FOXF - Earnings call transcript Q1 2021 | Fox Factory Holding Corp.

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Operator

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Fox Factory Holding Corporation’s First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note this conference is being recorded. turn of over Development. Investor to Vivek your like Director Bhakuni, Relations now the to conference host, I’d and Business you, sir. Thank

You may begin.

Vivek Bhakuni

quarter Officer our Chief afternoon, Fox Officer; and I’m Good welcome our Executive today XXXX Chief Humphrey, first Financial joined Dennison, you. call. Treasurer. earnings Mike Thank by Scott conference and and Factory’s to

the Mike from for the results will the review financial remarks provide First, closing and business outlook then will Mike. by updates, then Scott followed quarter

call up should the Time. your questions. the We release, everyone open will out Eastern for By now approximately have earnings then X:XX to access today which went at

throughout If you refer to call, Factory it’s portion release, Investor we as have the Fox Relations company. the FOX had that not of our to investor.ridefox.com. this review on at the chance will available website or a note Please

otherwise. herein, update new and as forward-looking required of Securities to in the XX-Q could as forward-looking known a outside the can remind Except Commission. I a in the the implied the or significantly the achievements and may such make statements. and to Form or such Before Report additional filed that forward-looking the statements latest or undertakes performance, future results, obligation company’s Important which Exchange law, whether questions. with events, we information, statements to from remarks like contribute any your company’s achievements Annual statements factors cause differences statements expressed everyone begin, contain Form or and are company of future results, of and and risks in are to Such no management that forward-looking performance, detailed cause by or would prepared control XX-K other by or to number response uncertainties, many result unknown on differ involve

Reconciliations useful will to financial metrics we the release, to which In non-GAAP our are addition, of direct reflect the also performance CEO, turn business believe refer our that included evaluate business our as remarks on And pleasure in we today’s financial my GAAP and to appropriate earnings to ongoing over these of where our most measures press basis. to prepared Mike within is better financial release, Dennison. on been in website. posted it these call measures with comparable has non-GAAP that, are our their measures today’s an

Mike Dennison

and afternoon. the good Vivek, time today’s appreciate for you, taking us Thank to everyone We call. join

For success The report dedication, challenges record-breaking current history, our our first to the incredible can quarterly which this environment. company’s continues adaptability the with associated by quarter revenue of maneuver attributed through credit to powered for to be divisions. team, endless our proud both in results, in and the I’m highest the performance agility,

continued portfolio, Our products also valued to consistent the supply dynamic brand team has our still remarkably making This reflects managing operationally. of sustained team’s leading our performance customers, to chain commitment and our improvements executed continuous realities. while strength deliver high-performance while

to numbers. the Turning

earnings the with top expanded of XXXX. an performance our the per last The of which were sales deliver versus bottom to compared quarter products, a profitability adjusted to we reported year. to quarter and consumers. This an and performance our first $XXX.X evidence over from line consistently staggering foundational can resonates of perspective, From quarter diluted first our do competitors. of is that attributed can engineering to portfolio and that $X.XX, first compared XX.X% our Our of further service be high-performance drivers end of of XXX% our brands customers of differentiate robust the increase that premium quality, our continues non-GAAP increase million, share $X.XX

necessary investments the to demand our Sports of Specialty up discipline behind Group, compared while environment. product unprecedented sales We and to growth highest current XXXX, the to strong continuing people, under were making products, with XX.X% and supply a dynamic Starting sheet. to team’s quarter quarter advantage first operational ability balance recognize in performance make revenue SSG’s ever. competitive build this technology, operate the Another our chain is and effectively continue

we mentioned leveraging capitalize I in OEM As on restocking unprecedented relationships. during supplier rider and last the base earnings expanded cycle continue call, to this by the strong

issues Our to as shock container to volumes. availability commitment from yet for other logistical say, performance-defining supply quarter products challenges. itself we unit had record for to had innovation Needless fork speaks to create and we several another chain shipping

team backlog customers execution OEM’s our expectations, successfully by order costs our the operations meet members strong our demonstrated trends. However, evolving and manage to helping thus controlling and managing

an addition, In of share. tools model to empowering ahead and potentially year nearly the capture team schedule market six typical complete all to timeline sell-in sales months our accelerated additional SSG team our to adapted XXXX

the forward very projection Looking to rest the XXXX, demand of remains strong.

to supply improvement. and of we for challenges, growing identify therefore and to However, suppliers collaboration our with the cognizant customers further chain are work continue opportunities OEM closely we

also see our cases the North we Powered was dealership of quarter the target, revenue as Group. had up-fitting of our Growth posted to of current environment a a moving quarter to with lower into result COVID the shifting of compared by fourth XXXX, was than key I’m supply productivity. our products, to supply increase also chain enabled business business. products. backlog versus and our penetration one Powersports ongoing major in our automotive to and of as report to demand our first as Vehicles the We PVG for customers. contributor faced OEM which performance us shortage loss to a this our the increasing robust our our American typical robust including facilities model XXXX. generally to aftermarket demand year chain the proud business long-term record compared XX% OEM byproduct grew in for customers that the A at OEM fewer Now PVG quarter current challenges changeover We the demand

track. remains on transition factory Georgia ongoing Our

any continually look for transition we as opportunities lessons identify expansion. our costs a to We are and duplicative closely monitoring margin with learned margins associated that for

we expect to see this As year. stated, previously have the improvements in latter of we margin half

partnerships. Powersports OEM our Turning to

are been you Powersports on Live Bypass. experiencing Kawasaki KRX the introduced with has growth, the aware, growth. To Valve Teryx Podium X.X this shocks industry FOX capitalize Internal featuring our significant As

INDY and first the easy new Polaris In featuring QSX and Switchback two addition, snowmobile trail. deliver offer the XC our major adjustability XC spec snowmobiles, that on pre-ride and launched is high-performance This outstanding FOX performance shocks Polaris win. our off

the which in accomplishments our environment. return a to to on more world, is beginning to racing normal Moving

in Every Hammers in its top podium One biggest sweep TX Challenge the Desert Match the wins the place of QX. XXXX, took winning top Grudge and including three classes. and The continued year, both Unlimited King Challenge Trucks with of of with the wins XXXX Man two spots. in FOX races the top-five the the of the a legacy

which ways, our In with high-performance pandemic four start corners. In closing, addition, every not I’m competition ULTRAX pleased bulk to The challenging the stock us many new run coil-over pneumatic bump the all stability over vehicle, a remote our in results Ford off-road tuned in FOX and are reservoirs performance race class. We on of very suspension their XXXX will new shocks recognize and stop lingering Bronco day. unveiled XXXX’s FOX risks great year. exceptional features still with the is the and

performance businesses our to feel are XXXX. strong defining will complementary to help with products Scott. of performance diverse However, set us continue the I turn deliver that I’ll And and in call confident very over that,

Scott Humphrey

of of the first begin by Thanks, guidance. quarter XX.X% Mike. both The $XXX.X by last first Sales Good our channels. OEM high of afternoon, the compared sales Specialty demand our in I’ll then quarter review financial first in million, increase the sales and over increase in $XXX.X of quarter XXXX million driven aftermarket everyone. going an results versus Sports to delivered Group in quarter XXXX. and in XX.X% year, the same period the were an

in Our quarter the in Group compared to XX% SCA, primarily due we in of which Powered XXXX. growth delivered Vehicles a the increase and business of XXXX, full March a to quarter Powersports higher acquired first of sales

XXXX. revenue grew sequentially, Looking to compared QX over XX% of SCA

XXXX margin gross basis revenue PVG point by points of year, XXX by XX.X% QX was channel period. quarter XXXX. gross prior-year duplicative also of demand Non-GAAP by from the first SCA margin results, quarter The by to increased gross impact offset year-over-year, during the XX% of costs a sales basis inclusion accrual driven bonus costs. basis Factory’s mix operating a of this primarily first The the X.X% quarter to shift acquisition, in in increase SCA $XX by shutdowns. compared At employee-related last the a for year increase the SCA’s of increase incentive expenses QX were higher $XX.X our XX.X% facility Georgia year. end the partially operating was the or expenses operating first and a of dollar compensation. of million the sales operating acquisition-related to costs, to reduced the full in including XX.X% we was in increase lower costs as increased in the due in expenses versus the Fox transition. on expenses due quarter XXXX, in a margin million XXXX, pandemic-related lower Excluding strong in COVID-related QX drastically of of aftermarket offset full of well XXX channel. as, of due or in quarter the driven in The in XX.X% from was Total primarily to

expenses operating decreased percentage a XX.X% our the as XX.X% expenses period. by prior-year of non-GAAP sales, in compared operating basis Looking XX to at to points non-GAAP

a costs, and higher primarily in OpEx expenses and primarily incentives. at marketing to commissions increased of due driven quarter Looking and by more costs detail, up SCA were by personnel $X.X sales sales million full

future by $X.X costs. were addition, down acquisition-related by expenses R&D $X million initiatives. up approximately costs million were and growth driven G&A support product to lower In

in better for $X.X on year. the quarter compared mix, and million XXX quarter in I For XXXX million share best EBITDA of tax to XXXX. basis, to the quarter XXXX XX% benefits or XX.X% quarterly attributable long-ranged due SCA million related results. our is of points $X.XX our period. primarily to of EBITDA to margin quarter ever. rate XX.X% our in the higher the XX% reserve, the to the $XX.X $XX tax to margin want $XX.X approximately $X.XX X.X%. $XX excess last was the our foreign net income The increase rate per first due $XX.X offset to allowance the in of first from Adjusted compared impact adjusted prior-year delivered of the share, the valuation million diluted positive in This million performance the diluted adjusted EBITDA an to than adjusted by quarter GAAP XXXX. effective of compensation of quarter and to was on in our diluted Non-GAAP tax first compared of net increased to basis first EBITDA our guidance On per credits. to Furthermore, a previous or lower primarily team first We million non-GAAP by XXXX increase excess congratulate product expanded increase same compared is in quarter in or FOX release stock-based was XX%, quarter, to $XX.X impact of first of in of $X.XX earnings compared first the sales, XXX% $X.XX income year. per an share million, of to last

our on focusing Now balance sheet.

timing reflect decrease of vendor on business. to compared million. and compared the payable was assets The $XXX.X higher million. inventory, timing Accounts net debt sales, on of outstanding April $XXX.X X.X deposits for of and with Inventory total million $XXX.X X, million in $XXX.X million. was million, current pro $XX.X to compared quarter, accounts million was million our receivable, forma $XX.X compared chassis quarter on Prepaids to prepaids ratio assets as X, The to to $XXX.X other ended was XXXX, XXXX first payments. times. well XXXX, accounts to our the changes Accounts was $XXX compared million hand and $XX.X payable million. and was we were to year-end leverage current basis $XXX.X million first $XXX.X a other approximately the receivable which on primarily ended and compared due cash For in as up-fitting our January

facility we hand have under our objectives. $XXX we compared uncertainty plant, and Gainesville, XXXX. on financial through facility execute any to that we are long-term of to credit net XXXX capacity equipment have our new at X, manufacturing increased million to while ongoing the Between of liquidity Our property, $XXX.X borrowing investments economic continuing cash the to manage on end in confident and as the and million increase $XXX.X reflects The million, in Georgia. our of April the proactively strategic strength

Now turning to guidance.

raising XXXX. second guidance and We our year full our are for both quarter

and expect to sales XXXX, per earnings to second $XXX $X.XX quarter million share range per share. range of in $XXX $X.XX adjusted of the diluted of million, in the the For we non-GAAP

we that range per of For $X.XX share. non-GAAP earnings the in full in the billion year to $X.XX the expect billion adjusted of share XXXX, range per $X.XX also and I’d sales EPS the be to to $X providing without diluted of like necessary note such difficulty elements to guidance provided actually not GAAP we’re due as efforts cannot it predicting guidance and reconciliations. on unreasonable to provide the

rate to year of tax the XX%. lower to For XXXX tax previously the be the closer XX% we end full to of range guidance, expect provided

the With earnings and call supply recovery. remainder the over to last for mentioned XXXX the that, turn to economic we into quarter, issues I’d call chain back gain as I As we plan to clarity our of on like post-COVID guidance update Mike. each

Mike Dennison

Scott. excited seems by transitory The shift you, PVG a the than momentum consumer tectonic be SSG tangible demand in early to pandemic I’m our both the created continues about and XXXX. very our strong. just in for in bubble. more Thank products The demand

majority the and believe subside challenges we as related will but pandemic-related around to the supply the have processes in hopeful commodity of I’m that the the challenges expect to price to and inflation We in future place here headwinds. to continue we these foreseeable world. vaccinations progress chain continue, mitigate

Our consecutive team quickly records. into those incorporated delivering year revenue the in lessons learned three has quarterly past

for next phase growth, foundation of edge management In lay bolstering our team. and the further to extend we are our the addition, competitive to

amplify We three have positions our to new complement existing and created organization.

fundamentals engineering, experience, Rich of and be exclusively focus which and operational business. to Strategy. promoted leadership allow business First, the President extend of supply to sales team, and Tom Winters, PVG will Fletcher Tom the we the of of President and chain a on strategic PVG’s Corporate brings PVG wealth

Inclusion elevate of feel team, promoted development Jackie value to Second, capabilities private for sectors partners a to efforts our workforce as governance, ESG. and has variety Chief re-change confident very domestic we Officer the and plans, shareholders, FOX. in new Thus, aims well about Toby as new a and would be experience she we Legal wealth to of employees. Martin and to Toby now open Officer. Purpose corporate Operator? and diversity public as ranging our Chief the our on I also and as will consumers, questions. engagement be as matters & our hired at She inclusion, securities, finally, well from global Merchant And our management acquisitions. maximum like to execution our to I call deliver the both

Operator

Larry ahead. go And first [Operator from question with Instructions] take our Solow we’ll Securities. Please CJS

Larry Solow

afternoon, Good guys. for Great. the thanks taking And questions.

– Just guess... I

Mike Dennison

Larry. Good afternoon,

Larry Solow

guess, tectonic on e-bikes, and starting are already you categories? guys lower drivers, new And indeed. I of a XX% little – is a bike? pretty other more. maybe the point that – but back seeing it’s you to of that the the bit of tectonic a higher entrance didn’t that some – same more discuss you on maybe – I are you Sports, into from called Certainly or helping points, mentioned, any into sort at You price with are see is maybe it. you better to sort category sort just shifting maybe in Could What shift, even maybe start FOX Specialty think you growth delve price

Mike Dennison

of distribution of this continues the be we’re itself Yes, a course, now. to our restocking One, process. empty. of are a that Larry, Most the dynamic just of that it’s I in are centers part kind significant to things of think which bunch is right lending

all we through to So build, what the an end we consumer. way channel the sell

levels. really So, started we process some sort inventory haven’t of centers that distribution to back restocking to get realistic

you’ve and So, Europe in I’ve the same the led continues the time, the to and of past of talked on. product in going change and U.S. got as that that grow, expansion the demographic line consumer e-bikes by specifically. the At

that and of which that things kind what of this bike of all between I’ve new mountain bikes, kind said phenomenal. are and a really growth a that bikes can as fit to well possible. As these do e-SUV has others bike before you year been The around city

any not of to one XXXX number and a demand that thing, point. And significant drive it’s cycle. it’s we continuing continue portion see So through XXXX things good with at this this a

to the continue So, demand too that’s to early see but to points we to XXXX, call for outsize now supply. everything going for

Larry Solow

leverage sort of market this you’d the material Are continues ability to relationships key your so And of as and demand. a like rapidly? advantage. taking sort broader your sounds share base expand meet It you competitive to that’s

Mike Dennison

believe But do comment share. as right early that’s on share know. process chain, a year responsiveness as for innovation. It’s believe XXXX taking share really you supply we’re on we’re as little do well model because I taking in to I product now specifically, based to

I So, leverage maximize try we’re proving to elements far those and to our distribution two itself both OEM think going quite so relationships. to And of to it’s well. work

Operator

Rafe from of ahead, please America. question with Bank Next Jadrosich, go

Rafe Jadrosich

Thanks the quarter confidence fourth than three maybe you’re that Hi, my To lot ago taking the you great to by your for by. what’s good see by just talk third confidence a and the second, question. quarter. you raising didn’t Can that’s months the you about – afternoon. raise giving you’re obviously But giving beat? start, it’s about more guidance than beating more guidance a you

Scott Humphrey

Yes.

I think a things, couple of Rafe.

quarter clear. each to lot to chain our continues And of around said little ability strong that chassis. look as sort and we update the we a picture of business bit was became uncertainty as would more supply guidance bike a get our there the and think I last quarter,

about sequentially SCA in seen talked over remarks that in the QX. versus up we’ve being we XX% think prepared – I

been able business. So for get to we’ve out-fitting chassis

As earlier, bike first I look to business said And mentioned, like feel happening it’s Mike the just restocking strong. continues yet. the really doesn’t as

and at shelves. looking demand restocking meeting not still We’re

And next so, that question maybe? we forward to Is We we the Operator, year our look Okay. lost are helpful? gaining rest of more into confidence outlook. this as Rafe?

Operator

to Next Truist Securities. Mike go Swartz Please with ahead.

Mike Swartz

Hey, guys. Good afternoon.

a – mile changeover the you’re we’ve everything about delayed to, to be questions. your the few about appears shortage auto chip mean, chain, One Just talking that a pertaining of supply and heard I now. had

of efficiencies up, things that about? So, just Georgia in gain the talked some we’ve synergies and plant, of the to the kind of of terms integration track holding you or there is on

Mike Dennison

chip Yes, good not holding relative do it’s majority transitions timelines relative But up kind of No, that’s the really or is this line Powersports Mike, Georgia. delays from function And It’s an needs. moving any We of really of afternoon. not really function us the issue product all at Watsonville. of not a automotive to or adjust a to at shortages. with point. which

feel obviously So, and ongoing about we of some good shortage an for The it of is for pretty at feel guys. it’s the thing automotive And the full as you challenge the year. challenge on for chip guidance great launch still automotive it. mentioned, our dates. kind And us basis does full-year or long-term I I above think about a still But PVG. for

Operator

from with Please question ahead. Next Stifel. go Jim Duffy

Jim Duffy

guys. Good afternoon. Thanks. Hello,

Mike Dennison

Hey, Jim.

Jim Duffy

the Sports of the inventory inventory business magnitude to is for necessary turning in A the X How way centers start frame to about of me. wanted that? Is the the a couple use a to and inventory there catch-up? calculate Specialty distribution been you forth. that at guys deficiency yearly so questions do and think I on You’ve deficiencies? metric good inventory times, to about channel

Mike Dennison

Yes.

a the of going as can that basis about months five be centers Usually, think back good to out there’s is door. I question. think way get fast the in – through about normal basis. they it the between center inventory distribution as Today’s on to eight and Jim,

So, call less than it two weeks.

you eight So months anything. potentially that center inventory if restock having means a you’re from distribution sell center – didn’t

Jim Duffy

on And power helpful, shift wanted Super sense. vehicle. I Makes Mike. to gears then

even to are as further? the How and business and So the half maybe chassis? that latest look for Tuscany on year back access the into what’s you the you SCA positioned of

Mike Dennison

QX. that was done of lot in good good work a QX really felt QX. function did I in And a do. feel we the we about what mentioned, about of obviously. We QX, We as And earnings late call,

working this out of automotive guys year So we’re of terms shape relief Most good half pretty said back the that and some in QX. QX about in confident have we we’re still chassis the getting publicly. the quarter. kind in of door. of talked And They feel about

us. helps That that confidence. So gives us some

QX is, perspective is general is my guess pretty I QX great, So, good.

it’s little us make to out. working QX, QX locked for have a sure And to it’s early then So yet great.

Operator

to Bank from of Rafe We’ll Jadrosich Please follow-up. America move ahead. with next go a

Rafe Jadrosich

offset margin shift, material in going you some Hi. pretty And This that is are more those level you – then was Thanks. pressures? The do import despite cost shortages but think are forward? talk this going sustainable that container gross level you referenced. we’ve you the and than there past. that’s quarter the gross about margin helping how what raw shipping Is we forward? the of mentioned this higher a seen in expansion to strong Can other about definitely things a mix

Scott Humphrey

margin Yes. we and to that I’ll talked I see up about last talk the is Rafe, guess. fully benefits Georgia quarter transitioned. We once first, gross

model here forward. QX positive to you about where But growth changeovers, a the we a the had gross effect the OE gross bit love margin. in mix I’d because tell going feel being margin be which and margin Yes, great that business, about tends in quarters year higher on we standpoint strong a of so, from had PVG think to even really lower a when lower little little And you. definitely

everything so, kind of And margin perfectly a from standpoint. gross played

really this to the nothing do to with changeover So had Georgia.

but to positive yes, percentage. OE a play more to with forward, lot mix little offsetting a your elaborate Maybe think a But, bit. transition in shift back Mike question, had wants will of little where higher toward on bit back negative shift original going I we levels mix QX. that a normally possibly of we these at be it can we hopefully so, And be would

Mike Dennison

American redundancy workforces only think is North was we add Rafe issue handle QX to Scott, QX in And thing and and hampered in experience right. North forward more And productivity a and in perspective get a from the I view a in message degree. and issues as other I’d will American a in that, think you. which productivity large more pretty of hopefully in facilities, The that’s that absentees that we efficiency cetera. give obviously by consistent our Yes, et in pandemic move helps COVID didn’t mirror facilities we that be of the I can COVID rear

Operator

We’ll Securities. from with Mike take ahead. follow-up a Swartz Truist Please go

Mike Swartz

Hey guys.

that question some think that The follow-up COVID cost and a gross in on about productivity quarter out margin. issues. COVID? your does am right $X further in had for you two, your any and adjusted to guidance back been I EBITDA? called related issues – productivity reflect I to saying Just And One, I think million EPS to hasn’t you the related added then

Scott Humphrey

COVID The year, think last – have we I Mike. add-backs some Yes.

added And last yes, again. year, material nothing that was what year that question? have of Mike second was back. million part Operator? recall I’d your Maybe been lost we this It $X.X Mike, but would think I the

Operator

Please Solow next We’ll Larry ahead. our follow-up take CJS from with Securities. go

Larry Solow

Thanks. Great.

mentioned shift vehicle side power is am more You suppose shift. on that aftermarket the side. mix the mix I on the assuming I and Mike

of really of is you’re So things the me that market. into, question kind that driver, of interesting the SCA the more some sort that doing and in the is leads up-fitting

Mike Dennison

guys. apologize, Good question. I Yes.

to line. get is making in and system limited out one kicking getting back you’re you you the and question think I

But mention different that terms fact experienced into in to in not we aftermarket QX right. And us, legacy that. was an the this than we the a had apologize – we in And backlog you large in also what couple the last shift, saw quarter. for up-fitting business product that was also It’s lines, So, line different as between the quarter, not of more It’s are of quarter next in for yeah, And past. a things. did product channels. significantly a great shifting business to of see. larger mix which QX sort only not was we’ve I you but

of just – or QX able million came outstripped supply $XX aftermarket. in the between demand we’re So, we again and $XX in million the backlog

robust a demand up-fitting. as just we’re in seeing really curve So as aftermarket, well

mentioned call, to space. I in that strong large continues be our the As on incredibly with customers Powersports

Larry Solow

Got it. Thanks.

Operator

[Operator Stember we’ll with King. Please CL Instructions] to And move go next Scott ahead.

Scott Stember

taking Good my afternoon. for And questions. thanks

Mike Dennison

Hey, Scott.

Scott Stember

back bike business. the Just bit a see little hop over to

it talked across above gangbusters OEM just it’s board. just assume that’s Is other, about aftermarket general the going there to off fair stronger just went charts? that right or the You strength than now? the Is everything and one

Mike Dennison

strong. They’re incredibly both

So products. the end at soft some had some a that necessarily little we and type than other. say one I the in would shortages the other wasn’t better the aftermarket our container QX that of bit quarter goods actually pushed of

then, question product by lower – business is And cost your demand. that, So, the around, think driven is aftermarket the OEM getting answer to just I it should strong. a function that offerings, that I was some answered I know was the again of have logistics no. trying to find growth of et really and the And was cetera? to is support demand more do than

high-end our on our That’s focused premium want necessary supply customers still today. what We’re products.

what we’re And focused so, that’s on.

Scott Stember

right. All

suspension last point? proliferation it’s commercial that at a OEMs Just vehicle, there. application question toward some the about any into the Could been any talk I on you have you know aftermarket. working way the its successful

Mike Dennison

Yes.

aftermarket the in working still use. We’re

that so talked demand [indecipherable] other trying categories to aftermarket in level, the business well some as at of the product the owner-operator we into the category we’re past. about and still And fulfill as, driving the

solution. product along we’re ready. And growth new for the in working better way We of will that’s there. to work application we’re still We’ve ways I probably cetera toward et on front us a OEM offerings, lot to – think before But that we of in when got the be positioned future. designs, OEM get new

Scott Stember

you. Thank it. Got

Operator

Glaessgen Question Jefferies. with ahead. from Anna go Please

Anna Glaessgen

taking you PVG? the segment I the speak my afternoon. Parts from hybrid Could spoke you a on question. for maybe good saw opportunity recently Thank you to Hi, Performance Jeep vehicle. this Kit within for Lift

Mike Dennison

Jeep Anna, what part the talking was about? Performance you’re

Anna Glaessgen

kit they lift a announced? was Recently, that there

Mike Dennison

Yes.

So really applications used expanding all portfolio. the aftermarket those of type to

One platforms in that expansion things deliver do to tried more different as that as really across the spaces. diversify trying many to another example and products and of we is we of can just the was

So, on the tend opportunity looking electrification especially, at those to kinds see of aftermarket we space in parts more for an basis, initiatives the as on electrified and vehicles. ongoing

Anna Glaessgen

you. Okay. Thank Great.

Operator

To Baird. ahead. Please go Kennison with Craig

Craig Kennison

And it. Yeah. Thanks a lot. I appreciate congratulations.

So us shed wondered M&A ago capital that. I appetite And you the generated an priorities? give like and light environment the you year, then a if on an ton. some what have just maybe of little raised a for capital you’d your you’ve last bit looks update year a if in on

Scott Humphrey

Craig. This is Scott. Yes.

For sure, market. have an M&A we for the appetite

you did and equity they on the we to raise, when offense. I we it doing like a go year. at think think envisioned had past close the where we the the to felt be I to valuations for were time know don’t been we at

And so, our we’re going at interested in pay in going guess, forward, while minds. to M&A not that much – anything look I continuing moving to we’re too very not we’re do to

We issues love some currently. spend right and aware price of haven’t I the And thing the found cash to absolutely, that the But the of just so I’m we And on capital I’d right need business. acutely right yet. to have go that structure the right we at one. completely find understand

Operator

[Operator Instructions] are further there at this no it appear questions time. does And

Mike Dennison

Thank We Fox in for everyone you. us. interest your appreciate joining thanks Well, Okay. Factory.

Fox Factory Holding (FOXF) 9 May 212021 Q1 Earnings call transcript