Financial Data and Key Metrics Changes - Holley reported net sales of $159.7 million for Q3 2021, an increase of $26.3 million or 20% compared to Q3 2020, driven by acquisitions which contributed $29.8 million to growth [20][8] - Organic sales declined by $3.4 million, or 2.6%, impacted by a cybersecurity incident that deferred approximately $7 million in sales to Q4 2021 [20][10] - Gross margin decreased from 41.7% in Q3 2020 to 40.8% in Q3 2021 due to supply chain inflation and product mix [21] - Total selling, general and administrative expenses increased by 67% in Q3 2021, influenced by acquired expenses and higher shipping costs [22] - The company recorded a net loss of $30.2 million in Q3 2021, while adjusted net income remained flat at $13.5 million compared to Q3 2020 [24] Business Line Data and Key Metrics Changes - The direct-to-consumer (DTC) channel continued to be the fastest-growing segment, with strong demand across all channels despite the impact of the cybersecurity incident on reseller channels [45] - The company is focusing on continuous innovation to attract new customers and retain existing ones, with plans to implement loyalty programs in the future [39] Market Data and Key Metrics Changes - Holley faced challenges related to supply chain constraints and raw material inflation, prompting the company to implement more frequent price adjustments to protect margins [13][14] - The company is optimistic about the stabilization of supply chain issues, which is a key variable in their guidance for the remainder of the year [72] Company Strategy and Development Direction - Holley is pursuing a robust acquisition strategy to expand into new categories and enhance profitability, with recent acquisitions including Finspeed and Classic Instruments [16][35] - The company aims to deepen its emotional connection with consumers through events and community engagement, hosting record attendance at consumer events [17][18] - Holley is also exploring opportunities in the electric vehicle (EV) market, recognizing growing consumer interest in performance-oriented EVs and powertrain conversions [85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong demand for products, driven by engaged enthusiast consumers and a positive industry growth outlook [30] - The company reiterated its annual guidance for net sales in the range of $648 million to $663 million, with pro forma adjusted EBITDA projected between $165 million and $170 million [25] Other Important Information - The company is taking steps to enhance cybersecurity measures to prevent future incidents, working with strategic technology partners [12] - Holley is actively monitoring global supply chain and raw material cost projections, which have influenced recent pricing actions [21] Q&A Session Summary Question: Market demand and durability - Management indicated strong demand for products, with a positive outlook for future growth driven by engaged consumers [30] Question: Future acquisition strategies - The company is targeting underpenetrated categories and expanding into adjacent markets, with a robust pipeline of acquisition opportunities [33][35] Question: Organic growth drivers - Continuous innovation and the development of a digital ecosystem are key strategies to attract and retain customers [39][42] Question: Performance across sales channels - DTC remains the fastest-growing channel, with strong demand across all channels despite challenges faced by resellers [45] Question: Pricing strategy and consumer reaction - The company is implementing more frequent price adjustments while maintaining positive consumer feedback on pricing strategies [52][54] Question: Cybersecurity incident remediation efforts - Management is enhancing monitoring and backup systems to prevent future attacks, with a modest increase in SG&A expenses anticipated [55] Question: Gross margin decline factors - The decline in gross margin is attributed to increased shipping costs and product mix, with container shipping costs being a significant pressure point [61][62] Question: Supply chain and inventory management - Supply chain stabilization is crucial for meeting guidance, with improved inventory positions being monitored closely [72][73] Question: M&A appetite and pipeline - The company has a robust pipeline for future acquisitions, focusing on expanding total addressable market and entering new categories [76][77] Question: Inflation impact on costs - Cost pressures are primarily from components and shipping, with pricing actions taken to maintain gross margins above 40% [82] Question: EV market demand - Management noted growing interest in performance-oriented EVs and powertrain conversions, viewing it as a strategic opportunity for future growth [85]

(MARK ONE) Table of Contents Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended June 30, 2021 ☐ 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) 001-39599 (Commission File Numb ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File No. 001-39599 EMPOWER LTD. (Exact name of registrant as specified in its charter) Cayman Islands N/A (State or other ...