Holley (HLLY)2024-11-08 12:17Financial Performance - Net Sales decreased by 14.4% to 156.5 million last year[2] - Net Loss was (0.05) per diluted share, compared to Net Income of 0.01 per diluted share last year[2] - Adjusted EBITDA was 27.9 million last year[2] - Gross profit for the thirteen weeks ended September 29, 2024, was 58,374,000 year-over-year[14] - Operating income decreased by 71.2% to 19,320,000 in the prior year[14] - Net income for the thirteen weeks ended September 29, 2024, was a loss of 752,000 in the same period last year, representing a 936.2% decrease[14] - Adjusted EBITDA for the thirty-nine weeks ended September 29, 2024, was 101,574 thousand for the thirty-nine weeks ended October 1, 2023, indicating a decrease of approximately 11.5%[20] - Net Cash Provided by Operating Activities for the thirteen weeks ended September 29, 2024, was 22,480 for the same period last year, indicating a substantial decline[29] Inventory and Assets - Total net inventory reduced to 207.2 million in Q3 of last year, with inventory turns improving to 2.2x from 1.9x[6] - Total assets as of September 29, 2024, were 1,203,343,000 as of December 31, 2023[15] - Cash and cash equivalents increased to 41,081,000 at the end of 2023[15] - Total liabilities decreased to 762,192,000 at the end of 2023[15] Future Outlook - Fourth quarter 2024 net sales outlook is projected between 143 million, while full-year 2024 outlook is between 605 million[8] - Adjusted EBITDA for the fourth quarter 2024 is expected to be between 29 million, with full-year 2024 expected between 120 million[8] Cost Management - Research and development costs for the thirteen weeks ended September 29, 2024, were 6,100,000 year-over-year[14] - The company reported a restructuring cost increase of 129.9% to 415,000 in the prior year[14] Debt and Leverage - Bank-adjusted EBITDA leverage ratio at quarter end was 4.25x, well below the covenant ceiling of 5.00x[7] - The bank-adjusted EBITDA leverage ratio was reported at 4.25x, indicating the company's debt levels relative to its adjusted EBITDA[22] - The net change in debt for the thirty-nine weeks ended September 29, 2024, was (40,437) thousand for the thirty-nine weeks ended October 1, 2023[16] Brand Performance - Direct-to-consumer channel saw a 16% year-over-year increase, while B2B out-the-door sales experienced a 10% median lift during event windows[4] - Significant growth observed in power brands year to date, with some brands increasing by over 30%[4] Margins and Earnings - The company reported a net income margin of -4.7% for the thirteen weeks ended September 29, 2024, compared to 0.5% for the thirteen weeks ended October 1, 2023[20] - Adjusted Gross Margin for the thirty-nine weeks ended September 29, 2024, was 39.7%, compared to 38.7% for the thirty-nine weeks ended October 1, 2023, showing an improvement[24] - Adjusted Diluted EPS for the thirty-nine weeks ended September 29, 2024, was 0.22 for the thirty-nine weeks ended October 1, 2023, a decrease of 54.5%[27]