Sales Performance - For the three months ended September 27, 2024, net sales increased by $28.0 million, or 8.5%, to $359.1 million compared to $331.1 million for the same period in 2023[98]. - The increase in net sales was primarily due to $49.6 million in net sales from Marucci, acquired in November 2023, and a $27.9 million increase in bike sales[98]. - Specialty Sports Group net sales increased by $77.5 million, or 107.6%, primarily due to the inclusion of $49.6 million in net sales from Marucci, acquired in November 2023[113]. - Aftermarket Applications Group net sales decreased by $35.8 million, or 26.3%, due to lower upfitting sales and higher inventory levels at dealerships[112]. - Powered Vehicles Group net sales decreased by $60.3 million, or 14.9%, due to lower industry demand attributed to higher interest rates[128]. - Aftermarket Applications Group net sales decreased by $121.1 million, or 28.1%, driven by lower upfitting sales and higher inventory levels at dealerships[129]. - Specialty Sports Group net sales increased by $90.8 million, or 30.7%, primarily due to the inclusion of $150.8 million in net sales from Marucci[130]. - Consolidated net sales for the nine months ended September 27, 2024 were $1,041.1 million, a decrease of $90.6 million or 8.0% compared to $1,131.7 million for the same period in 2023[127]. Financial Performance - Cost of sales for the three months ended September 27, 2024, increased by $27.7 million, or 12.4%, to $251.6 million compared to $223.9 million for the same period in 2023[99]. - Gross margin decreased by 250 basis points to 29.9% for the three months ended September 27, 2024, compared to the same prior fiscal year period[99]. - Operating expenses for the three months ended September 27, 2024, totaled $65.9 million, compared to $65.0 million for the same period in 2023[96]. - Total operating expenses for the three months ended September 27, 2024 were $88.7 million, an increase of $22.8 million or 34.6% compared to $65.9 million for the three months ended September 29, 2023[100]. - Income from operations for the three months ended September 27, 2024, was $41.4 million, compared to $41.0 million for the same period in 2023[96]. - Income from operations decreased by $22.6 million, or 54.6%, to $18.8 million for the three months ended September 27, 2024, compared to $41.4 million for the same period in 2023[102]. - Net income for the three months ended September 27, 2024, was $35.3 million, compared to $35.0 million for the same period in 2023[96]. - Net income for the three months ended September 27, 2024 was $4.8 million, a decrease of $30.5 million or 86.4% from $35.3 million for the three months ended September 29, 2023[107]. - Total operating expenses for the nine months ended September 27, 2024 were $275.3 million, an increase of $51.6 million or 23.1% compared to $223.7 million for the nine months ended September 29, 2023[119]. - Net income for the nine months ended September 27, 2024 decreased by $110.1 million, or 94.3%, to $6.7 million from $116.8 million for the same period in 2023[125]. Research and Development - Research and development expenses increased to $8.9 million for the three months ended September 27, 2024, compared to $7.4 million for the same period in 2023[96]. - Research and development expenses for the three months ended September 27, 2024 increased by $7.2 million, or 80.9%, primarily due to personnel investments and a state research and development tax credit[100]. Debt and Interest - Interest expense increased by $10.7 million, or 305.7%, due to additional debt and higher interest rates for the three months ended September 27, 2024[103]. - Interest and other expense, net for the nine months ended September 27, 2024 increased by $29.8 million to $40.9 million, compared to $11.1 million for the same period in 2023, with interest expense rising by $30.0 million to $41.4 million due to additional debt and higher interest rates[122]. - As of September 27, 2024, the weighted-average interest rate on outstanding borrowing was 6.30%[140]. - The Company entered into a new credit agreement on April 5, 2022, providing for revolving loans and letters of credit up to $650.0 million[140]. - On November 14, 2023, the Company amended the 2022 Credit Facility, securing an Incremental Term A Loan of $400.0 million and a Delayed Draw Term Loan of $200.0 million[140]. - The Incremental Term Loans are subject to quarterly amortization payments of principal at a rate of 5.00% per annum[140]. - The Company paid $10.1 million in debt issuance costs related to the Incremental Term Loans[140]. - On July 31, 2024, the Company entered into the Third Amendment to the Credit Facility to improve its covenant profile for greater flexibility[141]. - The 2022 Credit Facility is secured by substantially all of the Company's assets and requires compliance with customary financial ratios[141]. - The Company was in compliance with the covenants as of September 27, 2024[141]. Economic Factors - The company continues to face headwinds from ongoing channel inventory recalibration and lower end consumer demand despite improved bike sales[98]. - Future growth may be impacted by macroeconomic factors, including inflation and interest rates, as well as supply chain dependencies[91]. - Significant increases in inflation could adversely impact the Company's business and financial condition[143]. - There have been no material changes to the Company's cash requirements or market risk disclosures since the last Annual Report[142][144]. Cash Flow - Net cash provided by operating activities for the nine months ended September 27, 2024 was $50.1 million, a decrease from $126.7 million for the same period in 2023[135]. - Net cash used in investing activities for the nine months ended September 27, 2024 was $42.5 million, significantly lower than $165.4 million for the same period in 2023[138]. - Net cash used in financing activities for the nine months ended September 27, 2024 was $1.7 million, compared to net cash provided of $16.2 million for the same period in 2023[139].

Financial Performance - Net sales for Q3 fiscal 2024 were $359.1 million, an 8.5% increase from $331.1 million in Q3 fiscal 2023[4] - Net income for Q3 fiscal 2024 was $4.8 million, a significant decline from $35.3 million in Q3 fiscal 2023, with diluted earnings per share dropping to $0.11 from $0.83[7] - Adjusted EBITDA for Q3 fiscal 2024 was $42.0 million, down from $63.7 million in Q3 fiscal 2023, with an adjusted EBITDA margin of 11.7%[7] - Net income for the three months ended September 27, 2024, was $4,780 million, down from $35,293 million in the same period last year, a decline of about 86.5%[27] - Adjusted net income for the nine months ended September 27, 2024, was $42,585,000, compared to $147,184,000 for the nine months ended September 29, 2023[31] - Adjusted EBITDA for the nine months ended September 27, 2024, was $126,577,000, down from $222,260,000 for the same period in 2023[36] - Adjusted earnings per share (EPS) for the nine months ended September 27, 2024, was $1.02, down from $3.46 for the same period in 2023[32] Revenue and Sales Growth - Bike revenues grew 21.9% sequentially and 38.7% year-over-year, contributing to a $77.5 million increase in Specialty Sports Group (SSG) sales[2] - AAG segment net sales decreased by 26.3% to $100.3 million due to lower upfitting sales and higher inventory levels[4] - Net sales for the three months ended September 27, 2024, were $359,121 million, an increase from $331,117 million for the same period in 2023, representing a growth of approximately 8.4%[27] Expenses and Margins - Gross margin decreased to 29.9%, down 250 basis points from 32.4% in Q3 fiscal 2023, primarily due to product mix shifts[5] - Total operating expenses increased to $88.7 million, or 24.7% of net sales, compared to $65.9 million, or 19.9% of net sales in the prior year[5] - Research and development expenses increased to $16,103 million for the three months ended September 27, 2024, compared to $8,904 million in the same period last year, reflecting a growth of approximately 80.5%[27] - Operating expenses for the three months ended September 27, 2024, increased to $88,677 from $65,862 in the prior year, leading to an operating expense as a percentage of net sales of 24.7% compared to 19.9%[42] Assets and Liabilities - Total current assets increased to $811,169 million as of September 27, 2024, compared to $768,055 million as of December 29, 2023, reflecting a growth of about 5.6%[25] - Total liabilities rose to $1,091,201 million as of September 27, 2024, from $1,020,537 million as of December 29, 2023, marking an increase of approximately 6.9%[25] - Total assets as of September 27, 2024, were $2,288,259 million, up from $2,242,298 million as of December 29, 2023, indicating an increase of about 2.0%[25] Strategic Actions and Future Outlook - The company executed $400 million in interest rate swap hedges to reduce interest expenses and enhance predictability[2] - The company initiated strategic actions in the AAG segment aimed at improving inventory position and expects over $25 million in annualized cost reductions[2] - The company anticipates future growth driven by the acquisition of Marucci and expects to improve operating efficiencies[45] - The company is focused on developing new and innovative products to expand into new categories and end-markets[45] Risks and Challenges - The company faces risks related to supply chain disruptions and the ability to maintain relationships with key suppliers and customers[45] - The company is committed to maintaining its premium brand image and high-performance products while navigating market uncertainties[45]

Financial Data and Key Metrics Changes - Total consolidated net sales for Q2 2024 were $348.5 million, a decrease of 13% compared to $400.7 million in Q2 2023 [28] - Adjusted net income was $15.9 million or $0.38 per diluted share, down from $51.4 million or $1.21 per diluted share in the same quarter last year [30] - Adjusted EBITDA was $44.1 million for Q2 2024, compared to $79.4 million in the same quarter last year, with an adjusted EBITDA margin of 12.7% [31] Business Line Data and Key Metrics Changes - In the Powered Vehicle Group (PVG), net sales were $118 million, down from $140 million in the prior year, primarily due to lower OEM demand [12] - In the Automotive sector, demand from major OEMs was mixed, with premium trucks remaining robust while broader OEM automotive space showed signs of excess inventory [13] - In the Aftermarket and Accessories Group (AAG), net sales were $107 million compared to $156 million in the prior year quarter, with growth in the component aftermarket portion [15] - In the Specialty Sports Group (SSG), net sales were $124 million, reflecting a $19 million increase driven by the inclusion of Marucci, despite a $23 million reduction in bike sales [17] Market Data and Key Metrics Changes - The bike segment saw a 52% sequential revenue increase, indicating stabilization as the channel destocking phase nears conclusion [9][17] - The European market continues to improve relative to the U.S. market, which remains in a state of transition towards stabilization [18] Company Strategy and Development Direction - Diversification across business segments, products, markets, and geographies is a key component of the company's long-term strategy to mitigate risk and enhance growth opportunities [8] - The company is focused on innovation and product development, particularly in the bike and aftermarket segments, to drive future growth [9][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic challenges but remains optimistic about sequential growth in the second half of the year, driven by new product launches and improving market conditions [24][36] - The company is adjusting its full-year guidance to reflect a more tempered sequential revenue lift in the second half, influenced by industry demand and quality challenges [23][34] Other Important Information - Leadership transitions were announced, with Dennis Schemm taking over as President of the AAG segment [10] - The company has secured an improved covenant profile on its capital structure to provide more flexibility amid uncertain macro conditions [33] Q&A Session Summary Question: Revised outlook and confidence in recovery - Management indicated that the revised outlook is primarily influenced by AAG and PVG, with SSG on track for the year [36] Question: Impact of quality issues and supply chain on automotive OEMs - Management clarified that demand is not the issue for premium products, but quality issues and supply chain challenges are significant factors [39] Question: Cost management initiatives - Management highlighted significant reductions in corporate operating expenses and actions taken to improve cost of goods sold [41] Question: Growth expectations for Marucci - Management expects strong double-digit growth for Marucci, projecting it to exceed $200 million for the year [49] Question: Future product launches and market conditions - Management confirmed that product launches are on track and that the company is optimistic about the trajectory of the bike segment [22][46]

For the quarter ended June 2024, Fox Factory Holding (FOXF) reported revenue of $348.49 million, down 13% over the same period last year. EPS came in at $0.38, compared to $1.21 in the year-ago quarter. The reported revenue represents a surprise of +0.55% over the Zacks Consensus Estimate of $346.58 million. With the consensus EPS estimate being $0.34, the EPS surprise was +11.76%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to de ...

Fox Factory Holding (FOXF) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $1.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 11.76%. A quarter ago, it was expected that this vehicle suspension maker would post earnings of $0.19 per share when it actually produced earnings of $0.29, delivering a surprise of 52.63%. Over the last four ...

Core Viewpoint - Hennessey Performance and Fox Factory have partnered to create a limited edition sport truck, the MAMMOTH 400, celebrating American independence with unique design elements and performance enhancements [1][8]. Company Overview - Hennessey Performance, based in Sealy, Texas, specializes in high-performance vehicle modifications and has re-engineered over 16,000 vehicles since its inception in 1991 [3][4]. - Fox Factory Holding Corp. is a global leader in premium product design and manufacturing for specialty sports and on- and off-road vehicles, known for its innovative shock and suspension systems [5]. Product Details - The MAMMOTH 400 will be limited to 250 units globally for 2024, featuring signature Hennessey badging and a serial-numbered engine plaque [2][8]. - Customers can choose from three color options: Viper Red, Viper White, and GTS Blue, each with heritage Viper Stripes [9][10]. - The truck is powered by a 5.7-liter HEMI V8 engine, delivering 420 horsepower, and features a FOX/Ridetech suspension system for improved handling [10]. Warranty and Availability - Each MAMMOTH 400 truck comes with a 3-year / 36,000-mile limited warranty and is available exclusively through authorized Chrysler, Dodge, Jeep, or RAM dealers [2][8].

Core Insights - Hennessey has partnered with FOX Factory to produce a limited edition of the 2024 RAM 1500 sport truck, named the MAMMOTH 400, with only 250 units available globally [3][5][9] - The MAMMOTH 400 features a 5.7-liter HEMI V8 engine, producing 420 horsepower, and is designed with a premium FOX and Ridetech suspension system for enhanced performance [4][9] - The truck is offered in three custom paint options: Viper Red, Viper White, and GTS Blue, each adorned with heritage Viper Stripes, reflecting Hennessey's historical ties to the Dodge SRT Viper community [9][10] Company Overview - Hennessey Performance, based in Sealy, Texas, has re-engineered over 16,000 vehicles for performance enthusiasts since its inception in 1991, focusing on high-performance upgrades across various vehicle types [6][12] - The company operates with a dedicated team of 100 members and has the capacity to work on approximately 50 vehicles simultaneously, making it a leading specialist in vehicle engineering [13] - Fox Factory Holding Corp. is recognized for its premium products that enhance performance for specialty sports and on- and off-road vehicles, with a diverse portfolio that includes brands like FOX and Method Race Wheels [13]

The Portnoy Law Firm is investigating potential claims against the board of directors of Fox Factory Holding Corp. ("Fox Factory" or the "Company") (NASDAQ: FOXF). Our investigation concerns whether the Company's board of directors breached its fiduciary duties to shareholders, and/or grossly mismanaged the company. Please visit our website to review more information and submit your transaction information. Fox Factory Holding Corp. designs, manufactures, and markets performance-defining products and system ...

This agreement with MLB exemplifies the leadership position of Marucci and Victus brands as the premier bat choices worldwide, as they are the top two most-used bats among MLB players and have long been part of the MLB landscape. Marucci expects to release more information later in the year through a joint announcement with MLB. About Marucci To learn more about Marucci, please visit www.maruccisports.com. Marucci is a registered trademark of Marucci Sports, LLC. Founded in 2012 and growing quickly to becom ...

Core Insights - Marucci Sports LLC has entered into a licensing agreement with Major League Baseball (MLB) to become the Official Bats of MLB for its Marucci and Victus brands, effective from January 1, 2025, to December 31, 2028 [1][16] - The agreement includes exclusive rights to use MLB trademarks in connection with Marucci's Smart Bat products, which feature an embedded Diamond Kinetics bat sensor [1] Company Overview - Marucci Sports, founded in 2004 by former professional baseball players, has evolved from handcrafting bats in a garage to becoming a premier brand in diamond sports [3] - Victus, established in 2012, has quickly gained recognition as an elite baseball brand, known for its design-driven craftsmanship and commitment to performance-based quality [4] - Fox Factory Holding Corp. is a global leader in designing and manufacturing premium products for specialty sports and vehicles, with a diverse portfolio that includes brands like FOX, Marucci, and Method Race Wheels [6][21] Brand Positioning - Marucci and Victus are recognized as the top two most-used bats among MLB players, solidifying their leadership position in the market [16] - Lizard Skins, another brand under Marucci Sports, is currently the Official Bat Grip of MLB, enhancing the overall brand strength in the baseball equipment sector [8]