GNRC - Earnings call transcript Q4 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to the Fourth Quarter 2018 Generac Holdings, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at the time. [Operator Instructions] As a reminder, this conference call maybe recorded. to York host Ragen. like Chief today's now Officer, Financial would introduce for your conference, I Mr. Ragen, may you begin.

York Ragen

as other call. during thank Thank today our you. morning. President and statements. earnings and and a quarter Generac see words forward-looking or to With by contain factors. Please identify in our information list like this Good morning, of to Aaron statements or its well Officer. Certain everyone, commenting such forward-looking statements full those from time-to-time associated for risk and me today statements. Chief as provided by year could our results on employees, Jagdfeld, us Executive for earnings call and uncertainties joining everyone welcome presentation, actual from is that fourth I'd the made this forward-looking may to involve our expressions and XXXX cause release materially begin risks or differ these We'll statements filings that SEC

addition, during today's certain call. non-GAAP we'll measures to make In reference

to Additional including now comparable is measures, turn GAAP I earnings reconciliation call SEC in information our the over measures, U.S. available release will to and these regarding filings. Aaron.

Aaron Jagdfeld

Day. Good Thank York. Happy for morning you, today. everyone. joining us Thank you Valentine's

to unfavorable of the from off XX%. slightly offset in fantastic experienced growth increased Generac strong impacts which the was foreign Overall, fourth again quarter Our net results currency during Selmec capped prior as approximately compared XXXX including through XX% organic a the when core we year by the quarter. for acquisition record sales sales year quarterly contribution

margins prior XXX $X grew XX% more approximately year basis $XXX billion net points year, with XX% than full the sales to the or million. to over over expanding EBITDA For

the as continued market impact demand were in all year generators demand home grow alongside gains. and robust the to standby two by over of for products initiatives particular C&I with continued significantly in backup increases in markets strength for penetration XXXX telecom of and in recovery the throughout remaining Shipments the power mobile resulted the the our driven of in healthcare sectors. last also increased outage years domestic year-over-year very power products in higher Continued growth in activity underpinned end our

year, In was addition, strong organic leveraged experienced generators sales margins was the in the year. segment, further two which activations elevated from in home has Awareness past the adjusted years outage and very in the regions. southeast again particularly within improvement user for full northeast remaining during baseline power end fourth strong growth for international into benefited activity the the the EBITDA standby and with quarter

both channel during base demand significantly inventories, company driven of for compared year remained retail mobile quarter XXXX. the the residential Shipments of dealer year elevated of continued quarter lower quarter impacts Demand expand and the high hurricane year, X,XXX. all the experience. during to of levels time included additional the for activity which the of remain an generators heading for an highs portable more to for home during products these standby the than were generators were Our all-time and strong Production in the domestic full activity, outage the but up were by prior to strong and for major placement replenishment quarter generators fleet as products their fourth into elevated investing continuing telecom increased gas with construction networks rental needs quarter rebound for uptime. activity in the contributing during drove was the broad for their XXXX hardening the the to heavily refresh account markets to full gas cycle. for customers full across Demand particular, the the based response domestic consistent C&I fueled natural year. further In certain markets. for in increased equipment our growth in end customers’ the outage and in year environment Demand particularly the of a are as power strong and the recovered generators number and in stationary markets also oil of

gensets globally, gas due gain a operational to to continued the power C&I economic advantages. their natural diesel choice as acceptance backup for generators remain While and substitute dominant

to in China. fourth for with volumes Brazil, America, being on full leverage our international segment the the mainland EBITDA addition the full continued year the for strong Adjusted to improved also expand year, and operating improvement. quarter In for growth our Europe, higher domestically the Latin experienced business in a saw the to margins Australia, the biggest sales international growth and contributor

of that gaseous and feature. of important in a significant the C&I are the standby our the off the small standard of product markets as to we our seeing XXXX flagship execution In number with achieved we success a strategy. experiencing products and our latest We of connectivity fuel into products home with line with milestones outside believe impressive Canada, also Wi-Fi year, a albeit U.S. launched base. the are version May, growth generator during We residential introduction both rates

the generators single information machine status one the as As them deeper partners. as Fleet, dealers being the towards new an generator maintenance customer our to industry also available, enhancing providing able the remotely speed or for real-time that be users we their both schedule and of uptime their well allows distribution care. as able as track new dramatically believe customers' about greater experience of that with so of status this outcome end software and is enhancing relationship diagnostic platform dealer precision be under to functionality, a a a dealers to with the we'll for By we the to and better maximize a specifically great ability every a enabling generators. level or each consumer believe do information With that of and introduced the have we as first, known monitor the first well to step with of track will repairs needed

unit that by technical management creating the connectivity can opportunities expertise systems, to backup to of and our exciting footprint, our future monitoring to in our on and gateway global home and energy our we or fuel broad rapidly system deploying the important leverage we we introduction our XXX-kilowatt a also the developing, market for is of space. believe manufacturer output related machine, this certain global electrical a brand XXXX, on layers In the position new in The participate building now largest services and impact lineup. are have a of largest distribution, electrical we and believe gaseous as other also business. electronics generators in an with the expanded our We could

of June the acceptance need in lower the product the by of end sales emissions. has component interest its exceeds initial related position to substitution number power new throughout for strategy We natural company, XXXX volumes was Building cleaner build mid-year. the equals recent as a location. operations our generators Ottomotores achieved with fuel of latest in our consolidate to programs, a Selmec of to and The systems year. single overall activities our Selmec with traditional closed as gaseous we since gas and its new been on for primarily a and the two Motortech We acquisition for strong being and is during delivery, mitigating year products XX% performance and realize core Generac and commercial are located and with of integration administrative success accelerated this record last the Generac in integration under leadership also facility of the and or gensets on of in through way for service years tangible generators a and the globalizing of Further Mexican Selmec is the the generators entities. telecommunications earlier of planned revenues of newer very Mexico machines fuel XXXX. a production to Canada introduced Recall market with our has in synergies a as Pramac, on of that diesel diesel Ottomotores, of release pleased strong products, milestone City generated XXXX, capabilities. of user year. that activities while combining a is serving the City providing outside into Tower innovative opened the gas overall are as U.S. technologies for well costs, A for the manufacturer new company gas Light, benefits market The the some focus in on operating the we natural industrial our we teams America and gensets Latin is month particular with look for and Mexico designer commercial headquarters businesses. genset existing

in Captiva In Energy XXXX, founded addition, generators. in Captiva a specializes customized of Pramac in in majority Calcutta, share acquired Solutions. XXXX and industrial headquartered early India,

presence exist in integrating physical gives relatively revenue on platform market power the in size, acquisition important small execute broader this by provides Captiva us and backup the a sourcing the and While Indian synergies Pramac into that business. operation to the potential the generation

I'd about Finally, minute long-term to that strategy we this we morning exciting to spend Powering you to call our some tell a like are making enhancements Ahead.

used than XX markets. our In Generac, as our and making Ahead revenues simultaneously effectively the tripled we've that while last of Over have the years, Powering investments for prioritizing more we served resources. blueprint time, our quadrupling

also strategic the we business of lead being strategy critical believe to and gas technology evolves leader from believe leadership focused evolve. our fuel focused globally that industry, a in narrowly that our the future added products is may recall Ahead, growth more generator larger year our we pillar As continued that as of you gaseous in we a to Powering Last company smaller must of our focus. a element power that

models, the about continue and new connect markets a on will a the the with new presents into we energy future. around business for will about technologies prospects role we their impact in see in monetize business that of to us, connectivity better that we opportunities profound The and the our develop the our ability and opportunities the products interact can way well we models we creating have customers potentially Internet As over Things play areas products, service our the markets to to entire entirely the way around the other vital serve management. monitoring partners customer energy we and think exciting distribution and significant with think the associated lifecycle of way

Connect called strategic be to name called simply of a Our and As our our we're wide we new to a pillar strategy Future. enterprise the adding Powering updating are plan result,

now have our to share plan. existing our last like market our opportunities leading new fourth the our customers further markets, using four gaining the connectivity prioritize globally, and strategic we focus develop in we York details established York? Our turn distribution continue and years, XX results. for intend objectives I'd the the done have resources with generator call strategic to gaseous to and As guide to the in residential investments Future, generator on provide efforts our will Powering our partners to the future. around and we to over for of technologies quarter growing With

York Ragen

Thanks Aaron.

Before adopted standard. effective GAAP discussing fourth detail, January recall in that results quarter revenue the X, new XXXX, accounting Generac recognition more

elected application retrospective standard full the periods purposes, all which comparability method For presented. to was under requires the

adoption we the that figures standard statements, this financial of impact the been XXXX have Although on have the our not accordingly. a morning were material discussing did adjusted prior year

a In prior related these finalizing as request we on more was There operations See comprehensive recognition standard, prior our income our income from revenue or of press warranties. reclassifications. made certain consolidated release related the reclassifications. these impact to statements extended accounting result quarter immaterial vacations to information addition under new no quarter prior upon for net our income of to quarter

compared quarter Now $XXX in XX.X% the fourth the for Net looking to quarter in $XXX.X at detail. XXXX. quarter million results of as our increased million to XXXX more sales fourth

of XX%. Excluding approximately acquisition quarter June currency core impact the X, growth from contribution the negative $XX.X rate the million from Selmec XXXX, the during slightly foreign and was

the in still quarter. quarters market Irma demand in after on of years coupled initiatives products our during on home the compared at last home net portable as Maria fourth robust. the impact generators make to our product generators, fourth Maria, year has the elevated end current active resulting immediate class, the continues sales basis Hurricanes replenishment that adoption Switching quarter for sales of and included in to portable partners duration by during $XXX.X shipments Harvey, of prior consolidated to residential growth year season fourth the automatic home retail category standby quarter $XXX.X generators frequency The with the quarter prior quarter. fact standby generators generators product Despite the very back million of shipments strong outages included to of increased significant these in prior the year effects to hurricane experienced be and Hurricane XX.X% everyday year. the recent the the standby the helped mainstream of to an and current of more marketplace of drive power Looking as in million with record

As year fourth strong a still generators down quarter year. versus the were prior portable while shipments of result, current in

XX.X% harden cell Domestically we a of seeing certain at telecom unfavorable middle their $XXX.X in Looking investment our national for market the million quarter as are commercial to networks. for from growth are compared as very XX% of approximately being large excluding impacts. Aaron increased net of growth million power in year contribution XXXX mentioned currency to the the industrial foreign tower as products, core to cycle with and in equipment Selmec customers our the the fourth sales quarter prior backup $XXX.X M&A when strong telecom

mobile demand continue nationals for addition, replace and support as account be their oil customers to gas fleets our independents C&I equipment products and our purposes. strong continues for rental general and In to both rental

globe order market that gas growth strong are economic the in Finally, non-residential Light mainland quarter backup year we current in as industrial distributors and Tower weakening particular quarter In and generators natural also grew region. across investment low we the the prices Australia, cost during from for quarter with are during drive a Internationally, be very America, businesses to shipments and effective impacting headwinds gas as that Pramac, despite shipment the of fuel strong a from in China. natural saw environment rates Brazil particularly penetration continue fuel Europe, geopolitical and the natural Motortech the continue as source construction our adoption power. our headwinds to modest a Latin euro even modestly for gas for certain driving significant and

for the amortization to and rest This activity million of installed outage due of the increased than price quarters. the continue category Operating as costs sales million power demand amortization relative home well with deferred progress of increases to to compared companies. by the quarter with to A implemented up higher as drove currency products XXXX. the $XX.X fluctuations and fourth globe warranty offset Ottomotores, of of year to prior to X% XX.X% in revenue fourth growth in the has labor approximately extended more was were business margin fourth of products modestly the integration made and shift primarily this quarter. million parts Net as since make the commodity the of core rate of unfavorable tracks elevated realization $X.X increased base expanded margin core warranty quarter prior strong between growth XXXX extended logistics expenses XX.X% we levels. as the recent increased our two standby and compared and around and XX%. also higher execute sales Higher As on year favorable revenue the Selmec in on mix our towards synergies part as replacement increase. deferred Gross profit other prior XX.X% generator compared service to sales $XX.X or

The was recurring lower quarter expenses. increases employee incentive from the warranty strong was partially including offset increased improved As versus year incremental of intangible Selmec and dollars prior compared the compared sales, to amortization operating recorded prior to EBITDA the improved to in and in operating by OpEx costs decline company Adjusted organic mostly quarter interests in primarily year. the the fourth acquisition. net as XX.X% release to prior higher as sales. quarter non-controlling year. to last intangible compensation of by defined compared margins expenses attributable on point in expenses year offset XX the leverage as the prior $XXX.X before XX due These due EBITDA volumes a long-term sales the the was variable the were gross earnings over primarily by increase $XXX.X million increase to million same declined and in impacted in on percentage in year mentioned period higher the sales the our margin organic that leverage operating during for volumes. previously was points operating basis Adjusted amortization expense XX.X% the year excluding in This operating driven deducting additional current XXXX basis costs input

in Domestic two for prior the quarter. briefly discuss $XXX.X year an margin XX.X% non-controlling I at in segments. adjusted interests financial and reporting will million For EBITDA our increased XX% million million as XXXX, $XXX.X impressive prior year segments compared in to $XXX.X before to increase resulting deducting results XX% now for full over a year. sales came the

fourth previously and discussed, by I economic severity across the outages broad As conditions favorable C&I drove power current and in higher increased strong end market demand shipments driven year base residential our during prior products million compared $XXX.X quarter. XX.X% for EBITDA XX.X% as to or sales the segment million net the sales. Adjusted of year or net of in quarter $XXX.X the was

X% prior full impacts. year, of the $XXX.X acquisition million XX% increased the over when sales exclude the and sales as while headwind quarter EBITDA adjusted from Selmec foreign XXXX International approximately you a compared including XXX the currency year of increased in both XX.X% million prior to domestic sales growth contributions margins $XXX.X X%. and Selmec million Core was basis $XX.X approximately to currency For points. segment increased segment

execute the to from segment across subsidiaries across EBITDA as international year-over-year global prior the the to project globe. discussed, the core strong year or for X.X% and relatively to the continue prior in sales that quarter benefiting decline. across market As during penetration year branches. net despite growth international sales growth million growth to net for higher year broad were segment larger I quarter the drive activity the Note as year. we compared non-controlling costs Adjusted was project activity $XX.X certain still this sales of previously million our due larger input or in prior the to interest X.X% of overall core was able compared margin before $XX.X we prior year-over-year deducting Higher in drove the of based Pramac's

interests of before XXXX the XX.X% with For growth the sales increased margins XX%. X.X% full for prior to deducting segment non-controlling We core year believe XXXX of sales EBITDA net in segment international over plans of on net approximate are during we international year year. Adjusted to the the double-digit for sales increased the compared reach strategic for with EBITDA in prior to sales the segment X.X% coming years. track our margins adjusted

$XX.X XXXX. from of Now financial of prior of income the million The the the company XXXX was million for compared basis. the the to Act. switching for income GAAP liabilities gains net of quarter the consolidated reevaluation performance $XX.X as Reform impact includes for for quarter net $XX.X of deferred company's Tax enactment quarter non-cash fourth of net to a back tax our fourth on with the largely the the million associated

an of tax year-over-year of Act is million of tax in large GAAP States. result, in during gain, a taxes federal $XX.X tax XX.X%. XXXX to the income primarily GAAP an in Reform would taxes rate aforementioned tax the the on the resulted during were taxes excluding million. rate have As XX.X% enactment been United effective of adjusted lower million Tax of only compares of QX in GAAP The or adjusted the an or which decline When XXXX income This the basis. basis effective rates fourth rate $X on due GAAP $XX quarter XXXX the an income fourth quarter the

discussed for in to related income included flow per XXXX offset year basis current $XXX.X prior to In addition, and capital to in the with year by were The release. to the in defined The income gain compared the to $XXX operating levels. Adjusted full earnings recorded as the $XX.X changes our XXXX. earnings prior quarter $X.XX or share. $X.XX to impacted cash earnings resulted that sales improvement in quarter growth, defined cash purchases federal our $X.XX specific in million flow the tax and million $X.XX income XXXX based operating increased for per $X.XX for for in the the was earnings million XX.X% company benefited income GAAP as of income these the Tax more impact $X of year adjustment Free or flow related expected $XX.X a XXXX related our in our to tax Diluted strong earnings was higher fourth the in quarter million year the versus reconciliation XXXX XXXX. taxes, expenditure quarter year the certain cash excess year prior for into yield company schedules was of million from provision last the the return the income in was compared incremental accelerated mostly the quarter just year working of cash were Higher in the per share compared the returns in higher share returns. year finalization as Act release of deductions and cash $XXX.X for of cash XXXX. from state in free tax XX% aforementioned cash was Cash XXXX the million in than to calculations compared earnings capital tax a fourth cash offset tax the $XXX.X as per higher a XXXX fact prior income during rate fourth expense the share. The compared quarter the the fourth inventory favorable year a $XX.X million quarter $XX.X in due share net current pretax on reflects of a was or taxes strong was tax earnings prior XXXX full regards growth earnings to $XXX Reform by $XX.X to are for includes as year rate million non-cash by same amounts With per investment of that in of net XXXX with were fourth current rate the release Higher the and year coupled organic ahead quarter. in tax with of incremental on year. tariff prior our full the tax million million a as year million operations quarter.

made the current on entire we the December $XX also During paying our credit year voluntary payment revolving facility hand. quarter, XXXX ABL XX, a with off million outstanding on balance as of cash

As a XXXX, outstanding XX, unamortized, we of net issue had financing total of of million and of original debt, December costs. discount deferred $XXX

Our as of fourth an basis XXXX. leverage X.Xx of decline healthy X.Xx for debt the quarter was at end the the end a on gross at the reported ratio

cash capabilities generation, of demonstrated earnings the strong and our have rapid deleveraging flow company. we Given the

$XX million XXXX. our like ABL comments Additionally, call million back and we the turn provide repayment revolving at million With M&A, to on loan to that, facility. during Aaron on was stock the of there credit expenditures, our had the capital the for and $XX debt in approximately including million mature of Both I'd for year now over of outlook for million $XX year, approximate repurchases. XXXX. ABL end of $XXX $XXX cash hand cash the our and XXXX available from for now million term on Uses to $XX

Aaron Jagdfeld

you, York. Thank

this we end strong XXXX. discussed our market to previously demand products have enter morning, as continued has be As for we

on second XX% the first an of baseline to to an net to compared the first half period. in expect outages we power with XX% basis the as sales rates such of in quarter. the grow assumes XX% a reported to the As core level and X% on basis average year higher This during quarter growth approximately

shareholder year, second single-digit of depending low to range power outage would on outage baseline the year. X% the assumptions year at environment stock Looking the outage assume acquisitions XXX increase price spend more strong a severity to half environment declines outages from prior favorable higher of The XXX experienced the This higher compared elevated for trends the average or by outage are sales the increases, to sales outages first to buybacks further single-digit XXXX, be our outages X% the on range of the on the during the be program I'd include are half XXXX. could could walk balance of enhancement with high-end respect the low-end details net would have by resources of to the no increases power activity net for additional during year. like offset from while drive these benefits depending an sequential an our major deducting year. we to range XX% Consistent to are points between full does to as input and back between between we call throughout expected the significant the currencies and event York The XXXX assume EBITDA low-end range commodities, year. basis margins high-end vary a Overall and an leverage depending major and XXXX growth the on impact margins during year also some relative power assume Furthermore, basis. of on given logistics expected low for the during outage free deducting of Net turn power generation, the and baseline with to to the power which sheet of of also number and the to for our to half, of now cash XX% the historical EBITDA environment reported to outlook Realization priorities. adjusted to long-term seasonality, to severity and expected factors. interests the average be guidance major year through with a and costs income XX% before no second outage potential our are costs XXXX, on largely XX% flow core of to X% execute for expected interest with margins approximately profitability non-controlling other improvement with would we being into X% before margins basis to expected in impacted year. elevated the all expect for mixed to will range promotion marketing strategic to business tariffs the assume level operating be regulatory and the outages power coming not year. the adjusted over year would value more reflect the power of conditions. York? given along be as non-controlling

York Ragen

Aaron. Thanks

XXXX. rate to XX% cash rate that cash XX% for The expense reflected to income tax certain cash Reform compared tax full year repeat and million be XXXX, effective to our which expected guidance is compared to cash an tax rate Based and Tax for outage to our year in environment to to translates GAAP in XX%. anticipated That full to approximately depending that accelerated as rate aren't expected our income million is the GAAP the in $XX into on XXXX XXXX. XX% tax XXXX favorable of expected in for the relates our XX.X% $XX provided XXXX, For year the expected tax XXXX. approximately XXXX between rates to full the for income increase deductions compares to the were rates increase XX% response year to to Act on

cash in we in lower return results tax amortization still reminder, tax tax result income notably shield a deduction of favorable income tax rate. than GAAP as a significant corporate a our our rate intangible As our being that have a

approximate million and of of XXXX. approximately one Act, to tax additional to expense XXXX. Tax expect the In in passage annual assuming we the expires year $XX With value shield rate be interest and Reform tax to no during the is payments per the expected $XX million $XX million year principal in XXXX, this be fully increase affected expected

similar to expenditures expected given capital XXXX per expense also $XX XXXX reflect guidance. expenses our investments to Our to Depreciation approximately the $XX at in capacity similar intangible for Stock be our to $XX million to to CapEx our X.X% $XX is is levels $XX net million approximate be amortization sales in at GAAP forecast expense approximate continued forecast to of during forecasted year. million year. is expected XXXX XXXX be million be compensation million for expanding year. the and XXXX to in assumed

adjusted year over free seasonality free call from once time. We'd the to expected for and conversion expected XXXX. be questions. historical of up operating generation the prepared remarks This our cash this XXXX, is income solid to open full net flow flow at a benefiting concludes cash to in again be to follow like For strong XX%

Operator

from Merrill [Operator first comes Gilardi Our you. Instructions] Thank question Lynch. Ross of

may question. with proceed your You

Ross Gilardi

Good thanks. Hey, guys. morning

Aaron Jagdfeld

morning, Good Ross.

Ross Gilardi

be the it off for I bit was about Hey, if mean Aaron, the of going and EBITDA net easily, a mean talking kick hit just like balance by sheet. the if more is could EBITDA the to X.Xx cash midpoint you little I I numbers, your the free of at flow, you wondering I I think debt your since your think IPO. to end 'XX, and guidance lowest

buybacks, versus how thinking what's you're So about lot the options dividends, had a M&A? obviously, of like you plan,

Aaron Jagdfeld

Yes.

as stakeholders. environment there’s been the there's and best can company I we the And great cash an we're a and how first you do, around CapEx the we guide for of focused gave capacity expansion, type closer there. of this there's this internally that company efficient our a -- look to consistent grow you'll take we number we're that, being that so the in of to our and growth of higher for amount question some we things only expansion every of we're very in think the do but this step -- continue been and little morning things way. morning, here thing we that. even CapEx one company, to and forward sales number do here Ross that we've capacity in terms since our we on there's do -- to priority And doesn't given it the And organically. that obviously given bit notice of net that it's thankfully, tremendous create through obviously a look capital the than on the there's can at future prospects shareholders all we at a going now for is continue uses pretty at time. that And want a through maybe we X.X. We've grow, IPO not things historically that -- company a things some – the position scaling is okay, we have say said, of X% year, to a But right

need grew year. to that there's You when And that, can we your do to capacity the do a get last up. things of lot XX% before, you -- growing XX% you year imagine

one that's So thing.

happen of things or in would and some you dividends M&A of years, accelerate done right looking us said mentioned then something some acquisitions six and remarks. this we've these think last are return in that acquisitions if our that That's there the think special right can acquisition we there's things targets different acquisition standpoint lot some that been have step After And the find we've that of talking the the over I an the could do that, and to future have focused strategy announced for certainly of But additional models the activity, Captiva asset that and indicate help only XX potential There's interesting our things Beyond we it and other where is grow. about those about acquisition of pretty is I price the you and last we through there from potential Selmec talking I been can do at international acquisition ways, around things, capital start a could something to past. through it that to. strategy, my done prepared we're the you like accelerate as we've year. activity we've a pipeline and fits a not also, early through universe of very business in in big. us, year seven some things we think number other opportunities shareholders,

both effective from got got the get wouldn't out taking return buybacks we've we've to those cost and think vehicles look debt. done I We structure. a great It we've a a of debt, some until past, at doesn't We I honestly are liability lot it. really think really in of we mature think do XXXX. that down that. Paying

it -- putting go, to shareholders think but we'll go is and lot from have powder kind those dry looking the past we I'm where we pretty really So a way as to or a we'll better of about. figure we of got to capital priorities evaluate But We've lot got and cool of returning a of that we're at to work here have setup. the out we've things excited the a here. got I lot we like that in

Ross Gilardi

Okay.

obviously regular doing mentioned dividend. not that that you're quarterly feel does you mean something like in special that past? the in still So and and interested I [indiscernible]

Aaron Jagdfeld

mean, here. that's this about Yes. I that as of talked the say would I I is growth about and something we've quarterly we've it's dividends, about a dividend. experienced the possibility. and way kind the company, stage, at one we've But think I certainly discussed a company think growth

the with -- don't for to return grow know to regular organic think where it's dividend, investing whether and all the many that get see us part -- stakeholders. the there better I we or cycle too term yet in we're can to use and be for it's in invest of far longer I that right I M&A too our a – just overall to get whether the activity. an I capital company through of continue whether of are about areas opportunities benefit think many that, again potential and thinking of

in And so, think been enough there's I'm the we've since been maybe have on not there, don't make and about this the -- I growth. just cycle about thinking that pretty say as And we clear we've our IPO. through and I'm that today, we ready But point to deploying too opportunities a Board. about should a we'll talk going excited versus that's say that to our capital where be to that future way point sense,

Ross Gilardi

door. create of a this Aaron, to next India this a of and we what long in much I as time Pramac, in think learn you kind little about and gives this at about I Indian Then mean Captiva like it a to the see hand mean the sort of or you or this for happens sort can point is it mechanics exploratory years? potentially market in platform you for market the and do topic three use talk seem Okay. bigger five bit This the more you market I the a of just And of over. interested [indiscernible] will a that. with foot transaction

Aaron Jagdfeld

couple acquisition went and of kind in, it could into haven't a a of we a toehold at giving this all the India to go of with And operations. limited it a any It's try in much I great a kind springboard Ross. felt done us markets really think it like route. around part the some first be as but a that bigger. no really our we had generator there, all We've commercial We There's in it Yes. we it's knowledge given think to have question, where the larger in sourcing middle gone if market, world could a activity. better need market. if the participate. and I a huge think But, -- that something works, of look that the we we chips pushed we of And could've wanted to for world

and India as will to and repeat pattern gas other of fuels this United to for realize usage power It of drawing are in favor that in world. world. I natural remarks emissions our many see needs last on a for do lot something India compelling infrastructure starting are think profiles they've the on as is There's years the natural And that and world. base gas production things XX we're in standpoint. XX of arguments this parts gas cooking we've other many going that's in of natural economics the we're the of been burned starting long in States. We're far heating got load parts going board of in to natural for other for here power pipeline a been everywhere too for base of the from looking time at infrastructure. it well. diesel got that and natural gas. lower or and generators eventually the -- economic need The the that talking morning, substitution for gensets of this the and prepared of load gas projects is the natural The nature. gas

footprint overall having that pipeline a on that to strategic And think part pillar. that becomes gas that a backup infrastructure deployed, is important being India a connect opportunity there to our an a gets power of lead and like to in As begin generator reality. push the system to we

really bigger so to in think it's want be And could But a us it India, for where us start long-term. I our for that's out to we cut there. teeth way

Ross Gilardi

it. much. very Got Thanks

Aaron Jagdfeld

bet. You

Operator

from our next Thank of question you. comes Charlie Robinson. And Brady SunTrust

proceed with your may question. You

Charlie Brady

into additional does guys. wondering And new [indiscernible] I adding of obviously, Hey add M&A, time - there. M&A. be area. the sort pipeline was potential talk can wondering beyond, you branching you morning that that you of Good to and ideas maybe the this out Future an when thanks. about would on Powering I'm -- what rack in Our

Aaron Jagdfeld

to great time help few only Any strategy XX to we've time M&A strategy. years. you that use us a question, adjustments And over our the Charlie. do again any It's accelerate have evaluate, last you made Yes. a to we

new And I funnel strategy, up connect consistent as to the our Absolutely, fill strategy of point. we add the and think on Powering ideas. that kind pillar different Future. starting we've now been M&A very rebranding So is of to with this Our

technology Some them oriented. of

type we right. of of find doing we've to traditional with in actually equipment them, monitoring -- interface been kind and had teams, it's of other than teams, been interesting people traditionally it different that you of different I'll your corporate spaces, our call kind we've Some development it's kind business about for parties because when talk opportunities of the development

business models I've been these about and about what as of going -- future discuss pipeline years the over next see been can't what and itself. the ready is to and vary for details us more remember going we're time, several business are I the what's think -- more excited again the around of from services, in years industry. many I've on this I XX time you're is be here the company can a I've oriented, So interesting a not long to mentioned the But models technology

utilities, to amount the years energy markets, coming change is going tremendous going present XX to a is think changes of next I amazing there the just in all some the decade. be The next to of I And in an what's but how to going don't going it's develop participate to should opportunity anybody that. we that think or know develops. market happen, we people have have how knows that ideas. to exactly

to traditional I of your power or the utility by that business. delivering think model home your

think few I radically think here power change to grid, onsite decentralization of the the that years There's take. because connectivity. of a formats the that's generation. lot storage to in that and that next going gas distributed the generation, But renewables I or we're that is and the on we putting or now that's going whether focus of focus have addition this gensets of natural on different

putting important the of ourselves I the those line. think in a really middle many conversations of parts down of

Charlie Brady

about you can into going is you alluded Great. on know of But it. situation talk kind Nursing Florida I Assisted that's Living don't the providing as to Home I XXXX in if there generators; Facility calls? bleeding missed that the prior

Aaron Jagdfeld

for that backup system of place. the were Florida was of in a year to the end in Yes. get third about facilities a There the granted deadline power waivers

nice been state market we for you as not it's the different been grid of markets has years. kind of But, it C&I that then, of as Florida not the just marked facility. but a increase -- went last applications for that years and the XX, waiver undoubtedly major number without that in some most lead here we've is in power what on for of of know likely. you And healthcare. size those into kind a seen the few And And depending the number the little a spill type different of we've disruptions backup XXXX, space had great a there residential any a there. was XX the other only serve, the to situation, first in a industrial will and over I each half so things commercial happen can a in also imagine mean

screen. it's But be guidance spillover will not spillover. on back it's is amount does to some think don't it's Florida the I of contemplate going -- well and be radar there going major. doing So our be some

Charlie Brady

All right. Thanks.

me. Just one more for

is but guess home can Are get issue neutral increases, is you I'm dynamic price that, of are fully going a to just neutralizing -- ramp the Thanks. particularly fully that standby to be cost, pricing now or color through year On put you growth on whole development talked obviously on the little market price trying more about the sensitive and you today? a I you the there. neutral to a for

York Ragen

is this Charlie, York.

steel yes, going So, higher costs are up to think spill in XXXX. I just into headwinds realization realization The just costs. labor it's logistics of there QX, the aluminum all have not and input and tariffs. costs are The spiked costs and of front of copper and costs tariffs really half

these to to that enhancement look RMB. going to initiatives with the XXXX. you if we then, moderate, euro for we to some is profitability cost back those our tariff though half And situation. going flip We on are around neutralize see to have have look the of that the with if all also increases fully copper, at see that aluminum the currencies year. probably starting then, the you're front the at input we moderating. But, relative the the in And in and you of headwinds costs side half costs think what layer that's collectively. logistics then, price today steel, So, price and full And combine you 'XX of as on

-- of X. will standby to the to tariffs on But least So level the and market with elasticity. the increase home at of something come price relative that think fruition bear, we relative tariffs, or just to the it's price are side cognizant I XX% at should March

Charlie Brady

Thanks.

Operator

from our Goldman question Thank Revich comes you. from next Sachs. And Jerry

your You with may proceed question.

Jerry Revich

everyone. morning, good Hi,

Aaron Jagdfeld

morning. good Jerry,

Jerry Revich

we analytics the could the once terms started on just You really replacement is, ramp call what us could you. if residential analytics installed the ramp starting one you like I when the plus in units to that share XX contribution it business focused any installed, a talk get to at the standby to of market business for if give then your see Any were years in element of be you I'm that replacement you're the for or that for interesting XXXXs wondering XX all in and look helpful? of to spot business, us mid to would demand with really replacement that sweet replacement that can folks from about units ago the have sense were

Aaron Jagdfeld

into today Jerry that and march market's in XX, go sell talking percentage only And we've about as it's the interesting -- of it's do information. a years we a track Yes. the replacement a it it reliable been products much And XX is we a that terms because old. up all of that steady replacement. very

we're nature of which side is you at so points of residential hit X%, interesting an replacement. of is And there, I the the way volume are today sitting think nail there for on have there our is that the head there's about because X% market But grown, those in cycle the to on increase and we're the curve over faster the of in of of you that. seeing should see offset the that that similar terms that one years. last hit of XX kind hit replacement kind patches replacement cycle, and you happened growth in when you penetration XX And may this,

again, cycles So in back XX XXXX. interesting to as some Florida, there it years but -- with example, up ago, was an pretty was were XX, that around there prior Katrina

timeframes. kind of million got typical similar. It's market XXXX. because the cared we and the that getting for closer those We're well You XX get something typical to here an over piece your very outages do that, in to million our nice it's now, starting that of starting bases excited term years, power we're as Northeast -- big longer should is between machines out a about to a this installed home's X into kind we've actually But and XX HVAC X.X well there, show of had infrastructure system build opportunity we long-term like up like replacement. Generators there's like in you for. last see if to

Jerry Revich

the disclosures. Appreciate

efforts into mentioned XXXX you after doing 'XX? to network high as to of the your really post-storm You dealers it continue green enthusiasm Can dealers newer now. the might those where the talk you continued of some newer stay laid folks fade the make out, to back just drive in What potentially XXXX call dealer about engagement engagement ones are some half drive to of sure for you you? the

Aaron Jagdfeld

Yes. come every board. time, It's a you generally challenge dealers. had on because right, They

And as dealers marketing higher. As kind right. part you've your are effectively standard in the and market trades got come doesn't cycle of market trades is maybe these is many And a to -- HVAC of how demand when business then, market. for on or demand the train electrician electrical practices, relaxes an of dealers the to

has set dealers. do to that have new So a it's lot be And a We progression for skill training. a of learned. we

don't And an know we've amazing XXXX It's to that like dealers categories lot burn in that we've new for the blood, poured standby that building part have sweat And tears representatives we and I investors things ongoing over it's business home distribution a don't dealers time, XX built just is countless of calories. an we -- market maybe product into I out think effort. just is takes dollars, the this and built and a one that these making generators. get our others or it of that out that that of years. that whether that

at You can't relax all.

element see to team think this of We basis. we things their that or forward van has I that of rolled just Fleet out. the It's for working that other have see it on been -- And things platform for being new talk of of all to our lot way like But couple people of can with dealer software care a a really ago generators Fleet that annual interact you think conference dealers notebook on prepared dealers; get that that term system up name, can of being obviously we but We longer in the inventory we're information things is, platform different way their here. dashboard could about a massive one truck. But in with they is control talked initiatives a dealer's as really connectivity for with But remarks, called their we a is we It engage -- our had as its platform, We spiral Fleet be You introducing say these and that. a diagnostic a nature. there. could right, important constantly the about Fleet "ERP" Fleet. way of would them. X,XXX as this dealers. many now potential with dispatch, of by weeks our about programs. can our billing, new that new under a It event. of coming programs, kind that you think our one could Las products. was a you Vegas, of platform customers totally there, a of interesting go a potentially on to And be

like So that that of after an it's even passes demand initial things up and engagement the us help surge after event. the keep excitement

Jerry Revich

appreciate I the you. discussion. Thank

Aaron Jagdfeld

Thanks Jerry.

Operator

you. Thank

KeyBanc from Please Hammond your Capital. question. comes question from with next Our Jeff proceed

Jeff Hammond

guys. good morning Hey,

Aaron Jagdfeld

Good Jeff. morning,

York Ragen

Good morning, Jeff.

Jeff Hammond

on way and X% X% out it the So any is parse to there between residential? commercial core, just to

York Ragen

is Yes. The X% to collective. X% core

And are think year. into seeing we throughout verticals domestically internationally demand the those on. a XXXX both of remarks there's our turned business market and strong that that end we're on prepared the strong I continuing So, C&I talked demand consistent pretty see and the number about

purposes, C&I seeing low that consistent our domestic single-digit, that our high that's across the growth international. for it's shows. So guide double-digit consistently And least and throughout year. what -- we're really At really

is So I theme for think demand C&I. that the there strong based, broad

is mainly but due to On with portables. probably that what down to side, mean would slightly headwinds down regards flat slightly, the is resi to

to down portables with resi full being the headwind year. slightly for the So still there seeing flat

Jeff Hammond

Okay. be does the mix? And commercial that would then, of inform where dynamic some margin lower

York Ragen

Yes.

there 'XX. that So on 'XX to the -- probably to be if side, about would costs bit -- little mix look I -- from at margin relative hit be on mix the price you talked negative a side a slight

Jeff Hammond

Okay. tariffs, big you And Can bit a pre-buy then, this up question, just some to drag of look last much good your inventories quite ahead what just a you finish of moved then, inventories? channel like? speak and is separately about was on is, feeling that Thanks. working capital. are inventory how And of how

York Ragen

increase the because did levels they mean I way year. think inventory Yes. about I the during

generators. So when portable you about think

So hurricanes last inventory inventory, we Irma, year wiped Maria, at just this portable was had through out level lived there. Harvey, our time,

replenishment actually been here, XXXX warehouses in So of throughout levels. inventory our our portable investing in we've

So just of replenishment everyday way. thing sort that portable with

On the we Chinese -- X. goods from January we XX% to imported XX% to the saw side, going relative were as on -- so tariff ending XX% of the tariffs year, to threat was there

of those more the decided really growth. third investing the So going board, some a it would tariffs. just facilitate piece lines We're of puzzle pre-buy XX% growth. components to bring be tariff that in be And by then, our is, impacted across at in we to look, strong be we product to in our management least team, that And inventory prior to those could inventory potential that the said extra across by impacted smart just invest to change. our in as

when So I one-third, increase. you of categories think inventory are one-third, that driving think that may one-third, that those

seasonally side, be field the the I storm, seasonally portable of where standby ready side, where On to a should consistent stock on think inventory curve coming for it's the we on we're book point with very manageable inventory the ready into go, side, I home at -- appropriate, actually field think this XXXX.

standby. okay So what we're home for where are feeling field inventories on our

Jeff Hammond

Okay. Thanks guys.

York Ragen

Thanks.

Aaron Jagdfeld

Thanks Jeff.

Operator

And from Halloran next you. our Baird. Thank question from Mike comes

with proceed question. may You your

Mike Halloran

Hey. guys. Good morning

Aaron Jagdfeld

Good morning, Mike.

York Ragen

Mike. morning, Good

Mike Halloran

right the I'm in guidance clarifying it outage to of So make just on assumptions thinking first sure, about activity. terms on

about environment. average of versus high-end more from underlying momentum feels an back of when based about on of environment. are outage you it that And then, plus is the an out how year, back? I essentially saying to Is front then, first you think like half And being average the that opportunities. the 'XX significant the underlying guys back half half, range outcomes the the larger think it's you're nominal opportunities breaking

Aaron Jagdfeld

Yes. Mike. That's exactly it,

Mike Halloran

that Okay. those the variances Southeast, larger Perfect. much doing distribution things the dealer on then, areas seeing of very areas in things penetration like couple that? over Maybe and impact are growth years. awareness said regional well looks aren't and like obviously the And track from Northeast you what as scale how last

Aaron Jagdfeld

Yes.

you is will I in we or those in been, interesting because -- and we think it events March you nor'easters have nor'easters had were the consecutive see mean, has oscillation get kind where I So that that beginning of XXXX in down southeast the XXXX to been. of the that happen had the turning Northeast like

in actually very We a down quite map, for that ago more you a what's few that year it cooled but of But, storms is was at year, -- even because course. this really If example. way Illinois today a West. granular Ohio, there's watch right going now actually But, to the off, if were look repeat the more a the than there didn't heat level bit through this it same you been activity think year us is and events and of the that to in interesting as as it's even interesting just it U.S. good and all interesting. individual market states, an so and like that quite actually Michigan, out Midwest a

lot California everywhere of tracked are without that was latest through. we event recency XXX,XXX West at them the the a from looking I in there, So going morning of power this was the rolling was storms out on there the outages this morning the that just people Northwest, and and

this perspective have, to you Same at this, from -- it's will predictability we -- the the net point northwest can level around state, of and so have to fair growth going very it's in going be there's data And of of now that we amount fair data a will in could we're predictably and that's better the one one have and rate months going over we been. some this XX happen area imagine a reliably just be as next than well. to say be California, it's a

it -- it of hot move couple ago. years does, it's really was Puerto does but Rico in. So

there's really step is a being that said, it's cycle that does grow I Now, this -- but about. it's we've they -- function growth and talked interesting not. mean it oscillate, that

it there you event want And of grow out, out than this the where growth it baseline tops kind to was after to or level if it's it materially to get prior again. event. call of level then successively you And higher rapidly, You it bottoms baseline you and another at kind a then, but stays and it that. that get then, grows of

you model And so it's out. can really mathematically speaking start quite how amazing to that

Mike Halloran

on makes thoughts could And two it the resi areas? And that between you're then, receptivity connectivity phase then, dealer C&I there. It the solutions putting out sense. the know customer days, I and implementation No. and how early it's just side versus to variably

Aaron Jagdfeld

Yes.

Now, chunk it's a the side. residential focus has on been our a of Right good question. good now

start So there. I'll

been has receptivity good. Our

are challenge that. adopt learning roll have not our that anything used We is rate, adoption partners, life like same. anything it's the there's customers electrical we're talking an contractors to distribution their there's a in that, challenge unlike They're with else to and Wi-Fi -- if with again, networks a right. else And have mainly we to a about out They passwords. working life here. in in the like not curve. anything It's There's

to of units period that's of products. data the machines. now market. great. tens learning really on very The run understand look air lot short can a There's what's there's of We can in And have customers; that going of deliver increase is in over We been us thing. our bit We cycles way customers. can interaction -- interaction amazing. learning the the is of connected able We the it's on. the this our a level at But we're already It's a to time. updates can so with we firmware giving there. a And thousands cool going

we in products get developed can So features features to the those deliver as new customers.

introduced also quicker it of really some I piece Control right of XX for piece us. months platforms under we've in. from all again, of view of away we then have We internally. to to the there. platform, the C&I coming market So And next industry And platform the the get better are product the is conversation care upside. our in that. all and is that XX far effect been Zone Power this products on and our of with to to Fleet to do OEM our internally. want benefits We're comment the controlled party. It doing that's previously. products And it. made platform but the brand through new for The a lot a leads internally. it's of into allows this our the great we other over of and there's that into have to distribution control repairs we was It's leaving industrial new feel their remote got lot the focus developed a I a it's monitoring; same potential dealers additional stuff the we're accurately. not partners. our all products platform good generator a call it by we -- as the We've one our more third that It We with cycle to next to And it here a future roll the bring that direct benefit as state-of-the-art. that's much think and it's lot going is coolest kind And that customers control

Mike Halloran

Thanks for appreciate the it. time. I

Aaron Jagdfeld

Thanks Mike.

York Ragen

Mike. Thanks

Operator

Our Moore from next Instructions] of Canaccord. Chip [Operator you. Thank comes question

proceed may You with your question.

Chip Moore

Hey, Thanks. guys.

York Ragen

Hi, Chip.

Chip Moore

or some XX% so the I years do X% thinking, remind that the just And weighted, you of that? on events is puts of couple to activity there? QX more about think Does us a core are in up past then, how maybe Can think and expectations. visibility said the push first that the it bit half. Thanks. more was you baseline takes on outage talk we you On

York Ragen

Yes.

assuming levels what you is math think prepared least experienced do at the our lower I long-term just of sort be which remarks than for the half would we that we're that you if in the that there actually -- XXXX. actually average first assumption if

higher So that C&I about across resi so consistently we're the resi core we in in relatively strength spreads talking first and and X% XX% were to half actually, seeing that growth it as that quarter. mentioned. we're those it C&I And QX both we then, than I be the expect rates second as QX year, into in growth seeing the the strength remarks, prepared coming given said we to the

providing So on that. I was that think we of the level commentary were

Chip Moore

Got it. which on talk to strategy Thanks. lot That's this you to connect ecosystem organic Can go helpful. can it's after. a of lot a the obviously York and thanks. And clearly for could use it? M&A appetite a partnerships good about development you versus new more things hear your the you accelerate robust talking you

Aaron Jagdfeld

Yes. question. It's a great

that this panel electrical that, of have of all the really I than we've done potential this more that these businesses take of are for position that the manufacturers a and expertise don't unique in again, opportunity think technical machines, concert is just brand backup I'd got in there brand, here one think our a of do things excited the us do connectivity probably can over in companies out a And I our certainly the claim way done around marketplace. the exciting. space. to be to our opportunity other few that and we've And the very themselves connected that really they terms But build I we time and -- things with or electrical systems talked is and distribution that our panel great claim in the I home that before, here system. about to of and their There in generators we the some explore and layer distribution, area electrical space my think that distribution the company about years. think growth something I with our and every at about that

note things come to the versus in internally. faster we're was in there to -- need act about a didn't people help no with Fleet mistake, The organically and that sets that certainly to So successful we've system could putting lot us systems that particular some through do may built be of current technical us those rolled connectivity some can be we question of partner. the your that M&A. as might M&A organic make M&A. all that out. gateway Wi-Fi the and But skill make effort system, this We

-- that being a team believe doubling based it's on middle going to it. based that be over exactly potential link we a many what a to small we really to subscription more here size critical opposed going decade. team. as of -- a subscription we're impact models that going through monitoring of moving things with The and people we're things, do where the part for a just go and we have of have we our which We're We we've more a to provider Waukesha, not next already profound future services. company products want could future company, amount of do The like Generac to year. and after the is we conversation Wisconsin. the subscription of And just this this of It's team in to into more call and of have got it's around mobile I -- this how I'll this big a we're selling the a team because too of are almost prioritize want models that and generators. the But it think business in double in they're solutions a to

Chip Moore

Aaron. a That's lot great. Thanks

York Ragen

Thanks Chip.

Operator

Drab you. And Blair. next Brian from William our Thank comes of question

may question. proceed You your with

York Ragen

Nobody home?

Aaron Jagdfeld

him. lost We

York Ragen

mute. on Maybe

Brian Drab

bad, That's my my bad. Good morning.

York Ragen

good. Very how Brian, Hey, mute. on was are doing? you He

Brian Drab

morning usually say I didn't was back, wondering back. say you morning they good good why

Sorry.

were of can you you we So feel quarter and talk can kind on terms -- first little did stand out of -- you where drove you 'XX, where at half zoom first back they've were the seen you versus third storm recently expected -- activity half the in et viewing the the Do -- how we change And today of are have more just we what about demand order the call? the then rank can would factors a cetera. in that that if something slightly.

Aaron Jagdfeld

Yes, Brian.

feel another quarter months a for about about even think and we stronger. three weren't quarter us here six playing It's I came because as into away galvanized that we year sure point to I good days out little closer And XXXX. importantly to were we is as pretty guidance third that sure how felt we the it into stationary indicate that and bit in think half about to really for third kind And the talking for this. we the on definitely have fact been space. have and full more we're and from feeling two you reflects even about that. the I almost at -- said has next of call months our first get it strong over XX this we're really we and think view maybe good think C&I we what plus what that markets what -- we're C&I the And next guidance, on remained like maybe mobile. both is, giving seeing we the year though I in maybe our

customer the some Some markets, our them there the large and of -- in for buying got the large of kind of accounts our concentration, telecom as in signals accounts we've out plans rental are the they full year. market, the roll some there

And how about the of public some companies fit were we year with thinking playing companies these really out. are kind of well

pleased we're business that strong. it's over the first we then, business guidance customer And to the is we're how we in a XX networks, look call resi has overall that spending indicators, the to look about the in amazing felt feeling up these if at very activations in-home been going customers our see that. hardening think QX. it's consultations C&I And their reflects just And CapEx of of IHCs, them year said we the at year's continue. In-home And particular course run continue going of And at to been is levels leading so consultations. days have for the we -- just telecom what as were that I dramatically here. in rate prior

in we guidance, reflected excited very pretty that that stronger, think it's that because first we're about to to So half. portends a again, the portends but good all it a

Brian Drab

it. Got

any seen in in of the that there industry? into telecom mentioned pause, and a AT&T You too. that a said some they've on someone signs Have have obviously having seen pause issues issues some supply market, going companies there's is other some you

Aaron Jagdfeld

the to a a tends It's interesting I might seeing one hearing out doing that ones is customer build is that whatever think doing another us. Yes. One in specific, the that, for network reason. certainly build it customer rotate and -- be that I another from that pauses a back, and where maybe one think, pauses. to And was lot out customer has you're how year before of pulled customer of year lot in for

it's part. their M&A on Sometimes

goes it in or change absolutely from all that XXXX we across can at -- uptime it saw other of are paying there to now factors XXXX. business as And are networks. before, mean is relates of remaining but think I point those drive pause But people think and providers the at most critical economic us that. levels now as Sometimes Nothing of bit I factors in right. the networks I we gives byte these the the telecom. just some that the that that this that said strong feel by was that their have same we realization good about pretty we

And opportunity country. the inconvenience then, some economic got so a couple mean has that is going also nature that Mexico. the infrastructure these you We've going Europe really Brazil. got if going on possibilities extend and telecom. our great And not all to the see through with expanded interesting of some fruition. impact as some for in part the vital expertise as original going we've are in some across around And we on around that it that a perspective the And part always I things and from That and telecom networks, our become got the mainland U.S. and take world. footprint just it's telecom in of to that of was to we're a geographical on We've we're seeing great on our critical come things in strategy carrier see communications network the customers. the well. down, here of things acquisitions. an based these just to starting an on There's

Brian Drab

a implementation Thanks. you power see the is, how for into you one certain are impact your still -- laid seeing at are from me of is we far with away of coming? continuous And maybe and more last that And these some the from or Day? that a just the seeing strategy and now to material things Analyst Motortech that out getting

Aaron Jagdfeld

Brian. starting actually to see We're some that, of

really be are is to needed utility from But natural they utility to roll applications dedicated as structures said at play, taking right. out that future know are we in long things the we in see market talked a have, like providers seeing gas generators products building because and the of of there our that using more interesting some build natural now resources this time backup generator a market. are X.X bills. neat some system world fact, that to years where you -- Motortech Investor partners to take alongside an time generators successful that programs We programs taking had really commercial their and see where use our that company rest that we normally on in places focused those the developing. going a frankly. market that's of here Canada, and the alongside And But Day, using is have out it's and opportunities success at at about markets that to that in customers the is We continue it of important reduce They're our we support even part Investor of ago anyway. gas and Day, them our would some of will we're have

in our the We so the brand in other other continent well the market and also or European But have parts not much African China here India Latin places grow even U.S. world to quite as America where known in we're in or of continent. maybe maybe in the or well.

building interesting really that we're long-term seeing long-term do, like but some So, awareness out will prospects things be brand do. the we've good really some we to for it some that. to got But around and some starting interest

Brian Drab

is is a opportunity So than an it opportunity? more international U.S. it

Aaron Jagdfeld

I think right. probably initially that's

grid I become is evolve India markets parts more will in more factors they But it's think world quicker. lot evident power cost again, of is hours There the events -- of evident a the lot the when to in of XX day, have lot fuel think as a you're other natural the roughly they natural meaning of because U.S. or you those and of here is a a generator some that drive opportunities that outrage generator half where will have have, well. outage events the gas as to diesel a I going like become costs a of a you where and it of lot input and talking gas you run X matters fuel. are if costs stability

And over into here. the and the that stronger play gas to total return our outside than adds as U.S. but does inside the view change as it's customer ROI long But, that again, that's machine has way think energy even the the a really go would going today and it payback so a the the that that the how markets may we out haul, further, That kind develop out. we but U.S. market of of

Brian Drab

a Thanks Perfect. Okay. lot.

Aaron Jagdfeld

Brian. Thanks bet. You

Operator

time. would showing I'm call you. Thank at to Aaron for not not any the questions Jagdfeld remarks. further back I over any this to And further turn like

Aaron Jagdfeld

to quarter much. we you We that, us which today. results, everybody for point in reporting XXXX thank forward our earnings to early at With joining anticipate May. this some will first Thank you want Thanks operator. leave on We very we'll be look morning. here

Operator

today's and Thank Everyone you, may ladies for have day. program disconnect. conclude gentlemen. does participating This Thank in today's you you and a conference. wonderful just all

Generac (GNRC) 14 Feb 192018 Q4 Earnings call transcript