Hayward Holdings Inc
For the period ended Jun 29, 2024. Filed Jul 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2024 · Filed Jul 30, 2024
HAYW$16.24-0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-30; filed 2024-05-02.
0001834622-24-000038
ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-29; filed 2024-07-30.
0001834622-24-000093
ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 126 previous paragraphs and 167 current paragraphs.
60 unchanged; 51 reworded; 45 added; 15 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 16 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (45)
Current report
Net sales increased to $497.0 million for the six months ended June 29, 2024 from $493.7 million for the six months ended July 1, 2023, an increase of $3.3 million, or 0.7%. See the segment discussion below for further information.
Current report
The net sales increase for the three and six months ended June 29, 2024 was driven by an increase in net price, partially offset by a decline in volume.
Current report
The volume decline in the three months ended June 29, 2024 was due primarily to market declines in the Middle East and Asia and lower new construction and remodels in the US, partially offset by growth in Europe and Canada.
Current report
The volume decline in the six months ended June 29, 2024 was driven primarily by market declines in Europe, Middle East and Asia, partially offset by growth in North America from increased Early Buy shipments.
Current report
Gross profit increased to $145.1 million for the three months ended June 29, 2024 from $136.5 million for the three months ended July 1, 2023, an increase of $8.6 million, or 6.3%.
Current report
Gross profit margin increased to 51.0% for the three months ended June 29, 2024 compared to 48.1% for the three months ended July 1, 2023, an increase of 290 basis points, driven by operational efficiencies in our manufacturing facilities and net price increases.
Current report
Gross profit increased to $249.7 million for the six months ended June 29, 2024 from $234.4 million for the six months ended July 1, 2023, an increase of $15.3 million, or 6.5%.
Current report
Gross profit margin increased to 50.2% for the six months ended June 29, 2024 compared to 47.5% for the six months ended July 1, 2023, an increase of 270 basis points, primarily due to operational efficiencies, net price increases and management of our manufacturing costs.
Current report
SG&A increased to $123.2 million for the six months ended June 29, 2024 from $112.6 million for the six months ended July 1, 2023, an increase of $10.6 million, or 9.4%, driven by higher warranty and administrative costs.
Current report
As a percentage of net sales, SG&A increased to 24.8% for the six months ended June 29, 2024 as compared to 22.8% for six months ended July 1, 2023, an increase of 200 basis points, due to the factors discussed above.
Current report
Research, development, and engineering expense (RD&E) decreased to $6.1 million for the three months ended June 29, 2024 from $6.9 million for the three months ended July 1, 2023, primarily as a result of timing of certain projects that were ongoing in the three months ended July 1, 2023 as compared to the three months ended June 29, 2024.
Current report
RD&E decreased to $12.4 million for the six months ended June 29, 2024 compared with $12.9 million for the six months ended July 1, 2023. The decrease is mainly due to the timing of certain projects that occurred in the Comparable Quarter as discussed above. As a percentage of net sales, RD&E was 2.5% for the six months ended June 29, 2024 compared to 2.6% for the six months ended July 1, 2023, a decrease of 10 basis points.
Current report
See Note 16. Acquisitions and Restructuring.
Current report
Interest expense, net, decreased to $16.8 million for the three months ended June 29, 2024 from $19.1 million for the three months ended July 1, 2023.
Current report
For the six months ended June 29, 2024, interest expense, net, decreased to $35.4 million from $38.5 million for the six months ended July 1, 2023.
Current report
Interest expense, net, for the six months ended June 29, 2024 consisted of $36.4 million of interest on the outstanding debt and $2.3 million of amortization of deferred financing fees, partially offset by $3.3 million of interest income. The effective interest rate on our borrowings, including the impact of an interest rate hedge, was 7.25% for the six months ended June 29, 2024.
Current report
Interest expense, net, for the six months ended July 1, 2023 consisted of $37.4 million of interest on the outstanding debt and $2.2 million of amortization of deferred financing fees, partially offset by $1.1 million of interest income. The effective interest rate on our borrowings, including the impact of an interest rate hedge, was 6.86% for the six months ended July 1, 2023.
Current report
Interest expense, net, decreased by $3.1 million for the six months ended June 29, 2024 compared to the prior year period primarily due to the repayment of the Incremental Term Loan B principal balance and interest income on cash investment balances.
Current report
Loss on extinguishment of debt
Current report
The $4.9 million loss on extinguishment of debt for the three and six months ended June 29, 2024 was incurred as a result of the voluntary repayment of the Incremental Term Loan B principal balance in April 2024. There was no loss on extinguishment of debt for the three and six months ended July 1, 2023.
Current report
We incurred income tax expense of $12.4 million for the six months ended June 29, 2024 compared to an income tax expense of $14.6 million for the six months ended July 1, 2023, a decrease of $2.2 million, or 14.9%.
Current report
The decrease in the Company’s effective tax rate from 27.8% for the six months ended July 1, 2023 to 20.8% for the six months ended June 29, 2024 was primarily due to the change to the Company’s permanent reinvestment assertion for one jurisdiction during the Comparable Quarter and a return-to-provision adjustment in the Second Quarter, partially offset by a decrease in excess tax benefit from stock compensation.
Current report
Adjusted EBITDA margin increased to 29.0% for the three months ended June 29, 2024 compared to 28.0% for the three months ended July 1, 2023, an increase of 100 basis points.
Current report
Adjusted EBITDA increased to $127.7 million for the six months ended June 29, 2024 from $124.4 million for the six months ended July 1, 2023, an increase of $3.3 million or 2.6%, driven primarily by increased net sales and higher gross profit, partially offset by an increase in SG&A expense.
Current report
Adjusted EBITDA margin increased to 25.7% for the six months ended June 29, 2024 compared to 25.2% for the six months ended July 1, 2023, an increase of 50 basis points, due to the factors described above.
Current report
Net sales increased to $241.1 million for the three months ended June 29, 2024 from $237.4 million for the three months ended July 1, 2023, an increase of $3.7 million, or 1.6%.
Current report
Net sales increased to $414.5 million for the six months ended June 29, 2024 from $400.1 million for the six months ended July 1, 2023, an increase of $14.4 million, or 3.6%.
Current report
The increase for the three months ended June 29, 2024 was driven by net price improvement and volume growth in Canada, partially offset by a modest decline in volume in the US due to lower new construction and remodels.
Current report
Gross profit increased to $127.4 million for the three months ended June 29, 2024 from $118.4 million for the three months ended July 1, 2023, an increase of $9.0 million, or 7.6%.
Current report
Gross profit increased to $217.3 million for the six months ended June 29, 2024 from $197.5 million for the six months ended July 1, 2023, an increase of $19.8 million, or 10.1%.
Current report
Gross profit margin increased to 52.4% for the six months ended June 29, 2024 from 49.4% for the six months ended July 1, 2023, an increase of 300 basis points. Gross margin increased due to operational efficiencies in our manufacturing facilities and net price increases.
Current report
Segment income margin increased to 31.2% for the three months ended June 29, 2024 from 29.9% for the three months ended July 1, 2023, an increase of 130 basis points. The increase was driven by the increase in net sales and gross profit as discussed above, partially offset by higher SG&A expense from increased warranty and administrative costs.
Current report
Segment income increased to $115.1 million for the six months ended June 29, 2024 from $104.2 million for the six months ended July 1, 2023, an increase of $10.9 million, or 10.4%. This was primarily the increase in net sales and gross profit as discussed above, partially offset by higher SG&A expense due to increased warranty and administrative costs.
Current report
Segment income margin increased to 27.8% for the six months ended June 29, 2024 from 26.1% for the six months ended July 1, 2023, an increase of 170 basis points primarily resulting from higher gross profit as discussed above.
Current report
Adjusted segment income margin increased to 33.7% for the three months ended June 29, 2024 from 32.4% for the three months ended July 1, 2023, an increase of 130 basis points.
Current report
Adjusted segment income increased to $126.6 million for the six months ended June 29, 2024 from $116.2 million for the six months ended July 1, 2023, an increase of $10.4 million or 8.9%. This was driven by the increased segment income as discussed above, after adjusting for the non-cash and specified costs discussed below in “— Non-GAAP Reconciliation.”
Current report
Adjusted segment income margin increased to 30.5% for the six months ended June 29, 2024 from 29.0% for the six months ended July 1, 2023, an increase of 150 basis points.
Current report
Net sales decreased to $82.4 million for the six months ended June 29, 2024 from $93.6 million for the six months ended July 1, 2023, a decrease of $11.2 million, or 12.0%.
Current report
Gross profit margin increased to 40.8% for the three months ended June 29, 2024 from 39.1% for the three months ended July 1, 2023, an increase of 170 basis points, primarily driven by net price increases and improved operational efficiencies.
Current report
Gross profit decreased to $32.4 million for the six months ended June 29, 2024 from $36.9 million for the six months ended July 1, 2023, a decrease of $4.5 million, or 12.4%.
Showing the first 40 of 45 passages. Open the source sections for the rest.
Removed paragraphs (15)
Previous report
Macroeconomic Factors on Variable Rate Indebtedness
Previous report
Elevated interest rates resulting from central banks’ efforts to combat macroeconomic price inflation has caused increases in the cost to service our variable rate indebtedness. The Company limits its exposure to these risks by following established risk management policies and procedures, including the use of derivatives. The Company uses interest rate swaps to manage the exposure to changes in rates and the related cost of debt.
Previous report
This increase for the three months ended March 30, 2024 was primarily due to a modest increase in net price and volume. The growth in volume is a result of increased Early Buy shipments in North America.
Previous report
Gross profit increased to $104.6 million for the three months ended March 30, 2024 from $97.9 million for the three months ended April 1, 2023, an increase of $6.7 million or 6.8%.
Previous report
Gross profit margin increased to 49.2% for the three months ended March 30, 2024 compared to 46.6% for the three months ended April 1, 2023, an increase of 260 basis points, primarily due to operational efficiencies in our manufacturing operations.
Previous report
Research, development, and engineering expense (RD&E) increased to $6.3 million for the three months ended March 30, 2024 from $6.0 million for the three months ended April 1, 2023. RD&E spend continues to be focused on new product development.
Previous report
Interest expense, net, decreased to $18.6 million for the three months ended March 30, 2024 from $19.4 million for the three months ended April 1, 2023.
Previous report
Adjusted EBITDA margin decreased to 21.2% for the three months ended March 30, 2024 compared to 21.4% for the three months ended April 1, 2023, a decrease of 20 basis points.
Previous report
(b) See “—Non-GAAP Reconciliation.”
Previous report
Net sales increased to $173.4 million for the three months ended March 30, 2024 from $162.7 million for the three months ended April 1, 2023, an increase of $10.7 million or 6.6%.
Previous report
Gross profit increased to $89.9 million for the three months ended March 30, 2024 from $79.0 million for the three months ended April 1, 2023, an increase of $10.9 million or 13.7%.
Previous report
Segment income margin increased to 22.9% for the three months ended March 30, 2024 from 20.5% for the three months ended April 1, 2023, an increase of 240 basis points.
Previous report
Net cash used in operating activities
Previous report
Net cash used in operating activities decreased to $77.2 million for the three months ended March 30, 2024 from $90.9 million for the three months ended April 1, 2023, a decrease of $13.7 million or 15.1%. The decrease in cash used was driven by less cash used for working capital compared to the prior-year period and an increase in net income.
Previous report
Net cash (used in) provided by financing activities
Reworded paragraphs (51)
Previous wording
You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and related notes thereto, appearing elsewhere in this Quarterly Report on Form 10-Q. In addition to historical financial information, this discussion and analysis includes forward-looking statements that reflect our plans, estimates and beliefs and involve risks and uncertainties. As a result of many factors, including those set forth in the section “Risk Factors” in this Quarterly Report on Form 10-Q, our actual results may differ materially from those contained in or implied by any forward-looking statements. The results of operations for the three months ended March 30, 2024 are not necessarily indicative of the results for any subsequent periods or the entire fiscal year ending December 31, 2024.
Current wording
You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and related notes thereto, appearing elsewhere in this Quarterly Report on Form 10-Q. In addition to historical financial information, this discussion and analysis includes forward-looking statements that reflect our plans, estimates and beliefs and involve risks and uncertainties. As a result of many factors, including those set forth in the section “Special Note Regarding Forward-looking Statements” in this Quarterly Report on Form 10-Q, our actual results may differ materially from those contained in or implied by any forward-looking statements. The results of operations for the three and six months ended June 29, 2024 are not necessarily indicative of the results for any subsequent periods or the entire fiscal year ending December 31, 2024.
Previous wording
The Company has six manufacturing facilities worldwide, which are located in North Carolina, Tennessee, Rhode Island, Spain (two) and China, and other facilities in the United States, Canada, France and Australia.
Current wording
The Company has seven manufacturing facilities worldwide, which are located in North Carolina, Georgia, Tennessee, Rhode Island, Spain (two) and China, and other facilities in the United States, Canada, France and Australia.
Previous wording
The NAM segment manufactures and sells a complete line of residential and commercial swimming pool equipment and supplies in the United States and Canada and manufactures and sells flow control products.
Current wording
The NAM segment manufactures and sells a complete line of residential and commercial swimming pool equipment and supplies in the United States, Canada and Mexico, and manufactures and sells flow control products.
Previous wording
NAM accounted for 82% and 77% of total net sales for the three months ended March 30, 2024 and April 1, 2023, respectively, and E&RW accounted for 18% and 23% of total net sales for the three months ended March 30, 2024 and April 1, 2023, respectively.
Current wording
NAM accounted for 85% and 84% of total net sales for the three months ended June 29, 2024 and July 1, 2023, respectively, and E&RW accounted for 15% and 16% of total net sales for the three months ended June 29, 2024 and July 1, 2023, respectively.
Previous wording
Our results of operations for the three months ended March 30, 2024 and the three months ended April 1, 2023 have been affected by the following, among other events, which must be understood to assess the comparability of our period-to-period financial performance and condition.
Current wording
Our results of operations for the three and six months ended June 29, 2024 and the three and six months ended July 1, 2023 have been affected by the following, among other events, which must be understood to assess the comparability of our period-to-period financial performance and condition.
Previous wording
Our fiscal quarters end on the Saturday closest to the calendar quarter end, with the exception of year end which ends on December 31 of each fiscal year. The interim closing date for the first, second and third quarters of 2024 are March 30, June 29, and September 28, compared to the respective April 1, July 1, and September 30, 2023 date. This resulted inone additional working day in the three months ended March 30, 2024 compared to the respective 2023 period. Throughout this discussion we may refer to the three months ended March 30, 2024 and the three months ended April 1, 2023 as the “First Quarter” and “Comparable Quarter,” respectively.
Current wording
Our fiscal quarters end on the Saturday closest to the calendar quarter end, with the exception of year end which ends on December 31 of each fiscal year. The interim closing date for the first, second and third quarters of 2024 are March 30, June 29, and September 28, compared to the respective April 1, July 1, and September 30, 2023 date. This resulted inone fewer working day in the three months ended June 29, 2024 compared to the respective 2023 period. Throughout this discussion we may refer to the three months ended June 29, 2024 and the three months ended July 1, 2023 as the “Second Quarter” and “Comparable Quarter,” respectively.
Previous wording
The following tables summarize key components of our results of operations for the periods indicated. We derived the consolidated statements of operations for the three months ended March 30, 2024 and April 1, 2023 from our unaudited condensed consolidated financial statements. Our historical results are not necessarily indicative of the results that may be expected in the future. The following table summarizes our results of operations:
Current wording
The following tables summarize key components of our results of operations for the periods indicated. We derived the consolidated statements of operations for the three and six months ended June 29, 2024 and July 1, 2023 from our unaudited condensed consolidated financial statements. Our historical results are not necessarily indicative of the results that may be expected in the future. The following table summarizes our results of operations:
Previous wording
Net sales increased to $212.6 million for the three months ended March 30, 2024 from $210.1 million for the three months ended April 1, 2023, an increase of $2.5 million or 1.2%. See the segment discussion below for further information.
Current wording
Net sales increased to $284.4 million for the three months ended June 29, 2024 from $283.5 million for the three months ended July 1, 2023, an increase of $0.9 million, or 0.3%. See the segment discussion below for further information.
Previous wording
Selling, general, and administrative expense (SG&A) increased to $60.0 million for the three months ended March 30, 2024 from $54.9 million for the three months ended April 1, 2023, an increase of $5.1 million or 9.3%, primarily as a result of increased warranty costs, marketing and selling expenses.
Current wording
Selling, general, and administrative expense (SG&A) increased to $63.2 million for the three months ended June 29, 2024 from $57.7 million for the three months ended July 1, 2023, an increase of $5.5 million, or 9.4%, primarily as a result of increased warranty costs, incentive compensation and selling expenses.
Previous wording
As a percentage of net sales, SG&A increased to 28.2% for the three months ended March 30, 2024 as compared to 26.1% for the three months ended April 1, 2023, an increase of 210 basis points driven by the factors discussed above.
Current wording
As a percentage of net sales, SG&A increased to 22.2% for the three months ended June 29, 2024 as compared to 20.4% for the three months ended July 1, 2023, an increase of 180 basis points, driven by the factors discussed above.
Previous wording
As a percentage of net sales, RD&E was 3.0% for the three months ended March 30, 2024 compared to 2.8% for the three months ended April 1, 2023, an increase of 20 basis points.
Current wording
As a percentage of net sales, RD&E was 2.2% for the three months ended June 29, 2024 compared to 2.4% for the three months ended July 1, 2023, a decrease of 20 basis points.
Previous wording
For the three months ended March 30, 2024, we incurred $0.5 million of acquisition and restructuring related expense as compared to $1.6 million of expense for the three months ended April 1, 2023. The expense in the First Quarter was primarily related to severance and other costs associated with the centralization and consolidation of operations in Europe, compared to the Comparable Quarter which was primarily related to severance and employee benefit costs as part of the enterprise cost reduction program initiated in 2022, as well as costs associated with the relocation of the corporate headquarters from New Jersey to North Carolina.
Current wording
For the three months ended June 29, 2024, we incurred $0.8 million of acquisition and restructuring related expense as compared to $1.3 million of expense for the three months ended July 1, 2023. The expense in the Second Quarter was primarily driven by costs associated with the acquisition of ChlorKing HoldCo, LLC and related entities (“ChlorKing”), compared to the Comparable Quarter which was primarily related to severance and employee benefit costs as part of the enterprise cost reduction program initiated in 2022, acquisition integration costs, and costs associated with the relocation of the corporate headquarters from New Jersey to North Carolina.
Previous wording
For the three months ended March 30, 2024, amortization of intangible assets decreased $0.7 million compared to the three months ended April 1, 2023, due to the amortization pattern of certain intangible asset classes based on the declining balance method.
Current wording
For the three and six months ended June 29, 2024, amortization of intangible assets decreased by $0.7 million and $1.4 million, respectively, compared to the three and six months ended July 1, 2023, respectively, due to the amortization pattern of certain intangible asset classes based on the declining balance method.
Previous wording
For the three months ended March 30, 2024, operating income increased $3.1 million due to the aggregated effect of the items described above.
Current wording
For the three and six months ended June 29, 2024, operating income increased $5.1 million and $8.1 million, respectively, due to the aggregated effect of the items described above.
Previous wording
Interest expense, net, for the three months ended April 1, 2023 consisted of $18.5 million of interest expense on the outstanding debt and $1.1 million of amortization of deferred financing fees, partially offset by $0.2 million of interest income on cash deposits. The effective interest rate on our borrowings, including the impact of an interest rate hedge, was 6.71% for the three months ended April 1, 2023.
Current wording
Interest expense, net, for the three months ended June 29, 2024 consisted of $17.3 million of interest expense on the outstanding debt and $1.1 million of amortization of deferred financing fees, partially offset by $1.6 million of interest income on cash deposits. The effective interest rate on our borrowings, including the impact of an interest rate hedge, was 7.16% for the three months ended June 29, 2024.
Previous wording
Interest expense, net, for the three months ended March 30, 2024 consisted of $19.1 million of interest expense on the outstanding debt and $1.2 million of amortization of deferred financing fees, partially offset by $1.7 million of interest income on cash deposits. The effective interest rate on our borrowings, including the impact of an interest rate hedge, was 7.28% for the three months ended March 30, 2024.
Current wording
Interest expense, net, for the three months ended July 1, 2023 consisted of $18.9 million of interest expense on the outstanding debt and $1.1 million of amortization of deferred financing fees, partially offset by $0.9 million of interest income on cash deposits. The effective interest rate on our borrowings, including the impact of an interest rate hedge, was 7.01% for the three months ended July 1, 2023.
Previous wording
Interest expense decreased by $0.8 million for the First Quarter compared to the Comparable Quarter, primarily due to an increase in net interest income from the interest rate swaps and interest on cash investment balances.
Current wording
Interest expense, net, decreased by $2.3 million for the Second Quarter compared to the Comparable Quarter, primarily due to the repayment of the Incremental Term Loan B principal balance in April 2024 and higher interest income on cash investment balances.
Previous wording
We incurred income tax expense of $3.1 million for the three months ended March 30, 2024 compared to an income tax expense of $0.8 million for the three months ended April 1, 2023, an increase of $2.3 million or 267.1%.
Current wording
We incurred income tax expense of $9.4 million for the three months ended June 29, 2024 compared to an income tax expense of $13.8 million for the three months ended July 1, 2023, a decrease of $4.4 million, or 32.0%.
Previous wording
The increase in the Company’s effective tax rate from 9.0% for the three months ended April 1, 2023 to 23.8% for the three months ended March 30, 2024 was primarily due to a decrease in the tax benefit from stock compensation.
Current wording
The decrease in the Company’s effective tax rate from 31.9% for the three months ended July 1, 2023 to 19.9% for the three months ended June 29, 2024 was primarily due to the change to the Company’s permanent reinvestment assertion for one jurisdiction during the Comparable Quarter and a return-to-provision adjustment in the Second Quarter.
Previous wording
As a result of the foregoing, net income increased $1.4 million for the three months ended March 30, 2024.
Current wording
As a result of the foregoing, net income increased $8.1 million and $9.6 million for the three and six months ended June 29, 2024, respectively.
Previous wording
Adjusted EBITDA increased to $45.0 million for the three months ended March 30, 2024 from $44.9 million for the three months ended April 1, 2023, an increase of $0.1 million or 0.2%, driven primarily by increased net sales and higher gross profit margin, partially offset by an increase in SG&A expense.
Current wording
Adjusted EBITDA increased to $82.6 million for the three months ended June 29, 2024 from $79.5 million for the three months ended July 1, 2023, an increase of $3.1 million, or 3.9%, driven primarily by increased net sales and higher gross profit, partially offset by an increase in SG&A expense.
Previous wording
(a) Total segment income, adjusted segment income and adjusted segment income margin are non-GAAP measures.
Current wording
(a) Total segment income, adjusted segment income and adjusted segment income margin are non-GAAP measures. See“—Non-GAAP Reconciliation.”
Previous wording
This increase for the three months ended March 30, 2024 was primarily driven by volume and net price. The growth in volume was driven by increased Early Buy shipments.
Current wording
This increase for the six months ended June 29, 2024 was driven by increases in both volume and price. The volume growth resulted from increased Early Buy shipments compared to the prior-year period.
Previous wording
Gross profit margin increased to 51.8% for the three months ended March 30, 2024 from 48.6% for the three months ended April 1, 2023, an increase of 320 basis points. Gross margin increased primarily due to operational efficiencies in our manufacturing operations.
Current wording
Gross profit margin increased to 52.9% for the three months ended June 29, 2024 from 49.9% for the three months ended July 1, 2023, an increase of 300 basis points. Gross margin increased due to operational efficiencies in our manufacturing facilities and net price increases.
Previous wording
Segment income increased to $39.7 million for the three months ended March 30, 2024 from $33.3 million for the three months ended April 1, 2023, an increase of $6.4 million or 19.4%. This was primarily driven by an increase in sales and gross profit as discussed above.
Current wording
Segment income increased to $75.3 million for the three months ended June 29, 2024 from $71.0 million for the three months ended July 1, 2023, an increase of $4.3 million, or 6.2%. This was primarily driven by an increase in sales and gross profit as discussed above.
Previous wording
Adjusted segment income increased to $45.3 million for the three months ended March 30, 2024 from $39.3 million for the three months ended April 1, 2023, an increase of $6.0 million or 15.4%. This was driven by the increase in segment income as discussed above, after adjusting for the non-cash and specified costs discussed below in “— Non-GAAP Reconciliation.”
Current wording
Adjusted segment income increased to $81.3 million for the three months ended June 29, 2024 from $76.9 million for the three months ended July 1, 2023, an increase of $4.4 million, or 5.7%. This was driven by the increase in segment income as discussed above, after adjusting for the non-cash and specified costs discussed below in “— Non-GAAP Reconciliation.”
Previous wording
Net sales decreased to $39.1 million for the three months ended March 30, 2024 from $47.4 million for the three months ended April 1, 2023, a decrease of $8.3 million or 17.5%.
Current wording
Net sales decreased to $43.3 million for the three months ended June 29, 2024 from $46.2 million for the three months ended July 1, 2023, a decrease of $2.9 million, or 6.3%.
Previous wording
The decrease for the three months ended March 30, 2024 in net sales was primarily due to a decline in volume, partially offset by the favorable impact of foreign currency translation and positive net price. The decline in volume is driven by delayed shipments as a result of the consolidation of our manufacturing operations in Europe.
Current wording
The decrease for the three and six months ended June 29, 2024 in net sales was primarily due to a decline in volume and an unfavorable impact of foreign currency translation, partially offset by the favorable impact of net price. The decline in volume in the three months ended June 29, 2024 is driven primarily by market declines in the Middle East and Asia, partially offset by growth in Europe. The decline in volume in the six months ended June 29, 2024 is due to market declines in the Middle East, Asia and Europe.
Previous wording
Gross profit decreased to $14.7 million for the three months ended March 30, 2024 from $18.9 million for the three months ended April 1, 2023, a decrease of $4.2 million or 22.1%.
Current wording
Gross profit decreased to $17.7 million for the three months ended June 29, 2024 from $18.1 million for the three months ended July 1, 2023, a decrease of $0.4 million, or 2.3%.
Previous wording
Gross profit margin decreased to 37.6% for the three months ended March 30, 2024 from 39.8% for the three months ended April 1, 2023, a decrease of 220 basis points, primarily driven by lower operating leverage as a result of the decline in sales.
Current wording
Gross profit margin decreased to 39.3% for the six months ended June 29, 2024 from 39.5% for the six months ended July 1, 2023, a decrease of 20 basis points, primarily driven by lower operating leverage, mostly offset by the benefit of higher net price and operational efficiencies.
Previous wording
Segment income decreased to $6.0 million for the three months ended March 30, 2024 from $9.9 million for the three months ended April 1, 2023, a decrease of $3.9 million or 38.7%. This was primarily driven by a decrease in sales and gross profit as discussed above.
Current wording
Segment income decreased to $8.3 million for the three months ended June 29, 2024 from $9.4 million for the three months ended July 1, 2023, a decrease of $1.1 million, or 11.7%. This was primarily driven by a decrease in sales and gross profit as discussed above.
Previous wording
Segment income margin decreased by 540 basis points from 20.8% for the three months ended April 1, 2023 to 15.4% for the three months ended March 30, 2024, resulting from lower operating expense leverage.
Current wording
Segment income margin decreased by 110 basis points from 20.3% for the three months ended July 1, 2023 to 19.2% for the three months ended June 29, 2024, resulting from lower operating expense leverage.
Previous wording
Adjusted segment income decreased to $6.3 million for the three months ended March 30, 2024 from $10.1 million for the three months ended April 1, 2023, a decrease of $3.8 million or 37.5%. This was primarily driven by the decreased sales after adjusting for the non-cash and specified costs described below in “—Non-GAAP Reconciliation” below.
Current wording
Adjusted segment income decreased to $8.6 million for the three months ended June 29, 2024 from $9.6 million for the three months ended July 1, 2023, a decrease of $1.0 million or 11.2%. This was primarily driven by the decreased sales after adjusting for the non-cash and specified costs described below in “—Non-GAAP Reconciliation” below.
Previous wording
Adjusted segment income margin decreased to 16.1% for the three months ended March 30, 2024 from 21.2% for the three months ended April 1, 2023, a decrease of 510 basis points. Refer to “—Non-GAAP Reconciliation” for a reconciliation of segment income to adjusted segment income.
Current wording
Adjusted segment income margin decreased to 19.8% for the three months ended June 29, 2024 from 20.8% for the three months ended July 1, 2023, a decrease of 100 basis points. Refer to “—Non-GAAP Reconciliation” for a reconciliation of segment income to adjusted segment income.
Previous wording
Adjusted segment income margin increased to 26.1% for the three months ended March 30, 2024 from 24.1% for the three months ended April 1, 2023, an increase of 200 basis points. Refer to “—Non-GAAP Reconciliation” for a reconciliation of segment income to adjusted segment income.
Current wording
Adjusted segment income margin decreased to 18.0% for the six months ended June 29, 2024 from 21.0% for the six months ended July 1, 2023, a decrease of 300 basis points. Refer to “—Non-GAAP Reconciliation” for a reconciliation of segment income to adjusted segment income.
Previous wording
Following is a reconciliation from net income to adjusted EBITDA and adjusted EBITDA margin for the three months ended March 30, 2024 and April 1, 2023:
Current wording
Following is a reconciliation from net income to adjusted EBITDA and adjusted EBITDA margin for the three and six months ended June 29, 2024 and July 1, 2023:
Previous wording
Following is a reconciliation from income from operations before income taxes to total segment income and adjusted segment income for the three months ended March 30, 2024 and April 1, 2023:
Current wording
Following is a reconciliation from income from operations before income taxes to total segment income and adjusted segment income for the three and six months ended June 29, 2024 and July 1, 2023:
Previous wording
Following is a reconciliation from segment income to adjusted segment income for NAM for the three months ended March 30, 2024 and April 1, 2023 (dollars in thousands):
Current wording
Following is a reconciliation from segment income to adjusted segment income for NAM for the three and six months ended June 29, 2024 and July 1, 2023 (dollars in thousands):
Previous wording
Following is a reconciliation from segment income to adjusted segment income for E&RW for the three months ended March 30, 2024 and April 1, 2023 (dollars in thousands):
Current wording
Following is a reconciliation from segment income to adjusted segment income for E&RW for the three and six months ended June 29, 2024 and July 1, 2023 (dollars in thousands):
Previous wording
Unrestricted cash and cash equivalents totaled $115.9 million as of March 30, 2024, which is a decrease of $62.2 million from $178.1 million at December 31, 2023.
Current wording
Unrestricted cash and cash equivalents totaled $215.1 million as of June 29, 2024, which is an increase of $37.0 million from $178.1 million at December 31, 2023.
Showing the first 40 of 51 pairs. Open the source sections for the rest.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
NAM accounted for 83% and 81% of total net sales for thesix months ended June 29, 2024 and July 1, 2023, respectively, and E&RW accounted for 17% and 19% of total net sales for thesix months ended June 29, 2024 and July 1, 2023, respectively.
Current report — wording carried from elsewhere
Gross profit and gross profit margin
Current report — wording carried from elsewhere
For the six months ended June 29, 2024, we incurred $1.3 million of acquisition and restructuring related expense as compared to $2.9 million of expense for the six months ended July 1, 2023. The six months ended June 29, 2024 primarily included costs associated with the centralization and consolidation of operations in Europe and costs related to the acquisition of the ChlorKing business. The acquisition and restructuring related expenses in the six months ended July 1, 2023 primarily related to severance and employee benefit costs as part of the enterprise cost reduction program initiated in 2022, as well as acquisition integration costs.
Current report — wording carried from elsewhere
See “— Non-GAAP Reconciliation” for a reconciliation of adjusted EBITDA and adjusted EBITDA margin to the most directly comparable GAAP metric.
Current report — wording carried from elsewhere
Gross profit and gross profit margin
Current report — wording carried from elsewhere
Refer to “—Non-GAAP Reconciliation” for a reconciliation of segment income to adjusted segment income.
Current report — wording carried from elsewhere
Gross profit and Gross profit margin
Current report — wording carried from elsewhere
For the six months ended June 29, 2024, the average borrowing base under the ABL Facility was $301.4 million and the average loan balance outstanding was zero.
Current report — wording carried from elsewhere
For thesix months ended June 29, 2024, the effective interest rate on borrowings under the First Lien Term Facility, including the impact of an interest rate hedge, was 6.99%. The effective interest rate is comprised of 8.28% for interest and 0.37% for financing costs, partially offset by 1.66% for interest income on the interest rate swaps.
Current report — wording carried from elsewhere
Net cash provided by operating activities
Current report — wording carried from elsewhere
Net cash used in financing activities