Generac Second-Quarter Sales Leap 45 Percent

July 31, 2013

Generac Holdings, a designer and manufacturer of generators and other engine-powered products, reported net sales for its second quarter ended June 30, increased year-over-year by 45.0 percent to $346.7 million as compared to $239.1 million in the second quarter of 2012. Net income during the second quarter of 2013 was $28.3 million, or $0.40 per share, as compared to $9.3 million or $0.14 per share for the same period of 2012.

Adjusted EBITDA in the quarter increased 65.0 percent to $90.1 million as compared to $54.6 million in the second quarter last year.

“Our second-quarter results continue to demonstrate the success we are experiencing in executing our Powering Ahead strategic plan,” said Aaron Jagdfeld, president and CEO. “We executed on very strong organic revenue growth again this quarter, which was broad based across our major product categories and all significant regions of the United States. Our growth was driven by continuing adoption of home standby generators, the further expansion of our distribution, and increasing demand within certain of our commercial and industrial end markets. When you combine our organic growth initiatives with our recent acquisitions, we are driving a new and higher baseline of demand for our products, while also becoming a more balanced company with global scale."

For the second consecutive year, the company returned significant capital to shareholders during the quarter through a special cash dividend of $5.00 per share paid on June 21.

As announced last week Generac has entered into a purchase agreement to acquire Tower Light srl, a leading European developer and supplier of mobile light towers with headquarters outside Milan, Italy. Targeted to close in early August using cash on hand, the acquisition positions the company as a global leader in mobile light towers and accelerates its global expansion efforts.

The company is revising upward its sales guidance for full-year 2013 primarily due to continued strong demand for home standby and portable generators, an improved outlook for C&I shipments, as well as the expected closing of the Tower Light acquisition early in the third quarter of 2013. Full-year 2013 net sales are now expected to increase in the low-20-percent range over the prior year, which is an increase from the low-to-mid teens rate previously expected. Specifically for the second half 2013, net sales are now forecasted to increase in the mid-single digit range as compared to the very strong prior-year second-half period.

“The powerful macro drivers for our business, which include the underinvestment in the electrical grid, an aging population, and an increasing reliance on uninterrupted power and data, should drive further awareness of the need for back-up power,” Jagdfeld said. “Through innovation and solid execution of our strategic initiatives, we expect to continue to drive the adoption of standby generators for homes and businesses. At the same time, we are building Generac into a larger, more balanced company with improved global focus by continuing to diversify our product offerings, our distribution channels, and the geographies we serve.”

Waukesha, Wis.-based Generac is a leading provider of power equipment serving residential, light commercial, industrial and construction markets. Generac's power products are available internationally through a broad network of independent dealers, retailers, wholesalers and equipment rental companies.