Moody’s Ratings Upgrades Holley’s CFR to B2; Outlook Stable
Holley Performance Brands (NYSE: HLLY) announced that Moody's Ratings has upgraded the company's corporate family rating (CFR) to B2 from B3, with a stable outlook. The upgrade reflects Moody's expectation that Holley will maintain healthy profitability and moderate financial leverage while generating solid free cash flow over the next 12-18 months. Despite revenue headwinds expected in 2024, Holley has successfully implemented operational initiatives to improve earnings and free cash flow, which has been used to repay debt. CFO Jesse Weaver emphasized the company's progress on financial priorities, including strengthening the balance sheet and maintaining robust free cash flow. The upgrades from both Moody's and S&P affirm Holley's financial improvements, with a continued focus on decreasing debt, enhancing profitability, and generating strong free cash flow.
Holley Performance Brands (NYSE: HLLY) ha annunciato che le valutazioni di Moody's sono state aggiornate, portando il rating della famiglia aziendale (CFR) a B2 da B3, con un outlook stabile. Questo miglioramento riflette le aspettative di Moody's che Holley manterrà una profittabilità sana e un leverage finanziario moderato mentre genera un solido flusso di cassa libero nei prossimi 12-18 mesi. Nonostante le difficoltà di reddito previste per il 2024, Holley ha implementato con successo iniziative operative per migliorare gli utili e il flusso di cassa libero, che sono stati utilizzati per restituire debito. Il CFO Jesse Weaver ha sottolineato i progressi dell'azienda sulle priorità finanziarie, tra cui il rafforzamento del bilancio e il mantenimento di un robusto flusso di cassa libero. I miglioramenti sia da parte di Moody's che di S&P confermano i progressi finanziari di Holley, con un continuo focus su riduzione del debito, miglioramento della profittabilità e generazione di un forte flusso di cassa libero.
Holley Performance Brands (NYSE: HLLY) anunció que las calificaciones de Moody's han sido mejoradas, elevando la calificación de la familia corporativa (CFR) a B2 desde B3, con una perspectiva estable. Esta mejora refleja la expectativa de Moody's de que Holley mantendrá una rentabilidad saludable y un apalancamiento financiero moderado, mientras genera un sólido flujo de efectivo libre durante los próximos 12-18 meses. A pesar de los vientos en contra de los ingresos esperados en 2024, Holley ha implementado con éxito iniciativas operativas para mejorar las ganancias y el flujo de efectivo libre, que se ha utilizado para pagar deudas. El CFO Jesse Weaver enfatizó el progreso de la empresa en las prioridades financieras, como el fortalecimiento del balance y el mantenimiento de un robusto flujo de efectivo libre. Las mejoras tanto de Moody's como de S&P afirman las mejoras financieras de Holley, con un enfoque continuo en reducir la deuda, mejorar la rentabilidad y generar un fuerte flujo de efectivo libre.
Holley Performance Brands (NYSE: HLLY)는 무디스의 등급이 상향 조정되었다고 발표했다, 회사의 기업 가족 등급(CFR)을 B2에서 B3로 올리며, 안정적인 전망을 유지하고 있다. 이번 등급 상향은 Holley가 앞으로 12-18개월 동안 건전한 수익성과 적절한 재무 레버리지를 유지하면서 견고한 자유 현금 흐름을 창출할 것이라는 무디스의 기대를 반영한다. 2024년에 예상되는 수익 감소에도 불구하고, Holley는 수익과 자유 현금 흐름을 개선하기 위해 성공적으로 운영 이니셔티브를 시행하였으며, 이 자금은 부채 상환에 사용되었다. CFO 제시 위버는 기업의 재무 우선 사항, 특히 대차대조표 강화와 견고한 자유 현금 흐름 유지를 포함한 진전을 강조했다. 무디스와 S&P의 등급 개선은 Holley의 재무 개선을 확인해 주며, 부채 감소, 수익성 향상, 강력한 자유 현금 흐름 창출에 지속적으로 집중하고 있다.
Holley Performance Brands (NYSE: HLLY) a annoncé que les notes de Moody's ont été rehaussées, portant la note de la famille d'entreprises (CFR) à B2 contre B3, avec des perspectives stables. Cette augmentation reflète les attentes de Moody's selon lesquelles Holley maintiendra une rentabilité saine et un levier financier modéré, tout en générant un flux de trésorerie libre solide au cours des 12 à 18 prochains mois. Malgré les vents contraires aux revenus prévus en 2024, Holley a réussi à mettre en œuvre des initiatives opérationnelles pour améliorer les bénéfices et le flux de trésorerie libre, qui ont été utilisés pour rembourser la dette. Le CFO Jesse Weaver a souligné les progrès réalisés par l'entreprise dans ses priorités financières, notamment le renforcement de la situation financière et le maintien d'un flux de trésorerie libre robuste. Les améliorations de Moody's et de S&P confirment les avancées financières de Holley, avec un accent constant sur la réduction de la dette, l'amélioration de la rentabilité et la génération d'un fort flux de trésorerie libre.
Holley Performance Brands (NYSE: HLLY) gab bekannt, dass Moody's Ratings angehoben wurde, indem die Unternehmensfamilienbewertung (CFR) auf B2 von B3 angehoben wurde, mit einem stabilen Ausblick. Diese Aufwertung spiegelt Moodys Erwartung wider, dass Holley eine gesunde Rentabilität und moderat finanziellen Spielraum beibehalten wird, während in den nächsten 12-18 Monaten ein solider freier Cashflow generiert wird. Trotz der erwarteten Umsatzrückgänge im Jahr 2024 hat Holley erfolgreich betriebliche Initiativen umgesetzt, um die Gewinne und den freien Cashflow zu verbessern, die für die Schuldenrückzahlung verwendet wurden. CFO Jesse Weaver betonte die Fortschritte des Unternehmens bei finanziellen Prioritäten, einschließlich der Stärkung der Bilanz und der Aufrechterhaltung eines robusten freien Cashflows. Die Aufwertungen von Moody's und S&P bekräftigen die finanziellen Verbesserungen von Holley, mit einem fortgesetzten Fokus auf Schuldenabbau, Rentabilitätssteigerung und starkem freien Cashflow.
- Moody's upgraded Holley's corporate family rating to B2 from B3
- Expectation of healthy profitability and moderate financial leverage
- Solid free cash flow generation over the next 12-18 months
- Successful implementation of operational initiatives to improve earnings
- Debt repayment using improved free cash flow
- Strengthening balance sheet
- Revenue headwinds expected to persist in 2024
Insights
Moody's upgrade of Holley's credit ratings is a positive signal for the company's financial health. The improvement from B3 to B2 indicates reduced credit risk and potentially lower borrowing costs for Holley. This upgrade, coupled with a stable outlook, suggests Moody's confidence in Holley's ability to maintain profitability and manage leverage effectively.
The mention of solid free cash flow generation is particularly noteworthy for investors, as it implies Holley has financial flexibility for debt repayment, investments, or shareholder returns. However, the acknowledgment of revenue headwinds in 2024 warrants attention, indicating potential challenges in top-line growth. Investors should monitor how Holley navigates these headwinds while maintaining its improved financial position.
The automotive aftermarket sector, where Holley operates, is known for its resilience and growth potential. Moody's upgrade suggests Holley is outperforming expectations in this space. The company's ability to improve earnings and free cash flow despite revenue challenges indicates strong operational efficiency and cost management.
Investors should consider the broader implications of Holley's performance. If the company can thrive in challenging conditions, it may be well-positioned to capture market share when industry headwinds subside. The focus on debt reduction and profitability enhancement aligns with current market preferences for financial stability over aggressive growth, potentially making Holley more attractive to risk-averse investors in the current economic climate.
Moody’s highlighted that the rating upgrade and stable outlook reflect their expectation that Holley will maintain healthy profitability and moderate financial leverage while generating solid free cash flow over the next 12 – 18 months. Moody’s report states, “Despite revenue headwinds persisting in 2024, Holley has executed on operational initiatives to improve its earnings and free cash flow, which the company used to repay debt.”
"We continue to make progress on our financial priorities. Our balance sheet is continuing to get stronger and our free cash flow remains robust," stated Jesse Weaver, CFO of Holley Performance Brands. "The recent upgrades from both Moody’s and S&P affirm that the strides we’ve made financially are acknowledged by leading rating agencies. We're committed to staying the course on our strategy of decreasing debt, enhancing profitability, and generating strong free cash flow."
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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. Such forward-looking statements are subject to risks, uncertainties, and other important factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including but not limited to Holley’s ability to (1) successfully design, develop, and market new products, (2) maintain and strengthen demand for our products, (3) attract new customers in a cost-effective manner, (4) expand into additional consumer markets, and (5) and the other risks and uncertainties set forth in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the
About Holley Performance Brands
Holley Performance Brands (NYSE: HLLY) leads in the design, manufacturing and marketing of high-performance products for automotive enthusiasts. The company owns and manages a portfolio of iconic brands, catering to a diverse community of enthusiasts passionate about the customization and performance of their vehicles. Holley Performance Brands distinguishes itself through a strategic focus on four consumer vertical groupings, including Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing, ensuring a wide-ranging impact across the automotive aftermarket industry. Renowned for its innovative approach and strategic acquisitions, Holley Performance Brands is committed to enhancing the enthusiast experience and driving growth through innovation. For more information on Holley Performance Brands and its dedication to automotive excellence, visit https://www.holley.com.
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Media Relations Contact(s):
Paul Oakley, poakley@tinymightyco.com / Rachel Withers, rwithers@tinymightyco.com
Investor Relations Contacts:
Anthony Rozmus / Neel Sikka
Solebury Strategic Communications
203-428-3224
Holley@soleburystrat.com
Source: Holley Performance Brands
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