These are tremendous accomplishments, and I'm extremely proud of the entire Hayward team. 2023 was characterized by a normalization of supply chains, channel inventory destocking and a return to established seasonal buying patterns. We are encouraged to enter 2024 with more normalized channel inventory positions as reported by our primary distribution partners in the U.S. The channel continuously recalibrates the level of inventory on hand to align with various inputs like near-term outlook for end demand and cost of capital, but the post-pandemic reset is largely behind us. We executed many important strategic initiatives throughout the year to strengthen our business and drive profitable growth. This included advancing our technology leadership position with innovative connected pool solutions leveraging our culture of continuous improvement and operational excellence and expanding commercial relationships across sales channels.

I will make additional comments on our strategic accomplishments in a moment. We enter 2024, expecting a return to sales and earnings growth on a full year basis. For the full year 2024, we expect net sales to increase approximately 2% to 7%. Now turning to Slide 5, highlighting the results of the fourth quarter and full year. I'm pleased to report solid execution and growth in the quarter. Net sales in the fourth quarter increased 8% year-over-year to $278 million, driven by positive volume and price. By segment, net sales in North America increased 10% with our largest market, the United States, increasing 12%. Europe and Rest of World declined 4% with Europe approximately flat. I'm encouraged by the sales trends in both the U.S. and Europe.

We're focused on driving growth in the commercial segment of the market and commercial pool sales increased double digits for the quarter and the year. As I mentioned, we achieved a record gross margin in the fourth quarter. Gross profit margins expanded 690 basis points year-over-year and 140 basis points sequentially to 49.2%. Adjusted EBITDA margin in the fourth quarter was 27.2%, and adjusted EPS was $0.20. For the full year 2023, net sales reduced 24% to $992 million, with adjusted EBITDA of $247 million, each consistent with our most recent guidance. We delivered strong profitability despite reduced sales volume, and I'm particularly pleased to see gross margin expansion of 270 basis points to 48.1%. Adjusted EBITDA margin for the full year was a healthy 24.9% and adjusted EPS was $0.56.

Turning now to Slide 6 for a business update. End demand for Hayward products was consistent with our expectations in the quarter, with the U.S. performing solidly, but the overall near-term demand environment remains uncertain. Non-discretionary aftermarket is resilient, but demand for discretionary new construction, upgrade and remodel has been impacted by current economic conditions and rising interest rates. Our channel partners have been rebalancing the level of inventory relative to the current economic outlook, normalized OEM lead times and higher cost of capital. while inventory levels have largely normalized at this point, the channel remains cautious and continuously recalibrates the level of inventory on hand to be appropriately positioned to support their customers.

Turning to price versus cost. We implemented annual price increases to maintain price/cost neutrality. The pool industry has been very disciplined on price historically, and we expect to realize net price increase of approximately 2% in 2024. We demonstrated our operational excellence capabilities again in 2023, contributing to strong gross margin expansion on reduced sales volumes. We also completed footprint consolidations during the year in both North America and Europe. As a reminder, we initiated a plan during the third quarter to consolidate facilities in Spain to get closer to key customers, better leverage a modern facility and support margins. We continue to prioritize working capital management and inventory reductions. Total inventory declined 24% in 2023, contributing to positive cash flow performance and 31% since the peak in 2022.

Finally, during the fourth quarter, John Collins was promoted to Chief Commercial Officer. John now leads sales, marketing, product management and customer service in North America and Global Industrial Flow Control. I'm confident in my senior leadership team and our ability to deliver on our commitments to shareholders. In addition, we continue to invest in technology leadership with the establishment of the business intelligence team in the fourth quarter, focused on progressively leveraging data analytics and scaling intelligent process capabilities. Turning now to Slide 7. I'd like to share some perspective on the year. As expected, we faced challenging economic conditions in 2023. I'm proud of the performance of the Hayward team as we accomplished many important strategic initiatives to strengthen our position as a premier company and attractive pool industry.

As a technology leader, one of our biggest differentiators is our ability to innovate, and I'll discuss some of our upcoming product introductions in a moment. We also demonstrated our long-standing commitment to operational excellence and continuous improvement. This included rightsizing our production levels and cost structure, further consolidating our agile and vertically-integrated manufacturing footprint and progressive investments in automation and other productivity initiatives. The individuals who build and service pools are the backbone of our industry. The voice of these customers is critical to the development of our product and commercial strategies. At Hayward, we believe in supporting our loyal dealers and investing to build strong partnerships with market-leading programs and events.

This includes our Totally Hayward loyalty program, customer rewards trips and partner summits to celebrate and reflect on our collective accomplishments and help dealers grow their business and thrive in the years ahead. Hayward is committed to delivering impressive operational and financial results in the most responsible way. And we continue to make great progress on our sustainability journey. During the year, Hayward received a regional top-rated award by MorningStar Sustainalytics and an MSCI upgrade to A rating. As just one example of our success, the Hayward team embraced the challenge and achieved meaningful reductions in water and energy consumption in our facilities in 2023. These achievements contributed to strong profitability and cash flow during the year, allowing us to reinvest in the business to provide superior products and services for our customers and value creation for our shareholders.

Turning to Slide 8. I'd like to highlight some key new product technologies being introduced in early 2024. First is the new microchannel temperature control unit for pools and spas. This is the first deployment of microchannel temperature exchange technology in the pool industry. This unit provides more efficient temperature transfer, reduced weight and improved corrosion resistance for coastal installations. Three models are available. Heat-only, heat/cool and cool-only. The ability to cool to 40 degrees is important for installations in hot and humid environments where pool water temperature can be uncomfortably high. This also opens a new market opportunity for chiller-only installations to satisfy the increasingly popular wellness trend of cold plunge pools.

Next is our new all-new OmniPro app designed for authorized trade professionals. This exciting evolution in our leading omni app enables these professionals to have remote access to all omni-connected homeowners they service. This new platform has two key benefits: real-time proactive monitoring of the operational pool; and remote expert configuration of equipment via the cloud. Importantly, the OmniPro app provides significant value to these professionals, giving them the opportunity to promote other sales and service initiatives through a direct connection to the homeowner, creating greater stickiness for Hayward. Finally, the ColorLogic 2.0 platform embodies the next generation of color LED lighting homeowners are increasingly requesting additional lights to be added to their pools, spas, order features and landscapes to create dramatic nighttime effects and attractive entertainment spaces.

ColorLogic 2.0 offers the flexibility designers want with directional optics to ensure full light saturation of the water and a quick disconnect plug for ease of maintenance. In our future earnings calls, I look forward to introducing even more great product technologies designed to delight homeowners as well as increase the competitive edge Hayward enjoys in the market. With that, I'd like to turn the call over to Eifion, who will discuss our financial results in more detail. Eifion?

Eifion Jones: Thank you, Kevin, and good morning. I'll start on Slide 9. All comparisons will be made on a year-over-year basis. As Kevin stated, we are pleased with our fourth quarter financial performance. Net sales increased in line with expectations for the quarter. We delivered outstanding gross margin expansion and generated better-than-expected free cash flow. Looking at the results in more detail. Net sales for the fourth quarter increased 8% to $278 million. This was consistent with our expectations and driven by a 6% increase in volume and a 2% positive net price realization. Gross profit in the fourth quarter was $137 million. Gross profit margin increased 690 basis points year-over-year and 140 basis points sequentially to a record 49.2%.

Adjusted EBITDA was $76 million in the fourth quarter, and adjusted EBITDA margin increased 660 basis points to 27.2%. Our effective tax rate was 20.6% in the fourth quarter compared to 30.2% in the prior year period. The change was primarily due to the timing of discrete items. Adjusted EPS in the quarter was $0.20. Turning now to Slide 10 for a review of our full year results. Net sales for fiscal year 2023 decreased 24% to $992 million. This was in line with our most recent guidance and primarily driven by a 28% reduction in volume, partially offset by a 3% positive price realization and a 1% contribution from acquisitions. Gross profit for the full year was $477 million. Gross profit margin increased 270 basis points to 48.1%, a very strong performance amid 28% lower volumes.

Strong margins enable us to reinvest in the business. In 2023, we increased research development and engineering investments by 10% to $25 million to support our commitment to growth and innovation. SG&A expenses for the full year declined 6% and to $234 million, driven by lower discretionary and volume-based expenses. We delivered a full year expected annualized savings of approximately $28 million under our enterprise cost reduction program. On a full year basis, SG&A as a percentage of net sales was 23.5%. Adjusted EBITDA was $247 million, with an adjusted EBITDA margin of 24.9%. Our effective tax rate was 20.2% in 2023 compared to 23.4% in 2022. Adjusted EPS was $0.56 for full year 2023. Now I'll discuss our reportable segment results in more detail.

Beginning on Slide 11, North America net sales for the fourth quarter increased 10% to $138 million, driven by 8% higher volumes and 2% favorable net price impact. Sales in the U.S. increased 12% in the quarter and Canada declined 11%. The Canadian market has been more significantly impacted by economic conditions and a sharp increase in financing costs. Gross profit margin increased 810 basis points to a robust 15.1%, and adjusted segment income margin was 31.7%. Turning to Europe and Rest of World. Net sales for the fourth quarter decreased 4% to $40 million. Net sales benefited from a 2% favorable net pricing and 2% from foreign currency translation, but were adversely impacted by a 9% decline in volumes. Net sales in Europe were approximately flat, with the Rest of the World, declining 7%.

Gross profit margin was 38.2%, and adjusted segment income was 20.2%. Turning to Slide 12 for a review of our reportable segment results for the full year. North America net sales declined 26% to $823 million, driven by 29% lower volumes, partially offset by a 2% favorable price impact and 1% contribution from acquisitions. Sales in the U.S. declined 23% and Canada reduced 48%. Gross profit margin was 49.9% and adjusted segment income margin was 28.9%. In Europe and Rest of the World, net sales for the full year declined 18% to $169 million, benefiting from a net pricing increase of approximately 4%, offset by 22% lower volumes. Sales in Europe declined 24% and Rest of World reduced 10%. Gross profit margin was 39.2%, and adjusted segment income margin was 20.4%.

Turning to Slide 13 for a review of our balance sheet and cash flow highlights. Net debt to adjusted EBITDA was 3.7x at the end of the year. We continue to prioritize deleveraging to our targeted range of two to 3x. Total liquidity at the end of the year was $460 million, including $203 million in cash and cash equivalents and short-term investments plus availability under our credit facilities of $256 million. We have no near-term maturities on our debt or interest rate swap agreements, term debt of $1.1 billion, matures in 2028 and the undrawn ABR matures in 2026. This attractive maturity schedule provides financial flexibility as we execute our strategic plans. Our borrowing rate continues to benefit from the $600 million of debt currently tied to fixed interest rate swap agreements maturing in 2025 through 2027, limiting our cash interest rate on the term facilities in 2023 to 6.5%.

Our average interest rate earned on global cash deposits for the quarter was 4.9%. Overall, we are pleased with the quality of our balance sheet. The business has strong free cash flow generation characteristics, driven by high-quality earnings, which support our growth investments. Cash flow from operations for the full year increased 59% to $185 million due to effective working capital management, primarily reduced inventory levels. Total inventories declined by $69 million or 24% in 2023, and declined nearly $100 million from the peak in the third quarter of 2022. Full year 2023 CapEx of $31 million was consistent with the prior year. Free cash flow increased 78% to $154 million in 2023. Turning now to capital allocation on Slide 14. As we've highlighted before, we maintain a disciplined financial policy and take a balanced approach, emphasizing strategic growth investments and shareholder returns, while maintaining prudent financial leverage.

In the near term, we are prioritizing CapEx, growth investments and reducing net leverage within our targeted range of two to 3x. We also continue to consider tuck-in acquisition opportunities to complement our product offering, geographic footprint and commercial relationships in addition to opportunistic share repurchases. Turning now to Slide 15 for our outlook. We're introducing 2024 guidance that reflects a return to sales and earnings growth, driven by solid execution across the organization, positive price realization and continued technology adoption. The guidance range also contemplates continued uncertainty around global macro conditions, consumer spending, coupled with our current expectations we've done in channel inventory levels.

For the full year fiscal 2024, Hayward expects net sales to increase approximately 2% to 7% or $1.01 billion to $1.06 billion. This outlook reflects continued resiliency in the North American non-discretionary aftermarket with the more discretionary elements of the market, new construction, remodel and upgrade impacted by the economic and interest rate environment, particularly in non-U.S. markets. We expect a positive net price contribution of approximately 2%. Our business is seasonal, and we expect normal seasonal strength in the second and fourth quarters with the first quarter representing the lowest sales quarter of the year. We anticipate full-year 2024 for adjusted EBITDA of $255 million to $275 million. We also expect solid cash flow generation again in 2024.

This should result in free cash flow conversion of greater than 100% of net income with free cash flow of approximately $160 million. We are confident in our ability to successfully execute in this dynamic environment and remain very positive about the long-term outlook for the pool industry, particularly the strength of the aftermarket. And with that, I'll now turn it back to Kevin.

Kevin Holleran: Thanks, Eifion. I'll pick back up on Slide 16. Before we close, let me reiterate the key takeaways from today's presentation. Consistent with our expectations, we closed out 2023 with a return to sales and earnings growth in the fourth quarter. We demonstrated strong execution throughout the year, delivering impressive gross margins and cash flow growth despite lower sales volumes, allowing us to fund our growth strategies. We're bringing innovative new solutions to the market, better supporting our customers and improving the pool ownership experience. With channel inventories largely normalized, we are well positioned for growth. I'm excited about the prospects for the pool industry and our performance. Momentum is building and Hayward is leading. I'm confident that we have the right strategy and talent in place to drive compelling financial results and shareholder value creation. With that, we're now ready to open the line for questions.

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