LATHAM, N.Y. - Latham Group, Inc. (NASDAQ:SWIM), a leading in-ground residential swimming pool designer and manufacturer, has partnered with Poolside Tech to launch The Attendant, an innovative pool automation system. This cloud-based technology allows homeowners to manage their pool's temperature and water chemistry via a smartphone app, optimizing pool maintenance and energy use.
The Attendant leverages historical pool data and weather forecasts to control heating, chilling, and solar systems for efficient temperature regulation. Moreover, it automates chemical dosing, removing the guesswork for pool owners. The system is compatible with various manufacturers' pool equipment, enhancing its utility for Latham pool owners.
Scott Rajeski, President and CEO of Latham, expressed enthusiasm about the partnership, stating that The Attendant aligns with the company's goal to enhance the backyard lifestyle by simplifying pool ownership. Bob Doan, CEO of Poolside Tech, echoed this sentiment, emphasizing the system's contribution to a more enjoyable pool ownership experience with added savings.
The Attendant also features entertainment and safety options, such as playlist synchronization, customizable lighting, and controlled pool access modes. It is designed to be future-proof, negating the need for costly upgrades.
The product is available for purchase through independent Latham-authorized pool builders and can be retrofitted to existing Latham fiberglass pools. For more information, consumers are directed to Latham's website.
This announcement comes as the company reinforces its position in the market and responds to increased consumer interest in inground pools amid rising summer temperatures. The information is based on a press release statement from Latham Group, Inc.
In other recent news, Latham Group has reported impressive Q1 results, exceeding their own forecasts despite a soft market. The company's strategic cost reductions and efficiency improvements have led to an improved margin profile, even with a 19.7% year-over-year decline in net sales to $110.6 million. Their net loss has narrowed to $7.9 million, showing an improvement from the previous year, and their cash position remains strong at $43.8 million.
Latham Group's focus on promoting the adoption of its fiberglass and automatic safety covers has been a key factor in these recent developments. The company also plans consistent capital expenditures throughout 2024 as part of a conservative capital allocation strategy. Furthermore, Latham is prepared to deploy capital for growth as market conditions improve, supported by their Q1 performance.
However, the company is facing a challenging market outlook, with new pool starts projected to decline by 15% compared to the previous year. Despite this, Latham remains optimistic about potential market share gains with the rollout of their Measure tool for covers and liners and expects a rebound in pool starts in 2025 and 2026. These recent developments highlight Latham Group's resilience and strategic approach to navigating the current economic landscape.
InvestingPro Insights
As Latham Group, Inc. (NASDAQ:SWIM) introduces The Attendant to simplify pool maintenance for homeowners, the company's financial health and market performance are crucial for investors monitoring its growth trajectory. According to PRONEWS24, which offers a discount on InvestingPro subscriptions, there are several key metrics and tips to consider.
The company's market capitalization stands at a modest $316.09M, suggesting that it is a smaller player in the market. Despite a challenging environment reflected by a revenue decline of nearly 16% in the last twelve months as of Q1 2024, Latham's partnership with Poolside Tech indicates a strategic move to innovate and potentially capture more market share.
InvestingPro Tips highlight that Latham Group is currently trading at a low P/E ratio relative to near-term earnings growth, indicating that the stock may be undervalued given its earnings potential. Moreover, the company's valuation implies a strong free cash flow yield, which could be appealing for investors looking for companies with the ability to generate cash and sustain operations.
Still, it is important to note that analysts anticipate a sales decline in the current year and do not expect the company to be profitable within this timeframe. This underscores the importance of strategic initiatives like The Attendant for driving future growth.
For a deeper dive into Latham's financials and additional InvestingPro Tips, investors can visit https://www.investing.com/pro/SWIM. There are 14 additional tips available to guide investment decisions, and don't forget to use the promo code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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