Holley Reports Fourth Quarter and Full Year 2024 Results; Transformative Year Begins to Ignite Growth Across Key Business Areas
Delivered strong fourth quarter and full year financial results within guidance range on a comparable basis
Proactive amendment to revolver enhances financial flexibility
BOWLING GREEN, Ky.--(BUSINESS WIRE)--March 11, 2025--
Holley Performance Brands $(HLLY)$, a leader in automotive aftermarket performance solutions, today announced financial results for its fourth quarter and full year ended December 31, 2024.
Fourth Quarter Highlights vs. Prior Year Period
-- Net Sales decreased (10.1%) to $140.1 million compared to $155.7 million
last year
-- Net Loss was $(37.8) million, or $(0.32) per diluted share, compared to a
Net Income of $1.2 million, or $0.01 per diluted share, last year
-- Includes non-cash goodwill and trademark impairment charges of
$40.9 million and $7.7 million, respectively
-- Net Cash Provided by Operating Activities was $4.1 million compared to
Net Cash Provided by Operating Activities of $31.2 million last year
-- Adjusted Net Income1 was $12.6 million compared to Adjusted Net Loss of
$(0.5) million last year
-- Adjusted EBITDA1 was $29.1 million compared to $28.5 million last year
-- Free Cash Flow1 was $1.8 million compared to $29.9 million last year
Full Year 2024 Highlights vs. Prior Year Period
-- Net Sales decreased (8.7%) to $602.2 million compared to $659.7 million
last year
-- Net Loss was $(23.2) million, or $(0.20) per diluted share, compared to a
Net Income of $19.2 million, or $0.16 per diluted share, last year
-- Net Cash Provided by Operating Activities was $46.9 million compared to
Net Cash Provided by Operating Activities of $88.1 million last year
-- Adjusted Net Income1 was $24.8 million compared to Adjusted Net Income of
$25.0 million last year
-- Adjusted EBITDA1 was $110.52 million compared to $130.9 million last year
-- Free Cash Flow1 was $41.8 million compared to $83.6 million last year
(1) See "Use and Reconciliation of Non-GAAP Financial Measures" below.
(2) Adjusted EBITDA for 2024 includes the impact of $8.2 million non-cash related to a previously announced strategic product rationalization.
"2024 was an incredibly transformative year for Holley, marked by meaningful enhancements across the entire organization," said Matthew Stevenson, President and Chief Executive Officer of Holley. "We achieved several years' worth of progress in only twelve months, transforming Holley into a fundamentally more sophisticated organization. Despite operating in a challenging macroeconomic environment for consumers, we are demonstrating significant strides that, we believe, are coming to fruition in several areas of our business."
Stevenson continued, "These efforts translated into several wins in 2024 for Holley, such as DTC and National Retailer growth of 8% and 12%, respectively, and a 75% increase in revenue per SKU for new product launches, eclipsing $100 million in eCommerce sales, and growing 16 brands in our portfolio, including power brands such as Stilo, Simpson, Dinan, ADS, and Cataclean. Additionally, we remain deeply engaged with our enthusiast customer base through a series of world-class events, an enhanced social media presence, a dedicated customer engagement center, the launch of a new CRM system, and our solutions-focused approach that distinguishes us in the market as a comprehensive provider for their performance needs. We continue to strengthen our relationships with our distribution partners by developing additional programs and solutions intended to drive increased collaboration and to create growth."
"The progress made in 2024 positions Holley well for continued success in 2025. Our strategic plan for 2025 is based on the underlying principles of fueling our teammates, funding our growth, and supporting our customers. By empowering and investing in our people, we ensure that our team is equipped with the skills, resources, and motivation to drive success. Through careful investment in growth initiatives and innovation, we will aim to expand our capabilities and market reach. At the same time, we remain committed to delivering exceptional value and service to our customers, making sure that their needs are met with the highest level of support. Together, these pillars provide a robust framework that will guide our efforts in 2025 and beyond."
"As we look ahead, while we believe our market may continue to be challenged early in the year due to consumer confidence, distributor inventories are in a better position than they were a year ago, and by focusing on continuing to strengthen our B2B relationships, we aim to continue gaining market share and driving growth in 2025. Excluding $12.8 million of revenue from divested businesses in 2024 and $14.0 million in clearance sales from the Strategic Product Rationalization, our Full Year 2025 revenue guidance indicates an expected 0.8% to 4.3% revenue growth in 2025. We are committed to positioning Holley to not only navigate the challenges ahead but to thrive and drive growth for years to come."
Strategic Business Highlights
-- Growth in significant areas of the business, including DTC and 17 brands
in our portfolio, including power brands such as Stilo, Simpson, Dinan,
ADS, and Cataclean.
-- Proactively amended senior secured revolving credit facility, to a
covenant-lite structure that includes a springing covenant of 5.0x total
net leverage that is only tested when the revolver is drawn. The
amendment also extends the maturity date to November 18, 2029 and updates
available borrowing to $100 million.
-- Proactively entered into a cash-less collar that further reduces interest
rate exposure to the maturity date of the Term Loan in November 2028.
-- Inventory turns improved to 2.0x compared to 1.9x last year1
-- In January, announced a perpetual exclusive license agreement with
Cataclean for the North American market which allows Holley to develop,
manufacture, market distribute and sell Cataclean branded products in the
U.S., Canada, and Mexico for a total purchase price of $23.8 million.
(1) We define Inventory Turns as the trailing twelve-month ("TTM") Cost of Goods Sold divided by the TTM average Inventory. We define TTM average Inventory as the total of each month-end Inventory amount during the year, divided by twelve.
Key Operating and Financial Metrics
Financial Progress Fourth Quarter 2024 Fourth Quarter 2023 B/$(W)$ ---------------------- ------------------- ------------------- ------------ Total Inventory $192.5 million $192.3 million $0.2 million ---------------------- ------------------- ------------------- ------------ Bank-Adjusted EBITDA 4.17x 4.21x 0.04x Leverage Ratio(1) ---------------------- ------------------- ------------------- ------------
(1) See "Use and Reconciliation of Non-GAAP Financial Measures" below. We define the Bank-adjusted EBITDA Leverage Ratio as Net Debt divided by our Bank-adjusted EBITDA for the TTM period, as defined under our Credit Agreement entered into in November 2021, as amended, which is used in calculating covenant compliance.
2024
November FY24 Adjusted Full Year 2024
Guidance Guidance* Actual B/(W)
------------- ------------------- ------------ -------------- ------------
$106.8 -
Adjusted $111.8
EBITDA $115 - $120 million million $110.5 million $1.2 million
------------- ------------------- ------------ -------------- ------------
*Adjusted Guidance Includes the $8.2MM FY Non-Cash Impact of The Strategic
Product Rationalization
------------------------------------------------------------------------------
Outlook
Holley is providing the following outlook for the full-year 2025:
Metric Full Year 2025 Outlook
----------------------------------------------- -----------------------------
Net Sales $580 - $600 million
%YOY* 0.8% to 4.3%
----------------------------------------------- -----------------------------
Adjusted EBITDA $113 - $130 million
----------------------------------------------- -----------------------------
Capital Expenditures $12 - $16 million
----------------------------------------------- -----------------------------
Depreciation and Amortization Expense $22 - $24 million
----------------------------------------------- -----------------------------
Interest Expense $47 - $52 million
----------------------------------------------- -----------------------------
*PY Comparison Excludes $12.8 million from Divested Non-Core Businesses and
$14.0 million in Clearance Sales of Strategic Product Rationalization;
Guidance does not include any potential incremental impact related to tariffs
------------------------------------------------------------------------------
* Holley is not providing reconciliations of forward-looking full year 2025 Adjusted EBITDA outlook and full year 2025 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 full-year 2025 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 13750870.
For those unable to participate, a telephone replay recording will be available until Tuesday, March 18, 2025. To access the replay, please call 877-660-6853 (Toll Free) or 201-612-7415 (Toll) and enter confirmation code 13750870. 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 Performance Brands
Holley Performance Brands (NYSE: HLLY) leads in the design, manufacturing and marketing of high-performance products for automotive enthusiasts. The company owns and manages a portfolio of iconic brands, catering to a diverse community of enthusiasts passionate about the customization and performance of their vehicles. Holley Performance Brands distinguishes itself through a strategic focus on four consumer vertical groupings, including Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing, ensuring a wide-ranging impact across the automotive aftermarket industry. Renowned for its innovative approach and strategic acquisitions, Holley Performance Brands is committed to enhancing the enthusiast experience and driving growth through innovation. For more information on Holley Performance Brands and its dedication to automotive excellence, 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; 17) disruptions and costs associated with doing business in certain countries; 18) Holley's ability to adopt and react to risks posed by new technology and 19) 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, 2024 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 For the year ended
-------------------------------------------- -------------------------------------------
December December December December
31, 31, Variance Variance 31, 31, Variance Variance
2024 2023 ($) (%) 2024 2023 ($) (%)
-------------------- ------- ------- --------- ----------- ------- ------- --------- ----------
Net Sales $140,054 $155,707 $(15,653) -10.1% $602,224 $659,704 $(57,480) -8.7%
Cost of Goods Sold 76,168 95,453 (19,285) -20.2% 363,680 403,615 (39,935) -9.9%
--------------------- ------- ------- ------- ------- ------- -------
Gross Profit 63,886 60,254 3,632 6.0% 238,544 256,089 (17,545) -6.9%
Selling, General, and
Administrative 34,474 32,246 2,228 6.9% 132,149 120,244 11,905 9.9%
Research and
Development Costs 4,967 4,909 58 1.2% 18,710 23,844 (5,134) -21.5%
Amortization of
Intangible Assets 3,577 3,517 60 1.7% 13,884 14,557 (673) -4.6%
Impairment of
Indefinite-Lived
Intangible Assets 7,695 - 7,695 100.0 % 7,695 - 7,695 100.0%
Impairment of
Goodwill 40,906 - 40,906 100.0 % 40,906 - 40,906 100.0%
Restructuring Costs - 535 (535) -100.0% 1,566 2,641 (1,075) -40.7%
Loss on Sale of
Assets 1,729 - 1,729 100.0% 9,234 - 9,234 100.0%
Other Operating
Expense (Income) (481) 257 (738) nm (268) 765 (1,033) -135.0%
--------------------- ------- ------- ------- ------- ------- -------
Operating
Expense 92,867 41,464 51,403 124.0% 223,876 162,051 61,825 38.2%
--------------------- ------- ------- ------- ------- ------- -------
Operating
Income (28,981) 18,790 (47,771) -254.2% 14,668 94,038 (79,370) -84.4%
Change in Fair Value
of Warrant
Liability - (1,405) 1,405 nm (7,570) 4,111 (11,681) -284.1%
Change in Fair Value
of Earn-Out
Liability 8 214 (206) nm (2,333) 2,303 (4,636) -201.3%
Loss (Gain) on Early
Extinguishment of
Debt - (701) 701 0.0 % 141 (701) 842 100.0%
Interest Expense, Net 11,498 18,837 (7,339) -39.0% 50,690 60,746 (10,056) -16.6%
--------------------- ------- ------- ------- ------- ------- -------
Non-Operating
Expense 11,506 16,945 (5,439) -32.1% 40,928 66,459 (25,531) -38.4%
--------------------- ------- ------- ------- ------- ------- -------
Income (Loss) Before
Income Taxes (40,487) 1,845 (42,332) -2294.4% (26,260) 27,579 (53,839) -195.2%
Income Tax Expense
(Benefit) (2,705) 643 (3,348) nm (3,025) 8,399 (11,424) -136.0%
--------------------- ------- ------- ------- ------- ------- -------
Net Income
(Loss) $(37,782) $ 1,202 $(38,984) -3243.3% $(23,235) $ 19,180 $(42,415) -221.1%
===================== ======= ======= ======= ======= ======= =======
Comprehensive Income:
Foreign Currency
Translation
Adjustment (696) 337 (1,033) -306.5% (452) 234 (686) -293.2%
--------------------- ------- ------- ------- ------- ------- -------
Total
Comprehensive
Income (Loss) $(38,478) $ 1,539 $(40,017) -2600.2% $(23,687) $ 19,414 $(43,101) -222.0%
===================== ======= ======= ======= ======= ======= =======
Common Share Data:
Basic Net Income
(Loss) per Share $ (0.32) $ 0.01 $ (0.33) -3300.0% $ (0.20) $ 0.16 $ (0.36) -225.0%
Diluted Net Income
(Loss) per Share $ (0.32) $ 0.01 $ (0.33) -3300.0% $ (0.20) $ 0.16 $ (0.36) -225.0%
Weighted Average
Common Shares
Outstanding - Basic 118,724 117,707 1,017 0.9% 118,442 117,379 1,063 0.9%
Weighted Average
Common Shares
Outstanding -
Diluted 118,724 119,573 (849) -0.7% 118,442 118,511 (69) -0.1%
--------------------- ------- ------- ------- ------- ------- ------- ------- ------
nm - not meaningful
HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
As of
--------------------------------
December 31, December 31,
2024 2023
------------------------------------- --------- ---------
Assets
--------------------------------------
Cash and cash equivalents $ 56,087 $ 41,081
Accounts receivable 36,123 48,360
Inventory 192,523 192,260
Prepaids and other current assets 12,614 15,665
--------- ---------
Total Current Assets 297,347 297,366
Property, Plant and Equipment, Net 40,983 47,206
Goodwill 372,340 419,056
Other Intangibles, Net 386,676 410,465
Other Noncurrent Assets 35,974 29,250
-------------------------------------- --------- ---------
Total Assets $ 1,133,320 $ 1,203,343
====================================== ========= =========
Liabilities and Stockholders' Equity
--------------------------------------
Accounts payable $ 44,781 $ 43,692
Accrued interest - 455
Accrued liabilities 43,190 42,129
Current portion of long-term debt 7,201 7,461
-------------------------------------- --------- ---------
Total Current Liabilities 95,172 93,737
Long-Term Debt, Net of Current Portion 545,385 576,710
Deferred Taxes 37,391 53,542
Other Noncurrent Liabilities 34,220 38,203
-------------------------------------- --------- ---------
Total Liabilities 712,168 762,192
Common Stock 12 12
Additional Paid-In Capital 377,557 373,869
Accumulated Other Comprehensive Loss (1,162) (710)
Retained Earnings 44,745 67,980
-------------------------------------- --------- ---------
Total Stockholders' Equity 421,152 441,151
-------------------------------------- --------- ---------
Total Liabilities and Stockholders'
Equity $ 1,133,320 $ 1,203,343
====================================== ========= =========
HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
For the thirteen
weeks ended For the year ended
-------------------- ----------------------
December December December December
31, 31, 31, 31,
2024 2023 2024 2023
-------------- ------- ------- ------- -------
Operating
Activities
---------------
Net Income
(Loss) $(37,782) $ 1,202 $(23,235) $ 19,180
Adjustments to
Reconcile to
Net Cash 52,526 14,625 79,358 44,071
Changes in
Operating
Assets and
Liabilities (10,618) 15,402 (9,224) 24,841
--------------- ------- ------- ------- -------
Net Cash
Provided by
Operating
Activities 4,126 31,229 46,899 88,092
Investing
Activities
---------------
Capital
Expenditures,
Net of
Dispositions 4,748 (1,328) 2,021 (4,453)
--------------- ------- ------- ------- -------
Net Cash
Provided by
(Used in)
Investing
Activities 4,748 (1,328) 2,021 (4,453)
Financing
Activities
---------------
Net Change in
Debt (3,612) (25,601) (32,444) (66,038)
Deferred
financing
fees (679) -- (679) (1,427)
Payments from
Stock-Based
Award
Activities -- (409) (1,482) (1,543)
--------------- ------- ------- ------- -------
Net Cash Used
in Financing
Activities (4,291) (26,010) (34,605) (69,008)
Effect of
Foreign
Currency Rate
Fluctuations
on Cash 753 357 691 300
--------------- ------- ------- ------- -------
Net Change in
Cash and Cash
Equivalents 5,336 4,248 15,006 14,931
Cash and Cash
Equivalents
---------------
Beginning of
Period 50,751 36,833 41,081 26,150
--------------- ------- ------- ------- -------
End of Period $ 56,087 $ 41,081 $ 56,087 $ 41,081
=============== ======= ======= ======= =======
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; 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 For the year ended
--------------------------- --------------------------
December 31, December 31, December 31, December 31,
2024 2023 2024 2023
----------------------- ------- --- ------- ------- -------
Net Income (Loss) $(37,782) $ 1,202 $(23,235) $ 19,180
Adjustments:
Interest Expense,
Net 11,498 18,837 50,690 60,746
Income Tax Expense
(Benefit) (2,705) 643 (3,025) 8,399
Depreciation 3,187 2,570 10,551 10,308
Amortization 3,577 3,517 13,884 14,557
------------------------ ------- --- ------- ------- -------
EBITDA (22,225) 26,769 48,865 113,190
Restructuring
Costs (194) 535 1,372 2,641
Change in Fair
Value of Warrant
Liability - (1,405) (7,570) 4,111
Change in Fair
Value of Earn-Out
Liability 8 214 (2,333) 2,303
Equity-Based
Compensation
Expense 887 2,121 5,170 7,291
Impairment of
Indefinite-lived
intangible
Assets 7,695 - 7,695 -
Impairment of
Goodwill 40,906 - 40,906 -
Loss on Sale of
Assets 1,729 - 9,234 -
Loss (Gain) on
Early
Extinguishment of
Debt - (701) 141 (701)
Notable Items 621 721 7,100 1,285
Other Expense
(Income) (300) 257 (87) 765
------------------------ ------- ------- ------- -------
Adjusted EBITDA $ 29,127 $ 28,511 $110,493 $130,885
======================== ======= === ======= ======= =======
Net Sales $140,054 $155,707 $602,224 $659,704
Net Income Margin -27.0% 0.8% -3.9% 2.9%
Adjusted EBITDA Margin 20.8% 18.3% 18.3% 19.8%
TTM
December 31, 2024 December 31, 2023
--------------------------- ------------------- ---------------------
Net Loss $ (23,235) $ 19,180
Adjustments:
Interest Expense, Net 50,690 60,746
Income Tax Expense
(Benefit) (3,025) 8,399
Depreciation 10,551 10,308
Amortization 13,884 14,557
---------------------------- -------------- --------------
EBITDA 48,865 113,190
Restructuring Costs 1,372 2,641
Change in Fair Value
of Warrant Liability (7,570) 4,111
Change in Fair Value
of Earn-Out
Liability (2,333) 2,303
Equity-Based
Compensation Expense 5,170 7,291
Impairment of
indefinite-lived
intangible assets 7,695 -
Impairment of goodwill 40,906 -
Loss on Sale of Assets 9,234 -
Loss (Gain) on Early
Extinguishment of
Debt 141 (701)
Notable Items 7,100 1,285
Other Expense (87) 765
---------------------------- -------------- --------------
Adjusted EBITDA 110,493 130,885
Additional Permitted Charges 12,261 711
---------------------------- -------------- --------------
Adjusted EBITDA per Credit
Agreement $ 122,754 $ 131,596
============================ ============== ==============
Total Debt $ 561,840 $ 594,479
Less: Permitted Cash and
Cash Equivalents 50,000 41,081
---------------------------- -------------- --------------
Net Indebtedness per Credit
Agreement $ 511,840 $ 553,398
============================ ============== ==============
Bank-adjusted EBITDA 4.17 x 4.21 x
Leverage Ratio
We define Adjusted Net Income as earnings excluding the after-tax effect of changes in the fair value of the warrant liability, write-downs of assets held-for-sale, changes in the fair value of the earn-out liability, impairment of indefinite-lived intangible assets, impairment of goodwill, 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 For the year ended
---------------------- ---------------------
December December December
December 31, 31, 31, 31,
2024 2023 2024 2023
-------------------- ------- ------ ------- ------
Net Income (Loss) $(37,782) $ 1,202 $(23,235) $19,180
Special items:
Adjust for: Change
in Fair Value of
Warrant
Liability - (1,405) (7,570) 4,111
Adjust for: Change
in Fair Value of
Earn-Out
Liability 8 214 (2,333) 2,303
Adjust for:
Impairment of
indefinite-lived
intangible
assets 7,695 - 7,695 -
Adjust for:
Impairment of
goodwill 40,906 - 40,906 -
Adjust for: Loss
on Sale of
Assets 1,729 - 9,234 -
Adjust for: Loss
(Gain) on Early
Extinguishment of
Debt - $(554.SI)$ 141 (554)
Adjust for:
Impairment of
Indefinite-Lived
Intangible
Assets - - - -
-------------------- ------- ------ ------- ------
Adjusted Net Income
(Loss) $ 12,556 $ $(543.SI)$ $ 24,838 $25,040
===================== ======= ====== ======= ======
For the thirteen weeks
ended For the year ended
---------------------- ------------------------
December December December
31, 31, 31, December 31,
2024 2023 2024 2023
-------------------- ----- ----- ----- ------
Net Income (Loss) per
Diluted Share $(0.32) $ 0.01 $ (0.20) $ 0.16
Special items:
Adjust for: Change
in Fair Value of
Warrant
Liability - (0.01) (0.06) 0.03
Adjust for: Change
in Fair Value of
Earn-Out
Liability - - (0.03) 0.02
Adjust for:
Impairment of
indefinite-lived
intangible
assets 0.07 - 0.06 -
Adjust for:
Impairment of
goodwill 0.35 - 0.35 -
Adjust for: Loss
on Sale of
Assets 0.01 - 0.08 -
Adjust for: Loss
(Gain) on Early
Extinguishment of
Debt - - - -
-------------------- ----- ----- ----- ------
Adjusted Diluted EPS $ 0.11 $ 0.00 $ 0.20 $ 0.21
===================== ===== ===== ===== ======
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 For the year ended
--------------------- --------------------
December December December December
31, 31, 31, 31,
2024 2023 2024 2023
-------------- ------ ------ ------ ------
Net Cash
Provided by
Operating
Activities $ 4,126 $31,229 $46,899 $88,092
Capital
Expenditures,
Net of
Dispositions (2,351) (1,328) (5,078) (4,453)
--------------- ------ ------ ------ ------
Free Cash Flow $ 1,775 $29,901 $41,821 $83,639
=============== ====== ====== ====== ======
View source version on businesswire.com: https://www.businesswire.com/news/home/20250310515990/en/
CONTACT: Investor Relations:
Anthony Rozmus / Neel Sikka
Solebury Strategic Communications
203-428-3324
holley@soleburystrat.com
Media Relations:
Jordan Moore, jmoore@tinymightyco.com / Rachel Withers, rwithers@tinymightyco.com
Tiny Mighty Communications
615-454-2913
(END) Dow Jones Newswires
March 11, 2025 07:30 ET (11:30 GMT)
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