[First Quarter Highlights](index=1&type=section&id=First%20Quarter%20Highlights) Holley's Q1 2025 net sales decreased **3.5%** to **$153.0 million**, but core sales grew **3.3%**, with Adjusted EBITDA up **30.0%** to **$27.3 million** Q1 2025 Financial Highlights vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $153.0 million | $158.6 million | -3.5% | | Core Business Net Sales¹ | N/A | N/A | +3.3% | | Net Income | $2.8 million | $3.7 million | -24.3% | | Diluted EPS | $0.02 | $0.03 | -33.3% | | Adjusted Net Income² | $2.6 million | $0.1 million | +2500% | | Adjusted EBITDA² | $27.3 million | $21.0 million | +30.0% | | Net Cash Used in Operating Activities | ($7.8) million | $18.8 million | -141.4% | | Free Cash Flow² | ($10.8) million | $17.8 million | -160.8% | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes strong Q1 to DTC/B2B growth, **$8 million** from innovation, and **$3.0 million** cost savings, maintaining 2025 guidance - The company achieved significant growth in both its direct-to-consumer (DTC) and business-to-business (B2B) channels. DTC orders grew over **10%**, driven by a third-party marketplace strategy, while the B2B channel saw growth in its Top 50 accounts[4](index=4&type=chunk) - Product innovation generated approximately **$4 million** in new revenue, and portfolio management initiatives focused on product elasticity added another **$4 million**[5](index=5&type=chunk) - The company reduced non-value-added costs by **$3.0 million** through purchasing savings and operational improvements[6](index=6&type=chunk) - Full-year 2025 guidance is maintained due to strong Q1 core sales growth, but it does not account for potential tariff impacts, which the company is working to mitigate through strategic sourcing and pricing actions[6](index=6&type=chunk) [Strategic Business Highlights](index=2&type=section&id=Strategic%20Business%20Highlights) Holley achieved **3.3%** core sales growth, expanded DTC and B2B channels, with **10%** DTC order growth, while managing interest rate and tariff risks - Achieved core business net sales growth of **3.3%** year-over-year, excluding divestitures and product rationalization[14](index=14&type=chunk) - DTC orders grew over **10%**, with sales on third-party platforms like Amazon and eBay increasing by more than **50%**[14](index=14&type=chunk) - Product innovation and strategic pricing initiatives contributed a combined **$8 million** in revenue for the quarter[14](index=14&type=chunk) - The company entered into a cash-less collar to reduce interest rate exposure on its Term Loan through its maturity in November 2028[14](index=14&type=chunk) [2025 Outlook](index=2&type=section&id=2025%20Outlook) Holley reaffirms 2025 guidance: net sales **$580-600 million** and Adjusted EBITDA **$113-130 million**, excluding tariff impacts Full Year 2025 Outlook | Metric | Full Year 2025 Outlook | | :--- | :--- | | Net Sales | $580 - $600 million | | %YOY* vs. Core Business | 0.8% to 4.3% | | Adjusted EBITDA | $113 - $130 million | | Capital Expenditures | $12 - $16 million | | Depreciation and Amortization Expense | $22 - $24 million | | Interest Expense (excl. collar revaluation) | $47 - $52 million | - The guidance and year-over-year comparison exclude **$12.8 million** from divested non-core businesses and **$14.0 million** in clearance sales from strategic product rationalization in the prior year[9](index=9&type=chunk) - The company is not providing reconciliations for its forward-looking Adjusted EBITDA outlook due to the uncertainty and difficulty of predicting certain items needed for the comparable GAAP measure[9](index=9&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, covering Income, Balance Sheet, and Cash Flows [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Q1 2025 Income Statement (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $153,044 | $158,636 | | Gross Profit | $64,088 | $52,059 | | Operating Income | $19,343 | $10,208 | | Income Before Income Taxes | $3,893 | $2,839 | | Net Income (Loss) | $2,817 | $3,730 | | Diluted Net Income (Loss) per Share | $0.02 | $0.03 | [Condensed Consolidated Balance Sheet](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET) Balance Sheet Highlights (in thousands) | Metric | March 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $39,068 | $56,087 | | Inventory | $189,143 | $192,523 | | Total Assets | $1,144,161 | $1,133,320 | | Long-Term Debt, Net | $544,194 | $545,385 | | Total Liabilities | $719,576 | $712,168 | | Total Stockholders' Equity | $424,585 | $421,152 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Q1 Cash Flow Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | $(7,850) | $18,843 | | Net Cash Provided by (Used in) Investing Activities | $(7,740) | $(1,091) | | Net Cash Used in Financing Activities | $(2,370) | $(17,669) | | Net Change in Cash and Cash Equivalents | $(17,019) | $46 | | Cash and Cash Equivalents, End of Period | $39,068 | $41,127 | [Use and Reconciliation of Non-GAAP Financial Measures](index=7&type=section&id=Use%20and%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section explains Holley's non-GAAP measures (Adjusted EBITDA, Free Cash Flow) and their GAAP reconciliations for performance evaluation - The company uses non-GAAP measures like Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow to evaluate financial performance, establish internal budgets, and manage the business, as they are believed to better represent underlying performance[24](index=24&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $2,817 | $3,730 | | Interest Expense, Net | $15,708 | $11,004 | | Income Tax Expense (Benefit) | $1,076 | $(891) | | Depreciation & Amortization | $5,831 | $5,900 | | EBITDA | $25,432 | $19,743 | | Other Adjustments | $1,858 | $1,213 | | **Adjusted EBITDA** | **$27,290** | **$20,956** | | Adjusted EBITDA Margin | 17.8% | 13.2% | [Reconciliation for Bank-adjusted EBITDA Leverage Ratio](index=8&type=section&id=Reconciliation%20for%20Bank-adjusted%20EBITDA%20Leverage%20Ratio) Bank-adjusted EBITDA Leverage Ratio Calculation | Metric | March 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Adjusted EBITDA (TTM) | $116,827 | $110,493 | | Adjusted EBITDA per Credit Agreement (TTM) | $120,420 | $122,754 | | Net Indebtedness per Credit Agreement | $520,719 | $511,840 | | **Bank-adjusted EBITDA Leverage Ratio** | **4.32x** | **4.17x** | [Reconciliation of Net Income to Adjusted Net Income and EPS](index=9&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income%20and%20EPS) Reconciliation to Adjusted Net Income & EPS (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $2,817 | $3,730 | | Adjustments (Fair Value Changes, etc.) | $(258) | $(3,665) | | **Adjusted Net Income (Loss)** | **$2,559** | **$65** | | Diluted Net Income (Loss) per Share | $0.02 | $0.03 | | **Adjusted Diluted EPS** | **$0.02** | **$0.00** | [Reconciliation for Free Cash Flow](index=10&type=section&id=Reconciliation%20for%20Free%20Cash%20Flow) Free Cash Flow Calculation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $(7,850) | $18,843 | | Capital Expenditures, Net of Dispositions | $(2,980) | $(1,091) | | **Free Cash Flow** | **$(10,830)** | **$17,752** |

Core Viewpoint - Holley Inc. (HLLY) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - The upgrade in Holley's rating reflects an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [4][9]. - Holley is projected to earn $0.26 per share for the fiscal year ending December 2025, representing a year-over-year increase of 30% [7]. Analyst Sentiment and Consensus - Over the past three months, the Zacks Consensus Estimate for Holley has increased by 7.7%, indicating a positive trend in analyst sentiment [7]. - The Zacks Rank system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, positioning Holley favorably for potential market-beating returns [8][9].

Core Viewpoint - Kaskela Law LLC is investigating Holley Inc. for potential securities fraud on behalf of long-term shareholders, following a complaint that alleges misleading statements made by the company during a specified class period [1][2]. Summary by Sections Investigation Details - A securities fraud complaint was filed against Holley for misleading investors about its business and growth prospects between July 21, 2021, and February 6, 2023 [2]. - The complaint highlights that Holley excluded resellers from promotions, leading them to promote competitors' products, and failed to enforce minimum advertised pricing on most products [3]. Financial Impact - Following disclosures of the alleged misconduct, Holley's stock price fell from over $12.50 per share in July 2022 to below $3.00 per share by February 2023 [3]. Legal Rights and Options - Holley shareholders who acquired shares before May 12, 2022, are encouraged to contact Kaskela Law LLC for information regarding their legal rights and options [4].

Core Viewpoint - J.P. Morgan analyst Christian Carlino maintains a Neutral rating on Holley Inc. due to concerns over growth catalysts and macroeconomic challenges impacting the company [1] Group 1: Financial Performance and Projections - Holley's 2025 guidance indicates a potential achievement of a 20% EBITDA margin, but overall sentiment may be affected by a "softer" top-line outlook [1] - The analyst forecasts first-quarter sales of $144 million, reflecting a 2% organic decline, and total sales for the year at $590 million, down 2% year-over-year, with organic growth projected at 2.5% [4] - Direct-to-consumer sales increased by 8% in the fourth quarter, supported by improved marketing efforts, while sales through national retailers rose by 12% due to expanded SKU offerings [3] Group 2: Market Dynamics and Challenges - Softer revenue projections are likely to influence market sentiment, particularly in the current consumer environment [2] - Holley's market share performance in the fourth quarter was affected by distribution partners reducing safety stock, attributed to the company's enhanced supply chain capabilities [2] - Sales guidance for the year is skewed towards the second half, with initial pressures from consumer confidence and weather conditions impacting the first quarter [4] Group 3: Stock Performance - HLLY shares are currently trading higher by 0.61% at $2.485 [4]

Financial Performance - Net sales for the year ended December 31, 2024, decreased by $57.5 million, or 8.7%, to $602.2 million compared to $659.7 million in 2023[216]. - Cost of goods sold for the year ended December 31, 2024, decreased by $39.9 million, or 9.9%, to $363.7 million compared to $403.6 million in 2023[220]. - Gross profit for the year ended December 31, 2024, decreased by $17.5 million, or 6.9%, to $238.5 million compared to $256.1 million in 2023[216]. - Selling, general, and administrative expenses increased by $11.9 million, or 9.9%, to $132.1 million in 2024 compared to $120.2 million in 2023[216]. - Research and development costs decreased by $5.1 million, or 21.5%, to $18.7 million in 2024 compared to $23.8 million in 2023[216]. - Impairment of goodwill amounted to $40.9 million in 2024, representing a 100% increase from zero in 2023[216]. - Net income for the year ended December 31, 2024, was a loss of $23.2 million compared to a net income of $19.2 million in 2023, reflecting a decrease of $42.4 million or 221.1%[216]. - Total comprehensive loss for the year ended December 31, 2024, was $23.7 million compared to a comprehensive income of $19.4 million in 2023, a change of $43.1 million or 222.0%[216]. - The company incurred a loss on the sale of assets amounting to $9.2 million in 2024, which was not present in 2023[216]. - Interest expense decreased by $10.1 million, or 16.6%, to $50.7 million in 2024 compared to $60.7 million in 2023[216]. Market Position and Strategy - The top five brands of Holley accounted for 55% of total sales in 2024, with Holley EFI representing 14%, Holley 15%, MSD 10%, Simpson 10%, and Flowmaster 6%[34][40]. - Holley plans to expand its market share by entering new product categories and implementing sales and marketing strategies aimed at revenue growth[30]. - The company operates in a highly fragmented performance automotive aftermarket industry, which has seen consistent growth over the last two decades[32]. - Holley has identified opportunities for growth in adjacent markets such as Performance Suspension, Braking, and Powertrain Conversion Systems[37]. - E-tailers and warehouse distributors accounted for 55% of Holley's sales in 2024, with the top ten distribution partners contributing 42% of total sales[46]. - The DTC channel allows Holley to directly interact with customers, enhancing brand engagement and generating attractive margins[45]. - Holley has established long-term relationships with distribution partners, allowing for pricing discipline that supports profit margins[47]. - The company relies on brand reputation and quality to attract and retain customers, which is critical for ongoing demand[84]. - Holley reported a commitment to innovation, focusing on developing new products and expanding product lines to adapt to evolving consumer needs[200]. - The company has pursued a growth strategy through both organic growth and acquisitions, targeting market leaders to enhance profitability and stockholder value[204]. Operational Challenges - The company is exposed to risks related to labor shortages, supply chain disruptions, and the need to adopt new technologies like artificial intelligence[22]. - Significant reductions or fluctuations in demand for products could adversely impact sales and financial condition[72]. - Inflation has led to increased costs of raw materials, including steel, aluminum, and precious metals, which may not be fully passed on to customers[74]. - Disruptions in supply chains and shortages of raw materials have resulted in higher manufacturing costs and could harm profitability[76]. - Labor shortages and increased labor costs could materially affect the company's operations and financial results, necessitating effective management of workforce dynamics[102]. - The company faces significant pricing pressure due to unfavorable economic conditions, intense competition, and changes in consumer demand, which could adversely impact margins and profitability[94]. - Competition from larger companies and original equipment manufacturers may pressure pricing and market share[80]. - The company must continue to innovate and develop new products to meet changing consumer preferences and maintain sales growth[82]. - Expansion into international markets presents challenges, including competition and consumer acceptance of premium products[90]. - The company is exposed to political and country risks due to its operations in various countries, including China, which may disrupt markets and supply chains[143]. Human Resources and Workplace Culture - Holley employed 1,467 full-time employees and 53 temporary employees as of December 31, 2024, with 46% based in Bowling Green, KY[54]. - Approximately 39% of Holley's workforce were women in 2024, reflecting the company's commitment to closing the gender gap[61]. - Holley aims to create a premier workplace to attract and retain skilled personnel, which is critical for its innovation and growth strategy[29]. - The company suspended its 401(k) match effective July 2024, but continues to offer competitive benefits including an HSA-eligible health plan introduced in 2024[56][57]. - The company’s future success depends on the ability to attract and retain skilled personnel, with competition for talent being intense[101]. Financial Obligations and Risks - As of December 31, 2024, the company had $560.9 million in principal outstanding under its credit facility, requiring quarterly payments of principal plus accrued interest[115]. - The Credit Agreement imposes various restrictions, including limitations on dividends, additional indebtedness, and acquisitions, which may hinder the company's ability to invest in business needs[117]. - The company may need to raise additional capital to support growth initiatives, which could lead to dilution of existing stockholders' ownership if financing is not available on satisfactory terms[110]. - The company’s ability to obtain additional financing may be restricted due to its current indebtedness and the conditions of the Credit Agreement[120]. - The company faces increasing scrutiny regarding its environmental, social, and governance (ESG) practices, which may impose additional costs and risks[140]. - The company is subject to various legal and regulatory compliance risks, which could lead to lawsuits, fines, and penalties that may harm its financial condition[148]. - Intellectual property claims could result in significant costs or prohibit the company from selling its products, impacting its operations[149]. - The company is subject to environmental regulations that could increase costs or restrict operations, with potential liabilities for environmental cleanups[152]. - Changes in tax laws and regulations could adversely affect the company's effective income tax rate and profitability[158]. - The concentration of stock ownership by certain stakeholders may limit other stockholders' influence and could affect the company's ability to pursue mergers or acquisitions[160]. Technology and Innovation - The company must effectively adopt new technologies like artificial intelligence and machine learning to remain competitive, as failure to do so could adversely affect its market position[144]. - Significant investments are required for developing and integrating new technologies, with no assurance that these efforts will yield the intended results[145]. - The company is exposed to cybersecurity risks that could disrupt operations and lead to unauthorized access to sensitive information, potentially harming reputation and financial performance[105]. - The company has identified a material weakness in its internal control over financial reporting, which could lead to misstatements in financial statements if not remediated[124]. - The company’s management team lacks extensive experience managing a public company, which may affect its ability to comply with regulatory obligations[133]. Stockholder Considerations - As of December 31, 2024, there are 14,633,311 Warrants outstanding, each exercisable for one share of Common Stock at an exercise price of $11.50, which could lead to dilution for stockholders[163]. - The company may redeem outstanding Warrants at a price of $0.01 per Warrant if the Common Stock price exceeds $18.00, potentially disadvantaging Warrant holders[169]. - Approximately 43% of Common Stock is beneficially owned by the Holley Stockholder and the Sponsor, which could impact market price if these shares are sold[168]. - The company does not intend to pay cash dividends for the foreseeable future, focusing instead on business development and expansion[174]. - The company qualifies as an "emerging growth company," allowing it to take advantage of certain reporting exemptions until December 31, 2025[175]. - Future issuances of debt or equity securities may dilute existing stockholders and adversely affect the market price of Common Stock[173]. - The trading price of Common Stock has experienced significant volatility, which could lead to potential securities class action litigation[166]. - The NYSE may delist the company's securities if it fails to meet continued listing standards, which could limit stockholder transactions and reduce liquidity[171]. - The company has the ability to amend the terms of the Warrants with the approval of at least 50% of the holders, which could adversely affect Warrant holders[164]. - The market price of Common Stock and Warrants may be influenced by analyst reports and projections, which can vary widely from actual results[167].

Holley (HLLY) Q4 2024 Earnings Call March 11, 2025 05:46 PM ET Company Participants Anthony Rozmus - Managing DirectorMatthew Stevenson - President & Chief Executive OfficerJesse Weaver - CFO & Head of Information TechnologyChristian Carlino - Equity Research AssociateBret Jordan - Managing Director Conference Call Participants Joseph Altobello - MD & Senior AnalystBrian McNamara - MD & Senior Analyst - ConsumerPhillip Blee - Equity Research Analyst Operator Good morning, ladies and gentlemen, and welcome t ...

Financial Data and Key Metrics Changes - Net sales for Q4 2024 decreased approximately 10% to $140.1 million compared to $156 million in the same period last year [21][49] - Gross margin improved significantly by 690 basis points year-over-year to 45.6%, with gross profit at $63.9 million [22][51] - Adjusted EBITDA for Q4 was $29.1 million, up from $28.5 million in the prior year, with an adjusted EBITDA margin increase of 250 basis points to 20.8% [53] - For the full year 2024, net sales totaled $602.2 million, down from $659.7 million in 2023, while adjusted EBITDA was $110.5 million, down from $130.9 million [60][62] Business Line Data and Key Metrics Changes - Direct-to-consumer sales grew by 8% year-over-year, with significant growth in 17 brands across all channels [17][31] - The B2B channel saw a 12% growth driven by enhanced sales support and strategic partnerships [18][33] - Operational improvements led to a 22% year-over-year reduction in past dues, reflecting a commitment to operational efficiency [19] Market Data and Key Metrics Changes - The overall market sentiment has reverted to a cautious stance, with consumers holding back due to high prices and economic uncertainty [12][14] - The Mexican market is estimated to be between $3 billion and $5 billion, with opportunities in older car parks and modifications [80] Company Strategy and Development Direction - The company aims to become a $1 billion enthusiast platform, focusing on enhancing consumer experiences and balancing sales channels [8][10] - Strategic initiatives include digital modernization, operational improvements, and expanding into new markets, including Mexico [20][30] - The company is committed to maintaining rigorous financial discipline while driving growth through strategic partnerships and product innovation [11][36] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding consumer spending and highlighted the impact of economic uncertainty on consumer confidence [12][64] - The guidance for 2025 assumes that consumer confidence does not worsen, with expectations for growth in the back half of the year [90][71] - The company remains optimistic about its transformative initiatives driving core business growth despite potential market softness [72][102] Other Important Information - The company achieved significant operational improvements, including $7.8 million in cost of service savings and a successful product launch strategy [24][25] - The company has made substantial progress in debt reduction, with $75 million prepaid on its term loan [48][57] Q&A Session Summary Question: Can you talk about the Mexico opportunity? - The Mexican market is estimated to be between $3 billion and $5 billion, with a focus on older car parks and modifications [80] Question: Can you provide more detail on gross margin performance in Q4? - Gross margin improvements were driven by cost to serve efforts and purchasing price variance, with expectations for a more balanced margin throughout 2025 [84][87] Question: Does your guidance assume consumer confidence improves? - The guidance assumes that consumer confidence does not worsen, with potential for growth if conditions improve [90] Question: How are inventories in the channel? - Inventory levels are healthier than last year, with improved alignment between sell-in and sell-through [92] Question: Can you discuss the Cataclean acquisition? - The acquisition of Cataclean is seen as a growth opportunity in the chemicals sector, expanding the company's portfolio [108] Question: How is the modern truck segment performing? - The modern truck and off-road vertical is performing well, with 80% of vehicles sold in the U.S. being trucks, CVs, and SUVs [111] Question: Can you provide details on your core customer demographics? - The core customer demographic is modestly higher income, with expectations of new car purchases showing some hesitancy [114][116] Question: What impact did new product demand have on the top line in 2024? - New product launches contributed positively, with several achieving significant sales, but the primary growth driver remains B2B relationship repair [118][120]

分组1 - Holley Inc. reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, representing an earnings surprise of 450% [1] - The company posted revenues of $140.05 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.42%, but down from $155.71 million year-over-year [2] - Holley has surpassed consensus revenue estimates two times over the last four quarters [2] 分组2 - The stock has underperformed, losing about 20.5% since the beginning of the year compared to the S&P 500's decline of -4.5% [3] - The current consensus EPS estimate for the coming quarter is $0.06 on revenues of $160.6 million, and $0.24 on revenues of $619.96 million for the current fiscal year [7] - The Zacks Industry Rank for Automotive - Original Equipment is in the bottom 46% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Financial Performance - Net Sales for Q4 2024 decreased by 10.1% to $140.1 million compared to $155.7 million in Q4 2023[6] - Full Year 2024 Net Sales decreased by 8.7% to $602.2 million compared to $659.7 million in 2023[6] - Net Loss for Q4 2024 was $(37.8) million, or $(0.32) per diluted share, compared to Net Income of $1.2 million, or $0.01 per diluted share in Q4 2023[6] - Adjusted Net Income for Q4 2024 was $12.6 million compared to an Adjusted Net Loss of $(0.5) million in Q4 2023[6] - Net loss for the thirteen weeks ended December 31, 2024, was $37,782 thousand, compared to a net income of $1,202 thousand for the same period in 2023[32] - Adjusted EBITDA for the year ended December 31, 2024, was $110,493 thousand, down from $130,885 thousand in 2023, reflecting a decrease of approximately 15.6%[32] - The Adjusted EBITDA Margin for the year ended December 31, 2024, was 18.3%, compared to 19.8% in 2023, indicating a decline in operational efficiency[32] - The net income margin for the year ended December 31, 2024, was -3.9%, compared to a positive margin of 2.9% in 2023[32] - Adjusted Net Income for the year ended December 31, 2024, was $24,838 thousand, compared to $25,040 thousand in 2023, showing a slight decrease[36] Cash Flow and Assets - The company reported a net cash provided by operating activities of $4.126 million for the thirteen weeks ended December 31, 2024, compared to $31.229 million in the prior year[27] - Net cash provided by operating activities for the year ended December 31, 2024, was $46,899 thousand, down from $88,092 thousand in 2023[38] - Cash and cash equivalents increased to $56.087 million as of December 31, 2024, compared to $41.081 million at the end of 2023[25] - Total assets decreased to $1,133.320 million as of December 31, 2024, down from $1,203.343 million as of December 31, 2023[25] - Total liabilities decreased to $712.168 million as of December 31, 2024, from $762.192 million as of December 31, 2023[25] Operational Metrics - Adjusted EBITDA for Full Year 2024 was $110.5 million, down from $130.9 million in 2023[11] - Free Cash Flow for the year ended December 31, 2024, was $41,821 thousand, a decrease from $83,639 thousand in 2023, representing a decline of approximately 50%[38] - The Bank-adjusted EBITDA Leverage Ratio as of December 31, 2024, was 4.17x, indicating a significant level of debt relative to earnings[34] - Research and development costs for the year ended December 31, 2024, were $18.710 million, a decrease of 21.5% from $23.844 million in 2023[23] - Inventory turns improved to 2.0x compared to 1.9x last year[13] Strategic Developments - A perpetual exclusive license agreement with Cataclean for the North American market was announced for a total purchase price of $23.8 million[13] - Full Year 2025 revenue guidance indicates expected growth of 0.8% to 4.3%, with projected Net Sales of $580 - $600 million[12] - Direct-to-Consumer (DTC) and National Retailer growth was 8% and 12%, respectively, in 2024[5] - Revenue per SKU for new product launches increased by 75%, with eCommerce sales surpassing $100 million[5] Impairments and Restructuring - The company reported an impairment of goodwill amounting to $40,906 thousand for the year ended December 31, 2024[34] - The company incurred restructuring costs of $1,372 thousand for the year ended December 31, 2024[34] Income and Loss Analysis - Operating income for the thirteen weeks ended December 31, 2024, was a loss of $28.981 million, a decline of 254.2% from an operating income of $18.790 million in 2023[23] - Gross profit increased by 6.0% to $63.886 million for the thirteen weeks ended December 31, 2024, compared to $60.254 million in the prior year[23]

Core Insights - The article discusses the mixed outcomes of companies going public, highlighting that while some achieve significant success, others, like Holley (NYSE: HLLY), have underperformed [1]. Group 1 - The public offering is a significant milestone for companies, with varying results in terms of shareholder wealth creation [1].