Core Viewpoint - Natural Gas Services Group, Inc. has appointed Jean Holley as a new Director, expanding its Board from six to seven members, which is expected to enhance the company's growth strategy and operational efficiency [1][2][3]. Company Overview - Natural Gas Services Group, Inc. is a leading provider of natural gas compression equipment, technology, and services to the energy industry, involved in manufacturing, renting, selling, and maintaining natural gas compressors [3]. Board Appointment Details - Jean Holley brings extensive experience in digital transformations, operational efficiency, M&A, and cybersecurity, which will be valuable as the company focuses on expanding its large horsepower rental fleet and optimizing operations [2][3]. - The addition of Holley is seen as a strategic move to support the company's long-term growth and success, particularly in the large horsepower and infrastructure segments of the industry [2][3]. Executive Insights - CEO Justin Jacobs expressed confidence in Holley's ability to contribute to the company's growth and operational strategies, emphasizing her background in technology and data analytics [2]. - Chairman Stephen Taylor highlighted that Holley's expertise will complement the existing board members and support the company's vision and strategy [2].

Financial Performance - Net sales for the 13-week period ended June 30, 2024 decreased by $5.8 million, or 3.3%, to $169.5 million compared to $175.3 million for the same period in 2023[101] - Net sales for the 26-week period ended June 30, 2024 decreased by $19.3 million, or 5.6%, to $328.1 million compared to $347.4 million for the same period in 2023[117] - Gross profit increased by $0.6 million, or 0.8%, to $70.3 million, with a gross margin of 41.5%, up from 39.8% in the prior year[104] - Gross profit for the 26-week period ended June 30, 2024 decreased by $15.1 million, or 11.0%, to $122.4 million, with a gross margin of 37.3% compared to 39.6% in the prior year[121] - Operating income for the period decreased by $2.1 million, or 6.9%, to $27.9 million compared to $30.0 million in the prior year[109] - Operating income for the 26-week period ended June 30, 2024 decreased by $17.8 million, or 31.9%, to $38.1 million compared to $55.9 million for the same period in 2023[126] - Net income for the period was $17.1 million, compared to $13.0 million for the same period in 2023, marking a 31.8% increase[116] - Net income for the 26-week period ended June 30, 2024 increased by $3.6 million, or 21.0%, to $20.8 million compared to $17.2 million for the same period in 2023[132] Costs and Expenses - Cost of goods sold for the same period decreased by $6.3 million, or 6.0%, to $99.2 million, influenced by lower freight costs and product mix[103] - Selling, general, and administrative costs rose by $5.5 million, or 18.8%, to $34.6 million, representing 20.4% of sales compared to 16.6% in the previous year[105] - Research and development costs decreased to $4.3 million, down from $6.2 million, primarily due to headcount reductions[106] - Research and development costs for the 26-week period ended June 30, 2024 decreased to $9.1 million from $12.8 million in the prior year, primarily due to headcount reductions[123] - Selling, general, and administrative costs increased by $8.4 million, or 14.3%, to $67.6 million, with costs as a percentage of sales rising to 20.6% from 17.0%[122] Interest and Debt - Interest expense increased by $3.3 million, or 33.1%, to $13.2 million, reflecting a higher effective interest rate on outstanding debt[113] - Interest expense for the 26-week period ended June 30, 2024 decreased by $4.0 million, or 14.2%, to $24.2 million compared to $28.2 million in the prior year[129] - As of June 30, 2024, the company had $564.2 million in term loan and revolver borrowings subject to variable interest rates, with a weighted average borrowing rate of 9.2%[152] - A hypothetical 100 basis point increase in interest rates would result in an approximately $0.7 million increase in annual interest expense, while a decrease would lead to a $3.9 million reduction in annual interest expense[152] Cash Flow and Liquidity - Free Cash Flow for the 13-week period ended June 30, 2024, was $24,353, down from $29,045 in the same period of 2023, a decrease of 16.5%[141] - Net cash provided by operating activities for the 26-week period ended June 30, 2024, was $44.5 million, an increase of 29.3% compared to $34.4 million for the same period in 2023[147] - Cash used in investing activities remained stable at $2.4 million for both the 26-week periods ended June 30, 2024, and July 2, 2023, primarily due to capital expenditures[148] - Cash used in financing activities increased to $30.0 million for the 26-week period ended June 30, 2024, compared to $15.6 million for the same period in 2023, mainly due to $28.6 million in principal payments on long-term debt[148] - As of June 30, 2024, the company had cash of $53.1 million and availability of $122.9 million under its revolving credit facility[143] - The company had $2.2 million in letters of credit outstanding under its revolving credit facility as of June 30, 2024[143] Strategic Outlook - The company plans to continue evaluating opportunities for strategic acquisitions to complement its current business and expand its addressable market[93] - The company expects capital expenditures in the range of $6 million to $8 million for fiscal year 2024[144] Comprehensive Income - Total comprehensive income for the period was $17.2 million, up from $13.3 million in the prior year, including foreign currency translation adjustments[116] - Total comprehensive income for the 26-week period ended June 30, 2024 was $20.7 million, an increase of $3.4 million, or 19.6%, from $17.3 million in the prior year[132] Adjusted Metrics - Adjusted Gross Margin for the 26-week period ended June 30, 2024 was 40.0%, up from 39.3% in the prior year after adjusting for product rationalization initiatives[121] - Adjusted Gross Profit for the 13-week period ended June 30, 2024, was $69,415, compared to $68,948 in the same period of 2023, reflecting a 0.7% increase[138] - Adjusted EBITDA for the 13-week period ended June 30, 2024, was $37,418, slightly down from $37,923 in the same period of 2023, indicating a decrease of 1.3%[137] Risk Factors - The company is exposed to credit risk associated with cash and cash equivalents and trade receivables, with significant customers increasing potential credit risk during economic downturns[153] - The company is exposed to foreign currency exchange rate fluctuations, primarily related to transactions in Euros and Canadian dollars, although most sales and expenses are in U.S. Dollars[154] - The company does not currently hedge foreign currency exposure but may consider strategies to mitigate this risk in the future if necessary[154] Other Financial Metrics - The company’s net income margin for the 13-week period ended June 30, 2024, was 10.1%, up from 7.4% in the same period of 2023[137] - The company successfully exited the Covenant Relief Period after June 30, 2024, following an amendment to its Credit Agreement[143] - The company recognized a gain of $6.5 million from the change in fair value of the warrant liability for the 26-week period ended June 30, 2024, compared to a loss of $3.5 million in the prior year[127]

Financial Data and Key Metrics Changes - Net sales decreased by 3.3% in Q2 2024, an improvement from nearly 8% decline in Q1 2024 [9] - Adjusted gross margins increased by 170 basis points year-over-year to 41% [9] - Adjusted EBITDA margins rose by 50 basis points to 22.1% [9] - Free cash flow for the quarter was robust at $24.4 million, with year-to-date free cash flow improving by $10 million compared to the previous year [9][33] - Inventory levels were reduced by $44 million year-over-year, improving inventory turns from 1.9x to 2.2x [8][28] Business Line Data and Key Metrics Changes - The performance aftermarket remains soft due to reduced consumer spending, but the company is confident in gaining market share through strategic initiatives [6][7] - Direct-to-consumer sales have shown significant growth year-over-year, driven by improved promotional strategies and product launches [7][11] - New product revenue increased by over 25% compared to 2023, reflecting successful product management and innovation processes [19] Market Data and Key Metrics Changes - The overall market for performance aftermarket is estimated to have declined by 5% year-to-date, while the company's direct-to-consumer and B2B sales figures showed a smaller decline of 2.8% [30] - Economic factors such as high inflation, slow wage growth, and increased debt are impacting consumer spending [29] Company Strategy and Development Direction - The company aims to enhance its organizational capabilities by recruiting top-tier talent and streamlining operations to strengthen cash flow [5][4] - Strategic initiatives include improving digital capabilities, refining promotional strategies, and launching innovative products [7][8] - The company is focused on optimizing its acquisitions and enhancing customer experience across all channels [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by the current economic environment but remains optimistic about the company's ability to gain market share [6][29] - The company has adjusted its full-year guidance for net sales to a range of $605 million to $645 million, reflecting cautious optimism amid market conditions [35] - Management emphasizes the importance of maintaining strong free cash flow and reducing debt while navigating the current consumer landscape [28][34] Other Important Information - The company ended the quarter with over $53 million in cash after paying down an additional $10 million in debt [8] - S&P upgraded the company's credit rating in June, indicating improved financial stability [9] Q&A Session Summary Question: What was the price realization in Q2 and expectations for the year? - Price realization in Q2 was about 3%, consistent with Q1, with ongoing strategic price increases planned for the back half of the year [38] Question: What were the drivers of gross margin expansion in Q2? - Gross margin expansion was driven by pricing, cost to serve initiatives, and some fixed cost leverage despite lower sales [39] Question: Are there signs of worsening trends in July and August? - Both consumer demand and distributor inventory management are contributing to a cautious outlook, with observed slowdowns in sales [41] Question: Will R&D spending increase in the second half? - R&D spending is expected to remain efficient, with no significant increase anticipated, as new product revenue is up 25% year-over-year [42] Question: What factors are influencing the wide range in guidance? - The guidance range reflects macroeconomic impacts and consumer health, with the bottom and top ends depending on industry trends and distributor responses [43] Question: How is the health of distribution partners? - Overall, distribution partners remain strong, but there is some softness in certain areas, with a focus on monitoring receivables [46] Question: Are there outperforming sectors within the verticals? - The safety and racing vertical is showing strength, driven by lifestyle engagement and product innovations [47] Question: How might interest rates impact the business? - A 100 basis point decline in interest rates could benefit free cash flow by $5 million to $6 million, but consumer sensitivity remains a concern [49][51] Question: What is the current state of distribution partner inventory? - Distribution partner inventory levels are elevated, with destocking expected as they prepare for consumer behavior changes [64]

Company Performance - Holley Inc. reported quarterly earnings of $0.10 per share, matching the Zacks Consensus Estimate, but down from $0.14 per share a year ago [1] - The company posted revenues of $169.5 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.49% and down from $175.26 million year-over-year [2] - Holley has not surpassed consensus EPS estimates in the last four quarters and has experienced a 29.8% decline in share price since the beginning of the year [3][6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $161.34 million, and for the current fiscal year, it is $0.25 on revenues of $654.7 million [7] - The trend for earnings estimate revisions for Holley is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - Holley operates within the Automotive - Original Equipment industry, which is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting a challenging environment [8] - The performance of Holley’s stock may be influenced by the overall outlook for the industry, as top-ranked industries tend to outperform lower-ranked ones significantly [8]

Exhibit 99.1 PRESS RELEASE 1801 Russellville Road Bowling Green, Kentucky 42101 Holley.com HOLLEY REPORTS SECOND QUARTER 2024 RESULTS; NET INCOME UP 31% YEAR OVER YEAR ADJUSTED EBITDA MARGIN UP 50BPS YEAR OVER YEAR PROGRESS ACROSS ALL KEY GROWTH ELEMENTS OF THE TRANSFORMATION Delivered second quarter net sales of $169.5 million Debt and Credit Ratings upgraded by S&P Global Ratings Exited Covenant Relief Period and continues progress on deleverage with $10MM prepayment BOWLING GREEN, Ky. – August 7, 2024 – ...

Certain statements in this presentation may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Holley's future financial or operating performance. For example, projections of future revenue and adjusted EBITDA and other metrics, along with statements regarding the impact of organizational changes, are forward-looking statements. In ...

Start Time: 08:30 January 1, 0000 9:12 AM ET Holley Inc. (NYSE:HLLY) Q1 2024 Earnings Conference Call May 08, 2024, 08:30 AM ET Company Participants Matt Stevenson - President and CEO Jesse Weaver - CFO Anthony Rozmus - IR Conference Call Participants Christian Carlino - JPMorgan Brian McNamara - Canaccord Genuity John Lawrence - The Benchmark Company Martin Mitela - Raymond James Joe Feldman - Telsey Advisory Group Sabrina Baxamusa - William Blair Operator Good morning, ladies and gentlemen, and welcome to ...

Holley Inc. (HLLY) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.05. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -100%. A quarter ago, it was expected that this company would post earnings of $0.01 per share when it actually produced break-even earnings, delivering a surprise of -100%.Over the last four quarters, the company has surpassed conse ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________ Commission file number: 001-39599 HOLLEY INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction ...

PRESS RELEASE Exhibit 99.1 1801 Russellville Road Bowling Green, Kentucky 42101 Holley.com Paid down $15 million of debt and improved free cash flow generation by $15m, year-over year Reiterates full year 2024 outlook and provides Q2 outlook BOWLING GREEN, Ky. – May 8, 2024 – Holley Performance Brands (NYSE: HLLY), a leader in automotive aftermarket performance solutions, today announced financial results for its first quarter ended March 31, 2024. First Quarter Highlights vs. Prior Year Period 1See "Use an ...