entry. To ensure you are connected for the full call please register at least 10 minutes before the start of the call.
Interested investors and other parties can also listen to a webcast of the live conference call by logging onto the Investor Relations section of the company's website at https://investor.hayward.com/events-and-presentations/default.aspx. An earnings presentation will be posted to the Investor Relations section of the company’s website prior to the conference call.
For those unable to listen to the live conference call, a replay will be available approximately two hours after the call through the archived webcast on the Hayward website or by dialing (866) 813-9403 or (44) 204-525-0658. The access code for the replay is 729609. The replay will be available until
ABOUT
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain statements that are “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 (the “Act”) and releases issued by the
Examples of forward-looking statements include, among others, statements Hayward makes regarding: Hayward’s 2023 guidance; SG&A cost savings; financial position; business plans and objectives; general economic and industry trends; business prospects; future product development and acquisition strategies; growth and expansion opportunities; operating results; and working capital and liquidity. The forward-looking statements in this earnings release are only predictions. Hayward may not achieve the plans, intentions or expectations disclosed in Hayward’s forward-looking statements, and you should not place significant reliance on its forward-looking statements. Hayward has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. Moreover, neither Hayward nor any other person assumes responsibility for the accuracy and completeness of forward-looking statements taken from third-party industry and market reports.
Important factors that could affect Hayward’s future results and could cause those results or other outcomes to differ materially from those indicated in its forward-looking statements include the following: its relationships with and the performance of distributors, builders, buying groups, retailers and servicers who sell Hayward’s products to pool owners; impacts on Hayward’s business from the sensitivity of its business to seasonality and unfavorable economic business and weather conditions; competition from national and global companies, as well as lower-cost manufacturers; Hayward’s ability to develop, manufacture and effectively and profitably market and sell its new planned and future products; its ability to execute on its growth strategies and expansion opportunities; impacts on Hayward’s business from political, regulatory, economic, trade, and other risks associated with operating foreign businesses, including risks associated with geopolitical conflict; its ability to maintain favorable relationships with suppliers and manage disruptions to its global supply chain and the availability of raw materials, including as a result of the COVID-19 pandemic; Hayward’s ability to identify emerging technological and other trends in its target end markets; failure of markets to accept new product introductions and enhancements; the ability to successfully identify, finance, complete and integrate acquisitions; its reliance on information technology systems and susceptibility to threats to those systems, including cybersecurity threats, and risks arising from its collection and use of personal information data; regulatory changes and developments affecting Hayward’s current and future products; volatility in currency exchange rates and interest rates; Hayward’s ability to service its existing indebtedness and obtain additional capital to finance operations and its growth opportunities; Hayward’s ability to establish and maintain intellectual property protection for its products, as well as its ability to operate its business without infringing, misappropriating or otherwise violating the intellectual property rights of others; the impact of material cost and other inflation; Hayward’s ability to attract and retain senior management and other qualified personnel; the impact of changes in laws, regulations and administrative policy, including those that limit
Many of these factors are macroeconomic in nature and are, therefore, beyond Hayward’s control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, Hayward’s actual results, performance or achievements may vary materially from those described in this earnings release as anticipated, believed, estimated, expected, intended, planned or projected. The forward-looking statements included in this earnings release are made only as of the date of this earnings release. Unless required by
NON-GAAP FINANCIAL MEASURES
This earnings release includes certain financial measures not presented in accordance with the generally accepted accounting principles in
Reconciliation of fiscal 2022 adjusted EBITDA guidance is not being provided, as Hayward does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation.
|
||||||||
|
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
56,177 |
|
|
$ |
265,796 |
|
Accounts receivable, net of allowances of |
|
|
209,109 |
|
|
|
208,112 |
|
Inventories, net |
|
|
283,658 |
|
|
|
233,449 |
|
Prepaid expenses |
|
|
14,981 |
|
|
|
12,459 |
|
Income tax receivable |
|
|
27,173 |
|
|
|
— |
|
Other current assets |
|
|
21,186 |
|
|
|
30,705 |
|
Total current assets |
|
|
612,284 |
|
|
|
750,521 |
|
Property, plant, and equipment, net of accumulated depreciation of |
|
|
149,828 |
|
|
|
146,754 |
|
|
|
|
932,396 |
|
|
|
924,264 |
|
Trademark |
|
|
736,000 |
|
|
|
736,000 |
|
Customer relationships, net |
|
|
230,503 |
|
|
|
242,854 |
|
Other intangibles, net |
|
|
106,673 |
|
|
|
103,192 |
|
Other non-current assets |
|
|
107,329 |
|
|
|
74,885 |
|
Total assets |
|
$ |
2,875,013 |
|
|
$ |
2,978,470 |
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Current portion of the long-term debt |
|
$ |
14,531 |
|
|
$ |
12,155 |
|
Accounts payable |
|
|
54,022 |
|
|
|
87,445 |
|
Accrued expenses and other liabilities |
|
|
163,283 |
|
|
|
190,378 |
|
Income taxes payable |
|
|
574 |
|
|
|
13,886 |
|
Total current liabilities |
|
|
232,410 |
|
|
|
303,864 |
|
Long-term debt, net |
|
|
1,085,055 |
|
|
|
973,124 |
|
Deferred tax liabilities, net |
|
|
264,111 |
|
|
|
262,378 |
|
Other non-current liabilities |
|
|
70,403 |
|
|
|
69,591 |
|
Total liabilities |
|
|
1,651,979 |
|
|
|
1,608,957 |
|
|
|
|
|
|
||||
Stockholders' equity |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
241 |
|
|
|
238 |
|
Additional paid-in capital |
|
|
1,069,878 |
|
|
|
1,058,724 |
|
Common stock in treasury; 28,666,369 and 5,375,417 at |
|
|
(357,415 |
) |
|
|
(14,066 |
) |
Retained earnings |
|
|
500,222 |
|
|
|
320,875 |
|
Accumulated other comprehensive income |
|
|
10,108 |
|
|
|
3,742 |
|
Total stockholders' equity |
|
|
1,223,034 |
|
|
|
1,369,513 |
|
Total liabilities, redeemable stock, and stockholders' equity |
|
$ |
2,875,013 |
|
|
$ |
2,978,470 |
|
|
||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
|
$ |
258,967 |
|
|
$ |
352,385 |
|
|
$ |
1,314,136 |
|
|
$ |
1,401,794 |
|
Cost of sales |
|
|
149,475 |
|
|
|
186,979 |
|
|
|
717,101 |
|
|
|
746,012 |
|
Gross profit |
|
|
109,492 |
|
|
|
165,406 |
|
|
|
597,035 |
|
|
|
655,782 |
|
Selling, general, and administrative expense |
|
|
60,515 |
|
|
|
60,135 |
|
|
|
248,812 |
|
|
|
267,264 |
|
Research, development, and engineering expense |
|
|
5,948 |
|
|
|
6,680 |
|
|
|
22,359 |
|
|
|
22,867 |
|
Acquisition and restructuring related (income) expense |
|
|
(1,337 |
) |
|
|
12,578 |
|
|
|
8,162 |
|
|
|
15,030 |
|
Amortization of intangible assets |
|
|
8,301 |
|
|
|
6,485 |
|
|
|
32,129 |
|
|
|
32,647 |
|
Operating income |
|
|
36,065 |
|
|
|
79,528 |
|
|
|
285,573 |
|
|
|
317,974 |
|
Interest expense, net |
|
|
16,282 |
|
|
|
8,557 |
|
|
|
51,387 |
|
|
|
50,854 |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,418 |
|
Other (income) expense, net |
|
|
(3,107 |
) |
|
|
(7,094 |
) |
|
|
(51 |
) |
|
|
(2,439 |
) |
Total other expense |
|
|
13,175 |
|
|
|
1,463 |
|
|
|
51,336 |
|
|
|
57,833 |
|
Income from operations before income taxes |
|
|
22,890 |
|
|
|
78,065 |
|
|
|
234,237 |
|
|
|
260,141 |
|
Provision for income taxes |
|
|
6,922 |
|
|
|
14,344 |
|
|
|
54,890 |
|
|
|
56,416 |
|
Net income |
|
$ |
15,968 |
|
|
$ |
63,721 |
|
|
$ |
179,347 |
|
|
$ |
203,725 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.08 |
|
|
$ |
0.27 |
|
|
$ |
0.82 |
|
|
$ |
0.52 |
|
Diluted |
|
$ |
0.07 |
|
|
$ |
0.26 |
|
|
$ |
0.78 |
|
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
211,406,214 |
|
|
|
232,454,438 |
|
|
|
219,945,024 |
|
|
|
187,688,087 |
|
Diluted |
|
219,958,655 |
|
|
244,514,387 |
|
|
229,726,497 |
|
|
200,574,232 |
|||||
|
|
Year Ended |
||||||
|
|
|
|
|||||
Cash flows from operating activities |
|
|
|
|
||||
Net income |
|
$ |
179,347 |
|
|
$ |
203,725 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
||||
Depreciation |
|
|
19,246 |
|
|
|
18,826 |
|
Amortization of intangible assets |
|
|
38,393 |
|
|
|
38,990 |
|
Amortization of deferred debt issuance fees |
|
|
3,271 |
|
|
|
4,005 |
|
Stock-based compensation |
|
|
7,948 |
|
|
|
15,005 |
|
Deferred income taxes |
|
|
(5,345 |
) |
|
|
(15,314 |
) |
Allowance for bad debts |
|
|
1,934 |
|
|
|
644 |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
9,418 |
|
Loss on write-off of intangible assets |
|
|
— |
|
|
|
6,319 |
|
Loss on disposal of property, plant and equipment |
|
|
6,128 |
|
|
|
4,219 |
|
Changes in operating assets and liabilities |
|
|
|
|
||||
Accounts receivable |
|
|
(3,409 |
) |
|
|
(70,115 |
) |
Inventories |
|
|
(35,117 |
) |
|
|
(89,660 |
) |
Other current and non-current assets |
|
|
(40,197 |
) |
|
|
(17,161 |
) |
Accounts payable |
|
|
(36,773 |
) |
|
|
18,365 |
|
Accrued expenses and other liabilities |
|
|
(19,482 |
) |
|
|
62,121 |
|
Net cash provided by operating activities |
|
|
115,944 |
|
|
|
189,387 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Purchases of property, plant, and equipment |
|
|
(29,625 |
) |
|
|
(26,222 |
) |
Purchases of intangibles |
|
|
— |
|
|
|
(914 |
) |
Acquisitions, net of cash acquired |
|
|
(62,952 |
) |
|
|
(21,509 |
) |
Proceeds from sale of property, plant, and equipment |
|
|
4 |
|
|
|
25 |
|
Proceeds from settlements of investment currency hedge |
|
|
— |
|
|
|
(157 |
) |
Net cash used in investing activities |
|
|
(92,573 |
) |
|
|
(48,777 |
) |
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Proceeds from issuance of common stock - Initial Public Offering |
|
|
— |
|
|
|
377,400 |
|
Costs associated with Initial Public Offering |
|
|
— |
|
|
|
(26,124 |
) |
Purchase of common stock for treasury |
|
|
(343,349 |
) |
|
|
(9,524 |
) |
Proceeds from issuance of long-term debt |
|
|
129,725 |
|
|
|
51,659 |
|
Debt issuance costs |
|
|
(8,547 |
) |
|
|
(12,551 |
) |
Payments of long-term debt |
|
|
(10,445 |
) |
|
|
(369,644 |
) |
Proceeds from revolving credit facility |
|
|
150,000 |
|
|
|
68,000 |
|
Payments on revolving credit facility |
|
|
(150,000 |
) |
|
|
(68,000 |
) |
Proceeds from issuance of short term debt |
|
|
8,119 |
|
|
|
— |
|
Payments of short term debt |
|
|
(5,063 |
) |
|
|
— |
|
Other, net |
|
|
320 |
|
|
|
(259 |
) |
Net cash (used in) provided by financing activities |
|
|
(229,240 |
) |
|
|
10,957 |
|
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
|
|
(3,750 |
) |
|
|
(1,065 |
) |
Change in cash and cash equivalents and restricted cash |
|
|
(209,619 |
) |
|
|
150,502 |
|
Cash and cash equivalents and restricted cash, beginning of period |
|
|
265,796 |
|
|
|
115,294 |
|
Cash and cash equivalents and restricted cash, end of period |
|
$ |
56,177 |
|
|
$ |
265,796 |
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information |
|
|
|
|
||||
Cash paid-interest |
|
$ |
51,499 |
|
|
$ |
46,763 |
|
Cash paid-income taxes |
|
|
99,395 |
|
|
|
62,467 |
|
Equipment financed under finance leases |
|
|
1,603 |
|
|
|
— |
|
Reconciliations
Consolidated Reconciliations
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations (Non-GAAP)
Following is a reconciliation from net income to adjusted EBITDA:
(Dollars in thousands) |
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
15,968 |
|
|
$ |
63,721 |
|
|
$ |
179,347 |
|
|
$ |
203,725 |
|
Depreciation |
|
|
5,315 |
|
|
|
4,730 |
|
|
|
19,246 |
|
|
|
18,826 |
|
Amortization |
|
|
9,956 |
|
|
|
8,087 |
|
|
|
38,393 |
|
|
|
38,990 |
|
Interest expense |
|
|
16,282 |
|
|
|
8,557 |
|
|
|
51,387 |
|
|
|
50,854 |
|
Income taxes |
|
|
6,922 |
|
|
|
14,344 |
|
|
|
54,890 |
|
|
|
56,416 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,418 |
|
EBITDA |
|
|
54,443 |
|
|
|
99,439 |
|
|
|
343,263 |
|
|
|
378,229 |
|
Stock-based compensation (a) |
|
|
354 |
|
|
|
2,636 |
|
|
|
1,602 |
|
|
|
19,019 |
|
Sponsor management fees (b) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
90 |
|
Currency exchange items (c) |
|
|
(1,850 |
) |
|
|
106 |
|
|
|
926 |
|
|
|
4,485 |
|
Acquisition and restructuring related expense, net (d) |
|
|
(1,337 |
) |
|
|
12,578 |
|
|
|
8,162 |
|
|
|
15,030 |
|
Other (e) |
|
|
1,652 |
|
|
|
(9,056 |
) |
|
|
13,622 |
|
|
|
4,884 |
|
Total Adjustments |
|
|
(1,181 |
) |
|
|
6,264 |
|
|
|
24,312 |
|
|
|
43,508 |
|
Adjusted EBITDA |
|
$ |
53,262 |
|
|
$ |
105,703 |
|
|
$ |
367,575 |
|
|
$ |
421,737 |
|
Adjusted EBITDA margin |
|
|
20.6 |
% |
|
|
30.0 |
% |
|
|
28.0 |
% |
|
|
30.1 |
% |
(a) |
|
Represents non-cash stock-based compensation expense related to equity awards issued to management, employees, and directors. Beginning in the three months ended |
(b) |
|
Represents fees paid to certain of the Company’s controlling stockholders for services rendered pursuant to a 2017 management services agreement. This agreement and the corresponding payment obligation ceased on |
(c) |
|
Represents unrealized non-cash losses (gains) on foreign denominated monetary assets and liabilities and foreign currency contracts. |
(d) |
|
Adjustments in the fiscal quarter ended
Adjustments in the fiscal quarter ended |
|
|
Adjustments in the year ended |
|
|
Adjustments in the year ended |
(e) |
|
Adjustments in the fiscal quarter ended
|
|
|
Adjustments in the year ended |
|
|
Adjustments in the year ended |
Adjusted Net Income and Adjusted EPS Reconciliation (Non-GAAP)
Following is a reconciliation of net income to adjusted net income and earnings per share to adjusted earnings per share:
(Dollars in thousands, except per share data) |
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
15,968 |
|
|
$ |
63,721 |
|
|
$ |
179,347 |
|
|
$ |
203,725 |
|
Tax adjustments (a) |
|
|
1,164 |
|
|
|
(6,799 |
) |
|
|
(2,676 |
) |
|
|
(6,799 |
) |
Other adjustments and amortization: |
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation (b) |
|
|
354 |
|
|
|
2,636 |
|
|
|
1,602 |
|
|
|
19,019 |
|
Sponsor management fees (c) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
90 |
|
Currency exchange items (d) |
|
|
(1,850 |
) |
|
|
106 |
|
|
|
926 |
|
|
|
4,485 |
|
Acquisition and restructuring related expense, net (e) |
|
|
(1,337 |
) |
|
|
12,578 |
|
|
|
8,162 |
|
|
|
15,030 |
|
Other (f) |
|
|
1,652 |
|
|
|
(9,056 |
) |
|
|
13,622 |
|
|
|
4,884 |
|
Total other adjustments |
|
|
(1,181 |
) |
|
|
6,264 |
|
|
|
24,312 |
|
|
|
43,508 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,418 |
|
Amortization |
|
|
9,956 |
|
|
|
8,087 |
|
|
|
38,393 |
|
|
|
38,990 |
|
Tax effect (g) |
|
|
(2,207 |
) |
|
|
(3,887 |
) |
|
|
(15,379 |
) |
|
|
(22,519 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Certain transactional-related adjustments (h): |
|
|
|
|
|
|
|
|
||||||||
Interest savings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,443 |
|
Acquisitions |
|
|
— |
|
|
|
744 |
|
|
|
2,761 |
|
|
|
3,823 |
|
Tax effect (g) |
|
|
— |
|
|
|
(151 |
) |
|
|
(678 |
) |
|
|
(2,774 |
) |
Adjusted net income |
|
$ |
23,700 |
|
|
$ |
67,979 |
|
|
$ |
226,080 |
|
|
$ |
273,815 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding, basic |
|
|
211,406,214 |
|
|
|
232,454,438 |
|
|
|
219,945,024 |
|
|
|
187,688,087 |
|
Weighted average number of common shares outstanding, diluted |
|
|
219,958,655 |
|
|
|
244,514,387 |
|
|
|
229,726,497 |
|
|
|
200,574,232 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic EPS |
|
$ |
0.08 |
|
|
$ |
0.27 |
|
|
$ |
0.82 |
|
|
$ |
0.52 |
|
Diluted EPS |
|
$ |
0.07 |
|
|
$ |
0.26 |
|
|
$ |
0.78 |
|
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted basic EPS (i) |
|
$ |
0.11 |
|
|
$ |
0.29 |
|
|
|
1.03 |
|
|
|
1.46 |
|
Adjusted diluted EPS (i) |
|
$ |
0.11 |
|
|
$ |
0.28 |
|
|
|
0.98 |
|
|
|
1.37 |
|
(a) |
|
Tax adjustments for the three and twelve months ended |
(b) |
|
Represents non-cash stock-based compensation expense related to equity awards issued to management, employees, and directors. Beginning in the three months ended |
(c) |
|
Represents fees paid to certain of the Company’s controlling stockholders for services rendered pursuant to a 2017 management services agreement. This agreement and the corresponding payment obligation ceased on |
(d) |
|
Represents unrealized non-cash losses (gains) on foreign denominated monetary assets and liabilities and foreign currency contracts. |
(e) |
|
Adjustments in the fiscal quarter ended |
|
|
Adjustments in the fiscal quarter ended |
|
|
Adjustments in the year ended |
|
|
Adjustments in the year ended |
(f) |
|
Adjustments in the fiscal quarter ended |
|
|
Adjustments in the fiscal quarter ended |
|
|
Adjustments in the year ended |
|
|
Adjustments in the year ended |
(g) |
|
The tax effect represents the immediately preceding adjustments at the normalized tax rates as discussed in footnote (a) above. |
(h) |
|
The adjustments for the three and twelve months ended |
(i) |
|
For the twelve months ended |
Segment Reconciliations
Following is a reconciliation from income from operations before income taxes to consolidated segment income and segment income to adjusted segment income for the
(Dollars in thousands) |
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||
|
|
Total |
|
NAM |
|
E&RW |
|
Total |
|
NAM |
|
E&RW |
||||||||||||
Net sales |
|
$ |
258,967 |
|
|
$ |
216,809 |
|
|
$ |
42,158 |
|
|
$ |
352,385 |
|
|
$ |
297,574 |
|
|
$ |
54,811 |
|
Gross profit |
|
|
109,492 |
|
|
|
93,130 |
|
|
|
16,362 |
|
|
|
165,406 |
|
|
|
142,197 |
|
|
|
23,209 |
|
Gross profit margin % |
|
|
42.3 |
% |
|
|
43.0 |
% |
|
|
38.8 |
% |
|
|
46.9 |
% |
|
|
47.8 |
% |
|
|
42.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from operations before income taxes |
|
$ |
22,890 |
|
|
|
|
|
|
$ |
78,065 |
|
|
|
|
|
||||||||
Expenses not allocated to segments |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate expense, net |
|
|
6,142 |
|
|
|
|
|
|
|
15,642 |
|
|
|
|
|
||||||||
Acquisition and restructuring related expense |
|
|
(1,337 |
) |
|
|
|
|
|
|
12,578 |
|
|
|
|
|
||||||||
Amortization of intangible assets in selling, general, and administrative expense |
|
|
8,301 |
|
|
|
|
|
|
|
6,485 |
|
|
|
|
|
||||||||
Interest expense, net |
|
|
16,282 |
|
|
|
|
|
|
|
8,557 |
|
|
|
|
|
||||||||
Loss on debt extinguishment |
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
|
||||||||
Other (income) expense, net |
|
|
(3,107 |
) |
|
|
|
|
|
|
(7,094 |
) |
|
|
|
|
||||||||
Segment income |
|
$ |
49,171 |
|
|
$ |
40,773 |
|
|
$ |
8,398 |
|
|
$ |
114,233 |
|
|
$ |
92,866 |
|
|
$ |
21,367 |
|
Segment income margin % |
|
|
19.0 |
% |
|
|
18.8 |
% |
|
|
19.9 |
% |
|
|
32.4 |
% |
|
|
31.2 |
% |
|
|
39.0 |
% |
Depreciation |
|
$ |
4,809 |
|
|
$ |
4,614 |
|
|
$ |
195 |
|
|
$ |
4,395 |
|
|
$ |
4,218 |
|
|
$ |
177 |
|
Amortization |
|
|
1,656 |
|
|
|
1,656 |
|
|
|
— |
|
|
|
1,612 |
|
|
|
1,611 |
|
|
|
1 |
|
Stock-based compensation (a) |
|
|
(617 |
) |
|
|
(566 |
) |
|
|
(51 |
) |
|
|
1,327 |
|
|
|
1,323 |
|
|
|
4 |
|
Other (b) |
|
|
568 |
|
|
|
716 |
|
|
|
(148 |
) |
|
|
(2,043 |
) |
|
|
3,114 |
|
|
|
(5,157 |
) |
Total adjustments |
|
|
6,416 |
|
|
|
6,420 |
|
|
|
(4 |
) |
|
|
5,291 |
|
|
|
10,266 |
|
|
|
(4,975 |
) |
Adjusted segment income |
|
$ |
55,587 |
|
|
$ |
47,193 |
|
|
$ |
8,394 |
|
|
$ |
119,524 |
|
|
$ |
103,132 |
|
|
$ |
16,392 |
|
Adjusted segment income margin % |
|
|
21.5 |
% |
|
|
21.8 |
% |
|
|
19.9 |
% |
|
|
33.9 |
% |
|
|
34.7 |
% |
|
|
29.9 |
% |
(a) |
|
Represents non-cash stock-based compensation expense related to equity awards issued to management, employees, and directors. Beginning in the three months ended |
(b) |
|
Adjustments in the fiscal quarter ended |
|
|
Adjustments in the fiscal quarter ended |
(Dollars in thousands) |
|
Twelve Months Ended |
|
Twelve Months Ended |
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||
|
|
Total |
|
NAM |
|
E&RW |
|
Total |
|
NAM |
|
E&RW |
||||||||||||
Net sales |
|
$ |
1,314,136 |
|
|
$ |
1,108,859 |
|
|
$ |
205,277 |
|
|
$ |
1,401,794 |
|
|
$ |
1,160,850 |
|
|
$ |
240,944 |
|
Gross profit |
|
|
597,035 |
|
|
|
514,855 |
|
|
|
82,180 |
|
|
|
655,782 |
|
|
|
558,950 |
|
|
|
96,832 |
|
Gross profit margin % |
|
|
45.4 |
% |
|
|
46.4 |
% |
|
|
40.0 |
% |
|
|
46.8 |
% |
|
|
48.2 |
% |
|
|
40.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from operations before income taxes |
|
$ |
234,237 |
|
|
|
|
|
|
$ |
260,141 |
|
|
|
|
|
||||||||
Expenses not allocated to segments |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate expense, net |
|
|
30,151 |
|
|
|
|
|
|
|
53,430 |
|
|
|
|
|
||||||||
Acquisition and restructuring related expense |
|
|
8,162 |
|
|
|
|
|
|
|
15,030 |
|
|
|
|
|
||||||||
Amortization of intangible assets in selling, general, and administrative expense |
|
|
32,129 |
|
|
|
|
|
|
|
32,647 |
|
|
|
|
|
||||||||
Interest expense, net |
|
|
51,387 |
|
|
|
|
|
|
|
50,854 |
|
|
|
|
|
||||||||
Loss on debt extinguishment |
|
|
— |
|
|
|
|
|
|
|
9,418 |
|
|
|
|
|
||||||||
Other (income) expense, net |
|
|
(51 |
) |
|
|
|
|
|
|
(2,439 |
) |
|
|
|
|
||||||||
Segment income |
|
$ |
356,015 |
|
|
$ |
308,627 |
|
|
$ |
47,388 |
|
|
$ |
419,081 |
|
|
$ |
359,886 |
|
|
$ |
59,195 |
|
Segment income margin % |
|
|
27.1 |
% |
|
|
27.8 |
% |
|
|
23.1 |
% |
|
|
29.9 |
% |
|
|
31.0 |
% |
|
|
24.6 |
% |
Depreciation |
|
$ |
17,815 |
|
|
$ |
17,049 |
|
|
$ |
766 |
|
|
$ |
17,891 |
|
|
$ |
16,871 |
|
|
$ |
1,020 |
|
Amortization |
|
|
6,265 |
|
|
|
6,265 |
|
|
|
— |
|
|
|
6,352 |
|
|
|
6,351 |
|
|
|
1 |
|
Stock-based compensation (a) |
|
|
(434 |
) |
|
|
(494 |
) |
|
|
60 |
|
|
|
9,231 |
|
|
|
8,641 |
|
|
|
590 |
|
Other (b) |
|
|
9,534 |
|
|
|
9,332 |
|
|
|
202 |
|
|
|
4,948 |
|
|
|
4,665 |
|
|
|
283 |
|
Total adjustments |
|
|
33,180 |
|
|
|
32,152 |
|
|
|
1,028 |
|
|
|
38,422 |
|
|
|
36,528 |
|
|
|
1,894 |
|
Adjusted segment income |
|
$ |
389,195 |
|
|
$ |
340,779 |
|
|
$ |
48,416 |
|
|
$ |
457,503 |
|
|
$ |
396,414 |
|
|
$ |
61,089 |
|
Adjusted segment income margin % |
|
|
29.6 |
% |
|
|
30.7 |
% |
|
|
23.6 |
% |
|
|
32.6 |
% |
|
|
34.1 |
% |
|
|
25.4 |
% |
(a) |
|
Represents non-cash stock-based compensation expense related to equity awards issued to management, employees, and directors. Beginning in the three months ended |
(b) |
|
Adjustments in the year ended |
|
|
Adjustments in the year ended |
|
|
Adjustments in the year ended |
|
|
Adjustments in the year ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230228005470/en/
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Investor Relations:
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Source:
FAQ
What were Hayward's Q4 2022 earnings results for stock symbol HAYW?
How did Hayward perform for the fiscal year 2022?
What is Hayward's outlook for fiscal year 2023?
What factors contributed to Hayward's decline in sales?