Generac (US:GNRC)2024-07-31 10:01Financial Performance - International segment total sales decreased 18% to $184.5 million compared to $223.7 million in the prior year quarter[1]. - Adjusted EBITDA for the international segment was $25.0 million, or 13.6% of total sales, down from $33.3 million, or 14.9% in the prior year[2]. - Net sales for the second quarter of 2024 were $998 million, slightly down from $1.00 billion in the prior-year second quarter[21]. - Adjusted EBITDA for the second quarter was $165 million, or 16.5% of net sales, compared to $137 million, or 13.6% in the prior year[23]. - Generac reported total net sales of $998.2 million for the three months ended June 30, 2024, compared to $1,000.4 million for the same period in 2023, reflecting a slight decrease of 0.2%[68]. - Adjusted EBITDA for the three months ended June 30, 2024, was $164.7 million, up from $136.5 million in the same period last year, representing an increase of 20.6%[68]. - The company reported a total adjusted EBITDA of $291.9 million for the six months ended June 30, 2024, compared to $236.6 million for the same period in 2023, reflecting a growth of 23.4%[68]. Sales Breakdown - Residential product sales increased approximately 8% to $538 million, while C&I product sales decreased approximately 10% to $344 million[22]. - Residential products sales reached $538.4 million for the three months ended June 30, 2024, compared to $498.6 million in the same period last year, indicating a growth of 8%[68]. - The company experienced a decrease in commercial and industrial products sales, reporting $344.2 million for the three months ended June 30, 2024, down from $384.4 million in the same period last year, a decline of 10.5%[68]. Guidance and Expectations - The company updated its full-year 2024 net sales guidance to 4 to 8% growth, up from the previous expectation of 3 to 7%[3]. - Net income margin for full-year 2024 is now expected to be approximately 6.5 to 7.5%, an increase from the prior expectation of 6.0 to 7.0%[4]. Cash Flow and Investments - Free cash flow for the six months ended June 30, 2024, was $189.6 million, significantly higher than $64.6 million for the same period in 2023[66]. - Free cash flow for the three months ended June 30, 2024, was $49,712, compared to $53,901 for the same period in 2023[73]. - Generac's net cash used in investing activities for the six months ended June 30, 2024, was $74.0 million, slightly lower than $75.4 million for the same period in 2023[66]. - Net cash provided by operating activities for the six months ended June 30, 2024, was $189,562, significantly higher than $64,588 for the same period in 2023[73]. Balance Sheet Highlights - Cash and cash equivalents increased to $218,317,000 as of June 30, 2024, up from $200,994,000 at December 31, 2023[44]. - Total assets as of June 30, 2024, were $5,118,566,000, compared to $5,093,312,000 at December 31, 2023[44]. - Total liabilities increased slightly to $2,746,047,000 as of June 30, 2024, from $2,743,693,000 at December 31, 2023[44]. - The company’s retained earnings rose to $2,601,974,000 as of June 30, 2024, compared to $2,519,313,000 at December 31, 2023[44]. - The company reported an increase in accounts receivable to $610,322,000 as of June 30, 2024, from $537,316,000 at December 31, 2023[44]. - Generac's total current liabilities were $912,557,000 as of June 30, 2024, compared to $880,771,000 at December 31, 2023[44]. Shareholder Returns - The company repurchased 355,640 shares for approximately $51 million, with $449 million remaining under the current repurchase program[7]. - Net income attributable to common shareholders for the six months ended June 30, 2024, was $85.5 million, compared to $59.7 million for the same period in 2023, marking an increase of 43.3%[66]. - Net income attributable to Generac Holdings Inc. for the three months ended June 30, 2024, was $59,115, an increase of 31% compared to $45,198 for the same period in 2023[73]. - Adjusted net income for the six months ended June 30, 2024, was $134,825, up 23% from $109,151 for the same period in 2023[73]. Strategic Initiatives - The company finalized a grant from the U.S. Department of Energy for up to $200 million in funding for residential clean energy projects[9]. - The company continues to focus on expanding its energy technology offerings to lead the evolution towards more resilient and sustainable energy solutions[35].