04/02/2014

Fox Factory Forecast Q4 Sales Growth in Mid-Teens

Fox Factory Holding Corp. expects to report net sales grew nearly 15 percent to approximately $65 million in the fourth quarter ended Dec. 31, 2013, the company reported Monday.

The Scotts Valley, CA company, which went public late last year, designs and manufactures high-performance suspension products primarily for mountain bikes, side-by-side vehicles, on-road and off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles.

Fox reported sales of $56.6 million in the fourth quarter of 2012. Fourth quarter 2013 net sales included approximately $3 million of sales that were originally scheduled to occur in early 2014.

For the fiscal 2013 fourth quarter, the company expects to report earnings per diluted share in the range of $0.11 to $0.13, based on approximately 38 million weighted average diluted shares outstanding. For comparison purposes, for the fiscal 2012 fourth quarter, the company reported earnings of $0.05 per diluted share, based on 34.0 million weighted average diluted shares outstanding.

For the fiscal 2013 fourth quarter, the company expects to report non-GAAP adjusted earnings per diluted share in the range of $0.14 to $0.16. For comparison purposes, for the fourth quarter fiscal year 2012, the company reported non-GAAP adjusted earnings per diluted share of $0.08.

Fiscal Year 2013 Preliminary Results

For the fiscal 2013 full year, the company expects to report net sales of approximately $272 million as compared to net sales of $235.9 million in fiscal 2012.

For the fiscal 2013 full year, the company expects to report earnings per diluted share in the range of $0.66 to $0.68, based on approximately 36 million weighted average diluted shares outstanding. For comparison purposes, the company reported earnings of $0.44 per diluted share, based on 32.5 million weighted average diluted shares outstanding in fiscal 2012. The company expects to report non-GAAP adjusted earnings per diluted share in the range of $0.80 to $0.82 for fiscal 2013. For comparison purposes, for fiscal year 2012, the company reported non-GAAP adjusted earnings per diluted share of $0.55.

"We are pleased to report strong fourth quarter and full year 2013 preliminary sales and earnings results in our first year as a public company," stated Fox CEO Larry L. Enterline. "Our operations team continued its focused execution of our long-term strategy which enabled us to generate approximately 280 basis point improvement in gross margin compared to 2012. As we begin fiscal year 2014, we believe we are well positioned to deliver another year of solid top and bottom line growth."

Preliminary 2014 outlook

 For the fiscal 2014 first quarter, the company expects net sales in the range of $53 million to $57 million and earnings per diluted share in the range of $0.07 to $0.10, as a result of the aforementioned sales benefit in the fourth quarter of 2013. Excluding the net after tax effect of amortization of intangibles of approximately $0.9 million, the company expects non-GAAP adjusted earnings per diluted share in the range of $0.09 to $0.12 for the fiscal 2014 first quarter.

For fiscal year 2014, the company expects net sales in the range of $275 million to $295 million and earnings per diluted share in the range of $0.70 to $0.80 based on 38 to 39 million weighted average diluted shares outstanding. Included in these amounts are approximately $3.7 million to $4.3 million of stock based compensation expenses. Excluding the net after tax effect from the amortization of intangibles of approximately $3.6 million, the company expects non-GAAP adjusted earnings per diluted share in the range of $0.79 to $0.89 for the fiscal year 2014.

Fox Factory plans to report its full operating results for the fourth quarter and full year 2013 in the second week of March 2014. The company does not plan to provide preliminary financial information in the future other than in unique circumstances, or in the event of a material event that requires disclosure.

By press release

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