Holley Reports Fourth Quarter and Full Year 2023 Results; Early Stages of Transformation Yielding Positive Year-Over-Year Improvement in Q4 Profitability
Year Over Year Fourth Quarter Net Income Improvement of
Continued strong cash generation and debt paydown further reduces net leverage
Provides outlook and guidance for Q1 and full year 2024
Fourth Quarter Highlights vs. Prior Year Period
-
Net Sales increased 1.0% to$155.7 million compared to$154.2 million last year -
Gross Profit increased 27.5% to
$60.3 million compared to$47.3 million last year, and gross margin was 38.7% compared to 30.7% last year -
Net Income was
$1.2 million , or$0.01 per diluted share, compared to a Net Loss of$(15.2) million , or$(0.13) per diluted share, last year -
Adjusted Net Loss1 was
$(0.5) million compared to$(22.6) million last year -
Adjusted EBITDA1 was
$28.5 million compared to$15.1 million last year -
Net Cash Provided by Operating Activities was
$31.2 million compared to$0.1 million last year -
Free Cash Flow1 was
$29.9 million compared to$(1.3) million last year
Full Year 2023 Highlights vs. Prior Year Period
-
Net Sales decreased 4.2% to$659.7 million compared to$688.4 million last year -
Gross Profit increased 1.0% to
$256.1 million compared to$253.7 million last year, and gross margin was 38.8% compared to 36.8% last year -
Net Income was
$19.2 million , or$0.16 per diluted share, compared to$73.8 million , or$0.14 per diluted share, last year -
Adjusted Net Income1 was
$25.0 million compared to$7.9 million last year -
Adjusted EBITDA1 was
$130.1 million compared to$114.7 million last year -
Net Cash Provided by Operating Activities was
$88.1 million compared to$12.3 million last year -
Free Cash Flow1 was
$83.6 million compared to$(0.4) million last year
1See “Use and Reconciliation of Non-GAAP Financial Measures” below.
"In 2023, Holley achieved many accomplishments as we focused on fueling our teammates, supercharging our customers, and accelerating profitable growth," said
Key Operating Metrics and Strategic Highlights
-
Reduced past due orders sequentially by
$4.8 million during the fourth quarter,$17.9 million in 2023 -
Reduced inventory sequentially by
$13.7 million during the fourth quarter,$40.1 million in 2023 -
$5.0 million of year-over-year savings in the fourth quarter and$35.6 million for the full year driven by operational improvements and cost savings initiatives -
Completed additional
$25 million in early debt paydown against the Company’s first lien term loan facility in Q4 - Holley’s bank-adjusted EBITDA leverage ratio at quarter end of 4.21x was well below the amended covenant ceiling of 5.75x for Q4 of 2023 and below the original covenant level of 5.0x
- Record-setting attendance at consumer-focused Holley events in 2023, encompassing 7 multi-day festivals
- Implemented a new organizational design, including seven distinct product category teams, to drive growth through expansion of Holley’s portfolio of brands and products into additional consumer verticals
Stevenson continued, "As we look to 2024, we will maintain our focus on transforming Holley’s growth engine, despite a potentially challenging macro-economic environment. We will put in the fundamental talent, resources, and processes to unlock its full potential. While we work on revving up Holley’s top-line growth engine, we will also simultaneously work on improving our distribution processes and cost to serve. We will also reduce complexity in product offerings, optimize our cost structure, and drive improved profitability.
Our operating model has exhibited increasingly strong cash flow, and we are confident that we will continue paying down debt and improving the company’s financial flexibility this year. Our focused strategy, disciplined culture, and dedicated team will guide us going forward as we drive toward our long-term financial goals."
Holley's CFO,
Outlook
Holley is providing the following outlook for the first quarter and full-year 2024:
Metric |
First Quarter 2024 Outlook |
Full Year 2024 Outlook |
|
|
|
Adjusted EBITDA |
|
|
Capital Expenditures |
|
|
Depreciation and Amortization Expense |
|
|
Interest Expense |
|
|
Bank-adjusted EBITDA Leverage Ratio |
|
4.0x - 3.5x |
Conference Call
A conference call and audio webcast has been scheduled for
For those unable to participate, a telephone replay recording will be available until
Additional Financial Information
The Investor Relations page of Holley’s website, investor.holley.com contains a significant amount of financial information about Holley, including our earnings presentation, which can be found under Events & Presentations. Holley encourages investors to visit this website regularly, as information is updated, and new information is posted.
About
Forward-Looking Statements
Certain statements in this press release may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Holley’s future financial or operating performance. For example, projections of future revenue and adjusted EBITDA and other metrics, along with statements regarding the impact of organizational changes, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “or” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Holley and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: 1) the ability of Holley to grow and manage growth profitably which may be affected by, among other things, competition; to maintain relationships with customers and suppliers; and to retain its management and key employees; 2) costs related to Holley being a public company; 3) disruptions to Holley’s operations, including as a result of cybersecurity incidents; 4) changes in applicable laws or regulations; 5) the outcome of any legal proceedings that have been or may be instituted against Holley; 6) general economic and political conditions, including the current macroeconomic environment, political tensions, and war (including the conflict in
[Financial Tables to Follow]
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
(In thousands) |
(Unaudited) |
|
|
For the thirteen weeks ended |
|
|
For the year ended |
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Variance |
|
|
Variance |
|
|
|
|
|
|
|
|
Variance |
|
|
Variance |
|
||||||||
|
|
2023 |
|
|
2022 |
|
|
($) |
|
|
(%) |
|
|
2023 |
|
|
2022 |
|
|
($) |
|
|
(%) |
|
||||||||
|
|
$ |
155,707 |
|
|
$ |
154,165 |
|
|
$ |
1,542 |
|
|
|
1.0 |
% |
|
$ |
659,704 |
|
|
$ |
688,415 |
|
|
$ |
(28,711 |
) |
|
|
-4.2 |
% |
Cost of Goods Sold |
|
|
95,453 |
|
|
|
106,908 |
|
|
|
(11,455 |
) |
|
|
-10.7 |
% |
|
|
403,615 |
|
|
|
434,757 |
|
|
|
(31,142 |
) |
|
|
-7.2 |
% |
Gross Profit |
|
|
60,254 |
|
|
|
47,257 |
|
|
|
12,997 |
|
|
|
27.5 |
% |
|
|
256,089 |
|
|
|
253,658 |
|
|
|
2,431 |
|
|
|
1.0 |
% |
Selling, General, and Administrative |
|
|
32,246 |
|
|
|
48,196 |
|
|
|
(15,950 |
) |
|
|
-33.1 |
% |
|
|
120,244 |
|
|
|
150,728 |
|
|
|
(30,484 |
) |
|
|
-20.2 |
% |
Research and Development Costs |
|
|
4,909 |
|
|
|
6,687 |
|
|
|
(1,778 |
) |
|
|
-26.6 |
% |
|
|
23,844 |
|
|
|
29,083 |
|
|
|
(5,239 |
) |
|
|
-18.0 |
% |
Amortization of Intangible Assets |
|
|
3,517 |
|
|
|
3,698 |
|
|
|
(181 |
) |
|
|
-4.9 |
% |
|
|
14,557 |
|
|
|
14,683 |
|
|
|
(126 |
) |
|
|
-0.9 |
% |
Impairment of Indefinite-Lived Intangible Assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
nm |
|
|
|
— |
|
|
|
2,395 |
|
|
|
(2,395 |
) |
|
|
-100.0 |
% |
Acquisition and Restructuring Costs |
|
|
535 |
|
|
|
1,266 |
|
|
|
(731 |
) |
|
|
-57.7 |
% |
|
|
2,641 |
|
|
|
4,513 |
|
|
|
(1,872 |
) |
|
|
-41.5 |
% |
Other Operating Expense (Benefit) |
|
|
257 |
|
|
|
920 |
|
|
|
(663 |
) |
|
|
-72.1 |
% |
|
|
765 |
|
|
|
1,514 |
|
|
|
(749 |
) |
|
|
-49.5 |
% |
Operating Expense |
|
|
41,464 |
|
|
|
60,767 |
|
|
|
(19,303 |
) |
|
|
-31.8 |
% |
|
|
162,051 |
|
|
|
202,916 |
|
|
|
(40,865 |
) |
|
|
-20.1 |
% |
Operating Income (Loss) |
|
|
18,790 |
|
|
|
(13,510 |
) |
|
|
32,300 |
|
|
|
nm |
|
|
|
94,038 |
|
|
|
50,742 |
|
|
|
43,296 |
|
|
|
85.3 |
% |
Change in Fair Value of Warrant Liability |
|
|
(1,405 |
) |
|
|
(5,909 |
) |
|
|
4,504 |
|
|
|
-76.2 |
% |
|
|
4,111 |
|
|
|
(57,021 |
) |
|
|
61,132 |
|
|
|
nm |
|
Change in Fair Value of Earn-Out Liability |
|
|
214 |
|
|
|
(1,449 |
) |
|
|
1,663 |
|
|
|
nm |
|
|
|
2,303 |
|
|
|
(10,731 |
) |
|
|
13,034 |
|
|
|
nm |
|
Gain on Early Extinguishment of Debt |
|
|
(701 |
) |
|
|
— |
|
|
|
(701 |
) |
|
|
nm |
|
|
|
(701 |
) |
|
|
— |
|
|
|
(701 |
) |
|
|
nm |
|
Interest Expense, Net |
|
|
18,837 |
|
|
|
13,447 |
|
|
|
5,390 |
|
|
|
40.1 |
% |
|
|
60,746 |
|
|
|
40,227 |
|
|
|
20,519 |
|
|
|
51.0 |
% |
Non-Operating Expense (Income) |
|
|
16,945 |
|
|
|
6,089 |
|
|
|
10,856 |
|
|
|
178.3 |
% |
|
|
66,459 |
|
|
|
(27,525 |
) |
|
|
93,984 |
|
|
|
nm |
|
Income (Loss) Before Income Taxes |
|
|
1,845 |
|
|
|
(19,599 |
) |
|
|
21,444 |
|
|
|
nm |
|
|
|
27,579 |
|
|
|
78,267 |
|
|
|
(50,688 |
) |
|
|
-64.8 |
% |
Income Tax Expense (Benefit) |
|
|
643 |
|
|
|
(4,373 |
) |
|
|
5,016 |
|
|
|
nm |
|
|
|
8,399 |
|
|
|
4,493 |
|
|
|
3,906 |
|
|
|
86.9 |
% |
Net Income (Loss) |
|
$ |
1,202 |
|
|
$ |
(15,226 |
) |
|
$ |
16,428 |
|
|
|
nm |
|
|
$ |
19,180 |
|
|
$ |
73,774 |
|
|
$ |
(54,594 |
) |
|
|
-74.0 |
% |
Comprehensive Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency Translation Adjustment |
|
|
337 |
|
|
|
(2,248 |
) |
|
|
2,585 |
|
|
|
nm |
|
|
|
234 |
|
|
|
(990 |
) |
|
|
1,224 |
|
|
|
nm |
|
Pension Liability Gain |
|
|
— |
|
|
|
302 |
|
|
|
(302 |
) |
|
|
-100.0 |
% |
|
|
— |
|
|
|
302 |
|
|
|
(302 |
) |
|
|
-100.0 |
% |
Total Comprehensive Income (Loss) |
|
$ |
1,539 |
|
|
$ |
(17,172 |
) |
|
$ |
18,711 |
|
|
|
nm |
|
|
$ |
19,414 |
|
|
$ |
73,086 |
|
|
$ |
(53,672 |
) |
|
|
-73.4 |
% |
Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Net Income (Loss) per Share |
|
$ |
0.01 |
|
|
$ |
(0.13 |
) |
|
$ |
0.14 |
|
|
|
nm |
|
|
$ |
0.16 |
|
|
$ |
0.63 |
|
|
$ |
(0.47 |
) |
|
|
-74.6 |
% |
Diluted Net Income (Loss) per Share |
|
$ |
0.01 |
|
|
$ |
(0.13 |
) |
|
$ |
0.14 |
|
|
|
nm |
|
|
$ |
0.16 |
|
|
$ |
0.14 |
|
|
$ |
0.02 |
|
|
|
14.3 |
% |
Weighted Average Common Shares Outstanding - Basic |
|
|
117,707 |
|
|
|
117,148 |
|
|
|
559 |
|
|
|
0.5 |
% |
|
|
117,379 |
|
|
|
116,763 |
|
|
|
616 |
|
|
|
0.5 |
% |
Weighted Average Common Shares Outstanding - Diluted |
|
|
119,573 |
|
|
|
117,179 |
|
|
|
2,394 |
|
|
|
2.0 |
% |
|
|
118,511 |
|
|
|
117,248 |
|
|
|
1,263 |
|
|
|
1.1 |
% |
nm - not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEET |
(In thousands) |
(Unaudited) |
|
|
As of |
|
|||||
|
|
|
|
|
|
|
||
|
|
2023 |
|
|
2022 |
|
||
Assets |
|
|
|
|
|
|
|
|
Total Current Assets |
|
$ |
297,366 |
|
|
$ |
324,963 |
|
Property, Plant and Equipment, Net |
|
|
47,206 |
|
|
|
52,181 |
|
|
|
|
419,056 |
|
|
|
418,121 |
|
Other Intangibles, Net |
|
|
410,465 |
|
|
|
424,855 |
|
Other Noncurrent Assets |
|
|
29,250 |
|
|
|
29,522 |
|
Total Assets |
|
$ |
1,203,343 |
|
|
$ |
1,249,642 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
Total Current Liabilities |
|
$ |
92,847 |
|
|
$ |
101,259 |
|
Long-Term Debt, Net of Current Portion |
|
|
577,600 |
|
|
|
643,563 |
|
Deferred Taxes |
|
|
53,542 |
|
|
|
58,390 |
|
Other Noncurrent Liabilities |
|
|
38,203 |
|
|
|
30,440 |
|
Total Liabilities |
|
|
762,192 |
|
|
|
833,652 |
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
|
12 |
|
|
|
12 |
|
|
|
|
373,869 |
|
|
|
368,122 |
|
Accumulated Other Comprehensive Loss |
|
|
(710 |
) |
|
|
(944 |
) |
Retained Earnings |
|
|
67,980 |
|
|
|
48,800 |
|
Total Stockholders’ Equity |
|
|
441,151 |
|
|
|
415,990 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
1,203,343 |
|
|
$ |
1,249,642 |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In thousands) |
(Unaudited) |
|
|
For the thirteen weeks
|
|
|
For the year ended |
|
||||||||||
|
|
December
|
|
|
December
|
|
|
December
|
|
|
December
|
|
||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
1,202 |
|
|
$ |
(15,226 |
) |
|
$ |
19,180 |
|
|
$ |
73,774 |
|
Adjustments to Reconcile to |
|
|
14,625 |
|
|
|
17,465 |
|
|
|
44,071 |
|
|
|
(5,155 |
) |
Changes in Operating Assets and Liabilities |
|
|
15,402 |
|
|
|
(2,091 |
) |
|
|
24,841 |
|
|
|
(56,307 |
) |
Net Cash Provided by Operating Activities |
|
|
31,229 |
|
|
|
148 |
|
|
|
88,092 |
|
|
|
12,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures, Net of Dispositions |
|
|
(1,328 |
) |
|
|
(1,430 |
) |
|
|
(4,453 |
) |
|
|
(12,702 |
) |
Acquisitions / Divestitures, net |
|
|
— |
|
|
|
1,742 |
|
|
|
— |
|
|
|
(12,335 |
) |
Net Cash Provided by (Used in) Investing Activities |
|
|
(1,328 |
) |
|
|
312 |
|
|
|
(4,453 |
) |
|
|
(25,037 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Change in Debt |
|
|
(25,601 |
) |
|
|
8,307 |
|
|
|
(66,038 |
) |
|
|
3,517 |
|
Deferred financing fees |
|
|
— |
|
|
|
— |
|
|
|
(1,427 |
) |
|
|
— |
|
Payments from Stock-Based Award Activities |
|
|
(409 |
) |
|
|
— |
|
|
|
(1,543 |
) |
|
|
(1,050 |
) |
Proceeds from Issuance of Common Stock Due to Exercise of Warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
383 |
|
Net Cash Provided by (Used in) Financing Activities |
|
|
(26,010 |
) |
|
|
8,307 |
|
|
|
(69,008 |
) |
|
|
2,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of Foreign Currency Rate Fluctuations on Cash |
|
|
357 |
|
|
|
777 |
|
|
|
300 |
|
|
|
(300 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Change in Cash and Cash Equivalents |
|
|
4,248 |
|
|
|
9,544 |
|
|
|
14,931 |
|
|
|
(10,175 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of Period |
|
|
36,833 |
|
|
|
16,606 |
|
|
|
26,150 |
|
|
|
36,325 |
|
End of Period |
|
$ |
41,081 |
|
|
$ |
26,150 |
|
|
$ |
41,081 |
|
|
$ |
26,150 |
|
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Free Cash Flow are not prepared in accordance with accounting principles generally accepted in
Holley believes EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Free Cash Flow are useful to investors in evaluating the Company’s financial performance and in comparing the Company’s financial results between periods because they exclude the impact of certain items that we do not consider indicative of our ongoing operating performance. In addition, Holley uses these measures internally to establish forecasts, budgets, and operational goals to manage and monitor its business. Holley believes that these non-GAAP and other financial measures help to depict a more realistic representation of the performance of the underlying business, enabling Holley to evaluate and plan more effectively for the future.
|
USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
(In thousands) |
(Unaudited) |
|
|
For the thirteen weeks
|
|
|
For the year ended |
|
||||||||||
|
|
December
|
|
|
December
|
|
|
December
|
|
|
December
|
|
||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net Income (Loss) |
|
$ |
1,202 |
|
|
$ |
(15,226 |
) |
|
$ |
19,180 |
|
|
$ |
73,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense, Net |
|
|
18,837 |
|
|
|
13,447 |
|
|
|
60,746 |
|
|
|
40,227 |
|
Income Tax Expense (Benefit) |
|
|
643 |
|
|
|
(4,373 |
) |
|
|
8,399 |
|
|
|
4,493 |
|
Depreciation |
|
|
2,570 |
|
|
|
2,607 |
|
|
|
10,308 |
|
|
|
10,107 |
|
Amortization |
|
|
3,517 |
|
|
|
3,698 |
|
|
|
14,557 |
|
|
|
14,683 |
|
EBITDA |
|
|
26,769 |
|
|
|
153 |
|
|
|
113,190 |
|
|
|
143,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and Restructuring Costs |
|
|
535 |
|
|
|
1,266 |
|
|
|
2,641 |
|
|
|
4,513 |
|
Change in Fair Value of Warrant Liability |
|
|
(1,405 |
) |
|
|
(5,909 |
) |
|
|
4,111 |
|
|
|
(57,021 |
) |
Change in Fair Value of Earn-Out Liability |
|
|
214 |
|
|
|
(1,449 |
) |
|
|
2,303 |
|
|
|
(10,731 |
) |
Equity-Based Compensation Expense |
|
|
2,121 |
|
|
|
14,877 |
|
|
|
7,291 |
|
|
|
24,395 |
|
Product Rationalization |
|
|
— |
|
|
|
4,519 |
|
|
|
(800 |
) |
|
|
4,519 |
|
Impairment of Indefinite-Lived Intangible Assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,395 |
|
Gain on Early Extinguishment of Debt |
|
|
(701 |
) |
|
|
— |
|
|
|
(701 |
) |
|
|
— |
|
Notable Items |
|
|
721 |
|
|
|
741 |
|
|
|
1,285 |
|
|
|
1,838 |
|
Other Expense |
|
|
257 |
|
|
|
920 |
|
|
|
765 |
|
|
|
1,514 |
|
Adjusted EBITDA |
|
$ |
28,511 |
|
|
$ |
15,118 |
|
|
$ |
130,085 |
|
|
$ |
114,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
|
$ |
155,707 |
|
|
$ |
154,165 |
|
|
$ |
659,704 |
|
|
$ |
688,415 |
|
Net Income Margin |
|
|
0.8 |
% |
|
|
-9.9 |
% |
|
|
2.9 |
% |
|
|
10.7 |
% |
Adjusted EBITDA Margin |
|
|
18.3 |
% |
|
|
9.8 |
% |
|
|
19.7 |
% |
|
|
16.7 |
% |
|
|
For the thirteen weeks
|
|
|
For the year ended |
|
||||||||||
|
|
December
|
|
|
December
|
|
|
December
|
|
|
December
|
|
||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net Income (Loss) |
|
$ |
1,202 |
|
|
$ |
(15,226 |
) |
|
$ |
19,180 |
|
|
$ |
73,774 |
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjust for: Change in Fair Value of Warrant Liability |
|
|
(1,405 |
) |
|
|
(5,909 |
) |
|
|
4,111 |
|
|
|
(57,021 |
) |
Adjust for: Change in Fair Value of Earn-Out Liability |
|
|
214 |
|
|
|
(1,449 |
) |
|
|
2,303 |
|
|
|
(10,731 |
) |
Adjust for: Gain on Early Extinguishment of Debt |
|
|
(554 |
) |
|
|
— |
|
|
|
(554 |
) |
|
|
— |
|
Adjust for: Impairment of Indefinite-Lived Intangible Assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,892 |
|
Adjusted Net Income (Loss) |
|
$ |
(543 |
) |
|
$ |
(22,584 |
) |
|
$ |
25,040 |
|
|
$ |
7,914 |
|
|
|
For the thirteen weeks ended |
|
|
For the year ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net Cash Provided by Operating Activities |
|
$ |
31,229 |
|
|
$ |
148 |
|
|
$ |
88,092 |
|
|
$ |
12,312 |
|
Capital Expenditures, Net of Dispositions |
|
|
(1,328 |
) |
|
|
(1,430 |
) |
|
|
(4,453 |
) |
|
|
(12,702 |
) |
Free Cash Flow |
|
$ |
29,901 |
|
|
$ |
(1,282 |
) |
|
$ |
83,639 |
|
|
$ |
(390 |
) |
|
|
First Quarter 2024 Outlook |
|
|
Full Year 2024 Outlook |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
150,000 |
|
|
$ |
160,000 |
|
|
$ |
640,000 |
|
|
$ |
680,000 |
|
Adjusted EBITDA |
|
|
27,000 |
|
|
|
33,000 |
|
|
|
125,000 |
|
|
|
145,000 |
|
Depreciation and Amortization |
|
|
|
|
|
|
|
|
|
|
24,000 |
|
|
|
26,000 |
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
50,000 |
|
|
|
55,000 |
|
Capital Expenditures |
|
|
|
|
|
|
|
|
|
|
8,000 |
|
|
|
12,000 |
|
Bank-adjusted EBITDA Leverage Ratio |
|
|
|
|
|
|
|
|
|
4.0x |
|
|
3.5x |
|
Holley defines EBITDA as earnings before depreciation, amortization of intangible assets, interest expense, and income tax expense. Holley defines Adjusted EBITDA as EBITDA adjusted to exclude, to the extent applicable, acquisition and restructuring costs, which includes transaction fees and expenses, termination related benefits, facilities relocation, and executive transition costs; changes in the fair value of the warrant liability; changes in the fair value of the earn-out liability; equity-based compensation expense; impairment of intangible assets; gain or loss on the early extinguishment of debt; non-cash charges due to a product rationalization initiative aimed at eliminating unprofitable or slow-moving stock keeping units, for which a partial reversal of the initial reserve was recognized during the year ended
Holley calculates Adjusted Net Income by excluding the after-tax effect of items considered by management to be special items from the earnings reported under
Holley defines Free Cash Flow as net cash provided by operating activities minus cash payments for capital expenditures, net of dispositions. Management believes providing Free Cash Flow is useful for investors to understand the Company's performance and results of cash generation after making capital investments required to support ongoing business operations.
A forecast for first quarter and full year 2024 Adjusted EBITDA and a forecast for full year 2024
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228771317/en/
Investor Relations:
312-445-2870
HLLY@alpha-ir.com
Media Relations:
615-454-2913
Source: