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Generac Reports Third Quarter 2018 Results

Strong execution drives record quarterly results; Raising outlook for remainder of 2018

WAUKESHA, Wis., Nov. 01, 2018 (GLOBE NEWSWIRE) -- Generac Holdings Inc. (NYSE: GNRC) (“Generac” or the “Company”), a leading global designer and manufacturer of power generation equipment and other engine powered products, today reported financial results for its third quarter ended September 30, 2018.    

Third Quarter 2018 Highlights

  • Net sales increased 22.7% to $559.5 million during the third quarter of 2018 as compared to $455.8 million in the prior-year third quarter, including $13.4 million of contribution from the Selmec acquisition, which closed on June 1, 2018.  Core sales growth, which excludes both the impact of acquisitions and foreign currency, was approximately 20%.    
  • Gross profit margin improved 110 basis points to 35.4% as compared to 34.3% in the third quarter of 2017.
  • Net income attributable to the Company during the third quarter was $75.8 million, or $1.11 per share, as compared to $39.4 million, or $0.63 per share, for the same period of 2017. 
  • Adjusted net income attributable to the Company, as defined in the accompanying reconciliation schedules, was $89.1 million, or $1.43 per share, as compared to $57.4 million, or $0.92 per share, in the third quarter of 2017. 
  • Adjusted EBITDA before deducting for non-controlling interests, as defined in the accompanying reconciliation schedules, improved to $124.5 million, or 22.2% of net sales, as compared to $88.4 million, or 19.4% of net sales, in the prior year.
  • Cash flow from operations was $59.3 million as compared to $66.3 million in the prior year quarter.  Free cash flow, as defined in the accompanying reconciliation schedules, was $47.0 million as compared to $60.4 million in the third quarter of 2017.
  • The Company is increasing its full-year 2018 sales growth guidance to approximately 20% with Adjusted EBITDA margins, before deducting for non-controlling interests, of approximately 21.0%.

“Our third quarter results were a record for Generac as we experienced broad based growth across all of our end markets,” said Aaron Jagdfeld, President and Chief Executive Officer.  “Shipments of residential products were again particularly strong with demand climbing to record levels as disruptions from power outages continued to drive awareness around the home standby category and the need for homeowners to have back-up power.  Sales of our C&I mobile and stationary products were also strong during the quarter with rental, telecom, and healthcare verticals experiencing outsized growth.  With a healthy backlog entering the fourth quarter, the fundamentals of our business have never been stronger and we remain focused on execution as we further drive shareholder value.”

Additional Third Quarter 2018 Consolidated Highlights

Residential product sales increased 24.2% to $311.9 million as compared to $251.2 million in the prior year.  Recall that the prior year quarter included the impacts from hurricanes Harvey, Irma and Maria.  C&I product sales increased 18.7% to $206.4 million as compared to $173.8 million in the prior year, with core sales growth of approximately 15%.   

Gross profit margin improved 110 basis points to 35.4% as compared to 34.3% in the prior-year third quarter.  A significant favorable mix shift towards home standby generator sales drove the majority of this improvement, with price / cost factors being largely neutral to gross margins relative to the prior year.

Operating expenses increased $7.7 million, or 9.2%, as compared to the third quarter of 2017.  The increase was primarily driven by higher variable operating expenses given the higher sales volumes, an increase in employee & incentive compensation costs, and recurring operating expenses from the Selmec acquisition.  These items were partially offset by lower promotion, marketing and intangible amortization expenses.

Provision for income taxes for the current year quarter was $20.1 million, or an effective tax rate of 20.8%, as compared to $20.4 million, or 33.9% effective tax rate, for the prior year.

Cash flow from operations was $59.3 million as compared to $66.3 million in the prior-year third quarter, and free cash flow was $47.0 million as compared to $60.4 million in the same quarter last year.  Higher operating earnings were more than offset by the timing of certain cash flows related to taxes, interest, pensions, capital expenditures and sales of extended warranties. 

The current year earnings per share calculation of $1.11 includes the impact of a $6.9 million adjustment to increase the value of the redeemable noncontrolling interest for the Pramac acquisition, resulting in an $0.11 reduction in earnings per share. Under U.S. GAAP accounting rules, any adjustments to the redemption value are recorded directly to retained earnings.  However, the redemption value adjustments are required to be reflected in the earnings per share calculation as detailed in the accompanying reconciliation schedules.

On January 1, 2018, the Company adopted Accounting Standards Update 2014-09, Revenue from Contracts with Customers, and all related amendments, commonly known as the “new revenue recognition standard”.  The full retrospective method was elected under this standard, which requires application to all periods presented.  As a result, the prior-year 2017 results have been restated accordingly.  However, the adoption of this standard did not have a material impact on the Company’s financial statements. 

Business Segment Results

Domestic Segment

Domestic segment sales increased 24.9% to $453.3 million as compared to $362.9 million in the prior-year quarter.  The current-year quarter continued to experience strong growth in shipments of home standby generators, C&I mobile products, C&I stationary generators, and service parts, all of which contributed to the year-over-year growth.

Adjusted EBITDA for the segment was $117.1 million, or 25.8% of net sales, as compared to $82.8 million in the prior year, or 22.8% of net sales.  Adjusted EBITDA margin in the current year benefitted from favorable mix, improved operating leverage, a favorable pricing environment, and focused margin improvement initiatives.  These benefits were partially offset by an increase in employee costs and general inflationary pressures.

International Segment

International segment sales increased 14.3% to $106.3 million as compared to $92.9 million in the prior-year quarter.  Core sales growth was approximately 3%, with the Selmec acquisition contributing an additional $13.4 million.

Adjusted EBITDA for the segment, before deducting for non-controlling interests, improved to $7.4 million, or 6.9% of net sales, as compared to $5.6 million, or 6.1% of net sales, in the prior year.  The improvement was primarily due to increased leverage of fixed operating costs on the higher organic sales volumes and favorable mix.    

Updated 2018 Outlook

The Company is increasing its prior guidance for revenue growth for full-year 2018, reflecting  the favorable end market conditions primarily driven by higher than expected power outage activity experienced during the second half of 2018.  Full year net sales are now expected to grow by approximately 19 to 20% over the prior year, which is an increase from the 13 to 14% growth previously expected.  Core sales growth is expected to be approximately 16 to 17%, which is an increase from the approximate 10% core growth previously expected. 

Given the increase in net sales guidance, net income margins, before deducting for non-controlling interests, are now expected to be approximately 12% for the full-year 2018, which is an increase from the 10.5% guidance previously expected.  Adjusted EBITDA margins, also before deducting for non-controlling interests, are now expected to be approximately 21% for the year, up from the prior 20.0% guidance. 

Operating and free cash flow generation is expected to remain strong, with the conversion of adjusted net income to free cash flow forecasted to be approximately 80 to 85%.

Conference Call and Webcast

Generac management will hold a conference call at 9:00 a.m. EDT on Thursday, November 1, 2018 to discuss third quarter 2018 operating results. The conference call can be accessed by dialing (866) 415-3113 (domestic) or +1 (678) 509-7544 (international) and entering passcode 5499586.

The conference call will also be webcast simultaneously on Generac's website (http://www.generac.com), 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 5499586. The telephonic replay will be available for 7 days.
               
About Generac

Founded in 1959, Generac is a leading designer and manufacturer of a wide range of power generation equipment and other engine powered products.  As a leader in power equipment serving residential, light commercial, and industrial markets, Generac's power products are available globally through a broad network of independent dealers, distributors, retailers, 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 Generac products;
  • availability, cost and quality of raw materials and key components and labor needed in producing Generac 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;
  • difficulties Generac may encounter as its business expands globally;
  • Generac's dependence on its distribution network;
  • Generac's ability to invest in, develop or adapt to changing technologies and manufacturing techniques;
  • loss of key management and employees;
  • increase in product and other liability claims or recalls; and
  • changes in environmental, health and safety laws and regulations.

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”), particularly in the Risk Factors section of the 2017 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 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 non-controlling 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 non-controlling 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 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:
York Ragen
Chief Financial Officer
(262) 506-6064
InvestorRelations@generac.com

Generac Holdings Inc.
Condensed Consolidated Balance Sheets
(U.S. Dollars in Thousands, Except Share and Per Share Data)
(Unaudited)
       
  September 30,   December 31,
    2018       2017  
Assets      
Current assets:      
Cash and cash equivalents $ 174,001     $ 138,472  
Accounts receivable, less allowance for doubtful accounts   341,758       279,294  
Inventories   496,088       387,049  
Prepaid expenses and other assets   28,110       19,741  
Total current assets   1,039,957       824,556  
       
Property and equipment, net   243,362       230,380  
       
Customer lists, net   64,585       41,064  
Patents, net   32,375       39,617  
Other intangible assets, net   3,228       2,401  
Tradenames, net   153,585       152,683  
Goodwill   769,168       721,523  
Deferred income taxes   1,207       3,238  
Other assets   25,206       10,502  
Total assets $ 2,332,673     $ 2,025,964  
       
Liabilities and stockholders’ equity      
Current liabilities:      
Short-term borrowings $ 35,758     $ 20,602  
Accounts payable   287,718       233,639  
Accrued wages and employee benefits   41,335       27,992  
Other accrued liabilities   136,416       112,618  
Current portion of long-term borrowings and capital lease obligations   51,886       1,572  
Total current liabilities   553,113       396,423  
       
Long-term borrowings and capital lease obligations   859,625       906,548  
Deferred income taxes   68,380       41,852  
Other long-term liabilities   93,023       82,893  
Total liabilities   1,574,141       1,427,716  
       
Redeemable noncontrolling interests   59,897       43,929  
       
Stockholders’ equity:      
Common stock, par value $0.01, 500,000,000 shares authorized, 71,105,573 and 70,820,173      
shares issued at September 30, 2018 and December 31, 2017, respectively   711       708  
Additional paid-in capital   473,886       459,816  
Treasury stock, at cost   (321,397 )     (294,005 )
Excess purchase price over predecessor basis   (202,116 )     (202,116 )
Retained earnings   756,636       610,835  
Accumulated other comprehensive loss   (9,557 )     (21,198 )
Stockholders’ equity attributable to Generac Holdings, Inc.   698,163       554,040  
Noncontrolling interests   472       279  
Total stockholders' equity   698,635       554,319  
Total liabilities and stockholders’ equity $ 2,332,673     $ 2,025,964  
       


Generac Holdings Inc.
Condensed Consolidated Statements of Comprehensive Income
(U.S. Dollars in Thousands, Except Share and Per Share Data)
(Unaudited)
           
  Three Months Ended September 30,   Nine Months Ended September 30,
    2018       2017       2018       2017  
               
Net sales $   559,515     $   455,839     $   1,452,098     $   1,181,199  
Costs of goods sold     361,630         299,608         937,968         783,247  
Gross profit     197,885         156,231         514,130         397,952  
               
Operating expenses:              
Selling and service     46,536         43,463         135,270         124,940  
Research and development     13,653         10,850         38,122         31,690  
General and administrative     25,499         22,128         75,613         64,508  
Amortization of intangibles     5,678         7,242         16,792         21,554  
Total operating expenses     91,366         83,683         265,797         242,692  
Income from operations     106,519         72,548         248,333         155,260  
               
Other (expense) income:              
Interest expense     (9,824 )       (10,672 )       (30,939 )       (32,353 )
Investment income     382         14         1,095         57  
Loss on extinguishment of debt     –         –         (1,332 )       –  
Other, net     (483 )       (1,710 )       (2,764 )       (3,525 )
Total other expense, net     (9,925 )       (12,368 )       (33,940 )       (35,821 )
               
Income before provision for income taxes     96,594         60,180         214,393         119,439  
Provision for income taxes     20,072         20,404         49,870         42,105  
Net income     76,522         39,776         164,523         77,334  
Net income attributable to noncontrolling interests     746         341         1,841         433  
Net income attributable to Generac Holdings Inc. $   75,776     $   39,435     $   162,682     $   76,901  
               
Net income attributable to common shareholders per              
  common share - basic: $   1.12     $   0.64     $   2.36     $   1.25  
Weighted average common shares outstanding - basic:     61,579,564         61,758,190         61,659,817         62,094,807  
               
Net income attributable to common shareholders per              
  common share - diluted: $   1.11     $   0.63     $   2.34     $   1.24  
Weighted average common shares outstanding - diluted:     62,220,298         62,316,788         62,266,140         62,703,269  
               
Comprehensive income attributable to Generac Holdings Inc. $   80,768     $   42,939     $   173,355     $   90,867  
               


Generac Holdings Inc.
Condensed Consolidated Statements of Cash Flows
(U.S. Dollars in Thousands)
(Unaudited)
       
  Nine Months Ended September 30,
    2018       2017  
Operating activities      
Net income $   164,523     $   77,334  
Adjustment to reconcile net income to net cash provided by operating activities:      
Depreciation     18,332         17,137  
Amortization of intangible assets     16,792         21,554  
Amortization of original issue discount and deferred financing costs     3,554         2,400  
Loss on extinguishment of debt     1,332         –  
Deferred income taxes     17,218         25,336  
Share-based compensation expense     9,910         8,402  
Other     1,249         361  
Net changes in operating assets and liabilities, net of acquisitions:      
Accounts receivable     (55,649 )       (68,003 )
Inventories     (99,957 )       9,379  
Other assets     (16,488 )       (3,852 )
Accounts payable     47,559         (206 )
Accrued wages and employee benefits     13,044         6,288  
Other accrued liabilities     18,011         25,148  
Excess tax benefits from equity awards     (432 )       (661 )
Net cash provided by operating activities     138,998         120,617  
       
Investing activities      
Proceeds from sale of property and equipment     213         77  
Proceeds from beneficial interests in securitization transactions     2,825         2,102  
Expenditures for property and equipment     (25,577 )       (16,658 )
Acquisition of business, net of cash acquired     (71,926 )        1,257  
Net cash used in investing activities     (94,465 )       (13,222 )
       
Financing activities      
Proceeds from short-term borrowings     28,332         74,443  
Proceeds from long-term borrowings     51,425         3,069  
Repayments of short-term borrowings     (12,478 )       (80,952 )
Repayments of long-term borrowings and capital lease obligations      (51,164 )       (13,051 )
Stock repurchases     (25,656 )       (30,012 )
Cash dividends paid to noncontrolling interests of subsidiary     (314 )       –  
Payment of debt issuance costs     (1,702 )       (1,517 )
Taxes paid related to equity awards     (2,777 )       (2,479 )
Proceeds from exercise of stock options     5,191         1,717  
Net cash used in financing activities     (9,143 )       (48,782 )
       
Effect of exchange rate changes on cash and cash equivalents     139         2,895  
       
Net increase in cash and cash equivalents     35,529         61,508  
Cash and cash equivalents at beginning of period     138,472         67,272  
Cash and cash equivalents at end of period $   174,001     $   128,780  
       


Generac Holdings Inc.
Segment Reporting and Product Class Information
(U.S. Dollars in Thousands)
(Unaudited)
                 
    Net Sales
    Three Months Ended September 30,   Nine Months Ended September 30,
Reportable Segments   2018     2017     2018     2017
Domestic $   453,259   $   362,909   $   1,134,525   $   915,483
International     106,256       92,930       317,573       265,716
Total net sales $   559,515   $   455,839   $   1,452,098   $   1,181,199
                 
Product Classes              
Residential products $   311,918   $   251,203   $   748,790   $   603,888
Commercial & industrial products     206,366       173,842       597,119       494,498
Other     41,231       30,794       106,189       82,813
Total net sales $   559,515   $   455,839   $   1,452,098   $   1,181,199
                 
    Adjusted EBITDA
    Three Months Ended September 30,   Nine Months Ended September 30,
Reportable Segments   2018     2017     2018     2017
Domestic $   117,108   $   82,817   $   273,185   $   188,400
International     7,366       5,625       25,300       16,471
Total adjusted EBITDA (1) $   124,474   $   88,442   $   298,485   $   204,871
                 
(1) See reconcilation 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 September 30,   Nine Months Ended September 30,
          2018       2017       2018       2017  
                     
Net income attributable to Generac Holdings Inc. $   75,776     $   39,435     $   162,682     $   76,901  
Net income attributable to noncontrolling interests     746         341         1,841         433  
Net income         76,522         39,776         164,523         77,334  
Interest expense         9,824         10,672         30,939         32,353  
Depreciation and amortization       11,841         13,108         35,124         38,691  
Income taxes provision         20,072         20,404         49,870         42,105  
Non-cash write-down and other adjustments (1)     900         756         3,522         2,632  
Non-cash share-based compensation expense (2)     2,919         2,584         9,910         8,402  
Loss on extinguishment of debt (3)       -         -         1,332         -  
Transaction costs and credit facility fees (4)     1,767         234         2,470         970  
Business optimization expenses (5)       583         487         750         1,933  
Other           46         421         45         451  
Adjusted EBITDA         124,474         88,442          298,485         204,871  
Adjusted EBITDA attributable to noncontrolling interests     1,454         1,178         5,633         3,589  
Adjusted EBITDA attributable to Generac Holdings Inc. $   123,020     $   87,264     $   292,852     $   201,282  
                     
(1)  Includes gains/losses on disposals of assets, unrealized mark-to-market adjustments on commodity contracts, and certain foreign currency and purchase accounting 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 the non-cash write-off of original issue discount and deferred financing costs due to a voluntary prepayment of Term Loan debt.
                     
(4) 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.
                     
(5) 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 September 30,   Nine Months Ended September 30,
          2018       2017       2018       2017  
                     
Net income attributable to Generac Holdings Inc. $   75,776     $   39,435     $   162,682     $   76,901  
Net income attributable to noncontrolling interests     746         341         1,841         433  
Net income         76,522         39,776         164,523         77,334  
Provision for income taxes       20,072         20,404         49,870         42,105  
Income before provision for income taxes     96,594         60,180         214,393         119,439  
Amortization of intangible assets       5,678         7,242         16,792         21,554  
Amortization of deferred finance costs and original issue discount     1,187         1,092         3,554         2,400  
Loss on extinguishment of debt (3)     -         -         1,332         -  
Transaction costs and other purchase accounting adjustments (6)     702         (35 )       1,516         979  
Business optimization expenses (5)       583        487         750         1,933  
Adjusted net income before provision for income taxes     104,744         68,966         238,337         146,305  
Cash income tax expense (7)       (15,185 )       (10,878 )       (31,709 )       (19,607 )
Adjusted net income         89,559         58,088         206,628         126,698  
Adjusted net income attributable to noncontrolling interests     447         697         2,491         1,912  
Adjusted net income attributable to Generac Holdings Inc. $   89,112     $   57,391     $   204,137     $   124,786  
                     
Adjusted net income attributable to Generac Holdings Inc. per              
  common share - diluted:   $   1.43     $   0.92     $   3.28     $   1.99  
Weighted average common shares outstanding - diluted:     62,220,298         62,316,788         62,266,140         62,703,269  
                     
(6) 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.
                     
(7) Amounts for the three and nine months ended September 30, 2018 are now based on an anticipated cash income tax rate of approximately 15% for the full year ended 2018. Amounts for the three and nine months ended September 30, 2017 were based on an anticipated cash income tax rate at that time of approximately 17% for the full year ended 2017. 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 full year cash tax rate to the period’s pretax income.
                     
Free Cash Flow Reconciliation                
        Three Months Ended September 30,   Nine Months Ended September 30,
          2018       2017       2018       2017  
                     
Net cash provided by operating activities $   59,341     $   66,341     $   138,998     $   120,617  
Proceeds from beneficial interests in
securitization transactions
    896         704         2,825         2,102  
Expenditures for property and equipment     (13,251 )       (6,628 )       (25,577 )       (16,658 )
Free cash flow     $   46,986     $   60,417     $   116,246     $   106,061  
                     
                     
GAAP Earnings Per Share   Three Months Ended September 30,   Nine Months Ended September 30,
          2018       2017       2018       2017  
Numerator                  
Net income attributable to Generac Holdings Inc. $   75,776     $   39,435     $   162,682     $   76,901  
Redeemable noncontrolling interest redemption value adjustment     (6,912 )       -          (16,882 )       909  
Net income attributable to common shareholders $   68,864     $   39,435     $   145,800     $   77,810  
                     
Denominator                  
Weighted average shares, basic     61,579,564       61,758,190       61,659,817       62,094,807  
Dilutive effect of stock compensation awards   640,734       558,598       606,323       608,462  
Diluted shares       62,220,298       62,316,788       62,266,140       62,703,269  
                     
Net income attributable to common shareholders per share              
Basic       $   1.12     $   0.64     $   2.36     $   1.25  
Diluted     $   1.11     $   0.63     $   2.34     $   1.24  

 

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Generac Holdings Inc
  • NYSE
  • GNRC
  • $56.80
  • 11/16/18 4:00 p.m. ET