Generac Holdings, leading manufacturer of power generation equipment and other engine-powered products posted net sales of $311.8 million during the first quarter of 2015 as compared to $342 million in the first quarter of 2014, an 8.8-percent decline. Residential product sales were $156.8 million compared to $164 million in the year-ago quarter, with lower portable generator shipments because of a decline in power outage severity compared to the previous year.
Commercial & Industrial product sales were $133.8 million compared to $157.4 million a year ago, a 15-percent slide, primarily because of a decline in shipments to telecom national account customers and, to a lesser extent, oil and gas markets.
Net income during the first quarter of 2015 was $19.7 million compared to $34.7 million in the year-ago quarter. Adjusted EBITDA was $57.1 million compared to $77.5 million a year ago.
“The first quarter of this year was particularly challenging with several of the end markets we serve performing below our expectations,” said Aaron Jagdfeld, president and CEO. “With an extremely low power outage environment and difficult winter weather, shipments of residential products were weaker than expected. In addition, the rapid decline in oil-and-gas-related investment coupled with continued softness in capital spending in the telecom sector also had a negative impact on our C&I product shipments during the quarter. Despite a softer demand environment in the near term, we remain focused on driving awareness for our products, expanding and developing our distribution, launching innovative new products and controlling costs.”
Jagfeld added that he expects many of the current headwinds to be temporary. “Numerous long-term growth opportunities that impact our business remain firmly in place,” said Jagfeld. “We have become a more diversified company in recent years, with a strong balance sheet and the capability to generate significant free cash flow, providing us with the flexibility to drive our Powering Ahead strategic plan forward.”
Generac is headquartered in Waukesha, Wis.
