Latham Group, Inc. current report, 16 January 2023

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Latham Group, Inc. Form 8-K Summary

Business context and reporting period

Latham Group, Inc. filed a Form 8-K dated January 19, 2023, reporting events beginning January 16, 2023. The filing concerns reaffirmation of fiscal 2022 guidance and a transition in the company’s chief financial officer position. The filing text does not provide the company’s business results or the numerical guidance ranges.

Financial metrics and liquidity

  • The filing does not provide revenue, profit, cash flow, margin, debt, liquidity, or balance-sheet figures.
  • The company stated that it reaffirmed its fiscal 2022 guidance, but the guidance amounts and assumptions are not included in the provided filing text.

Material changes versus the prior comparable period

  • Robert L. Masson II notified the company that he will resign as chief financial officer effective March 17, 2023, for family reasons.
  • Mr. Masson is expected to remain CFO through the effective date and did not report any disagreement regarding the company’s operations, policies, or practices.
  • Latham initiated an external search for a permanent CFO.
  • J. Mark Borseth was appointed Strategic Advisor effective February 13, 2023 and is expected to become Interim CFO following Mr. Masson’s departure.

Outlook, management commentary, risks, and unusual items

  • Fiscal 2022 guidance was reaffirmed; the filing text does not provide a clear numerical value or updated outlook details.
  • The CFO transition creates execution and reporting-continuity considerations while the company conducts its external search.
  • The company intends to enter into a new employment agreement with Mr. Borseth and stated that it will file an amendment to the Form 8-K within four business days after execution.
  • Mr. Borseth previously served as the company’s CFO from February 2020 through July 2022 and as Strategic Advisor from July 2022 through December 2022.
  • A prior retirement agreement with Mr. Borseth, dated June 12, 2022, was incorporated by reference. The filing does not state the full economic terms in the provided text.
  • The filing states that Mr. Borseth has no familial relationship with company directors or executive officers and no reportable related-party transaction under Item 404(a) of Regulation S-K.

Important facts for investors to verify

  1. Review Exhibit 99 for the specific fiscal 2022 guidance ranges, assumptions, and any financial commentary.
  2. Monitor the timing and terms of Mr. Borseth’s interim CFO appointment and subsequent employment agreement.
  3. Confirm the appointment of a permanent CFO and assess any transition-related effects on financial reporting or operations.
  4. Review the incorporated retirement agreement for compensation, severance, or other obligations.