Holley (US:HLLY)2025-03-11 11:33Financial 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]