HLLY Holley Inc

Delivered first quarter net sales of $158.6 million Paid down $15 million of debt and improved free cash flow generation by $15m, year-over year Reiterates full year 2024 outlook and provides Q2 outlook

Holley Performance Brands (NYSE: HLLY), a leader in automotive aftermarket performance solutions, today announced financial results for its first quarter ended March 31, 2024.

First Quarter Highlights vs. Prior Year Period

• Net Sales decreased 7.9% to $158.6 million compared to $172.2 million last year
• Net Income was $3.7 million, or $0.03 per diluted share, compared to $4.2 million, or $0.04 per diluted share, last year
• Adjusted Net Income1 was $0.1 million compared to $6.1 million last year
• Adjusted EBITDA1 was $30.7 million compared to $33.9 million last year
• Net Cash Provided by Operating Activities was $18.8 million compared to $3.6 million last year
• Free Cash Flow1 was $17.7 million compared to $3.0 million last year

1See “Use and Reconciliation of Non-GAAP Financial Measures” below.

"The organizational transformation at Holley is well underway. In the first few months of 2024, we made a number of key hires onboarding new talent focused on Holley’s sales, marketing, and product strategy that will, ultimately, drive the organic growth engine in the future,” said Matthew Stevenson, President, and Chief Executive Officer of Holley. The strategic groundwork we are establishing is poised to cultivate long-term sustainable growth, supported by a team of dedicated professionals who possess a deep passion and unparalleled expertise in sales, product innovation, and marketing. This team is set to elevate Holley to unprecedented heights. Furthermore, in the first quarter, we initiated a strategic rebranding to Holley Performance Brands, a move designed to broaden Holley's impact and fortify our footprint within the high-performance automotive industry.

Key Operating Metrics and Strategic Highlights

• Improving inventory turns with 1-time transformative rationalization of ~12,000 in non-performing finished good SKUs
• $3.7 million of savings from freight related cost reduction initiatives
• Completed additional $15 million in early debt paydown against the Company’s first lien term loan facility in Q1
• Holley’s bank-adjusted EBITDA leverage ratio at quarter end of 4.16x was well below the amended covenant ceiling of 5.75x for Q1 of 2024 and below the original covenant level of 5.0x
• Announced shift to Holley Performance Brands to accelerate growth

Stevenson continued, "The outlook for Holley is extremely bright, yet the immediate macroeconomic environment faces challenges due to softening consumer demand and continued inflation. Our focus is on steering the elements within our control, preparing the organization for growth, and the eventual resurgence of consumer health. We've made considerable strides in several key areas, including expanding our distributor relationships, enhancing cost efficiency, and actively managing supply chain dynamics.”

Holley's CFO, Jesse Weaver, added, "We continue to make headway on our financial priorities. Of note, our focus on SKU management was evident in the first quarter demonstrated by the rationalization of underperforming SKUs. Additionally, we executed upon our disciplined inventory and past dues strategy with inventory turns growing and further reduction in past due orders, respectively. We also paid down an additional $15 million of debt in March which enhances our financial flexibility as we remain focused on delivering strong cash flow and using proceeds to reduce leverage. While we still view consumer demand to be muted in the near-term, the overall strength in the automotive performance enthusiast aftermarket coupled with our internal efforts position Holley well for growth and increased profitability in the second half of the year.”

Outlook

Holley is providing the following outlook for the second quarter and full-year 2024:

Metric

Second Quarter 2024 Outlook

Full Year 2024 Outlook

Net Sales

$165 - $175 million

$640 - $680 million

Adjusted EBITDA *

$34 - $40 million

$125 - $145 million

Capital Expenditures

 

$8 - $12 million

Depreciation and Amortization Expense

 

$24 - $26 million

Interest Expense

 

$50 - $55 million

Bank-adjusted EBITDA Leverage Ratio *

 

4.0x - 3.5x

* Holley is not providing reconciliations of forward-looking second quarter 2024 and full year 2024 Adjusted EBITDA outlook and full year 2024 Bank-adjusted EBITDA Leverage Ratio outlook because certain information necessary to calculate the most comparable GAAP measure, net income, is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of certain items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, Holley is unable to provide these forward-looking reconciliations without unreasonable effort. Accordingly, Holley is relying on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K to exclude these reconciliations.

Holley notes that its outlook for the second quarter and fully-year 2024 may vary due to changes in assumptions or market conditions and other factors described below under “Forward-Looking Statements.”

Conference Call A conference call and audio webcast has been scheduled for 8:30 a.m. Eastern Time today to discuss these results. Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call available on the investor relations portion of the Company’s website at investor.holley.com. For those that cannot join the webcast, you can participate by dialing 877-407-4019 (Toll Free) or 201-689-8337 (Toll) using the access code of 13745847.

For those unable to participate, a telephone replay recording will be available until Wednesday, May 15, 2024. To access the replay, please call 877-660-6853 (Toll Free) or 201-612-7415 (Toll) and enter confirmation code 13745847. A web-based archive of the conference call will also be available on the Company’s website.

Additional Financial Information The Investor Relations page of Holley’s website, investor.holley.com contains a significant amount of financial information about Holley, including our earnings presentation, which can be found under Events & Presentations. Holley encourages investors to visit this website regularly, as information is updated, and new information is posted.

About Holley Inc. Holley Performance Brands (NYSE: HLLY) is a leading designer, marketer, and manufacturer of high-performance products for car and truck enthusiasts. Holley offers a leading portfolio of iconic brands that deliver innovation and inspiration to a large and diverse community of millions of avid automotive enthusiasts who are passionate about the performance and personalization of their classic and modern cars. Holley has disrupted the performance category by putting the enthusiast consumer first, developing innovative new products, and building a robust M&A process that has added meaningful scale and diversity to its platform. For more information on Holley, visit https://www.holley.com.

Forward-Looking Statements Certain statements in this press release may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Holley’s future financial or operating performance. For example, projections of future revenue and adjusted EBITDA and other metrics, along with statements regarding the impact of organizational changes, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “or” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Holley and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: 1) the ability of Holley to grow and manage growth profitably which may be affected by, among other things, competition; to maintain relationships with customers and suppliers; and to retain its management and key employees; 2) Holley’s ability to compete effectively in our market; 3) Holley’s ability to successfully design, develop, and market new products; 4) Holley’s ability to respond to changes in vehicle ownership and type; 5) Holley’s ability to maintain and strengthen demand for our products; 6) Holley’s ability to effectively manage our growth; 7) Holley’s ability to attract new customers in a cost-effective manner; 8) Holley’s ability to expand into additional consumer markets; 9) costs related to Holley being a public company; 10) disruptions to Holley’s operations, including as a result of cybersecurity incidents; 11) changes in applicable laws or regulations; 12) the outcome of any legal proceedings that have been or may be instituted against Holley; 13) general economic and political conditions, including the current macroeconomic environment, political tensions, and war (including the conflict in Ukraine, the conflict in the Middle East, and the possible expansion of such conflicts and potential geopolitical consequences); 14) the possibility that Holley may be adversely affected by other economic, business, and/or competitive factors, including recent events affecting the financial services industry (such as the closures of certain regional banks); 15) Holley’s estimates and expectations of its financial performance and future growth prospects; 16) Holley’s ability to anticipate and manage through disruptions and higher costs in manufacturing, supply chain, logistical operations, and shortages of certain company products in distribution channels; and 17) other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (“SEC”) on March 14, 2024, and/or disclosed in any subsequent filings with the SEC. Although Holley believes the expectations reflected in the forward-looking statements are reasonable, nothing in this press release should be regarded as a representation by any person that the forward-looking statements or projections set forth herein will be achieved or that any of the contemplated results of such forward looking statements or projections will be achieved. There may be additional risks that Holley presently does not know or that Holley currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Holley undertakes no duty to update these forward-looking statements, except as otherwise required by law.

[Financial Tables to Follow]

HOLLEY INC. and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

 

 

For the thirteen weeks ended

 

 

 

March 31,

 

 

April 2,

 

 

Variance

 

 

Variance

 

 

 

2024

 

 

2023

 

 

($)

 

 

(%)

 

Net Sales

 

$

158,636

 

 

$

172,205

 

 

$

(13,569

)

 

 

-7.9

%

Cost of Goods Sold

 

 

106,577

 

 

 

104,492

 

 

 

2,085

 

 

 

2.0

%

Gross Profit

 

 

52,059

 

 

 

67,713

 

 

 

(15,654

)

 

 

-23.1

%

Selling, General, and Administrative

 

 

32,996

 

 

 

30,017

 

 

 

2,979

 

 

 

9.9

%

Research and Development Costs

 

 

4,812

 

 

 

6,653

 

 

 

(1,841

)

 

 

-27.7

%

Amortization of Intangible Assets

 

 

3,436

 

 

 

3,679

 

 

 

(243

)

 

 

-6.6

%

Restructuring Costs

 

 

615

 

 

 

1,339

 

 

 

(724

)

 

 

-54.1

%

Other Operating Expense (Income)

 

 

(8

)

 

 

51

 

 

 

(59

)

 

 

nm

 

Operating Expense

 

 

41,851

 

 

 

41,739

 

 

 

112

 

 

 

0.3

%

Operating Income

 

 

10,208

 

 

 

25,974

 

 

 

(15,766

)

 

 

-60.7

%

Change in Fair Value of Warrant Liability

 

 

(3,127

)

 

 

1,435

 

 

 

(4,562

)

 

 

nm

 

Change in Fair Value of Earn-Out Liability

 

 

(649

)

 

 

428

 

 

 

(1,077

)

 

 

nm

 

Loss on Early Extinguishment of Debt

 

 

141

 

 

 

—

 

 

 

141

 

 

 

nm

 

Interest Expense, Net

 

 

11,004

 

 

 

18,298

 

 

 

(7,294

)

 

 

-39.9

%

Non-Operating Expense

 

 

7,369

 

 

 

20,161

 

 

 

(12,792

)

 

 

-63.4

%

Income Before Income Taxes

 

 

2,839

 

 

 

5,813

 

 

 

(2,974

)

 

 

-51.2

%

Income Tax Expense (Benefit)

 

 

(891

)

 

 

1,566

 

 

 

(2,457

)

 

 

nm

 

Net Income

 

$

3,730

 

 

$

4,247

 

 

$

(517

)

 

 

-12.2

%

Comprehensive Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Currency Translation Adjustment

 

 

(186

)

 

 

(199

)

 

 

13

 

 

 

-6.5

%

Total Comprehensive Income

 

$

3,544

 

 

$

4,048

 

 

$

(504

)

 

 

-12.5

%

Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Net Income per Share

 

$

0.03

 

 

$

0.04

 

 

$

(0.01

)

 

 

-25.0

%

Diluted Net Income per Share

 

$

0.03

 

 

$

0.04

 

 

$

(0.01

)

 

 

-25.0

%

Weighted Average Common Shares Outstanding - Basic

 

 

117,872

 

 

 

117,154

 

 

 

718

 

 

 

0.6

%

Weighted Average Common Shares Outstanding - Diluted

 

 

119,505

 

 

 

117,245

 

 

 

2,260

 

 

 

1.9

%

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOLLEY INC. and SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands)

(Unaudited)

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

41,127

 

 

$

41,081

 

Accounts receivable

 

 

48,721

 

 

 

48,360

 

Inventory

 

 

184,016

 

 

 

192,260

 

Prepaids and other current assets

 

 

15,944

 

 

 

15,665

 

Total Current Assets

 

 

289,808

 

 

 

297,366

 

Property, Plant and Equipment, Net

 

 

46,376

 

 

 

47,206

 

Goodwill

 

 

419,056

 

 

 

419,056

 

Other Intangibles, Net

 

 

406,896

 

 

 

410,465

 

Other Noncurrent Assets

 

 

29,598

 

 

 

29,250

 

Total Assets

 

$

1,191,734

 

 

$

1,203,343

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Accounts payable

 

$

50,258

 

 

$

43,692

 

Accrued interest

 

 

442

 

 

 

455

 

Accrued liabilities

 

 

43,580

 

 

 

42,129

 

Current portion of long-term debt

 

 

7,444

 

 

 

7,461

 

Total Current Liabilities

 

 

101,724

 

 

 

93,737

 

Long-Term Debt, Net of Current Portion

 

 

560,112

 

 

 

576,710

 

Deferred Taxes

 

 

51,631

 

 

 

53,542

 

Other Noncurrent Liabilities

 

 

33,352

 

 

 

38,203

 

Total Liabilities

 

 

746,819

 

 

 

762,192

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

12

 

 

 

12

 

Additional Paid-In Capital

 

 

374,089

 

 

 

373,869

 

Accumulated Other Comprehensive Loss

 

 

(896

)

 

 

(710

)

Retained Earnings

 

 

71,710

 

 

 

67,980

 

Total Stockholders’ Equity

 

 

444,915

 

 

 

441,151

 

Total Liabilities and Stockholders’ Equity

 

$

1,191,734

 

 

$

1,203,343

 

HOLLEY INC. and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

For the thirteen weeks ended

 

 

 

March 31,

 

 

April 2,

 

 

 

2024

 

 

2023

 

Operating Activities

 

 

 

 

 

 

 

 

Net Income

 

$

3,730

 

 

$

4,247

 

Adjustments to Reconcile to Net Cash

 

 

10,971

 

 

 

13,874

 

Changes in Operating Assets and Liabilities

 

 

4,142

 

 

 

(14,482

)

Net Cash Provided by Operating Activities

 

 

18,843

 

 

 

3,639

 

 

 

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

 

 

Capital Expenditures, Net of Dispositions

 

 

(1,091

)

 

 

(683

)

Net Cash Provided by (Used in) Investing Activities

 

 

(1,091

)

 

 

(683

)

 

 

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

 

 

Net Change in Debt

 

 

(16,748

)

 

 

(7,284

)

Deferred financing fees

 

 

—

 

 

 

(1,117

)

Payments from Stock-Based Award Activities

 

 

(921

)

 

 

(34

)

Net Cash Provided by (Used in) Financing Activities

 

 

(17,669

)

 

 

(8,435

)

 

 

 

 

 

 

 

 

 

Effect of Foreign Currency Rate Fluctuations on Cash

 

 

(37

)

 

 

145

 

 

 

 

 

 

 

 

 

 

Net Change in Cash and Cash Equivalents

 

 

46

 

 

 

(5,334

)

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

 

 

 

 

 

 

 

Beginning of Period

 

 

41,081

 

 

 

26,150

 

End of Period

 

$

41,127

 

 

$

20,816

 

We present certain information with respect to EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Bank-adjusted EBITDA Leverage Ratio, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow as supplemental measures of our operating performance and believe that such non-GAAP financial measures are useful to investors in evaluating our financial performance and in comparing our financial results between periods because they exclude the impact of certain items that we do not consider indicative of our ongoing operating performance. We believe that the presentation of these non-GAAP financial measures enhances the usefulness of our financial information by presenting measures that management uses internally to establish forecasts, budgets, and operational goals to manage and monitor our business. We believe that these non-GAAP financial measures help to depict a more realistic representation of the performance of our underlying business, enabling us to evaluate and plan more effectively for the future.

EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Bank-adjusted EBITDA Leverage Ratio, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow are not prepared in accordance with generally accepted accounting principles (“GAAP”) and may be different from non-GAAP and other financial measures used by other companies. These measures should not be considered as measures of financial performance under GAAP, and the items excluded from or included in these metrics are significant components in understanding and assessing our financial performance. These metrics should not be considered as alternatives to net income, gross profit, net cash provided by operating activities, or any other performance measures, as applicable, derived in accordance with GAAP.

We define EBITDA as earnings before depreciation, amortization of intangible assets, interest expense, and income tax expense. We define Adjusted EBITDA as EBITDA adjusted to exclude, to the extent applicable, restructuring costs, which includes operational restructuring and integration activities, termination related benefits, facilities relocation, and executive transition costs; changes in the fair value of the warrant liability; changes in the fair value of the earn-out liability; equity-based compensation expense; inventory charges primarily due to product rationalization initiatives that are part of a portfolio transformation aimed at eliminating unprofitable or slow-moving SKUs; gain or loss on the early extinguishment of debt; notable items that we do not believe are reflective of our underlying operating performance, including litigation settlements and certain costs incurred for advisory services related to identifying performance initiatives; and other expenses or gains, which includes gains or losses from disposal of fixed assets, franchise taxes, and gains or losses from foreign currency transactions. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net sales.

HOLLEY INC. and SUBSIDIARIES

USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(In thousands)

(Unaudited)

 

 

For the thirteen weeks ended

 

 

 

March 31,

 

 

April 2,

 

 

 

2024

 

 

2023

 

Net Income

 

$

3,730

 

 

$

4,247

 

Adjustments:

 

 

 

 

 

 

 

 

Interest Expense, Net

 

 

11,004

 

 

 

18,298

 

Income Tax Expense (Benefit)

 

 

(891

)

 

 

1,566

 

Depreciation

 

 

2,464

 

 

 

2,485

 

Amortization

 

 

3,436

 

 

 

3,679

 

EBITDA

 

 

19,743

 

 

 

30,275

 

Restructuring Costs

 

 

615

 

 

 

1,339

 

Change in Fair Value of Warrant Liability

 

 

(3,127

)

 

 

1,435

 

Change in Fair Value of Earn-Out Liability

 

 

(649

)

 

 

428

 

Equity-Based Compensation Expense

 

 

1,141

 

 

 

394

 

Inventory Charges

 

 

9,713

 

 

 

—

 

Loss on Early Extinguishment of Debt

 

 

141

 

 

 

—

 

Notable Items

 

 

3,100

 

 

 

24

 

Other Expense (Income)

 

 

(8

)

 

 

51

 

Adjusted EBITDA

 

$

30,669

 

 

$

33,946

 

Net Sales

 

$

158,636

 

 

$

172,205

 

Net Income Margin

 

 

2.4

%

 

 

2.5

%

Adjusted EBITDA Margin

 

 

19.3

%

 

 

19.7

%

We define the Bank-adjusted EBITDA Leverage Ratio as Net Debt divided by our Bank-adjusted EBITDA for the trailing twelve-month (“TTM”) period, as defined under our Credit Agreement entered into in November 2021, as amended, which is used in calculating covenant compliance.

 

 

TTM March 31, 2024

 

Net Income

 

$

18,663

 

Adjustments:

 

 

 

 

Interest Expense, Net

 

 

53,452

 

Income Tax Expense (Benefit)

 

 

5,942

 

Depreciation

 

 

10,287

 

Amortization

 

 

14,314

 

EBITDA

 

 

102,658

 

Restructuring Costs

 

 

1,917

 

Change in Fair Value of Warrant Liability

 

 

(451

)

Change in Fair Value of Earn-Out Liability

 

 

1,226

 

Equity-Based Compensation Expense

 

 

8,038

 

Inventory Charges

 

 

8,913

 

Gain on Early Extinguishment of Debt

 

 

(560

)

Notable Items

 

 

4,361

 

Other Expense

 

 

706

 

Adjusted EBITDA

 

 

126,808

 

Additional Permitted Charges

 

 

1,896

 

Adjusted EBITDA per Credit Agreement

 

$

128,704

 

Total Debt

 

$

577,175

 

Less: Permitted Cash and Cash Equivalents

 

 

41,127

 

Net Indebtedness per Credit Agreement

 

$

536,048

 

Bank-adjusted EBITDA Leverage Ratio

 

4.16 x

 

We define adjusted gross profit as gross profit excluding inventory charges primarily due to product rationalization initiatives that are part of a portfolio transformation aimed at eliminating unprofitable or slow-moving SKUs. We define Adjusted Gross Margin as Adjusted Gross Profit divided by net sales.

 

 

For the thirteen weeks ended

 

 

 

March 31,

 

 

April 2,

 

 

 

2024

 

 

2023

 

Gross Profit

 

$

52,059

 

 

$

67,713

 

Adjust for: Inventory Charges

 

 

9,713

 

 

 

—

 

Adjusted Gross Profit

 

$

61,772

 

 

$

67,713

 

Net Sales

 

$

158,636

 

 

$

172,205

 

Gross Margin

 

 

32.8

%

 

 

39.3

%

Adjusted Gross Margin

 

 

38.9

%

 

 

39.3

%

We define Adjusted Net Income as earnings excluding the after-tax effect of changes in the fair value of the warrant liability, changes in the fair value of the earn-out liability, and gain or loss on the early extinguishment of debt. We define Adjusted Diluted EPS as Adjusted Net Income on a per share basis. Management uses these measures to focus on on-going operations and believes that it is useful to investors because it enables them to perform meaningful comparisons of past and present consolidated operating results. We believe that using this information, along with net income and net income per diluted share, provides for a more complete analysis of the results of operations.

 

 

For the thirteen weeks ended

 

 

 

March 31,

 

 

April 2,

 

 

 

2024

 

 

2023

 

Net Income

 

$

3,730

 

 

$

4,247

 

Special items:

 

 

 

 

 

 

 

 

Adjust for: Change in Fair Value of Warrant Liability

 

 

(3,127

)

 

 

1,435

 

Adjust for: Change in Fair Value of Earn-Out Liability

 

 

(649

)

 

 

428

 

Adjust for: Loss on Early Extinguishment of Debt

 

 

111

 

 

 

—

 

Adjusted Net Income

 

$

65

 

 

$

6,110

 

 

 

 

For the thirteen weeks ended

 

 

 

March 31,

 

 

April 2,

 

 

 

2024

 

 

2023

 

Net Income per Diluted Share

 

$

0.03

 

 

$

0.04

 

Special items:

 

 

 

 

 

 

 

 

Adjust for: Change in Fair Value of Warrant Liability

 

 

(0.03

)

 

 

0.01

 

Adjust for: Change in Fair Value of Earn-Out Liability

 

 

—

 

 

 

—

 

Adjust for: Loss on Early Extinguishment of Debt

 

 

—

 

 

 

—

 

Adjusted Diluted EPS

 

$

—

 

 

$

0.05

 

We define Free Cash Flow as net cash provided by operating activities minus cash payments for capital expenditures, net of dispositions. Management believes providing Free Cash Flow is useful for investors to understand our performance and results of cash generation after making capital investments required to support ongoing business operations.

 

 

For the thirteen weeks ended

 

 

 

March 31,

 

 

April 2,

 

 

 

2024

 

 

2023

 

Net Cash Provided by Operating Activities

 

$

18,843

 

 

$

3,639

 

Capital Expenditures, Net of Dispositions

 

 

(1,091

)

 

 

(683

)

Free Cash Flow

 

$

17,752

 

 

$

2,956

 

The outlook for second quarter and full year 2024 Adjusted EBITDA and the outlook for full year 2024 Bank-adjusted EBITDA Leverage Ratio are provided on a non-GAAP basis only because certain information necessary to calculate the most comparable GAAP measure, net income, is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of certain items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, we are unable to provide a reconciliation of the outlook for 2024 Adjusted EBITDA and Bank-adjusted EBITDA Leverage Ratio without unreasonable effort.

 

 

Second Quarter 2024 Outlook

 

 

Full Year 2024 Outlook

 

 

 

Low Range

 

 

High Range

 

 

Low Range

 

 

High Range

 

Net Sales

 

$

165,000

 

 

$

175,000

 

 

$

640,000

 

 

$

680,000

 

Adjusted EBITDA

 

 

34,000

 

 

 

40,000

 

 

 

125,000

 

 

 

145,000

 

Depreciation and Amortization

 

 

 

 

 

 

 

 

 

 

24,000

 

 

 

26,000

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

50,000

 

 

 

55,000

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

 

8,000

 

 

 

12,000

 

Bank-adjusted EBITDA Leverage Ratio

 

 

 

 

 

 

 

 

 

4.0x

 

 

3.5x

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240507052047/en/

Investor Relations: Anthony Rozmus / Neel Sikka Solebury Strategic Communications 203-428-3324 holley@soleburystrat.com

Media Relations Contacts: Paul Oakley, poakley@tinymightyco.com / Rachel Withers, rwithers@tinymightyco.com Tiny Mighty Communications 615-454-2913