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Segments
 3 Months Ended
Mar. 29, 2024
Segment Reporting [Abstract]  
Segments Segment Information
Due in part to how we operate our business and to best serve our customers, we manage our activities based on three operating segments: Powered Vehicles Group, Aftermarket Applications Group, and Specialty Sports Group. All of our segments design, engineer and manufacture performance-defining products and systems for customers worldwide.
The following is a description of our operating segments.
Powered Vehicles Group: This segment operates 2 plants in the United States of America. Our premium products sold under the FOX brand for off-road vehicles and trucks, side-by-sides, on-road vehicles with and without off-road capabilities, ATVs, snowmobiles, specialty vehicles and applications, motorcycles, and commercial trucks. These products are sold through both OEM and aftermarket channels.
Aftermarket Applications Group: This segment operates 15 plants across the United States of America. Our range of aftermarket applications products includes premium products under the BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4x4 Posi-Lok, Ridetech, Tuscany, Outside Van, SCA, and Custom Wheel House brands designed for off-road vehicles and trucks, side-by-sides, on-road vehicles with or without off-road capabilities, specialty vehicles and applications, and commercial trucks.
Specialty Sports Group: This segment operates 9 plants and 13 distribution facilities (11 in the United States of America, 4 in Taiwan, and one facility each in Australia, Canada, Germany, Japan, Sweden, Switzerland, and United Kingdom). Our bike product offerings are used on a wide range of performance mountain bikes, e-bikes and gravel bikes under the FOX, Race Face, Easton Cycling and Marzocchi brands. These products are sold through both OEM and aftermarket channels. Our products for diamond sports include premium baseball and soft ball equipment under the Marucci, Victus, Lizard Skins, and Baum Bat brands and are sold through dealers and distributors and through direct-to-customer channels.
Net sales and expenses are measured in accordance with the policies and procedures described in Note 1 – Business and Summary of Significant Accounting Policies within our 2023 Form 10-K.
We measure the profitability and financial performance of our operating segments based on adjusted EBITDA. Adjusted EBITDA provides a measure of our underlying segment results that is in line with our approach to risk management. We define adjusted EBITDA as net income adjusted for (a) interest expense, (b) income tax or tax benefits, (c) amortization including amortization of purchased intangibles, (d) depreciation, (e) stock-based compensation, (f) litigation and settlement related expenses, (g) organizational restructuring expenses, (h) acquisition and integration-related expenses, and (i) strategic transformation costs. Adjusted EBITDA Margin is defined as adjusted EBITDA divided by net sales.
Segment asset information is not presented because it is not evaluated by the CODM at the segment level.
The tables that follow show selected segment financial information including information for prior comparative period. Unallocated corporate expenses are corporate overhead expenses that are not directly attributable to one of our business segments and include unallocated occupancy costs for our corporate headquarters, acquisition costs, other benefit and compensation programs, including performance-based compensation, and administrative expenses such as accounting, finance, legal, human resources, and information technology expenses.
For the three months ended
March 29, 2024March 31, 2023
Net sales
Power Vehicles Group$118,113 $142,247 
Aftermarket Applications Group101,852 138,717 
Specialty Sports Group113,507 118,887 
Net sales$333,472 $399,851 
Net (loss) income(3,496)41,767 
(Benefit) provision for income taxes(1,267)9,378 
Depreciation and amortization 20,451 13,315 
Non-cash stock-based compensation3,906 5,701 
Litigation and settlement-related expenses1,529 978 
Other acquisition and integration-related expenses (1)5,163 4,474 
Organizational restructuring expenses63 — 
Strategic transformation costs432 — 
Interest and other expense, net13,638 3,545 
Adjusted EBITDA$40,419 $79,158 
Power Vehicles Group15,881 17,658 
Aftermarket Applications Group14,869 36,279 
Specialty Sports Group24,057 41,830 
Unallocated corporate expenses(14,388)(16,609)
Adjusted EBITDA$40,419 $79,158 
(1) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations and the impact of the finished goods inventory valuation adjustment recorded in connection with the purchase of acquired assets, per period as follows:
For the three months ended
March 29, 2024March 31, 2023
Acquisition related costs and expenses$678 $1,404 
Purchase accounting inventory fair value adjustment amortization4,485 3,070 
Other acquisition and integration-related expenses$5,163 $4,474