Fox Factory Holding (FOXF) has reported 29.20 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $13.68 million, or $0.36 a share in the quarter, compared with $10.59 million, or $0.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $16.60 million, or $0.44 a share compared with $14.45 million or $0.38 a share, a year ago. Revenue during the quarter went up marginally by 2.67 percent to $109.01 million from $106.17 million in the previous year period. Gross margin for the quarter contracted 76 basis points over the previous year period to 32 percent. Total expenses were 86.16 percent of quarterly revenues, down from 86.98 percent for the same period last year. This has led to an improvement of 82 basis points in operating margin to 13.84 percent.
Operating income for the quarter was $15.09 million, compared with $13.82 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $20.94 million compared with $20.69 million in the prior year period. At the same time, adjusted EBITDA margin contracted 28 basis points in the quarter to 19.21 percent from 19.49 percent in the last year period.
"The diversification of our end markets and product applications helped us put together another solid quarter," stated Larry L. Enterline, FOXs chief executive officer. "We benefited from growth across our powered vehicle products and are pleased with our bike products performance, particularly in the face of a challenging industry backdrop. As we head into the fourth quarter, we are raising our fiscal year guidance as we expect to build upon our solid business momentum."
For the fourth-quarter, Fox Factory Holding forecasts revenue to be in the range of $104 million to $110 million. Fox Factory Holding forecasts revenue to be in the range of $395.50 million to $401.50 million for fiscal year 2016. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.28 to $0.32 for the fourth-quarter. For fiscal year 2016, the company expects diluted earnings per share to be in the range of $1.19 to $1.23 on adjusted basis.
Working capital increases sharplyFox Factory Holding has recorded an increase in the working capital over the last year. It stood at $90.04 million as at Sep. 30, 2016, up 28.02 percent or $19.70 million from $70.34 million on Sep. 30, 2015. Current ratio was at 2.11 as on Sep. 30, 2016, up from 1.78 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 42 days for the quarter from 88 days for the last year period. Days sales outstanding went down to 46 days for the quarter compared with 47 days for the same period last year.
Days inventory outstanding has decreased to 48 days for the quarter compared with 101 days for the previous year period. At the same time, days payable outstanding went down to 52 days for the quarter from 60 for the same period last year.
Debt increases substantially
Fox Factory Holding has witnessed an increase in total debt over the last one year. It stood at $72.59 million as on Sep. 30, 2016, up 51.63 percent or $24.72 million from $47.87 million on Sep. 30, 2015. Total debt was 22.36 percent of total assets as on Sep. 30, 2016, compared with 15.67 percent on Sep. 30, 2015. Debt to equity ratio was at 0.42 as on Sep. 30, 2016, up from 0.33 as on Sep. 30, 2015. Interest coverage ratio improved to 27.18 for the quarter from 32.75 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: editor@irisindia.net
