Hayward (HAYW) - 2024 Q3 - Quarterly Results

Financial Performance - Net sales increased by 3% year-over-year to $227.6 million for Q3 fiscal 2024[3] - Net income rose by 40% year-over-year to$ 16.5 million, with a net income margin expansion of 190 basis points to 7.3%[9] - Adjusted EBITDA increased by 8% year-over-year to $51.1 million, with an adjusted EBITDA margin expansion of 110 basis points to 22.5%[9] - Gross profit increased by 7% to$ 113.1 million, with gross profit margin rising 190 basis points to 49.7%[4] - Operating income increased by 16% to $33.4 million, resulting in an operating margin of 14.7%, up 160 basis points from the prior year[6] - Net income for the nine months ended September 28, 2024, was$ 63,922 thousand, up from $49,651 thousand in the same period of 2023, indicating a growth of approximately 28.67%[29] - Adjusted EBITDA for the nine months ended September 28, 2024, was$ 178,748,000, up from $171,618,000 in the same period of 2023, reflecting a growth of 4.6%[30] - The net income margin improved to 8.8% for the nine months ended September 28, 2024, compared to 7.0% for the same period in 2023[30] - Adjusted EBITDA margin increased to 24.7% for the nine months ended September 28, 2024, compared to 24.0% for the same period in 2023[30] Cash Flow and Assets - Cash flow from operations for the year-to-date increased by 27% year-over-year to$ 275.8 million[1] - Cash and cash equivalents increased to $274,184 thousand as of September 28, 2024, compared to$ 178,097 thousand at the end of 2023, marking a rise of about 53.93%[29] - Total current assets decreased to $649,552 thousand as of September 28, 2024, from$ 724,741 thousand at December 31, 2023, a decline of approximately 10.37%[25] - Total liabilities decreased to $1,516,709 thousand as of September 28, 2024, from$ 1,634,826 thousand at December 31, 2023, a reduction of about 7.21%[26] Sales and Market Segments - North America segment net sales increased by 5% to $195.0 million, driven by positive net price impact and volume growth in Canada[10] - For the three months ended September 28, 2024, the company reported net sales of$ 194.968 million in North America and $32.601 million in Europe & Rest of World, compared to$ 185.070 million and $35.234 million for the same period in 2023, representing a year-over-year increase of 5.1% in North America and a decrease of 7.4% in E&RW[38] - For the nine months ended September 28, 2024, net sales were$ 609.510 million in North America and $115.021 million in E&RW, compared to$ 585.126 million and $128.857 million for the same period in 2023, representing a year-over-year increase of 4.2% in North America and a decrease of 10.8% in E&RW[40] Expenses and Costs - SG&A expenses increased by 9% to$ 64.5 million, representing 28.3% of net sales, up from 27.0% in the prior year[5] - Research, development, and engineering expenses for the nine months ended September 28, 2024, were $18,870 thousand, slightly down from$ 19,027 thousand in the same period of 2023, a decrease of about 0.83%[28] - The company incurred $1.3 million in transaction and integration costs associated with the acquisition of ChlorKing during the nine months ended September 28, 2024[32] - The company incurred$ 0.7 million in transaction and integration costs associated with the acquisition of the ChlorKing business during the three months ended September 28, 2024[37] Future Outlook - The company expects full-year 2024 net sales of $1.020 billion to$ 1.040 billion, reflecting a 3% to 5% increase from fiscal year 2023[14] - ChlorKing integration is progressing well, contributing positively to the commercial pool business[2] - The company plans to continue its market expansion and integration efforts following the acquisition of ChlorKing, which is expected to enhance operational efficiencies and revenue growth[39] Earnings Per Share - The company reported a basic earnings per share of $0.30 for the nine months ended September 28, 2024, compared to$ 0.23 for the same period in 2023, an increase of approximately 30.43%[28] - Adjusted diluted EPS for the three months ended September 28, 2024, was $0.11, up from$ 0.09 in the same period of 2023, reflecting a 22.2% increase[37]