Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 29, 2020 | |
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 | 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
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, $0.01 par value | |
Trading Symbol | GNRC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 62,841,107 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 513,944 | $ 322,883 |
Accounts receivable, less allowance for credit losses | 398,240 | 319,538 |
Inventories | 532,952 | 522,024 |
Prepaid expenses and other assets | 35,200 | 31,384 |
Total current assets | 1,480,336 | 1,195,829 |
Property and equipment, net | 321,360 | 316,976 |
Customer lists, net | 47,702 | 55,552 |
Patents and technology, net | 73,260 | 85,546 |
Other intangible assets, net | 9,216 | 8,259 |
Tradenames, net | 145,977 | 148,377 |
Goodwill | 815,624 | 805,284 |
Deferred income taxes | 3,596 | 2,933 |
Operating lease and other assets | 77,004 | 46,913 |
Total assets | 2,974,075 | 2,665,669 |
Current liabilities: | ||
Short-term borrowings | 44,800 | 58,714 |
Accounts payable | 272,745 | 261,977 |
Accrued wages and employee benefits | 52,915 | 41,361 |
Other accrued liabilities | 182,377 | 132,629 |
Current portion of long-term borrowings and finance lease obligations | 3,421 | 2,383 |
Total current liabilities | 556,258 | 497,064 |
Long-term borrowings and finance lease obligations | 841,341 | 837,767 |
Deferred income taxes | 105,520 | 96,328 |
Operating lease and other long-term liabilities | 177,515 | 140,432 |
Total liabilities | 1,680,634 | 1,571,591 |
Redeemable noncontrolling interests | 63,545 | 61,227 |
Stockholders’ equity: | ||
Common stock, par value $0.01, 500,000,000 shares authorized, 72,011,902 and 71,667,726 shares issued at September 30, 2020 and December 31, 2019, respectively | 720 | 717 |
Additional paid-in capital | 518,610 | 498,866 |
Treasury stock, at cost | (331,513) | (324,551) |
Excess purchase price over predecessor basis | (202,116) | (202,116) |
Retained earnings | 1,306,530 | 1,084,383 |
Accumulated other comprehensive loss | (62,039) | (24,917) |
Stockholders’ equity attributable to Generac Holdings Inc. | 1,230,192 | 1,032,382 |
Noncontrolling interests | (296) | 469 |
Total stockholders' equity | 1,229,896 | 1,032,851 |
Total liabilities and stockholders’ equity | $ 2,974,075 | $ 2,665,669 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
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) | 72,011,902 | 71,667,726 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net sales | $ 701,355 | $ 601,135 | $ 1,724,118 | $ 1,613,404 |
Costs of goods sold | 425,206 | 383,618 | 1,066,666 | 1,037,874 |
Gross profit | 276,149 | 217,517 | 657,452 | 575,530 |
Operating expenses: | ||||
Selling and service | 60,901 | 59,356 | 178,566 | 158,954 |
Research and development | 20,658 | 17,603 | 58,762 | 48,906 |
General and administrative | 31,061 | 27,596 | 88,732 | 80,016 |
Amortization of intangibles | 7,892 | 7,406 | 23,340 | 19,999 |
Total operating expenses | 120,512 | 111,961 | 349,400 | 307,875 |
Income from operations | 155,637 | 105,556 | 308,052 | 267,655 |
Other (expense) income: | ||||
Interest expense | (8,096) | (10,704) | (25,081) | (31,428) |
Investment income | 301 | 523 | 1,921 | 1,889 |
Other, net | (557) | (414) | (2,687) | (1,868) |
Total other expense, net | (8,352) | (10,595) | (25,847) | (31,407) |
Income before provision for income taxes | 147,285 | 94,961 | 282,205 | 236,248 |
Provision for income taxes | 32,050 | 20,064 | 59,967 | 53,876 |
Net income | 115,235 | 74,897 | 222,238 | 182,372 |
Net income (loss) attributable to noncontrolling interests | 265 | (677) | (3,337) | (21) |
Net income attributable to Generac Holdings Inc. | $ 114,970 | $ 75,574 | $ 225,575 | $ 182,393 |
Net income attributable to Generac Holdings Inc. per common share - basic: (in dollars per share) | $ 1.86 | $ 1.20 | $ 3.59 | $ 2.95 |
Weighted average common shares outstanding - basic: (in shares) | 62,353,473 | 61,973,447 | 62,244,872 | 61,878,500 |
Net income attributable to Generac Holdings Inc. per common share - diluted: (in dollars per share) | $ 1.82 | $ 1.18 | $ 3.51 | $ 2.92 |
Weighted average common shares outstanding - diluted: (in shares) | 63,761,380 | 62,770,592 | 63,546,132 | 62,519,205 |
Comprehensive income attributable to Generac Holdings Inc. | $ 123,887 | $ 64,904 | $ 187,548 | $ 161,828 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Excess Purchase Price over Predecessor Basis [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 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 | |||
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) | |||
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 attributable to Generac Holdings Inc. | 0 | 0 | 0 | 0 | 182,393 | 0 | 182,393 | 182,393 | ||||
Net income | 372 | |||||||||||
Net income | 182,765 | |||||||||||
Acquisition of business | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4,125 | 4,125 | |||
Cash dividends paid to noncontrolling interest of subsidiary | $ 0 | 0 | $ 0 | 0 | 0 | 0 | 0 | (285) | (285) | |||
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 | |||
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) | |||
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 attributable to Generac Holdings Inc. | $ 0 | 0 | $ 0 | 0 | 75,574 | 0 | 75,574 | 75,574 | ||||
Net income | (109) | |||||||||||
Net income | 75,465 | |||||||||||
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 Dec. 31, 2019 | 71,667,726 | (9,103,013) | ||||||||||
Balance at Dec. 31, 2019 | $ (1,147) | $ (1,147) | $ (1,147) | $ 717 | 498,866 | $ (324,551) | (202,116) | 1,084,383 | (24,917) | 1,032,382 | 469 | 1,032,851 |
Unrealized gain (loss) on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | (18,406) | (18,406) | 0 | (18,406) | |||
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | (18,716) | (18,716) | (27) | (18,743) | |||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 344,176 | 0 | ||||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 3 | 5,417 | $ 0 | 0 | 0 | 0 | 5,420 | 0 | 5,420 | |||
Net share settlement of restricted stock awards (in shares) | 0 | (67,721) | ||||||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (6,962) | 0 | 0 | 0 | (6,962) | 0 | (6,962) | |||
Share-based compensation | 0 | 14,327 | 0 | 0 | 0 | 0 | 14,327 | 0 | 14,327 | |||
Redemption value adjustment | 0 | 0 | 0 | 0 | (2,281) | 0 | (2,281) | 0 | (2,281) | |||
Net income attributable to Generac Holdings Inc. | $ 0 | 0 | $ 0 | 0 | 225,575 | 0 | 225,575 | 225,575 | ||||
Net income | (738) | |||||||||||
Net income | 224,837 | |||||||||||
Balance (in shares) at Sep. 30, 2020 | 72,011,902 | (9,170,734) | ||||||||||
Balance at Sep. 30, 2020 | $ 720 | 518,610 | $ (331,513) | (202,116) | 1,306,530 | (62,039) | 1,230,192 | (296) | 1,229,896 | |||
Balance (in shares) at Jun. 30, 2020 | 71,960,067 | (9,170,162) | ||||||||||
Balance at Jun. 30, 2020 | $ 720 | 512,318 | $ (331,415) | (202,116) | 1,190,749 | (72,526) | 1,097,730 | (455) | 1,097,275 | |||
Unrealized gain (loss) on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | 1,003 | 1,003 | 0 | 1,003 | |||
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | 9,484 | 9,484 | (25) | 9,459 | |||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 51,835 | 0 | ||||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 0 | 1,939 | $ 0 | 0 | 0 | 0 | 1,939 | 0 | 1,939 | |||
Net share settlement of restricted stock awards (in shares) | 0 | (572) | ||||||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (98) | 0 | 0 | 0 | (98) | 0 | (98) | |||
Share-based compensation | 0 | 4,353 | 0 | 0 | 0 | 0 | 4,353 | 0 | 4,353 | |||
Redemption value adjustment | 0 | 0 | 0 | 0 | 811 | 0 | 811 | 0 | 811 | |||
Net income attributable to Generac Holdings Inc. | $ 0 | 0 | $ 0 | 0 | 114,970 | 0 | 114,970 | 114,970 | ||||
Net income | 184 | |||||||||||
Net income | 115,154 | |||||||||||
Balance (in shares) at Sep. 30, 2020 | 72,011,902 | (9,170,734) | ||||||||||
Balance at Sep. 30, 2020 | $ 720 | $ 518,610 | $ (331,513) | $ (202,116) | $ 1,306,530 | $ (62,039) | $ 1,230,192 | $ (296) | $ 1,229,896 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - AOCI Attributable to Parent [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Unrealized gain (loss) on interest rate swaps, tax | $ 339 | $ (956) | $ (6,217) | $ (5,234) |
Unrealized gain (loss) on interest rate swaps, tax | $ (339) | $ 956 | $ 6,217 | $ 5,234 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Operating activities | |||
Net income | $ 222,238 | $ 182,372 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 26,747 | 22,842 | |
Amortization of intangible assets | 23,340 | 19,999 | |
Amortization of original issue discount and deferred financing costs | 1,940 | 3,597 | |
Deferred income taxes | 15,433 | 19,514 | |
Share-based compensation expense | [1] | 14,327 | 11,477 |
Other non-cash charges | 6,414 | 557 | |
Net changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (85,474) | (45,543) | |
Inventories | (14,604) | 27,190 | |
Other assets | 2,543 | 1,488 | |
Accounts payable | 11,624 | (83,174) | |
Accrued wages and employee benefits | 11,793 | (7,517) | |
Other accrued liabilities | 38,211 | (17,092) | |
Excess tax benefits from equity awards | (6,222) | (1,908) | |
Net cash provided by operating activities | 268,310 | 133,802 | |
Investing activities | |||
Proceeds from sale of property and equipment | 26 | 83 | |
Proceeds from beneficial interests in securitization transactions | 1,998 | 2,036 | |
Expenditures for property and equipment | (33,940) | (45,447) | |
Acquisition of business, net of cash acquired | (22,815) | (120,863) | |
Net cash used in investing activities | (54,731) | (164,191) | |
Financing activities | |||
Proceeds from short-term borrowings | 198,087 | 68,802 | |
Proceeds from long-term borrowings | 297 | 0 | |
Repayments of short-term borrowings | (210,854) | (45,437) | |
Repayments of long-term borrowings and finance lease obligations | (3,584) | (3,110) | |
Payment of contingent acquisition consideration | (4,000) | 0 | |
Cash dividends paid to noncontrolling interest of subsidiary | 0 | (285) | |
Taxes paid related to equity awards | (13,533) | (5,749) | |
Proceeds from exercise of stock options | 11,991 | 7,957 | |
Net cash (used in) provided by financing activities | (21,596) | 22,178 | |
Effect of exchange rate changes on cash and cash equivalents | (922) | (233) | |
Net increase (decrease) in cash and cash equivalents | 191,061 | (8,444) | |
Cash and cash equivalents at beginning of period | 322,883 | 224,482 | |
Cash and cash equivalents at end of period | $ 513,944 | $ 216,038 | |
[1] | Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods. |
Note 1 - Description of Busines
Note 1 - Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019 ● In February 2019, 2010 ● In March 2019, 2005 ● In April 2019, 2010 ● In July 2020, ● In September 2020, 2009 zero 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 September 30, 2020 three nine September 30, 2020 2019 three nine September 30, 2020 2019 nine September 30, 2020 2019 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, 2019 Goodwill and Other Indefinite-Lived Intangible Assets The Company applies a fair value-based impairment test to the carrying value of goodwill and other indefinite-lived intangible assets on an annual basis (as of October 31) may 2, 8 2019 10 October 31, 2019. Given the uncertainty within the global markets caused by the onset of the COVID- 19 first 2020, March 31, 2020. 19 Based on the interim impairment assessment as of March 31, 2020, not may The Company did not three June 30, 2020 three September 30, 2020 Adoption of 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 not not not Recently Adopted Accounting Standards On January 1, 2020, 2016 13, Financial Instruments – Credit Losses (Topic 326 Measurement of Credit Losses on Financial Instruments no 2016 13. January 1, 2020 326 9 On January 1, 2020, 2020 04, Reference Rate Reform. |
Note 2 - Acquisitions
Note 2 - Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2 . Acquisitions Acquisition of Pika On April 26, 2019, The Company finalized the Pika purchase price allocation during the first 2020 not not not Acquisition of Neurio On March 12, 2019, third 2019. The Company finalized the Neurio purchase price allocation during the first 2020 not not Other Acquisitions In February 2019, In July 2020, In September 2020, The combined purchase price for these acquisitions was $24,070 and was funded solely through cash on hand. The accompanying condensed consolidated financial statements include the results of the acquired businesses since the dates of acquisition. Pro forma financial information and allocation of the purchase price are not not |
Note 3 - Redeemable Noncontroll
Note 3 - Redeemable Noncontrolling Interest | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Redeemable Noncontrolling Interest [Text Block] | 3. On March 1, 2016, February 2019, five five no April 1, 2021. On February 1, 2019, five may five For both transactions, the redeemable noncontrolling interest is recorded at the greater of the initial fair value, increased or decreased for the noncontrolling interests’ share of comprehensive income (loss), or the estimated redemption value, with any adjustments to the redemption value impacting retained earnings, but not 14, Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance at beginning of period $ 61,019 $ 59,117 $ 61,227 $ 61,004 Net income (loss) 80 (563 ) (2,601 ) (388 ) Foreign currency translation 3,257 (3,475 ) 2,638 (3,861 ) Redemption value adjustment (811 ) 1,485 2,281 (191 ) Balance at end of period $ 63,545 $ 56,564 $ 63,545 $ 56,564 |
Note 4 - Derivative Instruments
Note 4 - Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 4 . Derivative Instruments and Hedging Activities The Company records all derivatives in accordance with ASC 815, Derivatives and Hedging not The Company periodically utilizes commodity derivatives and foreign currency forward purchase and sales contracts in the normal course of business. Because these contracts do not not Interest Rate Swaps In 2017, twenty twelve September 30, 2020 December 2019, March 2020, three September 30, 2020 three nine September 30, 2020 three nine September 30, 2019 Fair Value The following table presents the fair value of all of the Company’s derivatives: September 30, 2020 December 31, 201 9 Commodity contracts $ 1,522 $ 6 Foreign currency contracts (3 ) 31 Interest rate swaps (35,049 ) (10,425 ) The fair value of the commodity contracts is included in prepaid expenses and other current assets, and the fair values of the foreign currency contracts and interest rate swaps are included in other accrued liabilities and other long-term liabilities in the condensed consolidated balance sheets as of September 30, 2020 December 31, 2019. September 30, 2020 December 31, 2019 |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5. Measurements ASC 820 10, Fair Value Measurement 820 10 three 1 2 3 no The Company believes the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, short-term borrowings and ABL facility borrowings), excluding Term Loan borrowings, approximates the fair value of these instruments based upon their short-term nature. The fair value of Term Loan borrowings, which have an aggregate carrying value of $814,675, was approximately $828,963 (Level 2 September 30, 2020 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, 2020 | |
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, 2020 2019 Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – July, 1 2020 $ (44,822 ) $ - $ (27,704 ) $ (72,526 ) Other comprehensive income (loss) before reclassifications 9,484 - 1,003 (1) 10,487 Amounts reclassified from AOCL - - - - Net current-period other comprehensive income (loss) 9,484 - 1,003 10,487 Ending Balance – September 30, 2020 $ (35,338 ) $ - $ (26,701 ) $ (62,039 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Loss on Cash Flow Hedges Total Beginning Balance – July, 1 2019 $ (16,673 ) $ (10,541 ) $ (6,617 ) $ (33,831 ) Other comprehensive income (loss) before reclassifications (9,811 ) - (2,721 ) (2) (12,532 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive income (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 Loss on Cash Flow Hedges Total Beginning Balance – January 1, 2020 $ (16,622 ) $ - $ (8,295 ) $ (24,917 ) Other comprehensive income (loss) before reclassifications (18,716 ) (3) - (18,406 ) (4) (37,122 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive loss (18,716 ) - (18,406 ) (37,122 ) Ending Balance – September 30, 2020 $ (35,338 ) $ - $ (26,701 ) $ (62,039 ) 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 income (loss) before reclassifications (7,652 ) - (14,898 ) (5) (22,550 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive income (loss) (7,652 ) - (14,898 ) (22,550 ) Ending Balance – September 30, 2019 $ (26,484 ) $ (10,541 ) $ (9,338 ) $ (46,363 ) ( 1 Represents unrealized gains of $1,342, net of tax effect of $(339) for the three September 30, 2020 ( 2 Represents unrealized losses of $(3,677), net of tax effect of $956 for the three September 30, 2019 ( 3 Represents the unfavorable impact from the strengthening of the U.S. dollar against foreign currencies during the nine September 30, 2020 ( 4 Represents unrealized losses of $(24,623), net of tax effect of $6,217 for the nine September 30, 2020 ( 5 Represents unrealized losses of $(20,132), net of tax effect of $5,234 for the nine September 30, 2019 |
Note 7 - Segment Reporting
Note 7 - Segment Reporting | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7 . Segment Reporting The Company has two two The Company's product offerings consist primarily of power generation equipment, energy technology 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 by reportable segment is as follows: Net Sales by Segment Three Months Ended September 30, 2020 Product Classes Domestic International Total Residential products $ 441,532 $ 17,345 $ 458,877 Commercial & industrial products 108,774 67,426 176,200 Other 56,569 9,709 66,278 Total net sales $ 606,875 $ 94,480 $ 701,355 Three Months Ended September 30, 2019 Product Classes Domestic International Total Residential products $ 322,134 $ 12,895 $ 335,029 Commercial & industrial products 132,491 82,414 214,905 Other 40,185 11,016 51,201 Total net sales $ 494,810 $ 106,325 $ 601,135 Net Sales by Segment Nine Months Ended September 30, 2020 Product Classes Domestic International Total Residential products $ 1,013,219 $ 44,629 $ 1,057,848 Commercial & industrial products 294,940 208,216 503,156 Other 135,521 27,593 163,114 Total net sales $ 1,443,680 $ 280,438 $ 1,724,118 Nine Months Ended September 30, 2019 Product Classes Domestic International Total Residential products $ 778,733 $ 42,500 $ 821,233 Commercial & industrial products 390,514 263,944 654,458 Other 103,593 34,120 137,713 Total net sales $ 1,272,840 $ 340,564 $ 1,613,404 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 C&I applications and fueled by diesel, natural gas, liquid propane and bi-fuel, with power outputs ranging from 10kW 3,250kW. Other products and services consist primarily of aftermarket service parts and product accessories sold to our dealers, the amortization of extended warranty deferred revenue, and remote monitoring subscription 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. 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, 2020 2019 2020 2019 Domestic $ 171,359 $ 120,833 $ 374,065 $ 305,747 International 7,419 5,120 13,877 19,220 Total adjusted EBITDA $ 178,778 $ 125,953 $ 387,942 $ 324,967 Interest expense (8,096 ) (10,704 ) (25,081 ) (31,428 ) Depreciation and amortization (17,168 ) (15,494 ) (50,087 ) (42,841 ) Non-cash write-down and other adjustments (1) (477 ) (347 ) (1,868 ) (673 ) Non-cash share-based compensation expense (2) (4,353 ) (3,549 ) (14,327 ) (11,477 ) Transaction costs and credit facility fees (3) (568 ) (358 ) (1,160 ) (2,047 ) Business optimization and other charges (4) (531 ) (567 ) (12,503 ) (809 ) Other (300 ) 27 (711 ) 556 Income before provision for income taxes $ 147,285 $ 94,961 $ 282,205 $ 236,248 ( 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 transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance, debt issuance or refinancing, together with certain fees relating to our senior secured credit facilities. ( 4 For the three nine September 30, 2020, 19 three nine September 30, 2019 In the fourth 2019, 2018. not three nine September 30, 2019 The Company’s sales in the U.S. represented approximately 84% and 78% of total sales for the three September 30, 2020 2019 nine September 30, 2020 2019 September 30, 2020 December 31, 2019 |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 8 . Balance Sheet Details Inventories consist of the following: September 30, December 31, 2020 2019 Raw materials $ 340,275 $ 328,021 Work-in-process 8,817 10,387 Finished goods 183,860 183,616 Total $ 532,952 $ 522,024 Property and equipment consists of the following: September 30, December 31, 2020 2019 Land and improvements $ 17,464 $ 18,252 Buildings and improvements 194,994 177,079 Machinery and equipment 147,590 117,114 Dies and tools 23,677 22,040 Vehicles 5,258 3,955 Office equipment and systems 104,363 99,124 Leasehold improvements 4,914 4,293 Construction in progress 11,913 36,299 Gross property and equipment 510,173 478,156 Accumulated depreciation (188,813 ) (161,180 ) Total $ 321,360 $ 316,976 Total property and equipment included finance leases of $26,976 and $26,063 at September 30, 2020 December 31, 2019 |
Note 9 - Allowance for Credit L
Note 9 - Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Allowance for Credit Losses [Text Block] | 9. The Company's trade and other receivables primarily arise from the sale of our products to independent residential dealers, industrial distributors and dealers, national and regional retailers, electrical/HVAC/solar wholesalers, e-commerce partners, equipment rental companies, equipment distributors, solar installers, and certain end users with payment terms generally ranging from 30 60 may The Company maintains an allowance for credit losses, which represents an estimate of expected losses over the remaining contractual life of its receivables considering current market conditions and estimates for supportable forecasts when appropriate. The Company measures expected credit losses on its trade receivables on an entity by entity basis. The estimate of expected credit losses considers a historical loss experience rate that is adjusted for delinquency trends, collection experience, and/or economic risk where appropriate based on current market conditions. Additionally, management develops a specific allowance for trade receivables known to have a high risk of expected future credit loss. The Company has historically experienced immaterial write-offs given the nature of the customers that receive credit. In addition, the Company holds a credit insurance plan that covers the risk of loss up to specified amounts on certain trade receivables. As of September 30, 2020 The following is a tabular reconciliation of the Company’s allowance for credit losses: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Balance at beginning of period $ 11,097 $ 6,968 Adoption of ASU 2016-13 - 1,147 Provision for credit losses 152 3,982 Charge-offs (336 ) (615 ) Currency translation 270 (299 ) Balance at end of period $ 11,183 $ 11,183 |
Note 10 - Product Warranty Obli
Note 10 - Product Warranty Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 10 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance at beginning of period $ 50,324 $ 45,324 $ 49,316 $ 41,785 Product warranty reserve assumed in acquisition 124 - 124 407 Payments (8,667 ) (7,576 ) (24,136 ) (18,867 ) Provision for warranty issued 10,949 8,518 27,691 23,656 Changes in estimates for pre-existing warranties (575 ) 230 (840 ) (485 ) Balance at end of period $ 52,155 $ 46,496 $ 52,155 $ 46,496 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, 2020 2019 2020 2019 Balance at beginning of period $ 83,153 $ 74,517 $ 78,738 $ 68,340 Deferred revenue contracts issued 6,802 5,918 18,966 18,832 Amortization of deferred revenue contracts (4,241 ) (3,573 ) (11,990 ) (10,310 ) Balance at end of period $ 85,714 $ 76,862 $ 85,714 $ 76,862 The timing of recognition of the Company’s deferred revenue balance related to extended warranties at September 30, 2020 Remainder of 2020 $ 4,382 2021 19,630 2022 18,567 2023 14,058 2024 9,801 After 2024 19,276 Total $ 85,714 Standard product warranty obligations and extended warranty related deferred revenues are included in the condensed consolidated balance sheets as follows: September 30, December 31, 2020 2019 Product warranty liability Current portion - other accrued liabilities $ 29,962 $ 27,885 Long-term portion - other long-term liabilities 22,193 21,431 Total $ 52,155 $ 49,316 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 21,846 $ 15,519 Long-term portion - other long-term liabilities 63,868 63,219 Total $ 85,714 $ 78,738 |
Note 11 - Contract Balances
Note 11 - Contract Balances | 9 Months Ended |
Sep. 30, 2020 | |
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 $17,637 and $9,952 at September 30, 2020 December 31, 2019 nine September 30, 2020 December 31, 2019 one |
Note 12 - Credit Agreements
Note 12 - Credit Agreements | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 ABL Facility $ 5,269 $ 30,961 Other lines of credit 39,531 27,753 Total $ 44,800 $ 58,714 Long-term borrowings are included in the condensed consolidated balance sheets as follows: September 30, December 31, 2020 2019 Term Loan $ 830,000 $ 830,000 Original issue discount and deferred financing costs (16,107 ) (18,048 ) Finance lease obligation 27,021 25,962 Other 3,848 2,236 Total 844,762 840,150 Less: current portion of debt 1,313 553 Less: current portion of finance lease obligation 2,108 1,830 Total $ 841,341 $ 837,767 The Company’s credit agreements originally provided for a $1,200,000 term loan B credit facility (Term Loan) and currently include a $300,000 uncommitted incremental term loan facility. The maturity date of the Term Loan is currently December 13, 2026. first second In December 2019, May 31, 2023 December 13, 2026, 0.75% 470 50, fourth 2019. The Term Loan does not 1.00 September 30, 2020 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 As of September 30, 2020 As of September 30, 2020 December 31, 2019 |
Note 13 - Stock Repurchase Prog
Note 13 - Stock Repurchase Program | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | 13 . Stock Repurchase Program In September 2018, fourth 2020. September 2020, may may may may three nine September 30, 2020 August 2015, |
Note 14 - Earnings Per Share
Note 14 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 14. Share Basic earnings per share is calculated by dividing net income attributable to the common shareholders of the Company by the weighted average number of common shares outstanding during the period, exclusive of restricted shares. Except where the result would be anti-dilutive, diluted earnings per share is calculated by assuming the vesting of unvested restricted stock and the exercise of stock options. Refer to Note 3 The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator Net income attributable to Generac Holdings Inc. $ 114,970 $ 75,574 $ 225,575 $ 182,393 Redeemable noncontrolling interest redemption value adjustment 811 (1,485 ) (2,281 ) 191 Net income attributable to common shareholders $ 115,781 $ 74,089 $ 223,294 $ 182,584 Denominator Weighted average shares, basic 62,353,473 61,973,447 62,244,872 61,878,500 Dilutive effect of stock compensation awards (1) 1,407,907 797,145 1,301,260 640,705 Diluted shares 63,761,380 62,770,592 63,546,132 62,519,205 Net income attributable to common shareholders per share Basic $ 1.86 $ 1.20 $ 3.59 $ 2.95 Diluted $ 1.82 $ 1.18 $ 3.51 $ 2.92 ( 1 three nine September 30, 2020 September 30, 2019. |
Note 15 - Income Taxes
Note 15 - Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15 . Income Taxes The effective income tax rates for the nine September 30, 2020 2019 |
Note 16 - Commitments and Conti
Note 16 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 16 . 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, 2020 December 31, 2019 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 |
Note 17 - Subsequent Event
Note 17 - Subsequent Event | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 17. On October 7, 2020, one 2003 |
Note 3 - Redeemable Noncontro_2
Note 3 - Redeemable Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Redeemable Noncontrolling Interest [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance at beginning of period $ 61,019 $ 59,117 $ 61,227 $ 61,004 Net income (loss) 80 (563 ) (2,601 ) (388 ) Foreign currency translation 3,257 (3,475 ) 2,638 (3,861 ) Redemption value adjustment (811 ) 1,485 2,281 (191 ) Balance at end of period $ 63,545 $ 56,564 $ 63,545 $ 56,564 |
Note 4 - Derivative Instrumen_2
Note 4 - Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule Of Derivative Assets (Liabilities) at Fair Value [Table Text Block] | September 30, 2020 December 31, 201 9 Commodity contracts $ 1,522 $ 6 Foreign currency contracts (3 ) 31 Interest rate swaps (35,049 ) (10,425 ) |
Note 6 - Accumulated Other Co_2
Note 6 - Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 2020 $ (44,822 ) $ - $ (27,704 ) $ (72,526 ) Other comprehensive income (loss) before reclassifications 9,484 - 1,003 (1) 10,487 Amounts reclassified from AOCL - - - - Net current-period other comprehensive income (loss) 9,484 - 1,003 10,487 Ending Balance – September 30, 2020 $ (35,338 ) $ - $ (26,701 ) $ (62,039 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Loss on Cash Flow Hedges Total Beginning Balance – July, 1 2019 $ (16,673 ) $ (10,541 ) $ (6,617 ) $ (33,831 ) Other comprehensive income (loss) before reclassifications (9,811 ) - (2,721 ) (2) (12,532 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive income (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 Loss on Cash Flow Hedges Total Beginning Balance – January 1, 2020 $ (16,622 ) $ - $ (8,295 ) $ (24,917 ) Other comprehensive income (loss) before reclassifications (18,716 ) (3) - (18,406 ) (4) (37,122 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive loss (18,716 ) - (18,406 ) (37,122 ) Ending Balance – September 30, 2020 $ (35,338 ) $ - $ (26,701 ) $ (62,039 ) 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 income (loss) before reclassifications (7,652 ) - (14,898 ) (5) (22,550 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive income (loss) (7,652 ) - (14,898 ) (22,550 ) Ending Balance – September 30, 2019 $ (26,484 ) $ (10,541 ) $ (9,338 ) $ (46,363 ) |
Note 7 - Segment Reporting (Tab
Note 7 - Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Net Sales by Segment Three Months Ended September 30, 2020 Product Classes Domestic International Total Residential products $ 441,532 $ 17,345 $ 458,877 Commercial & industrial products 108,774 67,426 176,200 Other 56,569 9,709 66,278 Total net sales $ 606,875 $ 94,480 $ 701,355 Three Months Ended September 30, 2019 Product Classes Domestic International Total Residential products $ 322,134 $ 12,895 $ 335,029 Commercial & industrial products 132,491 82,414 214,905 Other 40,185 11,016 51,201 Total net sales $ 494,810 $ 106,325 $ 601,135 Net Sales by Segment Nine Months Ended September 30, 2020 Product Classes Domestic International Total Residential products $ 1,013,219 $ 44,629 $ 1,057,848 Commercial & industrial products 294,940 208,216 503,156 Other 135,521 27,593 163,114 Total net sales $ 1,443,680 $ 280,438 $ 1,724,118 Nine Months Ended September 30, 2019 Product Classes Domestic International Total Residential products $ 778,733 $ 42,500 $ 821,233 Commercial & industrial products 390,514 263,944 654,458 Other 103,593 34,120 137,713 Total net sales $ 1,272,840 $ 340,564 $ 1,613,404 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Domestic $ 171,359 $ 120,833 $ 374,065 $ 305,747 International 7,419 5,120 13,877 19,220 Total adjusted EBITDA $ 178,778 $ 125,953 $ 387,942 $ 324,967 Interest expense (8,096 ) (10,704 ) (25,081 ) (31,428 ) Depreciation and amortization (17,168 ) (15,494 ) (50,087 ) (42,841 ) Non-cash write-down and other adjustments (1) (477 ) (347 ) (1,868 ) (673 ) Non-cash share-based compensation expense (2) (4,353 ) (3,549 ) (14,327 ) (11,477 ) Transaction costs and credit facility fees (3) (568 ) (358 ) (1,160 ) (2,047 ) Business optimization and other charges (4) (531 ) (567 ) (12,503 ) (809 ) Other (300 ) 27 (711 ) 556 Income before provision for income taxes $ 147,285 $ 94,961 $ 282,205 $ 236,248 |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, 2020 2019 Raw materials $ 340,275 $ 328,021 Work-in-process 8,817 10,387 Finished goods 183,860 183,616 Total $ 532,952 $ 522,024 |
Property, Plant and Equipment [Table Text Block] | September 30, December 31, 2020 2019 Land and improvements $ 17,464 $ 18,252 Buildings and improvements 194,994 177,079 Machinery and equipment 147,590 117,114 Dies and tools 23,677 22,040 Vehicles 5,258 3,955 Office equipment and systems 104,363 99,124 Leasehold improvements 4,914 4,293 Construction in progress 11,913 36,299 Gross property and equipment 510,173 478,156 Accumulated depreciation (188,813 ) (161,180 ) Total $ 321,360 $ 316,976 |
Note 9 - Allowance for Credit_2
Note 9 - Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Accounts Receivable, Allowance for Credit Loss [Table Text Block] | Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Balance at beginning of period $ 11,097 $ 6,968 Adoption of ASU 2016-13 - 1,147 Provision for credit losses 152 3,982 Charge-offs (336 ) (615 ) Currency translation 270 (299 ) Balance at end of period $ 11,183 $ 11,183 |
Note 10 - Product Warranty Ob_2
Note 10 - Product Warranty Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance at beginning of period $ 50,324 $ 45,324 $ 49,316 $ 41,785 Product warranty reserve assumed in acquisition 124 - 124 407 Payments (8,667 ) (7,576 ) (24,136 ) (18,867 ) Provision for warranty issued 10,949 8,518 27,691 23,656 Changes in estimates for pre-existing warranties (575 ) 230 (840 ) (485 ) Balance at end of period $ 52,155 $ 46,496 $ 52,155 $ 46,496 Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance at beginning of period $ 83,153 $ 74,517 $ 78,738 $ 68,340 Deferred revenue contracts issued 6,802 5,918 18,966 18,832 Amortization of deferred revenue contracts (4,241 ) (3,573 ) (11,990 ) (10,310 ) Balance at end of period $ 85,714 $ 76,862 $ 85,714 $ 76,862 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Remainder of 2020 $ 4,382 2021 19,630 2022 18,567 2023 14,058 2024 9,801 After 2024 19,276 Total $ 85,714 |
Product Warranty Obligations Included In Consolidated Balance Sheet [Table Text Block] | September 30, December 31, 2020 2019 Product warranty liability Current portion - other accrued liabilities $ 29,962 $ 27,885 Long-term portion - other long-term liabilities 22,193 21,431 Total $ 52,155 $ 49,316 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 21,846 $ 15,519 Long-term portion - other long-term liabilities 63,868 63,219 Total $ 85,714 $ 78,738 |
Note 12 - Credit Agreements (Ta
Note 12 - Credit Agreements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Short-term Debt [Table Text Block] | September 30, December 31, 2020 2019 ABL Facility $ 5,269 $ 30,961 Other lines of credit 39,531 27,753 Total $ 44,800 $ 58,714 |
Schedule of Long-term Debt Instruments [Table Text Block] | September 30, December 31, 2020 2019 Term Loan $ 830,000 $ 830,000 Original issue discount and deferred financing costs (16,107 ) (18,048 ) Finance lease obligation 27,021 25,962 Other 3,848 2,236 Total 844,762 840,150 Less: current portion of debt 1,313 553 Less: current portion of finance lease obligation 2,108 1,830 Total $ 841,341 $ 837,767 |
Note 14 - Earnings Per Share (T
Note 14 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator Net income attributable to Generac Holdings Inc. $ 114,970 $ 75,574 $ 225,575 $ 182,393 Redeemable noncontrolling interest redemption value adjustment 811 (1,485 ) (2,281 ) 191 Net income attributable to common shareholders $ 115,781 $ 74,089 $ 223,294 $ 182,584 Denominator Weighted average shares, basic 62,353,473 61,973,447 62,244,872 61,878,500 Dilutive effect of stock compensation awards (1) 1,407,907 797,145 1,301,260 640,705 Diluted shares 63,761,380 62,770,592 63,546,132 62,519,205 Net income attributable to common shareholders per share Basic $ 1.86 $ 1.20 $ 3.59 $ 2.95 Diluted $ 1.82 $ 1.18 $ 3.51 $ 2.92 |
Note 1 - Description of Busin_2
Note 1 - Description of Business and Basis of Presentation (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Asset Impairment, Total | $ 0 | ||
Retained Earnings (Accumulated Deficit), Ending Balance | $ 1,306,530 | $ 1,084,383 | |
Accounting Standards Update 2016-13 [Member] | |||
Retained Earnings (Accumulated Deficit), Ending Balance | $ (1,147) |
Note 2 - Acquisitions (Details
Note 2 - Acquisitions (Details Textual) - USD ($) $ in Thousands | Apr. 26, 2019 | Mar. 12, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 |
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 22,815 | $ 120,863 | |||||
Goodwill, Ending Balance | $ 815,624 | $ 815,624 | $ 805,284 | ||||
Pika [Member] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 49,068 | ||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 58,196 | ||||||
Goodwill, Ending Balance | $ 19,896 | ||||||
Neurio [Member] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 59,071 | $ 7,922 | |||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 58,762 | ||||||
Goodwill, Ending Balance | $ 17,862 | ||||||
Captiva, Energy Systems, and Mean Green Acquisitions [Member] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 24,070 |
Note 3 - Redeemable Noncontro_3
Note 3 - Redeemable Noncontrolling Interest (Details Textual) - USD ($) $ in Thousands | Feb. 01, 2019 | Feb. 28, 2019 | Mar. 01, 2016 |
Pramac [Member] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 35.00% | ||
Captiva Energy Solutions [Member] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | ||
Pramac [Member] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 65.00% | ||
Redeemable Noncontrolling Interest, Equity, Fair Value, Total | $ 34,253 | ||
Noncontrolling Interest Agreement, Extension of Term (Year) | 5 years | ||
Captiva Energy Solutions [Member] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ||
Redeemable Noncontrolling Interest, Equity, Fair Value, Total | $ 3,165 | ||
Business Acquisition, Noncontrolling Interest, Term of Put Option (Year) | 5 years | ||
Business Acquisition, Term of Call Option (Year) | 5 years |
Note 3 - Redeemable Noncontro_4
Note 3 - Redeemable Noncontrolling Interest - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Redemption value adjustment | $ 811 | $ (1,485) | $ (2,281) | $ 191 |
Redeemable Noncontrolling Interest [Member] | ||||
Balance at beginning of period | 61,019 | 59,117 | 61,227 | 61,004 |
Net income (loss) | 80 | (563) | (2,601) | (388) |
Foreign currency translation | 3,257 | (3,475) | 2,638 | (3,861) |
Redemption value adjustment | (811) | 1,485 | 2,281 | (191) |
Balance at end of period | $ 63,545 | $ 56,564 | $ 63,545 | $ 56,564 |
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 | |||
Mar. 31, 2020 | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2017 | Dec. 31, 2019USD ($) | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ 1,003 | $ (2,721) | $ (18,406) | $ (14,898) | |||
Derivative Assets (Liabilities), Net Fair Value of Derivative Contracts, Excluding Impact of Credit Risk | $ (34,134) | $ (34,134) | $ (10,588) | ||||
Commodity Contract [Member] | |||||||
Derivative, Number of Instruments Held, Total | 0 | 0 | |||||
Interest Rate Swap [Member] | |||||||
Number of New Contracts Entered | 3 | 20 | |||||
Derivative, Number of Instruments Outstanding | 15 | 15 | |||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ 1,003 | $ (2,721) | $ (18,406) | $ (14,898) |
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, 2020 | Dec. 31, 2019 |
Commodity Contract [Member] | ||
Fair Value of Derivatives | $ 1,522 | $ 6 |
Foreign Exchange Contract [Member] | ||
Fair Value of Derivatives | (3) | 31 |
Interest Rate Swap [Member] | ||
Fair Value of Derivatives | $ (35,049) | $ (10,425) |
Note 5 - Fair Value Measureme_2
Note 5 - Fair Value Measurements (Details Textual) | Sep. 30, 2020USD ($) |
Long-term Debt, Total | $ 814,675 |
Long-term Debt, Fair Value | $ 828,963 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ 1,342 | $ (3,677) | $ (24,623) | $ (20,132) |
Other Comprehensive Income (Loss) before Reclassifications, Tax, Total | $ (339) | $ 956 | $ 6,217 | $ 5,234 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||||
Balance | $ 1,097,275 | $ 871,011 | $ 1,032,851 | $ 761,261 | ||||
Balance | 1,229,896 | 939,215 | 1,229,896 | 939,215 | ||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||||
Balance | (44,822) | (16,673) | (16,622) | (18,832) | ||||
Other comprehensive income (loss) before reclassifications | 9,484 | (9,811) | (18,716) | [1] | (7,652) | |||
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 | ||||
Net current-period other comprehensive income (loss) | 9,484 | (9,811) | (18,716) | (7,652) | ||||
Balance | (35,338) | (26,484) | (35,338) | (26,484) | ||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||||
Balance | 0 | (10,541) | (10,541) | |||||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 | ||||
Net current-period other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||||
Balance | 0 | (10,541) | 0 | (10,541) | ||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||||
Balance | (27,704) | (6,617) | (8,295) | 5,560 | ||||
Other comprehensive income (loss) before reclassifications | 1,003 | [2] | (2,721) | [3] | (18,406) | [4] | (14,898) | [5] |
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 | ||||
Net current-period other comprehensive income (loss) | 1,003 | (2,721) | (18,406) | (14,898) | ||||
Balance | (26,701) | (9,338) | (26,701) | (9,338) | ||||
AOCI Attributable to Parent [Member] | ||||||||
Balance | (72,526) | (33,831) | (24,917) | (23,813) | ||||
Other comprehensive income (loss) before reclassifications | 10,487 | (12,532) | (37,122) | (22,550) | ||||
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 | ||||
Net current-period other comprehensive income (loss) | 10,487 | (12,532) | (37,122) | (22,550) | ||||
Balance | $ (62,039) | $ (46,363) | $ (62,039) | $ (46,363) | ||||
[1] | Represents the unfavorable impact from the strengthening of the U.S. dollar against foreign currencies during the six months ended June 30, 2020, particularly the Mexican Peso, Euro, Brazilian Real, and Russian Ruble. | |||||||
[2] | Represents unrealized gains of $1,342, net of tax effect of $(339) for the three months ended September 30, 2020. | |||||||
[3] | Represents unrealized losses of $(3,677), net of tax effect of $956 for the three months ended September 30, 2019. | |||||||
[4] | Represents unrealized losses of $(24,623), net of tax effect of $6,217 for the nine months ended September 30, 2020. | |||||||
[5] | Represents unrealized losses of $(20,132), net of tax effect of $5,234 for the nine months ended September 30, 2019. |
Note 7 - Segment Reporting (Det
Note 7 - Segment Reporting (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019 | |
Number of Reportable Segments | 2 | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 701,355 | $ 601,135 | $ 1,724,118 | $ 1,613,404 | |
Adjusted EBITDA | $ 178,778 | $ 125,953 | $ 387,942 | $ 324,967 | |
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | UNITED STATES | |||||
Concentration Risk, Percentage | 84.00% | 78.00% | 82.00% | 75.00% | |
Geographic Concentration Risk [Member] | Net Assets, Geographic Area [Member] | UNITED STATES | |||||
Concentration Risk, Percentage | 82.00% | 80.00% | |||
Amounts Adjusted from the Domestic Segment to the International Segment [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 3,353 | $ 10,509 | |||
Adjusted EBITDA | $ 384 | $ 976 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net sales | $ 701,355 | $ 601,135 | $ 1,724,118 | $ 1,613,404 |
Domestic [Member] | ||||
Net sales | 606,875 | 494,810 | 1,443,680 | 1,272,840 |
International [Member] | ||||
Net sales | 94,480 | 106,325 | 280,438 | 340,564 |
Residential Power Products [Member] | ||||
Net sales | 458,877 | 335,029 | 1,057,848 | 821,233 |
Residential Power Products [Member] | Domestic [Member] | ||||
Net sales | 441,532 | 322,134 | 1,013,219 | 778,733 |
Residential Power Products [Member] | International [Member] | ||||
Net sales | 17,345 | 12,895 | 44,629 | 42,500 |
Commercial and Industrial Power Products [Member] | ||||
Net sales | 176,200 | 214,905 | 503,156 | 654,458 |
Commercial and Industrial Power Products [Member] | Domestic [Member] | ||||
Net sales | 108,774 | 132,491 | 294,940 | 390,514 |
Commercial and Industrial Power Products [Member] | International [Member] | ||||
Net sales | 67,426 | 82,414 | 208,216 | 263,944 |
Other Products and Services [Member] | ||||
Net sales | 66,278 | 51,201 | 163,114 | 137,713 |
Other Products and Services [Member] | Domestic [Member] | ||||
Net sales | 56,569 | 40,185 | 135,521 | 103,593 |
Other Products and Services [Member] | International [Member] | ||||
Net sales | $ 9,709 | $ 11,016 | $ 27,593 | $ 34,120 |
Note 7 - Segment Reporting - Se
Note 7 - Segment Reporting - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Adjusted EBITDA | $ 178,778 | $ 125,953 | $ 387,942 | $ 324,967 | |
Interest expense | (8,096) | (10,704) | (25,081) | (31,428) | |
Depreciation and amortization | (17,168) | (15,494) | (50,087) | (42,841) | |
Non-cash write-down and other adjustments (1) | [1] | (477) | (347) | (1,868) | (673) |
Non-cash share-based compensation expense (2) | [2] | (4,353) | (3,549) | (14,327) | (11,477) |
Transaction costs and credit facility fees (3) | [3] | (568) | (358) | (1,160) | (2,047) |
Business optimization and other charges (4) | [4] | (531) | (567) | (12,503) | (809) |
Other | (300) | 27 | (711) | 556 | |
Income before provision for income taxes | 147,285 | 94,961 | 282,205 | 236,248 | |
Domestic [Member] | |||||
Adjusted EBITDA | 171,359 | 120,833 | 374,065 | 305,747 | |
International [Member] | |||||
Adjusted EBITDA | $ 7,419 | $ 5,120 | $ 13,877 | $ 19,220 | |
[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 transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance, debt issuance or refinancing, together with certain fees relating to our senior secured credit facilities. | ||||
[4] | For the three months ended September 30, 2020, represents severance and other charges related to the consolidation of certain of our facilities. For the nine months ended September, 30, 2020, represents severance, non-cash asset write-downs, and other charges to address the impact of the COVID-19 pandemic, decline in oil prices, and consolidation of certain of our facilities, consisting of $6,646 and $5,857 classified within costs of goods sold and operating expenses, respectively. For the three and nine months ended September 30, 2019, represents severance and other charges related to the consolidation of certain of our facilities. |
Note 8 - Balance Sheet Detail_2
Note 8 - Balance Sheet Details (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Capital Leases, Balance Sheet, Assets by Major Class, Net, Total | $ 26,976 | $ 26,063 |
Note 8 - Balance Sheet Detail_3
Note 8 - Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Raw materials | $ 340,275 | $ 328,021 |
Work-in-process | 8,817 | 10,387 |
Finished goods | 183,860 | 183,616 |
Total | $ 532,952 | $ 522,024 |
Note 8 - Balance Sheet Detail_4
Note 8 - Balance Sheet Details - Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property and equipment, gross | $ 510,173 | $ 478,156 |
Accumulated depreciation | (188,813) | (161,180) |
Total | 321,360 | 316,976 |
Land and Land Improvements [Member] | ||
Property and equipment, gross | 17,464 | 18,252 |
Building and Building Improvements [Member] | ||
Property and equipment, gross | 194,994 | 177,079 |
Machinery and Equipment [Member] | ||
Property and equipment, gross | 147,590 | 117,114 |
Dies and Tools [Member] | ||
Property and equipment, gross | 23,677 | 22,040 |
Vehicles [Member] | ||
Property and equipment, gross | 5,258 | 3,955 |
Office Equipment [Member] | ||
Property and equipment, gross | 104,363 | 99,124 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 4,914 | 4,293 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 11,913 | $ 36,299 |
Note 9 - Allowance for Credit_3
Note 9 - Allowance for Credit Losses (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts Receivable, before Allowance for Credit Loss | $ 409,423 | ||
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 11,183 | $ 11,097 | $ 6,968 |
Note 9 - Allowance for Credit_4
Note 9 - Allowance for Credit Losses - Summary of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Balance at beginning of period | $ 11,097 | $ 6,968 |
Adoption of ASU 2016-13 | 0 | 1,147 |
Provision for credit losses | 152 | 3,982 |
Charge-offs | (336) | (615) |
Currency translation | 270 | (299) |
Balance at end of period | $ 11,183 | $ 11,183 |
Note 10 - Product Warranty Ob_3
Note 10 - Product Warranty Obligations 1 (Details Textual) | 9 Months Ended |
Sep. 30, 2020 | |
Minimum [Member] | |
Extended Warranty Term (Year) | 5 years |
Maximum [Member] | |
Extended Warranty Term (Year) | 10 years |
Note 10 - Product Warranty Ob_4
Note 10 - Product Warranty Obligations 2 (Details Textual) | Sep. 30, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 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 (Year) | 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 (Year) | 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 (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Balance at beginning of period | $ 50,324 | $ 45,324 | $ 49,316 | $ 41,785 |
Product warranty reserve assumed in acquisition | 124 | 0 | 124 | 407 |
Payments | (8,667) | (7,576) | (24,136) | (18,867) |
Provision for warranty issued | 10,949 | 8,518 | 27,691 | 23,656 |
Changes in estimates for pre-existing warranties | (575) | 230 | (840) | (485) |
Balance at end of period | 52,155 | 46,496 | 52,155 | 46,496 |
Balance at beginning of period | 83,153 | 74,517 | 78,738 | 68,340 |
Deferred revenue contracts issued | 6,802 | 5,918 | 18,966 | 18,832 |
Amortization of deferred revenue contracts | (4,241) | (3,573) | (11,990) | (10,310) |
Balance at end of period | $ 85,714 | $ 76,862 | $ 85,714 | $ 76,862 |
Note 10 - Product Warranty Ob_6
Note 10 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Revenue performance obligation | $ 85,714 |
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, 2020USD ($) |
Revenue performance obligation | $ 85,714 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue performance obligation | 4,382 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue performance obligation | 19,630 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue performance obligation | 18,567 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue performance obligation | 14,058 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue performance obligation | 9,801 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue performance obligation | $ 19,276 |
Note 10 - Product Warranty Ob_8
Note 10 - Product Warranty Obligations - Deferred Product Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Current portion - other accrued liabilities | $ 29,962 | $ 27,885 | ||||
Long-term portion - other long-term liabilities | 22,193 | 21,431 | ||||
Total | 52,155 | $ 50,324 | 49,316 | $ 46,496 | $ 45,324 | $ 41,785 |
Current portion - other accrued liabilities | 21,846 | 15,519 | ||||
Long-term portion - other long-term liabilities | 63,868 | 63,219 | ||||
Total | $ 85,714 | $ 83,153 | $ 78,738 | $ 76,862 | $ 74,517 | $ 68,340 |
Note 11 - Contract Balances (De
Note 11 - Contract Balances (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Contract with Customer, Liability, Current | $ 17,637 | $ 9,952 |
Contract with Customer, Liability, Revenue Recognized | $ 7,991 |
Note 12 - Credit Agreements (De
Note 12 - Credit Agreements (Details Textual) - USD ($) $ in Thousands | May 31, 2013 | May 31, 2015 | Dec. 31, 2019 | Sep. 30, 2020 |
Short-term Debt, Total | $ 58,714 | $ 44,800 | ||
ABL Revolving Credit Facility [Member] | ||||
Long-term Line of Credit, Total | 5,269 | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 294,338 | |||
Base Rate [Member] | ABL Revolving Credit Facility [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | 0.125% | ||
Adjusted LIBOR Rate [Member] | ABL Revolving Credit Facility [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||
London Interbank Offered Rate (LIBOR) [Member] | ABL Revolving Credit Facility [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | |||
Term Loan [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | |||
Uncommitted Incremental Term Loan Facility | $ 300,000 | |||
Debt Issuance Costs, Net, Total | 1,247 | |||
Debt Instrument, Fee Amount | 432 | |||
Repayments of Long-term Debt, Total | 49,000 | |||
Gain (Loss) on Extinguishment of Debt, Total | $ (926) | |||
Secured Leverage Ratio | 1.26 | |||
Term Loan [Member] | Maximum [Member] | ||||
Threshold for Secured Leverage Ratio Excess Cash Flow Payment Requirement | 3.75 | |||
Term Loan [Member] | Base Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 0.75% | ||
Term Loan [Member] | Adjusted LIBOR Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||
Term Loan [Member] | LIBOR Floor Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Note 12 - Credit Agreements - S
Note 12 - Credit Agreements - Short-term Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Short-term borrowings | $ 44,800 | $ 58,714 |
ABL Revolving Credit Facility [Member] | ||
Short-term borrowings | 5,269 | 30,961 |
Other Lines of Credit [Member] | ||
Short-term borrowings | $ 39,531 | $ 27,753 |
Note 12 - Credit Agreements - L
Note 12 - Credit Agreements - Long-term Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Term Loan | $ 830,000 | $ 830,000 |
Original issue discount and deferred financing costs | (16,107) | (18,048) |
Finance lease obligation | 27,021 | 25,962 |
Other | 3,848 | 2,236 |
Total | 844,762 | 840,150 |
Less: current portion of debt | 1,313 | 553 |
Less: current portion of finance lease obligation | 2,108 | 1,830 |
Total | $ 841,341 | $ 837,767 |
Note 13 - Stock Repurchase Pr_2
Note 13 - Stock Repurchase Program (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 62 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2018 | |
Stock Repurchase Program, Authorized Amount | $ 250,000 | $ 250,000 | $ 250,000 | $ 250,000 | $ 250,000 |
Stock Repurchase Program, Period in Force (Month) | 24 months | ||||
Payments for Repurchase of Common Stock | $ 305,547 | ||||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ 35.21 | ||||
Treasury Stock [Member] | |||||
Shares Acquired Under Stock Repurchases Program, Shares (in shares) | 0 | 0 | 8,676,706 |
Note 14 - Earnings Per Share (D
Note 14 - Earnings Per Share (Details Textual) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 0 | 0 | 0 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Net income attributable to Generac Holdings Inc. | $ 114,970 | $ 75,574 | $ 225,575 | $ 182,393 | |
Redeemable noncontrolling interest redemption value adjustment | 811 | (1,485) | (2,281) | 191 | |
Net income attributable to common shareholders | $ 115,781 | $ 74,089 | $ 223,294 | $ 182,584 | |
Weighted average shares, basic (in shares) | 62,353,473 | 61,973,447 | 62,244,872 | 61,878,500 | |
Dilutive effect of stock compensation awards (1) (in shares) | [1] | 1,407,907 | 797,145 | 1,301,260 | 640,705 |
Diluted shares (in shares) | 63,761,380 | 62,770,592 | 63,546,132 | 62,519,205 | |
Basic (in dollars per share) | $ 1.86 | $ 1.20 | $ 3.59 | $ 2.95 | |
Diluted (in dollars per share) | $ 1.82 | $ 1.18 | $ 3.51 | $ 2.92 | |
[1] | Excludes approximately 49,000 and 41,000 stock options for the three months ended June 30, 2020 and 2019, respectively, as the impact of such awards was anti-dilutive. Excludes approximately 15,000 and 76,000 stock options for the six months ended June 30, 2020 and 2019, respectively, as the impact of such awards was anti-dilutive. |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 21.30% | 22.80% |
Note 16 - Commitments and Con_2
Note 16 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Amount Financed by Dealers | $ 45.7 | $ 49.6 |