Fox(US:FOXF)2021-11-03 16:00Sales Performance - For the three months ended October 1, 2021, total sales increased by approximately $86.7 million, or 33.3%, compared to the same period in 2020, reaching $347.4 million[131]. - Powered Vehicle product sales rose by $35.0 million, or 22.8%, driven by strong performance in upfitting product lines and increased demand in both OEM and aftermarket channels[131]. - Specialty Sports product sales increased by $51.7 million, or 48.1%, due to continued strong demand in the OEM channel[131]. - For the nine months ended October 1, 2021, total sales reached $956.7 million, up from $628.2 million in the same period of 2020, representing a 52.2% increase[127]. - Total sales for the nine months ended October 1, 2021 increased by $328.6 million, or 52.3%, to $956.8 million compared to $628.2 million for the nine months ended October 2, 2020[144]. Cost and Expenses - Cost of sales for the three months ended October 1, 2021, increased by approximately $60.2 million, or 35.2%, totaling $231.4 million[132]. - Operating expenses for the three months ended October 1, 2021, totaled $60.8 million, an increase from $43.9 million in the same period of 2020[127]. - Total operating expenses for the three months ended October 1, 2021 were $60.8 million, an increase of $16.8 million or 38.3% compared to $43.9 million for the same period in 2020[134]. - Cost of sales for the nine months ended October 1, 2021 increased by $209.6 million, or 49.7%, to $631.7 million compared to $422.1 million for the same period in 2020[145]. - Total operating expenses for the nine months ended October 1, 2021 were $171.2 million, an increase of $41.6 million or 32.1% compared to $129.6 million for the nine months ended October 2, 2020[148]. Profitability - Gross margin decreased by 90 basis points to 33.4% for the three months ended October 1, 2021, compared to 34.3% for the same period in 2020, primarily due to supply chain-related costs[133]. - Income from operations for the three months ended October 1, 2021 increased by $9.6 million, or 21.1%, to $55.2 million compared to $45.6 million for the three months ended October 2, 2020[137]. - Net income attributable to FOX stockholders for the three months ended October 1, 2021, was $43.8 million, compared to $38.0 million for the same period in 2020, reflecting an increase of 15.0%[127]. - Net income for the three months ended October 1, 2021 was $43.8 million, reflecting an increase of $5.8 million or 15.3% from $38.0 million for the same period in 2020[143]. - Income from operations for the nine months ended October 1, 2021 increased by $77.3 million, or 101.0%, to $153.8 million compared to $76.5 million for the same period in 2020[151]. - Net income for the nine months ended October 1, 2021 was $126.1 million, an increase of $66.1 million or 110.2% from $60.0 million for the nine months ended October 2, 2020[155]. Taxation - The provision for income taxes for the three months ended October 1, 2021, was $9.8 million, compared to $5.4 million for the same period in 2020[127]. - Provision for income taxes for the nine months ended October 1, 2021 was $20.5 million, an increase of $10.9 million or 113.5% from $9.6 million for the same period in 2020[153]. Cash Flow and Investments - For the nine months ended October 1, 2021, net cash provided by operating activities was $149.3 million, an increase from $99.8 million in the same period of 2020, representing a 49.5% growth[159]. - Net cash used in investing activities was $55.6 million for the nine months ended October 1, 2021, significantly lower than $375.4 million in the same period of 2020, reflecting a strategic shift in investment[163]. - The company made $40.0 million in property and equipment additions and $15.6 million in cash consideration for acquisitions during the nine months ended October 1, 2021[163]. - Net cash used in financing activities was $20.3 million for the nine months ended October 1, 2021, compared to net cash provided of $510.0 million in the same period of 2020, indicating a change in financing strategy[165][166]. Financial Position - The company has a Credit Facility with a borrowing capacity of $250.0 million and a term loan of $400.0 million, maturing on March 11, 2025[167]. - As of October 1, 2021, the weighted-average interest rate on outstanding borrowing was 1.30%, with the one-month LIBOR at 0.08%[169]. - The company was in compliance with all covenants of the Credit Facility as of October 1, 2021, ensuring financial stability[169]. - There have been no material off-balance sheet arrangements reported by the company[170]. Inventory and Receivables - The company experienced an increase in inventory of $116.8 million and accounts receivable of $37.9 million, indicating business growth and supply chain management efforts[160]. Market Conditions - The company has experienced rising raw material costs and supply chain constraints, which are expected to continue into the fourth quarter of 2021[171].