Holley is pursuing growth through managing supply chain issues currently dogging the auto industry, chief executive Tom Tomlinson told CNBC’s Jim Cramer on Wednesday.
“Supply chain has definitely been a challenge, but we’ve managed it effectively,” Tomlinson said in an interview on “Mad Money.”
“We’ve left some dollars on the table though still, and we’re operating with a bigger book of business backlog than we’ve ever had, and so that’s one of our focuses, to really unlock more growth by working through those supply chain issues,” he added.
Stock of Holley, which makes aftermarket auto parts for high-performance vehicles, fell 0.78% on Wednesday to $14.01. The company released its fourth-quarter earnings results on March 3, reporting better-than-expected sales and EBITDA and a positive 2022 outlook.
When Cramer asked if Holley could become a “consolidator for [the auto parts] industry” through mergers and acquisitions, Tomlinson said that the company “absolutely” could. Holley added Arizona Desert Shocks, Baer Brakes, Brothers Trucks and Rocket Racing Wheels to its brand portfolio during the fourth quarter.
“We’ve had a lot of experience, very successful experience with M&A, we have a very methodic program and it’s part of our strategy to accelerate the company’s growth,” he said.
Holley, which went public in 2021 through a merger with a SPAC, was featured on Cramer’s list of profitable, newly-public stocks to watch in January.
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