0001558370-24-014525 | 10-Q | XBRL Viewer

Product Warranties

9 Months Ended

Sep. 28, 2024

Product Warranties Disclosures [Abstract]

8. PRODUCT WARRANTIES

The warranty reserve activity consisted of the following (in thousands):



	Three Fiscal Quarters Ended
	September 28, 2024		September 30, 2023
Balance at the beginning of the fiscal year	$	3,161	$	3,399
Adjustments to reserve		2,873		4,737
Less: Settlements made (in cash or in kind)		(2,513)		(4,724)
Balance at the end of the fiscal quarter	$	3,521	$	3,412

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 28, 2024	Jun. 29, 2024	Mar. 30, 2024	Sep. 30, 2023	Jul. 01, 2023	Apr. 01, 2023	Sep. 28, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 5,896	$ 13,279	$ (7,864)	$ 6,153	$ 5,715	$ (14,368)	$ 11,310	$ (2,500)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Net Sales (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Net Sales (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Net sales	$ 150,496	$ 160,778	$ 421,247	$ 475,625
In-Ground Swimming Pools
Disaggregation of Revenue [Line Items]
Net sales	74,785	82,884	215,575	252,029
Covers
Disaggregation of Revenue [Line Items]
Net sales	47,755	47,460	100,126	108,961
Liners
Disaggregation of Revenue [Line Items]
Net sales	$ 27,956	$ 30,434	$ 105,546	$ 114,635

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Mar. 30, 2024	Sep. 28, 2024	Dec. 31, 2023
Employee Stock Option
Shares
Outstanding at the beginning	1,554,294	1,554,294
Granted		0
Exercised		0
Forfeited		(61,384)
Expired		(95,626)
Outstanding at the end		1,397,284	1,554,294
Vested and expected to vest		1,397,284
Options exercisable at the end		817,183
Weighted-Average Exercise Price per Share
Outstanding at the beginning (in dollars per share)	$ 15.43	$ 15.43
Granted (in dollars per share)		0
Exercised (in dollars per share)		0
Forfeited (in dollars per share)		16.74
Expired (in dollars per share)		17.76
Outstanding at the end (in dollars per share)		15.22	$ 15.43
Vested and expected to vest at the end (in dollars per share)		15.22
Options exercisable at the end (in dollars per share)		$ 15.79
Weighted-Average Remaining Contract Term
Outstanding at the end (in years)		7 years 1 month 24 days	0 years
Vested and expected to vest at the end (in years)		7 years 1 month 24 days
Options exercisable at the end (in years)		7 years
Outstanding at the end (in dollars)		$ 137,809
Vested and expected to vest (in dollars)		137,809
Options exercisable at the end (in dollars)		$ 62,885
Stock Appreciation Rights (SARs)
Shares
Outstanding at the beginning	755,802	755,802
Granted	790,181	0
Exercised		0
Forfeited		(49,342)
Outstanding at the end		706,460	755,802
Vested and expected to vest		706,460
Options exercisable at the end		161,893
Weighted-Average Exercise Price per Share
Outstanding at the beginning (in dollars per share)	$ 3.16	$ 3.16
Granted (in dollars per share)	$ 3.24	0
Exercised (in dollars per share)		0
Forfeited (in dollars per share)		3.24
Outstanding at the end (in dollars per share)		3.15	$ 3.16
Vested and expected to vest at the end (in dollars per share)		3.15
Options exercisable at the end (in dollars per share)		$ 3.24
Weighted-Average Remaining Contract Term
Outstanding at the end (in years)		8 years 7 months 17 days
Vested and expected to vest at the end (in years)		8 years 7 months 17 days
Options exercisable at the end (in years)		8 years 7 months 2 days
Outstanding at the end (in dollars)		$ 2,533,254
Vested and expected to vest (in dollars)		2,533,254
Options exercisable at the end (in dollars)		$ 566,626

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total
Balance, beginning of period at Dec. 31, 2022	$ 11	$ 440,880	$ (54,568)	$ (3,533)	$ 382,790
Balance, beginning of period (in shares) at Dec. 31, 2022	114,667,975
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)			(14,368)		(14,368)
Foreign currency translation adjustments				(144)	(144)
Issuance of common stock upon release of restricted stock units (in shares)	22,078
Stock-based compensation expense		6,769			6,769
Balance, end of period at Apr. 01, 2023	$ 11	447,649	(68,936)	(3,677)	375,047
Balance, end of period (in shares) at Apr. 01, 2023	114,690,053
Balance, beginning of period at Dec. 31, 2022	$ 11	440,880	(54,568)	(3,533)	382,790
Balance, beginning of period (in shares) at Dec. 31, 2022	114,667,975
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)					(2,500)
Balance, end of period at Sep. 30, 2023	$ 11	455,767	(57,068)	(6,013)	392,697
Balance, end of period (in shares) at Sep. 30, 2023	114,755,945
Balance, beginning of period at Apr. 01, 2023	$ 11	447,649	(68,936)	(3,677)	375,047
Balance, beginning of period (in shares) at Apr. 01, 2023	114,690,053
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)			5,715		5,715
Foreign currency translation adjustments				(329)	(329)
Issuance of common stock upon release of restricted stock units (in shares)	98,974
Stock-based compensation expense		5,764			5,764
Balance, end of period at Jul. 01, 2023	$ 11	453,413	(63,221)	(4,006)	386,197
Balance, end of period (in shares) at Jul. 01, 2023	114,734,756
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)			6,153		6,153
Foreign currency translation adjustments				(2,007)	(2,007)
Sale of common stock (in shares)	122,368
Repurchase and retirement of common stock under repurchase program (in shares)	(101,179)
Stock-based compensation expense		2,354			2,354
Balance, end of period at Sep. 30, 2023	$ 11	455,767	(57,068)	(6,013)	392,697
Balance, end of period (in shares) at Sep. 30, 2023	114,755,945
Balance, beginning of period at Dec. 31, 2023	$ 11	459,684	(56,956)	(3,539)	399,200
Balance, beginning of period (in shares) at Dec. 31, 2023	114,871,782
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)			(7,864)		(7,864)
Foreign currency translation adjustments				(811)	(811)
Issuance of common stock upon release of restricted stock units (in shares)	517,907
Stock-based compensation expense		1,243			1,243
Balance, end of period at Mar. 30, 2024	$ 11	460,927	(64,820)	(4,350)	391,768
Balance, end of period (in shares) at Mar. 30, 2024	115,389,689
Balance, beginning of period at Dec. 31, 2023	$ 11	459,684	(56,956)	(3,539)	399,200
Balance, beginning of period (in shares) at Dec. 31, 2023	114,871,782
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)					11,310
Balance, end of period at Sep. 28, 2024	$ 12	464,871	(45,645)	(2,591)	416,647
Balance, end of period (in shares) at Sep. 28, 2024	115,592,865
Balance, beginning of period at Mar. 30, 2024	$ 11	460,927	(64,820)	(4,350)	391,768
Balance, beginning of period (in shares) at Mar. 30, 2024	115,389,689
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)			13,279		13,279
Foreign currency translation adjustments				983	983
Issuance of common stock upon release of restricted stock units	$ 1				1
Issuance of common stock upon release of restricted stock units (in shares)	187,414
Stock-based compensation expense		2,100			2,100
Balance, end of period at Jun. 29, 2024	$ 12	463,027	(51,541)	(3,367)	408,131
Balance, end of period (in shares) at Jun. 29, 2024	115,577,103
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)			5,896		5,896
Foreign currency translation adjustments				776	776
Issuance of common stock upon release of restricted stock units (in shares)	15,762
Stock-based compensation expense		1,844			1,844
Balance, end of period at Sep. 28, 2024	$ 12	$ 464,871	$ (45,645)	$ (2,591)	$ 416,647
Balance, end of period (in shares) at Sep. 28, 2024	115,592,865

Net Income (Loss) Per Share

9 Months Ended

Sep. 28, 2024

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

14. NET INCOME (LOSS) PER SHARE

Basic and diluted net income (loss) per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data):


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Numerator:
Net income (loss) attributable to common stockholders	$	5,896	$	6,153	$	11,310	$	(2,500)
Denominator:
Weighted-average common shares outstanding
Basic		115,564,382		113,538,533		115,358,274		112,629,851
Diluted		118,445,235		114,656,761		117,130,609		112,629,851
Net income (loss) per share attributable to common stockholders:
Basic	$	0.05	$	0.05	$	0.10	$	(0.02)
Diluted	$	0.05	$	0.05	$	0.10	$	(0.02)

As of September 28, 2024 and December 31, 2023, 115,571,422 and 114,828,896 shares of common stock were issued and outstanding for accounting purposes, respectively.

The following table includes the number of shares that may be dilutive common shares in the future that were not included in the computation of diluted net income (loss) per share because the effect was anti-dilutive:


	Fiscal Quarter Ended		Three Fiscal Quarters Ended
	September 28, 2024	September 30, 2023	September 28, 2024	September 30, 2023
Restricted stock awards	—	64,329	14,295	909,375
Restricted stock units	6,693	57,885	29,700	220,255
Stock options	1,402,036	1,644,520	1,451,745	1,753,740
Stock appreciation rights	—	738,940	435,194	422,874
Performance stock units	—	—	27,708	—

Income Taxes (Details)	3 Months Ended		9 Months Ended
Income Taxes (Details)	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	0.70%	52.10%	7.60%	140.70%

Net Sales (Tables)

9 Months Ended

Sep. 28, 2024

Revenue from Contract with Customer [Abstract]

Summary of disaggregation of net sales by product line

The following table sets forth the Company’s disaggregation of net sales by product line (in thousands):



	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
In-ground Swimming Pools	$	74,785	$	82,884	$	215,575	$	252,029
Covers		47,755		47,460		100,126		108,961
Liners		27,956		30,434		105,546		114,635
	$	150,496	$	160,778	$	421,247	$	475,625

Income Taxes

9 Months Ended

Sep. 28, 2024

Income Tax Disclosure [Abstract]

Income Taxes

11. INCOME TAXES

The effective income tax rate for the fiscal quarter and three fiscal quarters ended September 28, 2024 was (0.7)% and 7.6%, respectively, compared to 52.1% and 140.7%, respectively, for the fiscal quarter and three fiscal quarters ended September 30, 2023. The differences between the U.S. federal statutory income tax rate and the Company’s effective income tax rates for the fiscal quarter ended September 28, 2024 and the fiscal quarter ended September 30, 2023 were primarily attributable to the impacts of stock-based compensation expense and foreign income.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

Goodwill and Intangible Assets, Net - Goodwill (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Aug. 02, 2024	Dec. 31, 2023
Goodwill [Line Items]
Goodwill	$ 153,043		$ 131,363
Coverstar Central, LLC
Goodwill [Line Items]
Goodwill	$ 21,600	$ 21,566

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

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- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Long-Term Debt

9 Months Ended

Sep. 28, 2024

Debt Disclosure [Abstract]

Long-Term Debt

7. LONG-TERM DEBT

The components of the Company’s outstanding long-term debt obligations consisted of the following (in thousands):



	September 28, 2024		December 31, 2023
Term Loan	$	289,687	$	309,313
Revolving Credit Facility		—		—
Less: Unamortized discount and debt issuance costs		(6,934)		(8,112)
Total debt		282,753		301,201
Less: Current portion of long-term debt		(3,250)		(21,250)
Total long-term debt	$	279,503	$	279,951

On February 23, 2022, Latham Pool Products entered into an agreement (the “Credit Agreement”) with Barclays Bank PLC, which provides a senior secured multicurrency revolving line of credit (the “Revolving Credit Facility”) in an initial principal amount of $75.0 million and a U.S. Dollar senior secured term loan facility (the “Term Loan”) in an initial principal amount of $325.0 million.

As of September 28, 2024, the Company was in compliance with all financial covenants under the Credit Agreement.

Revolving Credit Facility

The Revolving Credit Facility may be utilized to finance ongoing general corporate and working capital needs and permits Latham Pool Products to borrow loans in U.S. Dollars, Canadian Dollars, Euros and Australian Dollars. The Revolving Credit Facility matures on February 23, 2027. Loans outstanding under the Revolving Credit Facility denominated in U.S. Dollars and Canadian Dollars bear interest, at the borrower’s option, at a rate per annum based on Term SOFR or CDO (each, as defined in the Credit Agreement), as applicable, plus a margin of 3.50%, or at a rate per annum based on the Base Rate or the Canadian Prime Rate (each, as defined in the Credit Agreement), plus a margin of 2.50%. Loans outstanding under the Revolving Credit Facility denominated in Euros or Australian Dollars bear interest based on EURIBOR or the AUD Rate (each, as defined in the Credit Agreement), respectively, plus a margin of 3.50%. A commitment fee accrues on any unused portion of the commitments under the Revolving Credit Facility. The commitment fee is due and payable quarterly in arrears, and initially was 0.375% per annum and thereafter accrues at a rate per annum ranging from 0.25% to 0.50%, depending on the First Lien Net Leverage Ratio (as defined in the Credit Agreement). Borrowings under the Revolving Credit Facility are due at maturity.

The Company incurred debt issuance costs of $0.8 million related to the Revolving Credit Facility. The debt issuance costs were recorded within other assets on the condensed consolidated balance sheet as of the applicable period and are being amortized over the life of the Revolving Credit Facility.

The Company is required to meet certain financial covenants in connection with the Revolving Credit Facility, including maintaining specific liquidity measurements. There are also negative covenants, including certain restrictions on the Company’s and its subsidiaries’ ability to incur additional indebtedness, create liens, make investments, consolidate, or merge with other entities, enter into transactions with affiliates, make prepayments with respect to certain indebtedness, make dividend payments, loans, or advances to the Company, declare dividends and make restricted payments and other distributions.

As of September 28, 2024, there were no outstanding borrowings on the Revolving Credit Facility and $75.0 million was available for future borrowing.

Term Loan

The Term Loan matures on February 23, 2029. The Term Loan bears interest, at the borrower’s option, at a rate per annum based on Term SOFR (as defined in the Credit Agreement), plus a margin ranging from 3.75% to 4.00%, depending on the First Lien Net Leverage Ratio, or based on the Base Rate (as defined in the Credit Agreement), plus a margin ranging from 2.75% to 3.00%, depending on the First Lien Net Leverage Ratio. The Term Loan is subject to scheduled quarterly amortization payments of $812,500, equal to 0.25% of the initial principal amount of the Term Loan. The Credit Agreement contains customary mandatory prepayment provisions for the Term Loan, including requirements to make mandatory prepayments with 50% of any excess cash flow and with 100% of the net cash proceeds from the incurrence of indebtedness not otherwise permitted to be incurred by the covenants, asset sales, and casualty and condemnation events, in each case, subject to customary exceptions.

During the three fiscal quarters ended September 28, 2024, the Company made a payment of $18.0 million.

Outstanding borrowings as of September 28, 2024 were $282.8 million, net of unamortized discount and debt issuance costs of $6.9 million. In connection with the Term Loan, the Company is subject to various negative, reporting, financial, and other covenants, including maintaining specific liquidity measurements.

As of September 28, 2024, the unamortized debt issuance costs and discount on the Term Loan were $3.9 million and $3.1 million, respectively. The effective interest rate was 9.22% at September 28, 2024, including the impact of the Company’s interest rate swaps.

Interest Rate Risk

Interest rate risk associated with the Credit Agreement is mitigated partially through interest rate swaps.

The Company executed an interest rate swap on April 30, 2020. The swap had an effective date of May 18, 2020 and a termination date of May 18, 2023. In February 2022, the Company amended its interest rate swap to change the index rate from LIBOR to SOFR in connection with the entry into the Credit Agreement. Under the terms of the amended swap, the Company fixed its SOFR borrowing rate at 0.496% on a notional amount of $200.0 million. The interest rate swap was not designated as a hedging instrument for accounting purposes (see Note 4).

Additionally, the Company entered into an interest rate swap that was executed on March 10, 2023. The swap has an effective date of May 18, 2023 and a termination date of May 18, 2026. Under the terms of the swap, the Company fixed its SOFR borrowing rate at 4.3725% on a notional amount of $161.0 million. The interest rate swap is not designated as a hedging instrument for accounting purposes (see Note 4).

Debt Maturities

Principal payments due on the outstanding debt, excluding the Revolving Credit Facility, in the next five fiscal years, excluding any potential payments based on excess cash flow, are as follows (in thousands):



Fiscal Year Ending	Term Loan
Remainder of fiscal year 2024	$	1,625
2025		3,250
2026		3,250
2027		3,250
2028		3,250
Thereafter		275,062
	$	289,687

Guarantees

The obligations under the Credit Agreement are guaranteed by certain wholly owned subsidiaries (the “Guarantors”) of the Company that are party to that certain security agreement, which was executed in connection with the Credit Agreement. The obligations under the Credit Agreement are secured by substantially all of the Guarantors’ tangible and intangible assets, including their accounts receivables, equipment, intellectual property, inventory, cash and cash equivalents, deposit accounts, and security accounts. The Credit Agreement also restricts payments and other distributions unless certain conditions are met, which could restrict the Company’s ability to pay dividends.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

+ Details

Leases - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 31, 2023
Operating Leases
Remainder of fiscal 2024	$ 2,127
2025	8,330
2026	6,764
2027	4,900
2028	3,383
Thereafter	8,954
Total lease payments	34,458
Less: Interest	(4,650)
Present value of lease liability	29,808
Finance Leases
Remainder of fiscal 2024	271
2025	1,030
2026	934
2027	858
2028	845
Thereafter	436
Total lease payments	4,374
Less: Interest	(729)
Present value of lease liability	3,645
Total
Remainder of fiscal year 2024	2,398
2025	9,360
2026	7,698
2027	5,758
2028	4,228
Thereafter	9,390
Total lease payments	38,832
Less: Interest	(5,379)
Present value of lease liability	$ 33,453	$ 35,951

Inventories, Net (Tables)

9 Months Ended

Sep. 28, 2024

Inventory Disclosure [Abstract]

Schedule of inventories, net

Inventories, net consisted of the following (in thousands):



	September 28, 2024		December 31, 2023
Raw materials	$	46,941	$	55,081
Finished goods		28,001		42,056
	$	74,942	$	97,137

Acquisitions (Tables)

9 Months Ended

Sep. 28, 2024

Business Acquisition [Line Items]

Summary of purchase price allocation

The following summarizes the preliminary allocation for the Company’s acquisition of Coverstar Central as of September 28, 2024:


(in thousands)	August 2, 2024
Total consideration	$	71,035
Allocation:
Cash		2,084
Trade receivables		7,020
Inventories		4,293
Prepaid expenses and other current assets		53
Property and equipment		344
Intangible assets		38,220
Deferred tax assets		43
Total assets acquired, excluding goodwill		52,057
Accounts payable		131
Accrued expenses and other current liabilities		2,457
Total liabilities assumed		2,588
Total fair value of net assets acquired, excluding goodwill		49,469
Goodwill	$	21,566

Schedule of purchase price to specific intangible asset categories

The Company allocated a portion of the total consideration to specific intangible asset categories as follows:


	Fair Value		Amortization
Definite-lived intangible assets:	(in thousands)		Period (in years)
Dealer relationships	$	37,820	13
Order backlog		420	1

Schedule of net sales and net loss from acquiree included in the Company's results from the Acquisition Date

The following are the incremental net sales and incremental net loss from Coverstar Central included in the Company’s results from the Acquisition Date through September 28, 2024:


(in thousands)	Amount
Net sales	$	4,122
Net loss	$	(604)

Coverstar Central, LLC

Business Acquisition [Line Items]

Schedule of pro forma financial information



	Three Fiscal Quarters Ended
	September 28,		September 30,
(in thousands)	2024		2023
Net sales	$	433,522	$	492,201
Net income	$	16,458	$	4,050

Summary of Significant Accounting Policies

9 Months Ended

Sep. 28, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Unaudited Interim Financial Information

The unaudited condensed consolidated balance sheet at December 31, 2023 was derived from audited financial statements but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements as of September 28, 2024 and for the fiscal quarter and three fiscal quarters ended September 28, 2024 and September 30, 2023, respectively, have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with Latham Group, Inc.’s audited consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2023 included in the Company’s 2023 Annual Report on Form 10-K, filed with the SEC on March 13, 2024 (the “Annual Report”). In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of these condensed consolidated financial statements, have been included. The Company’s results of operations for the fiscal quarter and three fiscal quarters ended September 28, 2024 are not necessarily indicative of the results of operations that may be expected for the fiscal year ending December 31, 2024 or other interim periods thereof.

Use of Estimates

The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience, known trends, and other market-specific relevant factors that it believes to be reasonable under the circumstances. Estimates are evaluated on an ongoing basis and

revised as there are changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known.

Seasonality

Although the Company generally has demand for its products throughout the fiscal year, its business is seasonal and weather is one of the principal external factors affecting the business. Historically, net sales and net income are highest (or net loss is lowest) during the second and third fiscal quarters, representing the peak months of swimming pool use, pool installation, and remodeling and repair activities. Severe weather may also affect net sales in all periods.

Significant Accounting Policies

Refer to the Annual Report for a discussion of the Company’s significant accounting policies, as updated below.

Recently Issued Accounting Pronouncements

The Company qualifies as “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 and has elected to “opt in” to the extended transition related to complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public and nonpublic companies, the Company will adopt the new or revised standard at the time nonpublic companies adopt the new or revised standard and will do so until such time that the Company either (i) irrevocably elects to “opt out” of such extended transition period or (ii) no longer qualifies as an emerging growth company. The Company may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which improves financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful analysis. For all entities, ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements, with early adoption permitted. The Company is currently evaluating ASU 2023-07 and its potential impact on the notes to the condensed consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), in an effort to enhance the transparency and decision usefulness of income tax disclosures. For all entities, ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The amendments should be applied prospectively with retrospective application permitted. Early adoption is also permitted. The Company is currently evaluating ASU 2023-09 and its potential impact on the notes to the condensed consolidated financial statements.

In March 2024, the FASB issued ASU 2024-01, Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards (“ASU 2024-01”), which improves financial reporting by providing clarity on when an entity should apply the scope guidance in paragraph 718-10-15-3. ASU 2024-01 is effective for public business entities for fiscal years beginning after December 15, 2024. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2025. The amendments should be applied retrospectively to all prior periods presented in the financial statements, with early adoption permitted. The Company is currently evaluating ASU 2024-01 and its potential impact on the condensed consolidated financial statements.

Inventories, Net (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 46,941	$ 55,081
Finished goods	28,001	42,056
Inventory, net, Total	$ 74,942	$ 97,137

Stock-Based Compensation - Performance Stock Units (Details) - $ / shares	3 Months Ended	9 Months Ended
	Mar. 30, 2024	Sep. 28, 2024	May 02, 2023
Weighted Average Grant Date Fair Value
Shares reserved for issuance		21,170,212	8,000,000
Performance Stock Units
Shares
Balance at beginning	0	0
Granted	443,100
Adjustment for expected performance achievement	0
Forfeited	0
Balance at ending	443,100
Weighted Average Grant Date Fair Value
Balance at beginning	$ 0	$ 0
Granted	2.91
Adjustment for expected performance achievement	0
Forfeited	0
Balance at ending	$ 2.91
Performance level percent		100.00%
Performance period		1 year
Additional shares authorized		443,100
Performance Stock Units \| Maximum
Weighted Average Grant Date Fair Value
Performance level percent		200.00%
Performance Stock Units \| Minimum
Weighted Average Grant Date Fair Value
Performance level percent		0.00%
Performance Stock Units \| Maximum performance level
Weighted Average Grant Date Fair Value
Performance level percent		200.00%

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 28, 2024

Share-Based Payment Arrangement [Abstract]

Summary of stock-based compensation expense



	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Cost of sales	$	—	$	143	$	—	$	(57)
Selling, general, and administrative		1,844		2,211		5,187		14,944
	$	1,844	$	2,354	$	5,187	$	14,887

Nonvested Restricted Stock Shares Activity [Table Text Block]

The following table represents the Company’s restricted stock awards activity during the three fiscal quarters ended September 28, 2024:


		Weighted-
		Average Grant-
	Shares	Date Fair Value
Outstanding at January 1, 2024	42,886	$	19.00
Granted	—		—
Vested	(21,443)		19.00
Forfeited	—		—
Outstanding at September 28, 2024	21,443	$	19.00

Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block]

The following table represents the Company’s restricted stock units activity during the three fiscal quarters ended September 28, 2024:


		Weighted-
		Average Grant-
	Shares	Date Fair Value
Outstanding at January 1, 2024	2,235,479	$	3.60
Granted	2,987,677		2.96
Vested	(614,477)		3.67
Forfeited	(220,876)		3.59
Outstanding at September 28, 2024	4,387,803	$	3.16

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

The following table represents the Company’s stock options activity during the three fiscal quarters ended September 28, 2024:


			Weighted-	Weighted-
			Average	Average
		Exercise Price		Remaining	Aggregate
	Shares	per Share		Contract Term	Intrinsic Value
				(in years)	(in thousands)
Outstanding at January 1, 2024	1,554,294	$	15.43
Granted	—		—
Exercised	—		—
Forfeited	(61,384)		16.74
Expired	(95,626)		17.76
Outstanding at September 28, 2024	1,397,284	$	15.22	7.15	$	137,809
Vested and expected to vest at September 28, 2024	1,397,284	$	15.22	7.15	$	137,809
Options exercisable at September 28, 2024	817,183	$	15.79	7.00	$	62,885

Schedule of stock appreciation rights activity


			Weighted-	Weighted-
			Average	Average
		Exercise Price		Remaining	Aggregate
	Shares	per Share		Contract Term	Intrinsic Value
				(in years)	(in thousands)
Outstanding at January 1, 2024	755,802	$	3.16
Granted	—		—
Exercised	—		—
Forfeited	(49,342)		3.24
Outstanding at September 28, 2024	706,460	$	3.15	8.63	$	2,533,254
Vested and expected to vest at September 28, 2024	706,460	$	3.15	8.63	$	2,533,254
Stock appreciation rights exercisable at September 28, 2024	161,893	$	3.24	8.59	$	566,626

Schedule of PSU activity

The following table represents the Company’s PSU activity during the three fiscal quarters ended September 28, 2024:


			Weighted-
			Average
			Grant Date
	Shares		Fair Value

Outstanding at January 1, 2024	—	$	—
Granted	443,100		2.91
Adjustment for expected performance achievement ⁽¹⁾	—		—
Forfeited	—		—
Outstanding at September 28, 2024 ⁽²⁾	443,100	$	2.91

(1)Represents the adjustment to previously granted PSUs based on the Company’s performance expectations as of September 28, 2024.

(2)An additional 443,100 PSUs could potentially be included if the maximum performance level of 200% is earned for all PSUs outstanding as of September 28, 2024.

Goodwill and Intangible Assets, Net - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 431,713		$ 431,713		$ 393,493
Foreign Currency Translation	241		241		108
Accumulated Amortization	130,645		130,645		110,808
Net Amount	301,309		301,309		282,793
Amortization of Intangible Assets	6,982	$ 6,635	19,822	$ 19,902
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	148,100		148,100		148,100
Foreign Currency Translation	159		159		72
Accumulated Amortization	34,533		34,533		29,583
Net Amount	113,726		113,726		118,589
Patented technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	16,126		16,126		16,126
Foreign Currency Translation	2		2		1
Accumulated Amortization	9,906		9,906		8,713
Net Amount	6,222		6,222		7,414
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	13,000		13,000		13,000
Foreign Currency Translation	0		0		0
Accumulated Amortization	2,456		2,456		1,806
Net Amount	10,544		10,544		11,194
Pool Designs
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	13,628		13,628		13,628
Foreign Currency Translation	79		79		35
Accumulated Amortization	3,675		3,675		2,973
Net Amount	10,032		10,032		10,690
Franchise relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,187		1,187		1,187
Foreign Currency Translation	0		0		0
Accumulated Amortization	1,187		1,187		1,187
Net Amount	0		0		0
Dealer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	235,176		235,176		197,376
Foreign Currency Translation	1		1		0
Accumulated Amortization	74,742		74,742		62,470
Net Amount	160,435		160,435		134,906
Order backlog
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,020		2,020		1,600
Foreign Currency Translation	0		0		0
Accumulated Amortization	1,670		1,670		1,600
Net Amount	350		350		0
Non-Competition Agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,476		2,476		2,476
Foreign Currency Translation	0		0		0
Accumulated Amortization	2,476		2,476		2,476
Net Amount	$ 0		$ 0		$ 0

Fair Value Measurements (Tables)

9 Months Ended

Sep. 28, 2024

Fair Value Disclosures [Abstract]

Schedule of financial liabilities at fair value on a recurring basis



	September 28, 2024				December 31, 2023
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Term Loan	$	282,753	$	271,444	$	301,201	$	289,153

Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 28, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

5. GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

The carrying amount of goodwill as of September 28, 2024 and as of December 31, 2023 was $153.0 million and $131.4 million, respectively. The change in the carrying value during the three fiscal quarters ended September 28, 2024 was primarily driven by an addition of $21.6 million relating to the Coverstar Central Acquisition.

Intangible Assets

Intangible assets, net as of September 28, 2024 consisted of the following (in thousands):


	September 28, 2024
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	148,100	$	159	$	34,533	$	113,726
Patented technology		16,126		2		9,906		6,222
Technology		13,000		—		2,456		10,544
Pool designs		13,628		79		3,675		10,032
Franchise relationships		1,187		—		1,187		—
Dealer relationships		235,176		1		74,742		160,435
Order backlog		2,020		—		1,670		350
Non-competition agreements		2,476		—		2,476		—
	$	431,713	$	241	$	130,645	$	301,309

The Company recognized $7.0 million and $19.8 million of amortization expense related to intangible assets during the fiscal quarter and three fiscal quarters ended September 28, 2024, respectively. The Company recognized $6.6 million and $19.9 million of amortization expense related to intangible assets during the fiscal quarter and three fiscal quarters ended September 30, 2023, respectively.

Intangible assets, net as of December 31, 2023 consisted of the following (in thousands):


	December 31, 2023
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	148,100	$	72	$	29,583	$	118,589
Patented technology		16,126		1		8,713		7,414
Technology		13,000		—		1,806		11,194
Pool designs		13,628		35		2,973		10,690
Franchise relationships		1,187		—		1,187		—
Dealer relationships		197,376		—		62,470		134,906
Order backlog		1,600		—		1,600		—
Non-competition agreements		2,476		—		2,476		—
	$	393,493	$	108	$	110,808	$	282,793

The Company estimates that amortization expense related to definite-lived intangible assets will be as follows in each of the next five fiscal years and thereafter (in thousands):


	Estimated Future
	Amortization
Fiscal Year Ending	Expense
Remainder of fiscal year 2024	$	7,259
2025		28,704
2026		28,459
2027		28,459
2028		27,501
Thereafter		180,927
	$	301,309

Long-Term Debt (Tables)

9 Months Ended

Sep. 28, 2024

Debt Disclosure [Abstract]

Schedule of components of the Company's outstanding debt obligations



	September 28, 2024		December 31, 2023
Term Loan	$	289,687	$	309,313
Revolving Credit Facility		—		—
Less: Unamortized discount and debt issuance costs		(6,934)		(8,112)
Total debt		282,753		301,201
Less: Current portion of long-term debt		(3,250)		(21,250)
Total long-term debt	$	279,503	$	279,951

Schedule of principal payments due on the outstanding debt



Fiscal Year Ending	Term Loan
Remainder of fiscal year 2024	$	1,625
2025		3,250
2026		3,250
2027		3,250
2028		3,250
Thereafter		275,062
	$	289,687

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(22))
-SubTopic 10
-Topic 210
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69B

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69E

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-3

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477734/942-470-50-3

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-8

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-6

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-7

+ Details

Long-Term Debt - Interest rate swap (Details) - Interest rate swap - USD ($) $ in Millions	Mar. 10, 2023	Feb. 28, 2022
Derivative [Line Items]
Fixed borrowing rate	4.3725%	0.496%
Derivative notional amount	$ 161.0	$ 200.0

Stock-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units	9 Months Ended
	Sep. 28, 2024 $ / shares shares
Shares
Balance at beginning \| shares	2,235,479
Granted \| shares	2,987,677
Vested \| shares	(614,477)
Forfeited \| shares	(220,876)
Balance at ending \| shares	4,387,803
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Balance at beginning \| $ / shares	$ 3.60
Granted \| $ / shares	2.96
Vested \| $ / shares	3.67
Forfeited \| $ / shares	3.59
Balance at ending \| $ / shares	$ 3.16

Related Party Transactions

9 Months Ended

Sep. 28, 2024

Related Party Transactions

15. RELATED PARTY TRANSACTIONS

BrightAI Services

Starting in 2020, BrightAI Corporation (“BrightAI”) has rendered services to the Company, for which the cost has been capitalized as internal-use software. A co-founder of BrightAI served on the Company’s Board of Directors from December 9, 2020 until his resignation on February 21, 2024. In December 2022, the Company executed an additional agreement with BrightAI for the provision of hardware to run the technology developed by BrightAI and the Company. During the three fiscal quarters ended September 28, 2024 and September 30, 2023, the Company incurred no material amounts and $0.8 million, respectively, associated with services performed by BrightAI, which was recorded as construction in progress within property and equipment, net on the condensed consolidated balance sheet as of September 30, 2023. As of December 31, 2023, the Company had no accounts payable related to BrightAI.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
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-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 1
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-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-URI https://asc.fasb.org/850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 28, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	900,000,000	900,000,000
Common stock, shares issued	115,592,865	114,871,782
Common stock, shares outstanding	115,592,865	114,871,782

Leases - Lease expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases - Lease expense (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Components of lease expense:
Operating lease expense	$ 2,170	$ 2,577	$ 6,462	$ 7,245
Finance lease amortization of assets	212	199	636	465
Finance lease interest on lease liabilities	78	87	242	207
Short-term lease expense	160	96	280	246
Variable lease expense	98	315	378	910
Total lease expense	$ 2,718	$ 3,274	$ 7,998	$ 9,073

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net sales	$ 150,496	$ 160,778	$ 421,247	$ 475,625
Cost of sales	101,807	112,633	288,948	343,877
Gross profit	48,689	48,145	132,299	131,748
Selling, general, and administrative expense	28,336	23,431	81,174	86,697
Amortization	6,982	6,635	19,822	19,902
Income from operations	13,371	18,079	31,303	25,149
Other expense:
Interest expense, net	9,155	5,980	20,150	21,270
Other (income) expense, net	(693)	1,031	1,697	205
Total other expense, net	8,462	7,011	21,847	21,475
Earnings from equity method investment	944	1,771	2,785	2,468
Income before income taxes	5,853	12,839	12,241	6,142
Income tax expense (benefit)	(43)	6,686	931	8,642
Net income (loss)	$ 5,896	$ 6,153	$ 11,310	$ (2,500)
Net loss per share attributable to common stockholders:
Basic	$ 0.05	$ 0.05	$ 0.10	$ (0.02)
Diluted	$ 0.05	$ 0.05	$ 0.10	$ (0.02)
Weighted-average common shares outstanding - basic and diluted
Basic	115,564,382	113,538,533	115,358,274	112,629,851
Diluted	118,445,235	114,656,761	117,130,609	112,629,851

Long-Term Debt - Term Loan (Details) - USD ($)		3 Months Ended	9 Months Ended
Long-Term Debt - Term Loan (Details) - USD ($)	Feb. 23, 2022	Sep. 28, 2024	Sep. 28, 2024	Sep. 30, 2023	Dec. 31, 2023
Debt Instrument [Line Items]
Repayment of long term debt		$ 18,000,000.0	$ 19,625,000	$ 12,437,000
Amount outstanding, net of discount and issuance costs		282,753,000	282,753,000		$ 301,201,000
Discount and debt issuance costs		6,934,000	6,934,000		$ 8,112,000
Term Loan Facility
Debt Instrument [Line Items]
Repayment amount to be paid quarterly	$ 812,500
Principal payments calculated as percent of outstanding principal	0.25%
Mandatory prepayment rate as a percentage of excess cash flow	50.00%
Mandatory prepayment rate as a percentage of non-permitted indebtedness	100.00%
Amount outstanding, net of discount and issuance costs		282,800,000	282,800,000
Debt issuance costs		3,900,000	3,900,000
Unamortized discount		$ 3,100,000	$ 3,100,000
Effective interest rate			9.22%
Term Loan Facility \| SOFR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	3.75%
Term Loan Facility \| SOFR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	4.00%
Term Loan Facility \| Base Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	2.75%
Term Loan Facility \| Base Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	3.00%

Product Warranties (Tables)

9 Months Ended

Sep. 28, 2024

Product Warranties Disclosures [Abstract]

Schedule of warranty reserve activity

The warranty reserve activity consisted of the following (in thousands):



	Three Fiscal Quarters Ended
	September 28, 2024		September 30, 2023
Balance at the beginning of the fiscal year	$	3,161	$	3,399
Adjustments to reserve		2,873		4,737
Less: Settlements made (in cash or in kind)		(2,513)		(4,724)
Balance at the end of the fiscal quarter	$	3,521	$	3,412

Related Party Transactions - Bright AI Services (Details) - Bright AI Services $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)
Related Party Transaction [Line Items]
Accounts payable	$ 0.0
Development Of Internal Use Software
Related Party Transaction [Line Items]
Costs incurred	$ 0.8

Nature of the Business (Details) $ in Millions	Apr. 27, 2021 USD ($) shares	Apr. 13, 2021
Business Acquisition [Line Items]
Stock split ratio		109,673,709
IPO
Business Acquisition [Line Items]
Proceeds from sale of common stock (in shares)	23,000,000
Net proceeds from the IPO \| $	$ 399.3
Underwriters Option
Business Acquisition [Line Items]
Proceeds from sale of common stock (in shares)	3,000,000

Product Warranties (Details) - USD ($) $ in Thousands	9 Months Ended
Product Warranties (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Sep. 30, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at the beginning of the fiscal year	$ 3,161	$ 3,399
Adjustments to reserve	2,873	4,737
Less: Settlements made (in cash or in kind)	(2,513)	(4,724)
Balance at the end of the fiscal quarter	$ 3,521	$ 3,412

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 28, 2024	Nov. 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 28, 2024
Document Fiscal Year Focus	2024
Document Transition Report	false
Securities Act File Number	001-40358
Entity Registrant Name	Latham Group, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-2797583
Entity Address, Address Line One	787 Watervliet Shaker Road
Entity Address, City or Town	Latham
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	12110
City Area Code	800
Local Phone Number	833-3800
Title of 12(b) Security	Common stock, par value $0.0001 per share
Trading Symbol	SWIM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		115,624,575
Entity Central Index Key	0001833197
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Amendment Flag	false

Stock-Based Compensation

9 Months Ended

Sep. 28, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

13. STOCK-BASED COMPENSATION

On April 12, 2021, the Company’s stockholders approved the 2021 Omnibus Equity Incentive Plan (the “2021 Omnibus Equity Plan”), which became effective on April 22, 2021. The 2021 Omnibus Equity Plan provides for the issuance of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock units and other stock-based and cash-based awards. The maximum grant date fair value of cash and equity awards that may be awarded to a non-employee director under the 2021 Omnibus Equity Plan during any one fiscal year, together with any cash fees paid to such non-employee director during such fiscal year, is $750,000.

On May 2, 2023, at the 2023 annual meeting of stockholders of the Company, the stockholders approved the first amendment (the “First Amendment”) to the 2021 Omnibus Equity Plan, which was previously approved by the Board of Directors of the Company. The First Amendment became effective upon stockholder approval, and included an increase by 8,000,000 shares of the share pool, i.e. the maximum number of shares of the Company’s common stock that may be issued pursuant to awards granted under the 2021 Omnibus Equity Plan.

Except as amended by the First Amendment, the other terms of the 2021 Omnibus Equity Plan remain in full force and effect. Subsequent to the First Amendment, the maximum aggregate number of shares reserved for issuance under the 2021 Omnibus Equity Plan is 21,170,212 shares.

The following table summarizes the Company’s stock-based compensation expense (in thousands):



	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Cost of sales	$	—	$	143	$	—	$	(57)
Selling, general, and administrative		1,844		2,211		5,187		14,944
	$	1,844	$	2,354	$	5,187	$	14,887

As of September 28, 2024, total unrecognized stock-based compensation expense related to all unvested stock-based awards was $11.6 million, which is expected to be recognized over a weighted-average period of 2.0 years.

Restricted Stock Awards

The following table represents the Company’s restricted stock awards activity during the three fiscal quarters ended September 28, 2024:


		Weighted-
		Average Grant-
	Shares	Date Fair Value
Outstanding at January 1, 2024	42,886	$	19.00
Granted	—		—
Vested	(21,443)		19.00
Forfeited	—		—
Outstanding at September 28, 2024	21,443	$	19.00

Restricted Stock Units

The following table represents the Company’s restricted stock units activity during the three fiscal quarters ended September 28, 2024:


		Weighted-
		Average Grant-
	Shares	Date Fair Value
Outstanding at January 1, 2024	2,235,479	$	3.60
Granted	2,987,677		2.96
Vested	(614,477)		3.67
Forfeited	(220,876)		3.59
Outstanding at September 28, 2024	4,387,803	$	3.16

Stock Options

The following table represents the Company’s stock options activity during the three fiscal quarters ended September 28, 2024:


			Weighted-	Weighted-
			Average	Average
		Exercise Price		Remaining	Aggregate
	Shares	per Share		Contract Term	Intrinsic Value
				(in years)	(in thousands)
Outstanding at January 1, 2024	1,554,294	$	15.43
Granted	—		—
Exercised	—		—
Forfeited	(61,384)		16.74
Expired	(95,626)		17.76
Outstanding at September 28, 2024	1,397,284	$	15.22	7.15	$	137,809
Vested and expected to vest at September 28, 2024	1,397,284	$	15.22	7.15	$	137,809
Options exercisable at September 28, 2024	817,183	$	15.79	7.00	$	62,885

The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock.

Stock Appreciation Rights

During the fiscal quarter ended April 1, 2023, as a portion of the annual equity award grants to the Company’s executive officers, the Compensation Committee of the Board of Directors approved stock appreciation rights for an aggregate of 790,181 shares of the Company’s common stock, with a strike price of $3.24 per share. At the time of such approval, the Company did not have enough shares of the Company’s common stock in the share pool under the 2021 Omnibus Equity Plan to support such grant. As of April 1, 2023, the contingent grant of stock appreciation rights remained subject to stockholder approval of the First Amendment. On May 2, 2023, following stockholder approval of the First Amendment, the foregoing stock appreciation right awards became effective without condition.

The following table represents the Company’s stock appreciation rights activity during the three fiscal quarters ended September 28, 2024:


			Weighted-	Weighted-
			Average	Average
		Exercise Price		Remaining	Aggregate
	Shares	per Share		Contract Term	Intrinsic Value
				(in years)	(in thousands)
Outstanding at January 1, 2024	755,802	$	3.16
Granted	—		—
Exercised	—		—
Forfeited	(49,342)		3.24
Outstanding at September 28, 2024	706,460	$	3.15	8.63	$	2,533,254
Vested and expected to vest at September 28, 2024	706,460	$	3.15	8.63	$	2,533,254
Stock appreciation rights exercisable at September 28, 2024	161,893	$	3.24	8.59	$	566,626

The aggregate intrinsic value of stock appreciation rights is calculated as the difference between the strike price of the stock appreciation rights and the fair value of the Company’s common stock for those stock appreciation rights that had strike prices lower than the fair value of the Company’s common stock.

Performance Stock Units

During the three fiscal quarters ended September 28, 2024, the Compensation Committee of the Board of Directors approved the grant of performance stock units (“PSUs”) as a portion of the annual equity award to the Company’s executive officers.

The PSUs will be earned at 0% to 200% of the target PSUs (with 100% of PSUs being earned at target performance, and linear interpolation between threshold and target and maximum performance) based on the Company’s achievement of Adjusted EBITDA, as defined in the award agreement, over a one-fiscal year performance period ending December 31, 2024. Any earned PSUs cliff vest on the third anniversary of the grant date. Adjusted EBITDA is considered a performance condition and the grant date fair value corresponds with management’s expectation of the probable outcome of the performance condition as of the grant date. The grant date fair value is determined based on the fair market value of the Company’s stock at market close on the grant date multiplied by the target number of shares subject to the award. The probability of achieving the performance criteria is assessed quarterly during the performance period. Compensation expense related to unvested PSUs is recognized ratably over the service period.

The following table represents the Company’s PSU activity during the three fiscal quarters ended September 28, 2024:


			Weighted-
			Average
			Grant Date
	Shares		Fair Value

Outstanding at January 1, 2024	—	$	—
Granted	443,100		2.91
Adjustment for expected performance achievement ⁽¹⁾	—		—
Forfeited	—		—
Outstanding at September 28, 2024 ⁽²⁾	443,100	$	2.91

(1)Represents the adjustment to previously granted PSUs based on the Company’s performance expectations as of September 28, 2024.

(2)An additional 443,100 PSUs could potentially be included if the maximum performance level of 200% is earned for all PSUs outstanding as of September 28, 2024.

Leases

9 Months Ended

Sep. 28, 2024

Leases [Abstract]

Leases

9. LEASES

For leases with initial terms greater than 12 months, the Company considers these right-of-use assets and records the related asset and obligation at the present value of lease payments over the term. For leases with initial terms equal to or less than 12 months, the Company does not consider them as right-of-use assets and instead considers them short-term lease costs that are recognized on a straight-line basis over the lease term. The Company’s leases may include escalation clauses, renewal options, and/or termination options that are factored into the Company’s determination of lease term and lease payments when it is reasonably certain the option will be exercised. The Company elected to take the practical expedient and not separate lease and non-lease components of contracts. The Company estimates an incremental borrowing rate to discount the lease payments based on information available at lease commencement because the implicit rate of the lease is generally not known.

The Company leases manufacturing facilities, office space, land, and certain vehicles and equipment under operating leases. The Company also leases certain vehicles and equipment under finance leases. The Company determines if an arrangement is a lease at

inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The components of lease expense for the fiscal quarter and three fiscal quarters ended September 28, 2024 and September 30, 2023 were as follows (in thousands):


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Operating lease expense	$	2,170	$	2,577	$	6,462	$	7,245
Finance lease amortization of assets		212		199		636		465
Finance lease interest on lease liabilities		78		87		242		207
Short-term lease expense		160		96		280		246
Variable lease expense		98		315		378		910
Total lease expense	$	2,718	$	3,274	$	7,998	$	9,073

Operating and finance lease right-of-use assets and lease-related liabilities as of September 28, 2024 and December 31, 2023 were as follows (in thousands):


	September 28, 2024		December 31, 2023		Classification

Lease right-of-use assets:
Operating leases	$	28,715	$	30,788	Operating lease right-of-use assets
Finance leases		3,463		3,912	Other assets
Total lease right-of-use assets	$	32,178	$	34,700

Lease-related liabilities
Current
Operating leases	$	7,053	$	7,133	Current operating lease liabilities
Finance leases		788		746	Accrued expenses and other current liabilities
Non-current
Operating leases		22,755		24,787	Non-current operating lease liabilities
Finance leases		2,857		3,285	Other long-term liabilities
Total lease liabilities	$	33,453	$	35,951

The table below presents supplemental information related to leases as of September 28, 2024 and December 31, 2023:


	September 28, 2024			December 31, 2023
Weighted-average remaining lease term (years)
Finance leases		4.6			5.2
Operating leases		5.4			5.7
Weighted-average discount rate
Finance leases		8.2	%		8.2	%
Operating leases		5.3	%		5.1	%

The table below presents supplemental information related to the cash flows for operating leases recorded on the condensed consolidated statements of cash flows (in thousands):


	Three Fiscal Quarters Ended
	September 28, 2024		September 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	5,410	$	5,763

The following table summarizes fiscal year maturities of operating lease liabilities as of September 28, 2024 (in thousands):


	Operating Leases		Finance Leases		Total
Remainder of fiscal year 2024	$	2,127	$	271	$	2,398
2025		8,330		1,030		9,360
2026		6,764		934		7,698
2027		4,900		858		5,758
2028		3,383		845		4,228
Thereafter		8,954		436		9,390
Total lease payments		34,458		4,374		38,832
Less: Interest		(4,650)		(729)		(5,379)
Present value of lease liability	$	29,808	$	3,645	$	33,453

Restructuring Costs	9 Months Ended
Restructuring Costs	Sep. 28, 2024
Restructuring and Related Activities [Abstract]
Restructuring Costs

Stockholders' Equity (Details) - Repurchase Program - USD ($) $ in Millions	3 Months Ended
	Jul. 01, 2023	Sep. 28, 2024	May 10, 2022
Share Repurchase Program [Line Items]
Amount authorized			$ 100.0
Amount remaining for repurchases		$ 77.0
Common Stock
Share Repurchase Program [Line Items]
Number of shares repurchased during the period	(54,271)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income (loss)	$ 11,310	$ (2,500)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	32,291	29,784
Amortization of deferred financing costs and debt discount	1,290	1,290
Non-cash lease expense	5,349	5,874
Change in fair value of interest rate swaps	887	1,790
Stock-based compensation expense	5,187	14,887
Bad debt expense	1,817	4,984
Other non-cash, net	1,666	34
Earnings from equity method investment	(2,785)	(2,468)
Distributions received from equity method investment	3,293	2,330
Increase (Decrease) in Operating Capital
Trade receivables	(35,639)	(28,652)
Inventories	25,518	61,738
Prepaid expenses and other current assets	(2,318)	(25)
Income tax receivable	(6,554)	(1,539)
Other assets	645	(4,289)
Accounts payable	10,385	2,085
Accrued expenses and other current liabilities	3,430	(169)
Other long-term liabilities	(622)	2,969
Net cash used in operating activities	55,150	88,123
Cash flows from investing activities:
Purchases of property and equipment	(13,861)	(28,273)
Acquisition of business, net of cash acquired	(64,046)	0
Net cash used in investing activities	(77,907)	(28,273)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Payments on long-term debt borrowings	(19,625)	(12,437)
Proceeds from borrowings on revolving credit facility	0	48,000
Payments on revolving credit facilities	0	(48,000)
Repayments of finance lease obligations	(573)	(437)
Net cash used in financing activities	(20,198)	(12,874)
Effect of exchange rate changes on cash	54	(1,489)
Net (decrease) increase in cash	(42,901)	45,487
Cash at beginning of period	102,763	32,626
Cash at end of period	59,862	78,113
Supplemental cash flow information:
Cash paid for interest	20,481	18,538
Income taxes paid, net	8,919	2,990
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment included in accounts payable and accrued expenses	1,201	484
Right-of-use operating and finance lease assets obtained in exchange for lease liabilities	$ 3,538	$ 5,766

Long-Term Debt - Principal payments due (Details) $ in Thousands	Sep. 28, 2024 USD ($)
Long-Term Debt, Fiscal Year Maturity [Abstract]
Remainder of fiscal year 2024	$ 1,625
2025	3,250
2026	3,250
2027	3,250
2028	3,250
Thereafter	275,062
Total payments due	$ 289,687

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Apr. 12, 2021	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023	May 02, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Maximum grant date fair value of cash and equity awards that may be awarded to a non-employee director	$ 750,000
Shares reserved for issuance		21,170,212		21,170,212		8,000,000
Share based compensation expense		$ 1,844	$ 2,354	$ 5,187	$ 14,887
Total unrecognized stock-based compensation expense		11,600		$ 11,600
Total unrecognized stock-based compensation expense expected to be recognized over a weighted-average period				2 years
Cost of Sales
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation expense		0	143	$ 0	(57)
Selling, General and Administrative
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation expense		$ 1,844	$ 2,211	$ 5,187	$ 14,944

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iii)
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(01)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(02)
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(04)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(01)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(02)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
-Subparagraph (c)(2)(iii)(03)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

+ Details

Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 31, 2023	Feb. 23, 2022
Debt Instrument [Line Items]
Gross debt	$ 289,687
Less: Unamortized discount and debt issuance costs	(6,934)	$ (8,112)
Total debt	282,753	301,201
Less: Current portion of long-term debt	(3,250)	(21,250)
Total long-term debt	279,503	279,951
Revolving Credit Facility
Debt Instrument [Line Items]
Total debt	0
Maximum borrowing capacity	75,000		$ 75,000
Term Loan Facility
Debt Instrument [Line Items]
Gross debt	289,687	309,313
Total debt	282,800
Maximum borrowing capacity			$ 325,000
Revolving Credit Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Gross debt	$ 0	$ 0

Net Income (Loss) Per Share (Tables)

9 Months Ended

Sep. 28, 2024

Earnings Per Share [Abstract]

Schedule of basic and diluted net loss per share

Basic and diluted net income (loss) per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data):


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Numerator:
Net income (loss) attributable to common stockholders	$	5,896	$	6,153	$	11,310	$	(2,500)
Denominator:
Weighted-average common shares outstanding
Basic		115,564,382		113,538,533		115,358,274		112,629,851
Diluted		118,445,235		114,656,761		117,130,609		112,629,851
Net income (loss) per share attributable to common stockholders:
Basic	$	0.05	$	0.05	$	0.10	$	(0.02)
Diluted	$	0.05	$	0.05	$	0.10	$	(0.02)

Schedule of antidilutive securities excluded from computation of diluted net loss per share


	Fiscal Quarter Ended		Three Fiscal Quarters Ended
	September 28, 2024	September 30, 2023	September 28, 2024	September 30, 2023
Restricted stock awards	—	64,329	14,295	909,375
Restricted stock units	6,693	57,885	29,700	220,255
Stock options	1,402,036	1,644,520	1,451,745	1,753,740
Stock appreciation rights	—	738,940	435,194	422,874
Performance stock units	—	—	27,708	—

Leases (Tables)

9 Months Ended

Sep. 28, 2024

Leases [Abstract]

Summary of components of lease expense


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Operating lease expense	$	2,170	$	2,577	$	6,462	$	7,245
Finance lease amortization of assets		212		199		636		465
Finance lease interest on lease liabilities		78		87		242		207
Short-term lease expense		160		96		280		246
Variable lease expense		98		315		378		910
Total lease expense	$	2,718	$	3,274	$	7,998	$	9,073

Schedule of supplemental lease information

Operating and finance lease right-of-use assets and lease-related liabilities as of September 28, 2024 and December 31, 2023 were as follows (in thousands):


	September 28, 2024		December 31, 2023		Classification

Lease right-of-use assets:
Operating leases	$	28,715	$	30,788	Operating lease right-of-use assets
Finance leases		3,463		3,912	Other assets
Total lease right-of-use assets	$	32,178	$	34,700

Lease-related liabilities
Current
Operating leases	$	7,053	$	7,133	Current operating lease liabilities
Finance leases		788		746	Accrued expenses and other current liabilities
Non-current
Operating leases		22,755		24,787	Non-current operating lease liabilities
Finance leases		2,857		3,285	Other long-term liabilities
Total lease liabilities	$	33,453	$	35,951

The table below presents supplemental information related to leases as of September 28, 2024 and December 31, 2023:


	September 28, 2024			December 31, 2023
Weighted-average remaining lease term (years)
Finance leases		4.6			5.2
Operating leases		5.4			5.7
Weighted-average discount rate
Finance leases		8.2	%		8.2	%
Operating leases		5.3	%		5.1	%

The table below presents supplemental information related to the cash flows for operating leases recorded on the condensed consolidated statements of cash flows (in thousands):


	Three Fiscal Quarters Ended
	September 28, 2024		September 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	5,410	$	5,763

Schedule of maturities of operating lease liabilities

The following table summarizes fiscal year maturities of operating lease liabilities as of September 28, 2024 (in thousands):


	Operating Leases		Finance Leases		Total
Remainder of fiscal year 2024	$	2,127	$	271	$	2,398
2025		8,330		1,030		9,360
2026		6,764		934		7,698
2027		4,900		858		5,758
2028		3,383		845		4,228
Thereafter		8,954		436		9,390
Total lease payments		34,458		4,374		38,832
Less: Interest		(4,650)		(729)		(5,379)
Present value of lease liability	$	29,808	$	3,645	$	33,453

Schedule of maturities of finance lease liabilities

The following table summarizes fiscal year maturities of operating lease liabilities as of September 28, 2024 (in thousands):


	Operating Leases		Finance Leases		Total
Remainder of fiscal year 2024	$	2,127	$	271	$	2,398
2025		8,330		1,030		9,360
2026		6,764		934		7,698
2027		4,900		858		5,758
2028		3,383		845		4,228
Thereafter		8,954		436		9,390
Total lease payments		34,458		4,374		38,832
Less: Interest		(4,650)		(729)		(5,379)
Present value of lease liability	$	29,808	$	3,645	$	33,453

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 31, 2023
Current assets:
Cash	$ 59,862	$ 102,763
Trade receivables, net	66,125	30,407
Inventories, net	74,942	97,137
Income tax receivable	7,537	983
Prepaid expenses and other current assets	9,372	7,327
Total current assets	217,838	238,617
Property and equipment, net	114,683	113,014
Equity method investment	25,431	25,940
Deferred tax assets	8,244	7,485
Operating lease right-of-use assets	28,715	30,788
Goodwill	153,043	131,363
Intangible assets, net	301,309	282,793
Other assets	4,148	5,003
Total assets	853,411	835,003
Current liabilities:
Current maturities of long-term debt	3,250	21,250
Current operating lease liabilities	7,053	7,133
Accrued expenses and other current liabilities	50,731	40,691
Total current liabilities	89,382	86,206
Long-term debt, net of discount, debt issuance costs, and current portion	279,503	279,951
Deferred income tax liabilities, net	40,088	40,088
Non-current operating lease liabilities	22,755	24,787
Other long-term liabilities	5,036	4,771
Total liabilities	436,764	435,803
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value; 100,000,000 shares authorized as of both September 28, 2024 and December 31, 2023; no shares issued and outstanding as of both September 28, 2024 and December 31, 2023	0	0
Common stock, $0.0001 par value; 900,000,000 shares authorized as of September 28, 2024 and December 31, 2023; 115,592,865 and 114,871,782 shares issued and outstanding, as of September 28, 2024 and December 31, 2023, respectively	12	11
Additional paid-in capital	464,871	459,684
Accumulated deficit	(45,645)	(56,956)
Accumulated other comprehensive loss	(2,591)	(3,539)
Total stockholders' equity	416,647	399,200
Total liabilities and stockholders' equity	853,411	835,003
Related Party
Current liabilities:
Accounts payable	0	8
Nonrelated Party
Current liabilities:
Accounts payable	$ 28,348	$ 17,124

Goodwill and Intangible Assets, Net - Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of fiscal year 2024	$ 7,259
2025	28,704
2026	28,459
2027	28,459
2028	27,501
Thereafter, Year Four	180,927
Net Amount	$ 301,309	$ 282,793

Acquisitions (Details) - USD ($) $ in Thousands		9 Months Ended
Acquisitions (Details) - USD ($) $ in Thousands	Aug. 02, 2024	Sep. 28, 2024	Sep. 30, 2023	Dec. 31, 2023
Business Acquisition [Line Items]
Total purchase price, net of cash acquired		$ 64,046	$ 0
Goodwill		153,043		$ 131,363
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill		153,043		$ 131,363
Coverstar Central, LLC
Business Acquisition [Line Items]
Total purchase price	$ 71,000
Business acquisition, cash consideration	66,100
Net working capital adjustment receivable	800
Business Acquisition, Transaction Costs	900
Business acquisition, contingent consideration	4,900
Goodwill	21,566	21,600
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Total consideration	71,035
Cash	2,084
Trade receivables	7,020
Inventories	4,293
Prepaid expenses and other current assets	53
Property and equipment	344
Intangible assets	38,220
Deferred tax assets	43
Total assets acquired, excluding goodwill	52,057
Accounts payable	131
Accrued expenses and other current liabilities	2,457
Total liabilities assumed	2,588
Total fair value of net assets acquired, excluding goodwill:	49,469
Goodwill	$ 21,566	$ 21,600

Long-Term Debt - Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) $ in Millions	Feb. 23, 2022	Sep. 28, 2024
Debt Instrument [Line Items]
Commitment fee rate range, depending on leverage ratio	0.375%
Debt issuance costs	$ 0.8
Maximum borrowing capacity	$ 75.0	$ 75.0
Minimum
Debt Instrument [Line Items]
Commitment fee rate range, depending on leverage ratio	0.25%
Maximum
Debt Instrument [Line Items]
Commitment fee rate range, depending on leverage ratio	0.50%
SOFR
Debt Instrument [Line Items]
Basis spread on variable rate	3.50%
Canadian Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%
EURIBOR or AUD Rate
Debt Instrument [Line Items]
Basis spread on variable rate	3.50%

Inventories, Net

9 Months Ended

Sep. 28, 2024

Inventory Disclosure [Abstract]

Inventories, Net

6. INVENTORIES, NET

Inventories, net consisted of the following (in thousands):



	September 28, 2024		December 31, 2023
Raw materials	$	46,941	$	55,081
Finished goods		28,001		42,056
	$	74,942	$	97,137

Leases - Operating and finance lease right-of-use assets and liabilities and Supplemental information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Dec. 31, 2023
Lease right-of-use assets:
Operating leases	$ 28,715		$ 30,788
Finance leases	$ 3,463		3,912
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets
Total lease right-of-use assets	$ 32,178		34,700
Lease-related liabilities
Operating leases, Current	7,053		7,133
Finance leases, Current	$ 788		746
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Current
Operating leases, Non-current	$ 22,755		24,787
Finance leases, Non-current	$ 2,857		3,285
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Noncurrent
Total finance lease liabilities	$ 33,453		$ 35,951
Weighted-average remaining lease term (years)
Finance leases	4 years 7 months 6 days		5 years 2 months 12 days
Operating leases	5 years 4 months 24 days		5 years 8 months 12 days
Weighted-average discount rate
Finance leases	8.20%		8.20%
Operating leases	5.30%		5.10%
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 5,410	$ 5,763

Stock-Based Compensation - Restricted Stock Awards (Details) - Restricted Stock Awards	9 Months Ended
	Sep. 28, 2024 $ / shares shares
Shares
Balance at beginning \| shares	42,886
Granted \| shares	0
Vested \| shares	(21,443)
Forfeited \| shares	0
Balance at ending \| shares	21,443
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Balance at beginning \| $ / shares	$ 19.00
Granted \| $ / shares	0
Vested \| $ / shares	19.00
Forfeited \| $ / shares	0
Balance at ending \| $ / shares	$ 19.00

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 28, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Financial Information The unaudited condensed consolidated balance sheet at December 31, 2023 was derived from audited financial statements but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements as of September 28, 2024 and for the fiscal quarter and three fiscal quarters ended September 28, 2024 and September 30, 2023, respectively, have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with Latham Group, Inc.’s audited consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2023 included in the Company’s 2023 Annual Report on Form 10-K, filed with the SEC on March 13, 2024 (the “Annual Report”). In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of these condensed consolidated financial statements, have been included. The Company’s results of operations for the fiscal quarter and three fiscal quarters ended September 28, 2024 are not necessarily indicative of the results of operations that may be expected for the fiscal year ending December 31, 2024 or other interim periods thereof.
Use of Estimates	Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience, known trends, and other market-specific relevant factors that it believes to be reasonable under the circumstances. Estimates are evaluated on an ongoing basis and revised as there are changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known.
Seasonality	Seasonality Although the Company generally has demand for its products throughout the fiscal year, its business is seasonal and weather is one of the principal external factors affecting the business. Historically, net sales and net income are highest (or net loss is lowest) during the second and third fiscal quarters, representing the peak months of swimming pool use, pool installation, and remodeling and repair activities. Severe weather may also affect net sales in all periods.
Significant Accounting Policies	Significant Accounting Policies Refer to the Annual Report for a discussion of the Company’s significant accounting policies, as updated below.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements The Company qualifies as “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 and has elected to “opt in” to the extended transition related to complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public and nonpublic companies, the Company will adopt the new or revised standard at the time nonpublic companies adopt the new or revised standard and will do so until such time that the Company either (i) irrevocably elects to “opt out” of such extended transition period or (ii) no longer qualifies as an emerging growth company. The Company may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which improves financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful analysis. For all entities, ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements, with early adoption permitted. The Company is currently evaluating ASU 2023-07 and its potential impact on the notes to the condensed consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), in an effort to enhance the transparency and decision usefulness of income tax disclosures. For all entities, ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The amendments should be applied prospectively with retrospective application permitted. Early adoption is also permitted. The Company is currently evaluating ASU 2023-09 and its potential impact on the notes to the condensed consolidated financial statements. In March 2024, the FASB issued ASU 2024-01, Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards (“ASU 2024-01”), which improves financial reporting by providing clarity on when an entity should apply the scope guidance in paragraph 718-10-15-3. ASU 2024-01 is effective for public business entities for fiscal years beginning after December 15, 2024. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2025. The amendments should be applied retrospectively to all prior periods presented in the financial statements, with early adoption permitted. The Company is currently evaluating ASU 2024-01 and its potential impact on the condensed consolidated financial statements.

Acquisitions - Financial Information (Details) - Coverstar Central, LLC - USD ($) $ in Thousands		2 Months Ended	9 Months Ended
	Aug. 02, 2024	Sep. 28, 2024	Sep. 28, 2024	Sep. 30, 2023
Business Acquisition, Pro Forma Information [Abstract]
Net sales		$ 4,122	$ 433,522	$ 492,201
Net income (loss)		$ (604)	$ 16,458	$ 4,050
Order backlog
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 420
Amortization Period	1 year
Dealer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 37,820
Amortization Period	13 years

Fair Value Measurements - Fair value of financial instruments (Details) - Level 2 - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 31, 2023
Prior Term Loan \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount	$ 282,753	$ 301,201
Prior Term Loan \| Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount	271,444	289,153
Interest rate swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of interest rate swap liability	$ 2,100	$ 1,200

- Definition

Fair value portion of debt instrument payable, including, but not limited to, notes payable and loans payable.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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-URI https://asc.fasb.org/1943274/2147482907/825-10-50-10

+ Details

Nature of the Business

9 Months Ended

Sep. 28, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of the Business

Notes to Condensed Consolidated Financial Statements

1. NATURE OF THE BUSINESS

Latham Group, Inc. (the “Company”) wholly owns Latham Pool Products, Inc. (“Latham Pool Products”), a designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand. Latham Pool Products offers a portfolio of in-ground swimming pools and related products, including pool liners and pool covers.

Stock Split, Initial Public Offering and Reorganization

On April 13, 2021, the Company’s certificate of incorporation was amended and restated. On April 13, 2021, the Company effected a 109,673,709 for-one stock split of its issued and outstanding shares of common stock. Accordingly, all share and per share data included in these condensed consolidated financial statements and notes thereto reflect the impact of the amended and restated certificate of incorporation and the stock split.

On April 27, 2021, the Company completed its initial public offering (the “IPO”), pursuant to which it issued and sold 23,000,000 shares of common stock, inclusive of 3,000,000 shares sold by the Company pursuant to the full exercise of the underwriters’ option to purchase additional shares. The aggregate net proceeds received by the Company from the IPO were $399.3 million, after deducting underwriting discounts and commissions and other offering costs.

Prior to the closing of the Company’s IPO, the Company’s parent entity, Latham Investment Holdings, L.P., merged with and into Latham Group, Inc.

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 28, 2024	Jun. 29, 2024	Mar. 30, 2024	Sep. 30, 2023	Jul. 01, 2023	Apr. 01, 2023	Sep. 28, 2024	Sep. 30, 2023	Dec. 31, 2023
Numerator:
Net income (loss)	$ 5,896	$ 13,279	$ (7,864)	$ 6,153	$ 5,715	$ (14,368)	$ 11,310	$ (2,500)
Weighted-average common shares outstanding
Basic	115,564,382			113,538,533			115,358,274	112,629,851
Diluted	118,445,235			114,656,761			117,130,609	112,629,851
Net loss per share attributable to common stockholders:
Basic	$ 0.05			$ 0.05			$ 0.10	$ (0.02)
Diluted	$ 0.05			$ 0.05			$ 0.10	$ (0.02)
Common stock issued and outstanding for accounting purposes	115,571,422						115,571,422		114,828,896
Restricted Stock Awards
Net loss per share attributable to common stockholders:
Potentially dilutive securities outstanding	0			64,329			14,295	909,375
Restricted Stock Units
Net loss per share attributable to common stockholders:
Potentially dilutive securities outstanding	6,693			57,885			29,700	220,255
Employee Stock Option
Net loss per share attributable to common stockholders:
Potentially dilutive securities outstanding	1,402,036			1,644,520			1,451,745	1,753,740
Stock appreciation rights
Net loss per share attributable to common stockholders:
Potentially dilutive securities outstanding	0			738,940			435,194	422,874
Performance stock units
Net loss per share attributable to common stockholders:
Potentially dilutive securities outstanding	0			0			27,708	0

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 28, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Stockholders' Equity

9 Months Ended

Sep. 28, 2024

Stockholders' Equity Note [Abstract]

Stockholders' Equity

12. STOCKHOLDERS’ EQUITY

Repurchase Program

On May 10, 2022, the Board of Directors of the Company approved a stock repurchase program (the “Repurchase Program”), which authorizes the Company to repurchase up to $100 million of the Company’s shares of common stock by May 2025. The Company may effect these repurchases in open market transactions, privately negotiated purchases, or other acquisitions. The Company is not obligated to repurchase any of its shares of its common stock under the Repurchase Program and the timing and amount of any repurchases will depend on market conditions, the Company’s stock price, alternative uses of capital, the terms of the Company’s debt instruments, and other factors.

As of September 28, 2024, $77.0 million remained available for share repurchases pursuant to the Repurchase Program. The Company did not repurchase any shares of its common stock during the fiscal quarter ended September 28, 2024. The Company accounts for the excess of the repurchase price over the par value of shares acquired as a reduction to additional paid-in capital.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Goodwill and Intangible Assets, Net (Tables)

9 Months Ended

Sep. 28, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible assets

Intangible assets, net as of September 28, 2024 consisted of the following (in thousands):


	September 28, 2024
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	148,100	$	159	$	34,533	$	113,726
Patented technology		16,126		2		9,906		6,222
Technology		13,000		—		2,456		10,544
Pool designs		13,628		79		3,675		10,032
Franchise relationships		1,187		—		1,187		—
Dealer relationships		235,176		1		74,742		160,435
Order backlog		2,020		—		1,670		350
Non-competition agreements		2,476		—		2,476		—
	$	431,713	$	241	$	130,645	$	301,309

Intangible assets, net as of December 31, 2023 consisted of the following (in thousands):


	December 31, 2023
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	148,100	$	72	$	29,583	$	118,589
Patented technology		16,126		1		8,713		7,414
Technology		13,000		—		1,806		11,194
Pool designs		13,628		35		2,973		10,690
Franchise relationships		1,187		—		1,187		—
Dealer relationships		197,376		—		62,470		134,906
Order backlog		1,600		—		1,600		—
Non-competition agreements		2,476		—		2,476		—
	$	393,493	$	108	$	110,808	$	282,793

Schedule of estimated amortization expense related to definite-lived intangible assets

The Company estimates that amortization expense related to definite-lived intangible assets will be as follows in each of the next five fiscal years and thereafter (in thousands):


	Estimated Future
	Amortization
Fiscal Year Ending	Expense
Remainder of fiscal year 2024	$	7,259
2025		28,704
2026		28,459
2027		28,459
2028		27,501
Thereafter		180,927
	$	301,309

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 5,896	$ 6,153	$ 11,310	$ (2,500)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	776	(2,007)	948	(2,480)
Total other comprehensive income (loss), net of tax	776	(2,007)	948	(2,480)
Comprehensive income (loss)	$ 6,672	$ 4,146	$ 12,258	$ (4,980)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Amount after tax, before reclassification adjustments of gain (loss) on foreign currency translation adjustments, foreign currency transactions designated and effective as economic hedges of a net investment in a foreign entity and intra-entity foreign currency transactions that are of a long-term-investment nature.

+ References + Details

Acquisitions

9 Months Ended

Sep. 28, 2024

Business Combinations [Abstract]

Acquisitions

3. ACQUISITIONS

Coverstar Central, LLC

On August 2, 2024 (the “Acquisition Date”), Latham Pool Products acquired Coverstar Central, LLC (“Coverstar Central”) for total consideration of $71.0 million (the “Coverstar Central Acquisition”). The total consideration included $66.1 million in cash (including an estimated net working capital adjustment of $0.8 million) and a non-cash settlement of preexisting obligations of $4.9 million. Preexisting relationships are effectively settled since such a relationship becomes intercompany upon the acquisition and is eliminated in post-combination financial statements. The cash consideration was funded with cash on hand. The Company incurred $0.9 million in transaction costs. The results of Coverstar Central’s operations have been included in the condensed consolidated financial statements since that date. Coverstar Central is an automatic safety cover dealer based in the United States. The acquisition allows for vertical integration of the Company’s automatic safety cover product category. Additionally, the acquisition provides the Company with an increase in dealer and franchise relationships.

The Company accounted for the Coverstar Central Acquisition using the acquisition method of accounting in accordance with FASB ASC 805, Business Combinations (“ASC 805”). This requires that the assets acquired and liabilities assumed be measured at fair value. Inventories were valued using the comparative sales method. Specific to intangible assets, backlog and customer relationships were valued using the multi-period excess earnings method. The Company recorded the assets acquired and liabilities assumed at their respective fair values as of the Acquisition Date. The fair value of assets acquired and liabilities assumed recorded in the condensed consolidated financial statements may be subject to adjustment pending completion of final evaluation. These fair value estimates will be reevaluated and adjusted, if needed, during the measurement period of up to one year from the Acquisition Date, and recorded as adjustments to goodwill.

The following summarizes the preliminary allocation for the Company’s acquisition of Coverstar Central as of September 28, 2024:


(in thousands)	August 2, 2024
Total consideration	$	71,035
Allocation:
Cash		2,084
Trade receivables		7,020
Inventories		4,293
Prepaid expenses and other current assets		53
Property and equipment		344
Intangible assets		38,220
Deferred tax assets		43
Total assets acquired, excluding goodwill		52,057
Accounts payable		131
Accrued expenses and other current liabilities		2,457
Total liabilities assumed		2,588
Total fair value of net assets acquired, excluding goodwill		49,469
Goodwill	$	21,566

The excess of the total consideration over the fair value of the identifiable assets acquired and the liabilities assumed in the acquisition was allocated to goodwill in the amount of $21.6 million. Goodwill resulting from the acquisition was attributable to vertical integration, the expanded market share and broader geographical footprint. The goodwill recognized is not deductible for tax purposes.

The Company allocated a portion of the total consideration to specific intangible asset categories as follows:


	Fair Value		Amortization
Definite-lived intangible assets:	(in thousands)		Period (in years)
Dealer relationships	$	37,820	13
Order backlog		420	1

The following are the incremental net sales and incremental net loss from Coverstar Central included in the Company’s results from the Acquisition Date through September 28, 2024:


(in thousands)	Amount
Net sales	$	4,122
Net loss	$	(604)

Pro Forma Financial Information (Unaudited)

The following pro forma financial information presents the statements of operations of the Company with Coverstar Central as if the acquisition occurred on January 1, 2023. The pro forma results do not include any anticipated synergies, cost savings or other expected benefits of the acquisition. The pro forma financial information is not necessarily indicative of what the financial results would have been had the acquisition been completed on January 1, 2023 and is not necessarily indicative of the Company’s future financial results.



	Three Fiscal Quarters Ended
	September 28,		September 30,
(in thousands)	2024		2023
Net sales	$	433,522	$	492,201
Net income	$	16,458	$	4,050

The pro forma financial information presented above reflects the effects as a result of the acquisition, including the amortization expense from acquired intangible assets, the additional cost of sales from acquired inventory, the elimination of intercompany transactions and the removal of certain costs (primarily payroll costs) that would not have occurred and any related tax effects. Transaction costs for Coverstar Central are reflected within pro forma net income for the three fiscal quarters ended September 30, 2023.

Net Sales

9 Months Ended

Sep. 28, 2024

Revenue from Contract with Customer [Abstract]

Net Sales

10. NET SALES

The following table sets forth the Company’s disaggregation of net sales by product line (in thousands):



	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
In-ground Swimming Pools	$	74,785	$	82,884	$	215,575	$	252,029
Covers		47,755		47,460		100,126		108,961
Liners		27,956		30,434		105,546		114,635
	$	150,496	$	160,778	$	421,247	$	475,625

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

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+ Details

Fair Value Measurements

9 Months Ended

Sep. 28, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value.

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.

Level 3 — Unobservable inputs that reflect the Company’s own assumptions incorporated into valuation techniques. These valuations require significant judgment.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When there is more than one input at different levels within the hierarchy, the fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Assessment of the significance of a particular input to the fair value measurement in its entirety requires substantial judgment and consideration of factors specific to the asset or liability. Level 3 inputs are inherently difficult to estimate. Changes to these inputs can have significant impact on fair value measurements. Assets and liabilities measured at fair value using Level 3 inputs are based on one or more of the following valuation techniques: market approach, income approach or cost approach. There were no transfers between fair value measurement levels during the three fiscal quarters ended September 28, 2024 or September 30, 2023.

Assets and liabilities measured at fair value on a nonrecurring basis

The Company’s non-financial assets such as goodwill, intangible assets, and property and equipment are measured at fair value upon acquisition and remeasured to fair value when an impairment charge is recognized. Such fair value measurements are based predominantly on Level 2 and Level 3 inputs.

Fair value of financial instruments

The Company considers the carrying amounts of cash, trade receivables, prepaid expenses and other current assets, accounts payable, and accrued expenses and other current liabilities to approximate fair value because of the short-term maturities of these instruments.

Term loan

The Company’s Term Loan (as defined below; see Note 7) is carried at amortized cost; however, the Company estimates the fair value of the Term Loan for disclosure purposes. The fair value of the Term Loan is determined using inputs based on observable market data of a non-public exchange, which are classified as Level 2 inputs. The following table sets forth the carrying amount and fair value of its Term Loan (in thousands):



	September 28, 2024				December 31, 2023
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Term Loan	$	282,753	$	271,444	$	301,201	$	289,153

Interest rate swap

The Company estimates the fair value of interest rate swaps (see Note 7) on a fiscal quarterly basis using Level 2 inputs, including the forward SOFR curve. The fair value is estimated by comparing (i) the present value of all future monthly fixed rate payments versus (ii) the variable payments based on the forward SOFR curve. As of September 28, 2024 and December 31, 2023, the fair value of the Company’s interest rate swap was a liability of $2.1 million and $1.2 million, respectively, which were recorded within other long-term liabilities on the condensed consolidated balance sheets.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details