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Latham Group (SWIM) Posts Breakeven Q4 Earnings, Tops on Sales
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Latham Group, Inc. (SWIM - Free Report) reported decent fourth-quarter fiscal 2023 results, delivering breakeven earnings and surpassing the Zacks Consensus Estimate for net sales.
On a year-over-year basis, the top line declined, while the bottom line increased from the prior-year quarter’s figure. The downtick was due to lower volumes of in-ground swimming pools.
Inside the Numbers
Latham Group reported breakeven earnings surpassing the Zacks Consensus Estimate of an adjusted loss per share of 14 cents. In the prior-year quarter, the company reported an adjusted loss per share of 17 cents.
Latham Group, Inc. Price, Consensus and EPS Surprise
Total net sales of $90.9 million beat the consensus mark of $88.1 million by 3.1%. However, the top line fell 15.8% on a year-over-year basis.
Segmental Detail
During fourth-quarter 2023, sales in the In-Ground Swimming Pools segment amounted to $45.8 million, down 22.6% from the prior-year quarter’s levels.
Sales in the Covers segment fell 10.1% year over year to $32 million. However, cover sales surpassed the overall market decline, partly due to the increased demand for automatic safety covers.
Liners segment’s sales of $13.1 million dropped 0.5% from the year-earlier quarter’s figure. The segment benefited from strong replacement demand, remaining stable year over year.
Operating Highlights
Gross profit margin came in at 23.3%, up 540 basis points (bps) year over year. The upside was backed by lower material costs and increased labor productivity associated with the company’s cost-reduction efforts.
Total adjusted EBITDA during the reported quarter amounted to $9.9 million, up 125.8% from $4.4 million reported in the prior-year quarter. The adjusted EBITDA margin expanded 680 bps from the prior year to 10.9%.
Fiscal 2023 Highlights
Total net sales in 2023 amounted to $566.5 million compared with $695.7 million in 2022.
Adjusted EBITDA totaled $88 million compared with $143.3 million a year ago.
Adjusted loss per share came in at 2 cents compared with 5 cents reported in the previous year.
Balance Sheet
As of Dec 31, 2023, the company had cash on hand of $102.8 million compared with $32.6 million at fiscal 2022-end. Long-term debt (net of discount, debt issuance costs and current portion) was $280 million, down from $309.6 million at the fiscal 2022-end.
First-Quarter Fiscal 2024 Outlook
For first-quarter fiscal 2024, net sales are projected to be in the range of $98-$104 million, suggesting a fall from $137.7 million a year ago.
The adjusted EBITDA is anticipated to be in the range of $6-$8 million, down from $11 million a year ago.
Fiscal 2024 Outlook
For 2024, net sales are projected to be in the range of $490-$520 million. The adjusted EBITDA is anticipated to be in the range of $60-$70 million.
MasTec, Inc. (MTZ - Free Report) reported impressive results in fourth-quarter 2023, with earnings and revenues beating the Zacks Consensus Estimate. Earnings declined on a year-over-year basis, but revenues increased on the back of strong contributions from the Oil and Gas segment.
MTZ's fourth-quarter results aligned with expectations following a challenging 2023. The company is poised to capitalize on the opportunities and aims to achieve record levels of revenues and adjusted EBITDA in 2024. The robust demand for MTZ's services suggests the potential for double-digit revenues and earnings growth in 2025 and beyond.
Dycom Industries Inc. (DY - Free Report) reported tepid results for fourth-quarter fiscal 2024 (ended Jan 27, 2024). Both the top and bottom lines missed the Zacks Consensus Estimate.
Contract revenues of $952.5 million moved up 3.8% year over year but lagged the consensus mark of $971 million by 2%. Contract revenues decreased 2.5% on an organic basis. Acquisitions contributed $57.5 million to contract revenues. The company’s top five customers contributed 58.6% to total contract revenues, which declined 13% organically. For the fiscal first quarter, DY expects contract revenues to be in line or decline slightly from the first quarter of fiscal 2024 level.
TopBuild Corp. (BLD - Free Report) reported impressive results for fourth-quarter 2023. Its earnings and revenues surpassed the Zacks Consensus Estimate and improved year over year.
The 2023 performance of the company demonstrates a consistent enhancement and profitable expansion, notably in the commercial and industrial sectors. These sectors experienced 4.9% growth in the fourth quarter and 6.2% growth throughout 2023. President and CEO Robert Buck conveyed contentment regarding the company's adeptness in enhancing operational efficiencies and elevating sales and labor productivity. These efforts significantly bolstered revenue growth and margin expansion.
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Latham Group (SWIM) Posts Breakeven Q4 Earnings, Tops on Sales
Latham Group, Inc. (SWIM - Free Report) reported decent fourth-quarter fiscal 2023 results, delivering breakeven earnings and surpassing the Zacks Consensus Estimate for net sales.
On a year-over-year basis, the top line declined, while the bottom line increased from the prior-year quarter’s figure. The downtick was due to lower volumes of in-ground swimming pools.
Inside the Numbers
Latham Group reported breakeven earnings surpassing the Zacks Consensus Estimate of an adjusted loss per share of 14 cents. In the prior-year quarter, the company reported an adjusted loss per share of 17 cents.
Latham Group, Inc. Price, Consensus and EPS Surprise
Latham Group, Inc. price-consensus-eps-surprise-chart | Latham Group, Inc. Quote
Total net sales of $90.9 million beat the consensus mark of $88.1 million by 3.1%. However, the top line fell 15.8% on a year-over-year basis.
Segmental Detail
During fourth-quarter 2023, sales in the In-Ground Swimming Pools segment amounted to $45.8 million, down 22.6% from the prior-year quarter’s levels.
Sales in the Covers segment fell 10.1% year over year to $32 million. However, cover sales surpassed the overall market decline, partly due to the increased demand for automatic safety covers.
Liners segment’s sales of $13.1 million dropped 0.5% from the year-earlier quarter’s figure. The segment benefited from strong replacement demand, remaining stable year over year.
Operating Highlights
Gross profit margin came in at 23.3%, up 540 basis points (bps) year over year. The upside was backed by lower material costs and increased labor productivity associated with the company’s cost-reduction efforts.
Total adjusted EBITDA during the reported quarter amounted to $9.9 million, up 125.8% from $4.4 million reported in the prior-year quarter. The adjusted EBITDA margin expanded 680 bps from the prior year to 10.9%.
Fiscal 2023 Highlights
Total net sales in 2023 amounted to $566.5 million compared with $695.7 million in 2022.
Adjusted EBITDA totaled $88 million compared with $143.3 million a year ago.
Adjusted loss per share came in at 2 cents compared with 5 cents reported in the previous year.
Balance Sheet
As of Dec 31, 2023, the company had cash on hand of $102.8 million compared with $32.6 million at fiscal 2022-end. Long-term debt (net of discount, debt issuance costs and current portion) was $280 million, down from $309.6 million at the fiscal 2022-end.
First-Quarter Fiscal 2024 Outlook
For first-quarter fiscal 2024, net sales are projected to be in the range of $98-$104 million, suggesting a fall from $137.7 million a year ago.
The adjusted EBITDA is anticipated to be in the range of $6-$8 million, down from $11 million a year ago.
Fiscal 2024 Outlook
For 2024, net sales are projected to be in the range of $490-$520 million. The adjusted EBITDA is anticipated to be in the range of $60-$70 million.
Zacks Rank
Latham Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Construction Releases
MasTec, Inc. (MTZ - Free Report) reported impressive results in fourth-quarter 2023, with earnings and revenues beating the Zacks Consensus Estimate. Earnings declined on a year-over-year basis, but revenues increased on the back of strong contributions from the Oil and Gas segment.
MTZ's fourth-quarter results aligned with expectations following a challenging 2023. The company is poised to capitalize on the opportunities and aims to achieve record levels of revenues and adjusted EBITDA in 2024. The robust demand for MTZ's services suggests the potential for double-digit revenues and earnings growth in 2025 and beyond.
Dycom Industries Inc. (DY - Free Report) reported tepid results for fourth-quarter fiscal 2024 (ended Jan 27, 2024). Both the top and bottom lines missed the Zacks Consensus Estimate.
Contract revenues of $952.5 million moved up 3.8% year over year but lagged the consensus mark of $971 million by 2%. Contract revenues decreased 2.5% on an organic basis. Acquisitions contributed $57.5 million to contract revenues. The company’s top five customers contributed 58.6% to total contract revenues, which declined 13% organically. For the fiscal first quarter, DY expects contract revenues to be in line or decline slightly from the first quarter of fiscal 2024 level.
TopBuild Corp. (BLD - Free Report) reported impressive results for fourth-quarter 2023. Its earnings and revenues surpassed the Zacks Consensus Estimate and improved year over year.