“Generac Holdings Inc. (GNRC), a leading designer and manufacturer of generators and other engine powered products, today reported financial results for its third quarter ended September 30, 2012.
Highlights
- Net sales increased year-over-year by 25.6% to $300.6 million as compared to $239.3 million in the third quarter of 2011. Net sales for the third quarter of 2012 were in line with the high end of the Company’s previously announced expected range of $295.0 to $300.0 million as pre-released on October 1st.
- Residential product sales increased 17.8% compared to the strong third quarter of 2011, in which year-over-year sales growth was 60.5%.
- Commercial & Industrial (C&I) product sales increased 48.3% compared to the prior year third quarter.
- Strong operating earnings during the quarter were more than offset by higher interest expense from the recent refinancing of the Company’s senior secured credit facilities that closed on May 30, 2012, as well as a normalized effective income tax rate. As a result, net income for the third quarter of 2012 was $25.5 million or $0.37 per share as compared to $37.4 million or $0.55 per share for the same period of 2011.
- Adjusted net income, as defined in the accompanying reconciliation schedules, increased to $54.1 million from $50.6 million in the third quarter of 2011. Adjusted diluted net income per common share was $0.78 as compared to $0.75 per share in the third quarter of 2011.
- Adjusted EBITDA increased to $76.3 million as compared to $61.6 million in the third quarter last year.
- Cash flow from operations in the third quarter of 2012 was $69.5 million as compared to $61.0 million in the prior year quarter. Unlevered free cash flow was $67.7 million as compared to $65.5 million in the third quarter of 2011.
- For the trailing four quarters, net sales were $1.102 billion; net income was $332.1 million, which includes a net $238.0 million income tax benefit in the fourth quarter of 2011; adjusted EBITDA was $268.5 million; cash flow from operations was $209.9 million; and unlevered free cash flow was $214.0 million.”
