Business Context and Reporting Period
Company: Fox Factory Holding Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: March 31, 2016
Event: Amendment to fiscal year structure.
Effective March 31, 2016, the Board of Directors approved a change from a calendar year ending December 31 to a 52-53 week fiscal year ending on the Friday nearest to December 31. This change is effective beginning with the first quarter of 2016 and is not deemed a change in fiscal year requiring a transition report under Exchange Act Rules 13a-10 or 15d-10.
Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on the administrative change to the fiscal calendar.
Material Changes Versus Prior Period
- Fiscal Structure: Transition from a calendar year to a 52-53 week fiscal year.
- Quarterly Composition: Quarters will now comprise 13 weeks. A 53-week fiscal year will add an extra week to the fourth quarter (14 weeks).
- First 53-Week Year: Scheduled for the fiscal year ending January 1, 2021.
- Historical Data: The Company will not adjust operating results for prior periods. The change will impact the comparability of prior fiscal quarters and annual periods in future filings.
- 2015 Impact: The change will not impact calendar year results for the year ended December 31, 2015.
Guidance, Outlook, and Management Commentary
Rationale: The change was identified as a best practice in connection with the global enterprise resource planning system (ERP) implementation that began in May 2015.
Expected Benefits: Management believes the change will provide better alignment with manufacturing scheduling and improved comparability between periods.
Future Reporting Schedule (Fiscal 2016):
| Fiscal Period | Reporting Period | Report to be Filed |
|---|---|---|
| First Quarter | January 1, 2016 to April 1, 2016 | Form 10-Q |
| Second Quarter | April 2, 2016 to July 1, 2016 | Form 10-Q |
| Third Quarter | July 2, 2016 to September 30, 2016 | Form 10-Q |
| Fiscal Year 2016 | January 1, 2016 to December 30, 2016 | Form 10-K |
Key Facts for Investor Verification
- Verify that future quarterly reports will reflect 13-week periods rather than calendar months.
- Note that the first 53-week fiscal year is not expected until the fiscal year ending January 1, 2021.
- Confirm that historical financial data will not be restated, requiring manual adjustment for period-over-period comparisons.
- Monitor the alignment of manufacturing schedules with the new 52-53 week reporting cycle.