Fox Factory Holding Corp. (FOXF) has reported a 43.67 percent jump in profit for the quarter ended Dec. 30, 2016. The company has earned $9.81 million, or $0.26 a share in the quarter, compared with $6.83 million, or $0.18 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $12.02 million, or $0.32 a share compared with $9.60 million or $0.25 a share, a year ago.
Revenue during the quarter grew 16.61 percent to $111.56 million from $95.67 million in the previous year period. Gross margin for the quarter expanded 63 basis points over the previous year period to 30.53 percent. Total expenses were 87.91 percent of quarterly revenues, down from 90.13 percent for the same period last year. This has led to an improvement of 221 basis points in operating margin to 12.09 percent.
Operating income for the quarter was $13.48 million, compared with $9.45 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $19.76 million compared with $16.13 million in the prior year period. At the same time, adjusted EBITDA margin improved 85 basis points in the quarter to 17.71 percent from 16.86 percent in the last year period.
"We were pleased to end the year with continued business momentum. Our global team continued to execute at a high-level and our innovation has helped fuel the consistent success of product lineups across bike and powered vehicles," commented Larry L. Enterline, FOX's Chief Executive Officer. "This positive momentum in our business has continued into fiscal 2017, and we believe we are well positioned to generate future growth and enhance shareholder value."
For financial year 2017, Fox Factory Holding Corp. projects revenue to be in the range of $430 million to $450 million. The company forecasts diluted earnings per share to be in the range of $1.31 to $1.41 on adjusted basis.
For the first-quarter, Fox Factory Holding Corp. projects revenue to be in the range of $96 million to $100 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.24 to $0.28.
Debt increases substantially
Fox Factory Holding Corp. has witnessed an increase in total debt over the last one year. It stood at $66.68 million as on Dec. 30, 2016, up 39.27 percent or $18.80 million from $47.88 million on Dec. 31, 2015. Total debt was 19.87 percent of total assets as on Dec. 30, 2016, compared with 17.19 percent on Dec. 31, 2015. Debt to equity ratio was at 0.36 as on Dec. 30, 2016, up from 0.31 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 23.53 for the quarter from 24.67 for the same period last year.
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