Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
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 | Q3 | |
Document Fiscal Year Focus | 2019 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-34627 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-5654756 | |
Entity Address, Address Line One | S45 W29290 Hwy 59 | |
Entity Address, City or Town | Waukesha | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53189 | |
City Area Code | 262 | |
Local Phone Number | 544-4811 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | GNRC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 62,541,881 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 216,038 | $ 224,482 |
Accounts receivable, less allowance for doubtful accounts | 373,591 | 326,133 |
Inventories | 517,232 | 544,750 |
Prepaid expenses and other assets | 30,570 | 25,404 |
Total current assets | 1,137,431 | 1,120,769 |
Property and equipment, net | 303,288 | 278,929 |
Customer lists, net | 55,649 | 61,194 |
Patents, net | 75,781 | 29,970 |
Other intangible assets, net | 11,809 | 3,043 |
Tradenames, net | 149,155 | 152,283 |
Goodwill | 811,914 | 764,655 |
Deferred income taxes | 3,217 | 163 |
Operating lease and other assets | 45,877 | 15,308 |
Total assets | 2,594,121 | 2,426,314 |
Current liabilities: | ||
Short-term borrowings | 66,985 | 45,583 |
Accounts payable | 241,290 | 328,091 |
Accrued wages and employee benefits | 37,401 | 40,819 |
Other accrued liabilities | 127,786 | 144,236 |
Current portion of long-term borrowings and finance lease obligations | 2,554 | 1,977 |
Total current liabilities | 476,016 | 560,706 |
Long-term borrowings and finance lease obligations | 884,315 | 876,396 |
Deferred income taxes | 92,520 | 71,300 |
Operating lease and other long-term liabilities | 145,491 | 95,647 |
Total liabilities | 1,598,342 | 1,604,049 |
Redeemable noncontrolling interests | 56,564 | 61,004 |
Stockholders’ equity: | ||
Common stock, par value $0.01, 500,000,000 shares authorized, 71,640,792 and 71,186,418 shares issued at September 30, 2019 and December 31, 2018, respectively | 716 | 712 |
Additional paid-in capital | 492,671 | 476,116 |
Treasury stock, at cost | (324,351) | (321,473) |
Excess purchase price over predecessor basis | (202,116) | (202,116) |
Retained earnings | 1,013,707 | 831,123 |
Accumulated other comprehensive loss | (46,363) | (23,813) |
Stockholders' equity attributable to Generac Holdings, Inc. | 934,264 | 760,549 |
Noncontrolling interests | 4,951 | 712 |
Total stockholders' equity | 939,215 | 761,261 |
Total liabilities and stockholders’ equity | $ 2,594,121 | $ 2,426,314 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
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) | 71,640,792 | 71,186,418 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Net sales | $ 601,135 | $ 562,388 | $ 1,613,404 | $ 1,460,060 | |
Costs of goods sold | 383,618 | 362,054 | 1,037,874 | 939,326 | |
Gross profit | 217,517 | 200,334 | 575,530 | 520,734 | |
Operating expenses: | |||||
Selling and service | 59,356 | 48,985 | 158,954 | 141,874 | |
Research and development | 17,603 | 13,653 | 48,906 | 38,122 | |
General and administrative | 27,596 | 25,499 | 80,016 | 75,613 | |
Amortization of intangibles | 7,406 | 5,678 | 19,999 | 16,792 | |
Total operating expenses | 111,961 | 93,815 | 307,875 | 272,401 | |
Income from operations | 105,556 | 106,519 | 267,655 | 248,333 | |
Other (expense) income: | |||||
Interest expense | (10,704) | (9,824) | (31,428) | (30,939) | |
Investment income | 523 | 382 | 1,889 | 1,095 | |
Loss on extinguishment of debt | [1] | 0 | 0 | 0 | (1,332) |
Other, net | (414) | (483) | (1,868) | (2,764) | |
Total other expense, net | (10,595) | (9,925) | (31,407) | (33,940) | |
Income before provision for income taxes | 94,961 | 96,594 | 236,248 | 214,393 | |
Provision for income taxes | 20,064 | 20,072 | 53,876 | 49,870 | |
Net income | 74,897 | 76,522 | 182,372 | 164,523 | |
Net (loss) income attributable to noncontrolling interests | (677) | 746 | (21) | 1,841 | |
Net income attributable to Generac Holdings Inc. | $ 75,574 | $ 75,776 | $ 182,393 | $ 162,682 | |
Net income attributable to Generac Holdings Inc. per common share - basic: (in dollars per share) | $ 1.20 | $ 1.12 | $ 2.95 | $ 2.36 | |
Weighted average common shares outstanding - basic: (in shares) | 61,973,447 | 61,579,564 | 61,878,500 | 61,659,817 | |
Net income attributable to Generac Holdings Inc. per common share - diluted: (in dollars per share) | $ 1.18 | $ 1.11 | $ 2.92 | $ 2.34 | |
Weighted average common shares outstanding - diluted: (in shares) | 62,770,592 | 62,220,298 | 62,519,205 | 62,266,140 | |
Comprehensive income attributable to Generac Holdings Inc. | $ 64,904 | $ 80,768 | $ 161,828 | $ 173,355 | |
[1] | Represents the non-cash write-off of original issue discount and deferred financing costs due 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, 2017 | 70,820,173 | (8,448,874) | |||||||
Balance at Dec. 31, 2017 | $ 708 | $ 459,816 | $ (294,005) | $ (202,116) | $ 610,836 | $ (21,198) | $ 554,041 | $ 279 | $ 554,320 |
Acquisition of business | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Unrealized gain/loss on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | 10,403 | 10,403 | 0 | 10,403 |
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | 1,238 | 1,238 | 0 | 1,238 |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 285,400 | 0 | |||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 3 | 4,160 | $ 0 | 0 | 0 | 0 | 4,163 | 0 | 4,163 |
Net share settlement of restricted stock awards (in shares) | 0 | (36,803) | |||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (1,737) | 0 | 0 | 0 | (1,737) | 0 | (1,737) |
Stock repurchases | 0 | 0 | (25,655) | 0 | 0 | 0 | (25,655) | 0 | (25,655) |
Cash dividends paid to noncontrolling interest of subsidiary | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (314) | (314) |
Share-based compensation | 0 | 9,910 | 0 | 0 | 0 | 0 | 9,910 | 0 | 9,910 |
Redemption value adjustment | 0 | 0 | 0 | 0 | (16,882) | 0 | (16,882) | 0 | (16,882) |
Net income | $ 0 | 0 | $ 0 | 0 | 162,682 | 0 | 162,682 | 507 | 163,189 |
Stock repurchases (in shares) | (560,000) | ||||||||
Balance (in shares) at Sep. 30, 2018 | 71,105,573 | (9,045,677) | |||||||
Balance at Sep. 30, 2018 | $ 711 | 473,886 | $ (321,397) | (202,116) | 756,636 | (9,557) | 698,163 | 472 | 698,635 |
Balance (in shares) at Jun. 30, 2018 | 71,030,347 | (9,039,480) | |||||||
Balance at Jun. 30, 2018 | $ 710 | 468,598 | $ (321,052) | (202,116) | 687,772 | (16,900) | 617,012 | 243 | 617,255 |
Acquisition of business | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Unrealized gain/loss on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | 1,626 | 1,626 | (5) | 1,621 |
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | 5,717 | 5,717 | 0 | 5,717 |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 75,226 | 0 | |||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 1 | 2,369 | $ 0 | 0 | 0 | 0 | 2,370 | 0 | 2,370 |
Net share settlement of restricted stock awards (in shares) | 0 | (6,197) | |||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (345) | 0 | 0 | 0 | (345) | 0 | (345) |
Stock repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cash dividends paid to noncontrolling interest of subsidiary | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Share-based compensation | 0 | 2,919 | 0 | 0 | 0 | 0 | 2,919 | 0 | 2,919 |
Redemption value adjustment | 0 | 0 | 0 | 0 | (6,912) | 0 | (6,912) | 0 | (6,912) |
Net income | $ 0 | 0 | $ 0 | 0 | 75,776 | 0 | 75,776 | 234 | 76,010 |
Balance (in shares) at Sep. 30, 2018 | 71,105,573 | (9,045,677) | |||||||
Balance at Sep. 30, 2018 | $ 711 | 473,886 | $ (321,397) | (202,116) | 756,636 | (9,557) | 698,163 | 472 | 698,635 |
Balance (in shares) at Dec. 31, 2018 | 71,186,418 | (9,047,060) | |||||||
Balance at Dec. 31, 2018 | $ 712 | 476,116 | $ (321,473) | (202,116) | 831,123 | (23,813) | 760,549 | 712 | 761,261 |
Acquisition of business | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4,125 | 4,125 |
Unrealized gain/loss on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | (14,898) | (14,898) | 0 | (14,898) |
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | (7,652) | (7,652) | 27 | (7,625) |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 454,374 | 0 | |||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 4 | 5,078 | $ 0 | 0 | 0 | 0 | 5,082 | 0 | 5,082 |
Net share settlement of restricted stock awards (in shares) | 0 | (53,862) | |||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (2,878) | 0 | 0 | 0 | (2,878) | 0 | (2,878) |
Stock repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cash dividends paid to noncontrolling interest of subsidiary | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (285) | (285) |
Share-based compensation | 0 | 11,477 | 0 | 0 | 0 | 0 | 11,477 | 0 | 11,477 |
Redemption value adjustment | 0 | 0 | 0 | 0 | 191 | 0 | 191 | 0 | 191 |
Net income | $ 0 | 0 | $ 0 | 0 | 182,393 | 0 | 182,393 | 372 | 182,765 |
Stock repurchases (in shares) | 0 | ||||||||
Balance (in shares) at Sep. 30, 2019 | 71,640,792 | (9,100,922) | |||||||
Balance at Sep. 30, 2019 | $ 716 | 492,671 | $ (324,351) | (202,116) | 1,013,707 | (46,363) | 934,264 | 4,951 | 939,215 |
Balance (in shares) at Jun. 30, 2019 | 71,471,341 | (9,098,294) | |||||||
Balance at Jun. 30, 2019 | $ 715 | 485,703 | $ (324,149) | (202,116) | 939,618 | (33,831) | 865,940 | 5,071 | 871,011 |
Acquisition of business | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Unrealized gain/loss on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | (2,721) | (2,721) | 0 | (2,721) |
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | (9,811) | (9,811) | (11) | (9,822) |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 169,451 | 0 | |||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 1 | 3,419 | $ 0 | 0 | 0 | 0 | 3,420 | 0 | 3,420 |
Net share settlement of restricted stock awards (in shares) | 0 | (2,628) | |||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (202) | 0 | 0 | 0 | (202) | 0 | (202) |
Stock repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cash dividends paid to noncontrolling interest of subsidiary | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Share-based compensation | 0 | 3,549 | 0 | 0 | 0 | 0 | 3,549 | 0 | 3,549 |
Redemption value adjustment | 0 | 0 | 0 | 0 | (1,485) | 0 | (1,485) | 0 | (1,485) |
Net income | $ 0 | 0 | $ 0 | 0 | 75,574 | 0 | 75,574 | (109) | 75,465 |
Stock repurchases (in shares) | 0 | ||||||||
Balance (in shares) at Sep. 30, 2019 | 71,640,792 | (9,100,922) | |||||||
Balance at Sep. 30, 2019 | $ 716 | $ 492,671 | $ (324,351) | $ (202,116) | $ 1,013,707 | $ (46,363) | $ 934,264 | $ 4,951 | $ 939,215 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Attributable to Parent [Member] | ||||
Unrealized gain (loss) on interest rate swaps, tax | $ (956) | $ 571 | $ (5,234) | $ 3,654 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Operating activities | |||
Net income | $ 182,372 | $ 164,523 | |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 22,842 | 18,332 | |
Amortization of intangible assets | 19,999 | 16,792 | |
Amortization of original issue discount and deferred financing costs | 3,597 | 3,554 | |
Loss on extinguishment of debt | [1] | 0 | 1,332 |
Deferred income taxes | 19,514 | 17,218 | |
Share-based compensation expense | [2] | 11,477 | 9,910 |
Other | 557 | 1,249 | |
Net changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (45,543) | (55,649) | |
Inventories | 27,190 | (99,957) | |
Other assets | 1,488 | (16,488) | |
Accounts payable | (83,174) | 47,559 | |
Accrued wages and employee benefits | (7,517) | 13,044 | |
Other accrued liabilities | (17,092) | 18,011 | |
Excess tax benefits from equity awards | (1,908) | (432) | |
Net cash provided by operating activities | 133,802 | 138,998 | |
Investing activities | |||
Proceeds from sale of property and equipment | 83 | 213 | |
Proceeds from beneficial interests in securitization transactions | 2,036 | 2,825 | |
Expenditures for property and equipment | (45,447) | (25,577) | |
Acquisition of business, net of cash acquired | (120,863) | (71,926) | |
Net cash used in investing activities | (164,191) | (94,465) | |
Financing activities | |||
Proceeds from short-term borrowings | 68,802 | 28,332 | |
Proceeds from long-term borrowings | 0 | 51,425 | |
Repayments of short-term borrowings | (45,437) | (12,478) | |
Repayments of long-term borrowings and finance lease obligations | (3,110) | (51,164) | |
Stock repurchases | 0 | (25,656) | |
Cash dividends paid to noncontrolling interest of subsidiary | (285) | (314) | |
Payment of debt issuance costs | 0 | (1,702) | |
Taxes paid related to equity awards | (5,749) | (2,777) | |
Proceeds from exercise of stock options | 7,957 | 5,191 | |
Net cash provided by (used in) financing activities | 22,178 | (9,143) | |
Effect of exchange rate changes on cash and cash equivalents | (233) | 139 | |
Net (decrease) increase in cash and cash equivalents | (8,444) | 35,529 | |
Cash and cash equivalents at beginning of period | 224,482 | 138,472 | |
Cash and cash equivalents at end of period | $ 216,038 | $ 174,001 | |
[1] | Represents the non-cash write-off of original issue discount and deferred financing costs due 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 | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018). ● In June 2018, 10kW 2,750kW. ● In February 2019, 2010 ● In March 2019, 2005 ● In April 2019, 2010 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 (U.S. GAAP). All intercompany amounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of September 30, 2019, three nine September 30, 2019 2018, three nine September 30, 2019 2018, nine September 30, 2019 2018 not not The preparation of the condensed consolidated financial statements in conformity with U.S. 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 disclosure normally included in consolidated financial statements prepared in accordance with U.S. 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, 2018. New Accounting Standards Not In June 2016, 2016 13, Financial Instruments – Credit Losses (Topic 326 Measurement of Credit Losses on Financial Instruments December 15, 2019, may Recently Adopted Accounting Standards On April 1, 2019, 2018 15, Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. not On January 1, 2019, 2016 02, Leases no not 9, On January 1, 2019, 2018 02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 2017 not There are several new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not |
Note 2 - Acquisitions
Note 2 - Acquisitions | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2 . Acquisitions Acquisition of Pika On April 26, 2019, The Company recorded a preliminary purchase price allocation during the second 2019 not September 30, 2019. Acquisition of Neurio On March 12, 2019, three September 30, 2019. The Company recorded a preliminary purchase price allocation in the second 2019 September 30, 2019. Acquisition of Selmec On June 1, 2018, The Company finalized the Selmec purchase price allocation during the second 2019 not September 30, 2019. Overall, the net sales contribution from all non-annualized acquisitions to the three nine September 30, 2019 |
Note 3 - Redeemable Noncontroll
Note 3 - Redeemable Noncontrolling Interest | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Redeemable Noncontrolling Interest [Text Block] | 3. On March 1, 2016, February 2019, five five no April 1, 2021. 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 14, Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 59,117 $ 53,035 $ 61,004 $ 43,929 Net income (563 ) 519 (388 ) 1,341 Foreign currency translation (3,475 ) (569 ) (3,861 ) (2,255 ) Redemption value adjustment 1,485 6,912 (191 ) 16,882 Balance at end of period $ 56,564 $ 59,897 $ 56,564 $ 59,897 |
Note 4 - Derivative Instruments
Note 4 - Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2019 | |
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 Accounting Standards Codification (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 The Company entered into two interest rate swap agreements in October 2013 May 2014, July 2018. 2017, twenty sixteen September 30, 2019. three nine September 30, 2019 three nine September 30, 2018 Fair Value The following table presents the fair value of all of the Company’s derivatives: September 30 , 9 December 31, 8 Commodity contracts $ (172 ) $ (160 ) Foreign currency contracts (302 ) (117 ) Interest rate swaps (11,826 ) 8,307 The fair value of the commodity and foreign currency contracts is included in other accrued liabilities, and the fair value of the interest rate swaps is included in other accrued liabilities and other long-term liabilities in the condensed consolidated balance sheets as of September 30, 2019. December 31, 2018. September 30, 2019 December 31, 2018 |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5 . Fair Value Measurements ASC 820 10, Fair Value Measurement 820 10 three 1 2 3 no The Company believes the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, short-term borrowings and ABL facility borrowings), excluding Term Loan borrowings, approximates the fair value of these instruments based upon their short-term nature. The fair value of Term Loan borrowings, which have an aggregate carrying value of $861,231, was approximately $881,198 (Level 2 September 30, 2019, For the fair value of the derivatives measured on a recurring basis, refer to the fair value table in Note 4, 2. 820 10. |
Note 6 - Accumulated Other Comp
Note 6 - Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2019 | |
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 nine September 30, 2019 2018, Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – July 1, 2019 $ (16,673 ) $ (10,541 ) $ (6,617 ) $ (33,831 ) Other comprehensive loss before reclassifications (9,811 ) - (2,721 ) (1) (12,532 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive loss (9,811 ) - (2,721 ) (12,532 ) Ending Balance – September 30, 2019 $ (26,484 ) $ (10,541 ) $ (9,338 ) $ (46,363 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain on Cash Flow Hedges Total Beginning Balance – July 1, 2018 $ (17,335 ) $ (10,978 ) $ 11,413 $ (16,900 ) Other comprehensive income before reclassifications 5,717 - 1,626 (2) 7,343 Amounts reclassified from AOCL - - - - Net current-period other comprehensive income 5,717 - 1,626 7,343 Ending Balance – September 30, 2018 $ (11,618 ) $ (10,978 ) $ 13,039 $ (9,557 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2019 $ (18,832 ) $ (10,541 ) $ 5,560 $ (23,813 ) Other comprehensive loss before reclassifications (7,652 ) - (14,898 ) (3) (22,550 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive loss (7,652 ) - (14,898 ) (22,550 ) Ending Balance – September 30, 2019 $ (26,484 ) $ (10,541 ) $ (9,338 ) $ (46,363 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain on Cash Flow Hedges Total Beginning Balance – January 1, 2018 $ (12,856 ) $ (10,978 ) $ 2,636 $ (21,198 ) Other comprehensive income before reclassifications 1,238 - 10,403 (4) 11,641 Amounts reclassified from AOCL - - - - Net current-period other comprehensive income 1,238 - 10,403 11,641 Ending Balance – September 30, 2018 $ (11,618 ) $ (10,978 ) $ 13,039 $ (9,557 ) ( 1 Represents unrealized losses of $(3,677), net of tax effect of $956, for the three September 30, 2019. ( 2 Represents unrealized gains of $2,197, net of tax effect of $(571), for the three September 30, 2018. ( 3 Represents unrealized losses of $(20,132), net of tax effect of $5,234, for the nine September 30, 2019. ( 4 Represents unrealized gains of $14,057, net of tax effect of $(3,654), for the nine September 30, 2018. |
Note 7 - Segment Reporting
Note 7 - Segment Reporting | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7 . Segment Reporting The Company has tworeportable segments for financial reporting purposes - Domestic and International. The Domestic segment includes the legacy Generac business and the acquisitions that are based in the U.S. and Canada, all of which have revenues that are substantially derived from the U.S. and Canada. The International segment includes the Ottomotores, Tower Light, Pramac, Motortech and Selmec businesses, all of which have revenues that are substantially derived from outside of the U.S and Canada. Both reportable segments design and manufacture a wide range of power generation equipment 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 and other power products geared for varying end customer uses. Residential products and commercial & industrial (C&I) products are each a similar class of products based on similar power output and end customer. The breakout of net sales between residential, C&I, and other products by reportable segment is as follows: Net Sales by Segment Three Months Ended September 30, 2019 Product Classes Domestic International Total Residential products $ 324,096 $ 10,933 $ 335,029 Commercial & industrial products 133,559 81,346 214,905 Other 40,508 10,693 51,201 Total net sales $ 498,163 $ 102,972 $ 601,135 Three Months Ended September 30, 2018 Product Classes Domestic International Total Residential products $ 300,387 $ 11,531 $ 311,918 Commercial & industrial products 121,952 84,414 206,366 Other 33,793 10,311 44,104 Total net sales $ 456,132 $ 106,256 $ 562,388 Nine Months Ended September 30, 2019 Product Classes Domestic International Total Residential products $ 784,459 $ 36,774 $ 821,233 Commercial & industrial products 394,545 259,913 654,458 Other 104,344 33,369 137,713 Total net sales $ 1,283,348 $ 330,056 $ 1,613,404 Nine Months Ended September 30, 2018 Product Classes Domestic International Total Residential products $ 711,203 $ 37,587 $ 748,790 Commercial & industrial products 340,244 256,875 597,119 Other 91,040 23,111 114,151 Total net sales $ 1,142,487 $ 317,573 $ 1,460,060 Residential products consist primarily of automatic home standby generators ranging in output from 6kW 60kW, C&I products consist of larger output stationary generators used in various C&I applications and fueled by diesel, natural gas, liquid propane and bi-fuel, with power outputs ranging from 10kW 3,250kW Other products consist primarily of aftermarket service parts and product accessories sold to our dealers, and the amortization of extended warranty deferred revenue. The aftermarket service parts and product accessories are generally transferred to the customer at a point in time, while the extended warranty revenue is recognized over the life of the contract. In accordance with ASU 2014 09, Revenue from Contracts with Customers not 2014 09, three September 30, 2018 nine September 30, 2018 third 2018 10 no 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Domestic $ 121,217 $ 117,108 $ 306,723 $ 273,185 International 4,736 7,366 18,244 25,300 Total adjusted EBITDA $ 125,953 $ 124,474 $ 324,967 $ 298,485 Interest expense (10,704 ) (9,824 ) (31,428 ) (30,939 ) Depreciation and amortization (15,494 ) (11,841 ) (42,841 ) (35,124 ) Non-cash write-down and other adjustments (1) (347 ) (900 ) (673 ) (3,522 ) Non-cash share-based compensation expense (2) (3,549 ) (2,919 ) (11,477 ) (9,910 ) Loss on extinguishment of debt (3) - - - (1,332 ) Transaction costs and credit facility fees (4) (358 ) (1,767 ) (2,047 ) (2,470 ) Business optimization expenses (5) (567 ) (583 ) (809 ) (750 ) Other 27 (46 ) 556 (45 ) Income before provision for income taxes $ 94,961 $ 96,594 $ 236,248 $ 214,393 ( 1 Includes certain foreign currency and purchase accounting related adjustments, gains/losses on disposal of assets and unrealized mark-to-market adjustments on commodity contracts. ( 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 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 Represents severance and other non-recurring restructuring charges related to the consolidation of certain of our facilities. The Company’s sales in the United States represented approximately 78% of total sales for the three September 30, 2019 2018. nine September 30, 2019 2018, September 30, 2019 December 31, 2018, |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 8 . Balance Sheet Details Inventories consist of the following: September 30, December 31, 2018 Raw material $ 323,864 $ 348,980 Work-in-process 8,815 6,971 Finished goods 184,553 188,799 Total $ 517,232 $ 544,750 Property and equipment consists of the following: September 30, December 31, 2018 Land and improvements $ 17,753 $ 15,975 Buildings and improvements 174,226 163,161 Machinery and equipment 114,359 103,726 Dies and tools 20,947 28,198 Vehicles 3,344 2,070 Office equipment and systems 93,357 82,638 Leasehold improvements 4,076 2,137 Construction in progress 28,139 26,543 Gross property and equipment 456,201 424,448 Accumulated depreciation (152,913 ) (145,519 ) Total $ 303,288 $ 278,929 Total property and equipment included capital leases of $20,158 at December 31, 2018, nine September 30, 2019. 9, 842, Leases , 2019. |
Note 9 - Leases
Note 9 - Leases | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | 9. The Company determines if an arrangement is or contains a lease at contract inception. The Company recognizes a right of use ("ROU") asset and lease liability at the lease commencement date based on the present value of the lease payments over the lease term. As the Company’s leases generally do not may The Company has lease agreements with both lease and nonlease components, which it elected to account for as a single lease component. However, the Company did not The Company leases certain manufacturing facilities, distribution centers, office space, warehouses, automobiles, machinery and computer equipment globally under both finance and operating leases. The Company’s leases have remaining lease terms of up to 20 years, of which certain leases, primarily within the buildings and improvements asset class, include options to extend the leases for up to 10 additional years. Further, the Company leases certain buildings from a noncontrolling interest holder, which the Company has determined to be arms’ length transactions. The Company is a lessor of one third not The Company records its operating lease cost and amortization of finance lease ROU assets within cost of goods sold or operating expenses in the condensed consolidated statements of comprehensive income depending on the cost center of the underlying asset. The Company records its finance lease interest cost within interest expense in the condensed consolidated statements of comprehensive income. The components of total lease cost consist of the following: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 2,312 $ 7,263 Finance lease cost: Amortization of ROU assets 643 1,873 Interest on lease liabilities 554 1,696 Total lease cost $ 3,509 $ 10,832 Prior to the adoption of ASC 842, As of January 1, 2019, 2016 02, September 30, 2019 Operating Leases Operating lease ROU assets (1) $ 37,270 Operating lease liabilities - current (2) $ 7,519 Operating lease liabilities - noncurrent (3) 30,693 Total operating lease liabilities $ 38,212 Finance Leases Finance lease ROU assets, gross $ 29,353 Accumulated depreciation - finance lease ROU assets (3,326 ) Finance lease ROU assets, net (4) $ 26,027 Finance lease liabilities - current (5) $ 1,813 Finance lease liabilities - noncurrent (6) 24,158 Total finance lease liabilities $ 25,971 ( 1 Recorded in the operating lease and other assets line ( 2 Recorded in the other accrued liabilities line ( 3 Recorded in the operating lease and other long-term liabilities line ( 4 Recorded in the property and equipment, net line ( 5 Recorded in the current portion of long-term borrowings and finance lease obligations line ( 6 Recorded in the long-term borrowings and finance lease obligations line Supplemental cash flow information related to the Company’s leases is as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,565 $ 7,951 Operating cash flows from finance leases 471 1,393 Financing cash flows from finance leases 905 2,261 ROU assets obtained in exchange for lease liabilities Operating leases 989 3,782 Finance leases 194 8,165 Weighted average remaining lease term and discount rate information related to the Company’s leases is as follows: September 30, 2019 Weighted average remaining lease term (in years) Operating Leases 7.00 Finance Leases 14.24 Weighted average discount rate Operating Leases 5.51 % Finance Leases 7.87 % The maturities of the Company’s lease liabilities are as follows: As of September 30, 2019 Finance Leases Operating Leases Remainder of 2019 $ 934 $ 2,481 2020 3,519 8,934 2021 3,158 6,898 2022 3,388 5,368 2023 2,655 4,581 After 2023 32,016 18,338 Total minimum lease payments 45,670 46,600 Interest component (19,699 ) (8,388 ) Present value of minimum lease payments $ 25,971 $ 38,212 As of December 31, 2018 Capital Leases Operating Leases 2019 $ 2,166 $ 8,914 2020 2,477 7,575 2021 2,053 6,379 2022 1,995 4,955 2023 1,889 4,482 After 2023 18,108 18,614 Total minimum lease payments 28,688 $ 50,919 Interest component (8,517 ) Present value of minimum lease payments $ 20,171 |
Note 10 - Product Warranty Obli
Note 10 - Product Warranty Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 1 . Product Warranty Obligations The Company records a liability for standard product warranty obligations accounted for as assurance warranties at the time of sale 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 45,324 $ 38,660 $ 41,785 $ 35,422 Product warranty reserve assumed in acquisition - - 407 - Payments (7,576 ) (5,205 ) (18,867 ) (15,097 ) Provision for warranty issued 8,518 8,074 23,656 19,552 Changes in estimates for pre-existing warranties 230 (974 ) (485 ) 678 Balance at end of period $ 46,496 $ 40,555 $ 46,496 $ 40,555 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 74,517 $ 63,007 $ 68,340 $ 57,854 Deferred revenue contracts issued 5,918 4,787 18,832 15,029 Amortization of deferred revenue contracts (3,573 ) (2,873 ) (10,310 ) (7,962 ) Balance at end of period $ 76,862 $ 64,921 $ 76,862 $ 64,921 The timing of recognition of the Company’s deferred revenue balance related to extended warranties at September 30, 2019 Remainder of 2019 $ 3,704 2020 15,250 2021 15,678 2022 13,831 2023 10,535 After 2023 17,864 Total $ 76,862 Standard product warranty obligations and extended warranty related deferred revenues are included in the condensed consolidated balance sheets as follows: September 30, December 31, 2019 2018 Product warranty liability Current portion - other accrued liabilities $ 27,109 $ 25,396 Long-term portion - other long-term liabilities 19,387 16,389 Total $ 46,496 $ 41,785 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 15,924 $ 13,646 Long-term portion - other long-term liabilities 60,938 54,694 Total $ 76,862 $ 68,340 |
Note 11 - Contract Balances
Note 11 - Contract Balances | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 11. 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 $7,814 and $14,174 at September 30, 2019 December 31, 2018, nine September 30, 2019, December 31, 2018 one |
Note 12 - Credit Agreements
Note 12 - Credit Agreements | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 12 . Credit Agreements Short-term borrowings are included in the condensed consolidated balance sheets as follows: September 30, December 31, 2019 2018 ABL facility $ 28,479 $ 18,459 Other lines of credit 38,506 27,124 Total $ 66,985 $ 45,583 Long-term borrowings are included in the condensed consolidated balance sheets as follows: September 30, December 31, 2019 2018 Term loan $ 879,000 $ 879,000 Original issue discount and deferred financing costs (18,843 ) (22,440 ) Finance lease obligation 25,971 20,171 Other 741 1,642 Total 886,869 878,373 Less: current portion of debt 741 1,075 Less: current portion of finance lease obligation 1,813 902 Total $ 884,315 $ 876,396 The Company’s credit agreements originally provided for a $1,200,000 term loan B credit facility (Term Loan) and currently include a $300,000 uncommitted incremental term loan facility. The maturity date of the Term Loan is May 31, 2023. first second In June 2018, The Term Loan does not 1.00 September 30, 2019, 1.00 no The Company’s credit agreements also originally provided for a senior secured ABL revolving credit facility (ABL Facility). Borrowings under the ABL Facility are guaranteed by all of the Company’s wholly-owned domestic restricted subsidiaries, and are secured by associated collateral agreements which pledge a first second In June 2018, June 12, 2023. As of September 30, 2019, As of September 30, 2019 December 31, 2018, |
Note 13 - Stock Repurchase Prog
Note 13 - Stock Repurchase Program | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | 13 . Stock Repurchase Program In August 2015, third 2016. October 2016, fourth 2018. September 2018, October 2018, may 24 may may may may nine September 30, 2018, no three nine September 30, 2019. |
Note 14 - Earnings Per Share
Note 14 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 1 4 . Earnings Per Share Basic earnings per share is calculated by dividing net income attributable to the common stockholders of the Company by the weighted average number of common shares outstanding during the period, exclusive of restricted shares. Except where the result would be anti-dilutive, diluted earnings per share is calculated by assuming the vesting of unvested restricted stock and the exercise of stock options. Refer to Note 3, The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator Net income attributable to Generac Holdings Inc. $ 75,574 $ 75,776 $ 182,393 $ 162,682 Redeemable noncontrolling interest redemption value adjustment (1,485 ) (6,912 ) 191 (16,882 ) Net income attributable to common shareholders $ 74,089 $ 68,864 $ 182,584 $ 145,800 Denominator Weighted average shares, basic 61,973,447 61,579,564 61,878,500 61,659,817 Dilutive effect of stock compensation awards (1) 797,145 640,734 640,705 606,323 Diluted shares 62,770,592 62,220,298 62,519,205 62,266,140 Net income attributable to common shareholders per share Basic $ 1.20 $ 1.12 $ 2.95 $ 2.36 Diluted $ 1.18 $ 1.11 $ 2.92 $ 2.34 ( 1 three nine September 30, 2018, three nine September 30, 2019. |
Note 15 - Income Taxes
Note 15 - Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 1 5 . Income Taxes The effective income tax rates for the nine September 30, 2019 2018 |
Note 16 - Benefit Plans
Note 16 - Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 16. In June 2019, second 2019, third 2019, may third fourth 2019. not 2008 one December 31, 2018. September 30, 2019, |
Note 17 - Commitments and Conti
Note 17 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 1 7 . 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 September 30, 2019 December 31, 2018 In the normal course of business, the Company is named as a defendant in various lawsuits in which claims are asserted against the Company. In the opinion of management, the liabilities, if any, which may not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Standards Not In June 2016, 2016 13, Financial Instruments – Credit Losses (Topic 326 Measurement of Credit Losses on Financial Instruments December 15, 2019, may Recently Adopted Accounting Standards On April 1, 2019, 2018 15, Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. not On January 1, 2019, 2016 02, Leases no not 9, On January 1, 2019, 2018 02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 2017 not There are several new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not |
Note 3 - Redeemable Noncontro_2
Note 3 - Redeemable Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Redeemable Noncontrolling Interest [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 59,117 $ 53,035 $ 61,004 $ 43,929 Net income (563 ) 519 (388 ) 1,341 Foreign currency translation (3,475 ) (569 ) (3,861 ) (2,255 ) Redemption value adjustment 1,485 6,912 (191 ) 16,882 Balance at end of period $ 56,564 $ 59,897 $ 56,564 $ 59,897 |
Note 4 - Derivative Instrumen_2
Note 4 - Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule Of Derivative Assets (Liabilities) at Fair Value [Table Text Block] | September 30 , 9 December 31, 8 Commodity contracts $ (172 ) $ (160 ) Foreign currency contracts (302 ) (117 ) Interest rate swaps (11,826 ) 8,307 |
Note 6 - Accumulated Other Co_2
Note 6 - Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – July 1, 2019 $ (16,673 ) $ (10,541 ) $ (6,617 ) $ (33,831 ) Other comprehensive loss before reclassifications (9,811 ) - (2,721 ) (1) (12,532 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive loss (9,811 ) - (2,721 ) (12,532 ) Ending Balance – September 30, 2019 $ (26,484 ) $ (10,541 ) $ (9,338 ) $ (46,363 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain on Cash Flow Hedges Total Beginning Balance – July 1, 2018 $ (17,335 ) $ (10,978 ) $ 11,413 $ (16,900 ) Other comprehensive income before reclassifications 5,717 - 1,626 (2) 7,343 Amounts reclassified from AOCL - - - - Net current-period other comprehensive income 5,717 - 1,626 7,343 Ending Balance – September 30, 2018 $ (11,618 ) $ (10,978 ) $ 13,039 $ (9,557 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2019 $ (18,832 ) $ (10,541 ) $ 5,560 $ (23,813 ) Other comprehensive loss before reclassifications (7,652 ) - (14,898 ) (3) (22,550 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive loss (7,652 ) - (14,898 ) (22,550 ) Ending Balance – September 30, 2019 $ (26,484 ) $ (10,541 ) $ (9,338 ) $ (46,363 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain on Cash Flow Hedges Total Beginning Balance – January 1, 2018 $ (12,856 ) $ (10,978 ) $ 2,636 $ (21,198 ) Other comprehensive income before reclassifications 1,238 - 10,403 (4) 11,641 Amounts reclassified from AOCL - - - - Net current-period other comprehensive income 1,238 - 10,403 11,641 Ending Balance – September 30, 2018 $ (11,618 ) $ (10,978 ) $ 13,039 $ (9,557 ) |
Note 7 - Segment Reporting (Tab
Note 7 - Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Net Sales by Segment Three Months Ended September 30, 2019 Product Classes Domestic International Total Residential products $ 324,096 $ 10,933 $ 335,029 Commercial & industrial products 133,559 81,346 214,905 Other 40,508 10,693 51,201 Total net sales $ 498,163 $ 102,972 $ 601,135 Three Months Ended September 30, 2018 Product Classes Domestic International Total Residential products $ 300,387 $ 11,531 $ 311,918 Commercial & industrial products 121,952 84,414 206,366 Other 33,793 10,311 44,104 Total net sales $ 456,132 $ 106,256 $ 562,388 Nine Months Ended September 30, 2019 Product Classes Domestic International Total Residential products $ 784,459 $ 36,774 $ 821,233 Commercial & industrial products 394,545 259,913 654,458 Other 104,344 33,369 137,713 Total net sales $ 1,283,348 $ 330,056 $ 1,613,404 Nine Months Ended September 30, 2018 Product Classes Domestic International Total Residential products $ 711,203 $ 37,587 $ 748,790 Commercial & industrial products 340,244 256,875 597,119 Other 91,040 23,111 114,151 Total net sales $ 1,142,487 $ 317,573 $ 1,460,060 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Domestic $ 121,217 $ 117,108 $ 306,723 $ 273,185 International 4,736 7,366 18,244 25,300 Total adjusted EBITDA $ 125,953 $ 124,474 $ 324,967 $ 298,485 Interest expense (10,704 ) (9,824 ) (31,428 ) (30,939 ) Depreciation and amortization (15,494 ) (11,841 ) (42,841 ) (35,124 ) Non-cash write-down and other adjustments (1) (347 ) (900 ) (673 ) (3,522 ) Non-cash share-based compensation expense (2) (3,549 ) (2,919 ) (11,477 ) (9,910 ) Loss on extinguishment of debt (3) - - - (1,332 ) Transaction costs and credit facility fees (4) (358 ) (1,767 ) (2,047 ) (2,470 ) Business optimization expenses (5) (567 ) (583 ) (809 ) (750 ) Other 27 (46 ) 556 (45 ) Income before provision for income taxes $ 94,961 $ 96,594 $ 236,248 $ 214,393 |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, 2018 Raw material $ 323,864 $ 348,980 Work-in-process 8,815 6,971 Finished goods 184,553 188,799 Total $ 517,232 $ 544,750 |
Property, Plant and Equipment [Table Text Block] | September 30, December 31, 2018 Land and improvements $ 17,753 $ 15,975 Buildings and improvements 174,226 163,161 Machinery and equipment 114,359 103,726 Dies and tools 20,947 28,198 Vehicles 3,344 2,070 Office equipment and systems 93,357 82,638 Leasehold improvements 4,076 2,137 Construction in progress 28,139 26,543 Gross property and equipment 456,201 424,448 Accumulated depreciation (152,913 ) (145,519 ) Total $ 303,288 $ 278,929 |
Note 9 - Leases (Tables)
Note 9 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 2,312 $ 7,263 Finance lease cost: Amortization of ROU assets 643 1,873 Interest on lease liabilities 554 1,696 Total lease cost $ 3,509 $ 10,832 |
Schedule of Components of Lease Assets and Liabilities [Table Text Block] | September 30, 2019 Operating Leases Operating lease ROU assets (1) $ 37,270 Operating lease liabilities - current (2) $ 7,519 Operating lease liabilities - noncurrent (3) 30,693 Total operating lease liabilities $ 38,212 Finance Leases Finance lease ROU assets, gross $ 29,353 Accumulated depreciation - finance lease ROU assets (3,326 ) Finance lease ROU assets, net (4) $ 26,027 Finance lease liabilities - current (5) $ 1,813 Finance lease liabilities - noncurrent (6) 24,158 Total finance lease liabilities $ 25,971 |
Schedule of Leases Cash Flow Information [Table Text Block] | Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,565 $ 7,951 Operating cash flows from finance leases 471 1,393 Financing cash flows from finance leases 905 2,261 ROU assets obtained in exchange for lease liabilities Operating leases 989 3,782 Finance leases 194 8,165 |
Lease, Term and Discount Rate [Table Text Block] | September 30, 2019 Weighted average remaining lease term (in years) Operating Leases 7.00 Finance Leases 14.24 Weighted average discount rate Operating Leases 5.51 % Finance Leases 7.87 % |
Operating and Finance Lease, Liability, Maturity [Table Text Block] | As of September 30, 2019 Finance Leases Operating Leases Remainder of 2019 $ 934 $ 2,481 2020 3,519 8,934 2021 3,158 6,898 2022 3,388 5,368 2023 2,655 4,581 After 2023 32,016 18,338 Total minimum lease payments 45,670 46,600 Interest component (19,699 ) (8,388 ) Present value of minimum lease payments $ 25,971 $ 38,212 |
Schedule of Future Minimum Rental Payments for Finance and Operating Leases [Table Text Block] | As of December 31, 2018 Capital Leases Operating Leases 2019 $ 2,166 $ 8,914 2020 2,477 7,575 2021 2,053 6,379 2022 1,995 4,955 2023 1,889 4,482 After 2023 18,108 18,614 Total minimum lease payments 28,688 $ 50,919 Interest component (8,517 ) Present value of minimum lease payments $ 20,171 |
Note 10 - Product Warranty Ob_2
Note 10 - Product Warranty Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 45,324 $ 38,660 $ 41,785 $ 35,422 Product warranty reserve assumed in acquisition - - 407 - Payments (7,576 ) (5,205 ) (18,867 ) (15,097 ) Provision for warranty issued 8,518 8,074 23,656 19,552 Changes in estimates for pre-existing warranties 230 (974 ) (485 ) 678 Balance at end of period $ 46,496 $ 40,555 $ 46,496 $ 40,555 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 74,517 $ 63,007 $ 68,340 $ 57,854 Deferred revenue contracts issued 5,918 4,787 18,832 15,029 Amortization of deferred revenue contracts (3,573 ) (2,873 ) (10,310 ) (7,962 ) Balance at end of period $ 76,862 $ 64,921 $ 76,862 $ 64,921 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Remainder of 2019 $ 3,704 2020 15,250 2021 15,678 2022 13,831 2023 10,535 After 2023 17,864 Total $ 76,862 |
Product Warranty Obligations Included In Consolidated Balance Sheet [Table Text Block] | September 30, December 31, 2019 2018 Product warranty liability Current portion - other accrued liabilities $ 27,109 $ 25,396 Long-term portion - other long-term liabilities 19,387 16,389 Total $ 46,496 $ 41,785 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 15,924 $ 13,646 Long-term portion - other long-term liabilities 60,938 54,694 Total $ 76,862 $ 68,340 |
Note 12 - Credit Agreements (Ta
Note 12 - Credit Agreements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Short-term Debt [Table Text Block] | September 30, December 31, 2019 2018 ABL facility $ 28,479 $ 18,459 Other lines of credit 38,506 27,124 Total $ 66,985 $ 45,583 |
Schedule of Long-term Debt Instruments [Table Text Block] | September 30, December 31, 2019 2018 Term loan $ 879,000 $ 879,000 Original issue discount and deferred financing costs (18,843 ) (22,440 ) Finance lease obligation 25,971 20,171 Other 741 1,642 Total 886,869 878,373 Less: current portion of debt 741 1,075 Less: current portion of finance lease obligation 1,813 902 Total $ 884,315 $ 876,396 |
Note 14 - Earnings Per Share (T
Note 14 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator Net income attributable to Generac Holdings Inc. $ 75,574 $ 75,776 $ 182,393 $ 162,682 Redeemable noncontrolling interest redemption value adjustment (1,485 ) (6,912 ) 191 (16,882 ) Net income attributable to common shareholders $ 74,089 $ 68,864 $ 182,584 $ 145,800 Denominator Weighted average shares, basic 61,973,447 61,579,564 61,878,500 61,659,817 Dilutive effect of stock compensation awards (1) 797,145 640,734 640,705 606,323 Diluted shares 62,770,592 62,220,298 62,519,205 62,266,140 Net income attributable to common shareholders per share Basic $ 1.20 $ 1.12 $ 2.95 $ 2.36 Diluted $ 1.18 $ 1.11 $ 2.92 $ 2.34 |
Note 2 - Acquisitions (Details
Note 2 - Acquisitions (Details Textual) - USD ($) $ in Thousands | Apr. 26, 2019 | Mar. 12, 2019 | Jun. 01, 2018 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 120,863 | $ 71,926 | |||||
Goodwill, Ending Balance | $ 811,914 | 811,914 | $ 764,655 | ||||
Pika [Member] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 49,068 | ||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 55,986 | ||||||
Goodwill, Ending Balance | $ 23,286 | ||||||
Neurio [Member] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 59,071 | ||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 58,511 | ||||||
Goodwill, Ending Balance | 24,011 | ||||||
Business Combination, Liabilities Arising from Contingencies, Amount Recognized | $ 7,922 | ||||||
Selmec [Member] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 79,972 | ||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 79,826 | ||||||
Goodwill, Ending Balance | 46,196 | ||||||
Business Combination, Liabilities Arising from Contingencies, Amount Recognized | $ 14,902 | ||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 4,814 | $ 32,018 |
Note 3 - Redeemable Noncontro_3
Note 3 - Redeemable Noncontrolling Interest (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | |
Feb. 28, 2019 | Mar. 01, 2016 | |
Pramac [Member] | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 35.00% | |
Pramac [Member] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 65.00% | |
Redeemable Noncontrolling Interest, Equity, Fair Value, Total | $ 34,253 | |
Noncontrolling Interest Agreement, Extension of Term | 5 years |
Note 3 - Redeemable Noncontro_4
Note 3 - Redeemable Noncontrolling Interest - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Redemption value adjustment | $ (1,485) | $ (6,912) | $ 191 | $ (16,882) |
Redeemable Noncontrolling Interest [Member] | ||||
Balance at beginning of period | 59,117 | 53,035 | 61,004 | 43,929 |
Net income | (563) | 519 | (388) | 1,341 |
Foreign currency translation | (3,475) | (569) | (3,861) | (2,255) |
Redemption value adjustment | 1,485 | 6,912 | (191) | 16,882 |
Balance at end of period | $ 56,564 | $ 59,897 | $ 56,564 | $ 59,897 |
Note 4 - Derivative Instrumen_3
Note 4 - Derivative Instruments and Hedging Activities (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2014 | Oct. 31, 2013 | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017 | Dec. 31, 2018USD ($) | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ (2,721) | $ 1,621 | $ (14,898) | $ 10,403 | ||||
Derivative Assets (Liabilities), Net Fair Value of Derivative Contracts, Excluding Impact of Credit Risk | 12,498 | 12,498 | $ 8,220 | |||||
Interest Rate Swap [Member] | ||||||||
Number of New Contracts Entered | 1 | 2 | 20 | |||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ (2,721) | $ 1,626 | $ (14,898) | $ 10,403 |
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Commodity Contract [Member] | ||
Fair Value of Derivatives | $ (172) | $ (160) |
Foreign Exchange Contract [Member] | ||
Fair Value of Derivatives | (302) | (117) |
Interest Rate Swap [Member] | ||
Fair Value of Derivatives | $ (11,826) | $ 8,307 |
Note 5 - Fair Value Measureme_2
Note 5 - Fair Value Measurements (Details Textual) $ in Thousands | Sep. 30, 2019USD ($) |
Long-term Debt, Total | $ 861,231 |
Long-term Debt, Fair Value | $ 881,198 |
Note 6 - Accumulated Other Co_3
Note 6 - Accumulated Other Comprehensive Loss (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ (3,677) | $ 2,197 | $ (20,132) | $ 14,057 |
Other Comprehensive Income (Loss) before Reclassifications, Tax, Total | $ 956 | $ (571) | $ 5,234 | $ (3,654) |
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 | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |||||
Balance | $ 871,011 | $ 617,255 | $ 761,261 | $ 554,320 | ||||
Balance | 939,215 | 698,635 | 939,215 | 698,635 | ||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||||
Balance | (16,673) | (17,335) | (18,832) | (12,856) | ||||
Other comprehensive loss before reclassifications | (9,811) | 5,717 | (7,652) | 1,238 | ||||
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 | ||||
Net current-period other comprehensive loss | (9,811) | 5,717 | (7,652) | 1,238 | ||||
Balance | (26,484) | (11,618) | (26,484) | (11,618) | ||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||||
Balance | (10,541) | (10,978) | (10,541) | (10,978) | ||||
Other comprehensive loss before reclassifications | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 | ||||
Net current-period other comprehensive loss | 0 | 0 | 0 | 0 | ||||
Balance | (10,541) | (10,978) | (10,541) | (10,978) | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||
Balance | (6,617) | 11,413 | 5,560 | 2,636 | ||||
Other comprehensive loss before reclassifications | (2,721) | [1] | 1,626 | [2] | (14,898) | [3] | 10,403 | [4] |
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 | ||||
Net current-period other comprehensive loss | (2,721) | 1,626 | (14,898) | 10,403 | ||||
Balance | (9,338) | 13,039 | (9,338) | 13,039 | ||||
AOCI Attributable to Parent [Member] | ||||||||
Balance | (33,831) | (16,900) | (23,813) | (21,198) | ||||
Other comprehensive loss before reclassifications | (12,532) | 7,343 | (22,550) | 11,641 | ||||
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 | ||||
Net current-period other comprehensive loss | (12,532) | 7,343 | (22,550) | 11,641 | ||||
Balance | $ (46,363) | $ (9,557) | $ (46,363) | $ (9,557) | ||||
[1] | Represents unrealized losses of $(3,677), net of tax effect of $956, for the three months ended September 30, 2019. | |||||||
[2] | Represents unrealized gains of $2,197, net of tax effect of $(571), for the three months ended September 30, 2018. | |||||||
[3] | Represents unrealized losses of $(20,132), net of tax effect of $5,234, for the nine months ended September 30, 2019. | |||||||
[4] | Represents unrealized gains of $14,057, net of tax effect of $(3,654), for the nine months ended September 30, 2018. |
Note 7 - Segment Reporting (Det
Note 7 - Segment Reporting (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018 | |
Number of Reportable Segments | 2 | ||||
Gross Profit, Total | $ 217,517 | $ 200,334 | $ 575,530 | $ 520,734 | |
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | UNITED STATES | |||||
Concentration Risk, Percentage | 78.00% | 78.00% | 75.00% | 74.00% | |
Geographic Concentration Risk [Member] | Net Assets, Geographic Area [Member] | UNITED STATES | |||||
Concentration Risk, Percentage | 81.00% | 80.00% | |||
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | $ 2,873 | $ 7,962 | |||
Gross Profit, Total | $ 2,449 | $ 6,604 |
Note 7 - Segment Reporting - Ne
Note 7 - Segment Reporting - Net Sales by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales | $ 601,135 | $ 562,388 | $ 1,613,404 | $ 1,460,060 |
Residential Power Products [Member] | ||||
Net sales | 335,029 | 311,918 | 821,233 | 748,790 |
Commercial and Industrial Power Products [Member] | ||||
Net sales | 214,905 | 206,366 | 654,458 | 597,119 |
Other Products and Services [Member] | ||||
Net sales | 51,201 | 44,104 | 137,713 | 114,151 |
Domestic [Member] | ||||
Net sales | 498,163 | 456,132 | 1,283,348 | 1,142,487 |
Domestic [Member] | Residential Power Products [Member] | ||||
Net sales | 324,096 | 300,387 | 784,459 | 711,203 |
Domestic [Member] | Commercial and Industrial Power Products [Member] | ||||
Net sales | 133,559 | 121,952 | 394,545 | 340,244 |
Domestic [Member] | Other Products and Services [Member] | ||||
Net sales | 40,508 | 33,793 | 104,344 | 91,040 |
International [Member] | ||||
Net sales | 102,972 | 106,256 | 330,056 | 317,573 |
International [Member] | Residential Power Products [Member] | ||||
Net sales | 10,933 | 11,531 | 36,774 | 37,587 |
International [Member] | Commercial and Industrial Power Products [Member] | ||||
Net sales | 81,346 | 84,414 | 259,913 | 256,875 |
International [Member] | Other Products and Services [Member] | ||||
Net sales | $ 10,693 | $ 10,311 | $ 33,369 | $ 23,111 |
Note 7 - Segment Reporting - Se
Note 7 - Segment Reporting - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Total adjusted EBITDA | $ 125,953 | $ 124,474 | $ 324,967 | $ 298,485 | |
Interest expense | (10,704) | (9,824) | (31,428) | (30,939) | |
Depreciation and amortization | (15,494) | (11,841) | (42,841) | (35,124) | |
Non-cash write-down and other adjustments (1) | [1] | (347) | (900) | (673) | (3,522) |
Non-cash share-based compensation expense (2) | [2] | (3,549) | (2,919) | (11,477) | (9,910) |
Loss on extinguishment of debt | [3] | 0 | 0 | 0 | (1,332) |
Transaction costs and credit facility fees (4) | [4] | (358) | (1,767) | (2,047) | (2,470) |
Business optimization expenses (5) | [5] | (567) | (583) | (809) | (750) |
Other | 27 | (46) | 556 | (45) | |
Income before provision for income taxes | 94,961 | 96,594 | 236,248 | 214,393 | |
Domestic [Member] | |||||
Total adjusted EBITDA | 121,217 | 117,108 | 306,723 | 273,185 | |
International [Member] | |||||
Total adjusted EBITDA | $ 4,736 | $ 7,366 | $ 18,244 | $ 25,300 | |
[1] | Includes certain foreign currency and purchase accounting related adjustments, gains/losses on disposal of assets and unrealized mark-to-market adjustments on commodity contracts. | ||||
[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 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] | Represents severance and other non-recurring restructuring charges related to the consolidation of certain of our facilities. |
Note 8 - Balance Sheet Detail_2
Note 8 - Balance Sheet Details (Details Textual) $ in Thousands | Dec. 31, 2018USD ($) |
Capital Leases, Balance Sheet, Assets by Major Class, Net, Total | $ 20,158 |
Note 8 - Balance Sheet Detail_3
Note 8 - Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Raw material | $ 323,864 | $ 348,980 |
Work-in-process | 8,815 | 6,971 |
Finished goods | 184,553 | 188,799 |
Total | $ 517,232 | $ 544,750 |
Note 8 - Balance Sheet Detail_4
Note 8 - Balance Sheet Details - Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property and equipment, gross | $ 456,201 | $ 424,448 |
Accumulated depreciation | (152,913) | (145,519) |
Total | 303,288 | 278,929 |
Land and Land Improvements [Member] | ||
Property and equipment, gross | 17,753 | 15,975 |
Building and Building Improvements [Member] | ||
Property and equipment, gross | 174,226 | 163,161 |
Machinery and Equipment [Member] | ||
Property and equipment, gross | 114,359 | 103,726 |
Dies and Tools [Member] | ||
Property and equipment, gross | 20,947 | 28,198 |
Vehicles [Member] | ||
Property and equipment, gross | 3,344 | 2,070 |
Office Equipment [Member] | ||
Property and equipment, gross | 93,357 | 82,638 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 4,076 | 2,137 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 28,139 | $ 26,543 |
Note 9 - Leases (Details Textua
Note 9 - Leases (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Jan. 01, 2019 | ||
Operating Lease, Right-of-Use Asset | [1] | $ 37,270 | |
Operating Lease, Liability, Total | $ 38,212 | ||
Accounting Standards Update 2016-02 [Member] | |||
Operating Lease, Right-of-Use Asset | $ 42,024 | ||
Operating Lease, Liability, Total | 42,056 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | ||
Maximum [Member] | |||
Lessee, Operating Lease and Finance Lease, Remaining Term of Contract | 20 years | ||
Lessee, Operating Lease, Renewal Term | 10 years | ||
[1] | Recorded in the operating lease and other assets line |
Note 9 - Leases - Leases Cost (
Note 9 - Leases - Leases Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Operating lease cost | $ 2,312 | $ 7,263 |
Amortization of ROU assets | 643 | 1,873 |
Interest on lease liabilities | 554 | 1,696 |
Total lease cost | $ 3,509 | $ 10,832 |
Note 9 - Leases - Supplement Ba
Note 9 - Leases - Supplement Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | ||
Operating lease ROU assets (1) | [1] | $ 37,270 | ||
Operating lease liabilities - current (2) | [2] | 7,519 | ||
Operating lease liabilities - noncurrent (3) | [3] | 30,693 | ||
Total operating lease liabilities | 38,212 | |||
Finance lease ROU assets, gross | 29,353 | |||
Accumulated depreciation - finance lease ROU assets | (3,326) | |||
Finance lease ROU assets, net (4) | [4] | 26,027 | ||
Finance lease liabilities - current (5) | 1,813 | [5] | $ 902 | |
Finance lease liabilities - noncurrent (6) | [6] | 24,158 | ||
Total finance lease liabilities | $ 25,971 | $ 20,171 | ||
[1] | Recorded in the operating lease and other assets line | |||
[2] | Recorded in the other accrued liabilities line | |||
[3] | Recorded in the operating lease and other long-term liabilities line | |||
[4] | Recorded in the property and equipment, net line | |||
[5] | Recorded in the current portion of long-term borrowings and finance lease obligations line | |||
[6] | Recorded in the long-term borrowings and finance lease obligations line |
Note 9 - Leases - Supplement Ca
Note 9 - Leases - Supplement Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Operating cash flows from operating leases | $ 2,565 | $ 7,951 |
Operating cash flows from finance leases | 471 | 1,393 |
Financing cash flows from finance leases | 905 | 2,261 |
Operating leases | 989 | 3,782 |
Finance leases | $ 194 | $ 8,165 |
Note 9 - Leases - Weighted Aver
Note 9 - Leases - Weighted Average Remaining Lease Term and Discount Rate Information (Details) | Sep. 30, 2019 |
Operating Leases (Year) | 7 years |
Finance Leases (Year) | 14 years 2 months 26 days |
Operating Leases | 5.51% |
Finance Leases | 7.87% |
Note 9 - Leases - Maturities of
Note 9 - Leases - Maturities of Lease liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Remainder of 2019, finance leases | $ 934 | |
Remainder of 2019, operating leases | 2,481 | |
2020, finance leases | 3,519 | |
2020, operating leases | 8,934 | |
2021, finance leases | 3,158 | |
2021, operating leases | 6,898 | |
2022, finance leases | 3,388 | |
2022, operating leases | 5,368 | |
2023, finance leases | 2,655 | |
2023, operating leases | 4,581 | |
After 2023, finance leases | 32,016 | |
After 2023, operating leases | 18,338 | |
Total minimum lease payments, finance leases | 45,670 | |
Total minimum lease payments, operating leases | 46,600 | |
Interest component | (19,699) | |
Interest component | (8,388) | |
Present value of minimum lease payments, finance leases | 25,971 | $ 20,171 |
Operating Lease, Liability, Total | $ 38,212 |
Note 9 - Leases - Minimum Renta
Note 9 - Leases - Minimum Rental Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
2019, capital leases | $ 2,166 |
2019, operating leases | 8,914 |
2020, capital leases | 2,477 |
2020, operating leases | 7,575 |
2021, capital leases | 2,053 |
2021, operating leases | 6,379 |
2022, capital leases | 1,995 |
2022, operating leases | 4,955 |
2023, capital leases | 1,889 |
2023, operating leases | 4,482 |
After 2023, capital leases | 18,108 |
After 2023, operating leases | 18,614 |
Total minimum lease payments | 28,688 |
Total minimum lease payments, operating leases | 50,919 |
Interest component | (8,517) |
Present value of minimum lease payments | $ 20,171 |
Note 10 - Product Warranty Ob_3
Note 10 - Product Warranty Obligations 1 (Details Textual) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum [Member] | |
Extended Warranty Term | 5 years |
Maximum [Member] | |
Extended Warranty Term | 10 years |
Note 10 - Product Warranty Ob_4
Note 10 - Product Warranty Obligations 2 (Details Textual) | Sep. 30, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Note 10 - Product Warranty Ob_5
Note 10 - Product Warranty Obligations - Reconciliation of Product Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Balance at beginning of period | $ 45,324 | $ 38,660 | $ 41,785 | $ 35,422 |
Product warranty reserve assumed in acquisition | 0 | 0 | 407 | 0 |
Payments | (7,576) | (5,205) | (18,867) | (15,097) |
Provision for warranty issued | 8,518 | 8,074 | 23,656 | 19,552 |
Changes in estimates for pre-existing warranties | 230 | (974) | (485) | 678 |
Balance at end of period | 46,496 | 40,555 | 46,496 | 40,555 |
Balance at beginning of period | 74,517 | 63,007 | 68,340 | 57,854 |
Deferred revenue contracts issued | 5,918 | 4,787 | 18,832 | 15,029 |
Amortization of deferred revenue contracts | (3,573) | (2,873) | (10,310) | (7,962) |
Balance at end of period | $ 76,862 | $ 64,921 | $ 76,862 | $ 64,921 |
Note 10 - Product Warranty Ob_6
Note 10 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Revenue performance obligation, expected timing | $ 76,862 |
Note 10 - Product Warranty Ob_7
Note 10 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties 2 (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Revenue performance obligation, expected timing | $ 76,862 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue performance obligation, expected timing | 3,704 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue performance obligation, expected timing | 15,250 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue performance obligation, expected timing | 15,678 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue performance obligation, expected timing | 13,831 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue performance obligation, expected timing | 10,535 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue performance obligation, expected timing | $ 17,864 |
Note 10 - Product Warranty Ob_8
Note 10 - Product Warranty Obligations - Deferred Product Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Current portion - other accrued liabilities | $ 27,109 | $ 25,396 | ||||
Long-term portion - other long-term liabilities | 19,387 | 16,389 | ||||
Total | 46,496 | $ 45,324 | 41,785 | $ 40,555 | $ 38,660 | $ 35,422 |
Current portion - other accrued liabilities | 15,924 | 13,646 | ||||
Long-term portion - other long-term liabilities | 60,938 | 54,694 | ||||
Total | $ 76,862 | $ 74,517 | $ 68,340 | $ 64,921 | $ 63,007 | $ 57,854 |
Note 11 - Contract Balances (De
Note 11 - Contract Balances (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Contract with Customer, Liability, Current | $ 7,814 | $ 14,174 |
Contract with Customer, Liability, Revenue Recognized | $ 9,166 |
Note 12 - Credit Agreements (De
Note 12 - Credit Agreements (Details Textual) $ in Thousands | May 31, 2015 | May 31, 2013USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Short-term Debt, Total | $ 66,985 | $ 45,583 | |||
ABL Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | ||||
Long-term Line of Credit, Total | 28,479 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 271,171 | ||||
Amended ABL Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000 | ||||
Base Rate [Member] | ABL Revolving Credit Facility [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | 0.375% | |||
Adjusted LIBOR Rate [Member] | ABL Revolving Credit Facility [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | 1.375% | |||
Term Loan [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | ||||
Uncommitted Incremental Term Loan Facility | $ 300,000 | ||||
Secured Leverage Ratio | 1.61 | ||||
Term Loan [Member] | Maximum [Member] | |||||
Threshold for Secured Leverage Ratio Excess Cash Flow Payment Requirement | 3.75 | ||||
Term Loan [Member] | Base Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 0.75% | |||
Term Loan [Member] | Adjusted LIBOR Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | 1.75% | |||
Term Loan [Member] | LIBOR Floor Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
Note 12 - Credit Agreements - S
Note 12 - Credit Agreements - Short-term Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Short-term borrowings | $ 66,985 | $ 45,583 |
ABL Revolving Credit Facility [Member] | ||
Short-term borrowings | 28,479 | 18,459 |
Other Lines of Credit [Member] | ||
Short-term borrowings | $ 38,506 | $ 27,124 |
Note 12 - Credit Agreements - L
Note 12 - Credit Agreements - Long-term Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Term loan | $ 879,000 | $ 879,000 | |
Original issue discount and deferred financing costs | (18,843) | (22,440) | |
Total finance lease liabilities | 25,971 | 20,171 | |
Other | 741 | 1,642 | |
Total | 886,869 | 878,373 | |
Less: current portion of debt | 741 | 1,075 | |
Less: current portion of finance lease obligation | 1,813 | [1] | 902 |
Total | $ 884,315 | $ 876,396 | |
[1] | Recorded in the current portion of long-term borrowings and finance lease obligations line |
Note 13 - Stock Repurchase Pr_2
Note 13 - Stock Repurchase Program (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 50 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Oct. 31, 2016 | Aug. 31, 2015 | |
Stock Repurchase Program, Authorized Amount | $ 250,000 | $ 250,000 | $ 200,000 | |||
Payments for Repurchase of Common Stock | $ 0 | $ 25,656 | $ 305,547 | |||
Treasury Stock [Member] | ||||||
Shares Acquired Under Stock Repurchases Program, Shares | 0 | 0 | 560,000 | 8,676,706 |
Note 14 - Earnings Per Share (D
Note 14 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 38,900 | 0 | 48,200 |
Note 14 - Earnings Per Share -
Note 14 - Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Net income attributable to Generac Holdings Inc. | $ 75,574 | $ 75,776 | $ 182,393 | $ 162,682 | |
Redeemable noncontrolling interest redemption value adjustment | (1,485) | (6,912) | 191 | (16,882) | |
Net income attributable to common shareholders | $ 74,089 | $ 68,864 | $ 182,584 | $ 145,800 | |
Weighted average shares, basic (in shares) | 61,973,447 | 61,579,564 | 61,878,500 | 61,659,817 | |
Dilutive effect of stock compensation awards (in shares) | [1] | 797,145 | 640,734 | 640,705 | 606,323 |
Diluted shares (in shares) | 62,770,592 | 62,220,298 | 62,519,205 | 62,266,140 | |
Basic (in dollars per share) | $ 1.20 | $ 1.12 | $ 2.95 | $ 2.36 | |
Diluted (in dollars per share) | $ 1.18 | $ 1.11 | $ 2.92 | $ 2.34 | |
[1] | Excludes approximately 38,900 and 48,200 stock options for the three and nine months ended September 30, 2018, respectively, as the impact of such awards was anti-dilutive. There were no awards with an anti-dilutive impact for the three and nine months ended September 30, 2019. |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 22.80% | 23.30% |
Note 16 - Benefit Plans (Detail
Note 16 - Benefit Plans (Details Textual) $ in Thousands | Sep. 30, 2019USD ($) |
Parent [Member] | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax, Total | $ (10,541) |
Note 17 - Commitments and Con_2
Note 17 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Amount Financed by Dealers | $ 52,217 | $ 47,200 |