Fox(US:FOXF)2024-05-02 20:09Financial Performance - Net sales for Q1 fiscal 2024 were $333.5 million, a decrease of 16.6% from $399.9 million in Q1 fiscal 2023[5] - Adjusted earnings per diluted share for Q1 fiscal 2024 were $0.29, exceeding expectations, compared to $1.20 in the same period last year[9] - The net income margin decreased to -1.0% in Q1 fiscal 2024 from 10.4% in Q1 fiscal 2023[9] - Adjusted EBITDA for Q1 fiscal 2024 was $40.4 million, with an adjusted EBITDA margin of 12.1%, down from 19.8% in Q1 fiscal 2023[10] - The company reported a net loss of $3,496 for the three months ended March 29, 2024, compared to a net income of $41,767 in the same period last year[26] - Adjusted net income for the period was $11,925, significantly lower than $51,034 in the prior year[32] - Adjusted EBITDA decreased to $40,419, down 48.9% from $79,158 year-over-year[36] Sales and Revenue - Aftermarket sales increased to 59% of net sales, up from 46% in the prior year quarter[4] - For fiscal year 2024, the company anticipates net sales between $1.53 billion and $1.61 billion, with adjusted earnings per diluted share ranging from $2.30 to $2.55[13] - Net sales for the three months ended March 29, 2024, were $333,472, a decrease of 16.6% compared to $399,851 for the same period in 2023[26] - For the three months ended March 29, 2024, net sales decreased to $333,472 thousand from $399,851 thousand for the same period in 2023, representing a decline of approximately 16.6%[41] Profitability - Gross profit for the same period was $103,158, down 22.6% from $133,298 year-over-year[26] - Adjusted gross profit for the same period was $107,643 thousand, compared to $136,368 thousand in 2023, reflecting a decline of approximately 21.1%[41] - Gross margin decreased to 30.9% in Q1 2024 from 33.3% in Q1 2023, while adjusted gross margin fell to 32.3% from 34.1%[41] Operating Expenses - Total operating expenses rose to $94.3 million, or 28.3% of net sales, compared to $78.6 million, or 19.7% of net sales in Q1 fiscal 2023[7] - Operating expenses increased to $94,283, up 19.9% from $78,608 in the prior year[26] - Adjusted operating expenses were $80,299 thousand for Q1 2024, compared to $70,330 thousand in the prior year, representing an increase of about 14.2%[43] - Operating expense as a percentage of net sales rose to 28.3% in Q1 2024 from 19.7% in Q1 2023, while adjusted operating expense as a percentage of net sales increased to 24.1% from 17.6%[43] Cash and Debt - Cash and cash equivalents decreased to $69.6 million as of March 29, 2024, down from $83.6 million as of December 29, 2023[12] - Total debt increased to $762.4 million as of March 29, 2024, compared to $743.5 million as of December 29, 2023[12] - Cash and cash equivalents at the end of the period were $69,583, down from $83,642 at the beginning of the period[29] Assets and Liabilities - Total assets increased slightly to $2,248,277 from $2,242,298 at the end of the previous quarter[24] - Total liabilities rose to $1,055,788, up from $1,020,537 in the prior quarter[24] Strategic Initiatives - The company is focused on strategic initiatives, including the expansion of the Aftermarket Applications Group's operations[39] - Forward-looking statements indicate expectations regarding future performance, including potential synergies from the acquisition of Marucci and anticipated demand for products[46] Acquisitions - The company incurred $5,041 in acquisitions of businesses during the period, compared to $130,918 in the same period last year[29] - Acquisition-related costs and expenses for the three months ended March 29, 2024, totaled $678 thousand, down from $1,404 thousand in the same period last year[41]