Generac Holdings Inc. (NYSE: GNRC, the Company), a leading
designer and manufacturer of generators and other engine powered
products, today reported that Generac Power Systems, Inc. (the
Borrower and the Company’s wholly owned subsidiary) is planning to
refinance its existing credit facility which is comprised of a
Revolver and Term Loan that mature in November 2012 and November
2013, respectively. The new senior secured credit facility is
expected to be comprised of a Revolver, Term Loan A and Term Loan
B, and proceeds will be used to refinance the Company’s existing
credit facility and for other general corporate purposes. Final
terms and structure of the new credit facility are expected to be
determined over the coming weeks.
The Company expects to report total consolidated cash at
December 31, 2011 of approximately $93 million, including
approximately $57 million at the Borrower, and total outstanding
debt at December 31, 2011 of approximately $598 million. At
September 30, 2011, the Company previously reported
last-twelve-month’s Net Income and Adjusted EBITDA of $76.1 million
and $169.4 million, respectively. Pro forma for the Magnum Products
acquisition that closed on October 3, 2011, last-twelve-month’s
Adjusted EBITDA as of September 30, 2011 would be $187.8 million,
assuming Magnum Products was acquired on October 1, 2010. This
amount includes $2 million of pro forma cost synergies expected to
be implemented during fiscal 2012. All amounts are unaudited.
About Generac
Since 1959, Generac has been a leading designer and manufacturer
of a wide range of generators and other engine powered products. As
a leader in power equipment serving residential, light commercial,
industrial and construction markets, Generac's power products are
available through a broad network of independent dealers,
retailers, wholesalers and equipment rental companies. The company
markets and distributes its products primarily under its Generac
and Magnum brand names.
Generac company news is available 24
hours a day, on-line at:
http://www.generac.com.
Forward-looking Information
Certain statements contained in this news release, as well as
other information provided from time to time by Generac Holdings
Inc. or its employees, may contain forward looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from those in the forward looking statements.
Forward-looking statements give Generac's current expectations and
projections relating to the Company's financial condition, results
of operations, plans, objectives, future performance and business.
You can identify forward-looking statements by the fact that they
do not relate strictly to historical or current facts. These
statements may include words such as "anticipate," "estimate,"
"expect," "project," "plan," "intend," "believe," "confident,"
"may," "should," "can have," "likely," "future" and other words and
terms of similar meaning in connection with any discussion of the
timing or nature of future operating or financial performance or
other events.
Any such forward looking statements are not guarantees of
performance or results, and involve risks, uncertainties (some of
which are beyond the Company's control) and assumptions. Although
Generac believes any forward-looking statements are based on
reasonable assumptions, you should be aware that many factors could
cause them to differ materially from those anticipated in any
forward-looking statements, including in particular (i) the
Company’s ability to complete, on terms satisfactory to the
Company, the negotiations relating to the proposed new credit
facility and (ii) the completion of the Company’s financial
statement audit as of and for the period ending December 31, 2011
in a manner consistent with expectation.
Should one or more of these risks or uncertainties materialize,
Generac's actual results may vary in material respects from those
projected in any forward-looking statements. A detailed discussion
of these and other factors that may affect future results is
contained in Generac's filings with the U.S. Securities and
Exchange Commission (“SEC”).
Any forward-looking statement made by Generac in this press
release speaks only as of the date on which it is made. Generac
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future developments or
otherwise, except as may be required by law.
Reconciliation to GAAP Financial
Metrics
Adjusted EBITDA
The computation of Adjusted EBITDA is based on the definition of
EBITDA contained in Generac's existing credit agreement, dated as
of November 10, 2006. Set forth below is a reconciliation of Net
Income to Adjusted EBITDA, taking into account certain charges and
gains that were taken during the period presented.
The presentation of this additional information is not meant to
be considered in isolation of, or as a substitute for, results
prepared in accordance with US GAAP. Please see our SEC filings for
additional discussion of the basis for Generac's reporting of
Non-GAAP financial measures.
Net income to Adjusted EBITDA
reconciliation 12 months ended 9 months ended
9 months ended Last-Twelve-Months December 31,
2010 September 30, 2010 September 30, 2011
September 30, 2011 (unaudited) (unaudited) (unaudited)
Net income $ 56,913 $ 38,300 $ 57,512 $ 76,125 Interest
expense 27,397 20,752 17,830 24,475 Depreciation and amortization
59,440 44,522 41,634 56,552 Income taxes provision 307 237 306 376
Non-cash impairment and other charges (1) (361 ) (217 ) 2,006 1,862
Non-cash share-based compensation expense (2) 6,363 4,634 5,462
7,191 Write-off of deferred financing costs related to debt
extinguishment 4,809 4,180 186 815 Transaction costs and credit
facility fees 1,019 850 1,266 1,435 Other 362
245 465 582 Adjusted EBITDA $ 156,249 $
113,503 $ 126,667 $ 169,413 Magnum Products LTM
Adjusted EBITDA 16,373 Pro forma cost synergies per credit
agreement 2,000 Pro forma LTM Adjusted EBITDA $ 187,786
(1) Includes losses on disposals of assets and unrealized
mark-to-market adjustments on commodity contracts. A full
description of these and the other reconciliation adjustments
contained in these schedules is included in Generac's SEC filings.
(2) Includes share-based compensation expense to account for
stock options, restricted stock and other stock awards over their
respective vesting periods.
SOURCE: Generac Holdings Inc.
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