Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 03, 2022 | |
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 | Q2 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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, $0.01 par value | |
Trading Symbol | GNRC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,830,918 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 467,140 | $ 147,339 |
Accounts receivable, less allowance for credit losses | 692,291 | 546,466 |
Inventories | 1,240,524 | 1,089,705 |
Prepaid expenses and other assets | 91,356 | 64,954 |
Total current assets | 2,491,311 | 1,848,464 |
Property and equipment, net | 446,007 | 440,852 |
Customer lists, net | 217,152 | 238,722 |
Patents and technology, net | 469,384 | 492,473 |
Other intangible assets, net | 51,727 | 66,436 |
Tradenames, net | 233,023 | 243,531 |
Goodwill | 1,388,051 | 1,409,674 |
Deferred income taxes | 14,091 | 15,740 |
Operating lease and other assets | 162,205 | 121,888 |
Total assets | 5,472,951 | 4,877,780 |
Current liabilities: | ||
Short-term Borrowings | 77,514 | 72,035 |
Accounts payable | 614,009 | 674,208 |
Accrued wages and employee benefits | 61,249 | 72,060 |
Other accrued liabilities | 415,730 | 331,674 |
Current portion of long-term borrowings and finance lease obligations | 3,674 | 5,930 |
Total current liabilities | 1,172,176 | 1,155,907 |
Long-term borrowings and finance lease obligations | 1,286,499 | 902,091 |
Deferred income taxes | 151,643 | 205,964 |
Operating lease and other long-term liabilities | 360,041 | 341,681 |
Total liabilities | 2,970,359 | 2,605,643 |
Redeemable noncontrolling interests | 82,830 | 58,050 |
Stockholders’ equity: | ||
Common stock, par value $0.01, 500,000,000 shares authorized, 72,588,588 and 72,386,017 shares issued at June 30, 2022 and December 31, 2021, respectively | 727 | 725 |
Additional paid-in capital | 967,819 | 952,939 |
Treasury stock, at cost | (475,294) | (448,976) |
Excess purchase price over predecessor basis | (202,116) | (202,116) |
Retained earnings | 2,210,582 | 1,965,957 |
Accumulated other comprehensive loss | (82,839) | (54,755) |
Stockholders’ equity attributable to Generac Holdings Inc. | 2,418,879 | 2,213,774 |
Noncontrolling interests | 883 | 313 |
Total stockholders' equity | 2,419,762 | 2,214,087 |
Total liabilities and stockholders’ equity | $ 5,472,951 | $ 4,877,780 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
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) | 72,588,588 | 72,386,017 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||||
Net sales | $ 1,291,391 | $ 919,981 | $ 2,427,247 | $ 1,727,415 | |||
Costs of goods sold | 834,406 | 580,246 | 1,609,514 | 1,065,866 | |||
Gross profit | 456,985 | 339,735 | 817,733 | 661,549 | |||
Operating expenses: | |||||||
Selling and service | 120,066 | 78,777 | 218,309 | 147,201 | |||
Research and development | 41,599 | 25,344 | 81,343 | 47,732 | |||
General and administrative | 52,600 | 41,610 | 94,572 | 74,509 | |||
Amortization of intangibles | 25,876 | 11,052 | 51,930 | 20,031 | |||
Total operating expenses | 240,141 | 156,783 | 446,154 | 289,473 | |||
Income from operations | 216,844 | 182,952 | 371,579 | 372,076 | |||
Other (expense) income: | |||||||
Interest expense | (10,235) | (7,721) | (19,789) | (15,444) | |||
Investment income | 92 | 244 | 169 | 847 | |||
Loss on extinguishment of debt | 3,743 | 831 | [1] | 3,743 | [1] | 831 | [1] |
Other, net | 505 | (373) | 751 | 2,936 | |||
Total other expense, net | (13,381) | (8,681) | (22,612) | (12,492) | |||
Income before provision for income taxes | 203,463 | 174,271 | 348,967 | 359,584 | |||
Provision for income taxes | 45,826 | 46,362 | 74,434 | 81,730 | |||
Net income | 157,637 | 127,909 | 274,533 | 277,854 | |||
Net income attributable to noncontrolling interests | 1,278 | 873 | 4,316 | 1,825 | |||
Net income attributable to Generac Holdings Inc. | $ 156,359 | $ 127,036 | $ 270,217 | $ 276,029 | |||
Net income attributable to Generac Holdings Inc. per common share - basic: (in dollars per share) | $ 2.24 | $ 2.06 | $ 3.85 | $ 4.44 | |||
Weighted average common shares outstanding - basic: (in shares) | 63,662,510 | 62,605,166 | 63,607,711 | 62,533,725 | |||
Net income attributable to Generac Holdings Inc. per common share - diluted: (in dollars per share) | $ 2.21 | $ 2.01 | $ 3.78 | $ 4.34 | |||
Weighted average common shares outstanding - diluted: (in shares) | 64,713,748 | 64,088,709 | 64,799,002 | 64,097,378 | |||
Comprehensive income attributable to Generac Holdings Inc. | $ 120,864 | $ 119,246 | $ 243,229 | $ 273,062 | |||
[1]Represents the non-cash write-off of original issue discount and deferred financing costs due primarily to a voluntary prepayment of Term Loan debt. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | 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, 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 | 12,243 | 12,243 | 0 | 12,243 |
Foreign currency translation adjustment | $ 0 | 0 | 0 | 0 | 0 | (15,572) | (15,572) | (5) | (15,577) |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 228,651 | ||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 2 | 4,931 | 0 | 0 | 0 | 0 | 4,933 | 0 | 4,933 |
Net share settlement of restricted stock awards | 0 | 0 | $ (26,317) | 0 | 0 | 0 | (26,317) | 0 | (26,317) |
Net share settlement of restricted stock awards (in shares) | (78,366) | ||||||||
Share-based compensation | 0 | 12,421 | $ 0 | 0 | 0 | 0 | 12,421 | 0 | 12,421 |
Redemption value adjustment | 0 | 0 | 0 | 0 | 1,870 | 0 | 1,870 | 0 | 1,870 |
Net income attributable to Generac Holdings Inc. | $ 0 | 0 | $ 0 | 0 | 276,029 | 0 | 276,029 | 276,029 | |
Net income | 132 | ||||||||
Net income | 276,161 | ||||||||
Balance (in shares) at Jun. 30, 2021 | 72,252,980 | (9,252,097) | |||||||
Balance at Jun. 30, 2021 | $ 723 | 542,893 | $ (358,481) | (202,116) | 1,710,464 | (37,583) | 1,655,900 | 38 | 1,655,938 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Total | $ 0 | 0 | $ 0 | 0 | 0 | 12,243 | 12,243 | 0 | 12,243 |
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 |
Unrealized gain (loss) on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | (2,752) | (2,752) | 0 | (2,752) |
Foreign currency translation adjustment | $ 0 | 0 | 0 | 0 | 0 | (3,332) | (3,332) | (2) | (3,334) |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 47,234 | ||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 0 | 1,617 | 0 | 0 | 0 | 0 | 1,617 | 0 | 1,617 |
Net share settlement of restricted stock awards | 0 | 0 | $ (119) | 0 | 0 | 0 | (119) | 0 | (119) |
Net share settlement of restricted stock awards (in shares) | (279) | ||||||||
Share-based compensation | 0 | 6,973 | $ 0 | 0 | 0 | 0 | 6,973 | 0 | 6,973 |
Redemption value adjustment | 0 | 0 | 0 | 0 | 1,747 | 0 | 1,747 | 0 | 1,747 |
Net income attributable to Generac Holdings Inc. | $ 0 | 0 | $ 0 | 0 | 127,036 | 0 | 127,036 | 127,036 | |
Net income | 201 | ||||||||
Net income | 127,237 | ||||||||
Balance (in shares) at Jun. 30, 2021 | 72,252,980 | (9,252,097) | |||||||
Balance at Jun. 30, 2021 | $ 723 | 542,893 | $ (358,481) | (202,116) | 1,710,464 | (37,583) | 1,655,900 | 38 | 1,655,938 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Total | $ 0 | 0 | $ 0 | 0 | 0 | (2,752) | (2,752) | 0 | (2,752) |
Balance (in shares) at Dec. 31, 2021 | 72,386,017 | (8,667,031) | |||||||
Balance at Dec. 31, 2021 | $ 725 | 952,939 | $ (448,976) | (202,116) | 1,965,957 | (54,755) | 2,213,774 | 313 | 2,214,087 |
Unrealized gain (loss) on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | 25,857 | 25,857 | 0 | 25,857 |
Foreign currency translation adjustment | $ 0 | 0 | 0 | 0 | 0 | (53,941) | (53,941) | (74) | (54,015) |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 202,571 | ||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 2 | (1,682) | 0 | 0 | 0 | 0 | (1,680) | 0 | (1,680) |
Net share settlement of restricted stock awards | 0 | 0 | $ (26,318) | 0 | 0 | 0 | (26,318) | 0 | (26,318) |
Net share settlement of restricted stock awards (in shares) | (88,420) | ||||||||
Share-based compensation | 0 | 16,562 | $ 0 | 0 | 0 | 0 | 16,562 | 0 | 16,562 |
Redemption value adjustment | 0 | 0 | 0 | 0 | (25,592) | 0 | (25,592) | 0 | (25,592) |
Net income attributable to Generac Holdings Inc. | $ 0 | 0 | $ 0 | 0 | 270,217 | 0 | 270,217 | 270,217 | |
Net income | 644 | ||||||||
Net income | 270,861 | ||||||||
Balance (in shares) at Jun. 30, 2022 | 72,588,588 | (8,755,451) | |||||||
Balance at Jun. 30, 2022 | $ 727 | 967,819 | $ (475,294) | (202,116) | 2,210,582 | (82,839) | 2,418,879 | 883 | 2,419,762 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Total | $ 0 | 0 | $ 0 | 0 | 0 | 25,857 | 25,857 | 0 | 25,857 |
Balance (in shares) at Mar. 31, 2022 | 72,589,905 | (8,740,863) | |||||||
Balance at Mar. 31, 2022 | $ 727 | 959,890 | $ (471,833) | (202,116) | 2,067,868 | (46,402) | 2,308,134 | 478 | 2,308,612 |
Unrealized gain (loss) on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | 7,129 | 7,129 | 0 | 7,129 |
Foreign currency translation adjustment | $ 0 | 0 | 0 | 0 | 0 | (43,566) | (43,566) | (256) | (43,822) |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | (1,317) | ||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 0 | 194 | 0 | 0 | 0 | 0 | 194 | 0 | 194 |
Net share settlement of restricted stock awards | 0 | 0 | $ (3,461) | 0 | 0 | 0 | (3,461) | 0 | (3,461) |
Net share settlement of restricted stock awards (in shares) | (14,588) | ||||||||
Share-based compensation | 0 | 7,735 | $ 0 | 0 | 0 | 0 | 7,735 | 0 | 7,735 |
Redemption value adjustment | 0 | 0 | 0 | 0 | (13,645) | 0 | (13,645) | 0 | (13,645) |
Net income attributable to Generac Holdings Inc. | $ 0 | 0 | $ 0 | 0 | 156,359 | 0 | 156,359 | 156,359 | |
Net income | 661 | ||||||||
Net income | 157,020 | ||||||||
Balance (in shares) at Jun. 30, 2022 | 72,588,588 | (8,755,451) | |||||||
Balance at Jun. 30, 2022 | $ 727 | 967,819 | $ (475,294) | (202,116) | 2,210,582 | (82,839) | 2,418,879 | 883 | 2,419,762 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Total | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 7,129 | $ 7,129 | $ 0 | $ 7,129 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - AOCI Attributable to Parent [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Unrealized gain (loss) on interest rate swaps, tax | $ 2,408 | $ (930) | $ 8,734 | |
Unrealized gain (loss) on interest rate swaps, tax | $ 4,136 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||||||
Operating activities | |||||||||||
Net income | $ 157,637 | $ 127,909 | $ 274,533 | $ 277,854 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | 25,629 | 19,435 | |||||||||
Amortization of intangible assets | 25,876 | 11,052 | 51,930 | 20,031 | |||||||
Amortization of original issue discount and deferred financing costs | 1,287 | 1,295 | |||||||||
Loss on extinguishment of debt | 3,743 | $ 3,743 | [1] | 831 | [1] | 3,743 | [1] | 831 | [1] | ||
Deferred income taxes | (61,625) | 7,003 | |||||||||
Share-based compensation expense | [2] | 7,735 | 6,973 | 16,562 | 12,421 | ||||||
Gain on disposal of assets | (587) | (3,978) | |||||||||
Other noncash (gains) charges | (2,037) | (142) | |||||||||
Net changes in operating assets and liabilities, net of acquisitions: | |||||||||||
Accounts receivable | (143,308) | (96,846) | |||||||||
Inventories | (158,232) | (163,820) | |||||||||
Other assets | 1,637 | (4,172) | |||||||||
Accounts payable | (54,583) | 186,041 | |||||||||
Accrued wages and employee benefits | (11,876) | 2,537 | |||||||||
Other accrued liabilities | 86,616 | 38,028 | |||||||||
Excess tax benefits from equity awards | (15,996) | (21,525) | |||||||||
Net cash provided by operating activities | 13,693 | 274,993 | |||||||||
Investing activities | |||||||||||
Proceeds from sale of property and equipment | 1,883 | 74 | |||||||||
Proceeds from sale of investment | 1,308 | 4,902 | |||||||||
Proceeds from beneficial interests in securitization transactions | 1,843 | 1,363 | |||||||||
Contribution to equity method investment | (10,229) | (216) | |||||||||
Expenditures for property and equipment | (46,503) | (54,222) | |||||||||
Acquisition of business, net of cash acquired | (11,421) | (419,017) | |||||||||
Net cash used in investing activities | (63,119) | (467,116) | |||||||||
Financing activities | |||||||||||
Proceeds from short-term borrowings | 216,681 | 57,589 | |||||||||
Proceeds from long-term borrowings | 935,000 | 50,000 | |||||||||
Repayments of short-term borrowings | (208,244) | (73,675) | |||||||||
Repayments of long-term borrowings and finance lease obligations | (538,401) | (53,095) | |||||||||
Payment of contingent acquisition consideration | 0 | (3,750) | |||||||||
Payment of debt issuance costs | (10,330) | (1,185) | |||||||||
Purchase of additional ownership interest | (375) | (27,164) | |||||||||
Taxes paid related to equity awards | (38,347) | (39,967) | |||||||||
Proceeds from exercise of stock options | 10,383 | 18,567 | |||||||||
Net cash provided by (used in) financing activities | 366,367 | (72,680) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 2,860 | (239) | |||||||||
Net increase (decrease) in cash and cash equivalents | 319,801 | (265,042) | |||||||||
Cash and cash equivalents at beginning of period | 147,339 | 655,128 | $ 655,128 | ||||||||
Cash and cash equivalents at end of period | $ 467,140 | $ 467,140 | $ 390,086 | $ 467,140 | $ 390,086 | $ 147,339 | |||||
[1]Represents the non-cash write-off of original issue discount and deferred financing costs due primarily to a voluntary prepayment of Term Loan debt.[2]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 | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021 ● In June 2021, 1975 ● In July 2021, ● In September 2021, ● In September 2021, ● In October 2021, ● In December 2021, 2007 ● In June 2022, 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 June 30, 2022 three six June 30, 2022 2021 three six June 30, 2022 2021 six June 30, 2022 2021 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, 2021 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 | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2 . Acquisitions Fiscal 2022 On June 30, 2022, Fiscal 2021 Acquisition of Deep Sea On June 1, 2021, The Company finalized its purchase price allocation during the second 2022 not not June 30, 2022. Acquisition of Chilicon On July 2, 2021, Cash paid at closing $ 11,821 Deferred cash payment (1) 6,000 Common stock issued at closing 12,000 Contingent consideration (2) 31,308 Total purchase price $ 61,129 ( 1 Payable on the third December 31, 2023. ( 2 Payable within 45 December 31, 2025. The Company finalized its purchase price allocation during the second 2022 not not June 30, 2022. Acquisition of Off Grid Energy On September 1, 2021, March 31, 2022. Q3 2022. The Company recorded its preliminary purchase price allocation during the third 2021, fourth 2021 first second 2022, not June 30, 2022. The allocation of the purchase price to identifiable assets and liabilities is based on the preliminary valuations performed to determine the fair value of the net assets as of the acquisition date. The measurement period for the valuation of net assets acquired ends as soon as information on the facts and circumstances that existed as of the acquisition date becomes available, but not 12 may Acquisition of ecobee On December 1, 2021, Cash paid at closing $ 225,458 Common stock issued at closing 420,774 Contingent consideration (1) 89,400 Total purchase price $ 735,632 ( 1 To be paid in the form of common stock issued upon achievement of certain performance targets following the end of each of two one June 30, 2022, one June 30, 2023. The Company recorded its preliminary purchase price allocation during the fourth 2021, first second 2022, June 30, 2022. The allocation of the purchase price to identifiable assets and liabilities is based on the preliminary valuations performed to determine the fair value of the net assets as of the acquisition date. The measurement period for the valuation of net assets acquired ends as soon as information on the facts and circumstances that existed as of the acquisition date becomes available, but not 12 may Other Acquisitions On September 1, 2021, On October 1, 2021, The combined purchase price for these two third fourth 2021, first second 2022, two June 30, 2022. The allocation of the purchase price to identifiable assets and liabilities is based on the preliminary valuations performed to determine the fair value of the net assets as of the acquisition date. The measurement period for the valuation of net assets acquired ends as soon as information on the facts and circumstances that existed as of the acquisition date becomes available, but not 12 may Pro forma financial information is 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 2021 Deep Sea ecobee All Other Total Accounts receivable $ 9,574 $ 23,337 $ 13,852 $ 46,763 Inventories 9,970 7,258 7,034 24,262 Prepaid expenses and other assets 1,181 5,689 6,594 13,464 Property and equipment 8,838 3,588 480 12,906 Intangible assets 174,270 555,400 81,171 810,841 Goodwill 263,604 243,346 80,871 587,821 Deferred income taxes - 46,721 6,547 53,268 Other assets 151 11,722 8,526 20,399 Total assets acquired 467,588 897,061 205,075 1,569,724 Accounts payable 8,998 25,968 7,473 42,439 Accrued wages and employee benefits 2,106 1,354 872 4,332 Other accrued liabilities 1,737 19,898 18,258 39,893 Short-term borrowings - - 800 800 Current portion of long-term debt - - 233 233 Deferred income taxes 33,957 80,447 19,930 134,334 Other long-term liabilities 90 33,762 7,862 41,714 Long-term borrowings and finance lease obligations - - 1,624 1,624 Net assets acquired $ 420,700 $ 735,632 $ 148,023 $ 1,304,355 |
Note 3 - Redeemable Noncontroll
Note 3 - Redeemable Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Redeemable Noncontrolling Interest [Text Block] | 3. On March 1, 2016, February 2019, five five no April 1, 2021. May 2021, 3 On February 1, 2019, five may five March 2022, May 2022, 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance at beginning of period $ 71,511 $ 63,254 $ 58,050 $ 66,207 Net income 816 672 3,672 1,693 Foreign currency translation (3,228 ) 2,230 (4,109 ) (1,621 ) Purchase of additional ownership interest 86 (27,164 ) (375 ) (27,164 ) Redemption value adjustment 13,645 (1,747 ) 25,592 (1,870 ) Balance at end of period $ 82,830 $ 37,245 $ 82,830 $ 37,245 |
Note 4 - Derivative Instruments
Note 4 - Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2022 | |
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 eight June 30, 2022 December 2019, March 2020, three June 30, 2022 In June 2022, 11, The amount of gains, net of tax, recognized for the three six June 30, 2022 three six June 30, 2021 Fair Value The following table presents the fair value of all of the Company’s derivatives: June 30, 2022 December 31, 2021 Commodity contracts $ (157 ) $ - Foreign currency contracts 130 (36 ) Interest rate swaps 32,517 (2,074 ) The fair value of the commodity contracts is included in other accrued liabilities, and the fair value of the foreign currency contracts and interest rate swaps is included in other assets in the condensed consolidated balance sheets as of June 30, 2022 December 31, 2021. June 30, 2022 December 31, 2021 |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
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, revolving facility 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 $1,268,716, was approximately $1,279,338 (Level 2 June 30, 2022 For the fair value of the derivatives measured on a recurring basis, refer to the fair value table in Note 4, 2. 820 10. Contingent Consideration Certain of the Company's business combinations involve potential payment of future consideration that is contingent upon the achievement of certain milestones or performance targets. As part of purchase accounting, a liability is recorded for the estimated fair value of the contingent consideration on the acquisition date. The fair value of the contingent consideration is remeasured at each reporting period, and the change in fair value is recognized within general and administrative expenses in the Company's condensed consolidated statements of comprehensive income. This fair value measurement of contingent consideration is categorized as a Level 3 not The June 30, 2022 December 31, 2021, The following table provides a reconciliation of the activity for contingent consideration: Beginning balance, January 1, 2022 $ 146,759 Changes in fair value (2,641 ) Present value interest accretion 1,383 Currency translation (2,405 ) Ending balance, June 30, 2022 $ 143,096 |
Note 6 - Accumulated Other Comp
Note 6 - Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2022 | |
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 six June 30, 2022 2021 Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – April 1, 2022 $ (63,079 ) $ 16,677 $ (46,402 ) Other comprehensive income (loss) before reclassifications (43,566 ) (1) 7,129 (2) (36,437 ) Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (43,566 ) 7,129 (36,437 ) Ending Balance – June 30, 2022 $ (106,645 ) $ 23,806 $ (82,839 ) Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – April 1, 2021 $ (23,914 ) $ (7,585 ) $ (31,499 ) Other comprehensive income (loss) before reclassifications (3,332 ) (2,752 ) (3) (6,084 ) Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (3,332 ) (2,752 ) (6,084 ) Ending Balance – June 30, 2021 $ (27,246 ) $ (10,337 ) $ (37,583 ) Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2022 $ (52,704 ) $ (2,051 ) $ (54,755 ) Other comprehensive income (loss) before reclassifications (53,941 ) (4) 25,857 (5) (28,084 ) Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (53,941 ) 25,857 (28,084 ) Ending Balance – June 30, 2022 $ (106,645 ) $ 23,806 $ (82,839 ) 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 (15,572 ) (6) 12,243 (7) (3,329 ) Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (15,572 ) 12,243 (3,329 ) Ending Balance – June 30, 2021 $ (27,246 ) $ (10,337 ) $ (37,583 ) ( 1 Represents unfavorable impact from the strengthening of the U.S. dollar against foreign currencies during the three June 30, 2022 ( 2 Represents unrealized gains of $9,537 on the interest rate swaps, net of tax effect of $(2,408) for the three June 30, 2022 ( 3 Represents unrealized losses of $(3,682) on the interest rate swaps, net of tax effect of $930 for the three June 30, 2021 ( 4 Represents unfavorable impact from the strengthening of the U.S. dollar against foreign currencies during the six June 30, 2022 ( 5 Represents unrealized gains of $34,591 on the interest rate swaps, net of tax effect of $(8,734) for the six June 30, 2022 ( 6 Represents unfavorable impact from the strengthening of the U.S. dollar against foreign currencies during the six June 30, 2021 ( 7 Represents unrealized gains of $16,379 on the interest rate swaps, net of tax effect of $(4,136) for the six June 30, 2021 |
Note 7 - Segment Reporting
Note 7 - Segment Reporting | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7 . Segment Reporting The Company has two reportable segments for financial reporting purposes – Domestic and International. The Domestic segment includes the legacy Generac business (excluding its traditional Latin American export operations), and the acquisitions that are based in the U.S. and Canada, all of which have revenues substantially derived from the U.S. and Canada. The International segment includes the legacy Generac business’ Latin American export operations, and the Ottomotores, Tower Light, Pramac, Motortech, Selmec, Deep Sea, and Off Grid Energy acquisitions, all of which have revenues substantially derived from outside the U.S. and Canada. Both reportable segments design and manufacture a wide range of energy technology solutions and other power products. The Company has multiple operating segments, which it aggregates into the two The Company's product offerings consist primarily of power generation equipment, energy storage systems, grid service devices & solutions, 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 and services by reportable segment is as follows: Net Sales by Segment Three Months Ended June 30, 2022 Product Classes Domestic International Total Residential products $ 860,014 $ 35,999 $ 896,013 Commercial & industrial products 173,549 135,799 309,348 Other 73,868 12,162 86,030 Total net sales $ 1,107,431 $ 183,960 $ 1,291,391 Net Sales by Segment Three Months Ended June 30, 2021 Product Classes Domestic International Total Residential products $ 583,341 $ 16,650 $ 599,991 Commercial & industrial products 143,654 110,641 254,295 Other 57,151 8,544 65,695 Total net sales $ 784,146 $ 135,835 $ 919,981 Net Sales by Segment Six Months Ended June 30, 2022 Product Classes Domestic International Total Residential products $ 1,610,341 $ 62,616 $ 1,672,957 Commercial & industrial products 319,286 268,791 588,077 Other 142,478 23,735 166,213 Total net sales $ 2,072,105 $ 355,142 $ 2,427,247 Net Sales by Segment Six Months Ended June 30, 2021 Product Classes Domestic International Total Residential products $ 1,105,556 $ 36,584 $ 1,142,140 Commercial & industrial products 261,533 195,153 456,686 Other 109,795 18,794 128,589 Total net sales $ 1,476,884 $ 250,531 $ 1,727,415 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 up to 3,250kW. Other consists primarily of aftermarket service parts and product accessories sold to our customers, the amortization of extended warranty deferred revenue, remote monitoring and grid services subscription revenue, as well as certain 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. The following table sets forth total sales by reportable segment and inclusive of intersegment sales: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Domestic International Eliminations Total Domestic International Eliminations Total External net sales $ 1,107,431 $ 183,960 $ - $ 1,291,391 $ 784,146 $ 135,835 $ - $ 919,981 Intersegment sales 18,987 19,334 (38,321 ) - 8,798 6,549 (15,347 ) - Total sales $ 1,126,418 $ 203,294 $ (38,321 ) $ 1,291,391 $ 792,944 $ 142,384 $ (15,347 ) $ 919,981 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Domestic International Eliminations Total Domestic International Eliminations Total External net sales $ 2,072,105 $ 355,142 $ - $ 2,427,247 $ 1,476,884 $ 250,531 $ - $ 1,727,415 Intersegment sales 29,257 33,659 (62,916 ) - 15,479 8,552 (24,031 ) - Total sales $ 2,101,362 $ 388,801 $ (62,916 ) $ 2,427,247 $ 1,492,363 $ 259,083 $ (24,031 ) $ 1,727,415 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Domestic $ 241,928 $ 203,931 $ 412,349 $ 411,004 International 29,534 13,748 55,526 20,869 Total adjusted EBITDA $ 271,462 $ 217,679 $ 467,875 $ 431,873 Interest expense (10,235 ) (7,721 ) (19,789 ) (15,444 ) Depreciation and amortization (39,098 ) (21,229 ) (77,559 ) (39,466 ) Non-cash write-down and other adjustments (1) (4,607 ) (1,173 ) 3,185 2,695 Non-cash share-based compensation expense (2) (7,735 ) (6,973 ) (16,562 ) (12,421 ) Loss on extinguishment of debt (3) (3,743 ) (831 ) (3,743 ) (831 ) Transaction costs and credit facility fees (4) (1,592 ) (5,172 ) (2,581 ) (6,086 ) Business optimization and other charges (5) (1,590 ) - (2,749 ) (159 ) Other 601 (309 ) 890 (577 ) Income before provision for income taxes $ 203,463 $ 174,271 $ 348,967 $ 359,584 ( 1 Includes gains/losses on disposals of assets and sales of certain investments, unrealized mark-to-market adjustments on commodity contracts, certain foreign currency related adjustments, and certain purchase accounting and contingent consideration 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 the non-cash write-off of original issue discount and deferred financing costs due primarily to a voluntary prepayment of Term Loan debt. ( 4 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. ( 5 The current year period predominantly represents severance and other non-recurring restructuring charges related to the suspension of operations at certain of our facilities. The Company’s sales in the U.S. represented approximately 82% of total sales for the three June 30, 2022 2021. six June 30, 2022 2021, June 30, 2022 December 31, 2021 |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 8 . Balance Sheet Details Inventories consist of the following: June 30, December 31, 2022 2021 Raw material $ 766,235 $ 727,162 Work-in-process 14,034 10,756 Finished goods 460,255 351,787 Total $ 1,240,524 $ 1,089,705 Property and equipment consists of the following: June 30, December 31, 2022 2021 Land and improvements $ 26,147 $ 26,137 Buildings and improvements 235,438 244,273 Machinery and equipment 208,004 186,611 Dies and tools 33,880 31,581 Vehicles 8,572 7,621 Office equipment and systems 141,736 125,048 Leasehold improvements 6,264 5,679 Construction in progress 42,350 47,601 Gross property and equipment 702,391 674,551 Accumulated depreciation (256,384 ) (233,699 ) Total $ 446,007 $ 440,852 Total property and equipment included finance leases of $26,383 and $36,776 on June 30, 2022 December 31, 2021 |
Note 9 - Product Warranty Oblig
Note 9 - Product Warranty Obligations | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance at beginning of period $ 101,491 $ 65,297 $ 94,213 $ 59,218 Payments (18,434 ) (9,282 ) (31,458 ) (19,061 ) Provision for warranty issued 21,668 17,164 43,093 31,994 Changes in estimates for pre-existing warranties 5,613 1,579 4,490 2,607 Balance at end of period $ 110,338 $ 74,758 $ 110,338 $ 74,758 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance at beginning of period $ 115,923 $ 93,182 $ 111,647 $ 89,788 Deferred revenue contracts issued 11,332 12,168 20,878 20,199 Amortization of deferred revenue contracts (5,357 ) (4,866 ) (10,627 ) (9,503 ) Balance at end of period $ 121,898 $ 100,484 $ 121,898 $ 100,484 The timing of recognition of the Company’s deferred revenue balance related to extended warranties as of June 30, 2022 Remainder of 2022 $ 10,929 2023 23,300 2024 22,741 2025 19,314 2026 15,263 After 2026 30,351 Total $ 121,898 Standard product warranty obligations and extended warranty related deferred revenues are included in the condensed consolidated balance sheets as follows: June 30, December 31, 2022 2021 Product warranty liability Current portion - other accrued liabilities $ 68,405 $ 59,052 Long-term portion - other long-term liabilities 41,933 35,161 Total $ 110,338 $ 94,213 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 22,503 $ 20,556 Long-term portion - other long-term liabilities 99,395 91,091 Total $ 121,898 $ 111,647 |
Note 10 - Contract Balances
Note 10 - Contract Balances | 6 Months Ended |
Jun. 30, 2022 | |
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 $28,933 and $27,388 on June 30, 2022 December 31, 2021 six June 30, 2022 December 31, 2021 one |
Note 11 - Credit Agreements
Note 11 - Credit Agreements | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 11 . Credit Agreements Short-term borrowings are included in the condensed consolidated balance sheets as follows: June 30, December 31, 2022 2021 ABL Facility $ - $ - Other lines of credit 77,514 72,035 Total $ 77,514 $ 72,035 As of June 30, 2022 December 31, 2021 Long-term borrowings are included in the condensed consolidated balance sheets as follows: June 30, December 31, 2022 2021 Tranche A Term Loan $ 750,000 $ - Tranche B Term Loan 530,000 780,000 Original issue discount and deferred financing costs (18,515 ) (13,215 ) ABL Facility - 100,000 Revolver - - Finance lease obligation 27,600 39,175 Other 1,088 2,060 Total 1,290,173 908,020 Less: current portion of debt 808 1,721 Less: current portion of finance lease obligation 2,866 4,208 Total $ 1,286,499 $ 902,091 The Company’s credit agreements originally provided for a $1,200,000 term loan B credit facility (Tranche B Term Loan Facility) and include a $300,000 uncommitted incremental term loan on that facility. The maturity date of the Tranche B Term Loan Facility is currently December 13, 2026. There are no The Tranche B Term Loan Facility does not 1.00 June 30, 2022 1.00 no The Company’s credit agreements also provided for a $500,000 senior secured ABL revolving credit facility (ABL Facility). ABL Facility borrowings initially bore interest at rates based upon either a base rate plus an applicable margin of 1.00% or adjusted LIBOR rate plus an applicable margin of 2.00%, in each case, subject to adjustments based upon average availability under the ABL Facility. In May 2021, June 12, 2023 May 27, 2026 ( second 2021. In May 2021, second 2021 In June 2022, June 29, 2027. second 2022 The Tranche A Term Loan Facility is repayable in quarterly installments of 0.0% of the original principal amount for each of the fiscal quarters ending June 30, 2022 June 30, 2023, September 30, 2023 June 30, 2024, September 30, 2024 June 30, 2025, September 30, 2025 June 30, 2026, September 30, 2026 March 31, 2027, The Tranche A Term Loan Facility and the Revolving Facility initially bear interest at a rate based upon adjusted SOFR plus an applicable margin of 1.5% through December 31, 2022, January 1, 2023, The Tranche A Term Loan Facility and the Revolving Facility added certain financial covenants that require the Company to maintain a total leverage below 3.75 to 1.00 1.00. June 30, 2022 1.00 1.00. June 30, 2022. The Tranche B Term Loan Facility, Tranche A Term Loan Facility and Revolving Facility are guaranteed by substantially all of the Company’s wholly-owned domestic restricted subsidiaries and are secured by associated collateral agreements which pledge a first In connection with the June 2022 470 50, not, As of June 30, 2022 |
Note 12 - Stock Repurchase Prog
Note 12 - Stock Repurchase Program | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | 12 . Stock Repurchase Program In September 2020, October 27, 2020, may may may may three six June 30, 2022 2021. August 2015), |
Note 13 - Earnings Per Share
Note 13 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
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 as well as the satisfaction of certain contingent consideration conditions as of the end of the period. 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator Net income attributable to Generac Holdings Inc. $ 156,359 $ 127,036 $ 270,217 $ 276,029 Redeemable noncontrolling interest redemption value adjustment (13,645 ) 1,747 (25,592 ) 1,870 Net income attributable to common shareholders $ 142,714 $ 128,783 $ 244,625 $ 277,899 Denominator Weighted average shares, basic 63,662,510 62,605,166 63,607,711 62,533,725 Dilutive effect of stock compensation awards (1) 1,040,295 1,483,543 1,180,348 1,563,653 Dilutive effect of contingently issued shares 10,943 - 10,943 - Diluted shares 64,713,748 64,088,709 64,799,002 64,097,378 Net income attributable to common shareholders per share Basic $ 2.24 $ 2.06 $ 3.85 $ 4.44 Diluted $ 2.21 $ 2.01 $ 3.78 $ 4.34 ( 1 33,000 three six June 30, 2022, three six June 30, 2021. |
Note 14 - Income Taxes
Note 14 - Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 14 . Income Taxes The effective income tax rates for the six June 30, 2022 2021 second six June 30, 2021 |
Note 15 - Commitments and Conti
Note 15 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 December 31, 2021 From time to time, the Company is involved in legal proceedings primarily involving product liability, regulatory, and employment matters, as well as general commercial disputes arising in the ordinary course of our business. As of June 30, 2022, no |
Note 16 - Subsequent Events
Note 16 - Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 16. Subsequent to June 30, 2022, July 29, 2022, August 5, 2022, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Consideration Transferred for Business Acquisitions [Table Text Block] | Cash paid at closing $ 11,821 Deferred cash payment (1) 6,000 Common stock issued at closing 12,000 Contingent consideration (2) 31,308 Total purchase price $ 61,129 Cash paid at closing $ 225,458 Common stock issued at closing 420,774 Contingent consideration (1) 89,400 Total purchase price $ 735,632 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Deep Sea ecobee All Other Total Accounts receivable $ 9,574 $ 23,337 $ 13,852 $ 46,763 Inventories 9,970 7,258 7,034 24,262 Prepaid expenses and other assets 1,181 5,689 6,594 13,464 Property and equipment 8,838 3,588 480 12,906 Intangible assets 174,270 555,400 81,171 810,841 Goodwill 263,604 243,346 80,871 587,821 Deferred income taxes - 46,721 6,547 53,268 Other assets 151 11,722 8,526 20,399 Total assets acquired 467,588 897,061 205,075 1,569,724 Accounts payable 8,998 25,968 7,473 42,439 Accrued wages and employee benefits 2,106 1,354 872 4,332 Other accrued liabilities 1,737 19,898 18,258 39,893 Short-term borrowings - - 800 800 Current portion of long-term debt - - 233 233 Deferred income taxes 33,957 80,447 19,930 134,334 Other long-term liabilities 90 33,762 7,862 41,714 Long-term borrowings and finance lease obligations - - 1,624 1,624 Net assets acquired $ 420,700 $ 735,632 $ 148,023 $ 1,304,355 |
Note 3 - Redeemable Noncontro_2
Note 3 - Redeemable Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Redeemable Noncontrolling Interest [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance at beginning of period $ 71,511 $ 63,254 $ 58,050 $ 66,207 Net income 816 672 3,672 1,693 Foreign currency translation (3,228 ) 2,230 (4,109 ) (1,621 ) Purchase of additional ownership interest 86 (27,164 ) (375 ) (27,164 ) Redemption value adjustment 13,645 (1,747 ) 25,592 (1,870 ) Balance at end of period $ 82,830 $ 37,245 $ 82,830 $ 37,245 |
Note 4 - Derivative Instrumen_2
Note 4 - Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule Of Derivative Assets (Liabilities) at Fair Value [Table Text Block] | June 30, 2022 December 31, 2021 Commodity contracts $ (157 ) $ - Foreign currency contracts 130 (36 ) Interest rate swaps 32,517 (2,074 ) |
Note 5 - Fair Value Measureme_2
Note 5 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | Beginning balance, January 1, 2022 $ 146,759 Changes in fair value (2,641 ) Present value interest accretion 1,383 Currency translation (2,405 ) Ending balance, June 30, 2022 $ 143,096 |
Note 6 - Accumulated Other Co_2
Note 6 - Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 – April 1, 2022 $ (63,079 ) $ 16,677 $ (46,402 ) Other comprehensive income (loss) before reclassifications (43,566 ) (1) 7,129 (2) (36,437 ) Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (43,566 ) 7,129 (36,437 ) Ending Balance – June 30, 2022 $ (106,645 ) $ 23,806 $ (82,839 ) Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – April 1, 2021 $ (23,914 ) $ (7,585 ) $ (31,499 ) Other comprehensive income (loss) before reclassifications (3,332 ) (2,752 ) (3) (6,084 ) Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (3,332 ) (2,752 ) (6,084 ) Ending Balance – June 30, 2021 $ (27,246 ) $ (10,337 ) $ (37,583 ) Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2022 $ (52,704 ) $ (2,051 ) $ (54,755 ) Other comprehensive income (loss) before reclassifications (53,941 ) (4) 25,857 (5) (28,084 ) Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (53,941 ) 25,857 (28,084 ) Ending Balance – June 30, 2022 $ (106,645 ) $ 23,806 $ (82,839 ) 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 (15,572 ) (6) 12,243 (7) (3,329 ) Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (15,572 ) 12,243 (3,329 ) Ending Balance – June 30, 2021 $ (27,246 ) $ (10,337 ) $ (37,583 ) |
Note 7 - Segment Reporting (Tab
Note 7 - Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Net Sales by Segment Three Months Ended June 30, 2022 Product Classes Domestic International Total Residential products $ 860,014 $ 35,999 $ 896,013 Commercial & industrial products 173,549 135,799 309,348 Other 73,868 12,162 86,030 Total net sales $ 1,107,431 $ 183,960 $ 1,291,391 Net Sales by Segment Three Months Ended June 30, 2021 Product Classes Domestic International Total Residential products $ 583,341 $ 16,650 $ 599,991 Commercial & industrial products 143,654 110,641 254,295 Other 57,151 8,544 65,695 Total net sales $ 784,146 $ 135,835 $ 919,981 Net Sales by Segment Six Months Ended June 30, 2022 Product Classes Domestic International Total Residential products $ 1,610,341 $ 62,616 $ 1,672,957 Commercial & industrial products 319,286 268,791 588,077 Other 142,478 23,735 166,213 Total net sales $ 2,072,105 $ 355,142 $ 2,427,247 Net Sales by Segment Six Months Ended June 30, 2021 Product Classes Domestic International Total Residential products $ 1,105,556 $ 36,584 $ 1,142,140 Commercial & industrial products 261,533 195,153 456,686 Other 109,795 18,794 128,589 Total net sales $ 1,476,884 $ 250,531 $ 1,727,415 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Domestic International Eliminations Total Domestic International Eliminations Total External net sales $ 1,107,431 $ 183,960 $ - $ 1,291,391 $ 784,146 $ 135,835 $ - $ 919,981 Intersegment sales 18,987 19,334 (38,321 ) - 8,798 6,549 (15,347 ) - Total sales $ 1,126,418 $ 203,294 $ (38,321 ) $ 1,291,391 $ 792,944 $ 142,384 $ (15,347 ) $ 919,981 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Domestic International Eliminations Total Domestic International Eliminations Total External net sales $ 2,072,105 $ 355,142 $ - $ 2,427,247 $ 1,476,884 $ 250,531 $ - $ 1,727,415 Intersegment sales 29,257 33,659 (62,916 ) - 15,479 8,552 (24,031 ) - Total sales $ 2,101,362 $ 388,801 $ (62,916 ) $ 2,427,247 $ 1,492,363 $ 259,083 $ (24,031 ) $ 1,727,415 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Domestic $ 241,928 $ 203,931 $ 412,349 $ 411,004 International 29,534 13,748 55,526 20,869 Total adjusted EBITDA $ 271,462 $ 217,679 $ 467,875 $ 431,873 Interest expense (10,235 ) (7,721 ) (19,789 ) (15,444 ) Depreciation and amortization (39,098 ) (21,229 ) (77,559 ) (39,466 ) Non-cash write-down and other adjustments (1) (4,607 ) (1,173 ) 3,185 2,695 Non-cash share-based compensation expense (2) (7,735 ) (6,973 ) (16,562 ) (12,421 ) Loss on extinguishment of debt (3) (3,743 ) (831 ) (3,743 ) (831 ) Transaction costs and credit facility fees (4) (1,592 ) (5,172 ) (2,581 ) (6,086 ) Business optimization and other charges (5) (1,590 ) - (2,749 ) (159 ) Other 601 (309 ) 890 (577 ) Income before provision for income taxes $ 203,463 $ 174,271 $ 348,967 $ 359,584 |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, December 31, 2022 2021 Raw material $ 766,235 $ 727,162 Work-in-process 14,034 10,756 Finished goods 460,255 351,787 Total $ 1,240,524 $ 1,089,705 |
Property, Plant and Equipment [Table Text Block] | June 30, December 31, 2022 2021 Land and improvements $ 26,147 $ 26,137 Buildings and improvements 235,438 244,273 Machinery and equipment 208,004 186,611 Dies and tools 33,880 31,581 Vehicles 8,572 7,621 Office equipment and systems 141,736 125,048 Leasehold improvements 6,264 5,679 Construction in progress 42,350 47,601 Gross property and equipment 702,391 674,551 Accumulated depreciation (256,384 ) (233,699 ) Total $ 446,007 $ 440,852 |
Note 9 - Product Warranty Obl_2
Note 9 - Product Warranty Obligations (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance at beginning of period $ 101,491 $ 65,297 $ 94,213 $ 59,218 Payments (18,434 ) (9,282 ) (31,458 ) (19,061 ) Provision for warranty issued 21,668 17,164 43,093 31,994 Changes in estimates for pre-existing warranties 5,613 1,579 4,490 2,607 Balance at end of period $ 110,338 $ 74,758 $ 110,338 $ 74,758 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance at beginning of period $ 115,923 $ 93,182 $ 111,647 $ 89,788 Deferred revenue contracts issued 11,332 12,168 20,878 20,199 Amortization of deferred revenue contracts (5,357 ) (4,866 ) (10,627 ) (9,503 ) Balance at end of period $ 121,898 $ 100,484 $ 121,898 $ 100,484 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Remainder of 2022 $ 10,929 2023 23,300 2024 22,741 2025 19,314 2026 15,263 After 2026 30,351 Total $ 121,898 |
Product Warranty Obligations Included In Consolidated Balance Sheet [Table Text Block] | June 30, December 31, 2022 2021 Product warranty liability Current portion - other accrued liabilities $ 68,405 $ 59,052 Long-term portion - other long-term liabilities 41,933 35,161 Total $ 110,338 $ 94,213 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 22,503 $ 20,556 Long-term portion - other long-term liabilities 99,395 91,091 Total $ 121,898 $ 111,647 |
Note 11 - Credit Agreements (Ta
Note 11 - Credit Agreements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Short-Term Debt [Table Text Block] | June 30, December 31, 2022 2021 ABL Facility $ - $ - Other lines of credit 77,514 72,035 Total $ 77,514 $ 72,035 |
Schedule of Long-Term Debt Instruments [Table Text Block] | June 30, December 31, 2022 2021 Tranche A Term Loan $ 750,000 $ - Tranche B Term Loan 530,000 780,000 Original issue discount and deferred financing costs (18,515 ) (13,215 ) ABL Facility - 100,000 Revolver - - Finance lease obligation 27,600 39,175 Other 1,088 2,060 Total 1,290,173 908,020 Less: current portion of debt 808 1,721 Less: current portion of finance lease obligation 2,866 4,208 Total $ 1,286,499 $ 902,091 |
Note 13 - Earnings Per Share (T
Note 13 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator Net income attributable to Generac Holdings Inc. $ 156,359 $ 127,036 $ 270,217 $ 276,029 Redeemable noncontrolling interest redemption value adjustment (13,645 ) 1,747 (25,592 ) 1,870 Net income attributable to common shareholders $ 142,714 $ 128,783 $ 244,625 $ 277,899 Denominator Weighted average shares, basic 63,662,510 62,605,166 63,607,711 62,533,725 Dilutive effect of stock compensation awards (1) 1,040,295 1,483,543 1,180,348 1,563,653 Dilutive effect of contingently issued shares 10,943 - 10,943 - Diluted shares 64,713,748 64,088,709 64,799,002 64,097,378 Net income attributable to common shareholders per share Basic $ 2.24 $ 2.06 $ 3.85 $ 4.44 Diluted $ 2.21 $ 2.01 $ 3.78 $ 4.34 |
Note 2 - Acquisitions (Details
Note 2 - Acquisitions (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Dec. 01, 2021 | Sep. 01, 2021 | Jul. 02, 2021 | Jun. 01, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 11,421 | $ 419,017 | |||||
Goodwill, Ending Balance | 1,388,051 | $ 1,409,674 | |||||
Acquisition of Deep Sea [Member] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 420,700 | ||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 437,874 | ||||||
Goodwill, Ending Balance | 263,604 | 263,604 | |||||
Acquisition of Chilicon [Member] | |||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 70,174 | ||||||
Goodwill, Ending Balance | 36,974 | ||||||
Business Combination, Consideration Transferred, Total | $ 61,129 | ||||||
Acquisition of Off Grid Energy [Member] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 56,949 | ||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 56,076 | ||||||
Goodwill, Ending Balance | 21,531 | ||||||
Business Combination, Contingent Consideration, Liability, Total | $ 29,054 | ||||||
Other 2021 Acquisitions [Member] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 735,632 | $ 29,945 | |||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 798,746 | ||||||
Goodwill, Ending Balance | $ 243,346 |
Note 2 - Acquisitions - The Com
Note 2 - Acquisitions - The Combined Fair Value of the Consideration Transferred for These Acquisitions (Details) - USD ($) $ in Thousands | Dec. 01, 2021 | Jul. 02, 2021 | |
Acquisition of Chilicon [Member] | |||
Cash paid at closing | $ 11,821 | ||
Deferred cash payment (1) | [1] | 6,000 | |
Common stock issued at closing | 12,000 | ||
Contingent consideration (2) | [2] | 31,308 | |
Total purchase price | $ 61,129 | ||
ecobee Inc. [Member] | |||
Cash paid at closing | $ 225,458 | ||
Common stock issued at closing | 420,774 | ||
Contingent consideration (2) | [3] | 89,400 | |
Total purchase price | $ 735,632 | ||
[1]Payable on the third business day after December 31, 2023.[2]Payable within 45 calendar days following the conclusion of the earnout period, December 31, 2025. To be paid in the form of common stock issued upon achievement of certain performance targets at the end of the earnout period.[3]To be paid in the form of common stock issued upon achievement of certain performance targets following the end of each of two earnout periods, one ended June 30, 2022, and one ending June 30, 2023. |
Note 2 - Acquisitions - Prelimi
Note 2 - Acquisitions - Preliminary Price Allocation (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Goodwill | $ 1,388,051 | $ 1,409,674 |
Acquisition of Deep Sea [Member] | ||
Accounts receivable | 9,574 | |
Inventories | 9,970 | |
Prepaid expenses and other assets | 1,181 | |
Property and equipment | 8,838 | |
Intangible assets | 174,270 | |
Goodwill | $ 263,604 | 263,604 |
Deferred income taxes | 0 | |
Other assets | 151 | |
Total assets acquired | 467,588 | |
Accounts payable | 8,998 | |
Accrued wages and employee benefits | 2,106 | |
Other accrued liabilities | 1,737 | |
Short-term borrowings | 0 | |
Current portion of long-term debt | 0 | |
Deferred income taxes liability | 33,957 | |
Other long-term liabilities | 90 | |
Long-term borrowings and finance lease obligations | 0 | |
Net assets acquired | 420,700 | |
ecobee Inc. [Member] | ||
Accounts receivable | 23,337 | |
Inventories | 7,258 | |
Prepaid expenses and other assets | 5,689 | |
Property and equipment | 3,588 | |
Intangible assets | 555,400 | |
Goodwill | 243,346 | |
Deferred income taxes | 46,721 | |
Other assets | 11,722 | |
Total assets acquired | 897,061 | |
Accounts payable | 25,968 | |
Accrued wages and employee benefits | 1,354 | |
Other accrued liabilities | 19,898 | |
Short-term borrowings | 0 | |
Current portion of long-term debt | 0 | |
Deferred income taxes liability | 80,447 | |
Other long-term liabilities | 33,762 | |
Long-term borrowings and finance lease obligations | 0 | |
Net assets acquired | 735,632 | |
All Other 2021 Acquisitions [Member] | ||
Accounts receivable | 13,852 | |
Inventories | 7,034 | |
Prepaid expenses and other assets | 6,594 | |
Property and equipment | 480 | |
Intangible assets | 81,171 | |
Goodwill | 80,871 | |
Deferred income taxes | 6,547 | |
Other assets | 8,526 | |
Total assets acquired | 205,075 | |
Accounts payable | 7,473 | |
Accrued wages and employee benefits | 872 | |
Other accrued liabilities | 18,258 | |
Short-term borrowings | 800 | |
Current portion of long-term debt | 233 | |
Deferred income taxes liability | 19,930 | |
Other long-term liabilities | 7,862 | |
Long-term borrowings and finance lease obligations | 1,624 | |
Net assets acquired | 148,023 | |
The 2021 Acquisitions [Member] | ||
Accounts receivable | 46,763 | |
Inventories | 24,262 | |
Prepaid expenses and other assets | 13,464 | |
Property and equipment | 12,906 | |
Intangible assets | 810,841 | |
Goodwill | 587,821 | |
Deferred income taxes | 53,268 | |
Other assets | 20,399 | |
Total assets acquired | 1,569,724 | |
Accounts payable | 42,439 | |
Accrued wages and employee benefits | 4,332 | |
Other accrued liabilities | 39,893 | |
Short-term borrowings | 800 | |
Current portion of long-term debt | 233 | |
Deferred income taxes liability | 134,334 | |
Other long-term liabilities | 41,714 | |
Long-term borrowings and finance lease obligations | 1,624 | |
Net assets acquired | $ 1,304,355 |
Note 3 - Redeemable Noncontro_3
Note 3 - Redeemable Noncontrolling Interest (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||||
Feb. 01, 2019 | May 31, 2022 | Mar. 31, 2022 | May 31, 2021 | Feb. 28, 2019 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 01, 2016 | |
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 375 | $ 27,164 | ||||||
Pramac [Member] | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20% | 35% | ||||||
Captiva Energy Solutions [Member] | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49% | 34% | ||||||
Pramac [Member] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 15% | 65% | ||||||
Redeemable Noncontrolling Interest, Equity, Fair Value, Total | $ 34,253 | |||||||
Noncontrolling Interest Agreement, Extension of Term (Year) | 3 years | 5 years | ||||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 27,164 | |||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, including Subsequent Acquisition, Percentage, Total | 80% | |||||||
Captiva Energy Solutions [Member] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 51% | 15% | ||||||
Redeemable Noncontrolling Interest, Equity, Fair Value, Total | $ 3,165 | |||||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 461 | |||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, including Subsequent Acquisition, Percentage, Total | 66% | |||||||
Business Acquisition, Noncontrolling Interest, Term of Put Option (Year) | 5 years | |||||||
Business Acquisition, Term of Call Option (Year) | 5 years | |||||||
Captiva Energy Solutions [Member] | Amendment to Purchase Agreement [Member] | ||||||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 375 |
Note 3 - Redeemable Noncontro_4
Note 3 - Redeemable Noncontrolling Interest - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Redemption value adjustment | $ (13,645) | $ 1,747 | $ (25,592) | $ 1,870 |
Redeemable Noncontrolling Interest [Member] | ||||
Balance | 71,511 | 63,254 | 58,050 | 66,207 |
Net income | 816 | 672 | 3,672 | 1,693 |
Foreign currency translation | (3,228) | 2,230 | (4,109) | (1,621) |
Purchase of additional ownership interest | 86 | (27,164) | (375) | (27,164) |
Redemption value adjustment | 13,645 | (1,747) | 25,592 | (1,870) |
Balance | $ 82,830 | $ 37,245 | $ 82,830 | $ 37,245 |
Note 4 - Derivative Instrumen_3
Note 4 - Derivative Instruments and Hedging Activities (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Jun. 30, 2022 USD ($) | Mar. 31, 2022 | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2017 | Dec. 31, 2021 USD ($) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Total | $ 7,129 | $ (2,752) | $ 25,857 | $ 12,243 | ||||
Derivative Assets (Liabilities), Net Fair Value of Derivative Contracts, Excluding Impact of Credit Risk | 33,682 | 33,682 | $ (2,148) | |||||
Commodity Contract [Member] | ||||||||
Derivative, Number of Instruments Held, Total | 0 | |||||||
Interest Rate Swap [Member] | ||||||||
Number of New Contracts Entered | 3 | 11 | 20 | |||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Total | $ 7,129 | $ 2,752 | $ 25,857 | $ 12,243 |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Commodity contracts | $ (157) | $ 0 |
Foreign Exchange Contract [Member] | ||
Commodity contracts | 130 | (36) |
Interest Rate Swap [Member] | ||
Commodity contracts | $ 32,517 | $ (2,074) |
Note 5 - Fair Value Measureme_3
Note 5 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Other Accrued Liabilities [Member] | ||
Business Combination, Contingent Consideration, Liability, Total | $ 67,596 | $ 68,665 |
Other Long-term Liabilities [Member] | ||
Business Combination, Contingent Consideration, Liability, Total | 75,500 | $ 78,094 |
Fair Value, Inputs, Level 2 [Member] | ||
Debt Instrument, Fair Value Disclosure, Total | 1,279,338 | |
Term Loan [Member] | ||
Long-Term Debt, Total | $ 1,268,716 |
Note 5 - Fair Value Measureme_4
Note 5 - Fair Value Measurements - Reconciliation of Contingent Consideration (Details) - Contingent Consideration Liability [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Beginning balance, January 1, 2022 | $ 146,759 |
Changes in fair value | (2,641) |
Present value interest accretion | 1,383 |
Currency translation | (2,405) |
Ending balance, June 30, 2022 | $ 143,096 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ 9,537 | $ (3,682) | $ 34,591 | $ 16,379 |
Other Comprehensive Income (Loss) before Reclassifications, Tax, Total | $ 2,408 | $ 930 | $ 8,734 | $ 4,136 |
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 | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||||
Balance | $ 2,308,612 | $ 1,524,569 | $ 2,214,087 | $ 1,390,204 | ||||
Balance | 2,419,762 | 1,655,938 | 2,419,762 | 1,655,938 | ||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||||
Balance | (63,079) | (23,914) | (52,704) | (11,674) | ||||
Other comprehensive income (loss) before reclassifications | (43,566) | [1] | (3,332) | [2] | (53,941) | [3] | (15,572) | [4] |
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 | ||||
Net current-period other comprehensive income (loss) | (43,566) | (3,332) | (53,941) | (15,572) | ||||
Balance | (106,645) | (27,246) | (106,645) | (27,246) | ||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||||
Balance | 16,677 | (7,585) | (2,051) | (22,580) | ||||
Other comprehensive income (loss) before reclassifications | 7,129 | [5] | (2,752) | 25,857 | [6] | 12,243 | [7] | |
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 | ||||
Net current-period other comprehensive income (loss) | 7,129 | (2,752) | 25,857 | 12,243 | ||||
Balance | 23,806 | (10,337) | 23,806 | (10,337) | ||||
AOCI Attributable to Parent [Member] | ||||||||
Balance | (46,402) | (31,499) | (54,755) | (34,254) | ||||
Other comprehensive income (loss) before reclassifications | (36,437) | (6,084) | (28,084) | (3,329) | ||||
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 | ||||
Net current-period other comprehensive income (loss) | (36,437) | (6,084) | (28,084) | (3,329) | ||||
Balance | $ (82,839) | $ (37,583) | $ (82,839) | $ (37,583) | ||||
[1]Represents unfavorable impact from the strengthening of the U.S. dollar against foreign currencies during the three months ended June 30, 2022, particularly the Euro and British Pound.[2]Represents unfavorable impact from the strengthening of the U.S. dollar against foreign currencies during the three months ended March 31, 2021 particularly the Euro and Mexican Peso.[3]Represents unfavorable impact from the strengthening of the U.S. dollar against foreign currencies during the six months ended June 30, 2022, particularly the Euro and British Pound.[4]Represents unfavorable impact from the strengthening of the U.S. dollar against foreign currencies during the six months ended June 30, 2021 particularly the Euro and British Pound.[5]Represents unrealized gains of $9,537 on the interest rate swaps, net of tax effect of $(2,408) for the three months ended June 30, 2022.[6]Represents unrealized gains of $34,591 on the interest rate swaps, net of tax effect of $(8,734) for the six months ended June 30, 2022.[7]Represents unrealized gains of $16,379 on the interest rate swaps, net of tax effect of $(4,136) for the six months ended June 30, 2021. |
Note 7 - Segment Reporting (Det
Note 7 - Segment Reporting (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Number of Reportable Segments | 2 | ||||
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | UNITED STATES | |||||
Concentration Risk, Percentage | 82% | 82% | 82% | 83% | |
Geographic Concentration Risk [Member] | Net Assets, Geographic Area [Member] | UNITED STATES | |||||
Concentration Risk, Percentage | 77% | 75% |
Note 7 - Segment Reporting - Ne
Note 7 - Segment Reporting - Net Sales by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net sales | $ 1,291,391 | $ 919,981 | $ 2,427,247 | $ 1,727,415 |
Residential Power Products [Member] | ||||
Net sales | 896,013 | 599,991 | 1,672,957 | 1,142,140 |
Commercial and Industrial Power Products [Member] | ||||
Net sales | 309,348 | 254,295 | 588,077 | 456,686 |
Other Products and Services [Member] | ||||
Net sales | 86,030 | 65,695 | 166,213 | 128,589 |
Domestic [Member] | ||||
Net sales | 1,107,431 | 784,146 | 2,072,105 | 1,476,884 |
Domestic [Member] | Residential Power Products [Member] | ||||
Net sales | 860,014 | 583,341 | 1,610,341 | 1,105,556 |
Domestic [Member] | Commercial and Industrial Power Products [Member] | ||||
Net sales | 173,549 | 143,654 | 319,286 | 261,533 |
Domestic [Member] | Other Products and Services [Member] | ||||
Net sales | 73,868 | 57,151 | 142,478 | 109,795 |
International [Member] | ||||
Net sales | 183,960 | 135,835 | 355,142 | 250,531 |
International [Member] | Residential Power Products [Member] | ||||
Net sales | 35,999 | 16,650 | 62,616 | 36,584 |
International [Member] | Commercial and Industrial Power Products [Member] | ||||
Net sales | 135,799 | 110,641 | 268,791 | 195,153 |
International [Member] | Other Products and Services [Member] | ||||
Net sales | $ 12,162 | $ 8,544 | $ 23,735 | $ 18,794 |
Note 7 - Segment Reporting - To
Note 7 - Segment Reporting - Total Sales by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Total sales | $ 1,291,391 | $ 919,981 | $ 2,427,247 | $ 1,727,415 |
External Net Sales [Member] | ||||
Total sales | 1,291,391 | 919,981 | 2,427,247 | 1,727,415 |
Intersegment Sales [Member] | ||||
Total sales | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | ||||
Total sales | (38,321) | (15,347) | (62,916) | (24,031) |
Intersegment Eliminations [Member] | External Net Sales [Member] | ||||
Total sales | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Intersegment Sales [Member] | ||||
Total sales | (38,321) | (15,347) | (62,916) | (24,031) |
Domestic [Member] | ||||
Total sales | 1,107,431 | 784,146 | 2,072,105 | 1,476,884 |
Domestic [Member] | Operating Segments [Member] | ||||
Total sales | 1,126,418 | 792,944 | 2,101,362 | 1,492,363 |
Domestic [Member] | Operating Segments [Member] | External Net Sales [Member] | ||||
Total sales | 1,107,431 | 784,146 | 2,072,105 | 1,476,884 |
Domestic [Member] | Operating Segments [Member] | Intersegment Sales [Member] | ||||
Total sales | 18,987 | 8,798 | 29,257 | 15,479 |
International [Member] | ||||
Total sales | 183,960 | 135,835 | 355,142 | 250,531 |
International [Member] | Operating Segments [Member] | ||||
Total sales | 203,294 | 142,384 | 388,801 | 259,083 |
International [Member] | Operating Segments [Member] | External Net Sales [Member] | ||||
Total sales | 183,960 | 135,835 | 355,142 | 250,531 |
International [Member] | Operating Segments [Member] | Intersegment Sales [Member] | ||||
Total sales | $ 19,334 | $ 6,549 | $ 33,659 | $ 8,552 |
Note 7 - Segment Reporting - Se
Note 7 - Segment Reporting - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||||||
Total adjusted EBITDA | $ 271,462 | $ 217,679 | $ 467,875 | $ 431,873 | ||||||
Interest expense | $ (10,235) | (10,235) | (7,721) | (19,789) | (15,444) | |||||
Depreciation and amortization | (39,098) | (21,229) | (77,559) | (39,466) | ||||||
Non-cash write-down and other adjustments (1) | [1] | (4,607) | (1,173) | 3,185 | 2,695 | |||||
Non-cash share-based compensation expense (2) | [2] | (7,735) | (6,973) | (16,562) | (12,421) | |||||
Loss on extinguishment of debt | 3,743 | 3,743 | [3] | 831 | [3] | 3,743 | [3] | 831 | [3] | |
Transaction costs and credit facility fees (4) | [4] | (1,592) | (5,172) | (2,581) | (6,086) | |||||
Business optimization and other charges (5) | [5] | (1,590) | 0 | (2,749) | (159) | |||||
Other | 601 | (309) | 890 | (577) | ||||||
Income before provision for income taxes | $ 203,463 | 203,463 | 174,271 | 348,967 | 359,584 | |||||
Domestic [Member] | ||||||||||
Total adjusted EBITDA | 241,928 | 203,931 | 412,349 | 411,004 | ||||||
International [Member] | ||||||||||
Total adjusted EBITDA | $ 29,534 | $ 13,748 | $ 55,526 | $ 20,869 | ||||||
[1]Includes gains/losses on disposals of assets and sales of certain investments, unrealized mark-to-market adjustments on commodity contracts, certain foreign currency related adjustments, and certain purchase accounting and contingent consideration 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 the non-cash write-off of original issue discount and deferred financing costs due primarily to a voluntary prepayment of Term Loan debt.[4]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.[5]The current year period predominantly represents severance and other non-recurring restructuring charges related to the suspension of operations at certain of our facilities. |
Note 8 - Balance Sheet Detail_2
Note 8 - Balance Sheet Details (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization, Total | $ 26,383 | $ 36,776 |
Note 8 - Balance Sheet Detail_3
Note 8 - Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Raw material | $ 766,235 | $ 727,162 |
Work-in-process | 14,034 | 10,756 |
Finished goods | 460,255 | 351,787 |
Total | $ 1,240,524 | $ 1,089,705 |
Note 8 - Balance Sheet Detail_4
Note 8 - Balance Sheet Details - Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Property and equipment, gross | $ 702,391 | $ 674,551 |
Accumulated depreciation | (256,384) | (233,699) |
Total | 446,007 | 440,852 |
Land and Land Improvements [Member] | ||
Property and equipment, gross | 26,147 | 26,137 |
Building and Building Improvements [Member] | ||
Property and equipment, gross | 235,438 | 244,273 |
Machinery and Equipment [Member] | ||
Property and equipment, gross | 208,004 | 186,611 |
Dies and Tools [Member] | ||
Property and equipment, gross | 33,880 | 31,581 |
Vehicles [Member] | ||
Property and equipment, gross | 8,572 | 7,621 |
Office Equipment [Member] | ||
Property and equipment, gross | 141,736 | 125,048 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 6,264 | 5,679 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 42,350 | $ 47,601 |
Note 9 - Product Warranty Obl_3
Note 9 - Product Warranty Obligations (Details Textual) | 6 Months Ended |
Jun. 30, 2022 | |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Balance at beginning of period | $ 101,491 | $ 65,297 | $ 94,213 | $ 59,218 |
Payments | (18,434) | (9,282) | (31,458) | (19,061) |
Provision for warranty issued | 21,668 | 17,164 | 43,093 | 31,994 |
Changes in estimates for pre-existing warranties | 5,613 | 1,579 | 4,490 | 2,607 |
Balance at end of period | 110,338 | 74,758 | 110,338 | 74,758 |
Balance at beginning of period | 115,923 | 93,182 | 111,647 | 89,788 |
Deferred revenue contracts issued | 11,332 | 12,168 | 20,878 | 20,199 |
Amortization of deferred revenue contracts | (5,357) | (4,866) | (10,627) | (9,503) |
Balance at end of period | $ 121,898 | $ 100,484 | $ 121,898 | $ 100,484 |
Note 9 - Product Warranty Obl_5
Note 9 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Revenue performance obligation | $ 121,898 |
Note 9 - Product Warranty Obl_6
Note 9 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties 2 (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Revenue performance obligation | $ 121,898 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue performance obligation | 10,929 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue performance obligation | 23,300 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue performance obligation | 22,741 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue performance obligation | 19,314 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue performance obligation | 15,263 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue performance obligation | $ 30,351 |
Note 9 - Product Warranty Obl_7
Note 9 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties (Details) (Parentheticals) | Jun. 30, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue performance period (Year) | 9 months |
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 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue performance period (Year) | 1 year |
Note 9 - Product Warranty Obl_8
Note 9 - Product Warranty Obligations - Deferred Product Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Current portion - other accrued liabilities | $ 68,405 | $ 59,052 | ||||
Long-term portion - other long-term liabilities | 41,933 | 35,161 | ||||
Total | 110,338 | $ 101,491 | 94,213 | $ 74,758 | $ 65,297 | $ 59,218 |
Current portion - other accrued liabilities | 22,503 | 20,556 | ||||
Long-term portion - other long-term liabilities | 99,395 | 91,091 | ||||
Total | $ 121,898 | $ 115,923 | $ 111,647 | $ 100,484 | $ 93,182 | $ 89,788 |
Note 10 - Contract Balances (De
Note 10 - Contract Balances (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Contract with Customer, Liability, Total | $ 28,933 | $ 27,388 |
Contract with Customer, Liability, Revenue Recognized | $ 21,470 |
Note 11 - Credit Agreements (De
Note 11 - Credit Agreements (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 01, 2023 | May 31, 2013 USD ($) | Jun. 30, 2022 USD ($) | May 31, 2021 USD ($) | May 31, 2015 | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2027 | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | [1] | Jun. 30, 2026 | Jun. 30, 2025 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2021 USD ($) | May 01, 2021 USD ($) | ||||
Gain (Loss) on Extinguishment of Debt, Total | $ (3,743) | $ (3,743) | [1] | $ (831) | [1] | $ (3,743) | [1] | $ (831) | |||||||||||||
ABL Revolving Credit Facility [Member] | |||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | $ 500,000 | 500,000 | 500,000 | 500,000 | $ 300,000 | |||||||||||||||
Line of Credit Facility, Incremental Capacity | 200,000 | $ 100,000 | |||||||||||||||||||
Debt Issuance Costs, Net, Total | 920 | ||||||||||||||||||||
Proceeds from Long-term Lines of Credit | $ 50,000 | ||||||||||||||||||||
Write off of Deferred Debt Issuance Cost | 197 | ||||||||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,250,000 | 1,250,000 | 1,250,000 | 1,250,000 | |||||||||||||||||
Debt Issuance Costs, Net, Total | $ 10,330 | 10,330 | 10,330 | 10,330 | |||||||||||||||||
Covenant Maximum Total Leverage Ratio | 3.75 | ||||||||||||||||||||
Covenant Minimum Interest Coverage Ratio | 3 | ||||||||||||||||||||
Total Leverage Ratio | 1.18 | ||||||||||||||||||||
Interest Coverage Ratio | 25.56 | ||||||||||||||||||||
Debt Instrument, Fee Amount | $ 800 | 800 | 800 | 800 | |||||||||||||||||
Long-Term Line of Credit, Total | 0 | 0 | 0 | 0 | |||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,249,480 | $ 1,249,480 | $ 1,249,480 | $ 1,249,480 | |||||||||||||||||
Base Rate [Member] | ABL Revolving Credit Facility [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1% | ||||||||||||||||||||
Base Rate [Member] | Maximum [Member] | ABL Revolving Credit Facility [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||||||||||||||||||
Base Rate [Member] | Minimum [Member] | ABL Revolving Credit Facility [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0% | ||||||||||||||||||||
Adjusted LIBOR Rate [Member] | ABL Revolving Credit Facility [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | ||||||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ABL Revolving Credit Facility [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ABL Revolving Credit Facility [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1% | ||||||||||||||||||||
Tranche B Term Loan Facility [Member] | |||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | ||||||||||||||||||||
Uncommitted Incremental Term Loan Facility | $ 300,000 | ||||||||||||||||||||
Debt Instrument, SOFR Floor | 0% | 0% | 0% | 0% | |||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ 3,546 | $ (831) | |||||||||||||||||||
Repayments of Long-Term Debt, Total | $ 250,000 | ||||||||||||||||||||
Tranche B Term Loan Facility [Member] | Maximum [Member] | |||||||||||||||||||||
Threshold for Secured Leverage Ratio Excess Cash Flow Payment Requirement | 3.75 | ||||||||||||||||||||
Secured Leverage Ratio | 1.09 | ||||||||||||||||||||
Tranche B Term Loan Facility [Member] | Base Rate [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 0.75% | |||||||||||||||||||
Tranche B Term Loan Facility [Member] | Adjusted LIBOR Rate [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||||||||||||||
Tranche B Term Loan Facility [Member] | LIBOR Floor Rate [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||||||||||||||||
Tranche B Term Loan Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||||||||||||||
Tranche A Term Loan Facility [Member] | |||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | |||||||||||||||||
Tranche A Term Loan Facility [Member] | Forecast [Member] | |||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 10% | 7.50% | 5% | 2.50% | 0% | ||||||||||||||||
Tranche A Term Loan Facility and Revolving Credit Facility [Member] | |||||||||||||||||||||
Debt Instrument, SOFR Floor | 0% | 0% | 0% | 0% | |||||||||||||||||
Long-Term Debt, Maturity Date | Jun. 29, 2027 | Jun. 29, 2027 | Jun. 29, 2027 | Jun. 29, 2027 | |||||||||||||||||
Tranche A Term Loan Facility and Revolving Credit Facility [Member] | Forecast [Member] | |||||||||||||||||||||
Debt Instrument, SOFR Floor | 0% | ||||||||||||||||||||
Tranche A Term Loan Facility and Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||||||||||||||||||
Tranche A Term Loan Facility and Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Maximum [Member] | Forecast [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||||||||||||||
Tranche A Term Loan Facility and Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Minimum [Member] | Forecast [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||||||||||||||||
[1]Represents the non-cash write-off of original issue discount and deferred financing costs due primarily to a voluntary prepayment of Term Loan debt. |
Note 11 - Credit Agreements - S
Note 11 - Credit Agreements - Short-term Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Short-term Borrowings | $ 77,514 | $ 72,035 |
ABL Revolving Credit Facility [Member] | ||
Short-term Borrowings | 0 | 0 |
Other Lines of Credit [Member] | ||
Short-term Borrowings | $ 77,514 | $ 72,035 |
Note 11 - Credit Agreements - L
Note 11 - Credit Agreements - Long-term Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Original issue discount and deferred financing costs | $ (18,515) | $ (13,215) |
Finance lease obligation | 27,600 | 39,175 |
Other | 1,088 | 2,060 |
Total | 1,290,173 | 908,020 |
Less: current portion of debt | 808 | 1,721 |
Less: current portion of finance lease obligation | (2,866) | (4,208) |
Total | 1,286,499 | 902,091 |
ABL Revolving Credit Facility [Member] | ||
Line of credit | 0 | 100,000 |
Revolving Credit Facility [Member] | ||
Line of credit | 0 | 0 |
Tranche A Term Loan Facility [Member] | ||
Term Loan | 750,000 | 0 |
Tranche B Term Loan Facility [Member] | ||
Term Loan | $ 530,000 | $ 780,000 |
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 | 6 Months Ended | 83 Months Ended |
Sep. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | |
Stock Repurchase Program, Authorized Amount | $ 250,000 | |||
Stock Repurchase Program, Period in Force (Month) | 24 months | |||
Payments for Repurchase of Common Stock | $ 431,539 | |||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ 47.81 | |||
Treasury Stock [Member] | ||||
Shares Acquired Under Stock Repurchases Program, Shares (in shares) | 0 | 0 | 9,026,706 |
Note 13 - Earnings Per Share (D
Note 13 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 79,000 | 0 | 33,000 | 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 | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Net income attributable to Generac Holdings Inc. | $ 156,359 | $ 127,036 | $ 270,217 | $ 276,029 | |
Redeemable noncontrolling interest redemption value adjustment | (13,645) | 1,747 | (25,592) | 1,870 | |
Net income attributable to common shareholders | $ 142,714 | $ 128,783 | $ 244,625 | $ 277,899 | |
Weighted average shares, basic (in shares) | 63,662,510 | 62,605,166 | 63,607,711 | 62,533,725 | |
Dilutive effect of stock compensation awards (in shares) | [1] | 1,040,295 | 1,483,543 | 1,180,348 | 1,563,653 |
Dilutive effect of contingently issued shares (in shares) | 10,943 | 0 | 10,943 | 0 | |
Diluted shares (in shares) | 64,713,748 | 64,088,709 | 64,799,002 | 64,097,378 | |
Net income attributable to Generac Holdings Inc. per common share - basic: (in dollars per share) | $ 2.24 | $ 2.06 | $ 3.85 | $ 4.44 | |
Net income attributable to Generac Holdings Inc. per common share - diluted: (in dollars per share) | $ 2.21 | $ 2.01 | $ 3.78 | $ 4.34 | |
[1]Excludes approximately 17,000 stock options and restricted stock awards for the three months ended March 31, 2022 as the impact of such awards was anti-dilutive. There were no awards with an anti-dilutive impact for the three months ended March 31, 2021. |
Note 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) | 6 Months Ended | 18 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 21.30% | 22.70% | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 1.90% |
Note 15 - Commitments and Con_2
Note 15 - Commitments and Contingencies (Details Textual) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Amount Financed by Dealers | $ 238,643 | $ 115,900,000 |
Note 16 - Subsequent Events (De
Note 16 - Subsequent Events (Details Textual) - USD ($) | 1 Months Ended | ||
Aug. 05, 2022 | Jul. 31, 2022 | Sep. 30, 2020 | |
Stock Repurchase Program, Authorized Amount | $ 250,000,000 | ||
Stock Repurchase Program, Period in Force (Month) | 24 months | ||
Subsequent Event [Member] | |||
Treasury Stock, Shares, Acquired (in shares) | 536,633 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 123,900 | ||
Stock Repurchase Program, Authorized Amount | $ 500,000 | ||
Stock Repurchase Program, Period in Force (Month) | 24 months |