Fox rocks first quarterly report since IPO; company reports nearly 16 percent jump in sales

Santa Cruz Sentinel

fox.larryenterlineSCOTTS VALLEY — Fox Factory Holding Corp., which makes high-performance racing shocks and launched a successful initial public offering last month, reported a double-digit jump in second fiscal quarter sales Thursday.

“We are very pleased with the current position of our business,” said Larry Enterline, chief executive officer of Fox, during the company’s first public webcast with analysts and investors.

Enterline called it a “solid quarter” and reminded investors who are new to covering the company that while the IPO was recent, the history of the company dates back to 1974 when founder Robert C. Fox Jr. first started developing high performance shocks for motocross racing bikes. Since then, the company has expanded into providing products to mountain bikes and multiple motor vehicle types.

“We are a premium established brand,” he said, noting significant relationships with 150 original equipment manufacturers and 2,300 retail dealers and distributors around the world.

In the second quarter, strong sales growth for both mountain bikes and powered vehicle products pushed sales numbers to $70.3 million, up 15.8 percent from a year ago. Sales of mountain bike and powered vehicle products increased 17.7 percent and 12.3 percent, respectively, for the second quarter of fiscal 2013 compared to last year. Net income for the company climbed 32.5 percent to $5.7 million.

Company executives also outlined several areas of potential growth for the company including electric bikes, recreational vehicles and commercial trucks. The company is also open to acquisitions, increasing sales in Asia and South America and exploring related products for customers, executives said.

 

Fox Factory Holding Corp.

WHAT: Fox Factory Holding Corp. is the holding company of Fox Factory Inc., a designer, manufacturer and marketer of high-performance suspension products for mountain bikes, all terrain vehicles, snowmobiles and other off-road vehicles. Fox sells to other manufacturers as well as retailers and distributors.

HEADQUARTERS: 915 Disc Drive, Scotts Valley, CA 95066

INFORMATION: 831-274-6500; www.ridefox.com

HISTORY: Robert C. Fox Jr., an engineer and motocross racer, developed a new kind of high-end suspension product and began producing them in 1975. The company was incorporated in California in 1978. In 2007, the company, under a new holding company, incorporated in Delaware. It was acquired the following year by Compass Group Diversified Holdings LLC., which remains a majority owner. The company’s public offering closed Aug. 13, 2013.

LEADERSHIP: Larry L. Enterline, chief executive officer.

EMPLOYEES: The company reported last month that it has more than 1,000 people worldwide, including more than 120 in the Scotts Valley headquarters.

STOCK: Shares trading on the NASDAQ under the new ticker FOXF closed Thursday at $18.38, down 19 cents. Since the company’s IPO on Aug. 7, shares have traded between $16.36 and $19.64.

FINANCIALS: Sales for the second quarter of fiscal 2013 were $70.3 million, compared to $60.7 million a year ago in the same quarter. Net income in the second quarter of fiscal 2013 was $5.7 million, compared to $4.3 million a year ago. Earnings per diluted share were 17 cents, compared to 14 cents in 2012. As of June 30, the company reported cash and cash equivalents of $200,000 with a debt of $65.5 million. After the IPO, which closed Aug. 13, the company had cash and cash equivalents of $5.3 million and total debt was $28.5 million.

GUIDANCE: The company expects third quarter fiscal 2013 sales of $79 million to $82 million and earnings per diluted share of 23-27 cents. For the full year, the Company expects sales in the range of $264 million to $270 million and earnings per diluted share of 61-67 cents.

 

This article on Fox earnings appeared in the Sentinel

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