Loading...
•
Dec 31, 2022
Holley Q4 2022 Earnings Report
Holley's financial performance was impacted by supply-chain disruptions and demand normalization, but the company remains confident in its core enthusiast base.
Key Takeaways
Holley Inc. reported a decrease in net sales and gross profit for Q4 2022, with a net loss of $(15.2) million. The company is focused on cost structure alignment and free cash flow improvement.
Net Sales decreased 14.3% to $154.2 million compared to the prior year's fourth quarter.
Gross Profit decreased 36.8% to $47.3 million compared to 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.
The company reached an agreement with its lending group to amend the net leverage covenant applicable to the revolver.
Holley
Holley
Forward Guidance
Holley anticipates net sales between $625 and $675 million and adjusted EBITDA between $108 and $122 million for the full year 2023.
Positive Outlook
- Operational improvements and cost initiatives are expected to drive approximately $30 million of year-over-year cost savings in 2023.
- Anticipated improvements in gross margin driven by improved shipping costs as the result of a recently negotiated contract with a new 3rd party logistics provider.
- Reduction in force expected to contribute $15 million in savings.
- Focus on restoring profitability.
- Optimizing inventories.
Challenges Ahead
- 2022 results were challenged by multiple factors.
- Normalization to pre-COVID trend growth levels.
- Ongoing supply-chain disruptions.
- Market demand
- De-leveraging our balance sheet in 2023 and beyond.