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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
For the fiscal year ended December 28, 2018
OR
Commission File Number: XXXXXXXXXX
Fox Factory Holding Corp.
(Exact name of registrant as specified in its charter)
XXXXXXXXXX
(Registrant’s Telephone Number, Including Area Code)
Section 1: 10-K (10-K)
ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
Delaware XXXXXXXXXX
(State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.)
6634 Hwy 53
Braselton, GA 30517
(Address of Principal Executive Offices) (Zip Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class XXXXXXXXXXName of each exchange on which registered
Securities registered pursuant to Section 12(g) of the Act:
None
Common Stock, par value $0.001 per share
The NASDAQ Stock Market LLC
(NASDAQ Global Select Market)
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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ý
No ¨
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨
No ý
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§ XXXXXXXXXXof this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit such files). Yes ý No ¨
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ XXXXXXXXXXof this chapter) is not
contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller
reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller
reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
If any emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ¨ No ý
Based upon the closing price of the registrant's common stock on the NASDAQ Global Select Market on June 29, 2018 (the last
business day of the registrant’s most recently completed second fiscal quarter), the approximate aggregate market value of the
common stock held by non-affiliates of the registrant was approximately $1,240,176,000. As of February 24, 2019, there were
37,990,546 shares of the registrant’s common stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s Definitive Proxy Statement for the 2019 Annual Meeting of Stockholders to be filed with the Securities
and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this
Annual Report on Form 10-K are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K.
Large accelerated filer ý Accelerated filer ¨
Non-accelerated filer ¨ Smaller reporting company ¨
Emerging growth company ¨
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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K includes forward-looking statements, which are subject to the “safe harbor” created by Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). We may make forward-looking statements in our U.S. Securities and Exchange Commission ("SEC") filings, press releases, news articles,
earnings presentations and when we are speaking on behalf of the Company. Forward-looking statements generally relate to future events or
our future financial or operating performance which involve substantial risks and uncertainties. In some cases, you can identify forward-looking
statements because they contain words such as “may,” “might,” “will,” “would,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,”
“target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “likely,” “potential” or “continue” or the negative of these words or
other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this
Annual Report on Form 10-K are subject to numerous risks and uncertainties, including but not limited to risks related to:
You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in
• our ability to develop new and innovative products in our current end-markets;
• our ability to leverage our technologies and brand to expand into new categories and end-markets;
• our ability to increase our aftermarket penetration;
• our ability to accelerate international growth;
• our exposure to exchange rate fluctuations;
• the loss of key customers;
• our ability to improve operating and supply chain efficiencies;
• our ability to enforce our intellectual property rights;
• our future financial performance, including our sales, cost of sales, gross profit or gross margins, operating expenses, ability to
generate positive cash flow and ability to maintain our profitability;
• our ability to maintain our premium brand image and high-performance products;
• our ability to maintain relationships with the professional athletes and race teams we sponsor;
• our ability to selectively add additional dealers and distributors in certain geographic markets;
• the growth of the markets in which we compete, our expectations regarding consumer preferences and our ability to respond to changes
in consumer preferences;
• changes in demand for performance-defining products;
• the loss of key personnel, management and skilled engineers;
• our ability to successfully identify, evaluate and manage potential or completed acquisitions and to benefit from such acquisitions;
• the outcome of pending litigation;
• future disruptions in the operations of our manufacturing facilities;
• our ability to adapt our business model to mitigate the impact of certain changes in tax laws including those enacted in the US in
December 2017;
• changes in the relative proportion of profit earned in the numerous jurisdictions in which we do business and in tax legislation, case
law and other authoritative guidance in those jurisdictions;
• products recalls and product liability claims; and
• future economic or market conditions.
this Annual Report on Form 10-K primarily on our current expectations and projections about future events and trends that we believe may
affect our business, financial condition, results of operations, and prospects and the outcomes of any of the events described in any forward-
looking statements are subject to risks, uncertainties, and other factors. In addition to the risks, uncertainties and other factors discussed above
and elsewhere in this Annual Report on Form 10-K, the risks, uncertainties and other factors expressed or implied discussed in Item 1A, "Risk
Factors" of this Annual Report on Form 10-K could cause or contribute to actual results differing materially from those set forth in any forward-
looking statement. Moreover, we operate in a very competitive and challenging environment. New risks and uncertainties emerge from time to
time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in
this Annual Report on Form 10-K. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements
will be achieved or occur. Actual results, events, or circumstances could differ materially from those contemplated by, set forth in, or underlying
any forward-looking statements.
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For all of these forward-looking statements we claim the protection of the safe harbor for forward-looking statements in Section 27A of the
Securities Act and Section 21E of the Exchange Act.
The forward-looking statements made in this Annual Report on Form 10-K relate only to events as of the date on which the statements are made.
We undertake no obligation to update any forward-looking statements made in this Annual Report on Form 10-K to reflect events or
circumstances after the date of this Annual Report on Form 10-K or to reflect new information or the occurrence of unanticipated events, except
as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you
should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any
future acquisitions, mergers, dispositions, joint ventures or investments we may make.
Fox Factory Holding Corp.
FORM 10-K
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Page
PART I.
Item 1 Business 1
Item 1A Risk Factors 10
Item 1B Unresolved Staff Comments 26
Item 2 Properties 26
Item 3 Legal Proceedings 27
Item 4 Mine Safety Disclosures 27
PART II.
Item 5 Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 28
Item 6 Selected Financial Data 30
Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations 32
Item 7A Quantitative and Qualitative Disclosures About Market Risk 49
Item 8 Financial Statements and Supplementary Data 50
Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 50
Item 9A Controls and Procedures 50
Item 9B Other Information 51
PART III.
Item 10 Directors, Executive Officers and Corporate Governance 52
Item 11 Executive Compensation 52
Item 12 Security Ownership of Certain Beneficial Owners and Management