SCOTTS VALLEY — High performance shock absorber maker Fox Factory announced better-than-expected numbers for the second quarter due to ongoing demand for high-end mountain bike- and powered vehicle-related sales. Sales increased nearly 23 percent to $86.4 million and net income climbed more than 102 percent to $11.6 million from a year ago in the same quarter. “Overall the second quarter was a good quarter operationally for Fox,” said CEO Larry Enterline. In a conference call with analysts, he said premium mountain bikes are continuing to buck industry sales trends, which will benefit Fox long term.” The reception for new products was strong. The push into the powered vehicle market met expectations and the company is continuing to push forward with current expansion strategies, he said. “This month marks the completion of our first year as a publicly traded company and during this time our team has continued to execute on our initiatives and has delivered strong financial results across the board,” Enterline said. Mario Galasso, president of business divisions at Fox Factory, said the company is also focusing on growth opportunities such as a family of seat posts and the commuter and urban ebike market, which is the fastest growing category in the bicycle industry. “All these things are underway,” Galasso said. The company is continuing to migrate its mountain bike manufacturing to a Taiwan facility to be nearer to the majority of its suppliers, a move to cut costs and shipping time. About 15 percent of the company’s mountain bike manufacturing is expected to remain in the U.S. to serve domestic suppliers. It is presently happening in Watsonville and Scotts Valley facilities. Last month, the company announced the closing of a public offering of 5.75 million shares of its common stock held by some stockholders, including Compass Group Diversified Holdings LLC, which is no longer a majority shareholder as a result of shares sold. A total of 750,000 shares were sold for $15.50 each, less underwriting discounts and commissions. The company didn’t receive any proceeds from the offering.
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. Headquarters: 915 Disc Drive, Scotts Valley Information: 831-274-6500; www.ridefox.com History: Founded by Robert C. Fox Jr., an engineer and motocross racer, in 1975. The company was first incorporated in California in 1978, and again in Delaware in 2007 before it was acquired in 2008 by Compass Group Diversified Holdings LLC. The company’s public offering was August 2013 Leadership: Larry L. Enterline, CEO. Employees: As of Dec. 31, Fox had about 670 full-time employees in the U.S., Europe and Taiwan, plus part-time employees at its manufacturing facilities to meet seasonal demands. Stock: Shares trading on the NASDAQ as FOXF closed Wednesday at $15.03, down nearly 23 cents. In the last year, shares have traded from $14.04 to $20.75.