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Sep 28, 2024

Latham Q3 2024 Earnings Report

Latham reported a decrease in net sales but an increase in gross profit and margin due to production efficiencies and the acquisition of Coverstar Central.

Key Takeaways

Latham Group reported a decrease in net sales for Q3 2024, but managed to increase gross profit and margin due to production efficiencies and the acquisition of Coverstar Central. The company is focused on fiberglass pool adoption and automatic safety cover sales.

Net sales decreased by 6.4% year-over-year to $150.5 million due to lower sales volumes.

Gross profit increased slightly to $48.7 million, with gross margin expanding to 32.4%.

Net income remained relatively stable at $5.9 million, or $0.05 per diluted share.

Adjusted EBITDA decreased by 17.3% to $29.8 million, with a margin of 19.8%.

Total Revenue
$150M
Previous year: $161M
-6.4%
EPS
$0.05
Previous year: $0.05
+0.0%
Gross Profit Margin
32.4%
Previous year: 29.9%
+8.4%
Adjusted EBITDA
$29.8M
Previous year: $36.1M
-17.5%
Adjusted EBITDA Margin
19.8%
Previous year: 22.4%
-11.6%
Gross Profit
$48.7M
Previous year: $41.5M
+17.3%
Cash and Equivalents
$59.9M
Previous year: $78.1M
-23.3%
Free Cash Flow
$33.2M
Previous year: $46.9M
-29.2%
Total Assets
$693M
Previous year: $865M
-20.0%

Latham

Latham

Forward Guidance

Latham narrowed its full year 2024 guidance ranges for net sales and Adjusted EBITDA to reflect the end of much of the pool building season and the potential impacts on shipments from recent hurricanes.