Hayward Holdings Reports Fourth Quarter and Full Year 2024 Financial Results and Introduces 2025 Guidance
FOURTH QUARTER FISCAL 2024 SUMMARY
-
Net Sales increased
17% year-over-year to$327.1 million -
Net Income increased
76% year-over-year to$54.7 million -
Adjusted EBITDA* increased
30% year-over-year to$98.7 million -
Diluted EPS increased
79% year-over-year to$0.25 -
Adjusted diluted EPS* increased
35% year-over-year to$0.27
FULL FISCAL YEAR 2024 HIGHLIGHTS
-
Net Sales increased
6% year-over-year to$1,051.6 million -
Net Income increased
47% year-over-year to$118.7 million -
Adjusted EBITDA* increased
12% year-over-year to$277.4 million -
Diluted EPS and adjusted diluted EPS* of
and$0.54 , increased$0.67 47% and20% , respectively -
Strong cash flow from operations of
$212.1 million
CEO COMMENTS
“I am pleased to report strong fourth quarter results ahead of expectations,” said Kevin Holleran, Hayward’s President and Chief Executive Officer. “We finished the year on a high note with increased shipments for in-quarter demand and robust early buy orders for the upcoming 2025 pool season, resulting in solid sales and earnings growth, margin expansion and increased cash flow generation. As I reflect on 2024, it was a successful year for Hayward despite the macroeconomic challenges faced by the pool industry, and I am proud of the performance of our team. In addition to returning to sales growth, we further strengthened the senior leadership team and executed our strategic plans to position the Company for continued growth. This included expanding our customer relationships, advancing our technology leadership position with the introduction of several innovative new products, and further demonstrating our operational excellence capabilities. Solid profitability and cash flow enabled us to reduce net leverage into our targeted range while completing accretive capital deployments for early debt repayment and a strategic acquisition. Looking forward, as we celebrate the 100th anniversary of Hayward’s founding in 1925, I am encouraged by the Company’s solid foundation and excited about the many opportunities to build on our momentum and deliver exceptional value to our customers and shareholders.”
FOURTH QUARTER FISCAL 2024 CONSOLIDATED RESULTS
Net sales increased by
Gross profit increased by
Selling, general, and administrative (“SG&A”) expenses increased by
Operating income increased by
Interest expense, net, decreased by
Income tax expense for the fourth quarter of fiscal 2024 was
Net income increased by
Adjusted EBITDA* increased by
Diluted EPS increased by
FOURTH QUARTER FISCAL 2024 SEGMENT RESULTS
Net sales increased by
Segment income increased by
Net sales increased by
Segment income decreased by
FULL FISCAL YEAR 2024 CONSOLIDATED RESULTS
Net sales increased by
Gross profit increased by
Operating income increased by
Net income increased by
Adjusted EBITDA* increased by
Diluted EPS increased by
BALANCE SHEET AND CASH FLOW
As of December 31, 2024, Hayward had cash and cash equivalents of
OUTLOOK
Hayward is introducing 2025 guidance reflecting sales and earnings growth driven by solid execution across the organization, positive price realization and continued technology adoption. For fiscal year 2025, Hayward expects net sales of approximately
Hayward is excited about the long-term dynamics of the pool industry. The installed base of pools increases every year, providing continued growth opportunities, and the Company benefits from favorable secular demand trends in outdoor living, sunbelt migration, and technology adoption. Hayward continues to leverage its competitive advantages and drive increasing adoption of its 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, February 27, 2025 at 9:00 a.m. (ET).
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. The conference call may 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 three 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 13750901. The replay will be available until 11:59 p.m. Eastern Time on March 13, 2025.
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, filters, heaters, cleaners, sanitizers, LED lighting, and water features all digitally connected through Hayward’s intuitive IoT-enabled SmartPad™.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain “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,” “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 2025 guidance; business plans and objectives; general economic and industry trends; business prospects; future product development and acquisition strategies; future channel stocking levels; 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 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; misuse of its technology-enabled products could lead to reduced sales, liability claims or harm to its reputation; the impact of product manufacturing disruptions, including as a result of catastrophic and other events beyond Hayward’s control; the potential adverse impact of tariffs and other trade restrictions on its business; 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 fiscal 2025 adjusted EBITDA guidance (which is presented on a basis similar to the presentation of historical adjusted EBITDA) is not being provided, as Hayward does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation.
Hayward Holdings, Inc. |
||||||||
Unaudited Consolidated Balance Sheets |
||||||||
(Dollars in thousands, except per share data) |
||||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
196,589 |
|
|
$ |
178,097 |
|
Short-term investments |
|
|
— |
|
|
|
25,000 |
|
Accounts receivable, net of allowances of |
|
|
278,582 |
|
|
|
270,875 |
|
Inventories, net |
|
|
216,472 |
|
|
|
215,180 |
|
Prepaid expenses |
|
|
20,203 |
|
|
|
14,331 |
|
Income tax receivable |
|
|
6,426 |
|
|
|
9,994 |
|
Other current assets |
|
|
48,697 |
|
|
|
11,264 |
|
Total current assets |
|
|
766,969 |
|
|
|
724,741 |
|
Property, plant, and equipment, net of accumulated depreciation of |
|
|
160,377 |
|
|
|
158,979 |
|
Goodwill |
|
|
943,645 |
|
|
|
935,013 |
|
Trademark |
|
|
736,000 |
|
|
|
736,000 |
|
Customer relationships, net |
|
|
198,333 |
|
|
|
206,308 |
|
Other intangibles, net |
|
|
96,095 |
|
|
|
94,082 |
|
Other non-current assets |
|
|
89,205 |
|
|
|
91,161 |
|
Total assets |
|
$ |
2,990,624 |
|
|
$ |
2,946,284 |
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Current portion of long-term debt |
|
$ |
13,991 |
|
|
$ |
15,088 |
|
Accounts payable |
|
|
81,476 |
|
|
|
68,943 |
|
Accrued expenses and other liabilities |
|
|
217,242 |
|
|
|
155,543 |
|
Income taxes payable |
|
|
273 |
|
|
|
109 |
|
Total current liabilities |
|
|
312,982 |
|
|
|
239,683 |
|
Long-term debt, net |
|
|
950,562 |
|
|
|
1,079,280 |
|
Deferred tax liabilities, net |
|
|
239,111 |
|
|
|
248,967 |
|
Other non-current liabilities |
|
|
64,322 |
|
|
|
66,896 |
|
Total liabilities |
|
|
1,566,977 |
|
|
|
1,634,826 |
|
|
|
|
|
|
||||
Stockholders’ equity |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
245 |
|
|
|
243 |
|
Additional paid-in capital |
|
|
1,093,468 |
|
|
|
1,080,894 |
|
Common stock in treasury; 28,666,369 and 28,666,369 at December 31, 2024 and December 31, 2023, respectively |
|
|
(358,133 |
) |
|
|
(357,755 |
) |
Retained earnings |
|
|
699,564 |
|
|
|
580,909 |
|
Accumulated other comprehensive income (loss) |
|
|
(11,497 |
) |
|
|
7,167 |
|
Total stockholders’ equity |
|
|
1,423,647 |
|
|
|
1,311,458 |
|
Total liabilities, redeemable stock, and stockholders’ equity |
|
$ |
2,990,624 |
|
|
$ |
2,946,284 |
|
Hayward Holdings, Inc. |
|||||||||||||||
Unaudited Consolidated Statements of Operations |
|||||||||||||||
(Dollars in thousands, except per share data) |
|||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
|||||||
Net sales |
|
$ |
327,075 |
|
|
$ |
278,469 |
|
|
$ |
1,051,606 |
|
|
$ |
992,452 |
Cost of sales |
|
|
159,079 |
|
|
|
141,331 |
|
|
|
520,849 |
|
|
|
515,502 |
Gross profit |
|
|
167,996 |
|
|
|
137,138 |
|
|
|
530,757 |
|
|
|
476,950 |
Selling, general and administrative expense |
|
|
73,250 |
|
|
|
61,550 |
|
|
|
260,928 |
|
|
|
233,607 |
Research, development and engineering expense |
|
|
6,908 |
|
|
|
5,520 |
|
|
|
25,778 |
|
|
|
24,547 |
Acquisition and restructuring related expense |
|
|
3,976 |
|
|
|
6,993 |
|
|
|
6,464 |
|
|
|
13,213 |
Amortization of intangible assets |
|
|
7,375 |
|
|
|
7,584 |
|
|
|
28,800 |
|
|
|
30,361 |
Operating income |
|
|
76,487 |
|
|
|
55,491 |
|
|
|
208,787 |
|
|
|
175,222 |
Interest expense, net |
|
|
13,563 |
|
|
|
17,645 |
|
|
|
62,163 |
|
|
|
73,584 |
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
4,926 |
|
|
|
— |
Other (income) expense, net |
|
|
(495 |
) |
|
|
(1,247 |
) |
|
|
(2,484 |
) |
|
|
551 |
Total other expense |
|
|
13,068 |
|
|
|
16,398 |
|
|
|
64,605 |
|
|
|
74,135 |
Income from operations before income taxes |
|
|
63,419 |
|
|
|
39,093 |
|
|
|
144,182 |
|
|
|
101,087 |
Provision for income taxes |
|
|
8,686 |
|
|
|
8,057 |
|
|
|
25,527 |
|
|
|
20,400 |
Net income |
|
$ |
54,733 |
|
|
$ |
31,036 |
|
|
$ |
118,655 |
|
|
$ |
80,687 |
|
|
|
|
|
|
|
|
|
|||||||
Earnings per share |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
0.25 |
|
|
$ |
0.15 |
|
|
$ |
0.55 |
|
|
$ |
0.38 |
Diluted |
|
$ |
0.25 |
|
|
$ |
0.14 |
|
|
$ |
0.54 |
|
|
$ |
0.37 |
|
|
|
|
|
|
|
|
|
|||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
|
215,584,373 |
|
|
|
213,768,108 |
|
|
|
215,028,683 |
|
|
|
213,144,063 |
Diluted |
|
|
221,872,482 |
|
|
|
220,848,098 |
|
|
|
221,370,188 |
|
|
|
220,688,616 |
Hayward Holdings, Inc. |
|
|
||||||
Unaudited Consolidated Statements of Cash Flows |
Year Ended |
|||||||
(In thousands) |
|
December 31, 2024 |
|
December 31, 2023 |
||||
Cash flows from operating activities |
|
|
|
|
||||
Net income |
|
$ |
118,655 |
|
|
$ |
80,687 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
||||
Depreciation |
|
|
20,078 |
|
|
|
15,983 |
|
Amortization of intangible assets |
|
|
35,783 |
|
|
|
37,079 |
|
Amortization of deferred debt issuance fees |
|
|
4,203 |
|
|
|
4,696 |
|
Stock-based compensation |
|
|
10,595 |
|
|
|
9,165 |
|
Deferred income taxes |
|
|
(10,514 |
) |
|
|
(12,786 |
) |
Allowance for bad debts |
|
|
(169 |
) |
|
|
(1,067 |
) |
Loss on debt extinguishment |
|
|
4,926 |
|
|
|
— |
|
Loss on impairment |
|
|
— |
|
|
|
6,720 |
|
(Gain) loss on sale of property, plant and equipment |
|
|
(428 |
) |
|
|
1,000 |
|
Changes in operating assets and liabilities |
|
|
|
|
||||
Accounts receivable |
|
|
(7,260 |
) |
|
|
(58,700 |
) |
Inventories |
|
|
4,330 |
|
|
|
67,824 |
|
Other current and non-current assets |
|
|
(41,167 |
) |
|
|
24,820 |
|
Accounts payable |
|
|
11,794 |
|
|
|
14,551 |
|
Accrued expenses and other liabilities |
|
|
61,242 |
|
|
|
(5,432 |
) |
Net cash provided by operating activities |
|
|
212,068 |
|
|
|
184,540 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Purchases of property, plant, and equipment |
|
|
(24,289 |
) |
|
|
(30,994 |
) |
Purchases of short-term investments |
|
|
— |
|
|
|
(25,000 |
) |
Acquisitions, net of cash acquired |
|
|
(55,153 |
) |
|
|
— |
|
Proceeds from sale of property, plant, and equipment |
|
|
311 |
|
|
|
613 |
|
Proceeds from short-term investments |
|
|
25,000 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(54,131 |
) |
|
|
(55,381 |
) |
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Purchases of common stock for treasury |
|
|
(378 |
) |
|
|
— |
|
Proceeds from issuance of long-term debt |
|
|
2,886 |
|
|
|
5,448 |
|
Payments of long-term debt |
|
|
(138,638 |
) |
|
|
(12,518 |
) |
Proceeds from revolving credit facility |
|
|
— |
|
|
|
144,100 |
|
Payments on revolving credit facility |
|
|
— |
|
|
|
(144,100 |
) |
Proceeds from issuance of short term debt |
|
|
6,340 |
|
|
|
6,130 |
|
Payments of short term debt |
|
|
(6,463 |
) |
|
|
(6,894 |
) |
Other, net |
|
|
(537 |
) |
|
|
222 |
|
Net cash used in financing activities |
|
|
(136,790 |
) |
|
|
(7,612 |
) |
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
|
(2,655 |
) |
|
|
373 |
|
Change in cash and cash equivalents |
|
|
18,492 |
|
|
|
121,920 |
|
Cash and cash equivalents, beginning of year |
|
|
178,097 |
|
|
|
56,177 |
|
Cash and cash equivalents, end of year |
|
$ |
196,589 |
|
|
$ |
178,097 |
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information: |
|
|
|
|
||||
Cash paid-interest |
|
$ |
68,476 |
|
|
$ |
75,658 |
|
Cash paid-income taxes |
|
|
35,938 |
|
|
|
16,420 |
|
|
|
|
|
|
||||
Non-cash investing and financing activities: |
|
|
|
|
||||
Accrued and unpaid purchases of property, plant, and equipment |
|
$ |
4,567 |
|
|
$ |
1,150 |
|
Equipment financed under finance leases |
|
|
1,046 |
|
|
|
(21 |
) |
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 |
||||||||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
||||||||
Net income |
|
$ |
54,733 |
|
|
$ |
31,036 |
|
|
$ |
118,655 |
|
|
$ |
80,687 |
|
Depreciation |
|
|
6,149 |
|
|
|
2,965 |
|
|
|
20,078 |
|
|
|
15,983 |
|
Amortization |
|
|
9,484 |
|
|
|
9,276 |
|
|
|
35,783 |
|
|
|
37,079 |
|
Interest expense |
|
|
13,563 |
|
|
|
17,645 |
|
|
|
62,163 |
|
|
|
73,584 |
|
Income taxes |
|
|
8,686 |
|
|
|
8,057 |
|
|
|
25,527 |
|
|
|
20,400 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
4,926 |
|
|
|
— |
|
EBITDA |
|
|
92,615 |
|
|
|
68,979 |
|
|
|
267,132 |
|
|
|
227,733 |
|
Stock-based compensation(a) |
|
|
52 |
|
|
|
269 |
|
|
|
608 |
|
|
|
1,270 |
|
Currency exchange items(b) |
|
|
(366 |
) |
|
|
(490 |
) |
|
|
(836 |
) |
|
|
786 |
|
Acquisition and restructuring related expense, net(c) |
|
|
3,976 |
|
|
|
6,993 |
|
|
|
6,464 |
|
|
|
13,213 |
|
Other(d) |
|
|
2,422 |
|
|
|
(96 |
) |
|
|
4,079 |
|
|
|
4,271 |
|
Total Adjustments |
|
|
6,084 |
|
|
|
6,676 |
|
|
|
10,315 |
|
|
|
19,540 |
|
Adjusted EBITDA |
|
$ |
98,699 |
|
|
$ |
75,655 |
|
|
$ |
277,447 |
|
|
$ |
247,273 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income margin |
|
|
16.7 |
% |
|
|
11.1 |
% |
|
|
11.3 |
% |
|
|
8.1 |
% |
Adjusted EBITDA margin |
|
|
30.2 |
% |
|
|
27.2 |
% |
|
|
26.4 |
% |
|
|
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 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 fiscal quarter ended December 31, 2024 are primarily driven by |
|
|
Adjustments in the fiscal quarter ended December 31, 2023 are primarily driven by |
|
|
Adjustments in the year ended December 31, 2024 are primarily driven by |
|
|
Adjustments in the year ended December 31, 2023 primarily include |
(d) |
|
Adjustments in the fiscal quarter ended December 31, 2024 are primarily driven by a |
|
|
Adjustments in the fiscal quarter ended December 31, 2023 are primarily related to programs to centralize and consolidate operations and professional services in |
|
|
Adjustments in the year ended December 31, 2024 are primarily driven by a |
|
|
Adjustments in the year ended December 31, 2023 primarily include |
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 |
||||||||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
||||||||
Net income |
|
$ |
54,733 |
|
|
$ |
31,036 |
|
|
$ |
118,655 |
|
|
$ |
80,687 |
|
Tax adjustments (a) |
|
|
(7,167 |
) |
|
|
974 |
|
|
|
(9,389 |
) |
|
|
(1,930 |
) |
Other adjustments and amortization: |
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation (b) |
|
|
52 |
|
|
|
269 |
|
|
|
608 |
|
|
|
1,270 |
|
Currency exchange items (c) |
|
|
(366 |
) |
|
|
(490 |
) |
|
|
(836 |
) |
|
|
786 |
|
Acquisition and restructuring related expense, net (d) |
|
|
3,976 |
|
|
|
6,993 |
|
|
|
6,464 |
|
|
|
13,213 |
|
Other (e) |
|
|
2,422 |
|
|
|
(96 |
) |
|
|
4,079 |
|
|
|
4,271 |
|
Total other adjustments |
|
|
6,084 |
|
|
|
6,676 |
|
|
|
10,315 |
|
|
|
19,540 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
4,926 |
|
|
|
— |
|
Amortization |
|
|
9,484 |
|
|
|
9,276 |
|
|
|
35,783 |
|
|
|
37,079 |
|
Tax effect (f) |
|
|
(3,892 |
) |
|
|
(2,890 |
) |
|
|
(12,356 |
) |
|
|
(12,507 |
) |
Adjusted net income |
|
$ |
59,242 |
|
|
$ |
45,072 |
|
|
$ |
147,934 |
|
|
$ |
122,869 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding, basic |
|
|
215,584,373 |
|
|
|
213,768,108 |
|
|
|
215,028,683 |
|
|
|
213,144,063 |
|
Weighted average number of common shares outstanding, diluted |
|
|
221,872,482 |
|
|
|
220,848,098 |
|
|
|
221,370,188 |
|
|
|
220,688,616 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic EPS |
|
$ |
0.25 |
|
|
$ |
0.15 |
|
|
$ |
0.55 |
|
|
$ |
0.38 |
|
Diluted EPS |
|
$ |
0.25 |
|
|
$ |
0.14 |
|
|
$ |
0.54 |
|
|
$ |
0.37 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted basic EPS |
|
$ |
0.27 |
|
|
$ |
0.21 |
|
|
|
0.69 |
|
|
|
0.58 |
|
Adjusted diluted EPS |
|
$ |
0.27 |
|
|
$ |
0.20 |
|
|
|
0.67 |
|
|
|
0.56 |
|
(a) |
|
Tax adjustments for the three and twelve months ended December 31, 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 Hayward’s IPO. |
(c) |
|
Represents unrealized non-cash (gains) losses on foreign denominated monetary assets and liabilities and foreign currency contracts. |
(d) |
|
Adjustments in the fiscal quarter ended December 31, 2024 are primarily driven by |
|
|
Adjustments in the fiscal quarter ended December 31, 2023 are primarily driven by |
|
|
Adjustments in the year ended December 31, 2024 are primarily driven by |
|
|
Adjustments in the year ended December 31, 2023 primarily include |
(e) |
|
Adjustments in the fiscal quarter ended December 31, 2024 are primarily driven by a |
|
|
Adjustments in the fiscal quarter ended December 31, 2023 are primarily related to programs to centralize and consolidate operations and professional services in |
|
|
Adjustments in the year ended December 31, 2024 are primarily driven by a |
|
|
Adjustments in the year ended December 31, 2023 primarily include |
(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 |
||||||||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
||||||||||||
|
|
NAM |
|
E&RW |
|
NAM |
|
E&RW |
||||||||
Segment income |
|
$ |
95,089 |
|
|
$ |
4,832 |
|
|
$ |
71,079 |
|
|
$ |
7,871 |
|
Depreciation |
|
$ |
5,370 |
|
|
$ |
424 |
|
|
$ |
2,658 |
|
|
$ |
246 |
|
Amortization |
|
|
2,111 |
|
|
|
— |
|
|
|
1,692 |
|
|
|
— |
|
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
20 |
|
|
|
11 |
|
Other (a) |
|
|
2,356 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total adjustments |
|
|
9,837 |
|
|
|
424 |
|
|
|
4,370 |
|
|
|
257 |
|
Adjusted segment income |
|
$ |
104,926 |
|
|
$ |
5,256 |
|
|
$ |
75,449 |
|
|
$ |
8,128 |
|
|
|
|
|
|
|
|
|
|
||||||||
Segment income margin % |
|
|
33.2 |
% |
|
|
11.8 |
% |
|
|
29.8 |
% |
|
|
19.5 |
% |
Adjusted segment income margin % |
|
|
36.7 |
% |
|
|
12.8 |
% |
|
|
31.7 |
% |
|
|
20.2 |
% |
(a) |
|
Adjustments in the fiscal quarter ended December 31, 2024 for NAM are primarily driven by a |
(Dollars in thousands) |
|
Twelve Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
||||||||||||
|
|
NAM |
|
E&RW |
|
NAM |
|
E&RW |
||||||||
Segment income |
|
$ |
261,735 |
|
|
$ |
21,632 |
|
|
$ |
215,425 |
|
|
$ |
33,518 |
|
Depreciation |
|
$ |
17,989 |
|
|
$ |
1,215 |
|
|
$ |
14,610 |
|
|
$ |
940 |
|
Amortization |
|
|
6,985 |
|
|
|
— |
|
|
|
6,718 |
|
|
|
— |
|
Stock-based compensation |
|
|
176 |
|
|
|
10 |
|
|
|
437 |
|
|
|
45 |
|
Other (a) |
|
|
4,079 |
|
|
|
— |
|
|
|
503 |
|
|
|
— |
|
Total adjustments |
|
|
29,229 |
|
|
|
1,225 |
|
|
|
22,268 |
|
|
|
985 |
|
Adjusted segment income |
|
$ |
290,964 |
|
|
$ |
22,857 |
|
|
$ |
237,693 |
|
|
$ |
34,503 |
|
|
|
|
|
|
|
|
|
|
||||||||
Segment income margin % |
|
|
29.2 |
% |
|
|
13.9 |
% |
|
|
26.2 |
% |
|
|
19.8 |
% |
Adjusted segment income margin % |
|
|
32.5 |
% |
|
|
14.6 |
% |
|
|
28.9 |
% |
|
|
20.4 |
% |
(a) |
|
Adjustments in the year ended December 31, 2024 for NAM include a Adjustments in the year ended December 31, 2023 for NAM include miscellaneous items we believe are not representative of our ongoing business operations. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250227609334/en/
Investor Relations:
Kevin Maczka
investor.relations@hayward.com
Media Relations:
Misty Zelent
mzelent@hayward.com
Source: Hayward Holdings, Inc.