Generac reports strong growth
Generac Holdings Inc. reported that diversified growth drove a strong increase in revenue and earnings in the fourth quarter of 2013.
Generac, a leading designer and manufacturer of power generation equipment and other engine powered products, reported financial results for its fourth quarter and year ended Dec. 31, 2013. The statement said 2013 was another great year that helped drive a third consecutive year of record revenues with a compounded annual growth rate of 36 percent since implementing its "Powering Ahead" strategy three years ago.
For the fourth quarter, net sales increased year-over-year by 10 percent to $376.2 million, as compared to $342.0 million in the fourth quarter of 2012. Growth in shipments during the fourth quarter was driven by strong organic revenue growth from home standby generators and commercial and industrial products, along with the contribution from recent acquisitions, partially offset by a decline in shipments of portable generators.
Gross profit margin during the fourth quarter improved 180 basis points over the prior year. Net income during the fourth quarter of 2013 was $48.5 million, or $0.69 per share, as compared to $28.3 million or $0.41 per share for the same period of 2012. Adjusted net income, as defined in the accompanying reconciliation schedules, increased to $77.5 million from $60.7 million in the fourth quarter of 2012. Adjusted diluted net income per share was $1.11 as compared to $0.87 per share in the fourth quarter of 2012.
Adjusted EBITDA increased 24.7 percent to $103.6 million as compared to $83.1 million in the fourth quarter last year. Adjusted EBITDA margin during the fourth quarter improved to 27.5 percent as compared to 24.3 percent in the prior year. Cash flow from operations in the fourth quarter of 2013 was $104.7 million as compared to $106.4 million in the prior year quarter. Free cash flow was $88.2 million as compared to $97.4 million in the fourth quarter of 2012. On Nov. 1, 2013, the company closed its previously announced purchase of substantially all of the assets of Baldor Electric Company’s generator division (“Baldor Generators”). Baldor Generators offers a complete line of products up to 2.5MW throughout North America.
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