Generac Holdings Inc. (NYSE: GNRC) a leading designer and
manufacturer of power generation equipment and other engine
powered products, is reporting financial results for its fourth
quarter and full-year for 2014.
quarter net sales increased by 7.4 percent to $404.0 million as
compared to $376.2 million in the prior year fourth quarter.
during the fourth quarter of 2014 was $49.4 million, or $0.70
per share, as compared to $48.5 million, or $0.69 per share, for
the same period of 2013. Adjusted net income, as defined in the
accompanying reconciliation schedules, was $68.4 million, or
$0.98 per share, as compared to $77.5 million, or $1.11 per
share, in the fourth quarter of 2013.
EBITDA, as defined in the accompanying reconciliation schedules,
was $92.2 million as compared to $103.6 million in the fourth
quarter last year.
from operations in the fourth quarter of 2014 was $110.5 million
as compared to $104.7 million in the prior year quarter. Free
cash flow, as defined in the accompanying reconciliation
schedules, was a quarterly record of $98.5 million as compared
to $88.2 million in the fourth quarter of 2013.
liquidity at December 31, 2014 was strong with cash and cash
equivalents of$189.8 million and approximately $150 million
available on the Company’s ABL revolving credit facility. Total
net debt to adjusted EBITDA, as defined in the accompanying
reconciliation schedules, at the end of the fourth quarter was
sales were $1.461 billion during 2014 as compared to $1.486
billion in 2013.
during 2014 was $174.6 million, or $2.49 per share, as compared
to$174.5 million or $2.51 per share for 2013. Adjusted net
income was $234.2 million, or $3.34 per share, as compared to
$301.7 million, or $4.33 per share, in 2013.
EBITDA for 2014 was $337.3 million as compared to $402.6 million
from operations during 2014 was $253.0 million as compared to
$259.9 million in the prior year. Free cash flow was $218.3
million as compared to $229.2 million in 2013.
acquired Pramac America, LLC in early September, resulting in
the ownership of the Powermate trade name and the right to
license the DeWalt brand name for certain residential engine
the Company acquired MAC, Inc. and its related entities in early
October, a leading manufacturer of premium-grade commercial and
industrial mobile heaters within the U.S. and Canada.
Uses of cash
during 2014 included $34.7 million for capital expenditures,
$61.2 million related to acquisitions and $87.0 million for the
pre-payment of term loan debt, including a $25.0 million payment
made during the fourth quarter.
standby generator sales exceeded our expectations during the
fourth quarter, with activation rates proving to be resilient as
we leveraged our innovative sales and marketing techniques to
help create awareness for the product category in a below-normal
power outage environment,” said Aaron Jagdfeld, president and
chief executive officer. “For full-year 2014, organic sales
improved over 2013 when excluding the approximately $140 million
sales headwind in the prior year from Superstorm Sandy, allowing
us to hold a new and higher baseline of demand despite certain
of our end markets performing below our expectations during the
year. In addition, the revenue base for our C&I products
continued to increase in scale during 2014, and now represents
nearly half of our total sales. We also once again generated a
strong level of free cash flow, generating over $200 million for
the third consecutive year.”
is initiating guidance for 2015 with net sales expected to
increase in the low-to-mid-single digit range as compared to the
2015 as a more diversified company, with a strong balance sheet
and free cash flow generation capability that provide us the
flexibility to drive our Powering Ahead strategic plan forward,”
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