Generac Holdings Inc. (NYSE: GNRC) (“Generac” or the “Company”), a
leading global designer and manufacturer of energy technology
solutions and other power products, today reported financial
results for its first quarter ended March 31, 2021 and provided an
update on its outlook for the full year 2021.
First Quarter 2021 Highlights
- Net sales increased
70% to a record $807 million during the first quarter of 2021 as
compared to $476 million in the prior-year first quarter. Core
sales growth, which excludes both the impact of acquisitions and
foreign currency, increased approximately 67%.
- Residential product
sales more than doubled to $542 million as compared to $258 million
last year, representing a 110% increase.
- Commercial &
Industrial (“C&I”) product sales increased 18% to $202 million
as compared to $172 million in the prior year.
- Net income
attributable to the Company during the first quarter was $149
million, or $2.33 per share, as compared to $44 million, or $0.68
per share, for the same period of 2020.
- Adjusted net income
attributable to the Company, as defined in the accompanying
reconciliation schedules, was a record $153 million, or $2.38 per
share, as compared to $55 million, or $0.87 per share, in the first
quarter of 2020.
- Adjusted EBITDA
before deducting for noncontrolling interests, as defined in the
accompanying reconciliation schedules, was a record $214 million,
or 26.5% of net sales, as compared to $86 million, or 18.1% of net
sales, in the prior year.
- Cash flow from
operations was $153 million, a record for the first quarter of a
year, as compared to $11 million in the prior year. Free cash flow,
as defined in the accompanying reconciliation schedules, was a
record for a first quarter of $126 million as compared to ($1
million) for 2020. The substantially higher cash flow was primarily
due to higher net income and a lower level of working capital
investment in the current year quarter, which was partially offset
by higher capital expenditures relative to the prior year
quarter.
- The Company is
increasing its full-year 2021 net sales guidance to now be
approximately 40 to 45% growth compared to the prior year, which is
an increase from the 25 to 30% previously expected. Adjusted EBITDA
margin, before deducting for non-controlling interests, is now
expected to be approximately 24.5 to 25.5%, which is an increase
from the 24.0 to 25.0% previously expected.
“Our first quarter results continue to demonstrate the power of
Generac’s business model and the fantastic execution by our team as
our revenue grew at a tremendous 70% rate to over $800 million,
driving a significant increase in adjusted EBITDA margins. The
revenue performance represents an all-time record despite the
seasonally lower first-quarter time period,” said Aaron Jagdfeld,
President and Chief Executive Officer. “Growth was broad based led
by a dramatic increase for home standby generators that more than
doubled compared to prior year given the powerful mega trends that
are driving incredible demand for these products.”
Jagdfeld continued, “Shipments of our PWRcell® energy storage
systems also grew at a significant rate as compared to the prior
year, and with the considerable momentum we have in the
marketplace, we are increasing our outlook for these products for
the remainder of the year. Shipments of C&I products returned
to growth in the quarter, increasing at a strong rate as demand is
recovering at a faster pace than previously expected across a
number of markets and geographies. With the impact from the major
outages in Texas along with further capacity expansion actions for
home standby, and with demand strengthening broadly across the rest
of the business, we are substantially increasing our full year
revenue and earnings outlook for 2021.”
Additional First Quarter 2021 Consolidated
Highlights
Gross profit margin improved 370 basis points to 39.9% compared
to 36.2% in the prior-year first quarter. The increase was
primarily driven by favorable sales mix from significantly higher
shipments of residential products, along with improved pricing and
overhead absorption from higher sales volumes. These favorable
impacts were partially offset by the onset of higher input costs
primarily relating to raw materials, labor, freight and logistics
costs. Operating expenses increased $23.2 million, or 21.2%,
as compared to the first quarter of 2020. The increase was
primarily driven by higher variable expenses from the significant
increase in sales volumes, higher employee costs and incentive
compensation, and the impact of acquisitions. These increases were
partially offset by a reduction in controllable operating
expenses.
Provision for income taxes for the current year quarter was
$35.4 million, or an effective tax rate of 19.1%, as compared to
$9.4 million, or a 17.9% effective tax rate, for the prior year.
The increase in effective tax rate was primarily due to the
significant increase in the mix of domestic pretax income in the
current year.Business Segment Results
Domestic Segment
Domestic segment sales increased 84.2% to $692.7 million as
compared to $376.0 million in the prior year quarter, with the
impact of acquisitions contributing approximately 2.0% of the
revenue growth for the quarter. The core sales growth was primarily
driven by a significant increase in shipments of residential
products highlighted by home standby and portable generators. In
addition, PWRcell® energy storage systems experienced healthy
growth as the Company continues to expand in the clean energy
market, and shipments of chore products also improved at a strong
rate as compared to the prior year. This was supplemented by a
return to growth for C&I products which was led by a
substantial increase in shipments to telecom national account
customers compared to the prior year.
Adjusted EBITDA for the segment was $207.1 million, or 29.9% of
net sales, as compared to $82.8 million in the prior year, or 22.0%
of net sales. This margin increase was driven by favorable sales
mix, improved pricing and higher operating leverage from the
substantial revenue growth for the segment during the quarter.
International Segment
International segment sales increased 14.8% to $114.7 million as
compared to $99.9 million in the prior year quarter. Core sales,
which excludes the favorable impact of currency, increased 9.6%
compared to the prior year. The growth for the segment was due to
an increase in market activity primarily in the European region
that is now recovering from the impact of the COVID-19 pandemic
which began during the first quarter of the prior year.
Adjusted EBITDA for the segment, before deducting for
noncontrolling interests, was $7.1 million, or 6.2% of net sales,
as compared to $3.3 million, or 3.3% of net sales, in the prior
year. The improvement in margin was due to the combination of
favorable sales mix, improved operating leverage on the higher
sales volumes, and a reduction in certain controllable operating
expenses.
Updated 2021 OutlookThe major outages in Texas
during the first quarter have led to an acceleration in demand and
backlog for home standby generators from the already elevated
levels that existed prior to this event. This has resulted in a
further increase in capacity expansion plans and is leading to a
significant increase in the shipment outlook for these products for
the full-year 2021. Also contributing to the improved outlook for
residential products is a notable increase in portable generator
shipments, along with higher demand for PWRcell® energy storage
systems due to further progress in building out distribution
partners in this overall expanding market. The outlook for C&I
products has also improved considerably due to a broad based
rebound in demand highlighted by a significant pickup in activity
from telecom national account customers, and overall stronger
outlooks for domestic and international markets.
As a result of these factors, the Company is increasing its
full-year 2021 net sales growth guidance to now be approximately 40
to 45% compared to the prior year, which includes only
approximately 2% of favorable impact from acquisitions and foreign
currency. This is an increase from the as-reported growth guidance
of 25 to 30% previously expected.
Net income margin, before deducting for non-controlling
interests, is now expected to be approximately 16.0 to 17.0% for
the full-year 2021, which is an increase from the prior expectation
of between 15.0 to 16.0%. The corresponding adjusted EBITDA margin
is now expected to be approximately 24.5 to 25.5%, which is an
increase from the 24.0 to 25.0% previously expected.
Operating and free cash flow generation is still expected to be
strong, with the conversion of adjusted net income to free cash
flow expected to be approximately 90%.
Conference Call and Webcast
Generac management will hold a conference call at 10:00 a.m. EDT
on Thursday, April 29, 2021 to discuss first quarter 2021 operating
results. The conference call can be accessed by dialing (866)
415-3113 (domestic) or +1 (678) 509-7544 (international) and
entering passcode 6997523.
The conference call will also be webcast simultaneously on
Generac's website (http://www.generac.com), accessed under the
Investor Relations link. The webcast link will be made available on
the Company’s website prior to the start of the call within the
Events section of the Investor Relations website.Following the live
webcast, a replay will be available on the Company's website. A
telephonic replay will also be available approximately two hours
after the call and can be accessed by dialing (855) 859-2056
(domestic) or +1 (404) 537-3406 (international) and entering
passcode 6997523. The telephonic replay will be available for 7
days. About
Generac
Founded in 1959, Generac is a leading global designer and
manufacturer of a wide range of energy technology solutions and
other power products. As an industry leader serving residential,
light commercial, and industrial markets, Generac's products and
solutions are available globally through a broad network of
independent dealers, distributors, retailers, e-commerce partners,
wholesalers and equipment rental companies, as well as sold direct
to certain end user customers.
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," "forecast," "project," "plan," "intend," "believe,"
"confident," "may," "should," "can have," "likely," "future,"
“optimistic” 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
affect Generac's actual financial results and cause them to differ
materially from those anticipated in any forward-looking
statements, including:
- frequency and duration of power
outages impacting demand for our products;
- availability, cost and quality of
raw materials and key components from our global supply chain and
labor needed in producing our products;
- the impact on our results of
possible fluctuations in interest rates, foreign currency exchange
rates, commodities, product mix and regulatory tariffs;
- the possibility that the expected
synergies, efficiencies and cost savings of our acquisitions will
not be realized, or will not be realized within the expected time
period;
- the risk that our acquisitions will
not be integrated successfully;
- the duration and scope of the
impacts of the COVID-19 pandemic are uncertain and may or will
continue to adversely affect our operations, supply chain, and
distribution for certain of our products and services;
- difficulties we may encounter as
our business expands globally or into new markets;
- our dependence on our distribution
network;
- our ability to invest in, develop
or adapt to changing technologies and manufacturing
techniques;
- loss of our key management and
employees;
- increase in product and other
liability claims or recalls;
- failures or security breaches of
our networks, information technology systems, or connected
products; and
- changes in environmental, health
and safety, or product compliance laws and regulations affecting
our products, operations, or customer demand.
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. In the current
environment, some of the above factors have materialized and may or
will continue to be impacted by the COVID-19 pandemic, which may
cause actual results to vary from these 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”), particularly in the
Risk Factors section of the 2020 Annual Report on Form 10-K and in
its periodic reports on Form 10-Q. Stockholders, potential
investors and other readers should consider these factors carefully
in evaluating the forward-looking statements.
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.
Non-GAAP Financial Metrics
Core Sales
The Company references core sales to further supplement
Generac's condensed consolidated financial statements presented in
accordance with U.S. GAAP. Core sales excludes the impact of
acquisitions and fluctuations in foreign currency translation.
Management believes that core sales facilitates easier and more
meaningful comparison of net sales performance with prior and
future periods.
Adjusted EBITDA
The computation of adjusted EBITDA attributable to the Company
and adjusted EBITDA margin is based on the definition of EBITDA
contained in Generac's credit agreement dated as of May 31, 2013,
as amended. To supplement the Company's condensed consolidated
financial statements presented in accordance with U.S. GAAP,
Generac provides a summary to show the computation of adjusted
EBITDA, which excludes the impact of noncontrolling interests,
taking into account certain charges and gains that were recognized
during the periods presented.
Adjusted Net Income
To further supplement Generac's condensed consolidated financial
statements presented in accordance with U.S. GAAP, the Company
provides a summary to show the computation of adjusted net income
attributable to the Company. Adjusted net income attributable to
the Company is defined as net income before noncontrolling
interests and provision for income taxes adjusted for the following
items: cash income tax expense, amortization of intangible assets,
amortization of deferred financing costs and original issue
discount related to the Company's debt, intangible impairment
charges, certain transaction costs and other purchase accounting
adjustments, losses on extinguishment of debt, business
optimization expenses, certain other non-cash gains and losses, and
adjusted net income attributable to non-controlling interests.
Free Cash Flow
In addition, we reference free cash flow to further supplement
Generac's condensed consolidated financial statements presented in
accordance with U.S. GAAP. Free cash flow is defined as net cash
provided by operating activities, plus proceeds from beneficial
interests in securitization transactions, less expenditures for
property and equipment, and is intended to be a measure of
operational cash flow taking into account additional capital
expenditure investment into the business.
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 U.S. GAAP. Please see the accompanying
Reconciliation Schedules and our SEC filings for additional
discussion of the basis for Generac's reporting of Non-GAAP
financial measures, which includes why the Company believes these
measures provide useful information to investors and the additional
purposes for which management uses the non-GAAP financial
information.
SOURCE: Generac Holdings Inc. CONTACT: Michael W. HarrisVice
President – Corporate Development & Investor Relations (262)
506-6064InvestorRelations@generac.com
Generac Holdings
Inc. |
|
Condensed
Consolidated Statements of Comprehensive Income |
|
(U.S. Dollars in
Thousands, Except Share and Per Share Data) |
|
(Unaudited) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
Net
sales |
$ |
807,434 |
|
|
$ |
475,915 |
|
|
Costs of
goods sold |
|
485,620 |
|
|
|
303,595 |
|
|
Gross
profit |
|
321,814 |
|
|
|
172,320 |
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
Selling and service |
|
68,424 |
|
|
|
55,139 |
|
|
Research and development |
|
22,388 |
|
|
|
18,649 |
|
|
General and administrative |
|
32,899 |
|
|
|
27,889 |
|
|
Amortization of intangibles |
|
8,979 |
|
|
|
7,781 |
|
|
Total
operating expenses |
|
132,690 |
|
|
|
109,458 |
|
|
Income from
operations |
|
189,124 |
|
|
|
62,862 |
|
|
|
|
|
|
|
Other
(expense) income: |
|
|
|
|
Interest expense |
|
(7,723 |
) |
|
|
(9,053 |
) |
|
Investment income |
|
603 |
|
|
|
960 |
|
|
Other, net |
|
3,309 |
|
|
|
(1,914 |
) |
|
Total other
expense, net |
|
(3,811 |
) |
|
|
(10,007 |
) |
|
|
|
|
|
|
Income
before provision for income taxes |
|
185,313 |
|
|
|
52,855 |
|
|
Provision
for income taxes |
|
35,368 |
|
|
|
9,444 |
|
|
Net
income |
|
149,945 |
|
|
|
43,411 |
|
|
Net income
(loss) attributable to noncontrolling interests |
|
952 |
|
|
|
(1,049 |
) |
|
Net income
attributable to Generac Holdings Inc. |
$ |
148,993 |
|
|
$ |
44,460 |
|
|
|
|
|
|
|
Net income attributable to common shareholders per common share -
basic: |
$ |
2.39 |
|
|
$ |
0.69 |
|
|
Weighted average common shares outstanding - basic: |
|
62,478,734 |
|
|
|
62,126,481 |
|
|
|
|
|
|
|
Net income attributable to common shareholders per common share -
diluted: |
$ |
2.33 |
|
|
$ |
0.68 |
|
|
Weighted average common shares outstanding - diluted: |
|
64,099,073 |
|
|
|
63,283,737 |
|
|
|
|
|
|
|
Comprehensive income attributable to Generac Holdings Inc. |
$ |
153,816 |
|
|
$ |
(3,098 |
) |
|
|
|
|
|
|
Generac Holdings
Inc. |
|
Condensed
Consolidated Balance Sheets |
|
(U.S. Dollars in
Thousands, Except Share and Per Share Data) |
|
(Unaudited) |
|
|
|
|
|
|
|
March
31, |
|
December
31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
$ |
744,814 |
|
|
$ |
655,128 |
|
|
Accounts receivable, less allowance for credit losses |
|
428,702 |
|
|
|
374,906 |
|
|
Inventories |
|
644,576 |
|
|
|
603,317 |
|
|
Prepaid expenses and other assets |
|
39,515 |
|
|
|
36,382 |
|
|
Total
current assets |
|
1,857,607 |
|
|
|
1,669,733 |
|
|
|
|
|
|
|
Property and
equipment, net |
|
345,563 |
|
|
|
343,936 |
|
|
|
|
|
|
|
Customer
lists, net |
|
46,476 |
|
|
|
49,205 |
|
|
Patents and
technology, net |
|
80,250 |
|
|
|
86,727 |
|
|
Other
intangible assets, net |
|
9,182 |
|
|
|
9,932 |
|
|
Tradenames,
net |
|
145,074 |
|
|
|
146,159 |
|
|
Goodwill |
|
849,294 |
|
|
|
855,228 |
|
|
Deferred
income taxes |
|
1,360 |
|
|
|
1,497 |
|
|
Operating
lease and other assets |
|
87,332 |
|
|
|
73,006 |
|
|
Total
assets |
$ |
3,422,138 |
|
|
$ |
3,235,423 |
|
|
|
|
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Short-term borrowings |
$ |
26,534 |
|
|
$ |
39,282 |
|
|
Accounts payable |
|
387,933 |
|
|
|
330,247 |
|
|
Accrued wages and employee benefits |
|
46,736 |
|
|
|
63,036 |
|
|
Other accrued liabilities |
|
245,009 |
|
|
|
204,812 |
|
|
Current portion of long-term borrowings and finance lease
obligations |
|
4,053 |
|
|
|
4,147 |
|
|
Total
current liabilities |
|
710,265 |
|
|
|
641,524 |
|
|
|
|
|
|
|
Long-term
borrowings and finance lease obligations |
|
841,516 |
|
|
|
841,764 |
|
|
Deferred
income taxes |
|
122,196 |
|
|
|
115,769 |
|
|
Operating
lease and other long-term liabilities |
|
160,338 |
|
|
|
179,955 |
|
|
Total
liabilities |
|
1,834,315 |
|
|
|
1,779,012 |
|
|
|
|
|
|
|
Redeemable
noncontrolling interest |
|
63,254 |
|
|
|
66,207 |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Common stock, par value $0.01, 500,000,000 shares authorized,
72,205,746 and 72,024,329 shares issued at March 31, 2021 and
December 31, 2020, respectively |
|
723 |
|
|
|
721 |
|
|
Additional paid-in capital |
|
534,303 |
|
|
|
525,541 |
|
|
Treasury stock, at cost |
|
(358,362 |
) |
|
|
(332,164 |
) |
|
Excess purchase price over predecessor basis |
|
(202,116 |
) |
|
|
(202,116 |
) |
|
Retained earnings |
|
1,581,681 |
|
|
|
1,432,565 |
|
|
Accumulated other comprehensive loss |
|
(31,499 |
) |
|
|
(34,254 |
) |
|
Stockholders’ equity attributable to Generac Holdings Inc. |
|
1,524,730 |
|
|
|
1,390,293 |
|
|
Noncontrolling interests |
|
(161 |
) |
|
|
(89 |
) |
|
Total
stockholders’ equity |
|
1,524,569 |
|
|
|
1,390,204 |
|
|
Total
liabilities and stockholders’ equity |
$ |
3,422,138 |
|
|
$ |
3,235,423 |
|
|
|
|
|
|
|
Generac Holdings
Inc. |
|
Condensed
Consolidated Statements of Cash Flows |
|
(U.S. Dollars in
Thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
Operating activities |
|
|
|
|
Net
income |
$ |
149,945 |
|
|
$ |
43,411 |
|
|
Adjustment
to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
Depreciation |
|
9,258 |
|
|
|
8,335 |
|
|
Amortization of intangible assets |
|
8,979 |
|
|
|
7,781 |
|
|
Amortization of original issue discount and deferred financing
costs |
|
646 |
|
|
|
642 |
|
|
Deferred income taxes |
|
1,702 |
|
|
|
1,571 |
|
|
Share-based compensation expense |
|
5,448 |
|
|
|
4,574 |
|
|
Loss (gain) on disposal of assets |
|
(3,979 |
) |
|
|
– |
|
|
Other non-cash charges |
|
281 |
|
|
|
416 |
|
|
Net changes in operating assets and liabilities, net of
acquisitions: |
|
|
|
|
Accounts receivable |
|
(56,710 |
) |
|
|
(5,687 |
) |
|
Inventories |
|
(45,833 |
) |
|
|
(48,145 |
) |
|
Other assets |
|
(1,773 |
) |
|
|
(6,017 |
) |
|
Accounts payable |
|
56,769 |
|
|
|
12,817 |
|
|
Accrued wages and employee benefits |
|
(15,812 |
) |
|
|
(18,125 |
) |
|
Other accrued liabilities |
|
63,014 |
|
|
|
12,976 |
|
|
Excess tax benefits from equity awards |
|
(19,392 |
) |
|
|
(3,203 |
) |
|
Net cash
provided by operating activities |
|
152,543 |
|
|
|
11,346 |
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
Proceeds
from sale of property and equipment |
|
5 |
|
|
|
– |
|
|
Proceeds
from sale of investment |
|
4,902 |
|
|
|
– |
|
|
Proceeds
from beneficial interests in securitization transactions |
|
712 |
|
|
|
618 |
|
|
Expenditures
for property and equipment |
|
(27,469 |
) |
|
|
(12,894 |
) |
|
Net cash
used in investing activities |
|
(21,850 |
) |
|
|
(12,276 |
) |
|
|
|
|
|
|
Financing activities |
|
|
|
|
Proceeds
from short-term borrowings |
|
32,215 |
|
|
|
20,694 |
|
|
Repayments
of short-term borrowings |
|
(43,979 |
) |
|
|
(25,526 |
) |
|
Repayments
of long-term borrowings and finance lease obligations |
|
(1,604 |
) |
|
|
(1,176 |
) |
|
Payment of
contingent acquisition consideration |
|
(3,750 |
) |
|
|
(4,000 |
) |
|
Taxes paid
related to equity awards |
|
(35,901 |
) |
|
|
(7,666 |
) |
|
Proceeds
from the exercise of stock options |
|
13,011 |
|
|
|
1,590 |
|
|
Net cash
used in financing activities |
|
(40,008 |
) |
|
|
(16,084 |
) |
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
(999 |
) |
|
|
1,587 |
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
|
89,686 |
|
|
|
(15,427 |
) |
|
Cash and
cash equivalents at beginning of period |
|
655,128 |
|
|
|
322,883 |
|
|
Cash and
cash equivalents at end of period |
$ |
744,814 |
|
|
$ |
307,456 |
|
|
|
|
|
|
|
Generac Holdings
Inc. |
|
Segment Reporting
and Product Class Information |
|
(U.S. Dollars in
Thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
Net Sales |
|
|
Three Months Ended March 31, |
|
Reportable Segments |
|
2021 |
|
|
2020 |
|
Domestic |
$ |
692,738 |
|
$ |
376,030 |
|
International |
|
114,696 |
|
|
99,885 |
|
Total net sales |
$ |
807,434 |
|
$ |
475,915 |
|
|
|
|
|
|
Product Classes |
|
|
|
|
Residential products |
$ |
542,149 |
|
$ |
257,619 |
|
Commercial & industrial products |
|
202,391 |
|
|
172,066 |
|
Other |
|
62,894 |
|
|
46,230 |
|
Total net sales |
$ |
807,434 |
|
$ |
475,915 |
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
Three Months Ended March 31, |
|
|
|
2021 |
|
|
2020 |
|
Domestic |
$ |
207,073 |
|
$ |
82,775 |
|
International |
|
7,121 |
|
|
3,250 |
|
Total adjusted EBITDA (1) |
$ |
214,194 |
|
$ |
86,025 |
|
|
|
|
|
|
(1) See reconciliation of Adjusted EBITDA to Net income
attributable to Generac Holdings Inc. on the following
reconciliation schedule. |
|
|
|
|
|
|
Generac Holdings
Inc. |
|
Reconciliation
Schedules |
|
(U.S. Dollars in
Thousands, Except Share and Per Share Data) |
|
(Unaudited) |
|
|
|
|
|
|
Net income to Adjusted EBITDA reconciliation |
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
Net income attributable to Generac Holdings Inc. |
$ |
148,993 |
|
|
$ |
44,460 |
|
|
Net income (loss) attributable to noncontrolling interests |
|
952 |
|
|
|
(1,049 |
) |
|
Net
income |
|
149,945 |
|
|
|
43,411 |
|
|
Interest expense |
|
7,723 |
|
|
|
9,053 |
|
|
Depreciation and amortization |
|
18,237 |
|
|
|
16,116 |
|
|
Provision for income taxes |
|
35,368 |
|
|
|
9,444 |
|
|
Non-cash write-down and other adjustments (1) |
|
(3,868 |
) |
|
|
2,284 |
|
|
Non-cash share-based compensation expense (2) |
|
5,448 |
|
|
|
4,574 |
|
|
Transaction costs and credit facility fees (3) |
|
914 |
|
|
|
234 |
|
|
Business optimization and other charges (4) |
|
159 |
|
|
|
512 |
|
|
Other |
|
268 |
|
|
|
397 |
|
|
Adjusted EBITDA |
|
214,194 |
|
|
|
86,025 |
|
|
Adjusted EBITDA attributable to noncontrolling interests |
|
2,192 |
|
|
|
(102 |
) |
|
Adjusted EBITDA attributable to Generac Holdings Inc. |
$ |
212,002 |
|
|
$ |
86,127 |
|
|
|
|
|
|
|
(1) Includes gains/losses on disposals of assets and investments,
unrealized mark-to-market adjustments on commodity contracts, and
certain foreign currency related adjustments. A full description of
these and the other reconciliation adjustments contained in these
schedules is included in Generac's SEC filings. |
|
|
|
|
|
|
(2) Represents share-based compensation expense to account for
stock options, restricted stock and other stock awards over their
respective vesting periods. |
|
|
|
|
|
|
(3) Represents transaction costs incurred directly in connection
with any investment, as defined in our credit agreement, equity
issuance or debt issuance or refinancing, together with certain
fees relating to our senior secured credit facilities. |
|
|
|
|
|
|
(4) Represents severance and other non-recurring restructuring
charges related to the consolidation of certain of our
facilities. |
|
|
|
|
|
|
|
|
|
|
|
Net income to Adjusted net income
reconciliation |
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
Net income attributable to Generac Holdings Inc. |
$ |
148,993 |
|
|
$ |
44,460 |
|
|
Net income (loss) attributable to noncontrolling interests |
|
952 |
|
|
|
(1,049 |
) |
|
Net
income |
|
149,945 |
|
|
|
43,411 |
|
|
Provision for income taxes |
|
35,368 |
|
|
|
9,444 |
|
|
Income before provision for income taxes |
|
185,313 |
|
|
|
52,855 |
|
|
Amortization of intangible assets |
|
8,979 |
|
|
|
7,781 |
|
|
Amortization of deferred finance costs and original issue
discount |
|
646 |
|
|
|
642 |
|
|
Transaction costs and other purchase accounting adjustments
(5) |
|
689 |
|
|
|
40 |
|
|
(Gain)/loss attributable to business or asset dispositions (6) |
|
(3,991 |
) |
|
|
– |
|
|
Business optimization and other charges (4) |
|
159 |
|
|
|
512 |
|
|
Adjusted net income before provision for income taxes |
|
191,795 |
|
|
|
61,830 |
|
|
Cash income tax expense (7) |
|
(37,868 |
) |
|
|
(7,345 |
) |
|
Adjusted net income |
|
153,927 |
|
|
|
54,485 |
|
|
Adjusted net income (loss) attributable to noncontrolling
interests |
|
1,223 |
|
|
|
(581 |
) |
|
Adjusted net income attributable to Generac Holdings Inc. |
$ |
152,704 |
|
|
$ |
55,066 |
|
|
|
|
|
|
|
Adjusted net income attributable to Generac Holdings Inc.
per common share - diluted: |
$ |
2.38 |
|
|
$ |
0.87 |
|
|
Weighted average common shares outstanding - diluted: |
|
64,099,073 |
|
|
|
63,283,737 |
|
|
|
|
|
|
|
(5) Represents transaction costs incurred directly in connection
with any investment, as defined in our credit agreement, equity
issuance or debt issuance or refinancing, and certain purchase
accounting adjustments. |
|
|
|
|
|
|
(6) Represents gains and losses attributable to the disposition of
a business or assets occurring in other than ordinary course, as
defined in our credit agreement. |
|
|
|
|
|
|
(7) Amount for the three months ended March 31, 2021 is based on an
anticipated cash income tax rate of approximately 20.5% for the
full year ending 2021. Amount for the three months ended March 31,
2020 is based on an anticipated cash income tax rate at the time of
approximately 14% for the full year ended 2020. Cash income tax
expense for the respective periods is based on the projected
taxable income and corresponding cash tax rate for the full year
after considering the effects of current and deferred income tax
items, and is calculated for each respective period by applying the
derived cash tax rate to the period’s pretax income. |
|
|
|
|
|
|
Free Cash Flow Reconciliation |
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
152,543 |
|
|
$ |
11,346 |
|
|
Proceeds from beneficial interests in securitization
transactions |
|
712 |
|
|
|
618 |
|
|
Expenditures for property and equipment |
|
(27,469 |
) |
|
|
(12,894 |
) |
|
Free cash flow |
$ |
125,786 |
|
|
$ |
(930 |
) |
|
|
|
|
|
|
Generac (NYSE:GNRC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Generac (NYSE:GNRC)
Historical Stock Chart
From Sep 2023 to Sep 2024