Generac Holdings Q3 2024: Sales Up Slightly, Net Loss Persists

TL;DR

Generac sales nudged up, but still losing money per share. Watch out for Wallbox stock swings.

AI Summary

Generac Holdings Inc. reported net sales of $34,489 million for the nine months ended September 30, 2024, a slight increase from $33,925 million in the same period of 2023. The company experienced a net loss of $0.01 per share for both periods. Significant items impacting results include unrealized gains on interest rate swaps and non-cash losses from investments in Wallbox N.V. equity.

Why It Matters

This filing provides insight into Generac's financial performance and the impact of market fluctuations and investment valuations on its bottom line.

Risk Assessment

Risk Level: medium — The company faces risks related to currency fluctuations, investment performance, and debt restructuring, which can impact profitability.

Key Numbers

• $34.49B — Net Sales (9 months ended Sep 30, 2024) (Represents the total revenue generated by the company.)
• $33.93B — Net Sales (9 months ended Sep 30, 2023) (Represents the total revenue generated by the company in the prior year period.)
• $0.01 — Net Loss Per Share (9 months ended Sep 30, 2024) (Indicates the company's profitability on a per-share basis.)
• $500,000,000 — Tranche B Term Loan Facility (Amount related to debt restructuring and associated fees.)
• $3,081 — Unrealized Gains on Interest Rate Swaps (Non-cash gains impacting the financial results for the nine months ended September 30, 2023.)

Key Players & Entities

• GENERAC HOLDINGS INC. (company) — Filer
• Wallbox N.V. (company) — Investment in equity securities
• $34,489 million (dollar_amount) — Net sales for nine months ended September 30, 2024
• $33,925 million (dollar_amount) — Net sales for nine months ended September 30, 2023
• $0.01 (dollar_amount) — Net loss per share for nine months ended September 30, 2024 and 2023
• September 30, 2024 (date) — Reporting period end date

FAQ

Key Financial Figures

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

Filing Documents

• gnrc20240930_10q.htm (10-Q) — 2040KB
• ex_730671.htm (EX-10.1) — 127KB
• ex_713254.htm (EX-31.1) — 15KB
• ex_713255.htm (EX-31.2) — 15KB
• ex_713256.htm (EX-32.1) — 7KB
• ex_713257.htm (EX-32.2) — 8KB
• 0001437749-24-033337.txt ( ) — 8421KB
• gnrc-20240930.xsd (EX-101.SCH) — 65KB
• gnrc-20240930_cal.xml (EX-101.CAL) — 57KB
• gnrc-20240930_def.xml (EX-101.DEF) — 433KB
• gnrc-20240930_lab.xml (EX-101.LAB) — 368KB
• gnrc-20240930_pre.xml (EX-101.PRE) — 466KB
• gnrc20240930_10q_htm.xml (XML) — 1402KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets as of September 30, 2024, and December 31, 2023 1 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30 , 2024 and 2023 2 Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended September 30 , 2024 and 2023 3 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30 , 2024 and 2023 4 Notes to Condensed Consolidated Financial Statements 5 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 4.

Controls and Procedures

Controls and Procedures 28

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 28 Item 1A.

Risk Factors

Risk Factors 28 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29 Item 3. Defaults Upon Senior Securities 29 Item 4. Mine Safety Disclosures 29 Item 5. Other Information 29 Item 6. Exhibits 29

Signatures

Signatures 30 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Generac Holdings Inc. Condensed Consolidated Balance Sheets (U.S. Dollars in Thousands, Except Share and Per Share Data) (Unaudited) September 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 214,177 $ 200,994 Accounts receivable, less allowance for credit losses of $ 34,489 and $ 33,925 at September 30, 2024 and December 31, 2023, respectively 658,649 537,316 Inventories 1,095,758 1,167,484 Prepaid expenses and other current assets 104,791 91,898 Total current assets 2,073,375 1,997,692 Property and equipment, net 639,733 598,577 Customer lists, net 166,016 184,513 Patents and technology, net 391,841 417,441 Other intangible assets, net 21,419 27,127 Tradenames, net 210,308 216,995 Goodwill 1,454,172 1,432,384 Deferred income taxes 12,179 15,532 Operating lease and other assets 217,896 203,051 Total assets $ 5,186,939 $ 5,093,312 Liabilities and stockholders' equity Current liabilities: Short-term borrowings $ 65,540 $ 81,769 Accounts payable 424,812 340,719 Accrued wages and employee benefits 78,209 54,970 Accrued product warranty 60,377 65,298 Other accrued liabilities 291,360 292,120 Current portion of long-term borrowings and finance lease obligations 99,176 45,895 Total current liabilities 1,019,474 880,771 Long-term borrowings and finance lease obligations 1,360,637 1,447,553 Deferred income taxes 62,260 90,012 Deferred revenue 186,465 167,008 Operating lease and other long-term liabilities 145,641 158,349 Total liabilities 2,774,477 2,743,693 Redeemable noncontrolling interests – 6,549 Stockholders' equity: Common stock, par value $ 0.01 , 500,000,000 shares authorized, 73,646,420 and 73,195,055 shares issued at September 30, 2024 and December 31, 2023, respectively 736 733 Additional paid-in capital 1,115,525 1,070,386 Treasury stock, at cost, 14,149,513 and 13,057,298 shares at September 30,

View Full Filing

View this 10-Q filing on SEC EDGAR