Fox Factory Holding Corp (NASDAQ:FOXF) Q1 2019 Earnings Conference Call Transcript

May 01, 2019 • 04:30 pm ET


Fox Factory Holding Corp (NASDAQ:FOXF) Q1 2019 Earnings Conference Call Transcript


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Greetings and welcome to the Fox Factory First Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow a formal presentation. (Operator Instructions). As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, David Haugen, General Counsel. Please go ahead.

David Haugen

Thank you. Good afternoon, and welcome to Fox Factory first quarter fiscal 2019 earnings conference call. On the call today are Larry Enterline, Chief Executive Officer; Mike Dennison, President, Powered Vehicles Group; Chris Tutton, President, Specialty Sports Group and Zvi Glasman, Chief Financial Officer and Treasurer.

By now, everyone should have access to the earnings release, which went out today at approximately 4:05 p.m. Eastern Time. If you've not had a chance to review the release, it's available on the Investor Relations portion of our website at Please note that throughout this call, we will refer to Fox Factory as FOX, or the Company.

Before we begin, I'd like to remind everyone that the prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions. Such statements involve a number of known and unknown certain uncertainties many of which are outside the Company's control and can cause future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements.

Important factors and risks that could cause or contribute to such differences are detailed in the Company's earnings release issued this afternoon and in the annual report on Form 10-K filed with the Securities and Exchange Commission. Except as required by law, the Company undertakes no obligation to update any forward-looking or other statements herein, whether as a result of new information, future events or otherwise.

In addition, within our earnings release and in today's prepared remarks, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income tax, non-GAAP adjusted net income, non-GAAP adjusted earnings per diluted share, adjusted EBITDA, and adjusted EBITDA margin are referenced. It is important to note that these are non-GAAP financial measures that we believe are useful metrics that better reflect the performance of our business on an ongoing basis.

A reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures are included in today's press release, which has also been posted on our website.

And with that, it is my pleasure to turn the call over to our CEO, Mr. Larry Enterline.

Larry L. Enterline

Thank you, David. Good afternoon, everyone. We appreciate you joining us on today's call. To start, I will discuss our first quarter business and financial highlights. Mike and Chris will then provide a more detailed update on their respective businesses and brand development. Zvi will then review the first quarter financials and discuss our 2019 guidance. After that, we will open the call for your questions.

We had a great start to the year with record first quarter financial results, our business benefited from continued strong demand and solid