May 23, 2017 12:49 AM ET

Electrical Equipment

Company Overview of Generac Holdings Inc.

Company Overview

Generac Holdings Inc. designs, manufactures, and sells power generation equipment and other engine powered products for the residential, light commercial, and industrial markets worldwide. The company offers engines, alternators, transfer switches, and other components fueled by natural gas, liquid propane, gasoline, diesel, and bi-fuel. It also provides residential automatic standby generators ranging in output from 6kW to 60kW; air-cooled engine residential standby generators ranging from 6kW to 20kW; liquid-cooled engine generators with outputs ranging from 22kW to 60kW; cellular-based remote monitoring system for home standby generators; and industrial diesel generators ranging in sizes ...

S45W29290 Highway 59

Waukesha, WI 53189

United States

Founded in 1959

3,608 Employees

Phone:

262-544-4811

Key Executives for Generac Holdings Inc.

Executive Chairman, Chief Executive Officer and President
Age: 44
Total Annual Compensation: $794.9K
Chief Financial Officer and Chief Accounting Officer
Age: 45
Total Annual Compensation: $398.9K
Executive Vice President of Global Engineering
Age: 48
Total Annual Compensation: $357.0K
Executive Vice President of Strategic Global Sourcing
Age: 56
Total Annual Compensation: $242.8K
Chief Marketing Officer
Age: 55
Total Annual Compensation: $404.7K
Compensation as of Fiscal Year 2016.

Generac Holdings Inc. Key Developments

Generac Holdings Inc. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2017; Reaffirms Earnings Guidance for the Year 2017; Provides Earnings Guidance for the Second Quarter, First Half and Second Half of Fiscal 2017

Generac Holdings Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2017. For the quarter, net sales were $331,814,000 against $286,535,000 a year ago. Income from operations was $31,845,000 against $26,964,000 a year ago. Income before provision for income taxes was $21,100,000 against $15,931,000 a year ago. Net income attributable to company was $12,842,000 or $0.21 per diluted share against $10,208,000 or $0.15 per basic and diluted share a year ago. Net cash used in operating activities was $4,546,000 against net cash provided by operating activities of $22,151,000 a year ago. Expenditures for property and equipment were $3,548,000 against $7,093,000 a year ago. Adjusted EBITDA was $47,658,000 against $49,809,000 a year ago. Adjusted EBITDA attributable to company was $46,702,000 against $49,125,000 a year ago. Adjusted net income attributable to Generac Holdings Inc. was $25,789,000 or $0.41 per diluted share against $30,887,000 or $0.46 per diluted share a year ago. Free cash flow was $8,094,000 against $15,058,000 a year ago. The declines in cash flow were primarily driven by an increase in working capital investment during the current-year quarter including higher finished goods for residential products as inventory levels were replenished to more normalized levels following the strong demand experienced during the fourth quarter of 2016. Excluding this restructuring charges in the prior year, the decline in GAAP net income was driven by lower operating earnings as previously detailed and higher GAAP income taxes recorded during the current year quarter. The company is maintaining its prior guidance for full-year 2017. Net sales are still expected to increase between 5% to 7% as compared to the prior year, with core organic growth of between 1% to 3%. Net income margins, before deducting for non-controlling interests, are still expected to be between 7.5 to 8.0%, while adjusted EBITDA margins, also before deducting for non-controlling interests, are still expected to be between 19.0% to 19.5%. The top-line guidance assumes no material changes in the current macroeconomic environment and also assumes a power outage severity level for the remainder of the year similar to that experienced during 2016 excluding the impact of Hurricane Matthew. Operating and free cash flow generation is expected to improve over the remaining quarters and be strong for the full-year 2017, with the conversion of adjusted net income expected to be over 90%. The current year cash taxes reflect an expected cash tax rate of approximately 15% for the full year of 2017, while the prior year first quarter was based on an expected cash tax rate of approximately 9% for the full year 2016. As a reminder, the favorable tax shield of approximately $50 million through annual intangible amortization in tax return results in cash income tax rate being significantly lower than GAAP income tax rate of approximately 36% for 2017. The company also announced the guidance remains unchanged for the first half of the year expected to represent approximately 45% to 47% of total sales, and the second half, approximately 53% to 55%. By way of comparison, 2016 organic seasonality was 46% in the first half and 54% in the second half. second half 2017 adjusted EBITDA margins are forecasted to be appreciably better in comparison to the first half of the year. This improvement is expected to be the result of the increasing benefit from product cost reductions, a more favorable product mix, improved pricing and SG&A leverage on higher sales volumes for the back half of the year. For the second quarter of 2017, adjusted EBITDA margins are expected to improve sequentially between 275 to 300 basis points as compared to the first quarter and then further increased sequentially during the third and fourth quarters.

Generac Holdings Inc. to Report Q1, 2017 Results on Apr 27, 2017

Generac Holdings Inc. announced that they will report Q1, 2017 results at 9:00 AM, Eastern Standard Time on Apr 27, 2017

Generac Holdings Inc., Q1 2017 Earnings Call, Apr 27, 2017

Generac Holdings Inc., Q1 2017 Earnings Call, Apr 27, 2017

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