Holley Reports Q4 and Full Year 2022 Results

Holley Reports Fourth Quarter and Full Year 2022 Results

Net sales decreased 0.6% to $688.4 million in 2022 compared to $692.9 million in 2021.

Holley Inc., a platform serving performance automotive enthusiasts, has announced financial results for its fourth quarter and full year ended Dec. 31, 2022.

Full Year 2022 Highlights vs. Prior Year Period

  • Net Sales decreased 0.6% to $688.4 million in 2022 compared to $692.9 million in 2021
  • Gross Profit decreased 11.6% to $253.7 million in 2022 compared to $286.8 million in 2021
  • Net Income of $73.8 million, or $0.14 per diluted share, in 2022 compared to a Net Loss of $(27.1) million, or $(0.30) per diluted share, in 2021
  • Adjusted Net Income1 of $7.9 million, in 2022 compared to Adjusted Net Income1 of $61.8 million reported in 2021
  • Adjusted EBITDA1 of $114.7 million in 2022 compared to $169.5 million in 2021
  • Fourth Quarter Highlights vs. Prior Year Period
  • Net Sales decreased 14.3% to $154.2 million compared to $179.8 million in the prior year’s fourth quarter
  • Gross Profit decreased 36.8% to $47.3 million compared to $74.7 million in the prior year’s fourth quarter
  • Net Loss of $(15.2) million, or $(0.13) per diluted share, compared to a Net Loss of $(18.0) million, or $(0.16) per diluted share, in the prior year’s fourth quarter
  • Adjusted Net Loss1 of $(22.6) million, compared to Adjusted Net Income1 of $9.0 million reported in the prior year’s fourth quarter
  • Adjusted EBITDA1 of $15.1 million compared to $36.1 million in the prior year’s fourth quarter

“Despite ongoing supply-chain disruptions and demand normalization impacting financial results during the quarter, we remain encouraged by the underlying strength of our core enthusiast base and are confident that Holley remains a clear leader in the performance enthusiast automotive space,” said Michelle Gloeckler, Holley’s interim president and CEO. “We are intently focused on strategically aligning our cost structure, delivering strong free cash flow, and returning the Company’s growth and margin performance to historical levels.”

Key Operating Metrics and Strategic Highlights

  • Record DTC sales of $149 million in 2022, up 27% or $32 million compared to 2021
  • Holley event attendance of 106,000 individuals in 2022, an increase of 16.9% year-over-year
  • Past due orders reduced during the fourth quarter but remain elevated in our Electronics category
  • $30 million of savings in 2023 driven by operational improvements and cost initiatives to help offset cost headwinds

“2022 was a challenging year for Holley, and one that surfaced many areas of improvement for the broader organization,” said Matthew Rubel, Executive Chairman of the Board. “We are extremely focused heading into 2023, with dedicated efforts to realize additional cost savings and M&A synergy capture, prioritize key product categories and platforms, and return to operational excellence through the refinement of our organizational structure.”

“I believe that we are well positioned to take this business to the next level and that our team is highly capable of executing Holley’s strategic vision, which is to inspire and enable enthusiasts in their automotive adventures by bringing innovation, discovery, and fun to motor life,” said Gloeckler. “New products are our Company’s lifeblood, and we are positioned to capitalize on many new opportunities such as the modification of electric vehicles and electric powertrain conversions in the future. Our superior engineering capabilities and unparalleled understanding of the performance enthusiast consumer will benefit this effort and position Holley to remain a leader in the attractive growth market.”

In an effort to reduce exposure to floating interest rates, Holley entered into a costless interest rate collar that hedged $500 million in debt by capping 3-Month SOFR at 5.0%, subject to a floor on 3-Month SOFR of 2.8%, through mid-February of 2026.

Full Year 2023 Outlook

  • Holley is providing the following outlook for the full-year 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

“While 2022 results were challenged by multiple factors, the management team at Holley is committed to making the necessary changes to stabilize our Company and drive improved operating and financial performance,” said Jesse Weaver, Holley’s CFO. “Heading into 2023, we believe we are well-equipped to execute our well-defined strategy. There is incredible depth in our leadership, and we have the needed financial flexibility to align our cost structure to current market demand. Despite a normalization to pre-Covid trend growth levels, our end markets remain strong, and Holley is an unquestioned leader across key product categories. We’ve taken several steps to fully capture acquisition synergies, improve our freight strategy, and right size our operating structure. In total, we expect these efforts to deliver approximately $30 million of year-over-year cost savings in 2023, with $15 million coming from SG&A as the result of a recent reduction in force and expected synergy capture and $15 million in gross margin largely driven by improved shipping costs as the result of a recently negotiated contract with a new 3rd party logistics provider. The organization is laser-focused on restoring profitability, optimizing inventories, driving innovation, and de-leveraging our balance sheet in 2023 and beyond.”

You May Also Like

Auto Parts 4 Less Announces Investment from RB Capital

Auto Parts 4 Less announced it has completed the first tranche of funding from RB Capital Partners.

Auto Parts 4 Less Group Inc. Announces Growth Strategy

Auto Parts 4 Less announced today it has completed the first tranche of funding from RB Capital Partners, following the successful restructuring of its balance sheet, ahead of its returning to the auto parts industry.

RB Capital, under the leadership of Brett Rosen, has agreed to invest in Auto Parts 4 Less Group Inc. This collaboration is expected to provide the necessary resources for the company to achieve its strategic objectives and continue its growth trajectory, the company said.

Advance Auto Parts Reports Q4, Full Year 2023 Results

President and CEO Shane O’Kelly said Advance continues to act with a sense of urgency to “return to profitable growth.”

financial results
AutoZone Reports Q2 Results with Increases in Same Store Sales

During the quarter, AutoZone opened 19 new stores in the U.S., while adding six new stores in Mexico and four in Brazil.

Dana Inc. Reports 2023 Record Sales and Q4 Earnings

For the full-year 2023, Dana reported sales of $10.6 billion, up from $10.2 billion in 2022.

AAM Reports Q1 2024 Financial Results
LKQ Corp. Announces Q4, Full Year 2023 Results

President and CEO Dominick Zarcone expressed satisfaction with the company’s results amid macroeconomic challenges.

Other Posts

REE Automotive Reports Q1 2024 Financial Results

Penske Truck Leasing offering Powered by REE® EVs to its customers is among the financial report highlights.

REE Automotive Logo
PHINIA Reports Q1 2024 Results

U.S. GAAP net sales were $863 million, an increase of 3.4% compared with Q1 2023, according to PHINIA.

Holley Performance Names New Senior Vice President

Jordon Musser joined the company as SVP, Safety and Electronics Product categories.

Holley Performance Brands Names Senior Vice President of Safety and Electronics Product Categories
Holley Performance Brands Appoints Chet Baker SVP of Sales

Baker will lead the company’s sales team, developing and executing strategies to drive growth across Holley’s portfolio of brands.

Chet Baker Holley