We are the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand.
−Removed: We hold the #1 market position in North America in every product category in which we compete.
+Added: We hold the #1 position in North America in every product category in which we compete.
We believe that we are the most sought-after brand in the pool industry and the only pool company that has established a direct relationship with the homeowner.
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In an industry that has traditionally marketed on a business-to-business basis (pool manufacturer to dealer), we pioneered the first “direct-to-homeowner” digital and social marketing strategy that has transformed the homeowner’s purchase journey.
−Removed: Through this marketing strategy, we are able to create demand for our pools and generate and provide high quality, purchase-ready consumer leads to our dealer partners.
+Added: Through this marketing strategy, we are able to create demand for our pools and to provide high quality, purchase-ready consumer leads to our dealer partners.
Partnership with our dealers is integral to our collective success, and we have enjoyed long-tenured relationships averaging over 14 years.
−Removed: We support our dealer network with business development tools, co-branded marketing programs and in-house training, as an operations platform consisting of over 2,300 employees across over 30 facilities.
+Added: We support our dealer network with business development tools, co-branded marketing programs, and in-house training.
+Added: Our operations consist of over 2,000 employees across over 30 locations.
The broad geographic reach of our manufacturing and distribution network allows us to deliver a fiberglass pool in a cost-effective manner.
−Removed: The full resources of our company are dedicated to designing and manufacturing high-quality pool products with the homeowner in mind, and positioning ourselves as a value-added partner to our dealers.
−Removed: We are the leader in the large, growing and highly-fragmented residential in-ground swimming pool industry.
−Removed: Over the last decade, macroeconomic trends have driven an increase in reinvestment in the home, and we expect that consumers will continue to focus R&R spending on exterior living spaces as they look for more ways to spend time outdoors.
+Added: The full resources of our company are dedicated to designing and manufacturing high-quality pool products, with the homeowner in mind, and to position ourselves as a value-added partner to our dealers.
+Added: We are the leader in the large and growing residential in-ground swimming pool industry.
+Added: Over the last decade, macroeconomic trends have driven an increase in reinvestment in the home, and we expect that consumers will continue to focus a portion of their rest-and-relaxation spending on exterior living spaces as they look for more ways to spend time outdoors.
Fiberglass pools are underpenetrated in the United States residential in-ground swimming pool market relative to other geographic markets.
−Removed: As a result of material conversion away from legacy pool construction materials, growth in sales of fiberglass pools is meaningfully outpacing that of the broader in-ground swimming pool market.
−Removed: Despite this expected growth in the United States, fiberglass pools still have significant runway for growth relative to comparable international markets.
−Removed: In 2019, we acquired Narellan, the largest fiberglass manufacturer in Australia and one of the key drivers of fiberglass adoption in the Australian market over the last two decades.
−Removed: Leveraging insights gained from Narellan, we are investing to build the tools required to drive higher fiberglass penetration in the North American market.
−Removed: This conversion to fiberglass pools from legacy pool construction materials is being driven by greater homeowner awareness of the benefits of fiberglass products, including:
+Added: As a result of material conversion away from legacy pool construction materials, growth in sales of fiberglass pools in the United States is meaningfully outpacing that of the broader in-ground swimming pool market.
+Added: Despite this growth, fiberglass pools still have significant runway for growth in the United States relative to comparable international markets.
+Added: This conversion to fiberglass pools from legacy pool construction materials, such as concrete, is being driven by greater homeowner awareness of the benefits of fiberglass products, including:
● Lower up-front and lifecycle costs .
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The dealership market is highly-fragmented, consisting primarily of small, family-owned businesses.
−Removed: In addition, concrete pool installers face a number of challenges, particularly as a result, we believe, of many skilled tradesmen leaving the industry following the Great Recession’s impact on construction.
+Added: In addition, concrete pool installers face a number of challenges, particularly as a result, we believe, of many skilled tradesmen leaving the industry.
Each of these factors, paired with the long-term positive demand trends in the industry, contribute to the supply constraint in the pool market.
−Removed: Our Strengths
−Removed: Leading Consumer Brand in the Residential Pool Market
−Removed: We believe we are the leader in the North American in-ground residential swimming pool market, holding the #1 position by volume in each of our product categories, a position that we have established throughout our 65 plus year operating history.
−Removed: Latham is the only consumer brand in the residential pool industry with a differentiated value proposition that includes an unmatched product portfolio, a coast-to-coast footprint of manufacturing facilities and distribution facilities, an experienced sales force and a network of over 350 exclusive Latham dealer partners worldwide.
−Removed: Our sophisticated digital marketing targeted directly at homeowners has been instrumental in educating and empowering them, helping to drive material conversion in the pool market from traditional materials to fiberglass.
−Removed: “Direct-to-Homeowner” Relationship That Drives Business for Our Dealer Partners
−Removed: Latham is organized around our commitment to provide an exceptional homeowner experience.
−Removed: Our focus in recent years has been on simplifying the historically complex homeowner experience of purchasing a swimming pool.
−Removed: We make finding and buying the right product an amazing start to a homeowner journey that is now easy and enjoyable.
−Removed: We are recognized by homeowners and dealer partners for our differentiated capabilities, quality, on-trend style, design and breadth of our product portfolio and the unique homeowner-focused journey that we have created.
−Removed: Given the level of near continuous connectivity offered to consumers through mobile devices, businesses are adapting their marketing strategies and increasingly focusing on mobile and social media platforms.
−Removed: We have been at the forefront of this dynamic within our industry.
−Removed: Our scale enables us to reinvest more in technology and marketing than our much smaller competitors, driving a virtuous cycle whereby we are able to deliver more purchase-ready leads to our dealer partners.
−Removed: To increase lead conversion, we systematically track and interact with each homeowner throughout their purchase journey.
−Removed: Serving a Large, Growing Market that is Benefiting from Material Conversion
−Removed: Given recent consumer trends, we expect demand for pools to grow to over 100,000 pools per year in each of the next three years.
−Removed: The pace of material conversion from concrete and vinyl pools to fiberglass products is accelerating.
−Removed: This is due in large part to increased awareness among our consumers of the higher quality and durability of our fiberglass pools, as well as beautiful design with a lower overall cost of ownership versus concrete pools.
−Removed: We believe that fiberglass pools will continue to gain share in the in-ground swimming pool market, and as the leading fiberglass pool manufacturer, we are well positioned to both benefit from this growth and accelerate the pace of material conversion through our efforts.
−Removed: We have benefited from the sharing of best practices with our Narellan platform, which has been a key driver of fiberglass adoption in Australia, as we have driven higher penetration in the North American market.
−Removed: Broadest Portfolio of Branded Products Known for Quality, Durability and Aesthetics
−Removed: Our extensive portfolio of pool models is recognized by consumers and dealers for its high-quality, superior durability and aesthetic designs.
−Removed: From our carbon fiber, Kevlar and ceramic fiberglass build to our Ultra-Seam TM liner fabrication, our product development team consistently sets the standard for innovation in our industry.
−Removed: Our broad product portfolio allows dealers and distributors to offer consumers a wide variety of innovative pool shapes, features, depths and lengths, which significantly exceed our competitors’ offering.
−Removed: Additionally, we build our fiberglass pools in a controlled environment compared to the on-site nature of our concrete pool competitors, allowing for better product quality control.
−Removed: Homeowners can further customize their fiberglass pools by selecting from fiberglass color patterns, ranging from deep blues and whites to corals and naturals.
−Removed: In addition to color customization, we offer the industry’s most elaborate finishes in our innovative G2 and G3 finish options, which provide deep visuals that let homeowners choose the perfect water color to complement their backyard surroundings.
−Removed: Our models offer a variety of swim up seating, multiple points of entry and exit, wading areas, tanning ledges and built-in steps, which are features consumers seek in more expensive custom pool designs.
−Removed: Our array of feature rich options across our portfolio of products are core to our strategy to provide superior design at a value to homeowners.
−Removed: Broad Reach, Regulatory Expertise and Technological Capabilities Create Significant Competitive Advantages
−Removed: Our leading position is driven by our consumer brand, geographic reach, national manufacturing platform, regulatory expertise and compelling value proposition.
−Removed: Our brand has become synonymous with the re-imagination of the homeowner journey in purchasing a swimming pool, created significant pull-through demand from homeowners and made our offering a critical component to profitable growth for our dealer partners.
−Removed: This dynamic forms a virtuous cycle that is accelerating homeowner awareness for our products and increasing dealers’ desire to partner with us in order to profitably expand their businesses.
−Removed: Supported by our fleet of cars, trucks and trailers and team of dedicated drivers, our North American network of fiberglass manufacturing facilities provides cost efficient delivery and service to our network of entrenched dealer and distributor partners, including over 250 exclusive Latham Grand dealers in North America.
−Removed: Notably, we are the only nationwide, multi-facility manufacturer of fiberglass swimming pools, providing us with an advantage over regional players that lack similar geographic reach and scale.
−Removed: The fiberglass pool manufacturing process requires significant regulatory approvals and continuous compliance.
−Removed: We have successfully navigated this process across our entire manufacturing footprint throughout our history.
−Removed: Additionally, we have filed or obtained the required permits to expand our fiberglass manufacturing capacity and are in the process of doubling it, providing us a runway for further growth.
−Removed: Finally, our compelling value proposition is underpinned by our ability to leverage a unique technology infrastructure to generate a significant number of purchase-ready leads for our dealer partners and drive increasing levels of consumer awareness for our products.
−Removed: In tandem with the training and marketing tools we provide to our dealers, our technological capabilities have been critical in solidifying our position as the leader in every major pool product sub-category in which we compete in North America.
−Removed: Visionary Management Team with Proven Track Record of Execution
−Removed: We have assembled a team of highly experienced and accomplished executives with public company experience and a proven track record of leading global consumer and industrial organizations.
−Removed: Our management team has experience with developing consumer-branded lifestyle platforms, disrupting traditional business-to-business market structures and delivering an expansive portfolio of high-quality, durable, cost-efficient products to consumers.
−Removed: In a few short years, our team has pioneered a disruptive “direct-to-homeowner” marketing approach, consolidated our brands under the Latham master brand, created innovative new products and enhanced our digital platform to better focus on the overall consumer journey.
−Removed: Our Chief Executive Officer, Scott M.
−Removed: Rajeski, was appointed in 2017 after serving as the Company’s Chief Financial Officer since 2012.
−Removed: Scott previously served in leadership positions at GLOBALFOUNDRIES, Momentive Performance Materials and General Electric.
−Removed: Scott was critical in recruiting our Chairman, James E.
−Removed: Cline, who joined our board in early 2019 and previously served as president and chief executive officer of Trex.
−Removed: We believe Mr.
−Removed: Cline, as the former chief executive officer of Trex, has been an invaluable non-executive member of the board of directors due to his experience building the industry leader in the similarly material conversion driven composite decking industry, while also creating one of the best known brands in the building products industry.
−Removed: Our Chief Financial Officer, J.
−Removed: Mark Borseth, joined the team in 2020 after serving as president and chief executive officer of Ranpak under Rhone Capital’s ownership, as well as holding numerous leadership roles at 3M.
−Removed: Our Chief Marketing Officer, Joel R.
−Removed: Culp, was appointed in 2019 after previously serving in the same role for Wilsonart, as well as holding various leadership positions at MasterBrand, a Fortune Brands company, Uponor and Kohler.
−Removed: Collectively, our team has extensive experience at leading public and private companies, including Trex, Kohler, General Electric, 3M, Ingersoll Rand, Wilsonart and Ranpak.
Growth and Strategy
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Since 2019, we have increased spending on digital strategies and marketing.
−Removed: Our content-rich digital platform provides homeowners with education and engagement tools that help them navigate their pool buying journey, including an unrivaled pool visualization experience, informational videos and resources, budget calculators, and a pool expert community consisting of a blog and direct homeowner outreach.
+Added: Our content-rich digital platform provides homeowners with education and engagement tools that help them to navigate their pool buying journey, including an unrivaled pool visualization experience, informational videos and resources, budget calculators, and a pool expert community consisting of a blog and direct homeowner outreach.
The implementation of our new digital strategy has resulted in superior search engine optimization performance.
−Removed: We have boosted leads for our dealers, further entrenching Latham with our dealer base and increasing switching costs.
+Added: We have boosted leads for our dealers, further strengthening Latham with our dealer base.
Accelerate Fiberglass Material Conversion through Unique Market Positioning
−Removed: As the leader in the fiberglass pool product category, we are driving the acceleration of material conversion by educating both homeowners and dealer partners about the benefits of fiberglass.
−Removed: Our marketing campaigns and digital platform, including our easy to use interactive website and mobile app, inform homeowners on the benefits of fiberglass, including lower up-front and total cost of ownership, quicker installation, easier maintenance and a more convenient buying experience.
−Removed: The Latham Augmented Reality Pool Visualizer app allows homeowners to browse fiberglass models and select from a variety of options from their mobile device.
−Removed: At “Latham University,” our dealer partners discover firsthand the benefits of fiberglass pools, including the ease and speed of installation versus concrete pools, which drive better economics.
−Removed: We also host company conferences and participate in trade shows, where we continue to drive education on the benefits of fiberglass pools.
+Added: As the leader in the fiberglass pool product category, we are driving the acceleration of material conversion, especially from concrete pools to fiberglass, by educating both homeowners and dealer partners about the superior benefits of fiberglass.
+Added: Our marketing campaigns and digital platform, including our easy to use interactive website and mobile app, inform homeowners on the benefits of fiberglass, which include lower up-front and total cost of ownership, quicker installation, easier maintenance, and a more convenient buying experience.
+Added: The Latham Augmented Reality Pool Visualizer app allows homeowners to browse fiberglass models and to select from a variety of options from their mobile device.
+Added: At “Latham University,” our dealer partners discover firsthand the benefits of fiberglass pools, including the ease and speed of installation.
+Added: Dealers also learn both basic and advanced fiberglass pool installation techniques.
Secure Additional Strategic Partnerships with Priority Dealers to Gain Share
−Removed: Our approach as a true business partner with our dealers positions us to take market share in our highly-fragmented industry.
−Removed: We have secured exclusivity from over 350 of our top dealer partners, including the nation’s largest franchised dealer network, Premier Pools & Spas.
−Removed: As the only participant with scale in the fiberglass pool product category, we intend to continue to pursue additional strategic partnerships with priority dealers in underpenetrated geographical markets that can help us accelerate our growth.
−Removed: We believe these exclusive relationships will continue to enable us to increase market share at the expense of the fragmented and regional universe of competitors.
+Added: Our approach as a true business partner with our dealers positions us to take market share in our industry.
+Added: We have secured exclusivity from many of our top dealer partners, including the nation’s largest franchised dealer network, Premier Pools & Spas.
+Added: As the only participant with national distribution in the fiberglass pool product category, we intend to continue pursuing strategic partnerships with priority dealers in underpenetrated geographical markets that can help us accelerate our growth.
Grow Industry Capacity by Onboarding and Training New Dealer Partners
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As such, we intend to continue to use our leadership position in the industry to educate small business owners currently installing concrete pools, as well as those in related trades, about the economic opportunities available in the fiberglass product category of the pool market.
−Removed: We further intend to onboard, train and support them with the same emphasis we have placed on our existing dealer partnerships, including our co-branding programs, “Latham University,” and our “Business Excellence” coaching designed to help them manage their growth.
+Added: intend to onboard, train, and support them with the same emphasis we have placed on our existing dealer partnerships, including our co-branding programs, “Latham University,” and our “Business Excellence” coaching, designed to help them manage their growth.
Leveraging our investments and management expertise, we should be able to play a key role in growing the industry’s capacity.
Expand Margins through Mix Shift Towards Fiberglass and Productivity Initiatives
−Removed: Fiberglass pools are both our highest margin and fastest growing product category.
We believe that our consumer-centric marketing and compelling value proposition to our dealer partners will continue to drive long-term growth for our fiberglass pools.
−Removed: We have made significant manufacturing capacity investments to not only support this future growth, but also to continue to deliver the compelling margin profile of our fiberglass pool offering.
−Removed: We expect to increase our margins significantly as we grow into our capacity investments and our product mix continues to shift towards fiberglass pools.
+Added: We have made significant manufacturing capacity investments not only to support this future growth, but also to continue to deliver the compelling margin profile of our fiberglass pool offering.
+Added: We believe we can increase our margins significantly as we grow into our capacity investments and our product mix continues to shift towards fiberglass pools.
Additionally, we expect that our investments in people, processes, and equipment aimed at enhancing our manufacturing productivity will further expand our margins.
Strategic Acquisitions that Enhance the Latham Platform
−Removed: The pool industry remains highly-fragmented, which offers attractive opportunities to utilize strategic acquisitions to drive consolidation and expand our product offering.
+Added: The pool industry offers attractive opportunities to utilize strategic acquisitions to drive consolidation and expand our product offering.
We have historically used strategic acquisitions to expand our geographic reach within the United States and internationally, enhance our product portfolio, and drive operational efficiencies.
−Removed: We believe that we have the opportunity to be the consolidator of choice in the industry, and we will continue to focus on acquiring high-quality, market-leading businesses with teams, capabilities, and technologies that are complementary to our existing offerings and enable us to better serve homeowners and dealer partners.
+Added: We will continue to focus on acquiring high-quality, market-leading businesses with teams, capabilities, and technologies that are complementary to our existing offerings and that enable us to better serve homeowners and dealer partners.
Our residential pool product portfolio is highly complementary and allows us to provide a wide-range of solutions to our homeowners.
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In-ground Swimming Pools
+Added: Fiberglass Pools
We believe we are the #1 fiberglass pool manufacturer by volume in North America.
−Removed: Demand for our fiberglass pools is driven by both accelerating material conversion from legacy pool construction materials and the long-term value, through lower up-front and lifecycle costs, that our pools deliver to our homeowners.
+Added: Demand for our fiberglass pools is driven by both accelerating material conversion from legacy pool construction materials, especially concrete, and the long-term value, through both lower up-front and lifecycle costs, that our pools deliver to our homeowners.
We offer an extensive portfolio of fiberglass pools with customizable features that include unique colors, elaborate finishes, floor mosaics, lighting options, water features, in-floor cleaning, tanning ledges, and spillover spas.
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Our fiberglass pools offer significant cost, installation, and maintenance advantages over traditional concrete pools.
−Removed: Our innovative product portfolio is made up of a carbon fiber, Kevlar, and fiberglass build and backed by a lifetime warranty to the original purchaser, providing our homeowners with peace of mind and security.
+Added: Our innovative product portfolio is made up of a carbon fiber, Kevlar, and fiberglass build and is backed by a lifetime warranty to the original purchaser, providing our homeowners with peace of mind and security.
Based on our knowledge of our dealers, we believe fiberglass pools can be installed in as little as two to three days, compared to three months for comparable concrete pools.
While we believe that our fiberglass pools are the future of the industry and meet the majority of the market of pools sold, fiberglass pools do have some limitations.
−Removed: Due to shipping considerations, they are subject to certain size limits.
+Added: Because of shipping considerations, they are subject to certain size
Although we offer a broad portfolio of design choices, fiberglass pools can be less customizable than concrete and vinyl.
+Added: The vinyl packaged pools that Latham sells are similar to concrete pools in terms of flexibility.
Investments in innovation and product development have led to historical growth of our fiberglass pool sales, with increased potential for further growth and margin expansion.
+Added: Packaged Pools
We believe that we are also the leader by volume in the custom vinyl pool product category of the North American residential in-ground swimming pool market.
−Removed: Our leadership has been driven by our high-quality product offering, which is fully customizable allowing homeowners to choose from a wide range of colors and features (built-in sun ledges, benches, entry systems and spillover spas), as well as our best-in-class distribution network.
−Removed: Our custom vinyl pools are high-quality and we believe are the most aesthetically pleasing on the market.
−Removed: Custom vinyl pools offer the most attractive homeowner economics when compared to any other material, and can be installed faster and withstand weather better than concrete pools.
−Removed: The wall system for our custom vinyl pools is built of either non-corrosive steel or composite polymer, providing ease of installation.
−Removed: We believe we are the #1 replacement liner manufacturer by volume in the North American residential in-ground swimming pool market, serving a market with large, non-discretionary replacement demand.
+Added: Our leadership has been driven by our high-quality product offering, which is fully customizable and allows homeowners to choose from a wide range of colors and features (built-in sun ledges, benches, entry systems, and spillover spas), as well as our best-in-class national distribution network.
+Added: Our custom vinyl pools are high-quality, and we believe that they are the most aesthetically pleasing on the market.
+Added: Custom vinyl pools offer the most attractive homeowner economics when compared to any other material, and they can be installed faster and withstand weather better than concrete pools.
+Added: The wall system for our custom vinyl pools is built of either non-corrosive steel or composite polymer, which provides our dealers with ease of installation.
+Added: In November 2021, Latham expanded our product offering and entered the vinyl-lined, aluminum-walled in-ground pool category with our purchase of Radiant Pools.
+Added: Radiant Pools uses patented technology, derived from aerospace engineering, to make structurally insulated aluminum wall panels, which makes its products a durable and aesthetically pleasing option for homeowners.
+Added: These pools can be built completely in-ground, semi-in-ground or above ground.
+Added: Vinyl-lined, aluminum-walled pools are generally more affordable than other in-ground pools, and they offer homeowners a cost efficient way to enjoy the ultimate backyard experience.
+Added: We believe we are the #1 replacement liner manufacturer in the North American residential in-ground swimming pool market, serving a market with large, non-discretionary replacement demand.
Vinyl liners are a required component for the interior surface of a vinyl pool and our liners are highly customizable in shape, size, color, and pattern.
+Added: Vinyl liners typically need to be replaced every eight to ten years.
We believe replacement vinyl liners provide us with a significant avenue to stable recurring revenue.
−Removed: We believe we hold the top position in the category for automatic safety covers for pools by volume in North America.
−Removed: Our automatic safety covers provide increased safety and convenience for our homeowners while also driving savings by reducing energy, chemical and cleaning costs and time.
−Removed: Homeowners typically replace their fabric automatic safety covers every eight to ten years, providing our business with stable, recurring revenue.
+Added: There are two types of covers in the pool market, automatic safety covers and all-season pool covers.
+Added: Automatic safety covers operate with a switch and are used in the pool season to cover the pool after a refreshing swim.
+Added: All-season pool covers generally go on after the swimming season.
+Added: They protect the pool and its immediate surroundings from debris and weather, and they also provide safety for homeowners and their guests.
+Added: We believe that Latham holds the top position in the category for automatic safety covers in North America.
+Added: Our automatic safety covers provide increased safety, especially for children, and convenience for our homeowners while also driving savings by reducing energy, chemical and cleaning costs, and lowering water evaporation.
Additionally, more and more pool owners are buying covers as local building codes push for safer pools.
−Removed: We also offer the most complete automatic safety cover portfolio when compared to our competitors, as our products range in mix from affordable luxury options to premium covers.
−Removed: Additionally, our automatic safety covers are compatible with fiberglass, vinyl and concrete pools of almost any shape and size, driving homeowner preference for the CoverStar brand.
+Added: We also offer the most complete automatic safety cover portfolio when compared to our competitors, since our products range in mix from affordable luxury options to premium covers.
+Added: Additionally, our automatic safety covers are compatible with fiberglass, vinyl, and concrete pools of almost any shape and size, driving homeowner preference for the CoverStar TM brand.
We believe we are the leader in the category for all-season pool covers by volume in North America.
Our winterizing mesh and solid covers are used during the off-season, reducing maintenance requirements for our homeowners.
−Removed: While these covers extend the lives of our homeowners’ pools, they typically need to be replaced every eight or ten years, providing us with significant replacement demand.
−Removed: As our covers can be used for any pool, regardless of materials, shape or size, we are able to replace covers for both our legacy homeowners and target homeowners previously served by smaller, regional players.
−Removed: In 2019, we unified our corporate branding and consolidated legacy brands under one banner, Latham.
+Added: While these covers extend the lives of our homeowners’ pools, they typically need to be replaced every eight to ten years, providing us with significant replacement demand.
+Added: Since our covers can be used for any pool, regardless of materials, shape, or size, we are able to replace covers for both our legacy homeowners and homeowners previously served by smaller, regional players.
+Added: In 2019, we unified our corporate branding and consolidated legacy in-ground swimming pool brands in North America under one banner, Latham.
We relaunched our website under the Latham brand in February 2020 and streamlined our go-to-market approach by making the Latham brand the center of our strategy.
−Removed: This enabled us to increase our brand awareness with homeowners and create the only consumer focused brand in the category.
+Added: This enabled us to increase our brand awareness with homeowners and to create the only consumer focused brand in the category.
Our literature for dealers, marketing materials, our website, social media, advertising and promotion and our co-branding of dealer premises each reflect the Latham branding.
−Removed: Our sub-brands, which sit under the Latham master brand, include Narellan, CoverStar, and GLI, among others.
+Added: Our sub-brands, which sit under the Latham master brand, include Narellan TM , CoverStar TM , and GLI, among others.
Our products are sold through both one-step and two-step business-to-business distribution channels.
−Removed: In our one-step distribution channel, which we exclusively sell our fiberglass pools through, we sell our products directly to dealers who, in turn, sell our products to homeowners.
+Added: In our one-step distribution channel, which we exclusively use to sell our fiberglass pools, we sell our products directly to dealers who, in turn, sell our products to homeowners.
In our two-step distribution channel, we sell our products to distributors who warehouse our products and sell them to dealers, who ultimately sell our products to homeowners.
In order to strengthen our relationship with our loyal dealer partners, we have implemented our “Latham Grand” dealer program, whereby we have secured exclusivity with over 250 of our largest dealers in North America.
−Removed: Included in this dealer population is the largest franchised dealer network, Premier Pools & Spas.
−Removed: We also have a strong distribution network as a result of over 450 branch locations that represent our products.
+Added: Included in this dealer population is the largest franchised dealer network in the United States, Premier Pools & Spas.
+Added: We also have a strong distribution network with over 450 distributor branch locations that represent our products.
Through our significant investment in partnerships with dealers and distributors and our consumer-oriented marketing efforts, we have created both a “push and pull” dynamic for our products in the marketplace.
Our Latham Grand dealers, like all of our dealers, are our customers and not our agents.
−Removed: Our agreements with our Latham Grand dealers provide for various benefits to the dealers, such as early access to customer leads, access to in-store advertising and exterior branding, installation training sessions, a dedicated and customized website landing page, technical support, early access to new models and other sales support.
+Added: Our agreements with our Latham Grand dealers provide for various benefits to the dealers, such as early access to customer leads, access to in-store advertising and exterior branding, basic and advanced installation training sessions, a dedicated and customized website landing page, technical support, early access to new models, and other sales support.
Latham Grand dealers agree to use us as their exclusive provider of fiberglass pools.
−Removed: Latham Grand dealers also agree, among other things, to adhere to our fiberglass handling and installation best practices, to receive fiberglass training and to meet annual targets for fiberglass pool installations.
+Added: Latham Grand dealers also agree, among other things, to receive fiberglass training and to meet annual targets for fiberglass pool installations.
Each Latham Grand dealer agrees to operate only in specified territories, and we agree to reasonably consider impacts on the dealer’s market opportunities prior to appointing additional dealers in the same territory.
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We agree to provide training support, marketing materials and, upon prior written request, on-site field support with respect to the first installation of a product by any franchisee of Premier Pools & Spas.
−Removed: We also agree to provide certain franchisees with annual allowance for use in marketing activities and marketing co-op funds, subject to certain conditions, and to provide rebates as a percentage of sales to Premier Pools & Spas.
−Removed: We have long-term relationships with both our dealers and distributors and our largest distributor, which provides valuable local market support with a network of over 290 locations, accounted for 25.0% of our net sales in 2021, 22.3% of our net sales in 2020 and 25.7% of our net sales in 2019.
−Removed: We have maintained a strong relationship with our largest distributor for over 25 years as well as the operators across this distributor’s nationwide network (who are responsible for daily operations and purchasing decisions).
+Added: We also agree to provide certain franchisees with an annual allowance for use in marketing activities and marketing co-op funds, subject to certain conditions, and to provide rebates as a percentage of sales to Premier Pools & Spas.
+Added: We have long-term relationships with both our dealers and distributors.
+Added: Our largest distributor, which provides valuable local market support with a network of over 290 locations, accounted for 20.3% of our net sales in 2022, 25.0% of our net sales in 2021, and 22.3% of our net sales in 2020.
+Added: We have maintained a strong relationship with our largest distributor for over 25 years, as well as with the distributor’s nationwide network of operators, who are responsible for daily operations and purchasing decisions.
Our top ten dealer and distributor relationships accounted for 39.4% of our net sales in 2022, 46.0% of our net sales in 2021 and 41.1% of our net sales in 2020.
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Our manufacturing processes require significant capital investment, footprint, expertise, and time to develop.
−Removed: We have continuously invested the capital necessary to expand our manufacturing and improve our manufacturing processes.
−Removed: We will have sufficient capacity to support our planned growth for the foreseeable future once we will have completed our multi-year capital plan to invest in our facilities, technologies and systems.
−Removed: Once manufactured, we use our own fleet of trucks and drivers to deliver our fiberglass pools, as well as third-party common carriers to ship our other products.
+Added: We have continuously invested the capital necessary to expand our manufacturing capacity and to improve our manufacturing processes.
+Added: We will have sufficient capacity to support our near term growth once we have completed our
+Added: current multi-year capital plan to invest in our facilities, technologies, and systems.
+Added: We use our own fleet of trucks and drivers, as well as third-party common carriers to ship our finished products.
In-ground Swimming Pools
−Removed: The manufacture of fiberglass pools requires highly specialized equipment and technically skilled workforce.
−Removed: We manufacture fiberglass pools by applying the various layers of materials onto a mold.
+Added: The manufacture of fiberglass pools requires highly specialized equipment and a technically skilled workforce.
+Added: We manufacture fiberglass pools by applying the various layers of materials onto a mold, ending with the fiberglass finish that gives these pools their name.
We have a broad and diverse mold portfolio designed to meet customer needs.
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We also use finite element analysis, which is a computerized method for predicting how a product reacts to real-world forces, vibration, heat, fluid flow, and other physical effects.
−Removed: This allows us to model the fiberglass pools that we build to ensure that there are no structural weak points in the design(s).
−Removed: Our use of a flow controlled material delivery system allows us to ensure that we are applying the appropriate mixture of resin and material, and align the mixture to the temperature and humidity of the local environment of our production plant.
+Added: This allows us to model the fiberglass pools that we build to minimize the risk that there are any structural weak points in the design(s).
+Added: Our use of a flow controlled material delivery system allows us to ensure that we are applying the appropriate mixture of resin and material, and to align the mixture to the temperature and humidity of the local environment of our production plant.
In addition to the technical know-how and equipment, the manufacturing of fiberglass pools requires local and state air permits in each of our manufacturing plants.
−Removed: We have existing air permits to cover our existing fiberglass manufacturing capacity, and are working with local, state and federal agencies to increase capacity limits to support projected growth patterns in several locations.
−Removed: Once produced, we use our own fleet of customized delivery trucks and full-time drivers, who require Commercial Driver License designations, to deliver the fiberglass pools to our homeowners.
−Removed: Our coast-to-coast network of facilities provides, on average, lower transportation costs and shorter lead times compared to smaller manufacturers in our sector.
+Added: We have existing air permits to accommodate our current fiberglass manufacturing capacity, and we work with local, state, and federal agencies to increase capacity limits as needed.
+Added: Our coast-to-coast network of facilities provides, on average, lower transportation costs and shorter lead times compared to smaller, regional manufacturers in our sector.
Over-highway transportation costs of fiberglass pools become increasingly expensive beyond a 400-500 mile radius, a cost that is typically passed to the homeowner.
−Removed: Due to our national manufacturing network, we are able to offer lower transportation costs.
−Removed: In addition, with our investment in our national manufacturing base, we have strategically invested in internal delivery capabilities to support demand fluctuations in the busy building season.
−Removed: Once our fiberglass pools are delivered, our dealers provide quality installation and support to homeowners.
+Added: In addition, Latham has our own fleet of delivery vehicles and drivers, who complement our third party distributor partners and provide us with greater surety of timely delivering during the peak building season.
+Added: Once our fiberglass pools are delivered to their destination, our dealers provide quality installation and support to homeowners.
The manufacture of our custom vinyl pools requires different techniques based on the product type.
For our polymer wall vinyl pools, we have a facility that produces all of our polymer panels on structural foam equipment, which requires unique and specialized molds for each panel, as well as a system to inject the resin into the molds.
−Removed: Our highly-engineered plastic molding machines provide us the leading edge capability to mold high-quality structural panels in custom/propriety shapes.
−Removed: The machines are capable of running extremely large and complex molds that are capable of product configurations that range up to 60 inches tall and 72 inches wide.
−Removed: For our steel panels vinyl pools, we have various processes and highly-engineered metal processing machines that have the capability to convert flat coil steel through various steps into panels that have been punched, bent, seamed, welded and stacked.
+Added: Our highly-engineered plastic molding machines provide us the leading edge capability to mold high-quality structural panels in customized, proprietary shapes.
+Added: For our steel panel vinyl pools, we have various processes and highly-engineered metal processing machines that have the capability to convert flat coil steel through various steps into panels that have been punched, bent, seamed, welded, and stacked.
The use of a multi-head “soft” tooling cartridge allows simple and fast change-over times and high tolerance performance.
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We also have a thermoforming machine that produces all of our thermoformed one piece drop-in steps utilizing a wide variety of specialized molds of various shapes and sizes.
−Removed: We manufacture a complete line of both sonically and heat welded vinyl pool liners for both above and in-ground swimming pool applications, with what we believe is the highest technological processing of vinyl sonic welding in the industry.
+Added: We manufacture a complete line of both sonically and heat welded vinyl pool liners for both above and in-ground swimming pool applications, with what we believe is the most technologically advanced processing of vinyl sonic welding in the industry.
We have installed specialized machines across our liner and cover facilities in North America, which has allowed us to gain a significant advantage over the competition.
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We have production capacity to support custom liners at or better than the industry standard delivery window, from design to shipment.
−Removed: Our automatic safety covers manufacturing facilities cut, sew and assemble highly engineered motorized safety covers in a build-to-order model at or above the industry standard delivery window, from design to shipment.
−Removed: Our automatic safety cover business leverages our capabilities around machining, cut/sew, sonic welding and assembly operations to provide a recessed/concealed covering application for in-ground swimming pool cover products.
+Added: Our automatic safety cover manufacturing facilities cut, sew, and assemble highly engineered motorized safety covers in a build-to-order model at or better than the industry standard delivery window, from design to shipment.
+Added: automatic safety cover business leverages our capabilities around machining, cut/sew, sonic welding, and assembly operations to provide a recessed/concealed covering application for in-ground swimming pool cover products.
Our traveling heat welding machine provides an industry-leading seam for durability and finish.
−Removed: Our processing equipment offers tight tolerance, flexible manufacturing with compressed lead times across the various laser cutters, bending, assembly and test equipment.
+Added: Our processing equipment offers tight tolerance and flexible manufacturing with compressed lead times across the various laser cutters, bending, assembly, and test equipment.
Our all-season covers are manufactured on the same equipment as our liners.
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Traditionally we have relied heavily on a business-to-business model built on strong partnerships with our dealers and distributors to generate awareness of our products.
−Removed: In parallel with our recent rebranding, we pivoted to a “direct-to-homeowner” digital and social marketing strategy that puts the consumer at the center of our marketing efforts.
+Added: In parallel with our 2020 rebranding, we pivoted to a “direct-to-homeowner” digital and social marketing strategy that puts the consumer at the center of our marketing efforts.
Latham’s unique “direct-to-homeowner” marketing strategy is driving a greater understanding of the benefits of owning a pool, specifically a fiberglass pool, and generating significant consumer demand.
−Removed: We have made meaningful investments to position Latham as the brand of choice for the homeowner.
+Added: We have made meaningful, ongoing investments to position Latham as the brand of choice for the homeowner.
Our continued investment in innovation, product quality, and consumer engagement has been a key driver of our sales growth.
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Our new digital platform engages the consumer early in the pool buying process and facilitates the buying journey from inspiration and design to a Latham pool purchase.
−Removed: Our Latham Augmented Reality Pool Visualizer app, along with newly launched website, allow homeowners to re-imagine their outdoor living spaces and directly connects them to a dealer of our choice.
+Added: Our Latham Augmented Reality Pool Visualizer app, along with our website, allow homeowners to re-imagine their outdoor living spaces and directly connects them to a dealer of our choice.
For example, our website has visualization tools that allow homeowners to browse through the variety of pool shapes, sizes, colors, patterns, details, and specifications that we offer to choose their pool or their pool liner.
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We maintain a sales organization throughout North America, Australia, and New Zealand that works with dealers and distributors and focuses on increased penetration, dealer growth, and dealer share of wallet.
−Removed: An example of this is the launch of Latham Grand program, a valued-added program that drives dealers toward a 100% exclusive relationship with Latham.
−Removed: We invest in our exclusive dealers through localized marketing spend, co-branding opportunities, tailored offerings and priority lead generation.
+Added: An example of this was the 2020 launch of Latham Grand, a valued-added program that drives dealers toward a 100% exclusive relationship with Latham.
+Added: Once Latham Grand dealers become exclusive, we invest in them through localized marketing spend, co-branding opportunities, tailored offerings, and priority lead generation.
We also provide our dealers with enhanced product literature, in-store display samples, and other initiatives to drive sales.
We have directed a significant portion of our advertising spend to digital channels, including social media and search advertising.
−Removed: Our improved digital marketing engine has the ability to strategically target market spend and generate leads in territories where dealers have capacity, under-penetrated markets and the largest in-ground swimming pool markets.
+Added: Our improved digital marketing engine has the ability to strategically target market spend and to generate leads in territories where dealers have capacity, in under-penetrated markets, and in the largest in-ground swimming pool markets.
Through focused demonstrations, education, product training, and other sales support efforts, we are raising the level of professionalism of our dealers to help facilitate higher lead conversion rates and quality installations, thereby driving the consumer demand.
−Removed: We established “Latham University” in Zephyrhills, Florida, where we provide both start-up training and continuing education on fiberglass pool advantages and best practice, sales training and pool installation to our dealers.
+Added: We established “Latham University” in Zephyrhills, Florida, where we provide both start-up training and education on fiberglass pool advantages and best practice, sales training, and advanced pool installation to our dealers.
Additionally, we provide on-site installation assistance to our new dealer partners on their initial fiberglass pool installation.
+Added: We recently announced the launch of Measure by Latham ("Measure"), a proprietary advanced AI-powered device that dramatically reduces dealer time and error in measuring swimming pool vinyl liners and safety covers.
+Added: Measure is an end-to-end solution that will provide dealers with a simple, cost-effective user experience, high-performance measuring accuracy, and a modernized ordering process.
To facilitate the decision to buy, we offer warranties for our products.
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We utilize a centralized sourcing model that includes a dedicated team of procurement professionals so that we can coordinate and leverage our purchases across a diverse supplier base.
−Removed: Our centralized sourcing model leverages our growing scale within our markets to achieve competitive pricing and ensure availability.
−Removed: The manufacturing facilities coordinate all materials deliveries with respect to volume and timing to ensure proper alignment between consumption and working capital programs.
+Added: Our centralized sourcing model complements our growth to achieve competitive costs and to ensure supply availability.
+Added: The manufacturing facilities coordinate all material deliveries with respect to volume and timing to ensure proper alignment between consumption and working capital programs.
In 2022, we purchased supplies from over 275 suppliers, with 63% of supplies being purchased from our top ten suppliers and 17% of supplies being purchased from our largest supplier.
−Removed: The primary raw materials used in our products are PVC, galvanized steel, fiberglass, aluminum, Kevlar fiber, carbon fiber, various resins, gelcoat, polypropylene fabric, ceramic and roving.
−Removed: Our contracts with key suppliers are typically negotiated on an annual basis.
+Added: The primary raw materials used in our products are PVC, galvanized steel, fiberglass, aluminum, Kevlar fiber, carbon fiber, various resins, gelcoat, polypropylene fabric, ceramics, and roving.
+Added: Our supply agreements with key suppliers are typically negotiated on an annual basis.
The cost of the raw materials used in our manufacturing processes has historically varied and has been affected by changes in supply and demand.
−Removed: We have no fixed-price contracts with any of our major vendors.
+Added: We have minimal fixed-price contracts with our major vendors.
We have not entered into hedges of our raw material costs at this time, but we may choose to enter into such hedges in the future.
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Changes in prices of our raw materials have a direct impact on our cost of sales.
−Removed: We strive to maintain strong and collaborative relationships with our suppliers and believe that the sources for these inputs are well-established, generally available on world markets and are in sufficient quantity.
+Added: We strive to maintain strong and collaborative relationships with our suppliers and believe that the sources for these inputs are well-established, generally available on world markets, and in sufficient quantity.
We do not undertake defined purchase agreements requiring fixed commitments or “take or pay” requirements with our suppliers.
If one or more suppliers were unable to satisfy our requirements for particular raw materials, we believe alternative sources of supply would be available, although we could experience a disruption to our operations as alternative suppliers are identified and qualified and new supply arrangements are entered into.
−Removed: See “Risk Factors — Risks Related to Our Operations — We depend on a global network of third-party suppliers to provide components and raw materials essential to the manufacturing of our pools and price increases or deviations in the quality of the raw materials used to manufacture our products could adversely affect our net sales and operating results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Factors Affecting Our Performance— Cost and Availability of Materials.”
+Added: See “Risk Factors — Risks Related to Our Operations and Industry — We depend on a global network of third-party suppliers to provide components and raw materials essential to the manufacturing of our pools and price increases or deviations in the quantity or quality of the raw materials used to manufacture our products could adversely affect our net sales and operating results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Factors Affecting Our Performance— Cost and Availability of Materials.”
We are the leader in the North American in-ground residential swimming pool market, holding the #1 position by volume in each of our product categories.
We also operate in New Zealand and Australia, where we hold the #1 position by volume in the fiberglass pools category in both Australia and New Zealand, according to management estimates.
−Removed: We compete with regional and local manufacturers.
−Removed: We compete on the basis of a number of considerations, including brand recognition and loyalty, quality, performance, product characteristics, marketing, product development, sales and distribution and price.
−Removed: We believe we compete favorably with respect to these factors through our differentiated consumer value proposition and brand, breadth and quality of our product portfolio, national manufacturing footprint in the United States, leading sales force and large network of dealers.
+Added: We compete with regional and local manufacturers on the basis of a number of considerations, including brand recognition and loyalty, quality, performance, product characteristics, marketing, product development, sales and distribution, and price.
+Added: We believe we compete favorably with respect to these factors through our differentiated consumer value proposition;
+Added: brand, breadth, and quality of our product portfolio;
+Added: national manufacturing footprint in the United States;
+Added: leading sales force;
+Added: and large network of dealers.
The main alternative to vinyl and fiberglass pools are concrete pools, which are built in the ground and are constructed by pouring concrete over steel rods to create the shell of the pool.
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Based on our knowledge of our dealers, we believe it takes approximately three months to install a concrete pool.
−Removed: We do not participate in the concrete pool market other than providing automatic safety covers and all-season covers for concrete pools.
+Added: We do not participate in the concrete pool market other than to provide automatic safety covers and all-season covers for concrete pools.
We believe that the shift in material from concrete to fiberglass that the North American in-ground swimming pool industry is undergoing will favor our products.
−Removed: See “Risk Factors—Risks Related to Our Industry” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Factors Affecting Our Performance—Volume of Products Sold.”
+Added: See “Risk Factors—Risks Related to Our Operations and Industry—We face competition both from within our industry and from other outdoor living products and if we are not able to compete effectively, our prospects for future success will be jeopardized.” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Factors Affecting Our Performance—Volume of Products Sold.”
Although we generally have demand for our products throughout the year, our business is seasonal, and weather is one of the principal external factors affecting the business.
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Calendar years having severe weather also play a role in affecting sales growth, as particularly rainy or cold years tend to slow the volume of sales, including as a result of complicating conditions for pool installations.
−Removed: See “Risk Factors — Risks Related to Our Operations — We are susceptible to adverse weather conditions.”
+Added: See “Risk Factors — Risks Related to Our Operations and Industry — Adverse weather conditions could negatively impact our sales, as well as result in significant variability of sales in reporting periods.”
Intellectual Property
2 unchanged sentences
We also rely on a combination of unpatented proprietary know-how and trade secrets, and to a lesser extent, patents to preserve our position in the market.
−Removed: As we develop technologies and processes that we believe are innovative, we intend to continually assess the patentability of new intellectual property.
+Added: As we develop technologies and processes that we believe are innovative, we assess the patentability of new intellectual property.
In addition, we employ various other methods, including confidentiality and nondisclosure agreements with third parties and employees who have access to trade secrets, to protect our trade secrets and know-how.
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As of December 31, 2022, we had 2,198 full-time employees, of whom 230 were based outside of North America.
−Removed: We believe we have satisfactory relations with our employees.
−Removed: We provide competitive employee wages that are consistent with employee positions, skill levels, experience, knowledge and geographic location.
−Removed: In the United States, we offer our employees a wide array of health, welfare and retirement benefits, which we believe are competitive relative to others in our industry.
−Removed: In our operations outside the United States, we offer benefits that may vary from those offered to our U.S.
−Removed: employees due to customary local practices and statutory requirements.
−Removed: In all locations, we provide time off benefits, company-paid holidays, recognition programs and career development opportunities.
−Removed: The principles of diversity, inclusion and equal employment opportunity guide our decision-making.
−Removed: Our human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing and integrating our existing and new employees.
−Removed: Our talented employees drive our mission and share core values that both stem from and define our culture, which plays an invaluable role in our execution at all levels in our organization.
−Removed: Our culture is based on these shared core values which we believe contribute to our success and the continued growth of the organization.
−Removed: These values are used in candidate screening and in employee evaluations to help reinforce their importance in our organization:
−Removed: respect, recognition and opportunity for employees;
−Removed: genuine passion for performance;
−Removed: relentless execution;
−Removed: accountability for results;
−Removed: culture of collaboration and transparency;
−Removed: aspiring to be defect-free;
−Removed: promoting a safety-focused and healthy work environment and value-added partnership with customers.
−Removed: We are committed to providing a safe work environment for our employees.
−Removed: We have implemented a health and safety program to manage workplace safety hazards and to protect employees.
−Removed: The program encompasses performance, practices and awareness.
−Removed: The COVID-19 pandemic has underscored the importance of keeping our employees safe and healthy.
−Removed: In response to the pandemic, we have taken actions aligned with the recommendations of the Centers for Disease Control and Prevention in the United States and comparable agencies in other countries to protect our workforce so they can more safely and effectively perform their work.
+Added: Our workforce is not unionized.
+Added: We believe we have good relations with our employees.
+Added: Our reputation for exceptional quality relies on having exceptional people, so we ensure that our team is rewarded, engaged, and developed to build fulfilling careers.
+Added: We provide competitive employee wages that are appropriate to employee positions, skill levels, experience, knowledge, and geographic location, and we provide additional rewards including incentive plans, bonus plans, and achievement awards.
+Added: We benchmark our benefits plan annually to ensure our employee value proposition remains competitive and attractive to new talent.
+Added: The health and safety of our people is a primary concern for us, so we have implemented a comprehensive health and safety program to manage workplace safety hazards and to protect employees.
+Added: We provide regular training and competency development to verify and ensure compliance with health and safety procedures and regulations.
+Added: In the post-pandemic world, we continue to drive community health safety guidelines and best practices for employee wellness gained from our COVID-19 experience.
+Added: Diversity, Equity, and Inclusion
+Added: Diversity, equity, inclusion, and belonging are fundamental principles in our culture.
+Added: We are committed to fostering, cultivating, celebrating, and preserving a culture of diversity, equity, inclusion, and belonging among our employees, customers, and suppliers.
+Added: Latham’s diversity initiatives include, but are not limited to, our practices and policies on recruitment and selection;
+Added: compensation;
+Added: benefits plan design;
+Added: professional development and training;
+Added: internal communications;
+Added: social and recreational programs;
+Added: terminations;
+Added: and both ongoing development of a work environment that encourages and enforces respectful communication, teamwork, work/life balance, and engaging in community efforts that promote a greater understanding and respect for the principles of diversity.
+Added: Health, Safety, and Wellness
+Added: Our health and safety policies and practices include an employee training and competency development program to train, verify, and encourage compliance with health and safety procedures and regulations annually.
+Added: monitor our total recordable incident rate monthly and review workplace injury and claims trends with our carriers monthly to identify areas of focus and opportunities for implementing new programs to protect our employees.
Acquisitions and Partnerships
−Removed: We were acquired by Pamplona in December 2018.
−Removed: We have made three acquisitions since 2018, the purchase of Radiant Pools in November 2021, the purchase of GLI, a competitor in vinyl liners and safety cover markets based in Ohio, in October 2020, and the purchase of Narellan, a manufacturer of fiberglass pools in Australia and New Zealand in May 2019.
+Added: We have made four acquisitions since 2018:
+Added: the purchase of certain fiberglass pool manufacturing assets in Seminole, Oklahoma in November 2022;
+Added: the purchase of Radiant Pools in November 2021, a manufacturer of vinyl-lined and aluminum-walled swimming pools;
+Added: the purchase of GLI, a vinyl liner and safety cover manufacturer based in Ohio, in October 2020;
+Added: and the purchase of Narellan, a manufacturer of fiberglass pools in Australia and New Zealand in May 2019.
We also made a strategic investment in October 2020 by acquiring a 28% interest in Premier Pools & Spas, a pool builder focusing on in-ground swimming pools (which was reduced in connection with a partial sale to 20.1% on August 6, 2021).
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See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Key Factors Affecting Our Performance — Acquisitions and Partnerships.”
−Removed: Environmental Laws and Regulations
+Added: Environmental, Health and Safety Laws and Regulations
Our operations and properties are subject to extensive and frequently changing federal, state, and local environmental protection and health and safety laws, regulations, and ordinances.
6 unchanged sentences
From time to time, we incur significant capital and operating expenditures to achieve and maintain compliance with applicable environmental, health and safety laws, regulations, permits, and approvals.
−Removed: Our failure to comply with applicable environmental, health and safety laws and regulations or permit or approval requirements could result in substantial liabilities or civil or criminal fines or penalties or enforcement actions, including regulatory or judicial orders enjoining or curtailing operations or requiring remedial or corrective measures, installation of pollution control equipment or other actions, as well as business disruptions, which could have a material adverse effect on our business, financial condition and results of operations.
+Added: Our failure to comply with applicable environmental, health and safety laws and regulations, or permit or approval requirements, could result in substantial liabilities or civil or criminal fines, penalties or enforcement actions, including regulatory or judicial orders enjoining or curtailing operations or requiring remedial or corrective measures, installation of pollution control equipment, or other actions, such as business disruptions, which could have a material adverse effect on our business, financial condition, or results of operations.
Some of the environmental laws applicable to us provide that a current or previous owner or operator of real property may be liable for the costs of removal or remediation of environmental contamination on, under, or in that property or other impacted properties.
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Our environmental compliance costs in the future will depend, in part, on the nature and extent of our manufacturing activities, regulatory developments and future requirements that cannot presently be predicted.
+Added: Environmental, Social, and Governance
+Added: To achieve long-term success as a business, we recognize the need to align our business strategy and priorities with the expectations of our stakeholders, and our ambition is to lead our industry towards a more sustainable future.
+Added: In launching our formal ESG program in 2021, we worked with independent consultants to assess our ESG performance, benchmark our efforts against our competitors, and establish a comprehensive strategy to manage ESG risks and opportunities effectively.
+Added: Our management team develops ESG strategy and related goals and policies through an ESG working group, and our ESG program is overseen by our Board of Directors’ Nominating and Corporate Governance Committee.
+Added: Management has established an ESG working group that is a cross-functional team managing the day-to-day implementation of company initiatives and driving accountability for ESG performance.
+Added: The working group is focused on measuring our progress in each of the key ESG areas relevant to our business, including environmental, health, and safety;
+Added: diversity, equity, and inclusion;
+Added: sustainable products and supply chains;
+Added: and corporate governance.
+Added: We published our inaugural ESG report in the second quarter of 2022, which included information regarding our first materiality assessment undertaken by an independent third party.
+Added: We intend to publish an annual ESG report to update our stakeholders on our ongoing journey.
Health and Safety Matters
1 unchanged sentence
We regularly monitor our total recordable incident rate.
−Removed: We employ an environmental, health and safety director who with their team are responsible for managing, auditing and executing unified, companywide safety and compliance programs, as well as working directly with site leadership and associates on safety awareness, reports and preventative measures.
+Added: We employ an environmental, health, and safety team that is responsible for managing, auditing, and executing unified, companywide safety and compliance programs, as well as working directly with site leadership and associates on safety awareness, reports, and preventative measures.
Web Sites and Additional Information
3 unchanged sentences
We do not charge any fees to view, print, or access these reports on our web site.
−Removed: The contents of our web site are not a part of this report.
+Added: The contents of our web site or any other web site referenced are not a part of this report.
+Added: Cautionary Note Regarding Forward-Looking Statements
+Added: Certain statements in this Annual Report on Form 10-K constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
+Added: All statements contained in this report other than statements of historical fact may constitute forward-looking statements, including statements regarding our future operating results and financial position, our business strategy and plans, business and market trends, our objectives for future operations, macroeconomic and geopolitical conditions, and the sufficiency of our cash balances, working capital and cash generated from operating, investing, and financing activities for our future liquidity and capital resource needs.
+Added: These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “confident,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,”
+Added: “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology.
+Added: These statements involve known and unknown risks, uncertainties, assumptions and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including those set forth under the section of this Annual Report on Form 10-K titled “Risk Factors,” "Management's Discussion and Analysis of Financial Condition and Results of Operations"
+Added: and elsewhere in this Annual Report on Form 10-K, or as described on other subsequent reports we file or furnish with the SEC.
+Added: We encourage you to read this report and our other filings with the SEC carefully.
+Added: Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time.
+Added: Although we believe that the expectations reflected in the forward-looking statements are reasonable and our expectations based on third-party information and projections are from sources that management believes to be reputable, we cannot guarantee future results, levels of activities, performance, or achievements.
+Added: These forward-looking statements reflect our views with respect to future events as of the date of this Annual Report on Form 10-K or the date specified herein, and we have based these forward-looking statements on our current expectations and projections about future events and trends.
+Added: Given these uncertainties, you should not place undue reliance on these forward-looking statements.
+Added: Except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this Annual Report on Form 10-K.
+Added: We anticipate that subsequent events and developments will cause our views to change.
+Added: Our forward-looking statements do not reflect the potential impact of any future acquisitions, merger, dispositions, joint ventures, or investments we may undertake.
+Added: We qualify all of our forward-looking statements by these cautionary statements.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.