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Oct 02, 2022

Holley Q3 2022 Earnings Report

Holley's financial performance was impacted by supply chain constraints and inflationary pressures, but direct-to-consumer sales increased.

Key Takeaways

Holley Inc. reported a decrease in net sales by 3.1% to $154.8 million for the third quarter of 2022, while net income was $31.6 million, or $0.27 per diluted share. The company's performance was affected by supply chain constraints and higher costs, but direct-to-consumer sales saw an increase of 11%.

Net sales decreased by 3.1% to $154.8 million compared to the prior year's third quarter.

Gross profit decreased by 25.8% to $48.4 million compared to the prior year's third quarter.

Net income was $31.6 million, or $0.27 per diluted share, compared to a net loss of $(30.2) million in the prior year's third quarter.

Adjusted EBITDA was $16.4 million compared to $35.5 million in the prior year's third quarter.

Total Revenue
$155M
Previous year: $160M
-3.1%
EPS
-$0.04
Previous year: $0.12
-133.3%
Gross Profit
$48.4M
Previous year: $65.2M
-25.8%
Cash and Equivalents
$16.6M
Previous year: $53.9M
-69.2%
Free Cash Flow
-$10.8M
Previous year: -$24.8M
-56.5%
Total Assets
$1.26B
Previous year: $1.14B
+10.6%

Holley

Holley

Forward Guidance

Holley revised its outlook for 2022 due to challenges with the supply chain, manufacturing inefficiencies, freight costs and elevated expenses. Net Sales are expected to be in the range of $695-$710 million and Adjusted EBITDA of $118-$124 million.

Challenges Ahead

  • Challenges with the supply chain.
  • Manufacturing inefficiencies.
  • Freight costs.
  • Elevated expenses.
  • Reducing revenue and Adjusted EBITDA guidance range for the year.