Fox Factory Holding Corp (FOXF) has reported 222.75 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $10.53 million, or $0.27 a share in the quarter, compared with $3.26 million, or $0.09 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $13.60 million, or $0.35 a share compared with $5.97 million or $0.16 a share, a year ago. Revenue during the quarter surged 32.55 percent to $106.33 million from $80.22 million in the previous year period. Gross margin for the quarter expanded 39 basis points over the previous year period to 31.71 percent. Total expenses were 88.32 percent of quarterly revenues, down from 92.90 percent for the same period last year. This has led to an improvement of 458 basis points in operating margin to 11.68 percent.
Operating income for the quarter was $12.42 million, compared with $5.69 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $19.25 million compared with $11.48 million in the prior year period. At the same time, adjusted EBITDA margin improved 380 basis points in the quarter to 18.10 percent from 14.30 percent in the last year period.
“We achieved sales and profitability above our expectations in the first quarter of fiscal 2017, driven by solid momentum across both our bike and powered vehicle product offerings,” stated Larry L. Enterline, FOX’s Chief Executive Officer. “As a result of our strong start to the year, we are raising our guidance for fiscal 2017. We believe the diversification of our product offerings and end markets continue to set us apart in the industry and position us well for future growth.”
For the second-quarter 2017, Fox Factory Holding Corp expects revenue to be in the range of $0.11 million to $0.12 million and its adjusted diluted earnings per share to be in the range of $0.32 to $0.38.
For fiscal year 2017, Fox Factory Holding Corp expects revenue to be in the range of $0.44 million to $0.46 and its adjusted diluted earnings per share to be in the range of $1.36 to $1.46.
Working capital increases sharply
Fox Factory Holding Corp has recorded an increase in the working capital over the last year. It stood at $107.53 million as at Mar. 31, 2017, up 76.55 percent or $46.62 million from $60.90 million on Apr. 01, 2016. Current ratio was at 2.31 as on Mar. 31, 2017, up from 1.85 on Apr. 01, 2016. Cash conversion cycle (CCC) has decreased to 44 days for the quarter from 103 days for the last year period. Days sales outstanding went down to 40 days for the quarter compared with 44 days for the same period last year.
Days inventory outstanding has decreased to 50 days for the quarter compared with 120 days for the previous year period. At the same time, days payable outstanding went down to 46 days for the quarter from 61 for the same period last year.
Debt moves up
Fox Factory Holding Corp has witnessed an increase in total debt over the last one year. It stood at $65.78 million as on Mar. 31, 2017, up 14.95 percent or $8.56 million from $57.22 million on Apr. 01, 2016. Total debt was 19.05 percent of total assets as on Mar. 31, 2017, compared with 20.26 percent on Apr. 01, 2016. Debt to equity ratio was at 0.33 as on Mar. 31, 2017, down from 0.38 as on Apr. 01, 2016. Interest coverage ratio improved to 21.12 for the quarter from 14.87 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
