Generac Holdings Inc. designs, manufactures, and markets a range of generators and other engine powered products for the residential, light commercial, industrial, and construction markets in the United States Canada, and Mexico. It offers generators and other products fueled by natural gas, liquid propane, gasoline, diesel, and Bi-Fuel under the Generac, Magnum, and Ottomotores brands. The company’s residential power products comprise automatic residential standby generators that range in output from 6kW to 60kW; air-cooled residential standby generators, which range in outputs from 6kW to 20kW; and liquid-cooled generators that range in outputs from 22kW to 60kW. It also includes portable ...
S45 W29290 Highway 59
Waukesha, WI 53189
Founded in 1959
Generac Holdings Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Earnings Guidance for the Full Year 2014
Feb 13 14
Generac Holdings Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company's net sales were $376,236,000 against $342,022,000 a year ago. Income from operations was $91,218,000 against $67,780,000 a year ago. Income before provision for income taxes was $78,458,000 against $49,682,000 a year ago. Net income was $48,518,000 or $0.69 diluted per share against $28,287,000 or $0.41 diluted per share a year ago. Adjusted EBITDA was $103,647,000 against $83,128,000 a year ago. Adjusted net income before provision for income taxes was $86,657,000 against $62,027,000 a year ago. Adjusted net income was $77,516,000 or $1.11 diluted per share against $60,699,000 or $0.87 diluted per share a year ago. Net cash provided by operating activities was $104,731,000 against $106,370,000 a year ago. Expenditures for property and equipment was $16,513,000 against $8,967,000 a year ago.
For the year, the company's net sales were $1,485,765,000 against $1,176,306,000 a year ago. Income from operations was $351,465,000 against $223,555,000 a year ago. Income before provision for income taxes was $278,716,000 against $156,352,000 a year ago. Net income was $174,539,000 or $2.51 diluted per share against $93,223,000 or $1.35 diluted per share a year ago. Adjusted EBITDA was $402,613,000 against $289,809,000 a year ago. Adjusted net income before provision for income taxes was $327,485,000 against $223,603,000 a year ago. Adjusted net income was $301,664,000 or $4.33 diluted per share against $220,792,000 or $3.19 diluted per share a year ago. Net cash provided by operating activities was $259,944,000 against $235,594,000 a year ago. Expenditures for property and equipment were $30,770,000 against $22,392,000 a year ago. Capital expenditure was $31 million.
The company is initiating guidance for 2014 with revenue expected to grow over a very strong 2013. For the full-year 2014, the company currently expects net sales to increase in the mid-single digit range as compared to the prior year. This top-line guidance assumes no material changes in the current macroeconomic environment, no major power outage events during 2014, and no benefit from additional acquisitions. Gross margins are expected to decline by approximately 100 basis points during 2014 as compared to the prior year primarily as a result of a higher mix of C&I product shipments, including the impact of the addition of Baldor Generators. Operating expenses as a percentage of net sales, excluding amortization of intangibles, are expected to increase approximately 100 basis points as compared to 2013, primarily as a result of favorable adjustments to warranty reserves in 2013 that are not expected to repeat in 2014. Adjusted EBITDA margins are expected to remain attractive in the mid-20% range, which is consistent with the average level seen during the past four years. The company expects free cash flow generation to remain strong in 2014 due to superior margin profile, low-cost of debt, favorable tax attributes and capital-efficient operating model. Interest expense is expected to be in the range of $45 million to $47 million, which represents a decline compared to $54.4 million in 2013. Adjusted EBITDA margins during 2014 are expected to increase some variation as a result of seasonality.