WAUKESHA, Wis.—Generac Holdings Inc. (NYSE: GNRC), the power generation equipment manufacturer, Tuesday reported financial results for its fourth quarter and full-year ended December 31, 2015. Additionally, the Company initiated its outlook for 2016.
For the fourth quarter of 2015, net sales were $357.8 million, compared to $404.0 million in the prior-year fourth quarter, including a $14.9 million contribution from a recent acquisition. Net sales for the full year of 2015 were $1.317 billion during 2015 as compared to $1.461 billion during 2014.
Net income during the fourth quarter of 2015 was $9.2 million, or $0.14 per share, as compared to net income of $49.4 million, or $0.70 per share, for the same period of 2014. The current-year net income includes the impact of $40.7 million of pre-tax, non-cash charges for the impairment of certain intangible assets with nearly the entire amount relating to tradenames as a result of a new brand strategy to transition and consolidate various brands to the Generac® tradename.
Net income for the full year of 2015 was $77.7 million, or $1.12 per share, as compared to $174.6 million, or $2.49 per share for 2014.
The Company repurchased 1.15 million shares of its common stock during the fourth quarter for $35.6 million under its previously announced $200 million share repurchase program.
“Despite the ongoing low power outage environment, shipments of residential products improved organically on a sequential basis during the fourth quarter and exceeded our expectations,” said Aaron Jagdfeld, President and Chief Executive Officer. “This strength helped to largely offset additional weakness with shipments of mobile products caused by the ongoing decline in energy prices. We achieved our second half 2015 goals for inventory reductions and margin improvements, which led to a record level of free cash flow during the fourth quarter. On the acquisition front, the Pramac acquisition announced yesterday accelerates our strategy of expanding geographically and elevates us to a major player in the global power generation market.”
The Company is initiating guidance for 2016 with net sales expected to increase between 10 to 12% as compared to the prior year, which assumes the contribution from the Pramac acquisition that is anticipated to close before the end of the first quarter of 2016.
“While several of our major end markets experienced significant down-cycles during 2015, we still made important progress on a variety of strategic initiatives throughout the year,” continued Mr. Jagdfeld. “These included driving awareness for our products, developing and expanding our distribution, further investing in innovative new products, and implementing manufacturing improvements. In addition, we continued to execute on our capital allocation priorities including making another strategic acquisition and returning capital to shareholders. Despite a weaker demand environment that persists entering 2016, we remain optimistic regarding the overall long-term growth prospects for our business.”Tagged with tED