Generac posted $373.1 million in net sales in the third quarter, compared to $359.3 million in the third quarter of 2015, a 3.8-percent increase. The revenue included $60.8 million of contribution from recent Generac acquisitions.
Domestic segment sales were $299.1 million compared to $332.2 million in the same quarter of 2015, primarily because of a continued decline in shipments of mobile products caused by ongoing weakness in oil and gas markets. The decline was partially offset by the contribution from the Country Home Products acquisition.
International segment sales increased to $74 million compared to $27.1 million in the year-ago quarter. The company nearly tripled its international revenue because of the contributions from the Pramac acquisition.
Net income attributable to Generac during the third quarter was $26.2 million, or $0.40 per share, compared to $34 million or $0.49 per share for the same period of 2015.
Adjustable net income was $53.2 million, compared to $63.4 million a year ago. Adjusted EBITDA was $72.1 million compared to $81.2 million in Q315.
“An increase in power outages coupled with successful promotional campaigns led to shipments of residential products that exceeded our expectations during the quarter,” said Aaron Jagdfeld, president and CEO. “This outperformance helped to offset continued weakness for our mobile products both domestically and internationally. We also continued to generate strong free cash flow during the quarter which allowed us to complete our share repurchase program nearly a year ahead of the original two-year timeframe, giving us confidence to authorize a new share repurchase program.”
In the third quarter residential product sales increased 4.3 percent to $192.9 million, compared to $185 million in the year-ago frame. Commercial & Industrial sales increased 1 percent to $149.7 million compared to $148.2 million in Q315.
Generac is reviving its guidance upward for revenue growth for the full year as a result of higher power outage activity experienced so far during the second half of 2016. Full-year net sales are now expected to increase between 9 to 10 percent.
“Despite a challenging power outage environment over the last few years, our market position for residential products remains strong, retail placement is currently at all-time highs, and the number of active dealers has returned back to peak levels,” added Jagdfeld. “The moderate improvement in power outage activity we have experienced recently should provide an opportunity for us to better leverage the innovative sales and marketing programs for home standby generators that we have implemented over the last several years. Although business conditions in several of our other end markets remain soft, we continue to make strategic investments in new products, technologies and infrastructure across the business to support the next leg of growth that we believe will occur as these end markets eventually recover.”
