Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 29, 2021 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001474735 | |
Entity Registrant Name | GENERAC HOLDINGS INC. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-34627 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-5654756 | |
Entity Address, Address Line One | S45 W29290 Hwy 59 | |
Entity Address, City or Town | Waukesha | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53189 | |
City Area Code | 262 | |
Local Phone Number | 544-4811 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | GNRC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 62,954,539 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 744,814 | $ 655,128 |
Accounts receivable, less allowance for credit losses | 428,702 | 374,906 |
Inventories | 644,576 | 603,317 |
Prepaid expenses and other assets | 39,515 | 36,382 |
Total current assets | 1,857,607 | 1,669,733 |
Property and equipment, net | 345,563 | 343,936 |
Customer lists, net | 46,476 | 49,205 |
Patents and technology, net | 80,250 | 86,727 |
Other intangible assets, net | 9,182 | 9,932 |
Tradenames, net | 145,074 | 146,159 |
Goodwill | 849,294 | 855,228 |
Deferred income taxes | 1,360 | 1,497 |
Operating lease and other assets | 87,332 | 73,006 |
Total assets | 3,422,138 | 3,235,423 |
Current liabilities: | ||
Short-term borrowings | 26,534 | 39,282 |
Accounts payable | 387,933 | 330,247 |
Accrued wages and employee benefits | 46,736 | 63,036 |
Other accrued liabilities | 245,009 | 204,812 |
Current portion of long-term borrowings and finance lease obligations | 4,053 | 4,147 |
Total current liabilities | 710,265 | 641,524 |
Long-term borrowings and finance lease obligations | 841,516 | 841,764 |
Deferred income taxes | 122,196 | 115,769 |
Operating lease and other long-term liabilities | 160,338 | 179,955 |
Total liabilities | 1,834,315 | 1,779,012 |
Redeemable noncontrolling interests | 63,254 | 66,207 |
Stockholders’ equity: | ||
Common stock, par value $0.01, 500,000,000 shares authorized, 72,205,746 and 72,024,329 shares issued at March 31, 2021 and December 31, 2020, respectively | 723 | 721 |
Additional paid-in capital | 534,303 | 525,541 |
Treasury stock, at cost | (358,362) | (332,164) |
Excess purchase price over predecessor basis | (202,116) | (202,116) |
Retained earnings | 1,581,681 | 1,432,565 |
Accumulated other comprehensive loss | (31,499) | (34,254) |
Stockholders’ equity attributable to Generac Holdings Inc. | 1,524,730 | 1,390,293 |
Noncontrolling interests | (161) | (89) |
Total stockholders' equity | 1,524,569 | 1,390,204 |
Total liabilities and stockholders’ equity | $ 3,422,138 | $ 3,235,423 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 72,205,746 | 72,024,329 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net sales | $ 807,434 | $ 475,915 |
Costs of goods sold | 485,620 | 303,595 |
Gross profit | 321,814 | 172,320 |
Operating expenses: | ||
Selling and service | 68,424 | 55,139 |
Research and development | 22,388 | 18,649 |
General and administrative | 32,899 | 27,889 |
Amortization of intangibles | 8,979 | 7,781 |
Total operating expenses | 132,690 | 109,458 |
Income from operations | 189,124 | 62,862 |
Other (expense) income: | ||
Interest expense | (7,723) | (9,053) |
Investment income | 603 | 960 |
Other, net | 3,309 | (1,914) |
Total other expense, net | (3,811) | (10,007) |
Income before provision for income taxes | 185,313 | 52,855 |
Provision for income taxes | 35,368 | 9,444 |
Net income | 149,945 | 43,411 |
Net income (loss) attributable to noncontrolling interests | 952 | (1,049) |
Net income attributable to Generac Holdings Inc. | $ 148,993 | $ 44,460 |
Net income attributable to Generac Holdings Inc. per common share - basic: (in dollars per share) | $ 2.39 | $ 0.69 |
Weighted average common shares outstanding - basic: (in shares) | 62,478,734 | 62,126,481 |
Net income attributable to Generac Holdings Inc. per common share - diluted: (in dollars per share) | $ 2.33 | $ 0.68 |
Weighted average common shares outstanding - diluted: (in shares) | 64,099,073 | 63,283,737 |
Comprehensive income attributable to Generac Holdings Inc. | $ 153,816 | $ (3,098) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Treasury Stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Excess Purchase Price over Predecessor Basis [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Parent [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Excess Purchase Price over Predecessor Basis [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2019 | 71,667,726 | (9,103,013) | ||||||||||||||||
Balance at Dec. 31, 2019 | $ 0 | $ 0 | $ 0 | $ 0 | $ (1,147) | $ 0 | $ (1,147) | $ 0 | $ (1,147) | $ 717 | $ 498,866 | $ (324,551) | $ (202,116) | $ 1,084,383 | $ (24,917) | $ 1,032,382 | $ 469 | $ 1,032,851 |
Unrealized gain (loss) on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | (15,813) | (15,813) | 0 | (15,813) | |||||||||
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | (33,214) | (33,214) | (4) | (33,218) | |||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 176,949 | 0 | ||||||||||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 2 | 755 | $ 0 | 0 | 0 | 0 | 757 | 0 | 757 | |||||||||
Net share settlement of restricted stock awards (in shares) | 0 | (66,881) | ||||||||||||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (6,835) | 0 | 0 | 0 | (6,835) | 0 | (6,835) | |||||||||
Share-based compensation | 0 | 4,574 | 0 | 0 | 0 | 0 | 4,574 | 0 | 4,574 | |||||||||
Redemption value adjustment | 0 | 0 | 0 | 0 | (1,522) | 0 | (1,522) | 0 | (1,522) | |||||||||
Net income attributable to Generac Holdings Inc. | $ 0 | 0 | $ 0 | 0 | 44,460 | 0 | 44,460 | 44,460 | ||||||||||
Net income | (420) | |||||||||||||||||
Net income | 44,040 | |||||||||||||||||
Balance (in shares) at Mar. 31, 2020 | 71,844,675 | (9,169,894) | ||||||||||||||||
Balance at Mar. 31, 2020 | $ 719 | 504,195 | $ (331,386) | (202,116) | 1,126,174 | (73,944) | 1,023,642 | 45 | 1,023,687 | |||||||||
Balance (in shares) at Dec. 31, 2020 | 72,024,329 | (9,173,731) | ||||||||||||||||
Balance at Dec. 31, 2020 | $ 721 | 525,541 | $ (332,164) | (202,116) | 1,432,565 | (34,254) | 1,390,293 | (89) | 1,390,204 | |||||||||
Unrealized gain (loss) on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | 14,995 | 14,995 | 0 | 14,995 | |||||||||
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | (12,240) | (12,240) | (3) | (12,243) | |||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 181,417 | 0 | ||||||||||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 2 | 3,314 | $ 0 | 0 | 0 | 0 | 3,316 | 0 | 3,316 | |||||||||
Net share settlement of restricted stock awards (in shares) | 0 | (78,087) | ||||||||||||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (26,198) | 0 | 0 | 0 | (26,198) | 0 | (26,198) | |||||||||
Share-based compensation | 0 | 5,448 | 0 | 0 | 0 | 0 | 5,448 | 0 | 5,448 | |||||||||
Redemption value adjustment | 0 | 0 | 0 | 0 | 123 | 0 | 123 | 0 | 123 | |||||||||
Net income attributable to Generac Holdings Inc. | $ 0 | 0 | $ 0 | 0 | 148,993 | 0 | 148,993 | 148,993 | ||||||||||
Net income | (69) | |||||||||||||||||
Net income | 148,924 | |||||||||||||||||
Balance (in shares) at Mar. 31, 2021 | 72,205,746 | (9,251,818) | ||||||||||||||||
Balance at Mar. 31, 2021 | $ 723 | $ 534,303 | $ (358,362) | $ (202,116) | $ 1,581,681 | $ (31,499) | $ 1,524,730 | $ (161) | $ 1,524,569 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent [Member] | ||
Unrealized gain (loss) on interest rate swaps, tax | $ 5,065 | $ (5,341) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Operating activities | |||
Net income | $ 149,945 | $ 43,411 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 9,258 | 8,335 | |
Amortization of intangible assets | 8,979 | 7,781 | |
Amortization of original issue discount and deferred financing costs | 646 | 642 | |
Deferred income taxes | 1,702 | 1,571 | |
Share-based compensation expense | [1] | 5,448 | 4,574 |
Loss (gain) on disposal of assets | (3,979) | 0 | |
Other non-cash charges | 281 | 416 | |
Net changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (56,710) | (5,687) | |
Inventories | (45,833) | (48,145) | |
Other assets | (1,773) | (6,017) | |
Accounts payable | 56,769 | 12,817 | |
Accrued wages and employee benefits | (15,812) | (18,125) | |
Other accrued liabilities | 63,014 | 12,976 | |
Excess tax benefits from equity awards | (19,392) | (3,203) | |
Net cash provided by operating activities | 152,543 | 11,346 | |
Investing activities | |||
Proceeds from sale of property and equipment | 5 | 0 | |
Proceeds from sale of investment | 4,902 | 0 | |
Proceeds from beneficial interests in securitization transactions | 712 | 618 | |
Expenditures for property and equipment | (27,469) | (12,894) | |
Net cash used in investing activities | (21,850) | (12,276) | |
Financing activities | |||
Proceeds from short-term borrowings | 32,215 | 20,694 | |
Repayments of short-term borrowings | (43,979) | (25,526) | |
Repayments of long-term borrowings and finance lease obligations | (1,604) | (1,176) | |
Payment of contingent acquisition consideration | (3,750) | (4,000) | |
Taxes paid related to equity awards | (35,901) | (7,666) | |
Proceeds from exercise of stock options | 13,011 | 1,590 | |
Net cash used in financing activities | (40,008) | (16,084) | |
Effect of exchange rate changes on cash and cash equivalents | (999) | 1,587 | |
Net increase (decrease) in cash and cash equivalents | 89,686 | (15,427) | |
Cash and cash equivalents at beginning of period | 655,128 | 322,883 | |
Cash and cash equivalents at end of period | $ 744,814 | $ 307,456 | |
[1] | Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods. |
Note 1 - Description of Busines
Note 1 - Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 1. Description of Business and Basis of Presentation Founded in 1959, Over the years, the Company has executed a number of acquisitions that support its strategic plan (as discussed in Item 1 10 December 31, 2020 ● In July 2020, ● In September 2020, 2009 zero ● In October 2020, 2003 one The condensed consolidated financial statements include the accounts of the Company and its subsidiaries that are consolidated in conformity with U.S. generally accepted accounting principles (GAAP). All intercompany amounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of March 31, 2021 three March 31, 2021 2020 three March 31, 2021 2020 three March 31, 2021 2020 not not The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10 December 31, 2020 New Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (FASB) in the form of accounting standard updates (“ASUs”) to the FASB Accounting Standards Codification (ASC). ASUs issued were assessed and have already been adopted in a prior period or determined to be either not not |
Note 2 - Acquisitions
Note 2 - Acquisitions | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2 . Acquisitions Fiscal 2021 The Company made no three March 31, 2021. Fiscal 2020 Acquisition of Enbala On October 7, 2020, The Company recorded its preliminary purchase price allocation during the fourth 2020 March 31, 2021. not not Other Acquisitions In July 2020, In September 2020, The combined purchase price for these acquisitions was $22,815 and was funded solely through cash on hand. The accompanying condensed consolidated financial statements include the results of the acquired businesses since the dates of acquisition through March 31, 2021. not not Summary Purchase Price Allocations The fair values assigned to certain assets acquired and liabilities assumed, as of the acquisition dates, are as follows for the 2020 2020 Accounts receivable $ 5,102 Inventories 3,575 Prepaid expenses and other assets 858 Property and equipment 635 Intangible assets 26,257 Goodwill 42,720 Other assets 1,124 Total assets acquired 80,271 Accounts payable 4,088 Accrued wages and employee benefits 700 Other accrued liabilities 2,151 Deferred income taxes 4,134 Other long-term liabilities 4,401 Net assets acquired $ 64,797 The fair values above are preliminary for up to one not twelve |
Note 3 - Redeemable Noncontroll
Note 3 - Redeemable Noncontrolling Interest | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Redeemable Noncontrolling Interest [Text Block] | 3. On March 1, 2016, February 2019, five five no April 1, 2021. On February 1, 2019, five may five For both transactions, the redeemable noncontrolling interest is recorded at the greater of the initial fair value, increased or decreased for the noncontrolling interests’ share of comprehensive income (loss), or the estimated redemption value, with any adjustments to the redemption value impacting retained earnings, but not 13, Three Months Ended March 31, 2021 2020 Balance at beginning of period $ 66,207 $ 61,227 Net income 1,021 (629 ) Foreign currency translation (3,851 ) (2,216 ) Redemption value adjustment (123 ) 1,522 Balance at end of period $ 63,254 $ 59,904 |
Note 4 - Derivative Instruments
Note 4 - Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 4 . Derivative Instruments and Hedging Activities The Company records all derivatives in accordance with ASC 815, Derivatives and Hedging not The Company periodically utilizes commodity derivatives and foreign currency forward purchase and sales contracts in the normal course of business. Because these contracts do not not Interest Rate Swaps In 2017, twenty twelve March 31, 2021 December 2019, March 2020, three fifteen March 31, 2021 three March 31, 2021 2020 Fair Value The following table presents the fair value of all of the Company’s derivatives: March 31, 2021 December 31, 2020 Commodity contracts $ 797 $ 1,386 Foreign currency contracts (148 ) (154 ) Interest rate swaps (9,476 ) (29,536 ) The fair value of the commodity contracts is included in prepaid expenses and other current assets, and the fair values of the foreign currency contracts and interest rate swaps are included in other accrued liabilities and other long-term liabilities, respectively, in the condensed consolidated balance sheets as of March 31, 2021 December 31, 2020. March 31, 2021 December 31, 2020 |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5. Measurements ASC 820 10, Fair Value Measurement 820 10 three 1 2 3 no The Company believes the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, short-term borrowings and ABL facility borrowings), excluding Term Loan borrowings, approximates the fair value of these instruments based upon their short-term nature. The fair value of Term Loan borrowings, which have an aggregate carrying value of $815,835, was approximately $832,075 (Level 2 March 31, 2021 For the fair value of the derivatives measured on a recurring basis, refer to the fair value table in Note 4, 2. 820 10. |
Note 6 - Accumulated Other Comp
Note 6 - Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 6. Loss The following presents a tabular disclosure of changes in AOCL during the three March 31, 2021 2020 Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January, 1 2021 $ (11,674 ) $ (22,580 ) $ (34,254 ) Other comprehensive income (loss) before reclassifications (12,240 ) 14,995 (1) 2,755 Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (12,240 ) 14,995 2,755 Ending Balance – March 31, 2021 $ (23,914 ) $ (7,585 ) $ (31,499 ) Foreign Currency Translation Adjustments Unrealized Loss on Cash Flow Hedges Total Beginning Balance – January, 1 2020 $ (16,622 ) $ (8,295 ) $ (24,917 ) Other comprehensive income (loss) before reclassifications (33,214 ) (2) (15,813 ) (3) (49,027 ) Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (33,214 ) (15,813 ) (49,027 ) Ending Balance – March 31, 2020 $ (49,836 ) $ (24,108 ) $ (73,944 ) ( 1 Represents unrealized gains of $20,060 on the interest rate swaps, net of tax effect of $(5,065) for the three March 31, 2021 ( 2 Represents unfavorable impact from the strengthening of the U.S. dollar against foreign currencies during the three March 31, 2020, ( 3 Represents unrealized losses of $(21,154) on the interest rate swaps, net of tax effect of $5,341 for the three March 31, 2020 |
Note 7 - Segment Reporting
Note 7 - Segment Reporting | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7 . Segment Reporting The Company has two two The Company's product offerings consist primarily of power generation equipment, energy storage systems, and other power products geared for varying end customer uses. Residential products and C&I products are each a similar class of products based on similar power output and end customer. The breakout of net sales between residential, C&I, and other products by reportable segment is as follows: Net Sales by Segment Three Months Ended March 31, 2021 Product Classes Domestic International Total Residential products $ 522,215 $ 19,934 $ 542,149 Commercial & industrial products 117,879 84,512 202,391 Other 52,644 10,250 62,894 Total net sales $ 692,738 $ 114,696 $ 807,434 Three Months Ended March 31, 2020 Product Classes Domestic International Total Residential products $ 243,830 $ 13,789 $ 257,619 Commercial & industrial products 95,827 76,239 172,066 Other 36,373 9,857 46,230 Total net sales $ 376,030 $ 99,885 $ 475,915 Residential products consist primarily of automatic home standby generators ranging in output from 7.5kW 150kW, C&I products consist of larger output stationary generators used in C&I applications with power outputs ranging from 10kW 3,250kW. Other consists primarily of aftermarket service parts and product accessories sold to our dealers, the amortization of extended warranty deferred revenue, remote monitoring and grid services subscription revenue, as well as installation and maintenance service revenue. The aftermarket service parts and product accessories are generally transferred to the customer at a point in time, while the extended warranty revenue and subscription revenue are recognized over the life of the contract. Other service revenue is recognized when the service is performed. Management evaluates the performance of its segments based primarily on Adjusted EBITDA, which is reconciled to income before provision for income taxes below. The computation of Adjusted EBITDA is based on the definition contained in the Company’s credit agreements. Adjusted EBITDA Three Months Ended March 31, 2021 2020 Domestic $ 207,073 $ 82,775 International 7,121 3,250 Total adjusted EBITDA $ 214,194 $ 86,025 Interest expense (7,723 ) (9,053 ) Depreciation and amortization (18,237 ) (16,116 ) Non-cash write-down and other adjustments (1) 3,868 (2,284 ) Non-cash share-based compensation expense (2) (5,448 ) (4,574 ) Transaction costs and credit facility fees (3) (914 ) (234 ) Business optimization and other charges (4) (159 ) (512 ) Other (268 ) (397 ) Income before provision for income taxes $ 185,313 $ 52,855 ( 1 Includes gains/losses on disposals of assets and investments, unrealized mark-to-market adjustments on commodity contracts, and certain foreign currency related adjustments. ( 2 Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods. ( 3 Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance, debt issuance or refinancing, together with certain fees relating to our senior secured credit facilities. ( 4 Represents severance and other non-recurring restructuring charges related to the consolidation of certain of our facilities. The Company’s sales in the U.S. represented approximately 83% and 77% of total sales for the three March 31, 2021 2020 March 31, 2021 December 31, 2020 |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 8 . Balance Sheet Details Inventories consist of the following: March 31, December 31, 2021 2020 Raw material $ 407,750 $ 375,516 Work-in-process 4,086 6,833 Finished goods 232,740 220,968 Total $ 644,576 $ 603,317 Property and equipment consists of the following: March 31, December 31, 2021 2020 Land and improvements $ 18,062 $ 18,363 Buildings and improvements 201,635 198,908 Machinery and equipment 151,850 153,696 Dies and tools 24,802 24,190 Vehicles 6,371 6,037 Office equipment and systems 110,780 107,923 Leasehold improvements 4,652 5,276 Construction in progress 35,010 30,227 Gross property and equipment 553,162 544,620 Accumulated depreciation (207,599 ) (200,684 ) Total $ 345,563 $ 343,936 Total property and equipment included finance leases of $26,696 and $27,269 at March 31, 2021 December 31, 2020 |
Note 9 - Product Warranty Oblig
Note 9 - Product Warranty Obligations | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 9. Obligations The Company records a liability for standard product warranty obligations accounted for as assurance warranties at the time of sale of the product to a customer based upon historical warranty experience. The Company also records a liability for specific warranty matters when they become known and are reasonably estimable. The following is a tabular reconciliation of the Company’s standard product warranty liability accounted for as an assurance warranty: Three Months Ended March 31, 2021 2020 Balance at beginning of period $ 59,218 $ 49,316 Payments (9,779 ) (7,588 ) Provision for warranty issued 14,830 8,286 Changes in estimates for pre-existing warranties 1,028 (991 ) Balance at end of period $ 65,297 $ 49,023 Additionally, the Company sells extended warranty coverage for certain products, which it accounts for as a service warranty. The sales of extended warranties are recorded as deferred revenue, and typically have a duration of five ten Three Months Ended March 31, 2021 2020 Balance at beginning of period $ 89,788 $ 78,738 Deferred revenue contracts issued 8,031 5,939 Amortization of deferred revenue contracts (4,637 ) (3,797 ) Balance at end of period $ 93,182 $ 80,880 The timing of recognition of the Company’s deferred revenue balance related to extended warranties at March 31, 2021 Remainder of 2021 $ 13,707 2022 19,781 2023 18,092 2024 13,373 2025 9,570 After 2025 18,659 Total $ 93,182 Standard product warranty obligations and extended warranty related deferred revenues are included in the condensed consolidated balance sheets as follows: March 31, December 31, 2021 2020 Product warranty liability Current portion - other accrued liabilities $ 40,632 $ 37,417 Long-term portion - other long-term liabilities 24,665 21,801 Total $ 65,297 $ 59,218 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 22,251 $ 18,857 Long-term portion - other long-term liabilities 70,931 70,931 Total $ 93,182 $ 89,788 |
Note 10 - Contract Balances
Note 10 - Contract Balances | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 10. In certain cases, the Company’s customers pay for their goods in advance. These prepayments are recognized as customer deposits (contract liabilities) and recorded in other accrued liabilities in the condensed consolidated balance sheets. The balance of customer deposits was $30,659 and $25,710 at March 31, 2021 December 31, 2020 three March 31, 2021 December 31, 2020 one |
Note 11 - Credit Agreements
Note 11 - Credit Agreements | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 11 . Credit Agreements Short-term borrowings are included in the condensed consolidated balance sheets as follows: March 31, December 31, 2021 2020 ABL Facility $ - $ - Other lines of credit 26,534 39,282 Total $ 26,534 $ 39,282 Long-term borrowings are included in the condensed consolidated balance sheets as follows: March 31, December 31, 2021 2020 Term Loan $ 830,000 $ 830,000 Original issue discount and deferred financing costs (14,803 ) (15,450 ) Finance lease obligation 27,004 27,371 Other 3,368 3,990 Total 845,569 845,911 Less: current portion of debt 1,756 1,836 Less: current portion of finance lease obligation 2,297 2,311 Total $ 841,516 $ 841,764 The Company’s credit agreements originally provided for a $1,200,000 term loan B credit facility (Term Loan) and currently include a $300,000 uncommitted incremental term loan facility. The maturity date of the Term Loan is currently December 13, 2026. first second The Term Loan does not 1.00 March 31, 2021 1.00 no The Company’s credit agreements also provide for a senior secured ABL revolving credit facility (ABL Facility). Borrowings under the ABL Facility are guaranteed by all of the Company’s wholly-owned domestic restricted subsidiaries, and are secured by associated collateral agreements which pledge a first second As of March 31, 2021 As of March 31, 2021 December 31, 2020 |
Note 12 - Stock Repurchase Prog
Note 12 - Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | 12 . Stock Repurchase Program In September 2018, October 2020. September 2020, October 27, 2020, may may may may no three March 31, 2021 2020. August 2015, |
Note 13 - Earnings Per Share
Note 13 - Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 13. Share Basic earnings per share is calculated by dividing net income attributable to the common shareholders of the Company by the weighted average number of common shares outstanding during the period, exclusive of restricted shares. Except where the result would be anti-dilutive, diluted earnings per share is calculated by assuming the vesting of unvested restricted stock and the exercise of stock options. Refer to Note 3 The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share: Three Months Ended March 31, 2021 2020 Numerator Net income attributable to Generac Holdings Inc. $ 148,993 $ 44,460 Redeemable noncontrolling interest redemption value adjustment 123 (1,522 ) Net income attributable to common shareholders $ 149,116 $ 42,938 Denominator Weighted average shares, basic 62,478,734 62,126,481 Dilutive effect of stock compensation awards (1) 1,620,339 1,157,256 Diluted shares 64,099,073 63,283,737 Net income attributable to common shareholders per share Basic $ 2.39 $ 0.69 Diluted $ 2.33 $ 0.68 ( 1 three March 31, 2021 2020 |
Note 14 - Income Taxes
Note 14 - Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 14 . Income Taxes The effective income tax rates for the three March 31, 2021 2020 |
Note 15 - Commitments and Conti
Note 15 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 15 . Commitments and Contingencies The Company has an arrangement with a finance company to provide floor plan financing for certain dealers. The Company receives payment from the finance company after shipment of product to the dealer. The Company participates in the cost of dealer financing up to certain limits and has agreed to repurchase products repossessed by the finance company, but does not March 31, 2021 December 31, 2020 In the normal course of business, the Company is named as a defendant in various lawsuits in which claims are asserted against the Company. In the opinion of management, the liabilities, if any, which may not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (FASB) in the form of accounting standard updates (“ASUs”) to the FASB Accounting Standards Codification (ASC). ASUs issued were assessed and have already been adopted in a prior period or determined to be either not not |
Note 2 - Acquisitions (Tables)
Note 2 - Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 2020 Accounts receivable $ 5,102 Inventories 3,575 Prepaid expenses and other assets 858 Property and equipment 635 Intangible assets 26,257 Goodwill 42,720 Other assets 1,124 Total assets acquired 80,271 Accounts payable 4,088 Accrued wages and employee benefits 700 Other accrued liabilities 2,151 Deferred income taxes 4,134 Other long-term liabilities 4,401 Net assets acquired $ 64,797 |
Note 3 - Redeemable Noncontro_2
Note 3 - Redeemable Noncontrolling Interest (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Redeemable Noncontrolling Interest [Table Text Block] | Three Months Ended March 31, 2021 2020 Balance at beginning of period $ 66,207 $ 61,227 Net income 1,021 (629 ) Foreign currency translation (3,851 ) (2,216 ) Redemption value adjustment (123 ) 1,522 Balance at end of period $ 63,254 $ 59,904 |
Note 4 - Derivative Instrumen_2
Note 4 - Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule Of Derivative Assets (Liabilities) at Fair Value [Table Text Block] | March 31, 2021 December 31, 2020 Commodity contracts $ 797 $ 1,386 Foreign currency contracts (148 ) (154 ) Interest rate swaps (9,476 ) (29,536 ) |
Note 6 - Accumulated Other Co_2
Note 6 - Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January, 1 2021 $ (11,674 ) $ (22,580 ) $ (34,254 ) Other comprehensive income (loss) before reclassifications (12,240 ) 14,995 (1) 2,755 Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (12,240 ) 14,995 2,755 Ending Balance – March 31, 2021 $ (23,914 ) $ (7,585 ) $ (31,499 ) Foreign Currency Translation Adjustments Unrealized Loss on Cash Flow Hedges Total Beginning Balance – January, 1 2020 $ (16,622 ) $ (8,295 ) $ (24,917 ) Other comprehensive income (loss) before reclassifications (33,214 ) (2) (15,813 ) (3) (49,027 ) Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (33,214 ) (15,813 ) (49,027 ) Ending Balance – March 31, 2020 $ (49,836 ) $ (24,108 ) $ (73,944 ) |
Note 7 - Segment Reporting (Tab
Note 7 - Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Net Sales by Segment Three Months Ended March 31, 2021 Product Classes Domestic International Total Residential products $ 522,215 $ 19,934 $ 542,149 Commercial & industrial products 117,879 84,512 202,391 Other 52,644 10,250 62,894 Total net sales $ 692,738 $ 114,696 $ 807,434 Three Months Ended March 31, 2020 Product Classes Domestic International Total Residential products $ 243,830 $ 13,789 $ 257,619 Commercial & industrial products 95,827 76,239 172,066 Other 36,373 9,857 46,230 Total net sales $ 376,030 $ 99,885 $ 475,915 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Adjusted EBITDA Three Months Ended March 31, 2021 2020 Domestic $ 207,073 $ 82,775 International 7,121 3,250 Total adjusted EBITDA $ 214,194 $ 86,025 Interest expense (7,723 ) (9,053 ) Depreciation and amortization (18,237 ) (16,116 ) Non-cash write-down and other adjustments (1) 3,868 (2,284 ) Non-cash share-based compensation expense (2) (5,448 ) (4,574 ) Transaction costs and credit facility fees (3) (914 ) (234 ) Business optimization and other charges (4) (159 ) (512 ) Other (268 ) (397 ) Income before provision for income taxes $ 185,313 $ 52,855 |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, December 31, 2021 2020 Raw material $ 407,750 $ 375,516 Work-in-process 4,086 6,833 Finished goods 232,740 220,968 Total $ 644,576 $ 603,317 |
Property, Plant and Equipment [Table Text Block] | March 31, December 31, 2021 2020 Land and improvements $ 18,062 $ 18,363 Buildings and improvements 201,635 198,908 Machinery and equipment 151,850 153,696 Dies and tools 24,802 24,190 Vehicles 6,371 6,037 Office equipment and systems 110,780 107,923 Leasehold improvements 4,652 5,276 Construction in progress 35,010 30,227 Gross property and equipment 553,162 544,620 Accumulated depreciation (207,599 ) (200,684 ) Total $ 345,563 $ 343,936 |
Note 9 - Product Warranty Obl_2
Note 9 - Product Warranty Obligations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended March 31, 2021 2020 Balance at beginning of period $ 59,218 $ 49,316 Payments (9,779 ) (7,588 ) Provision for warranty issued 14,830 8,286 Changes in estimates for pre-existing warranties 1,028 (991 ) Balance at end of period $ 65,297 $ 49,023 Three Months Ended March 31, 2021 2020 Balance at beginning of period $ 89,788 $ 78,738 Deferred revenue contracts issued 8,031 5,939 Amortization of deferred revenue contracts (4,637 ) (3,797 ) Balance at end of period $ 93,182 $ 80,880 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Remainder of 2021 $ 13,707 2022 19,781 2023 18,092 2024 13,373 2025 9,570 After 2025 18,659 Total $ 93,182 |
Product Warranty Obligations Included In Consolidated Balance Sheet [Table Text Block] | March 31, December 31, 2021 2020 Product warranty liability Current portion - other accrued liabilities $ 40,632 $ 37,417 Long-term portion - other long-term liabilities 24,665 21,801 Total $ 65,297 $ 59,218 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 22,251 $ 18,857 Long-term portion - other long-term liabilities 70,931 70,931 Total $ 93,182 $ 89,788 |
Note 11 - Credit Agreements (Ta
Note 11 - Credit Agreements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Short-term Debt [Table Text Block] | March 31, December 31, 2021 2020 ABL Facility $ - $ - Other lines of credit 26,534 39,282 Total $ 26,534 $ 39,282 |
Schedule of Long-term Debt Instruments [Table Text Block] | March 31, December 31, 2021 2020 Term Loan $ 830,000 $ 830,000 Original issue discount and deferred financing costs (14,803 ) (15,450 ) Finance lease obligation 27,004 27,371 Other 3,368 3,990 Total 845,569 845,911 Less: current portion of debt 1,756 1,836 Less: current portion of finance lease obligation 2,297 2,311 Total $ 841,516 $ 841,764 |
Note 13 - Earnings Per Share (T
Note 13 - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 2021 2020 Numerator Net income attributable to Generac Holdings Inc. $ 148,993 $ 44,460 Redeemable noncontrolling interest redemption value adjustment 123 (1,522 ) Net income attributable to common shareholders $ 149,116 $ 42,938 Denominator Weighted average shares, basic 62,478,734 62,126,481 Dilutive effect of stock compensation awards (1) 1,620,339 1,157,256 Diluted shares 64,099,073 63,283,737 Net income attributable to common shareholders per share Basic $ 2.39 $ 0.69 Diluted $ 2.33 $ 0.68 |
Note 2 - Acquisitions (Details
Note 2 - Acquisitions (Details Textual) - USD ($) $ in Thousands | Oct. 07, 2020 | Sep. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Goodwill, Ending Balance | $ 849,294 | $ 855,228 | ||
Acquisition of Enbala [Member] | ||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 41,982 | |||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 46,645 | |||
Goodwill, Ending Balance | $ 27,345 | |||
Other 2020 Acquisitions [Member] | ||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 22,815 |
Note 2 - Acquisitions - Prelimi
Note 2 - Acquisitions - Preliminary Price Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Goodwill | $ 849,294 | $ 855,228 |
The 2020 Acquisitions [Member] | ||
Accounts receivable | 5,102 | |
Inventories | 3,575 | |
Prepaid expenses and other assets | 858 | |
Property and equipment | 635 | |
Intangible assets | 26,257 | |
Goodwill | 42,720 | |
Other assets | 1,124 | |
Total assets acquired | 80,271 | |
Accounts payable | 4,088 | |
Accrued wages and employee benefits | 700 | |
Other accrued liabilities | 2,151 | |
Deferred income taxes | 4,134 | |
Other long-term liabilities | 4,401 | |
Net assets acquired | $ 64,797 |
Note 3 - Redeemable Noncontro_3
Note 3 - Redeemable Noncontrolling Interest (Details Textual) - USD ($) $ in Thousands | Feb. 01, 2019 | Feb. 28, 2019 | Mar. 01, 2016 |
Pramac [Member] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 35.00% | ||
Captiva Energy Solutions [Member] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | ||
Pramac [Member] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 65.00% | ||
Redeemable Noncontrolling Interest, Equity, Fair Value, Total | $ 34,253 | ||
Noncontrolling Interest Agreement, Extension of Term (Year) | 5 years | ||
Captiva Energy Solutions [Member] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ||
Redeemable Noncontrolling Interest, Equity, Fair Value, Total | $ 3,165 | ||
Business Acquisition, Noncontrolling Interest, Term of Put Option (Year) | 5 years | ||
Business Acquisition, Term of Call Option (Year) | 5 years |
Note 3 - Redeemable Noncontro_4
Note 3 - Redeemable Noncontrolling Interest - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Redemption value adjustment | $ 123 | $ (1,522) |
Redeemable Noncontrolling Interest [Member] | ||
Balance | 66,207 | 61,227 |
Net income | 1,021 | (629) |
Foreign currency translation | (3,851) | (2,216) |
Redemption value adjustment | (123) | 1,522 |
Balance | $ 63,254 | $ 59,904 |
Note 4 - Derivative Instrumen_3
Note 4 - Derivative Instruments and Hedging Activities (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2017 | Dec. 31, 2020USD ($) | |
Derivative, Number of Instruments Held, Total | 0 | |||
Derivative Assets (Liabilities), Net Fair Value of Derivative Contracts, Excluding Impact of Credit Risk | $ (9,017) | $ (28,667) | ||
Interest Rate Swap [Member] | ||||
Number of New Contracts Entered | 3 | 20 | ||
Derivative, Number of Instruments Outstanding | 15 | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 14,995 | $ (15,813) |
Note 4 - Derivative Instrumen_4
Note 4 - Derivative Instruments and Hedging Activities - Fair Value of Derivatives (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Commodity Contract [Member] | ||
Fair Value of Derivatives | $ 797 | $ 1,386 |
Foreign Exchange Contract [Member] | ||
Fair Value of Derivatives | (148) | (154) |
Interest Rate Swap [Member] | ||
Fair Value of Derivatives | $ (9,476) | $ (29,536) |
Note 5 - Fair Value Measureme_2
Note 5 - Fair Value Measurements (Details Textual) $ in Thousands | Mar. 31, 2021USD ($) |
Long-term Debt, Total | $ 815,835 |
Long-term Debt, Fair Value | $ 832,075 |
Note 6 - Accumulated Other Co_3
Note 6 - Accumulated Other Comprehensive Loss (Details Textual) - Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ 20,060 | $ (21,154) |
Other Comprehensive Income (Loss) before Reclassifications, Tax, Total | $ (5,065) | $ 5,341 |
Note 6 - Accumulated Other Co_4
Note 6 - Accumulated Other Comprehensive Loss - Disclosure of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | |||
Balance | $ 1,390,204 | $ 1,032,851 | ||
Balance | 1,524,569 | 1,023,687 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Balance | (11,674) | (16,622) | ||
Other comprehensive income (loss) before reclassifications | (12,240) | (33,214) | [1] | |
Amounts reclassified from AOCL | 0 | 0 | ||
Net current-period other comprehensive income (loss) | (12,240) | (33,214) | ||
Balance | (23,914) | (49,836) | ||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||
Balance | (22,580) | (8,295) | ||
Other comprehensive income (loss) before reclassifications | 14,995 | [2] | (15,813) | [3] |
Amounts reclassified from AOCL | 0 | 0 | ||
Net current-period other comprehensive income (loss) | 14,995 | (15,813) | ||
Balance | (7,585) | (24,108) | ||
AOCI Attributable to Parent [Member] | ||||
Balance | (34,254) | (24,917) | ||
Other comprehensive income (loss) before reclassifications | 2,755 | (49,027) | ||
Amounts reclassified from AOCL | 0 | 0 | ||
Net current-period other comprehensive income (loss) | 2,755 | (49,027) | ||
Balance | $ (31,499) | $ (73,944) | ||
[1] | Represents unfavorable impact from the strengthening of the U.S. dollar against foreign currencies during the three months ended March 31, 2020, particularly the Mexican Peso, Euro, Brazilian Real, and Russian Ruble. | |||
[2] | Represents unrealized gains of $20,060, net of tax effect of $(5,065) for the three months ended March 31, 2021. | |||
[3] | Represents unrealized losses of $(21,154), net of tax effect of $5,341 for the three months ended March 31, 2020. |
Note 7 - Segment Reporting (Det
Note 7 - Segment Reporting (Details Textual) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Number of Reportable Segments | 2 | |
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | UNITED STATES | ||
Concentration Risk, Percentage | 83.00% | 77.00% |
Geographic Concentration Risk [Member] | Net Assets, Geographic Area [Member] | UNITED STATES | ||
Concentration Risk, Percentage | 82.00% | 81.00% |
Note 7 - Segment Reporting - Ne
Note 7 - Segment Reporting - Net Sales by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net sales | $ 807,434 | $ 475,915 |
Domestic [Member] | ||
Net sales | 692,738 | 376,030 |
International [Member] | ||
Net sales | 114,696 | 99,885 |
Residential Power Products [Member] | ||
Net sales | 542,149 | 257,619 |
Residential Power Products [Member] | Domestic [Member] | ||
Net sales | 522,215 | 243,830 |
Residential Power Products [Member] | International [Member] | ||
Net sales | 19,934 | 13,789 |
Commercial and Industrial Power Products [Member] | ||
Net sales | 202,391 | 172,066 |
Commercial and Industrial Power Products [Member] | Domestic [Member] | ||
Net sales | 117,879 | 95,827 |
Commercial and Industrial Power Products [Member] | International [Member] | ||
Net sales | 84,512 | 76,239 |
Other Products and Services [Member] | ||
Net sales | 62,894 | 46,230 |
Other Products and Services [Member] | Domestic [Member] | ||
Net sales | 52,644 | 36,373 |
Other Products and Services [Member] | International [Member] | ||
Net sales | $ 10,250 | $ 9,857 |
Note 7 - Segment Reporting - Se
Note 7 - Segment Reporting - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Total adjusted EBITDA | $ 214,194 | $ 86,025 | |
Interest expense | (7,723) | (9,053) | |
Depreciation and amortization | (18,237) | (16,116) | |
Non-cash write-down and other adjustments (1) | [1] | 3,868 | (2,284) |
Non-cash share-based compensation expense (2) | [2] | (5,448) | (4,574) |
Transaction costs and credit facility fees (3) | [3] | (914) | (234) |
Business optimization and other charges (4) | [4] | (159) | (512) |
Other | (268) | (397) | |
Income before provision for income taxes | 185,313 | 52,855 | |
Domestic [Member] | |||
Total adjusted EBITDA | 207,073 | 82,775 | |
International [Member] | |||
Total adjusted EBITDA | $ 7,121 | $ 3,250 | |
[1] | Includes gains/losses on disposals of assets and investments, unrealized mark-to-market adjustments on commodity contracts, and certain foreign currency related adjustments. | ||
[2] | Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods. | ||
[3] | Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance, debt issuance or refinancing, together with certain fees relating to our senior secured credit facilities. | ||
[4] | Represents severance and other non-recurring restructuring charges related to the consolidation of certain of our facilities. |
Note 8 - Balance Sheet Detail_2
Note 8 - Balance Sheet Details (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Capital Leases, Balance Sheet, Assets by Major Class, Net, Total | $ 26,696 | $ 27,269 |
Note 8 - Balance Sheet Detail_3
Note 8 - Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Raw material | $ 407,750 | $ 375,516 |
Work-in-process | 4,086 | 6,833 |
Finished goods | 232,740 | 220,968 |
Total | $ 644,576 | $ 603,317 |
Note 8 - Balance Sheet Detail_4
Note 8 - Balance Sheet Details - Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property and equipment, gross | $ 553,162 | $ 544,620 |
Accumulated depreciation | (207,599) | (200,684) |
Total | 345,563 | 343,936 |
Land and Land Improvements [Member] | ||
Property and equipment, gross | 18,062 | 18,363 |
Building and Building Improvements [Member] | ||
Property and equipment, gross | 201,635 | 198,908 |
Machinery and Equipment [Member] | ||
Property and equipment, gross | 151,850 | 153,696 |
Dies and Tools [Member] | ||
Property and equipment, gross | 24,802 | 24,190 |
Vehicles [Member] | ||
Property and equipment, gross | 6,371 | 6,037 |
Office Equipment [Member] | ||
Property and equipment, gross | 110,780 | 107,923 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 4,652 | 5,276 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 35,010 | $ 30,227 |
Note 9 - Product Warranty Obl_3
Note 9 - Product Warranty Obligations (Details Textual) | 3 Months Ended |
Mar. 31, 2021 | |
Minimum [Member] | |
Extended Warranty Term (Year) | 5 years |
Maximum [Member] | |
Extended Warranty Term (Year) | 10 years |
Note 9 - Product Warranty Obl_4
Note 9 - Product Warranty Obligations - Reconciliation of Product Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Balance at beginning of period | $ 59,218 | $ 49,316 |
Payments | (9,779) | (7,588) |
Provision for warranty issued | 14,830 | 8,286 |
Changes in estimates for pre-existing warranties | 1,028 | (991) |
Balance at end of period | 65,297 | 49,023 |
Balance at beginning of period | 89,788 | 78,738 |
Deferred revenue contracts issued | 8,031 | 5,939 |
Amortization of deferred revenue contracts | (4,637) | (3,797) |
Balance at end of period | $ 93,182 | $ 80,880 |
Note 9 - Product Warranty Obl_5
Note 9 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Revenue performance obligation | $ 93,182 |
Note 9 - Product Warranty Obl_6
Note 9 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties 2 (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Revenue performance obligation | $ 93,182 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue performance obligation | 13,707 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue performance obligation | 19,781 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue performance obligation | 18,092 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue performance obligation | 13,373 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue performance obligation | 9,570 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue performance obligation | $ 18,659 |
Note 9 - Product Warranty Obl_7
Note 9 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties (Details) (Parentheticals) | Mar. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue performance period (Year) | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue performance period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue performance period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue performance period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue performance period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue performance period (Year) | 1 year |
Note 9 - Product Warranty Obl_8
Note 9 - Product Warranty Obligations - Deferred Product Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Current portion - other accrued liabilities | $ 40,632 | $ 37,417 | ||
Long-term portion - other long-term liabilities | 24,665 | 21,801 | ||
Total | 65,297 | 59,218 | $ 49,023 | $ 49,316 |
Current portion - other accrued liabilities | 22,251 | 18,857 | ||
Long-term portion - other long-term liabilities | 70,931 | 70,931 | ||
Total | $ 93,182 | $ 89,788 | $ 80,880 | $ 78,738 |
Note 10 - Contract Balances (De
Note 10 - Contract Balances (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2021 | |
Contract with Customer, Liability, Current | $ 25,710 | $ 30,659 |
Contract with Customer, Liability, Revenue Recognized | $ 16,912 |
Note 11 - Credit Agreements (De
Note 11 - Credit Agreements (Details Textual) - USD ($) $ in Thousands | May 31, 2013 | May 31, 2015 | Mar. 31, 2021 | Dec. 31, 2020 |
Short-term Debt, Total | $ 26,534 | $ 39,282 | ||
ABL Revolving Credit Facility [Member] | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 299,609 | |||
Amended ABL Facility [Member] | ||||
Long-term Line of Credit, Total | $ 0 | |||
Base Rate [Member] | ABL Revolving Credit Facility [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | 0.125% | ||
Adjusted LIBOR Rate [Member] | ABL Revolving Credit Facility [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | 1.125% | ||
Term Loan [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | |||
Uncommitted Incremental Term Loan Facility | $ 300,000 | |||
Secured Leverage Ratio | 0.92 | |||
Term Loan [Member] | Maximum [Member] | ||||
Threshold for Secured Leverage Ratio Excess Cash Flow Payment Requirement | 3.75 | |||
Term Loan [Member] | Base Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 0.75% | ||
Term Loan [Member] | Adjusted LIBOR Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||
Term Loan [Member] | LIBOR Floor Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Note 11 - Credit Agreements - S
Note 11 - Credit Agreements - Short-term Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Short-term borrowings | $ 26,534 | $ 39,282 |
ABL Revolving Credit Facility [Member] | ||
Short-term borrowings | 0 | 0 |
Other Lines of Credit [Member] | ||
Short-term borrowings | $ 26,534 | $ 39,282 |
Note 11 - Credit Agreements - L
Note 11 - Credit Agreements - Long-term Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Term Loan | $ 830,000 | $ 830,000 |
Original issue discount and deferred financing costs | (14,803) | (15,450) |
Finance lease obligation | 27,004 | 27,371 |
Other | 3,368 | 3,990 |
Total | 845,569 | 845,911 |
Less: current portion of debt | 1,756 | 1,836 |
Less: current portion of finance lease obligation | 2,297 | 2,311 |
Total | $ 841,516 | $ 841,764 |
Note 12 - Stock Repurchase Pr_2
Note 12 - Stock Repurchase Program (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 68 Months Ended | ||
Sep. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Sep. 30, 2018 | |
Stock Repurchase Program, Authorized Amount | $ 250,000 | $ 250,000 | |||
Stock Repurchase Program, Period in Force (Month) | 24 months | ||||
Payments for Repurchase of Common Stock | $ 305,547 | ||||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ 35.21 | ||||
Treasury Stock [Member] | |||||
Shares Acquired Under Stock Repurchases Program, Shares (in shares) | 0 | 0 | 8,676,706 |
Note 13 - Earnings Per Share (D
Note 13 - Earnings Per Share (Details Textual) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 0 |
Note 13 - Earnings Per Share -
Note 13 - Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Net income attributable to Generac Holdings Inc. | $ 148,993 | $ 44,460 | |
Redeemable noncontrolling interest redemption value adjustment | 123 | (1,522) | |
Net income attributable to common shareholders | $ 149,116 | $ 42,938 | |
Weighted average shares, basic (in shares) | 62,478,734 | 62,126,481 | |
Dilutive effect of stock compensation awards (1) (in shares) | [1] | 1,620,339 | 1,157,256 |
Diluted shares (in shares) | 64,099,073 | 63,283,737 | |
Net income attributable to Generac Holdings Inc. per common share - basic: (in dollars per share) | $ 2.39 | $ 0.69 | |
Net income attributable to Generac Holdings Inc. per common share - diluted: (in dollars per share) | $ 2.33 | $ 0.68 | |
[1] | There were no awards with an anti-dilutive impact for the three months ended March 31, 2021 and 2020. |
Note 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 19.10% | 17.90% |
Note 15 - Commitments and Con_2
Note 15 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Amount Financed by Dealers | $ 72.9 | $ 55.6 |