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, 2022 and provided an
update on its outlook for the full year 2022.
First Quarter 2022 Highlights
- Net sales increased
41% to a record $1.14 billion during the first quarter of 2022 as
compared to $807 million in the prior-year first quarter. Core
sales growth, which excludes both the impact of acquisitions and
foreign currency, increased approximately 33%.
- Residential product
sales grew 43% to $777 million as compared to $542 million last
year.
- Commercial &
Industrial (“C&I”) product sales increased 38% to $279 million
as compared to $202 million in the prior year.
- Net income
attributable to the Company during the first quarter was $114
million, or $1.57 per share, as compared to $149 million, or $2.33
per share, for the same period of 2021.
- Adjusted net income
attributable to the Company, as defined in the accompanying
reconciliation schedules, was $135 million, or $2.09 per share, as
compared to $153 million, or $2.38 per share, in the first quarter
of 2021.
- Adjusted EBITDA
before deducting for noncontrolling interests, as defined in the
accompanying reconciliation schedules, was $196 million, or 17.3%
of net sales, as compared to $214 million, or 26.5% of net sales,
in the prior year.
- The Company is
updating its full-year 2022 net sales growth guidance to be
approximately 36 to 40% compared to the prior year on an
as-reported basis, an increase from the previous expectation of
approximately 32 to 36% growth. Adjusted EBITDA margin,
before deducting for non-controlling interests, is expected to be
approximately 21.5 to 22.5% as compared to the previous expectation
of approximately 22.0 to 23.0%.
“We continued to experience robust and broad-based growth during
the first quarter, and strong execution pushed shipments to new
records,” said Aaron Jagdfeld, President and Chief Executive
Officer. “We made better-than-expected progress towards our
production targets, which helped drive our top line beyond
expectations during the quarter despite the ongoing challenging
operating environment. We are focused on building out our energy
technology solutions portfolio as the decarbonization,
digitization, and decentralization of the power grid will create
further growth opportunities for our business in the years ahead.
In addition, we are making great progress on the integration of our
recently closed acquisitions as we expect to further scale these
businesses and execute on our overall ‘Powering a Smarter World’
enterprise strategy.”
Additional First Quarter 2022 Consolidated
Highlights
Gross profit margin was 31.8% as compared to 39.9% in the
prior-year first quarter. Gross margins continued to be pressured
by higher input costs resulting from supply chain challenges and
the overall inflationary environment, including increased commodity
prices, logistics costs, and labor. These costs were partially
offset by the increasing impact of multiple pricing actions
previously implemented and favorable sales mix. The full
realization of pricing actions implemented over the past year, as
well as additional price increases to be enacted in the second
quarter of 2022, are expected to result in sequentially improving
gross margins throughout the remainder of the year.
Operating expenses increased $73.3 million, or 55.3%, as
compared to the first quarter of 2021, including a $17.1 million
increase in acquisition-related amortization expense. The remaining
increase was primarily driven by the impact of recurring operating
expenses from recent acquisitions, increased employee costs, and
additional variable expenses from the significant increase in sales
volumes.
Provision for income taxes for the current year quarter was
$28.6 million, or an effective tax rate of 19.7%, as compared to
$35.4 million, or a 19.1% effective tax rate, for the prior year.
The increase in effective tax rate was primarily due to a lower
discrete benefit from equity compensation in the current quarter as
compared to the prior year.
Cash flow from operations was $(10.1) million during the first
quarter, as compared to $152.5 million in the prior year. Free cash
flow, as defined in the accompanying reconciliation schedules, was
$(36.8) million as compared to $125.8 million in the first quarter
of 2021. The decline in free cash flow was due to significantly
higher working capital investment in the current year quarter,
particularly with higher inventories driven by ongoing supply chain
and logistics challenges. Business Segment
Results
Domestic Segment
Domestic segment sales increased 39% to $964.7 million as
compared to $692.7 million in the prior year quarter, with the
impact of acquisitions contributing approximately 5% of the revenue
growth for the quarter. The strong and broad-based core
sales growth was led by home standby generators and PWRcell® energy
storage systems, while C&I channels also experienced
significant year-over-year growth in the quarter, highlighted by
national rental equipment and telecom customers.
Adjusted EBITDA for the segment was $170.4 million, or 17.7% of
net sales, as compared to $207.1 million in the prior year, or
29.9% of net sales. This margin performance was primarily impacted
by higher input costs and the impact of acquisitions, partially
offset by pricing benefits and favorable sales mix.
International Segment
International segment sales increased 49% to $171.2 million as
compared to $114.7 million in the prior year quarter, with the net
impact of acquisitions and foreign currency contributing
approximately 22% of the revenue growth for the
quarter. The core sales growth for the segment was
driven by strength across all regions as compared to the prior
year, most notably in Europe and Latin America.
Adjusted EBITDA for the segment, before deducting for
noncontrolling interests, was $26.0 million, or 15.2% of net sales,
as compared to $7.1 million, or 6.2% of net sales, in the prior
year. This strong margin performance was primarily
driven by the positive impact of recent acquisitions and improved
operating leverage on significantly higher sales volumes.
Updated 2022 Outlook
As a result of better-than-expected production output in the
first quarter and additional price actions being taken in the
second quarter, the Company is increasing its full-year 2022 net
sales guidance to be approximately 36 to 40%, which includes
approximately 5 to 7% of net impact from acquisitions and foreign
currency. This is an increase from the previous growth guidance of
approximately 32 to 36%.
The Company still expects net income margin, before deducting
for non-controlling interests, to be approximately 13.0 to 14.0%
for the full-year 2022. The corresponding adjusted EBITDA margin is
now expected to be approximately 21.5 to 22.5% compared to the
previous expectation of 22.0 to 23.0%. The midpoint of this
guidance would result in adjusted EBITDA dollars in line with our
previous guidance as we continue to execute mitigating actions to
address the challenging supply chain environment and inflationary
cost pressures.
Conference Call and Webcast
Generac management will hold a conference call at 10:00 a.m. EDT
on Wednesday, May 4, 2022 to discuss first quarter 2022 operating
results. The conference call can be accessed by dialing (866)
415-3113 (domestic) or +1 (678) 509-7544 (international) and
entering passcode 6859969.
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 6859969. The telephonic replay will be available for 7
days. About
Generac
Generac is a leading energy technology company that provides
backup and prime power systems for home and industrial
applications, solar + battery storage solutions, smart home energy
management devices and energy services, advanced power grid
software platforms and engine- and battery-powered tools and
equipment. Founded in 1959, Generac introduced the first affordable
backup generator and later created the category of automatic home
standby generator. The company is committed to sustainable, cleaner
energy products poised to revolutionize the 21st century electrical
grid.
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;
- fluctuations in cost and quality of
raw materials required to manufacture our products;
- availability of both labor and key
components from our global supply chain, including single-sourced
components, needed in producing our products;
- 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 impact on our results of
possible fluctuations in interest rates, foreign currency exchange
rates, commodities, product mix, logistics costs and regulatory
tariffs;
- the duration and impact of the
COVID-19 pandemic;
- 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;
- changes in environmental, health
and safety, or product compliance laws and regulations affecting
our products, operations, or customer demand;
- significant legal proceedings,
claims, lawsuits or government investigations.
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 2021 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 adjusted for the following items: 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. In
addition, for periods prior to 2022, adjusted net income reflects
cash income tax expense due to the existence of the tax shield from
the amortization of tax-deductible goodwill and intangible assets
from the acquisition of the Company by CCMP Capital Advisors, LLC
in 2006. Due to the expiration of this tax shield in the fourth
quarter of 2021, there is no similar reconciling item starting in
2022.
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, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
Net
sales |
$ |
1,135,856 |
|
|
$ |
807,434 |
|
|
Costs of
goods sold |
|
775,108 |
|
|
|
485,620 |
|
|
Gross
profit |
|
360,748 |
|
|
|
321,814 |
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
Selling and service |
|
98,243 |
|
|
|
68,424 |
|
|
Research and development |
|
39,744 |
|
|
|
22,388 |
|
|
General and administrative |
|
41,972 |
|
|
|
32,899 |
|
|
Amortization of intangibles |
|
26,054 |
|
|
|
8,979 |
|
|
Total
operating expenses |
|
206,013 |
|
|
|
132,690 |
|
|
Income from
operations |
|
154,735 |
|
|
|
189,124 |
|
|
|
|
|
|
|
Other
(expense) income: |
|
|
|
|
Interest expense |
|
(9,554 |
) |
|
|
(7,723 |
) |
|
Investment income |
|
77 |
|
|
|
603 |
|
|
Other, net |
|
246 |
|
|
|
3,309 |
|
|
Total other
expense, net |
|
(9,231 |
) |
|
|
(3,811 |
) |
|
|
|
|
|
|
Income
before provision for income taxes |
|
145,504 |
|
|
|
185,313 |
|
|
Provision
for income taxes |
|
28,608 |
|
|
|
35,368 |
|
|
Net
income |
|
116,896 |
|
|
|
149,945 |
|
|
Net income
(loss) attributable to noncontrolling interests |
|
3,038 |
|
|
|
952 |
|
|
Net income
attributable to Generac Holdings Inc. |
$ |
113,858 |
|
|
$ |
148,993 |
|
|
|
|
|
|
|
Net income attributable to common shareholders per common share -
basic: |
$ |
1.61 |
|
|
$ |
2.39 |
|
|
Weighted average common shares outstanding - basic: |
|
63,449,380 |
|
|
|
62,478,734 |
|
|
|
|
|
|
|
Net income attributable to common shareholders per common share -
diluted: |
$ |
1.57 |
|
|
$ |
2.33 |
|
|
Weighted average common shares outstanding - diluted: |
|
64,828,819 |
|
|
|
64,099,073 |
|
|
|
|
|
|
|
Comprehensive income attributable to Generac Holdings Inc. |
$ |
122,365 |
|
|
$ |
153,816 |
|
|
|
|
|
|
|
|
|
|
|
|
Generac Holdings
Inc. |
|
Condensed
Consolidated Balance Sheets |
|
(U.S. Dollars in
Thousands, Except Share and Per Share Data) |
|
(Unaudited) |
|
|
|
|
|
|
|
March
31, |
|
December
31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
$ |
206,023 |
|
|
$ |
147,339 |
|
|
Accounts receivable, less allowance for credit losses |
|
609,870 |
|
|
|
546,466 |
|
|
Inventories |
|
1,236,772 |
|
|
|
1,089,705 |
|
|
Prepaid expenses and other assets |
|
72,736 |
|
|
|
64,954 |
|
|
Total
current assets |
|
2,125,401 |
|
|
|
1,848,464 |
|
|
|
|
|
|
|
Property and
equipment, net |
|
443,480 |
|
|
|
440,852 |
|
|
|
|
|
|
|
Customer
lists, net |
|
231,513 |
|
|
|
238,722 |
|
|
Patents and
technology, net |
|
482,947 |
|
|
|
492,473 |
|
|
Other
intangible assets, net |
|
56,246 |
|
|
|
66,436 |
|
|
Tradenames,
net |
|
237,854 |
|
|
|
243,531 |
|
|
Goodwill |
|
1,412,187 |
|
|
|
1,409,674 |
|
|
Deferred
income taxes |
|
11,779 |
|
|
|
15,740 |
|
|
Operating
lease and other assets |
|
150,126 |
|
|
|
121,888 |
|
|
Total
assets |
$ |
5,151,533 |
|
|
$ |
4,877,780 |
|
|
|
|
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Short-term borrowings |
$ |
84,995 |
|
|
$ |
72,035 |
|
|
Accounts payable |
|
697,486 |
|
|
|
674,208 |
|
|
Accrued wages and employee benefits |
|
50,443 |
|
|
|
72,060 |
|
|
Other accrued liabilities |
|
415,955 |
|
|
|
331,674 |
|
|
Current portion of long-term borrowings and finance lease
obligations |
|
4,279 |
|
|
|
5,930 |
|
|
Total
current liabilities |
|
1,253,158 |
|
|
|
1,155,907 |
|
|
|
|
|
|
|
Long-term
borrowings and finance lease obligations |
|
1,002,685 |
|
|
|
902,091 |
|
|
Deferred
income taxes |
|
163,843 |
|
|
|
205,964 |
|
|
Operating
lease and other long-term liabilities |
|
351,724 |
|
|
|
341,681 |
|
|
Total
liabilities |
|
2,771,410 |
|
|
|
2,605,643 |
|
|
|
|
|
|
|
Redeemable
noncontrolling interest |
|
71,511 |
|
|
|
58,050 |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Common stock, par value $0.01, 500,000,000 shares authorized,
72,589,905 and 72,386,017 |
|
|
|
|
shares issued at March 31, 2022 and December 31, 2021,
respectively |
|
727 |
|
|
|
725 |
|
|
Additional paid-in capital |
|
959,890 |
|
|
|
952,939 |
|
|
Treasury stock, at cost |
|
(471,833 |
) |
|
|
(448,976 |
) |
|
Excess purchase price over predecessor basis |
|
(202,116 |
) |
|
|
(202,116 |
) |
|
Retained earnings |
|
2,067,868 |
|
|
|
1,965,957 |
|
|
Accumulated other comprehensive loss |
|
(46,402 |
) |
|
|
(54,755 |
) |
|
Stockholders’ equity attributable to Generac Holdings Inc. |
|
2,308,134 |
|
|
|
2,213,774 |
|
|
Noncontrolling interests |
|
478 |
|
|
|
313 |
|
|
Total
stockholders’ equity |
|
2,308,612 |
|
|
|
2,214,087 |
|
|
Total
liabilities and stockholders’ equity |
$ |
5,151,533 |
|
|
$ |
4,877,780 |
|
|
|
|
|
|
|
|
|
|
|
|
Generac Holdings
Inc. |
|
Condensed
Consolidated Statements of Cash Flows |
|
(U.S. Dollars in
Thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
Operating activities |
|
|
|
|
Net
income |
$ |
116,896 |
|
|
$ |
149,945 |
|
|
Adjustment
to reconcile net income to net cash provided by (used in) operating
activities: |
|
|
|
|
Depreciation |
|
12,407 |
|
|
|
9,258 |
|
|
Amortization of intangible assets |
|
26,054 |
|
|
|
8,979 |
|
|
Amortization of original issue discount and deferred financing
costs |
|
637 |
|
|
|
646 |
|
|
Deferred income taxes |
|
(49,156 |
) |
|
|
1,702 |
|
|
Share-based compensation expense |
|
8,827 |
|
|
|
5,448 |
|
|
Gain on disposal of assets |
|
(571 |
) |
|
|
(3,979 |
) |
|
Other non-cash (gains) charges |
|
(6,446 |
) |
|
|
281 |
|
|
Net changes in operating assets and liabilities, net of
acquisitions: |
|
|
|
|
Accounts receivable |
|
(66,510 |
) |
|
|
(56,710 |
) |
|
Inventories |
|
(147,250 |
) |
|
|
(45,833 |
) |
|
Other assets |
|
2,253 |
|
|
|
(1,773 |
) |
|
Accounts payable |
|
26,363 |
|
|
|
56,769 |
|
|
Accrued wages and employee benefits |
|
(21,558 |
) |
|
|
(15,812 |
) |
|
Other accrued liabilities |
|
102,015 |
|
|
|
63,014 |
|
|
Excess tax benefits from equity awards |
|
(14,103 |
) |
|
|
(19,392 |
) |
|
Net cash
provided by (used in) operating activities |
|
(10,142 |
) |
|
|
152,543 |
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
Proceeds
from sale of property and equipment |
|
1,864 |
|
|
|
5 |
|
|
Proceeds
from sale of investment |
|
1,308 |
|
|
|
4,902 |
|
|
Proceeds
from beneficial interests in securitization transactions |
|
1,573 |
|
|
|
712 |
|
|
Contribution
to equity method investment |
|
(2,921 |
) |
|
|
– |
|
|
Expenditures
for property and equipment |
|
(28,200 |
) |
|
|
(27,469 |
) |
|
Acquisition
of business, net of cash acquired |
|
(999 |
) |
|
|
– |
|
|
Net cash
used in investing activities |
|
(27,375 |
) |
|
|
(21,850 |
) |
|
|
|
|
|
|
Financing activities |
|
|
|
|
Proceeds
from short-term borrowings |
|
136,664 |
|
|
|
32,215 |
|
|
Proceeds
from long-term borrowings |
|
110,000 |
|
|
|
– |
|
|
Repayments
of short-term borrowings |
|
(124,609 |
) |
|
|
(43,979 |
) |
|
Repayments
of long-term borrowings and finance lease obligations |
|
(1,737 |
) |
|
|
(1,604 |
) |
|
Payment of
contingent acquisition consideration |
|
– |
|
|
|
(3,750 |
) |
|
Taxes paid
related to equity awards |
|
(34,620 |
) |
|
|
(35,901 |
) |
|
Proceeds
from the exercise of stock options |
|
9,903 |
|
|
|
13,011 |
|
|
Net cash
provided by (used in) financing activities |
|
95,601 |
|
|
|
(40,008 |
) |
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
600 |
|
|
|
(999 |
) |
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
|
58,684 |
|
|
|
89,686 |
|
|
Cash and
cash equivalents at beginning of period |
|
147,339 |
|
|
|
655,128 |
|
|
Cash and
cash equivalents at end of period |
$ |
206,023 |
|
|
$ |
744,814 |
|
|
|
|
|
|
|
|
|
|
|
|
Generac Holdings
Inc. |
|
Segment Reporting
and Product Class Information |
|
(U.S. Dollars in
Thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
Net Sales |
|
|
Three Months Ended March 31, |
|
Reportable Segments |
|
2022 |
|
|
2021 |
|
Domestic |
$ |
964,674 |
|
$ |
692,738 |
|
International |
|
171,182 |
|
|
114,696 |
|
Total net
sales |
$ |
1,135,856 |
|
$ |
807,434 |
|
|
|
|
|
|
Product Classes |
|
|
|
|
Residential
products |
$ |
776,944 |
|
$ |
542,149 |
|
Commercial
& industrial products |
|
278,728 |
|
|
202,391 |
|
Other |
|
80,184 |
|
|
62,894 |
|
Total net
sales |
$ |
1,135,856 |
|
$ |
807,434 |
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
Domestic |
$ |
170,421 |
|
$ |
207,073 |
|
International |
|
25,992 |
|
|
7,121 |
|
Total
adjusted EBITDA (1) |
$ |
196,413 |
|
$ |
214,194 |
|
|
|
|
|
|
(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, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
Net income
attributable to Generac Holdings Inc. |
$ |
113,858 |
|
|
$ |
148,993 |
|
|
Net income
(loss) attributable to noncontrolling interests |
|
3,038 |
|
|
|
952 |
|
|
Net
income |
|
116,896 |
|
|
|
149,945 |
|
|
Interest
expense |
|
9,554 |
|
|
|
7,723 |
|
|
Depreciation
and amortization |
|
38,461 |
|
|
|
18,237 |
|
|
Provision
for income taxes |
|
28,608 |
|
|
|
35,368 |
|
|
Non-cash
write-down and other adjustments (1) |
|
(7,792 |
) |
|
|
(3,868 |
) |
|
Non-cash
share-based compensation expense (2) |
|
8,827 |
|
|
|
5,448 |
|
|
Transaction
costs and credit facility fees (3) |
|
989 |
|
|
|
914 |
|
|
Business
optimization and other charges (4) |
|
1,159 |
|
|
|
159 |
|
|
Other |
|
(289 |
) |
|
|
268 |
|
|
Adjusted
EBITDA |
|
196,413 |
|
|
|
214,194 |
|
|
Adjusted
EBITDA attributable to noncontrolling interests |
|
3,425 |
|
|
|
2,192 |
|
|
Adjusted
EBITDA attributable to Generac Holdings Inc. |
$ |
192,988 |
|
|
$ |
212,002 |
|
|
|
|
|
|
|
(1) Includes gains/losses on disposals of assets and sales of
certain investments, unrealized mark-to-market adjustments on
commodity contracts, certain foreign currency related adjustments,
and certain purchase accounting and contingent consideration
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) The current year period predominantly represents severance and
other non-recurring restructuring charges related to the suspension
of operations at certain of our facilities. |
|
|
|
|
|
|
|
|
|
|
|
Net
income to Adjusted net income reconciliation |
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
Net income
attributable to Generac Holdings Inc. |
$ |
113,858 |
|
|
$ |
148,993 |
|
|
Net income
(loss) attributable to noncontrolling interests |
|
3,038 |
|
|
|
952 |
|
|
Net
income |
|
116,896 |
|
|
|
149,945 |
|
|
Provision
for income taxes (7) |
|
- |
|
|
|
35,368 |
|
|
Income
before provision for income taxes |
|
116,896 |
|
|
|
185,313 |
|
|
Amortization
of intangible assets |
|
26,054 |
|
|
|
8,979 |
|
|
Amortization
of deferred finance costs and original issue discount |
|
637 |
|
|
|
646 |
|
|
Transaction
costs and other purchase accounting adjustments (5) |
|
(5,756 |
) |
|
|
689 |
|
|
(Gain)/loss
attributable to business or asset dispositions (6) |
|
(229 |
) |
|
|
(3,991 |
) |
|
Business
optimization and other charges (4) |
|
1,159 |
|
|
|
159 |
|
|
Adjusted net
income before provision for income taxes |
|
138,761 |
|
|
|
191,795 |
|
|
Income tax
expense (7) |
|
- |
|
|
|
(37,868 |
) |
|
Adjusted net
income |
|
138,761 |
|
|
|
153,927 |
|
|
Adjusted net
income (loss) attributable to noncontrolling interests |
|
3,490 |
|
|
|
1,223 |
|
|
Adjusted net
income attributable to Generac Holdings Inc. |
$ |
135,271 |
|
|
$ |
152,704 |
|
|
|
|
|
|
|
Adjusted net
income attributable to Generac Holdings Inc. per common share -
diluted: |
$ |
2.09 |
|
|
$ |
2.38 |
|
|
Weighted
average common shares outstanding - diluted: |
|
64,828,819 |
|
|
|
64,099,073 |
|
|
|
|
|
|
|
(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 and contingent consideration adjustments. |
|
|
|
|
|
|
(6) Represents gains on certain investments 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 at the time of approximately 20.5%
for the full year ended 2021 due to the existence of the tax shield
from the amortization of tax-deductible goodwill and intangible
assets from our acquisition by CCMP Capital Advisors, LLC in 2006.
Due to the expiration of this tax shield in the fourth quarter of
2021, there is no similar reconciling item for the current year
period. For comparative purposes to the current year, using the
GAAP tax expense for the three months ended March 31, 2021 would
result in adjusted net income per diluted share of $2.42 on a pro
forma basis. |
|
|
|
|
|
|
Free
Cash Flow Reconciliation |
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
Net cash
provided by operating activities |
$ |
(10,142 |
) |
|
$ |
152,543 |
|
|
Proceeds
from beneficial interests in securitization transactions |
|
1,573 |
|
|
|
712 |
|
|
Expenditures
for property and equipment |
|
(28,200 |
) |
|
|
(27,469 |
) |
|
Free cash
flow |
$ |
(36,769 |
) |
|
$ |
125,786 |
|
|
|
|
|
|
|
Generac (NYSE:GNRC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Generac (NYSE:GNRC)
Historical Stock Chart
From Jul 2023 to Jul 2024