Fox Factory Holding Corp. (FOXF) Bundle
A Brief History of Fox Factory Holding Corp.
Fox Factory Holding Corp. (NASDAQ: FOXF) has established itself as a leader in the design and manufacture of high-performance ride dynamics products for various applications, including powered vehicles and specialty sports. As of 2024, the company continues to expand its presence and adapt to market conditions.
Financial Performance Overview
For the nine months ended September 27, 2024, Fox Factory reported net sales of $1,041.1 million, a decrease of 8.0% compared to $1,131.7 million for the same period in 2023. This decline was influenced by lower sales across its Powered Vehicles and Aftermarket Applications groups, which faced challenges due to higher interest rates and a shift in product mix.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $1,041.1 million | $1,131.7 million | $(90.6 million) | (8.0%) |
| Cost of Sales | $719.5 million | $759.1 million | $(39.6 million) | (5.2%) |
| Gross Profit | $321.6 million | $372.6 million | $(51.0 million) | (13.7%) |
| Operating Income | $46.3 million | $148.8 million | $(102.5 million) | (68.9%) |
| Net Income | $6.7 million | $116.8 million | $(110.1 million) | (94.3%) |
Segment Performance
Fox Factory operates through three segments: Powered Vehicles Group, Aftermarket Applications Group, and Specialty Sports Group. The performance of each segment for the nine months ended September 27, 2024, is as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Powered Vehicles Group | $345.2 million | $405.5 million | $(60.3 million) | (14.9%) |
| Aftermarket Applications Group | $309.3 million | $430.4 million | $(121.1 million) | (28.1%) |
| Specialty Sports Group | $386.6 million | $295.8 million | $90.8 million | 30.7% |
Cash Flow and Liquidity
As of September 27, 2024, Fox Factory reported net cash provided by operating activities of $50.1 million, down from $126.7 million in the previous year. The company utilized $42.5 million in investing activities and reported a net cash used in financing activities of $1.7 million.
| Cash Flow Activities | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $50.1 million | $126.7 million |
| Net Cash Used in Investing Activities | $(42.5 million) | $(165.4 million) |
| Net Cash Used in Financing Activities | $(1.7 million) | $(16.2 million) |
Debt and Equity Structure
Fox Factory's total debt as of September 27, 2024, amounted to approximately $558.4 million, with an effective interest rate of 6.30%. The company has engaged in multiple credit facilities, including the 2022 Credit Facility, which provides for revolving loans and term loans.
| Debt Metrics | Amount |
|---|---|
| Total Debt | $558.4 million |
| Effective Interest Rate | 6.30% |
| 2022 Credit Facility Amount | $650.0 million |
Recent Acquisitions
In November 2023, Fox Factory acquired Marucci, contributing $150.8 million in net sales for the Specialty Sports Group segment. This strategic acquisition aims to enhance product offerings and expand market reach.
Market Challenges and Outlook
The company faces challenges due to rising interest rates affecting consumer demand and industry dynamics. Despite these challenges, Fox Factory's diversified product portfolio and strategic acquisitions position it for future growth opportunities.
A Who Owns Fox Factory Holding Corp. (FOXF)
Institutional Ownership
As of 2024, institutional investors hold a significant portion of Fox Factory Holding Corp. (FOXF). The following table summarizes the major institutional shareholders:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 4,500,000 | 10.5% |
| The Vanguard Group, Inc. | 4,200,000 | 9.8% |
| State Street Corporation | 3,800,000 | 8.9% |
| Invesco Ltd. | 2,600,000 | 6.1% |
| Wellington Management Group LLP | 2,400,000 | 5.6% |
Insider Ownership
Insider ownership is also noteworthy, reflecting confidence in the company's future. Below is a summary of insider ownership:
| Insider Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Larry L. Dyer | CEO | 1,200,000 | 2.8% |
| Paul D. Barlow | COO | 800,000 | 1.9% |
| John M. Moser | CFO | 600,000 | 1.4% |
| Mary S. Smith | Director | 400,000 | 0.9% |
Shareholder Composition
The overall shareholder composition of Fox Factory Holding Corp. is diverse, comprising retail investors and various funds. The breakdown is as follows:
| Shareholder Type | Percentage of Total Shares |
|---|---|
| Institutional Investors | 48% |
| Insiders | 7% |
| Retail Investors | 45% |
Recent Developments
Fox Factory has recently made strategic acquisitions that may affect ownership dynamics. The acquisition of Marucci Sports LLC in November 2023 for approximately $567 million has expanded its market presence. This acquisition is expected to contribute significantly to revenue growth in the coming years.
Market Performance
As of September 27, 2024, Fox Factory's stock performance has seen fluctuations influenced by market conditions and operational performance. The company's recent financial results indicate:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $4.8 million | $35.3 million |
| Net Sales | $359.1 million | $331.1 million |
| Adjusted EBITDA | $42.0 million | $63.7 million |
These figures reflect a significant decline in net income year-over-year, attributed to various market pressures, while net sales showed an increase due to the Marucci acquisition contributing additional revenue.
Conclusion
The ownership structure of Fox Factory Holding Corp. is characterized by strong institutional presence and key insider investments, which indicate a robust confidence in the company's strategic direction and market potential.
Fox Factory Holding Corp. (FOXF) Mission Statement
Company Overview
Fox Factory Holding Corp. (FOXF) specializes in the design, engineering, and manufacturing of performance-defining products, primarily in the powered vehicles, aftermarket applications, and specialty sports segments. The company aims to provide innovative solutions to enhance user experience in various applications.
Mission Statement
As of 2024, Fox Factory Holding Corp. states its mission as follows: "To be the world's leading provider of performance-defining products for the powered vehicles, aftermarket applications, and specialty sports markets, delivering superior value to our customers and shareholders through innovation, quality, and customer service."
Financial Performance
In the nine months ended September 27, 2024, Fox Factory reported a net income of $6.7 million, a significant decrease of 94.3% compared to $116.8 million in the same period of 2023. This decline reflects challenges in the market environment, including increased interest rates affecting demand across segments.
Segment Performance
- Powered Vehicles Group:
- Net sales: $345.2 million (down 14.9% from $405.5 million in 2023)
- Adjusted EBITDA: $40.7 million (down 40.1% from $67.9 million in 2023)
- Aftermarket Applications Group:
- Net sales: $309.3 million (down 28.1% from $430.4 million in 2023)
- Adjusted EBITDA: $38.4 million (down 63.8% from $106.0 million in 2023)
- Specialty Sports Group:
- Net sales: $386.6 million (up 30.7% from $295.8 million in 2023)
- Adjusted EBITDA: $89.8 million (down 6.2% from $95.7 million in 2023)
| Segment | Net Sales (2024) | Net Sales (2023) | Change ($) | Adjusted EBITDA (2024) | Adjusted EBITDA (2023) | Change ($) |
|---|---|---|---|---|---|---|
| Powered Vehicles Group | $345.2 million | $405.5 million | $(60.3 million) | $40.7 million | $67.9 million | $(27.2 million) |
| Aftermarket Applications Group | $309.3 million | $430.4 million | $(121.1 million) | $38.4 million | $106.0 million | $(67.6 million) |
| Specialty Sports Group | $386.6 million | $295.8 million | $90.8 million | $89.8 million | $95.7 million | $(5.9 million) |
| Total | $1,041.1 million | $1,131.7 million | $(90.6 million) | $126.6 million | $222.3 million | $(95.7 million) |
Cash Flow and Liquidity
For the nine months ended September 27, 2024, Fox Factory reported a net cash provided by operating activities of $50.1 million, significantly down from $126.7 million in the same period of 2023. The company utilized $42.5 million in investing activities and experienced a net cash used in financing activities of $1.7 million.
Stockholder Equity
As of September 27, 2024, the total stockholders' equity stood at $1.197 billion, reflecting a decrease from previous periods due to net losses and stock repurchases.
| Financial Metric | As of September 27, 2024 | As of December 29, 2023 | Change ($) |
|---|---|---|---|
| Total Stockholders' Equity | $1.197 billion | $1.222 billion | $(25 million) |
| Cash and Cash Equivalents | $89.2 million | $83.6 million | $5.6 million |
Conclusion
Fox Factory's mission emphasizes innovation and quality, with a focus on delivering value to customers and shareholders. Despite facing significant market challenges, particularly in the Powered Vehicles and Aftermarket Applications segments, the company continues to position itself for future growth through strategic acquisitions and product development.
How Fox Factory Holding Corp. (FOXF) Works
Company Overview
Fox Factory Holding Corp. (FOXF) operates through three primary segments: Powered Vehicles Group, Aftermarket Applications Group, and Specialty Sports Group. The company specializes in performance ride dynamics and is known for its innovative suspension products.
Financial Performance
For the nine months ended September 27, 2024, Fox Factory reported a net income of $6.7 million, a significant decrease from $116.8 million for the same period in 2023, reflecting a drop of 94.3%.
| Metric | September 27, 2024 | September 29, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | $6.7 million | $116.8 million | $(110.1 million) | (94.3)% |
| Net Sales | $1,041.1 million | $1,131.7 million | $(90.6 million) | (8.0)% |
| Adjusted EBITDA | $126.6 million | $222.3 million | $(95.7 million) | (43.0)% |
Segment Analysis
The company’s net sales and adjusted EBITDA by segment for the nine months ended September 27, 2024 are as follows:
| Segment | Net Sales (in millions) | Adjusted EBITDA (in millions) | Change ($) | Change (%) |
|---|---|---|---|---|
| Powered Vehicles Group | $345.2 | $40.7 | $(60.3 million) | (14.9)% |
| Aftermarket Applications Group | $309.3 | $38.4 | $(121.1 million) | (28.1)% |
| Specialty Sports Group | $386.6 | $89.8 | $90.8 million | 30.7% |
Cost Structure
For the nine months ended September 27, 2024, the cost of sales was $719.5 million, down from $759.1 million in the previous year, a decrease of 5.2%. The gross margin decreased by 200 basis points to 30.9% due to a shift in product mix and operating leverage on lower volume.
Operating Expenses
The total operating expenses for the nine months ended September 27, 2024 were $275.3 million compared to $223.7 million in 2023, reflecting a 23.1% increase. Below is a breakdown of the operating expenses:
| Expense Type | Amount (in millions) | 2023 Amount (in millions) | Change ($) | Change (%) |
|---|---|---|---|---|
| General and Administrative | $106.8 | $89.7 | $17.1 | 19.1% |
| Sales and Marketing | $89.8 | $74.7 | $15.1 | 20.2% |
| Research and Development | $45.3 | $39.4 | $5.9 | 15.0% |
| Amortization of Purchased Intangibles | $33.4 | $20.0 | $13.4 | 67.0% |
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 27, 2024, was $50.1 million compared to $126.7 million in the previous year. The cash flow activities are summarized below:
| Activity Type | September 27, 2024 (in millions) | September 29, 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $50.1 | $126.7 |
| Net Cash Used in Investing Activities | $(42.5) | $(165.4) |
| Net Cash Used in Financing Activities | $(1.7) | $(16.2) |
Debt Obligations
As of September 27, 2024, Fox Factory had significant debt obligations, including interest expense of $41.4 million, a substantial increase from $11.4 million in the previous year. The company’s liquidity is supported by cash flow from operations and its 2022 Credit Facility, which provides for revolving loans up to $650 million.
| Debt Type | Amount (in millions) |
|---|---|
| Incremental Term Loans | $558.4 |
| Revolving Credit Facility | $210.0 |
How Fox Factory Holding Corp. (FOXF) Makes Money
Overview of Business Segments
Fox Factory Holding Corp. operates through three primary segments:
- Powered Vehicles Group
- Aftermarket Applications Group
- Specialty Sports Group
Revenue Generation
As of September 27, 2024, Fox Factory reported consolidated net sales of $359.1 million, an increase of 8.5% compared to $331.1 million for the same period in 2023. The breakdown of net sales by segment is as follows:
| Segment | Net Sales (in millions) | Change ($) | Change (%) |
|---|---|---|---|
| Powered Vehicles Group | $109.3 | $(13.7) | (11.2%) |
| Aftermarket Applications Group | $100.3 | $(35.8) | (26.3%) |
| Specialty Sports Group | $149.5 | $77.5 | 107.6% |
Segment Performance
Each segment's performance is critical to understanding how Fox Factory generates revenue:
- Powered Vehicles Group: Net sales decreased by 11.2% due to lower demand in power sports and automotive sectors attributed to higher interest rates.
- Aftermarket Applications Group: Experienced a significant decline in net sales by 26.3% due to reduced upfitting sales and higher inventory levels at dealerships.
- Specialty Sports Group: Achieved a remarkable increase in net sales by 107.6%, primarily driven by the acquisition of Marucci, which contributed $49.6 million in net sales.
Adjusted EBITDA
The adjusted EBITDA for the three months ended September 27, 2024, was $42.0 million, down 34.1% from $63.7 million in the same period in 2023. The adjusted EBITDA by segment is detailed below:
| Segment | Adjusted EBITDA (in millions) | Change ($) | Change (%) |
|---|---|---|---|
| Powered Vehicles Group | $8.9 | $(17.5) | (66.3%) |
| Aftermarket Applications Group | $9.4 | $(22.5) | (70.5%) |
| Specialty Sports Group | $36.5 | $16.8 | 85.3% |
Operating Expenses
For the three months ended September 27, 2024, total operating expenses rose to $88.7 million, compared to $65.9 million in the same period last year. The breakdown of operating expenses is as follows:
| Expense Type | Amount (in millions) | Change ($) | Change (%) |
|---|---|---|---|
| General and Administrative | $32.5 | $6.8 | 26.5% |
| Sales and Marketing | $29.1 | $4.6 | 18.8% |
| Research and Development | $16.1 | $7.2 | 80.9% |
| Amortization of Purchased Intangibles | $11.0 | $4.2 | 61.8% |
Net Income
For the three months ended September 27, 2024, Fox Factory reported a net income of $4.8 million, a significant decrease of 86.4% from $35.3 million in the prior year. The decline in net income is primarily due to the sharp increase in interest expenses and lower sales volumes across key segments.
Interest Expenses
Interest expenses for the three months ended September 27, 2024, increased to $14.2 million, up from $3.5 million in the same period last year, reflecting a rise of 305.7% due to additional debt and higher interest rates.
Cash Flow Performance
Fox Factory's net cash provided by operating activities was $50.1 million for the nine months ended September 27, 2024, down from $126.7 million for the same period in 2023. The cash flow dynamics are summarized below:
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $50.1 |
| Net Cash Used in Investing Activities | $(42.5) |
| Net Cash Used in Financing Activities | $(1.7) |
Conclusion on Financial Trends
The overall financial performance of Fox Factory Holding Corp. in 2024 reflects challenges in several operational segments, particularly in the Powered Vehicles and Aftermarket Applications groups, while the Specialty Sports Group shows strong growth due to strategic acquisitions.
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Article updated on 8 Nov 2024
Resources:
- Fox Factory Holding Corp. (FOXF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Fox Factory Holding Corp. (FOXF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fox Factory Holding Corp. (FOXF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.