Fox(FOXF)2024-02-21 16:00Financial Performance - Fourth quarter 2023 net sales were 408.6 million in Q4 2022, driven by a 41.4% decrease in Specialty Sports Group (SSG) sales[5] - The company achieved a net income of 0.10, compared to 1.25 in Q4 2022[9] - Adjusted EBITDA for Q4 2023 was 1.464 billion, an 8.6% decrease compared to fiscal 2022, with SSG sales down 42.8%[11] - Gross profit for the twelve months ended December 29, 2023, was 531,343 thousand in the previous year[28] - Adjusted net income for the twelve months ended December 29, 2023, was 205,278 thousand for the same period in 2022[30] - For the three months ended December 29, 2023, net income was 52,959 thousand for the same period in 2022[33] - Adjusted net income for the twelve months ended December 29, 2023, was 232,670 thousand in the previous year[33] - Adjusted EBITDA for the twelve months ended December 29, 2023, was 321,831 thousand for the previous year[37] Expenses and Margins - The company reported a gross margin of 31.7% for fiscal 2023, a decrease of 150 basis points from 33.2% in fiscal 2022[11] - Total operating expenses for fiscal 2023 were 284.6 million, or 17.8% in fiscal 2022[12] - Operating expense for the three months ended December 29, 2023, was 74,167 thousand in the same period of 2022[44] - The company reported a net income margin of 1.2% for the three months ended December 29, 2023, down from 13.0% in the same period of 2022[37] - Adjusted gross margin for the twelve months ended December 29, 2023, was 32.8%, compared to 33.4% for the previous year[41] - Adjusted operating margin for the three months ended December 29, 2023, was 20.6%, compared to 16.2% for the same period in 2022[44] Acquisitions and Growth - The company completed the acquisition of Marucci, contributing 2 billion in sales by 2025, contingent on various market factors including OEM demand and macroeconomic conditions[18] - The company is exploring opportunities for international growth and market expansion[45] - The company is focused on increasing its aftermarket penetration to enhance revenue streams[45] Cash and Assets - The company had cash and cash equivalents of 145.3 million a year earlier, primarily due to debt payments and share repurchases[16] - Total assets increased to 1,618,336 thousand as of December 30, 2022, representing a growth of 38.5%[26] - Cash and cash equivalents decreased to 145,250 thousand as of December 30, 2022, a decline of 42.4%[26] - Total liabilities rose to 496,950 thousand as of December 30, 2022, an increase of 105.5%[26] Future Outlook and Challenges - Fiscal 2024 guidance projects net sales between 1.68 billion, with adjusted earnings per diluted share expected to range from 2.60[17] - The company anticipates demand for its products to remain strong despite potential supply chain disruptions[45] - The company aims to improve operating efficiencies and maintain profitability in the upcoming quarters[45] - The company is committed to developing new and innovative products to expand into new categories and end-markets[45] - The company is facing risks related to inflation and interest rate increases by the U.S. Federal Reserve[45] - The company acknowledges potential challenges from geopolitical tensions affecting its supply chain[45] - The company is aware of the impact of consumer preferences on its product demand and is prepared to adapt accordingly[45] - The company incurred interest expenses of 8,939 thousand in the previous year, reflecting a significant increase[28] - Research and development expenses for the twelve months ended December 29, 2023, were 56,205 thousand in the previous year[28] - The weighted-average shares used to compute diluted earnings per share for the twelve months ended December 29, 2023, were 42,432 thousand, slightly up from 42,384 thousand in the previous year[28]