Hayward Holdings Announces Second Quarter Fiscal Year 2024 Financial Results and Narrows Full-Year Guidance Range
Hayward Holdings (NYSE: HAYW) reported strong Q2 fiscal 2024 results, with net sales increasing to $284.4 million and net income rising 28% year-over-year to $37.6 million. The company achieved record gross margins of 51.0%, up 290 basis points, driven by operational efficiencies and net price increases. Adjusted EBITDA grew 4% to $82.6 million, with margins expanding 100 basis points to 29.0%. Diluted EPS increased 31% to $0.17, while adjusted diluted EPS rose 11% to $0.21.
Hayward narrowed its full-year 2024 guidance, now expecting net sales of $1.010-$1.040 billion (2-5% growth) and Adjusted EBITDA of $255-$270 million (3-9% growth). The company completed a strategic acquisition of ChlorKing, expanding its commercial pool water sanitization offerings.
Hayward Holdings (NYSE: HAYW) ha riportato risultati solidi per il secondo trimestre dell'anno fiscale 2024, con vendite nette che sono aumentate a $284.4 milioni e un utile netto che è cresciuto del 28% rispetto all'anno precedente, raggiungendo i $37.6 milioni. L'azienda ha ottenuto margini lordi record del 51.0%, in crescita di 290 punti base, grazie a efficienze operative e aumenti dei prezzi netti. L'EBITDA rettificato è cresciuto del 4% a $82.6 milioni, con margini in espansione di 100 punti base fino al 29.0%. L'EPS diluito è aumentato del 31% a $0.17, mentre l'EPS diluito rettificato è salito dell'11% a $0.21.
Hayward ha ridotto le previsioni per l'intero anno 2024, ora prevedendo vendite nette di $1.010-$1.040 miliardi (crescita del 2-5%) e un EBITDA rettificato di $255-$270 milioni (crescita del 3-9%). L'azienda ha completato un'acquisizione strategica di ChlorKing, ampliando la sua offerta di sanificazione dell'acqua per piscine commerciali.
Hayward Holdings (NYSE: HAYW) reportó resultados sólidos para el segundo trimestre del año fiscal 2024, con ventas netas que aumentaron a $284.4 millones y un ingreso neto que creció un 28% interanual a $37.6 millones. La compañía logró márgenes brutos récord de 51.0%, subiendo 290 puntos básicos, impulsados por eficiencias operativas y aumentos de precios netos. El EBITDA ajustado creció un 4% hasta $82.6 millones, con márgenes que se expandieron 100 puntos básicos hasta el 29.0%. El EPS diluido aumentó un 31% a $0.17, mientras que el EPS diluido ajustado subió un 11% a $0.21.
Hayward ajustó su pronóstico para el año completo 2024, ahora espera ventas netas de $1.010-$1.040 mil millones (crecimiento del 2-5%) y un EBITDA ajustado de $255-$270 millones (crecimiento del 3-9%). La compañía completó una adquisición estratégica de ChlorKing, ampliando su oferta de sanitización del agua para piscinas comerciales.
헤이워드 홀딩스 (NYSE: HAYW)는 2024 회계연도 2분기 실적이 강력하게 보고되었습니다, 순매출이 2억 8440만 달러로 증가하고 순이익이 전년 대비 28% 증가한 3760만 달러에 이르렀습니다. 이 회사는 운영 효율성과 순가격 인상에 힘입어 최고의 총 마진 51.0%를 달성했습니다. 조정된 EBITDA는 4% 증가하여 8천 260만 달러에 달했으며, 마진은 100bp 증가하여 29.0%에 도달했습니다. 희석 주당순이익(EPS)은 31% 증가하여 0.17달러에 이르렀고, 조정된 희석 EPS는 11% 증가하여 0.21달러에 이르렀습니다.
헤이워드는 2024년 전체 연도 가이던스를 조정했으며, 현재 순매출을 10억 1000-10억 4000만 달러(2-5% 성장) 및 조정된 EBITDA를 2억 5500만-2억 7000만 달러(3-9% 성장)로 예상하고 있습니다. 이 회사는 ChlorKing의 전략적 인수를 완료하여 상업 수영장 수질 소독 제품군을 확장했습니다.
Hayward Holdings (NYSE: HAYW) a annoncé des résultats solides pour le deuxième trimestre de l'exercice fiscal 2024, avec des ventes nettes augmentant à 284,4 millions de dollars et un bénéfice net en hausse de 28% par rapport à l'année précédente, atteignant 37,6 millions de dollars. L'entreprise a atteint des marges brutes record de 51,0%, en hausse de 290 points de base, grâce à des gains d'efficacité opérationnelle et à des augmentations de prix net. L'EBITDA ajusté a progressé de 4% pour atteindre 82,6 millions de dollars, avec des marges élargies de 100 points de base pour atteindre 29,0%. Le BPA dilué a augmenté de 31% pour atteindre 0,17 dollar, tandis que le BPA dilué ajusté a augmenté de 11% pour atteindre 0,21 dollar.
Hayward a réduit ses prévisions pour l'année complète 2024, s'attendant désormais à des ventes nettes de 1,010 à 1,040 milliard de dollars (croissance de 2 à 5 %) et un EBITDA ajusté de 255 à 270 millions de dollars (croissance de 3 à 9 %). L'entreprise a finalisé une acquisition stratégique de ChlorKing, élargissant son offre de solutions de désinfection de l'eau pour les piscines commerciales.
Hayward Holdings (NYSE: HAYW) berichtet von starken Ergebnissen im 2. Quartal des Geschäftsjahres 2024, wobei der Nettoumsatz auf 284,4 Millionen US-Dollar und der Nettogewinn im Jahresvergleich um 28 % auf 37,6 Millionen US-Dollar gestiegen ist. Das Unternehmen erzielte Rekordbruttomargen von 51,0 %, ein Anstieg von 290 Basispunkten, getrieben von betrieblichen Effizienzen und Nettopreissteigerungen. Das bereinigte EBITDA wuchs um 4 % auf 82,6 Millionen US-Dollar, während die Margen um 100 Basispunkte auf 29,0 % stiegen. Der verwässerte Gewinn pro Aktie (EPS) stieg um 31 % auf 0,17 US-Dollar, während der bereinigte verwässerte EPS um 11 % auf 0,21 US-Dollar anstieg.
Hayward hat seine Prognose für das Gesamtjahr 2024 eingegrenzt und erwartet nun einen Nettoumsatz von 1,010-1,040 Milliarden US-Dollar (2-5 % Wachstum) und ein bereinigtes EBITDA von 255-270 Millionen US-Dollar (3-9 % Wachstum). Das Unternehmen hat eine strategische Akquisition von ChlorKing abgeschlossen, um sein Angebot an Wasserdesinfektionslösungen für kommerzielle Schwimmbäder zu erweitern.
- Net sales increased to $284.4 million in Q2 fiscal 2024
- Net income rose 28% year-over-year to $37.6 million
- Gross profit margin expanded 290 basis points to 51.0%
- Adjusted EBITDA grew 4% to $82.6 million with margins expanding 100 basis points to 29.0%
- Diluted EPS increased 31% to $0.17, adjusted diluted EPS rose 11% to $0.21
- Year-to-date cash flow from operations increased 26% to $209.8 million
- Completed strategic acquisition of ChlorKing, expanding commercial pool water sanitization offerings
- Decline in volume in the Middle East and Asia markets
- Lower new construction and remodels in the U.S. market
- Europe & Rest of World segment net sales decreased by 6% to $43.3 million
- Narrowed full-year guidance due to a more challenging demand environment
Insights
Hayward Holdings' Q2 FY2024 results demonstrate resilience in a challenging market environment. The company reported a modest increase in net sales to
Key highlights include:
- Record gross margins, expanding 290 basis points to
51.0% - Diluted EPS up
31% to$0.17 - Year-to-date operating cash flow increased
26% to$209.8 million
The company's focus on operational execution and working capital management has strengthened its balance sheet, enabling strategic moves like the acquisition of ChlorKing and early debt repayment. However, challenges persist, including market declines in the Middle East and Asia and lower new construction and remodels in the U.S.
Hayward's narrowed full-year guidance reflects these mixed conditions. The projected net sales of
While the economic environment remains uncertain, Hayward's strong cash flow generation and strategic positioning in the pool industry suggest a cautiously optimistic outlook for long-term investors.
Hayward's Q2 results offer valuable insights into the current state of the pool and outdoor living technology market. Despite challenging conditions, the company's performance indicates resilience in certain segments and geographies.
Key market trends observed:
- Growth in Europe and Canada, contrasting with declines in the Middle East and Asia
- Softening demand in U.S. new construction and remodel segments
- Increasing adoption of SmartPad™ pool equipment products
- Expansion into commercial pool water sanitization through the ChlorKing acquisition
The company's ability to maintain growth in this environment suggests effective market positioning and product differentiation. The acquisition of ChlorKing is particularly noteworthy, as it expands Hayward's reach in the growing commercial pool market.
However, the narrowed guidance range indicates caution about near-term market conditions. The projected
Long-term, the pool industry continues to benefit from secular trends in outdoor living. Hayward's focus on technology leadership and multi-channel capabilities positions it well to capitalize on these trends, particularly in the aftermarket segment which historically represents about
Investors should monitor how macroeconomic factors, such as interest rates and consumer spending, impact demand for pool and outdoor living products in the coming quarters.
SECOND QUARTER FISCAL 2024 SUMMARY
-
Net Sales increased year-over-year to
$284.4 million -
Net Income increased
28% year-over-year to$37.6 million -
Adjusted EBITDA* increased
4% year-over-year to$82.6 million -
Diluted EPS increased
31% year-over-year to and adjusted diluted EPS* increased$0.17 11% year-over-year to$0.21 -
Year-to-date cash flow from operations increased
26% year-over-year to$209.8 million
CEO COMMENTS
“I am pleased to report second quarter results consistent with expectations,” said Kevin Holleran, Hayward’s President and Chief Executive Officer. “We delivered record gross margins and increased cash flow through ongoing operational execution and working capital management. This performance enabled us to further strengthen the balance sheet and fund our growth initiatives. During the quarter, we reduced net leverage meaningfully while completing a voluntary early debt repayment and strategic acquisition of ChlorKing, a leader in commercial pool water sanitization. ChlorKing’s innovative technologies and strong customer relationships expand our product offering and improve access to a broader set of customers in this growing market. The economic and interest rate environment remains uncertain, and we are seeing progressively leaner channel inventory positions. However, our team continues to execute at a high level, strengthening Hayward’s leadership position in the pool industry.”
SECOND QUARTER FISCAL 2024 CONSOLIDATED RESULTS
Net sales increased modestly to
Gross profit increased by
Selling, general, and administrative expense (“SG&A”) increased by
Operating income increased by
Interest expense, net, decreased by
Income tax expense for the second quarter of fiscal 2024 was
Net income increased by
Adjusted EBITDA* increased to
Diluted EPS increased by
SECOND QUARTER FISCAL 2024 SEGMENT RESULTS
Net sales increased by
Segment income increased by
Net sales decreased by
Segment income decreased by
BALANCE SHEET AND CASH FLOW
As of June 29, 2024, Hayward had cash and cash equivalents of
OUTLOOK
Hayward is narrowing its full-year 2024 guidance, reflecting better than expected margins offset by a more challenging demand environment, particularly in new construction and remodels and certain international markets. For fiscal year 2024, Hayward now expects net sales of
The pool industry remains attractive and benefits 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 has historically represented approximately
Please see the Forward-Looking Statements section of this release for a discussion of certain risks relevant to Hayward’s outlook.
CONFERENCE CALL INFORMATION
Hayward will hold a conference call to discuss the results today, July 30, 2024 at 9:00 a.m. (ET).
Interested investors and other parties can 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.
The conference call can also be accessed by dialing (877) 423-9813 or (201) 689-8573.
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 (844) 512-2921 or (412) 317-6671. The access code for the replay is 13747810. The replay will be available until 11:59 p.m. Eastern Time on August 13, 2024.
ABOUT HAYWARD HOLDINGS, INC.
Hayward Holdings, Inc. (NYSE: HAYW) is a leading global designer and manufacturer of pool and outdoor living technology. With a mission to deliver exceptional products, outstanding service and innovative solutions to transform the experience of water, Hayward offers a full line of energy-efficient and sustainable residential and commercial pool equipment including pumps, heaters, sanitizers, filters, LED lighting, water features, and cleaners all digitally connected through Hayward’s intuitive IoT-enabled SmartPad™.
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 Securities and Exchange Commission (the “SEC”). Such forward-looking statements relating to Hayward are based on the beliefs of Hayward’s management as well as assumptions made by, and information currently available to it. These forward-looking statements include, but are not limited to, statements about Hayward’s strategies, plans, objectives, expectations, intentions, expenditures and assumptions and other statements contained in or incorporated by reference in this earnings release that are not historical facts. When used in this document, words such as “guidance,” “outlook,” “may,” “will,” “should,” “could,” “intend,” “potential,” “continue,” “anticipate,” “believe,” “estimate,” “expect,” “plan,” “target,” “predict,” “project,” “seek” and similar expressions as they relate to Hayward are intended to identify forward-looking statements. Hayward believes that it is important to communicate its future expectations to its stockholders, and it therefore makes forward-looking statements in reliance upon the safe harbor provisions of the Act. However, there may be events in the future that Hayward is not able to accurately predict or control, and actual results may differ materially from the expectations it describes in its forward-looking statements.
Examples of forward-looking statements include, among others, statements Hayward makes regarding: Hayward’s 2024 guidance; business plans and objectives; general economic and industry trends; business prospects; future product development and acquisition strategies; future channel stocking levels; and growth and expansion opportunities. 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; Hayward’s exposure to credit risk on its accounts receivable, 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; 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, maintain and effectively enforce 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 full fiscal year 2024 adjusted EBITDA outlook to the comparable GAAP measure is not being provided, as Hayward does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation. Adjusted EBITDA outlook for full year 2024 is calculated in a manner consistent with the historical presentation of this measure in the appendix.
Hayward Holdings, Inc.
|
||||||||
|
|
June 29, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
215,056 |
|
|
$ |
178,097 |
|
Short-term investments |
|
|
— |
|
|
|
25,000 |
|
Accounts receivable, net of allowances of |
|
|
148,233 |
|
|
|
270,875 |
|
Inventories, net |
|
|
213,559 |
|
|
|
215,180 |
|
Prepaid expenses |
|
|
15,789 |
|
|
|
14,331 |
|
Income tax receivable |
|
|
— |
|
|
|
9,994 |
|
Other current assets |
|
|
17,579 |
|
|
|
11,264 |
|
Total current assets |
|
|
610,216 |
|
|
|
724,741 |
|
Property, plant, and equipment, net of accumulated depreciation of |
|
|
160,657 |
|
|
|
158,979 |
|
Goodwill |
|
|
951,879 |
|
|
|
935,013 |
|
Trademark |
|
|
736,000 |
|
|
|
736,000 |
|
Customer relationships, net |
|
|
218,252 |
|
|
|
206,308 |
|
Other intangibles, net |
|
|
95,656 |
|
|
|
94,082 |
|
Other non-current assets |
|
|
90,011 |
|
|
|
91,161 |
|
Total assets |
|
$ |
2,862,671 |
|
|
$ |
2,946,284 |
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Current portion of long-term debt |
|
$ |
14,261 |
|
|
$ |
15,088 |
|
Accounts payable |
|
|
69,392 |
|
|
|
68,943 |
|
Accrued expenses and other liabilities |
|
|
148,813 |
|
|
|
155,543 |
|
Income taxes payable |
|
|
2,974 |
|
|
|
109 |
|
Total current liabilities |
|
|
235,440 |
|
|
|
239,683 |
|
Long-term debt, net |
|
|
959,840 |
|
|
|
1,079,280 |
|
Deferred tax liabilities, net |
|
|
242,608 |
|
|
|
248,967 |
|
Other non-current liabilities |
|
|
67,385 |
|
|
|
66,896 |
|
Total liabilities |
|
|
1,505,273 |
|
|
|
1,634,826 |
|
|
|
|
|
|
||||
Stockholders’ equity |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
244 |
|
|
|
243 |
|
Additional paid-in capital |
|
|
1,086,680 |
|
|
|
1,080,894 |
|
Common stock in treasury; 28,666,369 and 28,666,369 at June 29, 2024 and December 31, 2023, respectively |
|
|
(358,110 |
) |
|
|
(357,755 |
) |
Retained earnings |
|
|
628,330 |
|
|
|
580,909 |
|
Accumulated other comprehensive income |
|
|
254 |
|
|
|
7,167 |
|
Total stockholders’ equity |
|
|
1,357,398 |
|
|
|
1,311,458 |
|
Total liabilities, redeemable stock, and stockholders’ equity |
|
$ |
2,862,671 |
|
|
$ |
2,946,284 |
|
Hayward Holdings, Inc.
|
|||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||
|
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
|||||||
Net sales |
|
$ |
284,393 |
|
|
$ |
283,543 |
|
$ |
496,962 |
|
|
$ |
493,679 |
|
Cost of sales |
|
|
139,306 |
|
|
|
147,033 |
|
|
247,296 |
|
|
|
259,278 |
|
Gross profit |
|
|
145,087 |
|
|
|
136,510 |
|
|
249,666 |
|
|
|
234,401 |
|
Selling, general and administrative expense |
|
|
63,155 |
|
|
|
57,716 |
|
|
123,169 |
|
|
|
112,603 |
|
Research, development and engineering expense |
|
|
6,119 |
|
|
|
6,873 |
|
|
12,421 |
|
|
|
12,850 |
|
Acquisition and restructuring related expense |
|
|
839 |
|
|
|
1,309 |
|
|
1,343 |
|
|
|
2,872 |
|
Amortization of intangible assets |
|
|
6,949 |
|
|
|
7,637 |
|
|
13,849 |
|
|
|
15,254 |
|
Operating income |
|
|
68,025 |
|
|
|
62,975 |
|
|
98,884 |
|
|
|
90,822 |
|
Interest expense, net |
|
|
16,799 |
|
|
|
19,130 |
|
|
35,391 |
|
|
|
38,491 |
|
Loss on debt extinguishment |
|
|
4,926 |
|
|
|
— |
|
|
4,926 |
|
|
|
— |
|
Other (income) expense, net |
|
|
(646 |
) |
|
|
625 |
|
|
(1,284 |
) |
|
|
(134 |
) |
Total other expense |
|
|
21,079 |
|
|
|
19,755 |
|
|
39,033 |
|
|
|
38,357 |
|
Income from operations before income taxes |
|
|
46,946 |
|
|
|
43,220 |
|
|
59,851 |
|
|
|
52,465 |
|
Provision for income taxes |
|
|
9,365 |
|
|
|
13,767 |
|
|
12,430 |
|
|
|
14,602 |
|
Net income |
|
$ |
37,581 |
|
|
$ |
29,453 |
|
$ |
47,421 |
|
|
$ |
37,863 |
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings per share |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
0.17 |
|
|
$ |
0.14 |
|
$ |
0.22 |
|
|
$ |
0.18 |
|
Diluted |
|
$ |
0.17 |
|
|
$ |
0.13 |
|
$ |
0.21 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
|
214,915,338 |
|
|
|
212,861,564 |
|
|
214,637,930 |
|
|
|
212,692,393 |
|
Diluted |
|
|
221,259,232 |
|
|
|
220,503,544 |
|
|
221,159,419 |
|
|
|
220,506,921 |
|
Hayward Holdings, Inc.
|
|
Six Months Ended |
||||||
|
June 29, 2024 |
|
July 1, 2023 |
|||||
Cash flows from operating activities |
|
|
|
|
||||
Net income |
|
$ |
47,421 |
|
|
$ |
37,863 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
||||
Depreciation |
|
|
9,067 |
|
|
|
8,590 |
|
Amortization of intangible assets |
|
|
17,046 |
|
|
|
18,543 |
|
Amortization of deferred debt issuance fees |
|
|
2,294 |
|
|
|
2,242 |
|
Stock-based compensation |
|
|
4,632 |
|
|
|
4,146 |
|
Deferred income taxes |
|
|
(6,631 |
) |
|
|
(1,673 |
) |
Allowance for bad debts |
|
|
81 |
|
|
|
(879 |
) |
Loss on debt extinguishment |
|
|
4,926 |
|
|
|
— |
|
(Gain) loss on sale of property, plant and equipment |
|
|
(504 |
) |
|
|
137 |
|
Changes in operating assets and liabilities |
|
|
|
|
||||
Accounts receivable |
|
|
124,537 |
|
|
|
63,801 |
|
Inventories |
|
|
6,384 |
|
|
|
50,234 |
|
Other current and non-current assets |
|
|
7,803 |
|
|
|
15,225 |
|
Accounts payable |
|
|
(562 |
) |
|
|
(427 |
) |
Accrued expenses and other liabilities |
|
|
(6,655 |
) |
|
|
(31,286 |
) |
Net cash provided by operating activities |
|
|
209,839 |
|
|
|
166,516 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Purchases of property, plant, and equipment |
|
|
(10,706 |
) |
|
|
(15,703 |
) |
Acquisitions, net of cash acquired |
|
|
(62,367 |
) |
|
|
— |
|
Proceeds from sale of property, plant, and equipment |
|
|
48 |
|
|
|
5 |
|
Proceeds from short-term investments |
|
|
25,000 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(48,025 |
) |
|
|
(15,698 |
) |
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Proceeds from revolving credit facility |
|
|
— |
|
|
|
144,100 |
|
Payments on revolving credit facility |
|
|
— |
|
|
|
(144,100 |
) |
Proceeds from issuance of long-term debt |
|
|
2,856 |
|
|
|
1,827 |
|
Payments of long-term debt |
|
|
(129,401 |
) |
|
|
(6,153 |
) |
Proceeds from issuance of short-term notes payable |
|
|
6,340 |
|
|
|
5,347 |
|
Payments of short-term notes payable |
|
|
(2,888 |
) |
|
|
(3,542 |
) |
Other, net |
|
|
(514 |
) |
|
|
(360 |
) |
Net cash used in financing activities |
|
|
(123,607 |
) |
|
|
(2,881 |
) |
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
|
(1,248 |
) |
|
|
888 |
|
Change in cash and cash equivalents |
|
|
36,959 |
|
|
|
148,825 |
|
Cash and cash equivalents, beginning of period |
|
|
178,097 |
|
|
|
56,177 |
|
Cash and cash equivalents, end of period |
|
$ |
215,056 |
|
|
$ |
205,002 |
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information |
|
|
|
|
||||
Cash paid-interest |
|
$ |
36,601 |
|
|
$ |
37,223 |
|
Cash paid-income taxes |
|
|
6,221 |
|
|
|
6,779 |
|
Equipment financed under finance leases |
|
|
630 |
|
|
|
— |
|
Reconciliations
|
||||||||||||||||
(Dollars in thousands) |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||
Net income |
|
$ |
37,581 |
|
|
$ |
29,453 |
|
|
$ |
47,421 |
|
|
$ |
37,863 |
|
Depreciation |
|
|
4,757 |
|
|
|
4,228 |
|
|
|
9,067 |
|
|
|
8,590 |
|
Amortization |
|
|
8,503 |
|
|
|
9,289 |
|
|
|
17,046 |
|
|
|
18,543 |
|
Interest expense |
|
|
16,799 |
|
|
|
19,130 |
|
|
|
35,391 |
|
|
|
38,491 |
|
Income taxes |
|
|
9,365 |
|
|
|
13,767 |
|
|
|
12,430 |
|
|
|
14,602 |
|
Loss on debt extinguishment |
|
|
4,926 |
|
|
|
— |
|
|
|
4,926 |
|
|
|
— |
|
EBITDA |
|
|
81,931 |
|
|
|
75,867 |
|
|
|
126,281 |
|
|
|
118,089 |
|
Stock-based compensation (a) |
|
|
230 |
|
|
|
375 |
|
|
|
420 |
|
|
|
732 |
|
Currency exchange items (b) |
|
|
(180 |
) |
|
|
1,205 |
|
|
|
(126 |
) |
|
|
1,131 |
|
Acquisition and restructuring related expense, net (c) |
|
|
839 |
|
|
|
1,309 |
|
|
|
1,343 |
|
|
|
2,872 |
|
Other (d) |
|
|
(206 |
) |
|
|
722 |
|
|
|
(263 |
) |
|
|
1,583 |
|
Total Adjustments |
|
|
683 |
|
|
|
3,611 |
|
|
|
1,374 |
|
|
|
6,318 |
|
Adjusted EBITDA |
|
$ |
82,614 |
|
|
$ |
79,478 |
|
|
$ |
127,655 |
|
|
$ |
124,407 |
|
Adjusted EBITDA margin |
|
|
29.0 |
% |
|
|
28.0 |
% |
|
|
25.7 |
% |
|
|
25.2 |
% |
(a) |
|
Represents non-cash stock-based compensation expense related to equity awards issued to management, employees, and directors. The adjustment includes only expense related to awards issued under the 2017 Equity Incentive Plan, which were awards granted prior to the effective date of Hayward’s initial public offering (the “IPO”). |
(b) |
|
Represents unrealized non-cash (gains) losses on foreign denominated monetary assets and liabilities and foreign currency contracts. |
(c) |
|
Adjustments in the three months ended June 29, 2024 are primarily driven by
Adjustments in the six months ended June 29, 2024 are primarily driven by |
(d) |
|
Adjustments in the three months ended June 29, 2024 are primarily driven by
Adjustments in the six months ended June 29, 2024 are primarily driven by |
Following is a reconciliation from net income to adjusted EBITDA for the last twelve months:
(Dollars in thousands) |
|
Last Twelve
|
|
Fiscal Year |
||||
|
|
June 29, 2024 |
|
December 31, 2023 |
||||
Net income |
|
$ |
90,245 |
|
|
$ |
80,687 |
|
Depreciation |
|
|
16,460 |
|
|
|
15,983 |
|
Amortization |
|
|
35,582 |
|
|
|
37,079 |
|
Interest expense |
|
|
70,484 |
|
|
|
73,584 |
|
Income taxes |
|
|
18,228 |
|
|
|
20,400 |
|
Loss on debt extinguishment |
|
|
4,926 |
|
|
|
— |
|
EBITDA |
|
|
235,925 |
|
|
|
227,733 |
|
Stock-based compensation (a) |
|
|
958 |
|
|
|
1,270 |
|
Currency exchange items (b) |
|
|
(471 |
) |
|
|
786 |
|
Acquisition and restructuring related expense, net (c) |
|
|
11,684 |
|
|
|
13,213 |
|
Other (d) |
|
|
2,425 |
|
|
|
4,271 |
|
Total Adjustments |
|
|
14,596 |
|
|
|
19,540 |
|
Adjusted EBITDA |
|
$ |
250,521 |
|
|
$ |
247,273 |
|
Adjusted EBITDA margin |
|
|
25.2 |
% |
|
|
24.9 |
% |
(a) |
|
Represents non-cash stock-based compensation expense related to equity awards issued to management, employees, and directors. The adjustment includes only expense related to awards issued under the 2017 Equity Incentive Plan, which were awards granted prior to the effective date of the IPO. |
(b) |
|
Represents unrealized non-cash (gains) losses on foreign denominated monetary assets and liabilities and foreign currency contracts. |
(c) |
|
Adjustments in the last twelve months ended June 29, 2024 include
Adjustments in the year ended December 31, 2023 primarily include |
(d) |
|
Adjustments in the last twelve months ended June 29, 2024 primarily include
Adjustments in the year ended December 31, 2023 primarily include |
(e) |
|
Items for the last twelve months ended June 29, 2024 are calculated by adding the items for the six months ended June 29, 2024 plus fiscal year ended December 31, 2023 and subtracting the items for the six months ended July 1, 2023. |
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) |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||
Net income |
|
$ |
37,581 |
|
|
$ |
29,453 |
|
|
$ |
47,421 |
|
|
$ |
37,863 |
|
Tax adjustments (a) |
|
|
(1,624 |
) |
|
|
3,046 |
|
|
|
(1,771 |
) |
|
|
1,498 |
|
Other adjustments and amortization: |
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation (b) |
|
|
230 |
|
|
|
375 |
|
|
|
420 |
|
|
|
732 |
|
Currency exchange items (c) |
|
|
(180 |
) |
|
|
1,205 |
|
|
|
(126 |
) |
|
|
1,131 |
|
Acquisition and restructuring related expense, net (d) |
|
|
839 |
|
|
|
1,309 |
|
|
|
1,343 |
|
|
|
2,872 |
|
Other (e) |
|
|
(206 |
) |
|
|
722 |
|
|
|
(263 |
) |
|
|
1,583 |
|
Total other adjustments |
|
|
683 |
|
|
|
3,611 |
|
|
|
1,374 |
|
|
|
6,318 |
|
Loss on debt extinguishment |
|
|
4,926 |
|
|
|
— |
|
|
|
4,926 |
|
|
|
— |
|
Amortization |
|
|
8,503 |
|
|
|
9,289 |
|
|
|
17,046 |
|
|
|
18,543 |
|
Tax effect (f) |
|
|
(3,304 |
) |
|
|
(3,200 |
) |
|
|
(5,539 |
) |
|
|
(6,284 |
) |
Adjusted net income |
|
$ |
46,765 |
|
|
$ |
42,199 |
|
|
$ |
63,457 |
|
|
$ |
57,938 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding, basic |
|
|
214,915,338 |
|
|
|
212,861,564 |
|
|
|
214,637,930 |
|
|
|
212,692,393 |
|
Weighted average number of common shares outstanding, diluted |
|
|
221,259,232 |
|
|
|
220,503,544 |
|
|
|
221,159,419 |
|
|
|
220,506,921 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic EPS |
|
$ |
0.17 |
|
|
$ |
0.14 |
|
|
$ |
0.22 |
|
|
$ |
0.18 |
|
Diluted EPS |
|
$ |
0.17 |
|
|
$ |
0.13 |
|
|
$ |
0.21 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted basic EPS |
|
$ |
0.22 |
|
|
$ |
0.20 |
|
|
$ |
0.30 |
|
|
$ |
0.27 |
|
Adjusted diluted EPS |
|
$ |
0.21 |
|
|
$ |
0.19 |
|
|
$ |
0.29 |
|
|
$ |
0.26 |
|
(a) |
|
Tax adjustments for the three and six months ended June 29, 2024 reflect a normalized tax rate of |
(b) |
|
Represents non-cash stock-based compensation expense related to equity awards issued to management, employees, and directors. The adjustment includes only expense related to awards issued under the 2017 Equity Incentive Plan, which were awards granted prior to the effective date of the IPO. |
(c) |
|
Represents unrealized non-cash (gains) losses on foreign denominated monetary assets and liabilities and foreign currency contracts. |
(d) |
|
Adjustments in the three months ended June 29, 2024 are primarily driven by
Adjustments in the six months ended June 29, 2024 are primarily driven by |
(e) |
|
Adjustments in the three months ended June 29, 2024 are primarily driven by
Adjustments in the six months ended June 29, 2024 are primarily driven by |
(f) |
|
The tax effect represents the immediately preceding adjustments at the normalized tax rates as discussed in footnote (a) above. |
Segment Reconciliations
Following is a reconciliation from segment income to adjusted segment income for the
(Dollars in thousands) |
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||||
|
|
June 29, 2024 |
|
July 1, 2023 |
||||||||||||||||||||
|
|
Total |
|
NAM |
|
E&RW |
|
Total |
|
NAM |
|
E&RW |
||||||||||||
Net sales |
|
$ |
284,393 |
|
|
$ |
241,113 |
|
|
$ |
43,280 |
|
|
$ |
283,543 |
|
|
$ |
237,352 |
|
|
$ |
46,191 |
|
Gross profit |
|
$ |
145,087 |
|
|
$ |
127,430 |
|
|
$ |
17,657 |
|
|
$ |
136,510 |
|
|
$ |
118,442 |
|
|
$ |
18,068 |
|
Gross profit margin % |
|
|
51.0 |
% |
|
|
52.9 |
% |
|
|
40.8 |
% |
|
|
48.1 |
% |
|
|
49.9 |
% |
|
|
39.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from operations before income taxes |
|
$ |
46,946 |
|
|
|
|
|
|
$ |
43,220 |
|
|
|
|
|
||||||||
Expenses not allocated to segments |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate expense, net |
|
|
7,811 |
|
|
|
|
|
|
|
8,425 |
|
|
|
|
|
||||||||
Acquisition and restructuring related expense |
|
|
839 |
|
|
|
|
|
|
|
1,309 |
|
|
|
|
|
||||||||
Amortization of intangible assets |
|
|
6,949 |
|
|
|
|
|
|
|
7,637 |
|
|
|
|
|
||||||||
Interest expense, net |
|
|
16,799 |
|
|
|
|
|
|
|
19,130 |
|
|
|
|
|
||||||||
Loss on debt extinguishment |
|
|
4,926 |
|
|
|
|
|
|
|
— |
|
|
|
|
|
||||||||
Other (income) expense, net |
|
|
(646 |
) |
|
|
|
|
|
|
625 |
|
|
|
|
|
||||||||
Segment income |
|
$ |
83,624 |
|
|
$ |
75,335 |
|
|
$ |
8,289 |
|
|
$ |
80,346 |
|
|
$ |
70,962 |
|
|
$ |
9,384 |
|
Segment income margin % |
|
|
29.4 |
% |
|
|
31.2 |
% |
|
|
19.2 |
% |
|
|
28.3 |
% |
|
|
29.9 |
% |
|
|
20.3 |
% |
Depreciation |
|
$ |
4,591 |
|
|
$ |
4,328 |
|
|
$ |
263 |
|
|
$ |
4,068 |
|
|
$ |
3,837 |
|
|
$ |
231 |
|
Amortization |
|
|
1,554 |
|
|
|
1,554 |
|
|
|
— |
|
|
|
1,651 |
|
|
|
1,651 |
|
|
|
— |
|
Stock-based compensation |
|
|
57 |
|
|
|
57 |
|
|
|
— |
|
|
|
192 |
|
|
|
180 |
|
|
|
12 |
|
Other (a) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
290 |
|
|
|
290 |
|
|
|
— |
|
Total adjustments |
|
|
6,202 |
|
|
|
5,939 |
|
|
|
263 |
|
|
|
6,201 |
|
|
|
5,958 |
|
|
|
243 |
|
Adjusted segment income |
|
$ |
89,826 |
|
|
$ |
81,274 |
|
|
$ |
8,552 |
|
|
$ |
86,547 |
|
|
$ |
76,920 |
|
|
$ |
9,627 |
|
Adjusted segment income margin % |
|
|
31.6 |
% |
|
|
33.7 |
% |
|
|
19.8 |
% |
|
|
30.5 |
% |
|
|
32.4 |
% |
|
|
20.8 |
% |
(a) |
|
The three months ended July 1, 2023 includes miscellaneous items the Company believes are not representative of its ongoing business operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Dollars in thousands) |
|
Six Months Ended |
|
Six Months Ended |
||||||||||||||||||||
|
|
June 29, 2024 |
|
July 1, 2023 |
||||||||||||||||||||
|
|
Total |
|
NAM |
|
E&RW |
|
Total |
|
NAM |
|
E&RW |
||||||||||||
Net sales |
|
$ |
496,962 |
|
|
$ |
414,542 |
|
|
$ |
82,420 |
|
|
$ |
493,679 |
|
|
$ |
400,056 |
|
|
$ |
93,623 |
|
Gross profit |
|
$ |
249,666 |
|
|
$ |
217,307 |
|
|
$ |
32,359 |
|
|
$ |
234,401 |
|
|
$ |
197,455 |
|
|
$ |
36,946 |
|
Gross profit margin % |
|
|
50.2 |
% |
|
|
52.4 |
% |
|
|
39.3 |
% |
|
|
47.5 |
% |
|
|
49.4 |
% |
|
|
39.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from operations before income taxes |
|
$ |
59,851 |
|
|
|
|
|
|
$ |
52,465 |
|
|
|
|
|
||||||||
Expenses not allocated to segments |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate expense, net |
|
|
15,326 |
|
|
|
|
|
|
|
14,524 |
|
|
|
|
|
||||||||
Acquisition and restructuring related expense |
|
|
1,343 |
|
|
|
|
|
|
|
2,872 |
|
|
|
|
|
||||||||
Amortization of intangible assets |
|
|
13,849 |
|
|
|
|
|
|
|
15,254 |
|
|
|
|
|
||||||||
Interest expense, net |
|
|
35,391 |
|
|
|
|
|
|
|
38,491 |
|
|
|
|
|
||||||||
Loss on debt extinguishment |
|
|
4,926 |
|
|
|
|
|
|
|
— |
|
|
|
|
|
||||||||
Other (income) expense, net |
|
|
(1,284 |
) |
|
|
|
|
|
|
(134 |
) |
|
|
|
|
||||||||
Segment income |
|
$ |
129,402 |
|
|
$ |
115,077 |
|
|
$ |
14,325 |
|
|
$ |
123,472 |
|
|
$ |
104,238 |
|
|
$ |
19,234 |
|
Segment income margin % |
|
|
26.0 |
% |
|
|
27.8 |
% |
|
|
17.4 |
% |
|
|
25.0 |
% |
|
|
26.1 |
% |
|
|
20.5 |
% |
Depreciation |
|
$ |
8,735 |
|
|
$ |
8,215 |
|
|
$ |
520 |
|
|
$ |
8,373 |
|
|
$ |
7,925 |
|
|
$ |
448 |
|
Amortization |
|
|
3,197 |
|
|
|
3,197 |
|
|
|
— |
|
|
|
3,288 |
|
|
|
3,288 |
|
|
|
— |
|
Stock-based compensation |
|
|
79 |
|
|
|
69 |
|
|
|
10 |
|
|
|
365 |
|
|
|
342 |
|
|
|
23 |
|
Other (a) |
|
|
19 |
|
|
|
19 |
|
|
|
— |
|
|
|
388 |
|
|
|
388 |
|
|
|
— |
|
Total adjustments |
|
|
12,030 |
|
|
|
11,500 |
|
|
|
530 |
|
|
|
12,414 |
|
|
|
11,943 |
|
|
|
471 |
|
Adjusted segment income |
|
$ |
141,432 |
|
|
$ |
126,577 |
|
|
$ |
14,855 |
|
|
$ |
135,886 |
|
|
$ |
116,181 |
|
|
$ |
19,705 |
|
Adjusted segment income margin % |
|
|
28.5 |
% |
|
|
30.5 |
% |
|
|
18.0 |
% |
|
|
27.5 |
% |
|
|
29.0 |
% |
|
|
21.0 |
% |
(a) |
|
The six months ended June 29, 2024 represents losses on the sale of assets. The six months ended July 1, 2023 includes miscellaneous items the Company believes are not representative of its ongoing business operations. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730598272/en/
Investor Relations:
Kevin Maczka
investor.relations@hayward.com
Media Relations:
Tanya McNabb
tmcnabb@hayward.com
Source: Hayward Holdings, Inc.
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