Hayward Holdings Announces Fourth Quarter and Full Year 2023 Financial Results and Introduces 2024 Guidance
FOURTH QUARTER FISCAL 2023 SUMMARY
-
Net Sales increased 8% year-over-year to$278.5 million -
Net Income increased 94% year-over-year to
$31.0 million -
Adjusted EBITDA* increased 42% year-over-year to
$75.7 million -
Diluted EPS increased 100% year-over-year to
$0.14 -
Adjusted diluted EPS* increased 82% year-over-year to
$0.20
FULL FISCAL YEAR 2023 HIGHLIGHTS
-
Net Sales decreased 24% year-over-year to$992.5 million -
Net Income decreased 55% year-over-year to
$80.7 million -
Adjusted EBITDA* decreased 33% year-over-year to
$247.3 million -
Diluted EPS of
$0.37 and adjusted diluted EPS* of$0.56 -
Strong cash flow from operations of
$184.5 million
CEO COMMENTS
“Our fourth quarter results were consistent with expectations,” said
FOURTH QUARTER FISCAL 2023 CONSOLIDATED RESULTS
Net sales increased by 8% to
Gross profit increased by 25% to
Selling, general, and administrative (“SG&A”) expenses increased by 2% to
Operating income increased by 54% to
Interest expense, net, increased by approximately 8% to
Income tax expense for the fourth quarter of fiscal 2023 was
Net income increased by 94% to
Adjusted EBITDA* increased by 42% to
Diluted EPS increased by 100% to
FOURTH QUARTER FISCAL 2023 SEGMENT RESULTS
Net sales increased by 10% to
Segment income increased by 74% to
Net sales decreased by 4% to
Segment income decreased by 6% to
FULL FISCAL YEAR 2023 CONSOLIDATED RESULTS
Net sales decreased by 24% to
Gross profit decreased by 20% to
Operating income decreased by 39% to
Net income decreased by 55% to
Adjusted EBITDA* decreased by 33% to
Diluted EPS decreased by 53% to
BALANCE SHEET AND CASH FLOW
As of
OUTLOOK
Hayward is introducing 2024 guidance reflecting a return to sales and earnings growth driven by solid execution across the organization, positive price realization and continued technology adoption. The guidance range also contemplates continued uncertainty around global macro conditions and consumer spending, coupled with our current expectations regarding channel inventory levels. For fiscal year 2024, Hayward expects net sales of approximately
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 80% of our business. Hayward is confident in its long-term outlook for profitable growth and robust cash flow generation, driven by new product innovation, expanding commercial relationships, and operational excellence.
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,
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 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 13744093. 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 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 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; 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 2024 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.
Unaudited Consolidated Balance Sheets (Dollars in thousands, except per share data) |
||||||||
|
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
178,097 |
|
|
$ |
56,177 |
|
Short-term investments |
|
|
25,000 |
|
|
|
— |
|
Accounts receivable, net of allowances of |
|
|
270,875 |
|
|
|
209,109 |
|
Inventories, net |
|
|
215,180 |
|
|
|
283,658 |
|
Prepaid expenses |
|
|
14,331 |
|
|
|
14,981 |
|
Income tax receivable |
|
|
9,994 |
|
|
|
27,173 |
|
Other current assets |
|
|
11,264 |
|
|
|
21,186 |
|
Total current assets |
|
|
724,741 |
|
|
|
612,284 |
|
Property, plant, and equipment, net of accumulated depreciation of |
|
|
158,979 |
|
|
|
149,828 |
|
|
|
|
935,013 |
|
|
|
932,396 |
|
Trademark |
|
|
736,000 |
|
|
|
736,000 |
|
Customer relationships, net |
|
|
206,308 |
|
|
|
230,503 |
|
Other intangibles, net |
|
|
94,082 |
|
|
|
106,673 |
|
Other non-current assets |
|
|
91,161 |
|
|
|
107,329 |
|
Total assets |
|
$ |
2,946,284 |
|
|
$ |
2,875,013 |
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Current portion of long-term debt |
|
$ |
15,088 |
|
|
$ |
14,531 |
|
Accounts payable |
|
|
68,943 |
|
|
|
54,022 |
|
Accrued expenses and other liabilities |
|
|
155,543 |
|
|
|
163,283 |
|
Income taxes payable |
|
|
109 |
|
|
|
574 |
|
Total current liabilities |
|
|
239,683 |
|
|
|
232,410 |
|
Long-term debt, net |
|
|
1,079,280 |
|
|
|
1,085,055 |
|
Deferred tax liabilities, net |
|
|
248,967 |
|
|
|
264,111 |
|
Other non-current liabilities |
|
|
66,896 |
|
|
|
70,403 |
|
Total liabilities |
|
|
1,634,826 |
|
|
|
1,651,979 |
|
|
|
|
|
|
||||
Stockholders’ equity |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
243 |
|
|
|
241 |
|
Additional paid-in capital |
|
|
1,080,894 |
|
|
|
1,069,878 |
|
Common stock in treasury; 28,666,369 and 28,666,369 at |
|
|
(357,755 |
) |
|
|
(357,415 |
) |
Retained earnings |
|
|
580,909 |
|
|
|
500,222 |
|
Accumulated other comprehensive income |
|
|
7,167 |
|
|
|
10,108 |
|
Total stockholders’ equity |
|
|
1,311,458 |
|
|
|
1,223,034 |
|
Total liabilities, redeemable stock, and stockholders’ equity |
|
$ |
2,946,284 |
|
|
$ |
2,875,013 |
|
Unaudited Consolidated Statements of Operations (Dollars in thousands, except per share data) |
|||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|||||||
Net sales |
|
$ |
278,469 |
|
|
$ |
258,967 |
|
|
$ |
992,452 |
|
$ |
1,314,136 |
|
Cost of sales |
|
|
141,331 |
|
|
|
149,475 |
|
|
|
515,502 |
|
|
717,101 |
|
Gross profit |
|
|
137,138 |
|
|
|
109,492 |
|
|
|
476,950 |
|
|
597,035 |
|
Selling, general, and administrative expense |
|
|
61,550 |
|
|
|
60,515 |
|
|
|
233,607 |
|
|
248,812 |
|
Research, development, and engineering expense |
|
|
5,520 |
|
|
|
5,948 |
|
|
|
24,547 |
|
|
22,359 |
|
Acquisition and restructuring related expense (income) |
|
|
6,993 |
|
|
|
(1,337 |
) |
|
|
13,213 |
|
|
8,162 |
|
Amortization of intangible assets |
|
|
7,584 |
|
|
|
8,301 |
|
|
|
30,361 |
|
|
32,129 |
|
Operating income |
|
|
55,491 |
|
|
|
36,065 |
|
|
|
175,222 |
|
|
285,573 |
|
Interest expense, net |
|
|
17,645 |
|
|
|
16,282 |
|
|
|
73,584 |
|
|
51,387 |
|
Other (income) expense, net |
|
|
(1,247 |
) |
|
|
(3,107 |
) |
|
|
551 |
|
|
(51 |
) |
Total other expense |
|
|
16,398 |
|
|
|
13,175 |
|
|
|
74,135 |
|
|
51,336 |
|
Income from operations before income taxes |
|
|
39,093 |
|
|
|
22,890 |
|
|
|
101,087 |
|
|
234,237 |
|
Provision for income taxes |
|
|
8,057 |
|
|
|
6,922 |
|
|
|
20,400 |
|
|
54,890 |
|
Net income |
|
$ |
31,036 |
|
|
$ |
15,968 |
|
|
$ |
80,687 |
|
$ |
179,347 |
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings per share |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
0.15 |
|
|
$ |
0.08 |
|
|
$ |
0.38 |
|
$ |
0.82 |
|
Diluted |
|
$ |
0.14 |
|
|
$ |
0.07 |
|
|
$ |
0.37 |
|
$ |
0.78 |
|
|
|
|
|
|
|
|
|
|
|||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
|
213,768,108 |
|
|
|
211,406,214 |
|
|
|
213,144,063 |
|
|
219,945,024 |
|
Diluted |
|
|
220,848,098 |
|
|
|
219,958,655 |
|
|
|
220,688,616 |
|
|
229,726,497 |
|
Unaudited Consolidated Statements of Cash Flows (In thousands) |
|
Year Ended |
||||||
|
|
|
|
|||||
Cash flows from operating activities |
|
|
|
|
||||
Net income |
|
$ |
80,687 |
|
|
$ |
179,347 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
||||
Depreciation |
|
|
15,983 |
|
|
|
19,246 |
|
Amortization of intangible assets |
|
|
37,079 |
|
|
|
38,393 |
|
Amortization of deferred debt issuance fees |
|
|
4,696 |
|
|
|
3,271 |
|
Stock-based compensation |
|
|
9,165 |
|
|
|
7,948 |
|
Deferred income taxes |
|
|
(12,786 |
) |
|
|
(5,345 |
) |
Allowance for bad debts |
|
|
(1,067 |
) |
|
|
1,934 |
|
Loss on impairment |
|
|
6,720 |
|
|
|
— |
|
Loss on sale of property, plant and equipment |
|
|
1,000 |
|
|
|
6,128 |
|
Changes in operating assets and liabilities |
|
|
|
|
||||
Accounts receivable |
|
|
(58,700 |
) |
|
|
(3,409 |
) |
Inventories |
|
|
67,824 |
|
|
|
(35,117 |
) |
Other current and non-current assets |
|
|
24,820 |
|
|
|
(40,197 |
) |
Accounts payable |
|
|
14,551 |
|
|
|
(36,773 |
) |
Accrued expenses and other liabilities |
|
|
(5,432 |
) |
|
|
(19,482 |
) |
Net cash provided by operating activities |
|
|
184,540 |
|
|
|
115,944 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Purchases of property, plant, and equipment |
|
|
(30,994 |
) |
|
|
(29,625 |
) |
Purchases of short-term investments |
|
|
(25,000 |
) |
|
|
— |
|
Acquisitions, net of cash acquired |
|
|
— |
|
|
|
(62,952 |
) |
Proceeds from sale of property, plant, and equipment |
|
|
613 |
|
|
|
4 |
|
Net cash used in investing activities |
|
|
(55,381 |
) |
|
|
(92,573 |
) |
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Purchases of common stock for treasury |
|
|
(340 |
) |
|
|
(343,349 |
) |
Proceeds from issuance of long-term debt |
|
|
5,448 |
|
|
|
129,725 |
|
Debt issuance costs |
|
|
— |
|
|
|
(8,547 |
) |
Payments of long-term debt |
|
|
(12,518 |
) |
|
|
(10,445 |
) |
Proceeds from revolving credit facility |
|
|
144,100 |
|
|
|
150,000 |
|
Payments on revolving credit facility |
|
|
(144,100 |
) |
|
|
(150,000 |
) |
Proceeds from issuance of short term debt |
|
|
6,130 |
|
|
|
8,119 |
|
Payments of short term debt |
|
|
(6,894 |
) |
|
|
(5,063 |
) |
Other, net |
|
|
562 |
|
|
|
320 |
|
Net cash used in financing activities |
|
|
(7,612 |
) |
|
|
(229,240 |
) |
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
|
373 |
|
|
|
(3,750 |
) |
Change in cash and cash equivalents |
|
|
121,920 |
|
|
|
(209,619 |
) |
Cash and cash equivalents, beginning of year |
|
|
56,177 |
|
|
|
265,796 |
|
Cash and cash equivalents, end of year |
|
$ |
178,097 |
|
|
$ |
56,177 |
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information: |
|
|
|
|
||||
Cash paid-interest |
|
$ |
75,658 |
|
|
$ |
51,499 |
|
Cash paid-income taxes |
|
|
16,420 |
|
|
|
99,395 |
|
Equipment financed under finance leases |
|
|
(21 |
) |
|
|
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 |
|
$ |
31,036 |
|
|
$ |
15,968 |
|
|
$ |
80,687 |
|
|
$ |
179,347 |
|
Depreciation |
|
|
2,965 |
|
|
|
5,315 |
|
|
|
15,983 |
|
|
|
19,246 |
|
Amortization |
|
|
9,276 |
|
|
|
9,956 |
|
|
|
37,079 |
|
|
|
38,393 |
|
Interest expense |
|
|
17,645 |
|
|
|
16,282 |
|
|
|
73,584 |
|
|
|
51,387 |
|
Income taxes |
|
|
8,057 |
|
|
|
6,922 |
|
|
|
20,400 |
|
|
|
54,890 |
|
EBITDA |
|
|
68,979 |
|
|
|
54,443 |
|
|
|
227,733 |
|
|
|
343,263 |
|
Stock-based compensation (a) |
|
|
269 |
|
|
|
354 |
|
|
|
1,270 |
|
|
|
1,602 |
|
Currency exchange items (b) |
|
|
(490 |
) |
|
|
(1,850 |
) |
|
|
786 |
|
|
|
926 |
|
Acquisition and restructuring related expense, net (c) |
|
|
6,993 |
|
|
|
(1,337 |
) |
|
|
13,213 |
|
|
|
8,162 |
|
Other (d) |
|
|
(96 |
) |
|
|
1,652 |
|
|
|
4,271 |
|
|
|
13,622 |
|
Total Adjustments |
|
|
6,676 |
|
|
|
(1,181 |
) |
|
|
19,540 |
|
|
|
24,312 |
|
Adjusted EBITDA |
|
$ |
75,655 |
|
|
$ |
53,262 |
|
|
$ |
247,273 |
|
|
$ |
367,575 |
|
Adjusted EBITDA margin |
|
|
27.2 |
% |
|
|
20.6 |
% |
|
|
24.9 |
% |
|
|
28.0 |
% |
(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 unrealized non-cash losses (gains) on foreign denominated monetary assets and liabilities and foreign currency contracts.
|
(c) |
|
Adjustments in the fiscal quarter ended
|
|
|
Adjustments in the fiscal quarter ended
|
|
|
Adjustments in the year ended
|
|
|
Adjustments in the year ended
|
(d) |
|
Adjustments in the fiscal quarter ended
|
|
|
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 |
|
$ |
31,036 |
|
|
$ |
15,968 |
|
|
$ |
80,687 |
|
|
$ |
179,347 |
|
Tax adjustments (a) |
|
|
974 |
|
|
|
1,164 |
|
|
|
(1,930 |
) |
|
|
(2,676 |
) |
Other adjustments and amortization: |
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation (b) |
|
|
269 |
|
|
|
354 |
|
|
|
1,270 |
|
|
|
1,602 |
|
Currency exchange items (c) |
|
|
(490 |
) |
|
|
(1,850 |
) |
|
|
786 |
|
|
|
926 |
|
Acquisition and restructuring related expense, net (d) |
|
|
6,993 |
|
|
|
(1,337 |
) |
|
|
13,213 |
|
|
|
8,162 |
|
Other (e) |
|
|
(96 |
) |
|
|
1,652 |
|
|
|
4,271 |
|
|
|
13,622 |
|
Total other adjustments |
|
|
6,676 |
|
|
|
(1,181 |
) |
|
|
19,540 |
|
|
|
24,312 |
|
Amortization |
|
|
9,276 |
|
|
|
9,956 |
|
|
|
37,079 |
|
|
|
38,393 |
|
Tax effect (f) |
|
|
(2,890 |
) |
|
|
(2,207 |
) |
|
|
(12,507 |
) |
|
|
(15,379 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Certain transactional-related adjustments (g): |
|
|
|
|
|
|
|
|
||||||||
Acquisitions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,761 |
|
Tax effect (f) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(678 |
) |
Adjusted net income |
|
$ |
45,072 |
|
|
$ |
23,700 |
|
|
$ |
122,869 |
|
|
$ |
226,080 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding, basic |
|
|
213,768,108 |
|
|
|
211,406,214 |
|
|
|
213,144,063 |
|
|
|
219,945,024 |
|
Weighted average number of common shares outstanding, diluted |
|
|
220,848,098 |
|
|
|
219,958,655 |
|
|
|
220,688,616 |
|
|
|
229,726,497 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic EPS |
|
$ |
0.15 |
|
|
$ |
0.08 |
|
|
$ |
0.38 |
|
|
$ |
0.82 |
|
Diluted EPS |
|
$ |
0.14 |
|
|
$ |
0.07 |
|
|
$ |
0.37 |
|
|
$ |
0.78 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted basic EPS |
|
$ |
0.21 |
|
|
$ |
0.11 |
|
|
$ |
0.58 |
|
|
$ |
1.03 |
|
Adjusted diluted EPS |
|
$ |
0.20 |
|
|
$ |
0.11 |
|
|
$ |
0.56 |
|
|
$ |
0.98 |
|
(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 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 fiscal quarter ended
|
|
|
Adjustments in the year ended
|
|
|
Adjustments in the year ended
|
(f) |
|
The tax effect represents the immediately preceding adjustments at the normalized tax rates as discussed in footnote (a) above.
|
(g) |
|
The adjustments 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 |
|
$ |
278,469 |
|
|
$ |
238,150 |
|
|
$ |
40,319 |
|
|
$ |
258,967 |
|
|
$ |
216,809 |
|
|
$ |
42,158 |
|
Gross profit |
|
|
137,138 |
|
|
|
121,730 |
|
|
|
15,408 |
|
|
|
109,492 |
|
|
|
93,130 |
|
|
|
16,362 |
|
Gross profit margin % |
|
|
49.2 |
% |
|
|
51.1 |
% |
|
|
38.2 |
% |
|
|
42.3 |
% |
|
|
43.0 |
% |
|
|
38.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from operations before income taxes |
|
$ |
39,093 |
|
|
|
|
|
|
$ |
22,890 |
|
|
|
|
|
||||||||
Expenses not allocated to segments |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate expense, net |
|
|
8,882 |
|
|
|
|
|
|
|
6,142 |
|
|
|
|
|
||||||||
Acquisition and restructuring related expense (income) |
|
|
6,993 |
|
|
|
|
|
|
|
(1,337 |
) |
|
|
|
|
||||||||
Amortization of intangible assets |
|
|
7,584 |
|
|
|
|
|
|
|
8,301 |
|
|
|
|
|
||||||||
Interest expense, net |
|
|
17,645 |
|
|
|
|
|
|
|
16,282 |
|
|
|
|
|
||||||||
Other (income) expense, net |
|
|
(1,247 |
) |
|
|
|
|
|
|
(3,107 |
) |
|
|
|
|
||||||||
Segment income |
|
$ |
78,950 |
|
|
$ |
71,079 |
|
|
$ |
7,871 |
|
|
$ |
49,171 |
|
|
$ |
40,773 |
|
|
$ |
8,398 |
|
Segment income margin % |
|
|
28.4 |
% |
|
|
29.8 |
% |
|
|
19.5 |
% |
|
|
19.0 |
% |
|
|
18.8 |
% |
|
|
19.9 |
% |
Depreciation |
|
$ |
2,904 |
|
|
$ |
2,658 |
|
|
$ |
246 |
|
|
$ |
4,809 |
|
|
$ |
4,614 |
|
|
$ |
195 |
|
Amortization |
|
|
1,692 |
|
|
|
1,692 |
|
|
|
— |
|
|
|
1,656 |
|
|
|
1,656 |
|
|
|
— |
|
Stock-based compensation (a) |
|
|
31 |
|
|
|
20 |
|
|
|
11 |
|
|
|
(617 |
) |
|
|
(566 |
) |
|
|
(51 |
) |
Other (b) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
568 |
|
|
|
716 |
|
|
|
(148 |
) |
Total adjustments |
|
|
4,627 |
|
|
|
4,370 |
|
|
|
257 |
|
|
|
6,416 |
|
|
|
6,420 |
|
|
|
(4 |
) |
Adjusted segment income |
|
$ |
83,577 |
|
|
$ |
75,449 |
|
|
$ |
8,128 |
|
|
$ |
55,587 |
|
|
$ |
47,193 |
|
|
$ |
8,394 |
|
Adjusted segment income margin % |
|
|
30.0 |
% |
|
|
31.7 |
% |
|
|
20.2 |
% |
|
|
21.5 |
% |
|
|
21.8 |
% |
|
|
19.9 |
% |
(a) |
|
Represents non-cash stock-based compensation expense related to equity awards issued to management, employees, and directors.
|
(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 |
|
$ |
992,452 |
|
|
$ |
823,276 |
|
|
$ |
169,176 |
|
|
$ |
1,314,136 |
|
|
$ |
1,108,859 |
|
|
$ |
205,277 |
|
Gross profit |
|
|
476,950 |
|
|
|
410,641 |
|
|
|
66,309 |
|
|
|
597,035 |
|
|
|
514,855 |
|
|
|
82,180 |
|
Gross profit margin % |
|
|
48.1 |
% |
|
|
49.9 |
% |
|
|
39.2 |
% |
|
|
45.4 |
% |
|
|
46.4 |
% |
|
|
40.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from operations before income taxes |
|
$ |
101,087 |
|
|
|
|
|
|
$ |
234,237 |
|
|
|
|
|
||||||||
Expenses not allocated to segments |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate expense, net |
|
|
30,147 |
|
|
|
|
|
|
|
30,151 |
|
|
|
|
|
||||||||
Acquisition and restructuring related expense |
|
|
13,213 |
|
|
|
|
|
|
|
8,162 |
|
|
|
|
|
||||||||
Amortization of intangible assets |
|
|
30,361 |
|
|
|
|
|
|
|
32,129 |
|
|
|
|
|
||||||||
Interest expense, net |
|
|
73,584 |
|
|
|
|
|
|
|
51,387 |
|
|
|
|
|
||||||||
Other (income) expense, net |
|
|
551 |
|
|
|
|
|
|
|
(51 |
) |
|
|
|
|
||||||||
Segment income |
|
$ |
248,943 |
|
|
$ |
215,425 |
|
|
$ |
33,518 |
|
|
$ |
356,015 |
|
|
$ |
308,627 |
|
|
$ |
47,388 |
|
Segment income margin % |
|
|
25.1 |
% |
|
|
26.2 |
% |
|
|
19.8 |
% |
|
|
27.1 |
% |
|
|
27.8 |
% |
|
|
23.1 |
% |
Depreciation |
|
$ |
15,550 |
|
|
$ |
14,610 |
|
|
$ |
940 |
|
|
$ |
17,815 |
|
|
$ |
17,049 |
|
|
$ |
766 |
|
Amortization |
|
|
6,718 |
|
|
|
6,718 |
|
|
|
— |
|
|
|
6,265 |
|
|
|
6,265 |
|
|
|
— |
|
Stock-based compensation (a) |
|
|
482 |
|
|
|
437 |
|
|
|
45 |
|
|
|
(434 |
) |
|
|
(494 |
) |
|
|
60 |
|
Other (b) |
|
|
503 |
|
|
|
503 |
|
|
|
— |
|
|
|
9,534 |
|
|
|
9,332 |
|
|
|
202 |
|
Total adjustments |
|
|
23,253 |
|
|
|
22,268 |
|
|
|
985 |
|
|
|
33,180 |
|
|
|
32,152 |
|
|
|
1,028 |
|
Adjusted segment income |
|
$ |
272,196 |
|
|
$ |
237,693 |
|
|
$ |
34,503 |
|
|
$ |
389,195 |
|
|
$ |
340,779 |
|
|
$ |
48,416 |
|
Adjusted segment income margin % |
|
|
27.4 |
% |
|
|
28.9 |
% |
|
|
20.4 |
% |
|
|
29.6 |
% |
|
|
30.7 |
% |
|
|
23.6 |
% |
(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 |
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