Holley Inc. has announced financial results for its first quarter ended April 2, 2023.
First Quarter Highlights vs. Prior Year Period
- Net Sales decreased 13.9% to $172.2 million compared to $200.1 million in the prior year’s first quarter
- Gross Profit decreased 18.1% to $67.7 million compared to $82.7 million in the prior year’s first quarter
- Net Income of $4.3 million, or $0.04 per diluted share, compared to Net Income of $16.9 million, or $0.15 per diluted share, in the prior year’s first quarter
- Adjusted Net Income of $6.1 million, compared to Adjusted Net Income of $21.5 million in the prior year’s first quarter
- Adjusted EBITDA1 of $33.9 million compared to $46.0 million in the prior year’s first quarter
“Holley made strong progress on its operational improvement and cost savings initiatives during the first quarter,” said Michelle Gloeckler, Holley’s interim president and CEO. “Looking to the balance of 2023, we are strategically focused on streamlining our operations, ongoing acquisition synergy capture, and improving both supply chain and working capital management. We have also not taken our foot off the gas in terms of inspiring our large and loyal base of enthusiasts with new and exciting products across our strong roster of brands, as indicated by our recent Sniper 2.0 announcement. The Sniper 2.0 launch will be an extension of one of our most popular fuel injection platforms and exemplifies Holley’s commitment to innovation and unmatched go-to-market capabilities.”
“I am confident we will continue to make Holley a much stronger company in 2023, and I still expect to achieve our targeted level of profitability, including a 40% gross margin and greater than 20% EBITDA margin in the near term,” she continued.
Full Year 2023 Outlook
Holley reaffirmed the following outlook for 2023:
- Net Sales in the range of $625-$675 million
- Adjusted EBITDA of $108-$122 million
- Capital Expenditures in the range of $10-$15 million
- Depreciation and Amortization Expense of $23-$25 million
- Interest Expense in the range of $60-$65 million
“Holley delivered significant sequential top and bottom-line improvements relative to the fourth quarter of 2022, driven primarily by a combination of sales leverage and our cost savings initiatives beginning to benefit results,” said Jesse Weaver, Holley’s CFO. “The stronger results, along with our continued focus on our financial priorities, drove positive free cash flow in the quarter. As we look to the balance of fiscal 2023, we remain fully committed to restoring Holley’s strong profitability, improving free cash flow, optimizing working capital, and de-levering the balance sheet.”
“On the back of a solid first quarter, we are reaffirming our full year 2023 guidance ranges, which assume we will face continued supply chain uncertainty, particularly a strained ability to procure automotive grade microchips, as a well as a normalization of demand for the remainder of the fiscal year. Despite these headwinds, we expect year-over-year comparisons for both revenue growth and EBITDA margins to improve throughout the year. We are confident that Holley will get back to achieving its long-term profitability targets, and we believe that our position as an industry leader with ample runway for growth is unchanged.”
