Holley Reports Third Quarter 2024 Results; Execution Upon Strategic Initiatives Driving Growth in Key Areas of the Business Completed Another Successful Event Season With Strong Enthusiast Engagement

Rhea-AI Summary

Holley (NYSE: HLLY) reported Q3 2024 financial results with net sales decreasing 14.4% to $134.0 million compared to $156.5 million last year. The company posted a net loss of $6.3 million, or $(0.05) per diluted share. Despite challenges, the company saw a 16% year-over-year increase in direct-to-consumer channel and 10% median lift in B2B out-the-door sales during event windows. Notable improvements include a 133% increase in revenue per SKU and 25% rise in new product revenue year-to-date. Moody's upgraded Holley's corporate family rating to B2 from B3. The company revised its full-year 2024 outlook, projecting net sales of $595-605 million.

Positive

• 16% YoY growth in direct-to-consumer channel
• 133% increase in revenue per SKU year-to-date
• 25% rise in new product revenue year-to-date
• Moody's rating upgrade to B2 from B3
• Inventory reduction to $179.3M from $207.2M YoY

Negative

• Net sales declined 14.4% to $134.0M
• Net loss of $6.3M vs. profit of $0.8M last year
• Negative operating cash flow of $1.7M vs. positive $22.5M last year
• Adjusted EBITDA decreased to $22.1M from $29.7M
• Downward revision of full-year guidance

Insights

Financial Analyst

The Q3 results reveal concerning trends with $134.0 million in net sales, marking a 14.4% decline year-over-year. The company swung to a net loss of $6.3 million from a profit last year, while operating cash flow turned negative at $(1.7) million. The deteriorating financial metrics reflect ongoing industry headwinds and inventory normalization challenges.

Despite some bright spots in DTC growth (16%) and improved gross margins, the lowered full-year guidance and continued distributor inventory adjustments signal persistent near-term pressures. The B2 credit rating upgrade from Moody's offers some comfort, but the leverage ratio of 4.25x remains elevated. The company's efforts in operational efficiency and new product revenue growth (25% YTD) are positive, but may not fully offset macro challenges in the short term.

Delivered third quarter financial results within guidance

Moody’s Ratings Upgrades Holley’s CFR to B2

Targeted efforts and marketing calendar event support normalizing distribution partner inventory levels

BOWLING GREEN, Ky.--(BUSINESS WIRE)-- Holley Performance Brands (NYSE: HLLY), a leader in automotive aftermarket performance solutions, today announced financial results for its third quarter ended September 29, 2024.

Third Quarter Highlights vs. Prior Year Period

• Net Sales decreased (14.4%) to $134.0 million compared to $156.5 million last year
• Net Loss was $(6.3) million, or $(0.05) per diluted share, compared to a Net Income of $0.8 million, or $0.01 per diluted share, last year
• Net Cash Used in Operating Activities was $(1.7) million compared to Net Cash Provided by Operating Activities of $22.5 million last year
• Adjusted Net Loss¹ was $(0.5) million compared to Adjusted Net Income of $3.5 million last year
• Adjusted EBITDA¹ was $22.1 million compared to $29.7 million last year
• Free Cash Flow¹ was $(2.1) million compared to $21.7 million last year

¹See “Use and Reconciliation of Non-GAAP Financial Measures” below.

“We continued our progress in our organizational transformation through the third quarter and are encouraged by the immediate impact that our new team members have made in their short time here. Our organization now operates with unprecedented capabilities and professionalism, as demonstrated by the significant advancements we've made across our business operations, even in a challenging macroeconomic environment. Of note, digital modernization and customer service optimization, B2B sales capabilities, new and targeted product launches and revamped pricing strategy have all been upgraded within the last year and well positioned to drive our organic growth engine,” said Matthew Stevenson, President and CEO of Holley.

Stevenson commented, "We are pleased to report that our well-executed marketing calendar helped drive a 16% year-over-year increase in our direct-to-consumer channel and a 10% median lift in B2B out-the-door sales during the event windows. Our marketing events helped our B2B customers align their inventory positions with overall market demand. Also, through focused effort, strategy, and execution, we are seeing significant growth in some of our power brands year to date, such as ADS, Stilo, Dinan, APR, and Simpson, some up as much as over 30%.

However, overall quarterly sales were impacted by distributor inventory normalization driven by two significant factors: alignment to overall macro demand and our greatly improved order fulfillment capability. Our lead times are significantly better than a year ago, so our major customers are reducing their required safety stock.

Our operational efforts also contributed to the quarter's success, with year-over-year improvements in Gross Margin, a 133% increase in revenue per SKU year-to-date, and a 25% rise in new product revenue year-to-date. Additionally, we concluded the event season with strong attendance at our flagship LS Fest East event in Bowling Green, which attracted record attendance of 45,000 enthusiasts."

Key Operating Metrics and Strategic Highlights

• Growth in significant areas of the business, including DTC and multiple key power brands
• Total net inventory reduced to $179.3 million compared to $207.2 million Q3 of last year; inventory turns improved to 2.2x compared to 1.9x last year
• Moody’s Ratings (Moody’s) upgraded Holley's corporate family rating (CFR) to B2 from B3, probability of default rating to B2-PD from B3-PD and senior secured ratings to B2 from B3, noting that the outlook remains stable and the speculative grade liquidity (SGL) rating is unchanged at SGL-2 on August 8, 2024
• Holley’s bank-adjusted EBITDA leverage ratio¹ at quarter end of 4.25x was well below covenant ceiling of 5.00x

¹See “Use and Reconciliation of Non-GAAP Financial Measures” below.

Jesse Weaver, Holley's CFO, added, "We continued to make progress with our financial priorities in the third quarter. We were, once again, recognized by the ratings agencies for the work we have done to strengthen our balance sheet shown by the Moody’s ratings upgrades in August.”

Weaver added, "While our sales were at the low end of the guidance range, this was largely due to continued softness in the industry and our distribution partners taking advantage of the successful out-the-door sales events to clean up their inventories going into the back half of the year. Overall, we're encouraged by our out-the-door sales numbers relative to the overall market and believe that, despite being down, our efforts to partner more closely with distribution partners and investments in DTC are allowing us to maintain our share gains in this challenging environment. Given the performance in Q3 and the continued softness impacting our consumer base, we have lowered our expectations for the full year. While we’re excited about continuing our expanded channel partnership going into Holley Days, we believe this revised outlook is warranted given current industry trends and the current level of uncertainty around distribution partner inventory adjustments going into 2025."

Outlook

Holley is providing the following outlook for the fourth quarter and full-year 2024:

Metric	Fourth Quarter 2024 Outlook	Full Year 2024 Outlook
Net Sales	$133 – $143 million	$595 - $605 million
Adjusted EBITDA *	$24 - $29 million	$115 - $120 million
Capital Expenditures		$6 - $8 million
Depreciation and Amortization Expense		$23 - $25 million
Interest Expense		$50 - $55 million
Bank-adjusted EBITDA Leverage Ratio *		4. 35x - 4.15x

* Holley is not providing reconciliations of forward-looking fourth quarter 2024 and full year 2024 Adjusted EBITDA outlook and full year 2024 Bank-adjusted EBITDA Leverage Ratio outlook because certain information necessary to calculate the most comparable GAAP measure, net income, is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of certain items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, Holley is unable to provide these forward-looking reconciliations without unreasonable effort. Accordingly, Holley is relying on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K to exclude these reconciliations.

Holley notes that its outlook for the fourth quarter and full-year 2024 may vary due to changes in assumptions or market conditions and other factors described below under “Forward-Looking Statements.”

Conference Call

A conference call and audio webcast has been scheduled for 8:30 a.m. Eastern Time today to discuss these results. Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call available on the investor relations portion of the Company’s website at investor.holley.com. For those that cannot join the webcast, you can participate by dialing 877-407-4019 (Toll Free) or 201-689-8337 (Toll) using the access code of 13748642.

For those unable to participate, a telephone replay recording will be available until Friday, November 15, 2024. To access the replay, please call 877-660-6853 (Toll Free) or 201-612-7415 (Toll) and enter confirmation code 13748642. A web-based archive of the conference call will also be available on the Company’s website.

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 Holley Inc.

Holley Performance Brands (NYSE: HLLY) is a leading designer, marketer, and manufacturer of high-performance products for car and truck enthusiasts. Holley offers a leading portfolio of iconic brands that deliver innovation and inspiration to a large and diverse community of millions of avid automotive enthusiasts who are passionate about the performance and personalization of their classic and modern cars. Holley has disrupted the performance category by putting the enthusiast consumer first, developing innovative new products, and building a robust M&A process that has added meaningful scale and diversity to its platform. For more information on Holley, visit https://www.holley.com.

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) Holley’s ability to compete effectively in our market; 3) Holley’s ability to successfully design, develop, and market new products; 4) Holley’s ability to respond to changes in vehicle ownership and type; 5) Holley’s ability to maintain and strengthen demand for our products; 6) Holley’s ability to effectively manage our growth; 7) Holley’s ability to attract new customers in a cost-effective manner; 8) Holley’s ability to expand into additional consumer markets; 9) costs related to Holley being a public company; 10) disruptions to Holley’s operations, including as a result of cybersecurity incidents; 11) changes in applicable laws or regulations; 12) the outcome of any legal proceedings that have been or may be instituted against Holley; 13) general economic and political conditions, including the current macroeconomic environment, political tensions, and war (including the conflict in Ukraine, the conflict in the Middle East, and the possible expansion of such conflicts and potential geopolitical consequences); 14) the possibility that Holley may be adversely affected by other economic, business, and/or competitive factors, including recent events affecting the financial services industry (such as the closures of certain regional banks); 15) Holley’s estimates and expectations of its financial performance and future growth prospects; 16) Holley’s ability to anticipate and manage through disruptions and higher costs in manufacturing, supply chain, logistical operations, and shortages of certain company products in distribution channels; and 17) other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (“SEC”) on March 14, 2024, and/or disclosed in any subsequent filings with the SEC. Although Holley believes the expectations reflected in the forward-looking statements are reasonable, nothing in this press release should be regarded as a representation by any person that the forward-looking statements or projections set forth herein will be achieved or that any of the contemplated results of such forward looking statements or projections will be achieved. There may be additional risks that Holley presently does not know or that Holley currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Holley undertakes no duty to update these forward-looking statements, except as otherwise required by law.

[Financial Tables to Follow]

HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
		For the thirteen weeks ended															For the thirty-nine weeks ended
		September 29,				October 1,				Variance				Variance			September 29,				October 1,				Variance				Variance
			2024				2023			($)				(%)				2024				2023			($)				(%)
Net Sales		$	134,038			$	156,530			$	(22,492	)		-14.4	%		$	462,170			$	503,997			$	(41,827	)		-8.3	%
Cost of Goods Sold			81,732				98,156				(16,424	)		-16.7	%			287,512				308,162				(20,650	)		-6.7	%
Gross Profit			52,306				58,374				(6,068	)		-10.4	%			174,658				195,835				(21,177	)		-10.8	%
Selling, General, and Administrative			30,109				28,880				1,229			4.3	%			97,675				87,998				9,677			11.0	%
Research and Development Costs			4,620				6,100				(1,480	)		-24.3	%			13,743				18,935				(5,192	)		-27.4	%
Amortization of Intangible Assets			3,436				3,687				(251	)		-6.8	%			10,307				11,040				(733	)		-6.6	%
Restructuring Costs			954				415				539			129.9	%			1,566				2,106				(540	)		-25.6	%
Write-down of assets held-for-sale			7,505				-				7,505			100.0	%			7,505				-				7,505			100.0	%
Other Operating Expense (Income)			119				(28	)			147			nm				213				508				(295	)		-58.1	%
Operating Expense			46,743				39,054				7,689			19.7	%			131,009				120,587				10,422			8.6	%
Operating Income			5,563				19,320				(13,757	)		-71.2	%			43,649				75,248				(31,599	)		-42.0	%
Change in Fair Value of Warrant Liability			(1,041	)			2,064				(3,105	)		nm				(7,570	)			5,516				(13,086	)		-237.2	%
Change in Fair Value of Earn-Out Liability			(634	)			700				(1,334	)		nm				(2,341	)			2,089				(4,430	)		-212.1	%
Loss on Early Extinguishment of Debt			—				—				-			nm				141				—				141			100.0	%
Interest Expense, Net			15,010				13,712				1,298			9.5	%			39,192				41,909				(2,717	)		-6.5	%
Non-Operating Expense			13,335				16,476				(3,141	)		-19.1	%			29,422				49,514				(20,092	)		-40.6	%
Income Before Income Taxes			(7,772	)			2,844				(10,616	)		-373.3	%			14,227				25,734				(11,507	)		-44.7	%
Income Tax Expense (Benefit)			(1,484	)			2,092				(3,576	)		nm				(320	)			7,756				(8,076	)		-104.1	%
Net Income		$	(6,288	)		$	752			$	(7,040	)		-936.2	%		$	14,547			$	17,978			$	(3,431	)		-19.1	%
Comprehensive Income:
Foreign Currency Translation Adjustment			386				(176	)			562			-319.3	%			244				(103	)			347			-336.9	%
Total Comprehensive Income		$	(5,902	)		$	576			$	(6,478	)		-1124.7	%		$	14,791			$	17,875			$	(3,084	)		-17.3	%
Common Share Data:
Basic Net Income per Share		$	(0.05	)		$	0.01			$	(0.06	)		-600.0	%		$	0.12			$	0.15			$	(0.03	)		-20.0	%
Diluted Net Income per Share		$	(0.05	)		$	0.01			$	(0.06	)		-600.0	%		$	0.12			$	0.15			$	(0.03	)		-20.0	%
Weighted Average Common Shares Outstanding - Basic			118,694				117,397				1,297			1.1	%			118,345				117,257				1,088			0.9	%
Weighted Average Common Shares Outstanding - Diluted			118,694				119,246				(552	)		-0.5	%			119,154				118,120				1,034			0.9	%
nm - not meaningful

HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
		As of
		September 29,				December 31,
			2024				2023
Assets
Cash and cash equivalents		$	50,751			$	41,081
Accounts receivable			44,492				48,360
Inventory			179,285				192,260
Prepaids and other current assets			16,332				15,665
Assets held for sale			7,696				-
Total Current Assets			298,556				297,366
Property, Plant and Equipment, Net			42,718				47,206
Goodwill			413,245				419,056
Other Intangibles, Net			398,804				410,465
Other Noncurrent Assets			30,911				29,250
Total Assets		$	1,184,234			$	1,203,343
Liabilities and Stockholders’ Equity
Accounts payable		$	52,738			$	43,692
Accrued interest			487				455
Accrued liabilities			41,164				42,129
Current portion of long-term debt			7,479				7,461
Total Current Liabilities			101,868				93,737
Long-Term Debt, Net of Current Portion			548,905				576,710
Deferred Taxes			45,008				53,542
Other Noncurrent Liabilities			29,710				38,203
Total Liabilities			725,491				762,192
Common Stock			12				12
Additional Paid-In Capital			376,670				373,869
Accumulated Other Comprehensive Loss			(466	)			(710	)
Retained Earnings			82,527				67,980
Total Stockholders’ Equity			458,743				441,151
Total Liabilities and Stockholders’ Equity		$	1,184,234			$	1,203,343

HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
		For the thirteen weeks ended								For the thirty-nine weeks ended
		September 29,				October 1,				September 29,				October 1,
			2024				2023				2024				2023
Operating Activities
Net Income		$	(6,288	)		$	752			$	14,547			$	17,978
Adjustments to Reconcile to Net Cash			12,879				15,463				26,832				29,446
Changes in Operating Assets and Liabilities			(8,339	)			6,265				1,394				9,439
Net Cash Provided by (Used in) Operating Activities			(1,748	)			22,480				42,773				56,863
Investing Activities
Capital Expenditures, Net of Dispositions			(311	)			(743	)			(2,727	)			(3,125	)
Net Cash Used in Investing Activities			(311	)			(743	)			(2,727	)			(3,125	)
Financing Activities
Net Change in Debt			(227	)			(26,365	)			(28,832	)			(40,437	)
Deferred financing fees			—				—				—				(1,427	)
Payments from Stock-Based Award Activities			(45	)			(1,061	)			(1,482	)			(1,134	)
Net Cash Used in Financing Activities			(272	)			(27,426	)			(30,314	)			(42,998	)
Effect of Foreign Currency Rate Fluctuations on Cash			2				(218	)			(62	)			(57	)
Net Change in Cash and Cash Equivalents			(2,329	)			(5,907	)			9,670				10,683
Cash and Cash Equivalents
Beginning of Period			53,080				42,740				41,081				26,150
End of Period		$	50,751			$	36,833			$	50,751			$	36,833

We present certain information with respect to EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Bank-adjusted EBITDA Leverage Ratio, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow as supplemental measures of our operating performance and believe that such non-GAAP financial measures are useful to investors in evaluating our financial performance and in comparing our financial results between periods because they exclude the impact of certain items that we do not consider indicative of our ongoing operating performance. We believe that the presentation of these non-GAAP financial measures enhances the usefulness of our financial information by presenting measures that management uses internally to establish forecasts, budgets, and operational goals to manage and monitor our business. We believe that these non-GAAP financial measures help to depict a more realistic representation of the performance of our underlying business, enabling us to evaluate and plan more effectively for the future.

EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Bank-adjusted EBITDA Leverage Ratio, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow are not prepared in accordance with generally accepted accounting principles (“GAAP”) and may be different from non-GAAP and other financial measures used by other companies. These measures should not be considered as measures of financial performance under GAAP, and the items excluded from or included in these metrics are significant components in understanding and assessing our financial performance. These metrics should not be considered as alternatives to net income, gross profit, net cash provided by operating activities, or any other performance measures, as applicable, derived in accordance with GAAP.

We define EBITDA as earnings before depreciation, amortization of intangible assets, interest expense, and income tax expense. We define Adjusted EBITDA as EBITDA adjusted to exclude, to the extent applicable, restructuring costs, which includes operational restructuring and integration activities, 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; inventory charges primarily due to product rationalization initiatives that are part of a portfolio transformation aimed at eliminating unprofitable or slow-moving SKUs; gain or loss on the early extinguishment of debt; notable items that we do not believe are reflective of our underlying operating performance, including litigation settlements and certain costs incurred for advisory services related to identifying performance initiatives; and other expenses or gains, which includes gains or losses from disposal of fixed assets, franchise taxes, and gains or losses from foreign currency transactions. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net sales.

HOLLEY INC. and SUBSIDIARIES
USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands)
(Unaudited)
		For the thirteen weeks ended								For the thirty-nine weeks ended
		September 29,				October 1,				September 29,				October 1,
			2024				2023				2024				2023
Net Income		$	(6,288	)		$	752			$	14,547			$	17,978
Adjustments:
Interest Expense, Net			15,010				13,712				39,192				41,909
Income Tax Expense (Benefit)			(1,484	)			2,092				(320	)			7,756
Depreciation			2,231				2,785				7,364				7,738
Amortization			3,436				3,687				10,307				11,040
EBITDA			12,905				23,028				71,090				86,421
Restructuring Costs			954				415				1,566				2,106
Change in Fair Value of Warrant Liability			(1,041	)			2,064				(7,570	)			5,516
Change in Fair Value of Earn-Out Liability			(634	)			700				(2,341	)			2,089
Equity-Based Compensation Expense			1,521				2,970				4,283				5,170
Write-down of Assets Held-for-Sale			7,505				-				7,505				-
Strategic Product Rationalization Charge			—				—				8,835				(800	)
Loss on Early Extinguishment of Debt			—				—				141				—
Notable Items			785				556				6,479				564
Other Expense (Income)			119				(28	)			213				508
Adjusted EBITDA		$	22,114			$	29,705			$	90,201			$	101,574
Net Sales		$	134,038			$	156,530			$	462,170			$	503,997
Net Income Margin			-4.7	%			0.5	%			3.1	%			3.6	%
Adjusted EBITDA Margin			16.5	%			19.0	%			19.5	%			20.2	%

We define the Bank-adjusted EBITDA Leverage Ratio as Net Debt divided by our Bank-adjusted EBITDA for the trailing twelve-month (“TTM”) period, as defined under our Credit Agreement entered into in November 2021, as amended, which is used in calculating covenant compliance.

		TTM September 29, 2024
Net Income		$	15,749
Adjustments:
Interest Expense, Net			58,029
Income Tax Expense (Benefit)			323
Depreciation			9,934
Amortization			13,824
EBITDA			97,859
Restructuring Costs			2,101
Change in Fair Value of Warrant Liability			(8,975	)
Change in Fair Value of Earn-Out Liability			(2,127	)
Equity-Based Compensation Expense			6,404
Write-down of Assets Held-for-Sale			7,505
Strategic Product Rationalization Charge			8,835
Gain on Early Extinguishment of Debt			(560	)
Notable Items			7,200
Other Expense			470
Adjusted EBITDA			118,712
Additional Permitted Charges			2,441
Adjusted EBITDA per Credit Agreement		$	121,153
Total Debt		$	565,126
Less: Permitted Cash and Cash Equivalents			50,000
Net Indebtedness per Credit Agreement		$	515,126
Bank-adjusted EBITDA Leverage Ratio		4.25 x

We define adjusted gross profit as gross profit excluding inventory charges primarily due to product rationalization initiatives that are part of a portfolio transformation aimed at eliminating unprofitable or slow-moving SKUs. We define Adjusted Gross Margin as Adjusted Gross Profit divided by net sales.

		For the thirteen weeks ended								For the thirty-nine weeks ended
		September 29,				October 1,				September 29,				October 1,
			2024				2023				2024				2023
Gross Profit		$	52,306			$	58,374			$	174,658			$	195,835
Adjust for: Strategic Product Rationalization Charge			—				—				8,835				(800	)
Adjusted Gross Profit		$	52,306			$	58,374			$	183,493			$	195,035
Net Sales		$	134,038			$	156,530			$	462,170			$	503,997
Gross Margin			39.0	%			37.3	%			37.8	%			38.9	%
Adjusted Gross Margin			39.0	%			37.3	%			39.7	%			38.7	%

We define Adjusted Net Income as earnings excluding the after-tax effect of changes in the fair value of the warrant liability, write-downs of assets held-for-sale, changes in the fair value of the earn-out liability, and gain or loss on the early extinguishment of debt. We define Adjusted Diluted EPS as Adjusted Net Income on a per share basis. Management uses these measures to focus on on-going operations and believes that it is useful to investors because it enables them to perform meaningful comparisons of past and present consolidated operating results. We believe that using this information, along with net income and net income per diluted share, provides for a more complete analysis of the results of operations.

		For the thirteen weeks ended								For the thirty-nine weeks ended
		September 29,				October 1,				September 29,				October 1,
			2024			2023					2024			2023
Net Income		$	(6,288	)		$	752			$	14,547			$	17,978
Special items:
Adjust for: Change in Fair Value of Warrant Liability			(1,041	)			2,064				(7,570	)			5,516
Adjust for: Change in Fair Value of Earn-Out Liability			(634	)			700				(2,341	)			2,089
Adjust for: Write-down of Assets Held-for-Sale			7,505				—				7,505				—
Adjust for: Loss on Early Extinguishment of Debt			—				—				111				—
Adjusted Net Income		$	(458	)		$	3,516			$	12,252			$	25,583

		For the thirteen weeks ended								For the thirty-nine weeks ended
		September 29,				October 1,				September 29,				October 1,
			2024			2023					2024			2023
Net Income per Diluted Share		$	(0.05	)		$	0.01			$	0.12			$	0.15
Special items:
Adjust for: Change in Fair Value of Warrant Liability			(0.01	)			0.02				(0.06	)			0.05
Adjust for: Change in Fair Value of Earn-Out Liability			(0.01	)			0.01				(0.02	)			0.02
Adjust for: Write-down of Assets Held-for-Sale			0.06				—				0.06				—
Adjust for: Loss on Early Extinguishment of Debt			—				—				—				—
Adjusted Diluted EPS		$	(0.01	)		$	0.04			$	0.10			$	0.22

We define 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 our performance and results of cash generation after making capital investments required to support ongoing business operations.

		For the thirteen weeks ended								For the thirty-nine weeks ended
		September 29,				October 1,				September 29,				October 1,
			2024				2023				2024				2023
Net Cash Provided by (Used in) Operating Activities		$	(1,748	)		$	22,480			$	42,773			$	56,863
Capital Expenditures, Net of Dispositions			(311	)			(743	)			(2,727	)			(3,125	)
Free Cash Flow		$	(2,059	)		$	21,737			$	40,046			$	53,738

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107801809/en/

Investor Relations:

Anthony Rozmus / Neel Sikka

Solebury Strategic Communications

203-428-3324

holley@soleburystrat.com



Media Relations Contacts:

Jordan Moore, jmoore@tinymightyco.com / Rachel Withers, rwithers@tinymightyco.com

Tiny Mighty Communications

615-454-2913

Source: Holley Performance Brands

FAQ

What was Holley's (HLLY) revenue decline in Q3 2024?

Holley's net sales decreased 14.4% to $134.0 million in Q3 2024 compared to $156.5 million in the same period last year.

How much did Holley (HLLY) lose per share in Q3 2024?

Holley reported a net loss of $0.05 per diluted share in Q3 2024, compared to earnings of $0.01 per diluted share in Q3 2023.

What is Holley's (HLLY) revised revenue guidance for full-year 2024?

Holley revised its full-year 2024 net sales guidance to $595-605 million.

What was Holley's (HLLY) direct-to-consumer growth in Q3 2024?

Holley's direct-to-consumer channel grew 16% year-over-year in Q3 2024.