Holley Intermediate Holdings, one of the largest and fastest-growing platforms serving performance automotive enthusiasts, has announced financial results for its first quarter ended March 28, 2021.
First Quarter Highlights vs. Prior Year Period
- Net Sales increased 49.6% to $160.3 million compared to $107.2 million in 2020
- Gross Profit increased 51.6% to $65.7 million compared to $43.3 million on higher sales and margin improvement
- Net Income declined from $4.9 million to a loss of $2.1 million, inclusive of a $17 million earn-out accrual due to strong acquisition performance
- Adjusted EBITDA1 increased 77% to $43.7 million compared to $24.7 million in 2020
2021 Outlook
- Full Year 2021 Pro Forma Net Sales now expected to be between $655 and $670 million, inclusive of the April acquisition of AEM Performance Electronics and the continuing strength of underlying sales performance
- Full Year 2021 Pro Forma Adjusted EBITDA now expected to be between $165 and $170 million
Tom Tomlinson, Holley’s president and CEO, said, “Holley delivered another fantastic quarter of both organic and acquired growth. I want to thank all of our associates for their unwavering dedication to Holley and our enthusiast consumers. Our employees did an exemplary job of serving our consumers, enabling us to maintain the sales momentum we built in 2020. The success we achieved includes contributions from our newest team members at Detroit Speed, Simpson, and Drake, businesses we acquired in 2020. While sales in both our direct-to-consumer and reseller channels were higher, I’m particularly pleased with our organic direct-to-consumer sales growth of 44% in the first quarter. I’m optimistic about the opportunities we have to deliver enhanced capabilities and establish even stronger consumer relationships through this critical channel in the coming quarters.”
Significant Event Subsequent to Quarter End
On April 14, 2021, Holley acquired the assets of AEM Performance Electronics for $52 million. This acquisition is expected to contribute $26 million of pro forma net sales in 2021, $7.4 million of which was pre-acquisition this fiscal year.
Fiscal 2021 Full Year Outlook
The company’s full-year pro forma net sales and pro forma adjusted EBITDA targets, previously communicated in investor materials associated with the impending SPAC transaction, have now been increased to reflect the acquisition of AEM Performance Electronics (April 2021) and the continuing strength in our underlying sales performance. We now expect full-year pro forma net sales in the range of $655 to $670 million compared to the $624 million previously communicated. Holley expects pro forma adjusted EBITDA in the range of $165 to $170 million, up from our original $159 million target.
