Fox Factory Inc., maker of Fox Shox suspension forks and systems for mountain biking, snowmobiles and motorsports, had net sales of $61.4 million for the three months ended Sept. 30, up 66.2% from the same period a year ago.
That included net sales to locations outside the United States, principally to bike manufacturers and other OEMs in Asia, of $42.4 million and $26.0 million for the three months ended September 30, 2010 and 2009, respectively, and $84.8 million and $60.3 million for the nine months ended September 30, 2010 and 2009, respectively. There were no significant inter-segment transactions.
The big jump in sales corresponds with a 66% increase in the company’s order backlog at the end of last year, when many Asian manufacturers ramped up production following massive layoffs and closings in late 2009 and early 2009.
Cost of sales rose 64.6% to $43.3 million or 70.5% of net sales. Gross profits reached $18.1 million, or 29.5% of sales, up 71% from the third quarter of 2009.
SG&A rose 38.5% to $6.2 million, leaving operating income of $10.4 million, up 121.3% from a year earlier. Fox’s accounts receivable doubled to $31.1 million.
Fox Factory Inc.
Statement of Income
Statement of Income
| Three-months ended | Nine-months ended | |||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||
| (in thousands) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Net sales | $ | 61,357 | $ | 36,910 | $ | 128,747 | $ | 86,870 | ||||||||
Cost of sales | 43,290 | 26,264 | 91,324 | 62,523 | ||||||||||||
Gross profit | 18,067 | 10,646 | 37,423 | 24,347 | ||||||||||||
Selling, general and administrative expense | 6,214 | 4,486 | 16,835 | 14,152 | ||||||||||||
Fees to manager | 125 | 125 | 375 | 375 | ||||||||||||
Amortization of intangibles | 1,304 | 1,304 | 3,913 | 3,913 | ||||||||||||
Income from operations | $ | 10,424 | $ | 4,731 | $ | 16,300 | $ | 5,907 | ||||||||
