Latham (US:SWIM)2022-05-12 16:25Q1 2022 Financial Performance - Net sales increased by 29% to $192 million compared to $149 million in Q1 2021[11] - Adjusted EBITDA increased by 43% to $48 million compared to $34 million in Q1 2021[13] - Adjusted EBITDA margin increased by approximately 250 basis points to 250% of net sales[24] - Gross margins expanded by 160 basis points to 369%[24] Q2 2022 Challenges and Responses - Experienced a temporary shortage of a material used in fiberglass flake production, expected to return to full availability in early Q3'22[17, 18] - Unseasonable weather in April impacted dealers' ability to install pools in the Northeast, Midwest, and Canada[17] - Experienced a fire at the second smallest US fiberglass facility in Odessa, Texas in April, but shifted production to other facilities and expect minimal impact on full year results[17, 18] Fiscal Year 2022 Outlook and Long-Term Targets - Affirmed fiscal 2022 guidance, implying year-over-year net sales growth of 35% to 40% and year-over-year Adjusted EBITDA growth of 32% to 46%[20] - The company projects net sales of $850 million to $880 million and Adjusted EBITDA of $185 million to $205 million for fiscal year 2022[30] - The company is targeting net sales growth of 10% to 12% and Adjusted EBITDA growth of 12% to 15% over the next three to five years[31] Capital Allocation - As of April 2, 2022, the company had $187 million in cash and cash equivalents, $650 million undrawn on its revolving credit facility, and total debt of $3241 million[26] - The company's net debt leverage ratio was 21x at the end of Q1 2022[26] - The company approved a stock repurchase program to repurchase up to $100 million of its shares of Common Stock over the next three years[26]