Fox(US:FOXF)2025-02-27 21:08Financial Performance - Net sales for Q4 fiscal 2024 were $353 million, a $20 million increase from the prior year, reflecting a 6.1% growth[4] - Gross margin for Q4 fiscal 2024 was 28.9%, up 120 basis points from 27.7% in Q4 fiscal 2023[6] - Adjusted earnings per diluted share for Q4 fiscal 2024 was $0.31, compared to $0.48 in the same period of the prior fiscal year[9] - Fiscal year 2024 net sales were $1,393.9 million, a decrease of 4.8% compared to fiscal 2023[11] - Adjusted EBITDA for Q4 fiscal 2024 was $40.4 million, with an adjusted EBITDA margin of 11.5%[10] - For the three months ended January 3, 2025, net sales increased to $352.8 million, up from $332.5 million for the same period last year, representing a growth of 6.8%[32] - Adjusted net income attributable to FOX stockholders for the year ended January 3, 2025, was $6.6 million, a decrease from $120.8 million in the previous year[32] - The company reported a net loss of $179,000 for the three months ended January 3, 2025, compared to a net income of $4.1 million in the same period last year[32] - The net loss attributable to FOX stockholders for the three months ended January 3, 2025, was $(141) million, compared to a net income of $4.1 million for the same period last year[38] - Adjusted net income for the year ended January 3, 2025, was $55.4 million, down from $167.5 million for the previous year, reflecting a decrease of 66.9%[38] Operating Expenses - Total operating expenses for Q4 fiscal 2024 were $90.6 million, or 25.7% of net sales, compared to $81.0 million, or 24.4% of net sales in Q4 fiscal 2023[7] - Operating expenses for the year ended January 3, 2025, totaled $365.9 million, up from $304.7 million in the previous year, marking an increase of 19.9%[32] - The adjusted operating expense margin for the year ended January 3, 2025, was 22.3%, compared to 18.3% for the previous year, reflecting improved operational efficiency[49] Debt and Assets - Total debt as of January 3, 2025, was $705.1 million, a reduction of $63 million from the previous quarter[18] - Total current assets decreased to $727.7 million as of January 3, 2025, from $768.1 million as of December 29, 2023, a decline of 5.2%[30] - Total liabilities increased to $1.03 billion as of January 3, 2025, compared to $1.02 billion as of December 29, 2023, indicating a slight rise of 0.6%[30] - Cash and cash equivalents decreased to $71.7 million as of January 3, 2025, down from $83.6 million at the end of the previous year, a decline of 14.3%[34] - The company reported an interest expense of $54.9 million for the year ended January 3, 2025, significantly higher than $19.3 million in the prior year[32] Future Outlook - The company expects Q1 fiscal 2025 net sales in the range of $320 million to $350 million and adjusted earnings per diluted share between $0.12 and $0.32[19] - The company intends to acquire Marucci, with expectations of future performance improvements from this acquisition[51] - The company anticipates demand for its products to increase, contributing to future sales growth[51] - Future sales and adjusted earnings per diluted share are projected to grow, although specific figures were not disclosed[51] Strategic Initiatives - The company is targeting $25 million in operational improvements and cost management initiatives[3] - The company is focused on improving operating efficiencies and expects to enhance its operating results and growth prospects[51] - The company aims to develop new and innovative products to expand into new categories and end-markets[51] Market and Economic Conditions - The company is facing potential risks related to supply chain disruptions and the ability to maintain supplier relationships[51] - The company is monitoring the impact of geopolitical tensions, such as the Russia-Ukraine conflict, on its operations and supply chain[51] - The company acknowledges the potential impact of inflation and interest rate increases on future economic conditions[51] - The company emphasizes the importance of adapting to changes in consumer preferences and market demand[51] Miscellaneous - Specialty Sports Group (SSG) net sales increased by $31.1 million or 33.3% to $124.5 million, driven by the Marucci acquisition[5] - The company reported organizational restructuring expenses of $2.0 million for the three months ended January 3, 2025, compared to $2.2 million for the same period last year[38] - The weighted average diluted shares used to compute adjusted EPS for the year ended January 3, 2025, was 41.7 million, compared to 42.4 million for the previous year[38] - The net income margin for the three months ended January 3, 2025, was (0.1)%, down from 1.2% for the same period last year[41] - The company incurred acquisition-related costs of $1.96 million for the three months ended January 3, 2025, compared to $4.39 million for the same period last year[42] - The gross profit for the three months ended January 3, 2025, was $102.0 million, up from $92.3 million for the same period last year, resulting in a gross margin of 28.9%[46] - The adjusted EBITDA for the three months ended January 3, 2025, was $40.4 million, compared to $38.8 million for the same period last year, indicating an increase of 4.2%[41]