Generac Holdings Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Generac Holdings Inc. reported a slight increase in net income to $73.2 million for FY2023, despite a revenue decline to $3.4 billion, and incurred restructuring charges.</b>

AI Summary

GENERAC HOLDINGS INC. (GNRC) filed a Annual Report (10-K) with the SEC on February 21, 2024. Generac Holdings Inc. reported total revenue of $3,392.5 million for the fiscal year ended December 31, 2023. Net income for the fiscal year 2023 was $73,195,055, an increase from $72,701,257 in the prior year. Earnings per share (EPS) for 2023 were $1.03, compared to $1.03 in 2022. The company reported total assets of $2,722.3 million and total debt of $1,886.0 million as of December 31, 2023. Generac Holdings Inc. incurred restructuring charges of $3,819,000 related to facility consolidation and organizational functions.

Why It Matters

For investors and stakeholders tracking GENERAC HOLDINGS INC., this filing contains several important signals. The filing details significant charges including provisions for judgments and legal expenses ($28.3 million in 2023) and CPSC fines related to generator recalls ($5.8 million in 2023), indicating potential ongoing legal and regulatory scrutiny. The company experienced a favorable impact of $3.923 million from foreign currency fluctuations in 2023, suggesting that currency movements can materially affect financial results.

Risk Assessment

Risk Level: medium — GENERAC HOLDINGS INC. shows moderate risk based on this filing. The company faces medium risk due to significant legal expenses, regulatory fines, and provisions for customer-related issues, as detailed in the filing.

Analyst Insight

Investors should monitor Generac's legal and regulatory developments, as well as its ability to manage customer-related provisions and restructuring costs.

Revenue Breakdown

Key Numbers

• 3,392,500,000 — Total Revenue (Year ended December 31, 2023)
• 73,195,055 — Net Income (Year ended December 31, 2023)
• 1.03 — EPS (Year ended December 31, 2023)
• 2,722,300,000 — Total Assets (As of December 31, 2023)
• 1,886,000,000 — Total Debt (As of December 31, 2023)
• 3,819,000 — Restructuring Charges (Year ended December 31, 2023)
• 3,923,000 — Favorable Foreign Currency Impact (Year ended December 31, 2023)
• 28,340,000 — Provision for Judgments and Legal Expenses (Year ended December 31, 2023)

Key Players & Entities

• GENERAC HOLDINGS INC. (company) — FILER
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240221 (date) — FILED AS OF DATE
• WAUKESHA (location) — BUSINESS ADDRESS CITY
• CPSC (regulator) — provision for a matter with the CPSC
• $28,340 (dollar_amount) — provision for judgments and legal expenses
• $5,800 (dollar_amount) — provision for a matter with the CPSC
• $17,926 (dollar_amount) — bad debt provision

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value GNRC New York Stock Excha

Filing Documents

• gnrc20231231_10k.htm (10-K) — 3036KB
• ex_628303.htm (EX-10.39) — 65KB
• ex_628304.htm (EX-10.40) — 60KB
• ex_628305.htm (EX-10.41) — 53KB
• ex_584009.htm (EX-21.1) — 19KB
• ex_584010.htm (EX-23.1) — 2KB
• ex_584011.htm (EX-31.1) — 15KB
• ex_584012.htm (EX-31.2) — 15KB
• ex_584013.htm (EX-32.1) — 7KB
• ex_584014.htm (EX-32.2) — 7KB
• ex_627274.htm (EX-97) — 26KB
• a01.jpg (GRAPHIC) — 81KB
• 0001437749-24-005040.txt (&nbsp;) — 14868KB
• gnrc-20231231.xsd (EX-101.SCH) — 112KB
• gnrc-20231231_cal.xml (EX-101.CAL) — 95KB
• gnrc-20231231_def.xml (EX-101.DEF) — 715KB
• gnrc-20231231_lab.xml (EX-101.LAB) — 667KB
• gnrc-20231231_pre.xml (EX-101.PRE) — 783KB
• gnrc20231231_10k_htm.xml (XML) — 2848KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 14 Item 1B. Unresolved Staff Comments 21 Item 1C. Cybersecurity 21 Item 2.

Properties

Properties 21 Item 3.

Legal Proceedings

Legal Proceedings 22 Item 4. Mine Safety Disclosures 22 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22 Item 6. [Removed and Reserved] 24 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 36 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 71 Item 9A.

Controls and Procedures

Controls and Procedures 71 Item 9B. Other Information 72 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 72 PART III Item 10. Directors, Executive Officers and Corporate Governance 72 Item 11.

Executive Compensation

Executive Compensation 72 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 72 Item 13. Certain Relationships and Related Transactions, and Director Independence 72 Item 14. Principal Accountant Fees and Services 72 PART IV Item 15. Exhibits and Financial Statement Schedules 72 Item 16. Form 10-K Summary 76 Table of Contents

Forward-Looking Statements

Forward-Looking Statements This annual report contains forward-looking statements that are subject to risks and uncertainties. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "forecast," "project," "plan," "intend," "believe," "confident," "may," "should," "can have," "likely," "future," "optimistic" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. The forward-looking statements contained in this annual report are based on assumptions that we have made in light of our industry experience and on our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you read and consider this report, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond our control) and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. The forward-looking statements contained in this annual report include estimates regarding: our business, financial and operating results, and future economic performance; proposed new product and service offerings; and management's goals, expectations and objectives and other similar expressions concerning matters that are not historical facts. Factors that could affect our actual financial r

Business

Item 1. Business Overview Generac is a leading energy technology solutions company that provides backup and prime power generation products for residential and commercial & industrial (C&I) applications, solar + battery storage systems, energy monitoring & management devices and services, and engine- & battery-powered tools and equipment. As an energy technology solutions company that is "Powering a Smarter World", our corporate purpose is to lead the evolution to more resilient, efficient, and sustainable energy solutions around the world. We have a long history of providing power generation products across a variety of applications, and we maintain one of the leading market positions in the power equipment markets in North America and an expanding presence internationally. We believe we have one of the widest ranges of products in the power generation marketplace, including residential, commercial, and industrial standby generators, as well as portable and mobile generators used in a variety of applications. In recent years, the Company has been evolving its product portfolio by building out ecosystems of energy technology products, solutions, and services for homes and businesses. As part of this evolution, we have made significant investments into growing markets such as residential and C&I energy storage, solar module-level power electronics (MLPE), energy monitoring & management devices, and electric vehicle (EV) charging. Central to these ecosystems are the Company's next-generation connectivity devices, controls capabilities, and software platforms that facilitate the integration of our products and support the growing utilization of such distributed energy resources (DERs) in grid services programs. In addition, we have been leveraging our leading position in the growing market for natural gas fueled generators, which we believe represents a cleaner transition fuel compared to diesel, to expand into applications beyond standby power, allowing us to par

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View this 10-K filing on SEC EDGAR