Hayward (US:HAYW)2025-05-01 11:04Financial Performance - Net sales increased by 8% year-over-year to $228.8 million for Q1 FY 2025, driven by volume growth and favorable pricing [3] - Gross profit rose by 8% to $113.4 million, with a gross profit margin of 49.5%, an increase of 30 basis points [4] - Net income surged by 46% to $14.3 million, expanding the net income margin by 170 basis points to 6.3% [10] - Adjusted EBITDA increased by 9% to $49.1 million, with an adjusted EBITDA margin of 21.5%, up 30 basis points [10] - SG&A expenses rose by 9% to $65.1 million, representing 28.5% of net sales, an increase of 30 basis points from the prior year [5] - Adjusted net income for the three months ended March 29, 2025, was $22.1 million, compared to $16.6 million for the same period in 2024, reflecting a year-over-year increase of 33.5% [38] - The company reported a net income of $14.3 million for the three months ended March 29, 2025, up from $9.8 million in the prior year, representing a 45.4% increase [38] - Adjusted diluted EPS for the three months ended March 29, 2025, was $0.10, compared to $0.08 for the same period in 2024, indicating a 25% increase [38] Segment Performance - North America segment net sales grew by 8% to $187.1 million, aided by the acquisition of ChlorKing [11] - Europe & Rest of World segment net sales increased by 7% to $41.8 million, primarily due to volume growth [12] - Segment income for North America was $43.5 million for the three months ended March 29, 2025, compared to $39.7 million for the same period in 2024, showing an increase of 4.5% [42] - Adjusted segment income margin for North America was 27.1% for the three months ended March 29, 2025, compared to 26.1% for the same period in 2024 [42] Guidance and Future Outlook - Hayward confirms full year 2025 guidance, expecting net sales of approximately $1.060 billion to $1.100 billion and Adjusted EBITDA of $280 million to $290 million [14] - The company continues to leverage its competitive advantages in the pool industry, focusing on technology adoption and market expansion [15] Balance Sheet and Cash Flow - Cash and cash equivalents decreased to $181,333,000 as of March 29, 2025, down from $196,589,000 at the end of 2024 [29] - Total assets as of March 29, 2025, were $2,984,597,000, slightly down from $2,990,624,000 at the end of 2024 [27] - Total liabilities decreased to $1,545,218,000 as of March 29, 2025, from $1,566,977,000 at the end of 2024 [27] Acquisition and Restructuring Costs - The company incurred $1,926,000 in acquisition and restructuring-related expenses during the three months ended March 29, 2025 [28] - The company incurred $3.2 million in compensation expenses related to the retention of key employees from the ChlorKing acquisition, part of a total $6.3 million retention payment [37] - Adjustments for the last twelve months ended March 29, 2025, included a $3.3 million increase in cost of goods sold due to fair value inventory step-up from the ChlorKing acquisition [37] - The company recognized $1.7 million in transaction and integration costs associated with the ChlorKing acquisition for the three months ended March 29, 2025 [40] - The company reported $1.1 million in transaction and integration costs related to the ChlorKing acquisition for the year ended December 31, 2024 [37] Interest and Tax - Interest expense decreased by 27% to $13.7 million, attributed to reduced debt and lower interest rates [7] - The effective tax rate for the three months ended March 29, 2025, was 23.3%, reflecting tax benefits from stock compensation [38]