Generac Holdings, a designer and manufacturer of generators and other engine-powered products, reported financial results for its first quarter ended March 31. Net sales increased year-over-year by 137.6 percent to $294.6 million as compared to $124.0 million in the first quarter of 2011. Commercial & Industrial product sales increased 137 percent compared to the prior year first quarter.
Net sales over the trailing four quarters were $962.6 million and on a pro-forma basis, when including the results for Magnum Products for the entire period, net sales were $1.04 billion. Net income increased year-over-year to $30.1 million as compared to $4.8 million for the first quarter of 2011. Adjusted EBITDA increased to $75.8 million as compared to $27.5 million in the first quarter last year.
“Our first-quarter results demonstrate the significant earnings power and strong free cash flow generation of Generac’s business model,” said Aaron Jagdfeld, president and CEO. “With the hard work of our employees and our flexible operations, we were able to quickly meet the increased demand for our products following the major outage events that took place in the second half of 2011. Shipments of home standby generators were again robust during the first quarter, and we continue to gain share in portable generators, further solidifying our leadership position in these markets. Additionally, the Magnum acquisition outperformed our expectations again this quarter as demand for mobile equipment remained strong in the rental markets.”
Primarily as a result of an increased full-year outlook for residential sales, the company is revising upward its guidance for full-year 2012. Total net sales are now expected to increase towards the high end of its previously disclosed mid-to-high teens rate as compared to 2011. For the second quarter of 2012, net sales are forecasted to increase approximately 35-40 percent compared to to the second quarter of 2011.
Waukesha, Wis.-based Generac designs and manufactures a wide range of generators and other engine-powered products. The company markets and distributes its products primarily under its Generac and Magnum brand names.