Latham Q1 net sales down 28% to $137.7M; net loss $14.4M; affirms FY23 guidance

investments with a focus on the completion of projects for the Kingston, Ontario and Seminole, Oklahoma fiberglass manufacturing facilities. Metric Low High Net Sales $ 565 million $ 615 million Adjusted EBITDA 1 $ 90 million $ 110 million Capital Expenditures $ 35 million $ 40 million 1 A reconciliation of Latham’s projected Adjusted EBITDA to net loss for

First Quarter Fiscal 2023 Results Net sales for the first quarter of fiscal 2023 were $137.7 million, down $53.9 million, or 28.1% from first quarter of fiscal 2022. The decrease was primarily attributable to volume declines as the pool market returned to pre-2020 seasonality, the wholesale channel continued to destock packaged pool inventory, and macroeconomic challenges continued. Gross profit for the first quarter of fiscal 2023 was $33.4 million, down $37.3 million, or 52.8% from the prior fiscal year’s first quarter. Gross margin was 24.2%, compared to 36.9% in the prior year period. Gross profit and gross margin were driven by reduced sales, negative fixed cost leverage from volume declines, the impact of inflation, and the right sizing of our inventory. Selling, general, and administrative expenses (“SG&A”) decreased to $33.1 million from $45.2 million in the first quarter of fiscal 2022, driven primarily by a $9.4 million decrease in stock-based compensation expense and benefit