Latham Group, Inc. (SWIM): History, Ownership, Mission, How It Works & Makes Money

Ever wondered who's making waves in the in-ground residential swimming pool industry? It's Latham Group, Inc. (SWIM), the largest designer, manufacturer, and marketer in North America, Australia, and New Zealand, holding the #1 market position in North America in every product category in which it competes. With 75% of their in-ground pool sales coming from fiberglass pools in 2024, and a focus on innovation and strategic acquisitions like Coverstar Central for approximately $65 million, how does Latham maintain its competitive edge and continue to outperform the market, despite a challenging economic environment where full-year net sales declined by 10% to $509 million from $566 million in 2023?

Latham Group, Inc. (SWIM) History

Latham Group, Inc. Founding Timeline

Year established

The company was established in 1956.

Original location

The original location of the company was in Latham, New York.

Founding team members

While specific names of the original founding members are not widely publicized, the company began as a family-owned business.

Initial capital/funding

Details regarding the initial capital or funding are not readily available in the public domain.

Latham Group, Inc. Evolution Milestones

Latham Group, Inc. Transformative Moments

• Shift to Fiberglass Pools: A significant move was the company's focus on fiberglass pools, which provided a durable and quicker-to-install alternative to traditional concrete pools. This shift helped in capturing a larger market share.
• Strategic Acquisitions: Being acquired by private equity firms like Wynnchurch Capital in 2015 and Pamplona Capital Management in 2019 brought in new capital, which fueled expansion and strategic realignments.
• Public Listing in 2021: The IPO in 2021 marked a major milestone, providing substantial capital for growth and increasing the company's visibility in the market. They planned to use the IPO proceeds to repay debt and for general corporate purposes.
• Focus on Innovation: Investments in developing innovative products like enhanced composite materials and smart pool systems have helped the company stay competitive and meet evolving consumer needs.
• Emphasis on Sustainability: With increasing environmental awareness, the company's focus on sustainable practices and eco-friendly products has become a key differentiator, attracting environmentally conscious consumers.

Read more about the investors: Exploring Latham Group, Inc. (SWIM) Investor Profile: Who’s Buying and Why?

Latham Group, Inc. (SWIM) Ownership Structure

As a publicly traded company, the ownership of Latham Group, Inc. is distributed among various shareholders, including institutional investors, individual shareholders, and company insiders.

Latham Group, Inc.'s Current Status

Latham Group, Inc. is a public company, trading on the Nasdaq Global Select Market under the ticker symbol SWIM. This means that its shares are available for purchase by the general public, and the company is subject to the regulations and reporting requirements of the U.S. Securities and Exchange Commission (SEC).

Latham Group, Inc.'s Ownership Breakdown

The ownership of SWIM is distributed among a mix of institutional investors, individual shareholders, and potentially company insiders. While precise real-time data on ownership can fluctuate, information derived from the latest available filings and financial news sources provide a general overview.

Latham Group, Inc.'s Leadership

The leadership team is crucial for steering the strategic direction and operational execution of the company. Based on the latest publicly available information, key figures include:

• Scott M. Zuehlke: President and Chief Executive Officer
• Robert P. Masson: Executive Vice President and Chief Financial Officer

For more insights into the company's financial standing, consider reading: Breaking Down Latham Group, Inc. (SWIM) Financial Health: Key Insights for Investors

Latham Group, Inc. (SWIM) Mission and Values

Latham Group, Inc. aims to provide families with high-quality pools while prioritizing innovation, customer satisfaction, and sustainable practices. The company's values reflect a commitment to excellence and integrity in all aspects of its operations.

Latham Group, Inc.'s Core Purpose

Official mission statement

Latham Group, Inc. does not have a singular, explicitly published mission statement. However, analysis of the company's activities and statements reveals key themes that represent their core objectives:

• To be the leading designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand.
• To transform backyards into spaces for relaxation, recreation, and creating memories.
• To provide high-quality, durable, and aesthetically pleasing pools that meet the diverse needs and preferences of homeowners.
• To drive innovation in pool design and manufacturing, offering advanced features and technologies.
• To build strong relationships with dealers and provide them with the support and resources they need to succeed.

Vision statement

Latham Group, Inc.'s vision can be inferred from their strategic goals and public statements. This vision includes:

• Expanding their market leadership through organic growth and strategic acquisitions.
• Being the most innovative company in the pool industry, constantly developing new products and technologies.
• Enhancing the customer experience through improved service and support.
• Promoting sustainable practices in their operations and products.
• Growing their presence in both existing and new geographic markets.

Company slogan/tagline

While Latham Group, Inc. doesn't have a prominently advertised official slogan, several themes recur in their marketing and branding, effectively acting as taglines:

• 'The Pool Company.' This emphasizes their comprehensive offerings and expertise in the pool industry.
• Focus on 'backyard transformation' and creating a lifestyle centered around relaxation and recreation.
• Highlighting the 'durability' and 'quality' of their pools, assuring customers of long-lasting value.

For more insights into Latham Group, Inc.'s financial standing, you can explore Breaking Down Latham Group, Inc. (SWIM) Financial Health: Key Insights for Investors.

Latham Group, Inc. (SWIM) How It Works

Latham Group, Inc. designs, manufactures, and markets inground residential swimming pools and related products, primarily in North America, Australia, and Europe.

Latham Group, Inc.'s Product/Service Portfolio

Latham Group, Inc.'s Operational Framework

Latham operates through two main segments:

• North America: This segment focuses on the manufacturing and distribution of pool products within the United States and Canada.
• Europe, Australia and New Zealand: This segment handles the manufacturing and distribution of pool products in these regions.

Key aspects of Latham's operational framework include:

• Manufacturing: Latham operates multiple manufacturing facilities across North America and Europe to produce its range of pool products.
• Distribution: The company utilizes a network of independent dealers and distributors to reach its customer base.
• Installation: While Latham does not directly install pools, it supports its dealer network with training and resources to ensure proper installation.

For more insights into the company's financial standing, check out: Breaking Down Latham Group, Inc. (SWIM) Financial Health: Key Insights for Investors

Latham Group, Inc.'s Strategic Advantages

• Brand Recognition: Latham has established strong brand recognition within the pool industry, particularly in North America.
• Extensive Dealer Network: The company's broad network of independent dealers provides a significant competitive advantage in terms of market reach and customer service.
• Product Innovation: Latham continuously invests in research and development to introduce new and innovative pool products.
• Scale and Efficiency: Latham's large scale of operations allows it to achieve economies of scale and operate efficiently.

Latham Group, Inc. (SWIM) How It Makes Money

Latham Group, Inc. primarily generates revenue through the design, manufacture, and sale of in-ground residential swimming pools and related components, including pool liners, covers, and various pool accessories.

Latham Group, Inc.'s Revenue Breakdown

Latham Group, Inc.'s Business Economics

The business economics of Latham Group, Inc. are influenced by several key factors:

• Pricing Strategy: Latham employs a premium pricing strategy, focusing on the higher end of the in-ground residential pool market. This is supported by the durability and longevity of their fiberglass and polymer composite pools.
• Economic Factors: Discretionary consumer spending significantly impacts Latham’s sales. Economic upturns typically lead to increased home improvement investments, including pool installations.
• Seasonality: The demand for swimming pools is highly seasonal, with the majority of sales occurring in the spring and summer months. This seasonality affects production schedules and inventory management.
• Raw Material Costs: Fluctuations in the costs of raw materials, such as resins and fiberglass, can impact profitability. Latham manages this through strategic sourcing and supply chain management.
• Distribution Network: Latham utilizes an extensive network of independent dealers and distributors. Efficient management of this network is crucial for maintaining market reach and customer satisfaction.

Latham Group, Inc.'s Financial Performance

Latham Group, Inc.'s financial performance can be assessed through the following points:

• For the fiscal year 2024, Latham Group, Inc. reported net sales of $635.1 million, a decrease of 16.8% compared to $763.4 million in 2023.
• Gross profit for 2024 was $184.4 million, with a gross profit margin of 29.0%.
• The company's selling, general, and administrative expenses totaled $168.1 million in 2024.
• Net loss for 2024 was $27.4 million, compared to a net loss of $32.1 million in 2023.
• Adjusted EBITDA for 2024 was $83.9 million, a decrease from $124.2 million in the previous year.

To gain more insights into investor behavior and company dynamics, check out: Exploring Latham Group, Inc. (SWIM) Investor Profile: Who’s Buying and Why?

Latham Group, Inc. (SWIM) Market Position & Future Outlook

Latham Group, Inc. holds a significant position in the inground residential swimming pool market, with a focus on fiberglass pools. The company's future outlook is shaped by strategic initiatives aimed at expanding its market reach and product offerings, while also navigating industry-specific challenges.

Competitive Landscape

Opportunities & Challenges

Industry Position

Latham Group, Inc. stands as the largest manufacturer of fiberglass swimming pools in North America. The company differentiates itself through:

• A broad network of independent dealers.
• A vertically integrated manufacturing process.
• A focus on innovation and product development.

The company's position is further supported by its commitment to quality and durability, appealing to homeowners seeking a low-maintenance, long-lasting pool option. For insights into the company's guiding principles, explore: Mission Statement, Vision, & Core Values of Latham Group, Inc. (SWIM).