https://assets.capyfin.com/instruments/678fdc13234e27009c5d5b8e.png avatar
Generac
🇺🇸 NYSE:GNRC
View Company
OverviewEarningsDividends
•
Sep 30, 2020

Generac Q3 2020 Earnings Report

Reported record results driven by unprecedented residential product demand, increasing 2020 outlook due to continued strength from key mega-trends.

Key Takeaways

Generac Holdings Inc. reported record third quarter results with net sales increasing approximately 17% to $701 million compared to the prior-year. Net income attributable to the Company during the third quarter was $115 million, or $1.82 per share, as compared to $76 million, or $1.18 per share, for the same period of 2019.

Net sales increased approximately 17% to $701 million during the third quarter of 2020 as compared to $601 million in the prior-year third quarter.

Residential product sales increased 37% to $459 million as compared to $335 million last year.

Net income attributable to the Company during the third quarter was $115 million, or $1.82 per share, as compared to $76 million, or $1.18 per share, for the same period of 2019.

Adjusted EBITDA was $179 million, or 25.5% of net sales, as compared to $126 million, or 21.0% of net sales, in the prior year.

Total Revenue
$701M
Previous year: $601M
+16.7%
EPS
$2.08
Previous year: $1.43
+45.5%
Gross Margin
39.4%
Previous year: 36.2%
+8.8%
Adjusted EBITDA Margin
25.5%
Previous year: 21%
+21.4%
Gross Profit
$276M
Previous year: $218M
+27.0%
Cash and Equivalents
$514M
Previous year: $216M
+137.9%
Free Cash Flow
$148M
Previous year: $100M
+47.8%
Total Assets
$2.97B
Previous year: $2.59B
+14.6%

Generac

Generac

Generac Revenue by Segment

Generac Revenue by Geographic Location

Forward Guidance

The Company is raising its prior guidance for revenue growth for full-year 2020, and now expects an increase of approximately 10 to 12% compared to the prior year. The corresponding adjusted EBITDA margin is now expected to be approximately 22.5 to 23.0%.

Positive Outlook

  • Revenue growth for full-year 2020 is now expected to increase approximately 10 to 12% compared to the prior year.
  • Net income margin, before deducting for non-controlling interests, is now expected to be approximately 13.0 to 13.5% for the full-year 2020
  • Adjusted EBITDA margin is now expected to be approximately 22.5 to 23.0%.
  • Increased production rates in the fourth quarter for home standby generators.
  • Higher power outage environment thus far in second half of 2020.

Challenges Ahead

  • Uncertainty in the duration and scope of the impacts of the COVID-19 pandemic.
  • Potential adverse effects on operations, supply chain, distribution.
  • Possible impact on demand for certain products and services.
  • Fluctuations in interest rates.
  • Foreign currency exchange rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Generac