Holley Reports Gross Profit Increase of 37% in Q4

Holley Inc., one the largest and fastest growing platforms serving performance automotive enthusiasts, has announced financial results for its fourth quarter and full year ended Dec. 31, 2021.

Fourth Quarter Highlights vs. Prior Year Period

Net Sales increased 29.9% to $179.8 million compared to $138.4 million in 2020
Gross Profit increased 37.0% to $74.7 million compared to $54.6 million last year
Net Loss of $(18.0) million, or $(0.16) per share, compared to Net Income of $2.0 million, or $0.03 per share, in fourth quarter 2020
Adjusted Net Income1 of $9.0 million, compared to Adjusted Net Income of $2.0 million reported last year
Adjusted EBITDA1 rose to $36.1 million compared to $30.4 million in 2020
Full Year 2021 Highlights vs. Prior Year Period
Net Sales increased 37.4% to $692.8 million compared to $504.2 million in 2020
Gross Profit increased 37.7% to $286.8 million compared to $208.2 million last year
Net Loss of $(27.1) million, or $(0.30) per share, compared to Net Income of $32.9 million, or $0.49 per share, in 2020
Adjusted Net Income1 of $61.8 million, compared to Adjusted Net Income of $32.9 million reported last year
Adjusted EBITDA1 rose to $169.5 million compared to $126.2 million in 2020

“Holley delivered very solid fourth quarter results, capping off what has been a milestone year for the Company,” said Tom Tomlinson, Holley’s president and CEO. “Strong consumer demand for our products continues to drive growth across our various sales channels and we look forward to driving further consumer engagement as we enter 2022.”

Fourth Quarter 2021 Financial Results

Net sales increased 29.9% to $179.8 million in the fourth quarter of 2021, up from $138.4 million in the fourth quarter of 2020. Non-comparable sales associated with acquisitions contributed $24.0 million, or 17.3% of year-over-year net sales growth in the fourth quarter. Sales excluding the impact of acquisitions increased by $17.4 million and contributed 12.6% of year-over-year growth.

Selling, general and administrative costs for the quarter increased $15.6 million to $37.7 million, representing an increase of 70.7% when compared to $22.1 million in 2020.

Incremental SG&A from recent acquisitions were responsible for $4.1 million of the increase in the quarter. Additional cost drivers include an increase in non-cash compensation expense related to equity awards, increased costs associated with operating as a public company, an increase in outbound shipping costs related to higher sales, and an increase in professional fees related to acquisitions.

Net income for the fourth quarter of 2021 was impacted by a non-cash liability increase for warrants and earn-out shares, and a loss on early extinguishment of debt. Growth in operating income was more than offset by these expenses. As a result, we recorded a net loss of $(18.0) million in the fourth quarter compared to net income of $2.0 million in 2020.

Adjusted EBITDA grew to $36.1 million in the fourth quarter compared to $30.4 million in the fourth quarter last year.

EPS of $(0.16) for the fourth quarter of 2021 compared to $0.03 in 2020.

Full Year 2021 Financial Results

Net sales increased 37.4% to $692.8 million in 2021, up from $504.2 million in 2020. Non-comparable sales associated with acquisitions contributed $116.4 million, or 23.1% of year-over-year growth. Sales excluding the impact of acquisitions increased by $72.3 million and contributed 14.3% of net sales growth in 2021.

Net income for the year was impacted by a non-cash liability increase for warrants and earn-out shares, and a loss on early extinguishment of debt. As a result, we recorded a net loss of $(27.1) million in 2021 compared to net income of $32.9 million in 2020.

Adjusted EBITDA grew to $169.5 million in 2021 compared to $126.2 million last year.

Basic EPS of $(0.30) in 2021 compared to $0.49 in 2020.

Full Year 2022 Outlook

Holley is providing the following outlook for the full-year 2022:

Net Sales in the range of $765-$790 million
Adjusted EBITDA of $186-$194 million
Capital Expenditures in the range of $14-$16 million
Depreciation and Amortization Expense of $24-$26 million
Interest Expense in the range of $30-$32 million

“We are encouraged by our performance in 2021 with strong financial results in our first year as a public company,” said Dominic Bardos, Holley’s CFO. “As we look to 2022, we believe we are positioned to achieve a good balance of organic and acquired growth while we welcome new enthusiasts to the Holley family.”