form8-k.htm



 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  May 1, 2014
 
Generac Holdings Inc.
(Exact name of registrant as specified in its charter)
 
Delaware
 
001-34627
 
20-5654756
(State or other jurisdiction
 
(Commission
 
(IRS Employer
of incorporation)
 
File Number)
 
Identification No.)
 
S45 W29290 Hwy. 59
   
Waukesha, Wisconsin
 
53189
(Address of principal executive offices)
 
(Zip Code)
 
(262) 544-4811
(Registrant’s telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
 
o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
 
o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
 
o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 

 




 
 

 

 
Item 2.02               Results of Operations and Financial Condition
 
On May 1, 2014, Generac Holdings Inc. (the “Company,” “we,” “us” or “our”) issued a press release (the “Press Release”) announcing its financial results for the first quarter ended May 1, 2014. A copy of the Press Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
 
            The information contained in this Current Report on Form 8-K (including the exhibits) is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information contained in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
 
Discussion of Non-GAAP Financial Measures
 
In the Press Release, we present certain financial information, specifically Adjusted EBITDA, Adjusted Net Income and Free Cash Flow which are not in accordance with generally accepted accounting principles, or U.S. GAAP. We present Adjusted EBITDA, Adjusted Net Income and Free Cash Flow in the Press Release because these metrics assist us in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Our management uses Adjusted EBITDA, Adjusted Net Income and Free Cash Flow:
 
·  
for planning purposes, including the preparation of our annual operating budget and developing and refining our internal projections for future periods;

·  
to evaluate the effectiveness of our business strategies and as a supplemental tool in evaluating our performance against our budget for each period;

·  
in communications with our board of directors and investors concerning our financial performance; and
 
·  
to evaluate prior acquisitions in relation to the existing business.
 
We also use Adjusted EBITDA as a benchmark for the determination of the bonus component of compensation for our senior executives under our management incentive plans.
 
We believe that the disclosure of Adjusted EBITDA, Adjusted Net Income and Free Cash Flow offers additional financial metrics which, when coupled with U.S. GAAP results and the reconciliation to U.S. GAAP results, provide a more complete understanding of our results of operations and the factors and trends affecting our business for securities analysts, investors and other interested parties in the evaluation of our company. We believe Adjusted EBITDA, Adjusted Net Income and Free Cash Flow are useful to investors for the following reasons:
 
·  
Adjusted EBITDA, Adjusted Net Income and Free Cash Flow and similar non-GAAP measures are widely used by investors to measure a company’s operating performance without regard to items that can vary substantially from company to company depending upon financing and accounting methods, book values of assets, tax jurisdictions, capital structures and the methods by which assets were acquired; and

·  
by comparing our Adjusted EBITDA, Adjusted Net Income and Free Cash Flow in different historical periods, our investors can evaluate our operating performance excluding the impact of certain items.
 
Item 9.01               Financial Statements and Exhibits
 
(d)
 
Exhibit No.
 
Description
     
99.1
 
Press Release, dated May 1, 2014.

 
 

 

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
GENERAC HOLDINGS INC.
   
   
 
/s/ York Ragen
 
Name: 
York Ragen
Date: May 1, 2014
Title:
Chief Financial Officer
   
   
 


 
 

 

 
EXHIBIT INDEX
 
99.1
 
Press Release, dated May 1, 2014.
 


ex99-1.htm
Generac Reports First Quarter 2014 Results
 
First quarter results in line with internal expectations as continued growth from commercial & industrial products helps to diversify business
 
 
WAUKESHA, WISCONSIN, (May 1, 2014) – Generac Holdings Inc. (NYSE: GNRC) (the “Company”), a leading designer and manufacturer of power generation equipment and other engine powered products, today reported financial results for its first quarter ended March  31, 2014.
 
First Quarter 2014 Highlights
 
·  
Net sales were $342.0 million as compared to $399.6 million in the first quarter of 2013.
 
-  
Commercial & Industrial (C&I) product sales increased 23.8% to $157.4 million as compared $127.1 million in the prior-year first quarter, due to a combination of acquisitions and continued organic growth.
 
-  
Residential product sales were $164.0 million during the first quarter of 2014 as compared to $255.2 million in the prior year quarter.  The prior year first quarter benefitted from elevated demand due to Superstorm Sandy, while the first quarter of 2014 was negatively impacted by colder temperatures and snow cover which delayed installations and slowed demand for home standby generators.
 
·  
Net income during the first quarter of 2014 was $34.7 million, or $0.50 per share, as compared to $50.7 million or $0.73 per share for the same period of 2013.
 
·  
Adjusted net income, as defined in the accompanying reconciliation schedules, was $50.7 million as compared to $83.9 million in the first quarter of 2013.  Adjusted diluted net income per share was $0.72 as compared to $1.21 per share in the first quarter of 2013.
 
·  
Adjusted EBITDA, as defined in the accompanying reconciliation schedules, was $77.5 million as compared to $108.8 million in the first quarter last year.
 
·  
Cash flow from operations in the first quarter of 2014 was $36.4 million as compared to $38.3 million in the prior year quarter.  Free cash flow, as defined in the accompanying reconciliation schedules, was $31.4 million as compared to $33.9 million in the first quarter of 2013.
 
·  
For the trailing four quarters, including the first quarter of 2014, net sales were $1.428 billion; net income was $158.6 million; adjusted EBITDA was $371.3 million; cash flow from operations was $258.0 million; and free cash flow was $226.7 million.
 
“We are pleased with our overall financial results for the quarter as they were in line with our expectations.  Shipments of residential products during the first quarter were more typical of the seasonality we historically see in winter months, which was magnified in the current season with heavy snow and colder temperatures delaying installs of residential standby units, ” said Aaron Jagdfeld, President and Chief Executive Officer.  “Shipments of C&I products were again strong during the quarter as a result of continued organic growth and the contribution from recent acquisitions.  Through a combination of our internal growth initiatives and M&A activity, we remain focused on driving a new and higher baseline of demand for our products, while also becoming a more diversified company with improved global scale.”


Additional First Quarter 2014 Highlights

Residential product sales for the first quarter of 2014 were $164.0 million as compared to $255.2 million for the comparable period in 2013.  Sales of residential products during the prior-year first quarter of 2013 were positively impacted by approximately $100 million in incremental shipments as a result of satisfying the extended lead times that resulted from Superstorm Sandy, which did not repeat during the first quarter of 2014.  Excluding this benefit in the prior year quarter, residential product revenue increased during the first quarter of 2014, driven by higher shipments of portable generators.

C&I product sales for the first quarter of 2014 increased 23.8% to $157.4 million from $127.1 million for the comparable period in 2013.  The increase was driven by recent acquisitions along with solid organic growth for stationary generators and light towers.  The strength in organic revenues was primarily driven by an increase in shipments to national account customers.

Gross profit margin for the first quarter of 2014 was 34.9% compared to 38.4% in the prior-year first quarter.  Gross margin was impacted over the prior year primarily due to a notably higher mix of organic C&I product shipments and lower mix of home standby generators, together with the impact of recent acquisitions.

Operating expenses for the first quarter of 2014 declined $2.7 million, or 4.8%, as compared to the first quarter of 2013.  The expense reduction was driven primarily by a decline in warranty expense driven by warranty rate improvements in recent quarters, partially offset by the addition of operating expenses associated with recent acquisitions.

Interest expense in the first quarter of 2014 declined to $11.7 million compared to $15.7 million in the same period last year, the result of a reduction in interest rate from the credit agreement refinancing completed in May 2013.

 
 

 

2014 Outlook

The Company is reaffirming its prior guidance for 2014 in terms of revenue growth, EBITDA margins and cash flows.  For the full-year 2014, the Company still 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 for the remainder of 2014, and no benefit from additional acquisitions.

Adjusted EBITDA margins are expected to remain in the mid-20% range as previously guided, as a higher mix of C&I product shipments relative to prior expectations is projected to be offset by reduced operating expenses.  These attractive margins are consistent with the average levels seen during the past four years.

“We expect to continue to benefit from the long-term secular growth drivers for our business,” continued Mr. Jagdfeld.  “Given the relatively low penetration for both residential and light-commercial standby generators, we believe there is a substantial opportunity for long-term growth as the leader in these emerging product categories.  We are also optimistic about the increasing need for our products used in certain end-market verticals such as telecommunications and oil & gas, as well as the overall ongoing secular shifts in the market toward natural gas generators and the rental of mobile power equipment.  As we continue to execute on our Powering Ahead strategic plan, we are confident in our ability to continue to invest in the future growth of the business, both organically and through acquisitions.”


Conference Call and Webcast

Generac management will hold a conference call at 9:00 a.m. EDT on Thursday, May 1, 2014 to discuss highlights of the first quarter operating results. The conference call can be accessed by dialing (800) 510-9691 (domestic) or +1 (617) 614-3453 (international) and entering passcode 39271367.

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 web site. A telephonic replay will also be available approximately one hour after the call and can be accessed by dialing (888) 286-8010 (domestic) or +1 (617) 801-6888 (international) and entering passcode 23767186. The telephonic replay will be available for 30 days.

 
About Generac

Since 1959, Generac has been 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, industrial and construction markets, Generac's power products are available globally through a broad network of independent dealers, 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" 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:

·  
demand for Generac products;
·  
frequency and duration of major power outages;
·  
availability, cost and quality of raw materials and key components used in producing Generac products;
·  
the impact on our results of the substantial increases in our outstanding indebtedness and related interest expense due to the dividend recapitalization transactions completed in May 2012 and 2013;
·  
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;
·  
competitive factors in the industry in which Generac operates;
·  
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; 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”).

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.
 
 
Reconciliations to GAAP Financial Metrics

Adjusted EBITDA

The computation of adjusted EBITDA is based on the definition of EBITDA contained in Generac's credit agreement, dated as of May 31, 2013, which is substantially the same definition that was contained in the Company’s previous credit agreements.  To supplement the Company's condensed consolidated financial statements presented in accordance with US GAAP, Generac provides a summary to show the computation of adjusted EBITDA, 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 US GAAP, the Company provides a summary to show the computation of adjusted net income. Adjusted net income is defined as net income before provision (benefit) 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, and certain other non-cash gains and losses.

Free Cash Flow

In addition, we reference free cash flow to further supplement Generac's condensed consolidated financial statements presented in accordance with US GAAP.  Free cash flow is defined as net cash provided by operating activities 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 US GAAP.  Please see our SEC filings for additional discussion of the basis for Generac's reporting of Non-GAAP financial measures.
 
 
 

 
 
Generac Holdings Inc.
Condensed Consolidated Statements of Comprehensive Income
(Dollars in Thousands, Except Share and Per Share Data)
(Unaudited)
             
             
   
Three Months Ended March 31,
 
   
2014
   
2013
 
             
Net sales
  $ 342,008     $ 399,572  
Costs of goods sold
    222,494       246,110  
Gross profit
    119,514       153,462  
                 
Operating expenses:
               
   Selling and service
    27,969       31,681  
   Research and development
    7,746       6,645  
   General and administrative
    13,148       12,426  
   Amortization of intangible assets
    5,345       6,185  
Total operating expenses
    54,208       56,937  
Income from operations
    65,306       96,525  
                 
Other (expense) income:
               
   Interest expense
    (11,689 )     (15,675 )
   Investment income
    39       17  
   Loss on extinguishment of debt
          (1,839 )
   Other, net
    568       396  
Total other expense, net
    (11,082 )     (17,101 )
                 
Income before provision for income taxes
    54,224       79,424  
Provision for income taxes
    19,523       28,750  
Net income
  $ 34,701     $ 50,674  
                 
Net income per common share - basic:
  $ 0.51     $ 0.75  
Weighted average common shares outstanding - basic:
    68,421,800       67,864,475  
                 
Net income per common share - diluted:
  $ 0.50     $ 0.73  
Weighted average common shares outstanding - diluted:
    70,008,490       69,554,941  
                 
Comprehensive income
  $ 34,272     $ 51,676  
 
 
 

 
 
Generac Holdings Inc.
Condensed Consolidated Balance Sheets
(Dollars in Thousands, Except Share and Per Share Data)
             
             
   
March 31,
   
December 31,
 
   
2014
   
2013
 
   
(Unaudited)
   
(Audited)
 
Assets
           
Current assets:
 
 
       
   Cash and cash equivalents
  $ 173,740     $ 150,147  
   Restricted cash
    6,645       6,645  
   Accounts receivable, less allowance for doubtful accounts
    182,168       164,907  
   Inventories
    292,307       300,253  
   Deferred income taxes
    25,482       26,869  
   Prepaid expenses and other assets
    6,188       5,358  
Total current assets
    686,530       654,179  
                 
Property and equipment, net
    148,017       146,390  
                 
Customer lists, net
    39,848       42,764  
Patents, net
    60,474       62,418  
Trade names, net
    173,195       173,196  
Goodwill
    607,185       608,287  
Other intangible assets, net
    3,962       4,447  
Deferred income taxes
    73,540       85,104  
Deferred financing costs, net
    19,304       20,051  
Other assets
    514       1,369  
Total assets
  $ 1,812,569     $ 1,798,205  
                 
Liabilities and stockholders’ equity
               
Current liabilities:
               
   Short-term borrowings
  $ 7,004     $ 9,575  
   Accounts payable
    113,744       109,238  
   Accrued wages and employee benefits
    15,006       26,564  
   Other accrued liabilities
    85,093       92,997  
   Current portion of long-term borrowings and capital lease obligations
    12,543       12,471  
Total current liabilities
    233,390       250,845  
                 
Long-term borrowings and capital lease obligations
    1,172,368       1,175,349  
Other long-term liabilities
    53,767       54,940  
Total liabilities
    1,459,525       1,481,134  
                 
Stockholders’ equity:
               
Common stock, par value $0.01, 500,000,000 shares authorized, 69,041,410 and 68,767,367 shares issued at March 31, 2014 and December 31, 2013, respectively
    690       688  
   Additional paid-in capital
    424,297       421,672  
   Treasury stock, at cost
    (7,497 )     (6,571 )
   Excess purchase price over predecessor basis
    (202,116 )     (202,116 )
   Retained earnings
    140,514       105,813  
   Accumulated other comprehensive loss
    (2,844 )     (2,415 )
Total stockholders’ equity
    353,044       317,071  
Total liabilities and stockholders’ equity
  $ 1,812,569     $ 1,798,205  
 
 
 

 
 
Generac Holdings Inc.
Condensed Consolidated Statements of Cash Flows
(Dollars in Thousands)
(Unaudited)
             
   
Three Months Ended March 31,
 
   
2014
   
2013
 
             
Operating activities
 
 
   
 
 
Net income
  $ 34,701     $ 50,674  
Adjustments to reconcile net income to net cash provided by operating activities:
               
   Depreciation
    3,230       2,565  
   Amortization of intangible assets
    5,345       6,185  
   Amortization of original issue discount
    452       616  
   Amortization of deferred financing costs
    751       561  
   Amortization of unrealized loss on interest rate swaps
          1,002  
   Loss on extinguishment of debt
          1,839  
   Provision for losses on accounts receivable
    67       225  
   Deferred income taxes
    12,606       20,075  
   Loss on disposal of property and equipment
    62       2  
   Share-based compensation expense
    3,322       2,931  
   Net changes in operating assets and liabilities:
               
      Accounts receivable
    (17,324 )     (34,648 )
      Inventories
    7,931       (33,007 )
      Other assets
    369       13  
      Accounts payable
    4,459       22,601  
      Accrued wages and employee benefits
    (11,557 )     (3,358 )
      Other accrued liabilities
    (1,533 )     7,684  
      Excess tax benefits from equity awards
    (6,528 )     (7,694 )
Net cash provided by operating activities
    36,353       38,266  
                 
Investing activities
               
Proceeds from sale of property and equipment
    6        
Expenditures for property and equipment
    (4,925 )     (4,322 )
Net cash used in investing activities
    (4,919 )     (4,322 )
                 
Financing activities
               
Proceeds from short-term borrowings
    4,000        
Repayments of short-term borrowings
    (6,571 )     (18 )
Repayments of long-term borrowings and capital lease obligations
    (3,326 )     (82,250 )
Payment of debt issuance costs
    (4 )      
Cash dividends paid for restricted stock upon vesting
    (334 )     (2,649 )
Taxes paid related to the net share settlement of equity awards
    (8,152 )     (10,417 )
Excess tax benefits from equity awards
    6,528       7,694  
Net cash used in financing activities
    (7,859 )     (87,640 )
 
               
Effect of exchange rate changes on cash and cash equivalents
    18       10  
                 
Net increase (decrease) in cash and cash equivalents
    23,593       (53,686 )
Cash and cash equivalents at beginning of period
    150,147       108,023  
Cash and cash equivalents at end of period
  $ 173,740     $ 54,337  
 
 
 

 
 
Generac Holdings Inc.
Reconciliation Schedules
(Dollars in Thousands, Except Share and Per Share Data)
             
Net income to Adjusted EBITDA reconciliation
       
   
Three Months Ended March 31,
   
2014
   
2013
 
   
(unaudited)
   
(unaudited)
 
             
Net income
  $ 34,701     $ 50,674  
Interest expense
    11,689       15,675  
Depreciation and amortization
    8,575       8,750  
Income taxes provision
    19,523       28,750  
Non-cash write-down and other charges (1)
    (554 )     (423 )
Non-cash share-based compensation expense (2)
    3,322       2,931  
Loss on extinguishment of debt
    -       1,839  
Transaction costs and credit facility fees (3)
    203       314  
Other
    39       291  
Adjusted EBITDA
  $ 77,498     $ 108,801  
                 
(1) Includes losses on disposals of assets and unrealized mark-to-market adjustments on commodity contracts. A full description of these and the other reconciliation adjustments contained in these schedules is included in Generac's SEC filings.
                 
(2) Includes 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.
 
Net income to Adjusted net income reconciliation
           
   
Three Months Ended March 31,
 
   
2014
   
2013
 
   
(unaudited)
   
(unaudited)
 
             
Net income
  $ 34,701     $ 50,674  
Provision for income taxes
    19,523       28,750  
Income before provision for income taxes
    54,224       79,424  
Amortization of intangible assets
    5,345       6,185  
Amortization of deferred finance costs and original issue discount
    1,203       1,177  
Loss on extinguishment of debt
    -       1,839  
Transaction costs and other purchase accounting adjustments (4)
    (187 )     (253 )
Adjusted net income before provision for income taxes
    60,585       88,372  
Cash income tax expense (5)
    (9,870 )     (4,520 )
Adjusted net income
  $ 50,715     $ 83,852  
                 
Adjusted net income per common share - diluted:
  $ 0.72     $ 1.21  
Weighted average common shares outstanding - diluted:
    70,008,490       69,554,941  
                 
(4) Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance or debt issuance or refinancing. Also includes certain purchase accounting adjustments.
 
   
(5) Amount for the three months ended March 31, 2014 is based on an anticipated cash income tax rate of approximately 19% for the full year-ended 2014. Amount for the three months ended March 31, 2013 is based on an anticipated cash income tax rate of approximately 6% for the full year-ended 2013.
 
 
Free cash flow reconciliation
           
   
Three Months Ended March 31,
 
   
2014
   
2013
 
   
(unaudited)
   
(unaudited)
 
             
Net cash provided by operating activities
  $ 36,353     $ 38,266  
Expenditures for property and equipment
    (4,925 )     (4,322 )
Free cash flow
  $ 31,428     $ 33,944  
                 
                 
LTM free cash flow reconciliation
 
LTM March 31,
         
      2014          
   
(unaudited)
         
                 
2013 net cash provided by operating activities, as reported
  $ 259,944          
Add: March 2014 net cash provided by operating activities, as reported
    36,353          
Less: March 2013 net cash provided by operating activities, as reported
    (38,266 )        
LTM net cash provided by operating activities
    258,031          
                 
2013 expenditures for property and equipment, as reported
    (30,770 )        
Include: March 2014 expenditures for property and equipment, as reported
    (4,925 )        
Exclude: March 2013 expenditures for property and equipment, as reported
    4,322          
LTM expenditures for property and equipment
    (31,373 )        
                 
Free cash flow
  $ 226,658          
                 
                 
LTM Adjusted EBITDA reconciliation
 
LTM March 31,
         
      2014          
   
(unaudited)
         
                 
2013 Adjusted EBITDA, as reported
  $ 402,613          
Add:  March 2014 Adjusted EBITDA, as reported
    77,498          
Less:  March 2013 Adjusted EBITDA, as reported
    (108,801 )        
Adjusted EBITDA
  $ 371,310          
 
 

 
SOURCE: Generac Holdings Inc.

CONTACT:
Michael W. Harris
Vice President – Finance and Investor Relations
(262) 544-4811 x2675
Michael.Harris@Generac.com