Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market and Stockholders
Our common stock has been traded on the NASDAQ Global Select Market under the symbol “SWIM” since April 23, 2021. Prior to that date, there was no public trading market for our common stock. On December 31, 2022, there were 30 registered holders of record of our common stock. A greater number of holders are “street name” or beneficial holders, whose shares are held of record by banks, brokers, and other financial institutions.
Issuer Purchases of Equity Securities
On May 10, 2022, we approved a stock repurchase program, which authorized us to repurchase up to $100.0 million of our shares of common stock over the next three years. We may effect these repurchases in open market transactions, privately negotiated purchases, or other acquisitions. We are not obligated to repurchase any of our shares of our common stock under the program and the timing and amount of any repurchases will depend on market conditions, our stock price, alternative uses of capital, the terms of our debt instruments, and other factors. The following table shows the total number of shares repurchased on a trade date basis during the fiscal quarter ended December 31, 2022.
Period
Total number of shares purchased
Average price paid per share
Total number of shares purchased as part of publicly announced plan 1
Approximate dollar value of shares that may yet be purchased under the plan
(in thousands)
October 2, 2022 - October 29, 2022
—
$
—
—
$
85,000
October 30, 2022 - November 26, 2022
992,034
3.13
992,034
81,891
November 27, 2022 - December 31, 2022
1,465,355
3.36
1,465,355
76,962
Total
2,457,389
$
3.27
2,457,389
$
76,962
(1) All shares were repurchased under a Rule 10b5-1 trading plan.
Dividends
We currently do not intend to pay cash dividends on our common stock. However, we may in the future decide to pay dividends on our common stock. Any declaration and payment of cash dividends in the future, will be at the discretion of our board of directors and will depend upon such factors as earnings levels, cash flows, capital requirements, levels of indebtedness, restrictions imposed by applicable law, our overall financial condition, restrictions in our debt agreements, and any other factors deemed relevant by our board of directors.
As a holding company, our ability to pay dividends depends on our receipt of cash dividends from our operating subsidiaries. Our ability to pay dividends will therefore be restricted as a result of restrictions on their ability to pay dividends to us under our New Credit Agreement and under other current and future indebtedness that we or they may incur. See “Risk Factors—Risks Relating Ownership of our Common Stock—We do not anticipate paying any cash dividends, and accordingly, stockholders must rely on stock appreciation for any return on their investment” and
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”
Performance Graph
The following graph compares the cumulative total return on our common stock since it began trading on the NASDAQ Global Select Market on April 23, 2021 with the cumulative total return of the Russell 2000 Index and the S&P SmallCap 600 Consumer Discretionary Index. The graph assumes, in each case, an initial investment of $100 on April 23, 2021, based on the market price at the end of each month through and including December 31, 2022, and that all dividends paid by companies included in these indices have been reinvested. We did not pay any dividends during the period reflected in the graph.
4/23/2021
12/31/2021
12/31/2022
Latham Group, Inc.
$
100.00
$
91.85
$
11.82
Russell 2000
$
100.00
$
99.56
$
79.21
S&P SmallCap 600 Consumer Discretionary Index
$
100.00
$
98.11
$
70.82
Item 6. Reserved
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