Generac Holdings, a designer and manufacturer of generators and other engine-powered products, last week reported third-quarter net sales ended Sept. 30, increased year-over-year by 20.9 percent to $363.3 million compared to $300.6 million in the third quarter of 2012.
Net income during the third quarter of 2013 was $47.1 million, or $0.67 per share, as compared to $25.5 million or $0.37 per share for the same period of 2012. Adjusted EBITDA increased 31.2 percent to $100.1 million as compared to $76.3 million in the third quarter last year. Adjusted EBITDA margin during the third quarter improved to 27.5 percent as compared to 25.4 percent in the prior year primarily because of warranty rate improvements resulting in a favorable adjustment to warranty reserves.
“We experienced double-digit organic revenue growth again during the quarter as a result of increased spending from our national account customers and continued adoption of standby generators for both residential and commercial applications,” said Aaron Jagdfeld, president and CEO. “We believe our expanded dealer base, targeted marketing efforts and continued roll-out of our PowerPlay in-home sales process are having an impact on extending the awareness and distribution of standby generators, which is leading to a new and higher baseline level of demand for these products. In addition, over the last twelve months, we have announced several acquisitions that provide us with immediate access to new global markets and new products, helping to further grow and diversify our business.”
On Aug. 1, the company closed on the previously announced acquisition of Tower Light Srl, a leading developer and supplier of mobile light towers throughout Europe, the Middle East and Africa.
Subsequent to the end of the quarter, the company entered into a purchase agreement to acquire substantially all of the assets of Baldor Electric Co.’s generator division. Baldor Generators offers a complete line of generators ranging from 3kW to 2.5MW throughout North America.
Generac is revising upward its sales guidance for full-year 2013 primarily due to continued strong demand for home standby generators, as well as a modest impact from the expected closing of the Baldor Generators acquisition in the fourth quarter of 2013. Full-year 2013 net sales are now expected to increase in the low-to-mid 20-percent range over the prior year, which is an increase from the low-20-percent rate previously expected. This top-line guidance continues to assume no material changes in the current macroeconomic environment and no major power outage events for the remainder of 2013.
Waukesha, Wis.-based Generac manufactures a wide range of generators and other engine-powered products to serve the residential, light commercial, industrial and construction markets.