Sales and Revenue - North America and Europe & Rest of World segments accounted for approximately 83% and 17% of total net sales for Fiscal Year 2023, compared to 84% and 16% for Fiscal Year 2022[26]. - The largest customer represented approximately 36% of net sales in Fiscal Year 2023, with no other customer exceeding 10%[35]. - Approximately 50% of net sales are derived from non-discretionary products essential for pool operation[33]. - In Fiscal Year 2023, approximately 80% of residential pool equipment in the U.S. was sold through specialty distributors, with 13% sold directly to retailers and 7% to builders[42]. Operational Efficiency and Employee Engagement - The company employs approximately 1,875 full-time equivalent employees, with about 26% located at international sites[55]. - The company implemented over 680 employee suggestions for improvements during the twelve months ended December 31, 2023, fostering a culture of open feedback[70]. - The company is in the process of implementing a new ERP system and a human resources information system to improve operational efficiency, which may impact financial reporting[117]. Sustainability and Governance - The company is committed to sustainability, focusing on environmentally friendly and energy-efficient products, and has established a framework based on four pillars: Products, Planet, People, and Principles[63][64]. - In 2023, the company published an updated data sheet on Sustainability, enhancing transparency and information availability on its sustainability webpage[65]. - The company is committed to transparency and governance in its sustainability strategy, overseen by the Board of Directors[71]. Intellectual Property and Innovation - The company holds approximately 207 issued U.S. patents and 241 issued foreign patents as of December 31, 2023, covering various technologies[52]. - The company has approximately 50 pending U.S. patent applications and 68 pending foreign patent applications, indicating ongoing efforts to protect its intellectual property[144]. - The company faces risks related to the enforcement of its intellectual property rights, which could adversely affect its competitive position[149]. Financial Position and Debt - As of December 31, 2023, the company's total indebtedness was approximately $1,111.9 million, including $1,098.4 million under the first lien term loan facility[155]. - The company has an asset-based lending facility (ABL Facility) that allows borrowing up to an additional $425.0 million, with a current loan balance of zero[155]. - The company may require additional financing to fund operations or acquisitions, but such financing may not be available on acceptable terms[165]. - The company may incur additional debt in the future, which would increase its debt service obligations and associated risks[164]. Supply Chain and Manufacturing - The business is seasonal, with higher sales typically in the second and fourth quarters, driven by the summer pool season[45]. - The company relies on single-source and sole-source suppliers for certain components, which poses risks to product manufacturing and supply continuity[121][122]. - The company has experienced material cost inflation due to the COVID-19 pandemic, impacting raw material prices and manufacturing costs[109]. - The company experienced higher costs and delays due to supply chain disruptions related to the COVID-19 pandemic, impacting profitability[126]. - Manufacturing disruptions from catastrophic events could hinder the company's ability to meet customer demands and increase operational costs[125]. Regulatory and Compliance Risks - The company is subject to various governmental regulations, including environmental and safety regulations, which may result in increased compliance costs[129]. - Climate change and regulatory responses may adversely impact the company's business, including potential limitations on new pool construction due to drought conditions[142]. - Compliance with data privacy regulations, such as GDPR and CCPA, may impose significant costs and liabilities on the company[133]. - Violations of anti-corruption laws could lead to significant penalties and adversely affect the company's reputation and financial condition[140]. Market and Stock Performance - The market price of the company's common stock has been volatile and may fluctuate significantly due to various uncontrollable factors[172]. - The company is currently subject to a securities class action lawsuit, which may incur substantial costs and divert management's attention from business operations[172].

February 29, 2024 Hayward Holdings Announces Fourth Quarter and Full Year 2023 Financial Results and Introduces 2024 Guidance FOURTH QUARTER FISCAL 2023 SUMMARY FULL FISCAL YEAR 2023 HIGHLIGHTS CHARLOTTE, N.C. -- (BUSINESS WIRE) -- Hayward Holdings, Inc. (NYSE: HAYW) ("Hayward" or the "Company"), a global designer, manufacturer, and marketer of a broad portfolio of pool and outdoor living technology, today announced financial results for the fourth quarter and full fiscal year ended December 31, 2023. CEO C ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 1415 Vantage Park Drive Suite 400 Charlotte, NC (Address of Principal Executive Office) 82-2060643 (I.R.S. Employer Identification No.) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file ...

Financial Data and Key Metrics Changes - The company reported a gross margin expansion to 47.8%, an increase of nearly 400 basis points year-over-year, despite a 10% decline in net sales to $220 million [5][33][142] - Adjusted EBITDA for the third quarter was $47 million, with a margin of 21.4% [35][154] - Total liquidity at the end of the third quarter was $402 million, including $244 million in cash and cash equivalents [16] Business Line Data and Key Metrics Changes - North American net sales declined 9% to $185 million, driven by a 5% reduction in volumes and a 4% unfavorable net price impact [14] - Commercial pool sales increased double digits, indicating robust demand in that segment [142] - The aftermarket maintenance and repair segment remained resilient, while discretionary product categories were more affected by macroeconomic conditions [4][7] Market Data and Key Metrics Changes - Sales in Canada decreased by 16%, attributed to tougher macro conditions and a shorter season [36] - In Europe, net sales decreased 15% to $35 million, with a 22% decline in volume but benefiting from favorable price realization [37] - The Rest of World segment saw a 23% decline, with macro pressures impacting demand [158] Company Strategy and Development Direction - The company is consolidating its manufacturing footprint by moving operations from Madrid to a newer facility in Barcelona, which is expected to yield annual cost savings of approximately $2 million [13] - Investments are being made in technology and operational capabilities, including the development of IoT connected products [139] - The company aims to maintain a disciplined financial policy, focusing on strategic growth investments and shareholder returns while reducing net leverage [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term health of the pool industry, citing consistent growth and favorable trends in the aftermarket [20][39] - The company anticipates a decrease in consolidated net sales of 24% to 26% for the full year 2023, with adjusted EBITDA expected between $245 million and $255 million [18][141] - Management noted that the destocking process is largely behind them, but some regions still require recalibration [56] Other Important Information - The company generated free cash flow of $194 million year-to-date, a 62% increase compared to the prior year [148] - The effective tax rate forecast remains approximately 25% for the fourth quarter [18] Q&A Session Summary Question: What is the impact of negative pricing and higher rebates? - Management clarified that the gross profit margins were strong despite a 10% decline in net sales, with net pricing up 5% in the quarter [24][25] Question: How is the company addressing the cautious approach of channel partners? - Management noted that channel partners are being cautious with inventory, leading to lighter in-season orders [61][63] Question: What are the expectations for the Canadian market? - The Canadian market is experiencing destocking issues, with macroeconomic factors impacting discretionary income [48][94] Question: What is the outlook for pricing in 2024? - The company announced a price increase of up to 5% for the 2024 season, with expectations for positive price realization [50][95] Question: How does the company view the resilience of the aftermarket? - Management emphasized that the break-fix segment of the aftermarket remains resilient, despite challenges in new construction [64]

THIRD QUARTER 2023 EARNINGS CALL KEVIN HOLLERAN President and Chief Executive Officer KEVIN MACZKA Vice President of Investor Relations 9 HAYWARD® © 2023 Hayward Holdings, Inc. 2 Forward-Looking Statements The forward-looking statements included in this presentation are made only as of the date of this presentation. Unless required by United States federal securities laws, Hayward neither intends nor assumes any obligation to update these forward-looking statements for any reason to conform these statements ...

SECOND QUARTER 2023 EARNINGS August 2, 2023 EIFION JONES Senior Vice President and Chief Financial Officer © 2023 Hayward Holdings, Inc. 2 The forward-looking statements included in this presentation are made only as of the date of this presentation. Unless required by United States federal securities laws, Hayward neither intends nor assumes any obligation to update these forward-looking statements for any reason to conform these statements to actual results or to changes in Hayward's expectations. Key Mes ...

Company Participants Conference Call Participants Operator I will now turn the call over to Kevin Maczka, Vice President, Investor Relations. Mr. Maczka, you may begin. Thank you, and good morning, everyone. We issued our second quarter 2023 earnings press release this morning, which has been posted to the Investor Relations section of our website at investor.hayward.com. There, you can also find an earnings slide presentation that we will reference during this call. I'm joined today by Kevin Holleran, Pres ...

INVESTOR PRESENTATION May 2023 © 2023 Hayward Holdings, Inc. NYSE: HAYW SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Examples of forward-looking statements include, among others, statements Hayward makes regarding: Hayward's 2023 guidance; business plans and objectives; anticipated SG&A cost savings; general economic and industry trends; business prospects; future product development and acquisition strategies; and growth and expansion opportunities. The forward-looking statements in this presentation ...

Company participants Welcome to Hayward Holdings First Quarter 2023 Earnings Call. My name is Jordan, and I will be the operator for today's call. [Operator Instructions] Please note this conference is being recorded. Before we begin, I would like to remind everyone that during this call, the company may make certain statements that are considered forward-looking in nature, including management's outlook for 2023 and future periods. Such statements are subject to a variety of risks and uncertainties, includ ...

Sales and Market Segmentation - North America and Europe & Rest of World segments accounted for approximately 84% and 16% of total net sales for Fiscal Year 2022, respectively [27]. - The largest customer, Pool Corporation, represented approximately 35% of net sales in Fiscal Year 2022, with no other customer exceeding 10% [36]. - Approximately 50% of net sales are derived from non-discretionary products essential for pool operation [33]. - The average wholesale price of equipment per pool ranges from $1,800 for entry-level pools to well above $12,000 for premium pools [33]. - In Fiscal Year 2022, approximately 75% of residential pool equipment in the U.S. was sold through specialty distributors, 18% directly to retailers, and 7% to builders [43]. Supplier and Employee Relations - The company maintains relationships with approximately 700 suppliers, with an average relationship of over 15 years across the top 30 suppliers [38]. - The company employs approximately 2,000 full-time equivalent employees, with about 25% located internationally [55]. - In 2022, over 550 employee suggestions for improvements were implemented, reflecting a strong feedback culture [67]. Sustainability and Environmental Impact - The company’s environmentally sustainable products can conserve up to 92% more water than standard sand filters, allowing for higher pricing on key products [32]. - The company is committed to sustainability and has established four ESG pillars: Products, People, Planet, and Principles [65]. - The company maintains an ESG section on its website to provide transparency and detailed information to stakeholders [70]. - The company has been involved in investigation and remediation activities related to environmental contamination, which could lead to material future costs [123]. - The company’s operations may be impacted by climate change and related regulatory responses, potentially disrupting production capabilities and supply chains [133]. Financial Performance and Risks - The company has experienced material cost inflation due to the COVID-19 pandemic, impacting raw material prices and manufacturing costs [106]. - The principal raw materials include resins and metals, which are subject to commodity price fluctuations that could adversely affect the cost of goods sold [118]. - The company expects an increase in sales denominated in non-dollar currencies, which may introduce currency transaction risks [104]. - The company may face significant risks if unable to generate sufficient cash flow from operations to service its debt obligations [147]. - The company may require additional financing for operations or acquisitions, which may not be available on acceptable terms [154]. Debt and Capital Structure - As of December 31, 2022, the company's total indebtedness was approximately $1,121.0 million, including $1,109.7 million under the first lien term loan facility [145]. - The company has revolving loan commitments of up to $425.0 million under its asset-based lending facility, with a peak season commitment of $475.0 million [145]. - The company had approximately $208.4 million of undrawn lines of credit available under the ABL Facility as of December 31, 2022 [153]. - The agreements governing the company's indebtedness impose restrictions that may limit its ability to engage in beneficial actions, including incurring additional debt and making strategic acquisitions [149]. Intellectual Property and Compliance - The company holds approximately 209 issued U.S. patents and 231 issued foreign patents as of December 31, 2022, covering various technologies [52]. - The company has approximately 59 pending U.S. patent applications and 78 pending foreign patent applications, indicating ongoing investment in intellectual property [135]. - The company relies on third-party intellectual property for certain products, which may limit its competitive advantage if licenses are not available on commercially acceptable terms [142]. - The company may be subject to claims regarding the wrongful use of trade secrets or intellectual property, which could lead to ownership disputes and litigation [143]. - The company is subject to various governmental regulations, including those related to environmental protection and product safety, which may increase compliance costs [121]. Internal Controls and Reporting - The company identified material weaknesses in its internal control over financial reporting, which could affect the accuracy and timeliness of financial reporting [162]. - Remediation efforts for the identified material weaknesses include enhancing the internal control environment and implementing IT general controls [166]. - The company has not yet remediated the material weaknesses, and the effectiveness of the remediation plan cannot be guaranteed [168]. - The majority of the voting power in the election of directors is controlled by sponsors, which may limit stockholder protections [161]. - The company has not documented an effective control environment, contributing to the identified material weaknesses [162]. Market and Stock Performance - The stock price has been volatile and may fluctuate significantly due to various uncontrollable factors [173]. - Future sales of common stock may depress the stock price and dilute existing stockholders' rights [171]. - The company may face restricted access to capital markets if it fails to maintain effective internal controls [170].