equity method investment 3,293 2,330
Changes in operating assets
and liabilities:
Trade receivables (35,639) (28,652)
Inventories 25,518 61,738
Prepaid expenses and other
current assets (2,318) (25)
Income tax receivable (6,554) (1,539)
Other assets 645 (4,289)
Accounts payable 10,385 2,085
Accrued expenses and other
current liabilities 3,430 (169)
Other long-term liabilities (622) 2,969
--- ------------- ----------
Net cash provided by
operating activities 55,150 88,123
--- ------------- ----------
Cash flows from investing
activities:
Purchases of property and
equipment (13,861) (28,273)
Acquisitions of businesses, net
of cash acquired (64,046) --
--- ------------- ----------
Net cash used in investing
activities (77,907) (28,273)
--- ------------- ----------
Cash flows from financing
activities:
Payments on long-term debt
borrowings (19,625) (12,437)
Proceeds from borrowings on
revolving credit facilities -- 48,000
Payments on revolving credit
facilities -- (48,000)
Repayments of finance lease
obligations (573) (437)
--- ------------- ----------
Net cash used in financing
activities (20,198) (12,874)
Effect of exchange rate
changes on cash 54 (1,489)
--- ------------- ----------
Net (decrease) increase in cash (42,901) 45,487
Cash at beginning of period 102,763 32,626
--- ------------- ----------
Cash at end of period $ 59,862 $ 78,113
=== ============= ==========
Supplemental cash flow
information:
Cash paid for interest $ 20,481 $ 18,538
Income taxes paid, net 8,919 2,990
Supplemental disclosure of
non-cash investing and
financing activities:
Purchases of property and
equipment included in accounts
payable and accrued expenses $ 1,201 $ 484
Right-of-use operating and
finance lease assets obtained
in exchange for lease
liabilities 3,538 5,766
Latham Group, Inc.
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
(Non-GAAP Reconciliation)
(in thousands)
Fiscal Quarter Ended Three Fiscal Quarters Ended
------------------------------ ------------------------------
September September September September
28, 2024 30, 2023 28, 2024 30, 2023
---------- ----------
Net income
(loss) $ 5,896 $ 6,153 $ 11,310 $ (2,500)
Depreciation and
amortization 11,323 10,500 32,291 29,784
Interest
expense, net 9,155 5,980 20,150 21,270
Income tax
(benefit)
expense (43) 6,686 931 8,642
Loss on sale and
disposal of
property and
equipment 41 118 118 131
Restructuring
charges(a) 132 1,818 497 2,615
Stock-based
compensation
expense(b) 1,844 2,354 5,187 14,887
Unrealized
(gains) losses
on foreign
currency
transactions(c) (722) 1,400 1,668 932
Strategic
initiative
costs(d) 706 1,063 2,680 3,065
Acquisition and
integration
related
costs(e) 1,930 -- 2,305 11
Odessa fire(f) -- 11 -- (760)
Other(g) (433) -- (539) 38
--------- --------- --------- ---------
Adjusted EBITDA $ 29,829 $ 36,083 $ 76,598 $ 78,115
========= ========= ========= =========
Net sales $ 150,496 $ 160,778 $ 421,247 $ 475,625
Net income
(loss) margin 3.9% 3.8% 2.7% (0.5)%
Adjusted EBITDA
margin 19.8% 22.4% 18.2% 16.4%
========= ========= ========= =========
(a) Represents costs related to a cost reduction plan that includes severance and other costs for our executive management changes and additional costs related to our cost reduction plans, which include further actions to reduce our manufacturing overhead by reducing headcount in addition to facility shutdowns.
(b) Represents non-cash stock-based compensation expense.
(c) Represents unrealized foreign currency transaction losses associated with our international subsidiaries.
(d) Represents fees paid to external consultants and other expenses for our strategic initiatives.
(e) Represents acquisition and integration costs, as well as other costs related to potential transactions.
(f) Represents costs incurred and insurance recoveries related to a production facility fire in Odessa, Texas.
(g) Other costs consist of other discrete items as determined by management, primarily including: (i) fees paid to external advisors for various matters and (ii) other items.
Latham Group, Inc.
Net Debt Leverage Ratio
(Non-GAAP Reconciliation)
(in thousands)
September 28, 2024 June 29, 2024
----------------------- ---------------
Total Debt $ 282,753 $ 282,361
Less:
Cash (59,862) (90,768)
--- -------------- ------------
Net Debt 222,891 191,593
LTM Adjusted EBITDA((1) 86,511 92,763
--- -------------- ------------
Net Debt Leverage Ratio 2.6x 2.1x
LTM Pro Forma Adjusted
EBITDA((2) 94,257
Pro Forma Net Debt Leverage 2.4x
Ratio
(1) LTM Adjusted EBITDA is defined as Adjusted EBITDA for the most recent twelve (12) month period.
(2) LTM Pro Forma Adjusted EBITDA includes pre-acquisition portion of Adjusted EBITDA for the trailing twelve months that is not included in historical results.
(END) Dow Jones Newswires
November 05, 2024 16:05 ET (21:05 GMT)
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