filings.toolsGenerac Holdings 10-Q 2023-06-30
Filed 2023-08-08. 2 sections, 192K characters. Original on sec.gov · Markdown · JSON
Cover and table of contents
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
| ☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|---|
| For the quarterly period ended June 30, 2023 | |
| OR | |
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the transition period from to |
Commission File Number 001-34627
GENERAC HOLDINGS INC.
(Exact name of registrant as specified in its charter)
| Delaware | 20-5654756 |
|---|---|
| (State or other jurisdiction of | (IRS Employer |
| incorporation or organization) | Identification No.) |
| S45 W29290 Hwy 59, Waukesha, WI | 53189 |
| (Address of principal executive offices) | (Zip Code) |
(262) 544-4811
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.01 par value | GNRC | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer ☑ | Accelerated filer ☐ |
|---|---|
| Non-accelerated filer ☐ | Smaller reporting company ☐ |
| Emerging growth company ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
As of August 2, 2023 there were 62,242,577 shares of registrant's common stock outstanding.
TABLE OF CONTENTS
Item 1. Financial Statements
| Generac Holdings Inc. |
|---|
| Condensed Consolidated Balance Sheets |
| (U.S. Dollars in Thousands, Except Share and Per Share Data) |
| (Unaudited) |
| June 30, | December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 192,768 | $ | 132,723 | ||||
| Accounts receivable, less allowance for credit losses of $29,610 and $27,664 at June 30, 2023 and December 31, 2022, respectively | 540,332 | 522,458 | ||||||
| Inventories | 1,436,619 | 1,405,384 | ||||||
| Prepaid expenses and other current assets | 103,334 | 121,783 | ||||||
| Total current assets | 2,273,053 | 2,182,348 | ||||||
| Property and equipment, net | 505,026 | 467,604 | ||||||
| Customer lists, net | 200,478 | 206,987 | ||||||
| Patents and technology, net | 438,148 | 454,757 | ||||||
| Other intangible assets, net | 34,515 | 41,719 | ||||||
| Tradenames, net | 223,229 | 227,251 | ||||||
| Goodwill | 1,430,283 | 1,400,880 | ||||||
| Deferred income taxes | 13,953 | 12,746 | ||||||
| Operating lease and other non-current assets | 203,286 | 175,170 | ||||||
| Total assets | $ | 5,321,971 | $ | 5,169,462 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Short-term borrowings | $ | 77,889 | $ | 48,990 | ||||
| Accounts payable | 454,727 | 446,050 | ||||||
| Accrued wages and employee benefits | 53,417 | 45,741 | ||||||
| Accrued product warranty | 74,025 | 89,141 | ||||||
| Other accrued liabilities | 254,700 | 349,389 | ||||||
| Current portion of long-term borrowings and finance lease obligations | 22,069 | 12,733 | ||||||
| Total current liabilities | 936,827 | 992,044 | ||||||
| Long-term borrowings and finance lease obligations | 1,523,310 | 1,369,085 | ||||||
| Deferred income taxes | 114,990 | 125,691 | ||||||
| Operating lease and other long-term liabilities | 319,400 | 312,916 | ||||||
| Total liabilities | 2,894,527 | 2,799,736 | ||||||
| Redeemable noncontrolling interests | 5,688 | 110,471 | ||||||
| Stockholders' equity: | ||||||||
| Common stock, par value $0.01, 500,000,000 shares authorized, 73,097,016 and 72,701,257 shares issued at June 30, 2023 and December 31, 2022, respectively | 732 | 728 | ||||||
| Additional paid-in capital | 1,053,759 | 1,016,138 | ||||||
| Treasury stock, at cost, 10,858,348 and 11,284,350 shares at June 30, 2023 and December 31, 2022, respectively | (779,892 | ) | (808,491 | ) | ||||
| Excess purchase price over predecessor basis | (202,116 | ) | (202,116 | ) | ||||
| Retained earnings | 2,363,015 | 2,316,224 | ||||||
| Accumulated other comprehensive loss | (16,216 | ) | (65,102 | ) | ||||
| Stockholders' equity attributable to Generac Holdings Inc. | 2,419,282 | 2,257,381 | ||||||
| Noncontrolling interests | 2,474 | 1,874 | ||||||
| Total stockholders' equity | 2,421,756 | 2,259,255 | ||||||
| Total liabilities and stockholders' equity | $ | 5,321,971 | $ | 5,169,462 |
| See notes to condensed consolidated financial statements. |
|---|
| Generac Holdings Inc. |
|---|
| Condensed Consolidated Statements of Comprehensive Income |
| (U.S. Dollars in Thousands, Except Share and Per Share Data) |
| (Unaudited) |
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net sales | $ | 1,000,420 | $ | 1,291,391 | $ | 1,888,330 | $ | 2,427,247 | ||||||||
| Costs of goods sold | 671,999 | 834,406 | 1,287,410 | 1,609,514 | ||||||||||||
| Gross profit | 328,421 | 456,985 | 600,920 | 817,733 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling and service | 115,743 | 120,066 | 216,431 | 218,309 | ||||||||||||
| Research and development | 43,942 | 41,599 | 85,762 | 81,343 | ||||||||||||
| General and administrative | 56,371 | 52,600 | 116,056 | 94,572 | ||||||||||||
| Amortization of intangibles | 26,393 | 25,876 | 52,216 | 51,930 | ||||||||||||
| Total operating expenses | 242,449 | 240,141 | 470,465 | 446,154 | ||||||||||||
| Income from operations | 85,972 | 216,844 | 130,455 | 371,579 | ||||||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | (25,160 | ) | (10,235 | ) | (48,155 | ) | (19,789 | ) | ||||||||
| Investment income | 941 | 92 | 1,629 | 169 | ||||||||||||
| Loss on extinguishment of debt | - | (3,743 | ) | - | (3,743 | ) | ||||||||||
| Other, net | (331 | ) | 505 | (497 | ) | 751 | ||||||||||
| Total other expense, net | (24,550 | ) | (13,381 | ) | (47,023 | ) | (22,612 | ) | ||||||||
| Income before provision for income taxes | 61,422 | 203,463 | 83,432 | 348,967 | ||||||||||||
| Provision for income taxes | 15,907 | 45,826 | 23,756 | 74,434 | ||||||||||||
| Net income | 45,515 | 157,637 | 59,676 | 274,533 | ||||||||||||
| Net income attributable to noncontrolling interests | 317 | 1,278 | 2,048 | 4,316 | ||||||||||||
| Net income attributable to Generac Holdings Inc. | $ | 45,198 | $ | 156,359 | $ | 57,628 | $ | 270,217 | ||||||||
| Net income attributable to Generac Holdings Inc. per common share - basic: | $ | 0.70 | $ | 2.24 | $ | 0.76 | $ | 3.85 | ||||||||
| Weighted average common shares outstanding - basic: | 61,721,614 | 63,662,510 | 61,645,341 | 63,607,711 | ||||||||||||
| Net income attributable to Generac Holdings Inc. per common share - diluted: | $ | 0.70 | $ | 2.21 | $ | 0.75 | $ | 3.78 | ||||||||
| Weighted average common shares outstanding - diluted: | 62,348,184 | 64,713,748 | 62,429,911 | 64,799,002 | ||||||||||||
| Comprehensive income attributable to Generac Holdings Inc. | $ | 69,060 | $ | 120,864 | $ | 104,422 | $ | 243,229 |
| See notes to condensed consolidated financial statements. |
|---|
| Generac Holdings Inc. |
|---|
| Condensed Consolidated Statements of Stockholders' Equity |
| (U.S. Dollars in Thousands, Except Share Data) |
| (Unaudited) |
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