Business Context and Reporting Period
Company: Fox Factory Holding Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: December 21, 2020
Subject: Entry into a Material Definitive Agreement regarding the expansion of manufacturing and operations capacity in Hall County, Georgia.
Key Financial Metrics
This filing does not report standard financial performance metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on a specific capital expenditure agreement.
| Metric | Value |
|---|---|
| Total Stipulated Sum for Design-Build Agreement | Approximately $47.2 million |
| Additional Costs (Second Amendment) | Approximately $10.7 million |
| Facility Size | Approximately 350,000 square feet |
Material Changes
The Company entered into Design-Build Amendment No. 2 to an existing agreement with Carroll Daniel Construction Company. This amendment modifies the original agreement (dated July 24, 2019) and the first amendment (dated December 23, 2019) to include:
- A schedule of interim milestones, durations, and material dates for the construction work.
- Remedies for the Company if the Design-Builder fails to meet agreed milestone dates.
- An increase in the total contract value to approximately $47.2 million, reflecting an additional $10.7 million in costs associated with the facility's design and construction.
Outlook, Risks, and Management Commentary
Management Commentary: The expansion is part of previously announced plans to increase manufacturing and operations capacity at the Gainesville Industrial Park West in Gainesville, Georgia.
Risks and Contingencies: The agreement includes specific remedies for the Company in the event of performance delays by the Design-Builder. The filing notes that the description of terms is qualified by the full text of the Second Amendment attached as Exhibit 10.1.
Unusual Items: None reported in this filing.
Investor Verification Checklist
- Verify the full text of Exhibit 10.1 (Amendment No. 2) for detailed milestone dates and specific remedy clauses.
- Confirm the impact of the $10.7 million additional cost on the Company's future capital expenditure budget and cash flow.
- Monitor subsequent filings for updates on the construction timeline and any further amendments to the Design-Build Agreement.